Tax Advice?

or Register to post new content in the forum

22 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Nov 1, 2006 1:25 pm

In the opinion of the more experienced FA's; should an FA be able to tell the client the tax advantages and or disadvantages of a Roth or traditional IRA -or- is this a matter that should be left ENTIRELY to clients accountant?

Nov 1, 2006 2:12 pm

Wow, if you are not talking about tax implications of various investment strategies, I'm not sure how exactly you could do business.  I don't mean that in a flippant way, but much of what we do is manage tax situations.  When clients have serious tax issues (if they contribute to Roth's, chances are they don't have real tax issues yet), you should work WITH their CPA's to come up with solutions.  Especially if they are business owners or very HNW individuals.  Don't make too many claims about their tax situation (explaining Roth vs. Trad is simple) without considering their CPA.  Get that monkey off your back.  Most people still qualifying for IRA's don't even use an accountant (other than H&R Blockheads).

Nov 1, 2006 3:02 pm

If one was a sales agent they might last a year. Man you have to understand the big picture! Part of the big picture is retirement and protection.

Nov 1, 2006 3:35 pm

beramberger,


I agree with b24.  While the general rule is that FA's don't give tax advice, understanding tax implications of investment options should be one of the building blocks of the recommendations we give and a major components to the value we add.  Explaining this to the client should be part of the process.

Nov 1, 2006 4:24 pm
beramberger:

In the opinion of the more experienced FA's; should an FA be able to tell the client the tax advantages and or disadvantages of a Roth or traditional IRA -or- is this a matter that should be left ENTIRELY to clients accountant?


You must work for Jones

Nov 1, 2006 4:29 pm

Isn't being able to advise clients (at least in a rudimentary way) about the tax implications of their investing strategy part of rendering full-service financial advice and planning?

Nov 1, 2006 4:43 pm
Greenbacks:
beramberger:

In the opinion of the more experienced FA's; should an FA be able to tell the client the tax advantages and or disadvantages of a Roth or traditional IRA -or- is this a matter that should be left ENTIRELY to clients accountant?


You must work for Jones



If I remember correctly, Beramberger, weren't you the person on here a few months ago searching for an FA?


Nov 1, 2006 4:57 pm

A financial advisor should be able to explain the tax ramifications of investment transactions, including IRA and Roth IRAs. You need to be able to educate your clients.  However giving tax advice is not what we should be doing unless we are qualified to give that advice (CPA licensed).


I usually give the information with the additional statement, that the client needs to consult with his tax preparer or CPA on their individual tax situation as I am not privy to that information. 


Nov 1, 2006 6:21 pm
beramberger:

In the opinion of the more experienced FA's; should an FA be able to tell the client the tax advantages and or disadvantages of a Roth or traditional IRA -or- is this a matter that should be left ENTIRELY to clients accountant?


You should be able to. Why don't you know the advantages and disadvantages? Were you smoking pot when you studied for the series 7 or are you a bank "broker"?

Nov 1, 2006 7:22 pm
exEJIR:
Greenbacks:

[quote=beramberger]In the opinion of the more experienced FA's; should an FA be able to tell the client the tax advantages and or disadvantages of a Roth or traditional IRA -or- is this a matter that should be left ENTIRELY to clients accountant?[/quote]


You must work for Jones


If I remember correctly, Beramberger, weren't you the person on here a few months ago searching for an FA?




Bingo!

Nov 1, 2006 7:39 pm
Maxstud:
exEJIR:
Greenbacks:
beramberger:

In the opinion of the more experienced FA's; should an FA be able to tell the client the tax advantages and or disadvantages of a Roth or traditional IRA -or- is this a matter that should be left ENTIRELY to clients accountant?


You must work for Jones



If I remember correctly, Beramberger, weren't you the person on here a few months ago searching for an FA?



Bingo!


Beramberger is probably pissed that his/her rep wouldn't give them tax advice and is second guessing them.

Nov 2, 2006 10:57 am

Beramberger- why dont you call your ML FA and ask them these questions. While they are not licensed to provide tax advice like a CPA, they have specialists and experts a phone call away. Or maybe sitting in the office down the hall.


Stop coming to this website, trust and place confidence in your FA, and take advantage of the wonderful services and expertise that you employ.

Nov 2, 2006 3:54 pm

Do like I did, go to the HR Block or Jackson Hewitt course. 100 bucks gets you the books and a lot of knowledge!

Nov 3, 2006 3:58 pm
AirForce:

Do like I did, go to the HR Block or Jackson Hewitt course. 100 bucks gets you the books and a lot of knowledge!


Back years ago, before becoming an FA, I had my taxes done at an HR Block.  I knew more about tax code than those boneheads. 

Nov 3, 2006 7:56 pm

exEJIR:

Back years ago, before becoming an FA, I had my taxes done at an HR Block.  I knew more about tax code than those boneheads. 


----------------------------------


Forget knowledge of taxes, try "multiplying percentages"!


In the early '80's, I had a job that transferred me a lot - try 3 state tax returns for one year. So, I had H&R prepare my taxes. They said I owed $400 in state taxes, which I knew was wrong. So, I brought my tax forms home and went over them, line by line. I found the problem, it was a multiplication error. The tax form instruction said that a certain income figure should be multiplied by .1% and H&R multiplied it by .1, instead of .001  . Easy error to make (no big deal, people make mistakes), so I called the preparer and told them about the error.


The preparer argued that I was wrong! So, he switched me to his supervisor who also argued that I was wrong! Then that supervisor put me on hold, while he called his district supervisor who confirmed that I was right. I do my own taxes, now.

Nov 6, 2006 1:48 pm

Blarmston .. it occurs to me that you should be the last person using this site to advise others not to visit it. I've noticed that you've posted in excess of 900 messages many of which I found to be overly simplistic; often illogical and feeble in content. I can only conclude that you are an incompetent loser. Accordingly, I'd appreciate your refraining from responding to any of my posts.

Nov 6, 2006 1:58 pm

Nov 6, 2006 2:34 pm
doberman:

exEJIR:

Back years ago, before becoming an FA, I had my taxes done at an HR Block.  I knew more about tax code than those boneheads. 


----------------------------------


Forget knowledge of taxes, try "multiplying percentages"!


In the early '80's, I had a job that transferred me a lot - try 3 state tax returns for one year. So, I had H&R prepare my taxes. They said I owed $400 in state taxes, which I knew was wrong. So, I brought my tax forms home and went over them, line by line. I found the problem, it was a multiplication error. The tax form instruction said that a certain income figure should be multiplied by .1% and H&R multiplied it by .1, instead of .001  . Easy error to make (no big deal, people make mistakes), so I called the preparer and told them about the error.


The preparer argued that I was wrong! So, he switched me to his supervisor who also argued that I was wrong! Then that supervisor put me on hold, while he called his district supervisor who confirmed that I was right. I do my own taxes, now.



It doesn't surprise me.



Nov 6, 2006 2:42 pm
blarmston:

Beramberger- why dont you call your ML FA and ask them these questions. While they are not licensed to provide tax advice like a CPA, they have specialists and experts a phone call away. Or maybe sitting in the office down the hall.


Stop coming to this website, trust and place confidence in your FA, and take advantage of the wonderful services and expertise that you employ.



Beramberger,


I thought this was a great post.  Although, I could see how you could take it out of context.  Put the emphasis on "trust and place condifence in your FA",  we have spent years in the biz and have seen alot of good and bad tax advice.  Again, we are not tax advisors so make sure you check with your tax person on any advice given by an FA. (I'm sure that is how your FA worded it.)  We've spent too much (blood, sweat, and tears - literally) building our businesses to throw it all away by giving tax advice that we "legally" are not allowed to dispense. 

Nov 6, 2006 2:52 pm
beramberger:

Blarmston .. it occurs to me that you should be the last person using this site to advise others not to visit it. I've noticed that you've posted in excess of 900 messages many of which I found to be overly simplistic; often illogical and feeble in content. I can only conclude that you are an incompetent loser. Accordingly, I'd appreciate your refraining from responding to any of my posts.



It's a free world and blarm(and others) can post whatever the like.  If you think he's annoying you've barely scratched the surface.  He's also far from a loser.  He's just calling you out and you don't want to hear it, do you?

This site is an industry site for registered reps.  You apparently are not, which makes you a guest and a looky-loo.  So keep that in mind when you post.