How to Choose the Right Financial Planner

It’s not about gaming the system, the tax system, really the tax code. I’m sure you’ve heard this before, but there’s thousands of pages. This thing is a beast and I would not prefer to personally read it, but there’s only a few pages that are about how to pay tax. And the rest of this gigantic document are all ways their roadmap to not pay taxes.

And so you really need to be working with somebody who is. Knowledgeable about the tax code that really seeks to leverage it in your favor and not do unfortunately what most CPAs for common people do. And they say, Hey, let’s just defer some money and not pay tax on it this year. And that sounds like a great end of story.

If we stop there, but you still are going to pay tax in the future. So you’re just kicking the can down the road and you end up with this big tax bill, the end and especially. For your audience and myself and our audience as well at the money advantage. If you’re looking to grow your wealth and increase your income, you’re going to probably be in a higher tax bracket in the future.

And I do not want that tax bill on a higher income in a higher tax bracket. And with 19 trillion plus dollars in us debt right now, we’re in a position where if the government says, Oh, Hey, let’s go ahead and increase taxes and decrease tax brackets. So that more people are paying more taxes in the future.

I don’t have control of that, and I certainly don’t want to be at that mercy. So I don’t want to just defer tax. Which is a fancy way of saying postpone. I don’t want to just postpone taxes until the future. And that’s what a lot of times you’ll hear as a tax strategy. And it’s really not a tax strategy.

Yeah. And what you just said, just drives me crazy all the time. Most CPAs don’t have a freaking clue what they’re doing. That’s why they have that job. And that’s why I sit at home in my shorts all day long and not to say that, Hey, I’m not a CPM, not a lawyer. This is where you have to learn these strategies and you’re not going to be the ones can potentially be a little dangerous, right?

If you go overboard with these proportions, You possibly can get audited. Yeah. Reasonable salary. That doesn’t mean you’re going to say, Oh, my reasonable salary is $1 and the rest of my money is coming over without self-employment tax. That is, that’s stepping over the line and here’s the line. And you want to be working with a tax strategist that says, okay, I understand the lay of the land and the landscape.

And I’m willing to walk up to that line. But I’m not going to cross over. And that’s the piece that instead a lot of CPAs will just say, Hey, I’m just going to stay as far away from the line as possible. And that’s where a lot of money gets left on the table. And unfortunately way too many people are in that position where they say I have the best CPA in the world, and yet they’re still leaving a lot of money on the table.

So again, it is not about doing things that are illegal, that can land you in a huge amount of hot water. Absolutely would never recommend that. But what you want to do is understand how to proactively leverage the tax code. Here’s my analogy. This stuff is like doing a surgery, Rachel and I aren’t going to do surgery on ourselves, period.

We’re not even doctors. No, but we can recommend possibly. Hey, why don’t we do this? Have you heard of this other operation? And if your CPA is like any other CPA out there, they haven’t even heard of the damn thing. So maybe you have to go to first a CPA who can do that operation, but you also even good CPAs, but they’re just looking for the easy way out times than not.

They don’t want any kind of odd potential in the future, even though it is totally legit, they just want to do what’s easy. So you as the client, like I always say, you’re the boss, you’re the property manager works for you. You need to tell them what you want within reason. Same thing here. Your CPA works for you.

You need to tell them what you’re going for and need to hear them out. If not in to get a new CPA, she mean, and get to someone who, who is legit. And I can do this stuff for you, but yeah, but never do it without a CPA. You are using their recommendations. Now, what you want to do is ask yourself, is this the CPA for me?

Are they going to help take me to that next level? And a couple of questions you can say is, are they meeting with me outside of tax season? That’s just one really good, but almost indicator or a marker. Are they concerned with helping me strategize outside of just saying, okay, what did you already do?

And how can we react to what you did in your business and your real estate and your investing and all of those things, really? You want somebody who’s going to help you plan ahead so that you use the right deductions so that you apply the right things in your strategy and process so that you can take advantage of the tax code. .

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