Issue link: https://resources.envestnet.com/i/1527484
7 Then Conversations with clients focus on maximizing risk-adjusted returns. Advisors don't feel comfortable talking to clients about taxes because they are not tax professionals. That's a conversation better to be had with a client's CPA or accountant. Advisors have attempted to help clients manage their overall tax situation, but do so manually, generally at the end of the year. Advisors are not worried about the tax side of the equation because it's not something clients have ever brought up before. When thinking about tax management, advisors generally focus on asset location: taxable, tax-exempt or tax-deferred accounts. And now The new conversation is about maximizing after- tax risk-adjusted returns, net of fees and taxes. Advisors are committed to deepening relationships with clients by building their after-tax wealth. They see themselves as a bridge between a client's tax and estate planning professionals as they focus on the tax implications of investment choices. Advisors are engaged with clients on taxes because they don't want to miss the opportunity to be more essential. With the tax optimization tools available today, advisors can offer clients a more sophisticated approach to tax management with more transparency and better outcomes. Advisors understand the importance of tax implications, and a focus on tax efficiency becomes a real differentiator when prospecting. For clients, an advisor's investment advice is always geared toward balancing tax sensitivities with return goals. Advisors realize the tax conversation includes so much more than asset location. It's about how sophisticated technology can help them make better decisions and actively manage taxes within each location, especially the taxable bucket. Shift your thinking: Tax conversations then and now As more advisors focus on managing their clients' overall tax situations, they are shifting the conversation. Whether you manage taxes as part of your broad client service offering or think of tax management in less of a comprehensive way, here are five examples of advisor conversations in the past versus now. MKTGM1123U/S-3208539-7/12