Each year, our clients will have the opportunity to meet with
Baltimore-Washington Financial Advisors, Inc.'s tax partner to
do tax planning. Few people like the idea of turning over their
hard-earned money to the government. As advisors, we stay
on top of new tax legislation and are always looking for ways
to reduce our clients' tax burden. Tax planning and preparation
goes well beyond the yearly income tax returns that must be
filed. We are also concerned about our clients' estate and gift
tax planning, and avoidance of the various penalties that may
apply to retirement plan distributions. A nice feature of offering
income tax preparation to our financial planning and investment
advisory clients is that we are better prepared to give tax-wise
advice.
There are many situations during a person's lifetime that can
generate unusually large federal and state income tax liabilities.
These include: selling one's home, exercising employee stock
options, receiving bonuses, and selling appreciated securities,
among others. Because we have a good view of our clients' entire
financial picture, we are able to plan for these events in ways
that reduce the tax burden and increase the after-tax return for
our clients.
The key word here is planning.
Without a solid financial plan, individuals will likely pay more taxes
than would otherwise be necessary. By looking into our clients'
future, anticipating the events that generate larger tax liabilities,
and properly planning for these events, we increase the overall
wealth that our clients retain.
After all, the amount you earn is not quite as important as the
amount you keep after the taxes are paid!
CFP™, CERTIFIED FINANCIAL PLANNER™, and 
are marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.
Bob Cassel, EA, CFP™