Taxes are Viewed as a Significant Barrier
Just behind market volatility, taxes are ranked as the biggest barrier when it
comes to reaching financial goals. This is very important for advisors to be aware
of when engaging in conversations with clients. Learning about the tax impact of
different investment strategies, types of accounts, timelines, and tax code changes
is important for the affluent investor to understand and feel informed in their
investment plans and decisions.
This is especially true as both Higher-Earners (28%) and High-Net-Worth individuals
(30%) are significantly more likely than Affluent Americans (18%) to say that taxes are
a major barrier preventing them from reaching their financial goals.
Strategy to Consider
Taxes can be confusing to clients at every income level. Do you have resources
available for clients to learn about the tax implications of different investments,
strategies, and plans? Are these resources available and effective for clients of
varying levels of affluence and investment expertise?
Opportunity: Consider inviting a tax professional to provide a virtual or in-person
informational session for your clients and their families. These sessions can be formal
or informal and are a great way to show clients that you have resources available to
help them think through the tax implications of their investments.
Have you considered
implementing any
of the following
strategies?
1
Tax loss harvesting
Gain/loss matching
2
Deferred short-term gains
3
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