According to a CNBC and Acorns Invest in You Savings Survey, 75% of Americans manage their savings without any help from a professional. With debt increasing and living expenses rising, it’s never been more critical for the average person to set realistic financial goals and stick to them. On top of this, financial literacy cost Americans nearly $1,400 in 2021 alone, making help from an investment professional paramount. But where to start if you’ve never worked with a transactional tax planner? The problem isn’t that there isn’t enough information – in fact, there’s an abundance of it. Instead, you need to cut through the noise and find the best solution for your family or business. Here are five ways a transactional tax planner can help you and why you need one.
What is a Transactional Tax Planner?
A transactional tax planner is someone who counsels clients on their wealth management needs and adds value while minimizing their financial risk. A transactional tax planner might outline a plan or plans for you to follow, or they might recommend that you go with specific products and investment vehicles.
You might turn to a transactional tax planner if you’re looking to put together a retirement savings plan, or you might reach out to one for an answer to a question about life insurance or business tax. Considering how broad the job can be, let’s look at five specific things that a transactional tax planner does.
#1 They Work With You to Assess Your Goals
No matter which direction you’re looking to go with your money, an excellent transactional tax planner will start by assessing your current financial situation and talking with you about your future goals and tax burdens. By setting up this framework at the start, your advisor will start tailoring the approach to fit you.
#2 Creating a Customized Plan
According to a recent report from the Stanford Center on Longevity, people are saving about half of what they should be for retirement. Whether you’re looking to save for retirement or optimize your tax benefits, a professional transactional tax planner will have the tools, skills, and experience needed to help you achieve your financial goals.
#3 They Advise You When Unexpected Events Occur
It’s impossible to predict where life will take you next or what unexpected changes and expenses might appear. Here are just a few situations a professional could help you through:
- Inherited money and are looking for investment advice and planning
- Have recently gotten divorced and need to adjust your finances
- Want to help your parents with their finances as they reach their twilight years.
A transactional tax planner will help you through any life transitions for you or your business.
#4 Accurately Setup and Monitor Accounts
If the thought of manually setting up a brokerage account and figuring out how to invest your money has you breaking out in a sweat, it might be time to start a conversation with a transactional tax planner. Beyond assessing your goals, developing a plan, and advising you in hard times, they’ll also be able to do the heavy-lifting when it comes to managing your money. They’ll do this, too, while ensuring that your tax burden is minimal.
#5 Keep an Eye Out for Opportunities
Chances are you don’t know the ins and outs of insurance policies and mortgages, and that’s okay. A professional will and they’ll be able to find investment vehicles that make sense given the unique goals of you or your business.
Why Do You Need a Transactional Tax Planner?
Even though three-quarters of Americans manage their savings, their interest in professional help is straightforward. As an example, according to Google, mobile searches for “financial advisors” grew by 75% in the space of two years. Let’s look at some tangible reasons to hire a transactional tax planner.
The way that most people find their way into the office of a transactional tax planner comes down to a lack of time. Many wonder whether they should use a transactional tax planner or handle things independently, but a busy schedule quickly answers the question for them. Managing your money and taxes isn’t an easy thing to do, and it can be challenging to devote the kind of time it takes to do this right.
As you grow older, gain more wealth, and experience life changes, your priorities will adjust accordingly. Maybe you’re looking to combine finances with your partner after getting married, or perhaps you’re due to have a baby soon and need to work on your budget before the little one arrives. You could even be looking to incorporate your first business. Whatever it is, the right advisor will have years (if not decades) of experience handling situations just like these.
We Assist with Transactional Tax Planning
At Norman Spencer Law Group, our team is committed to advancing transactions that meet your objectives. We collaborate with internal tax and accounting departments and outside firms to design a plan that will yield optimal after-tax results. At the Norman Spencer Law Group, our transactional tax planning attorneys deliver valuable tax and business services covering the full spectrum of laws. We collaborate with your advisors and affiliates, including any underwriters, accountants, lenders, investors, and financial advisors. We have the expertise to provide concrete, tangible solutions that will work for you.
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