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The Crucial Role of a Tax-Intelligent Financial Plan

The Crucial Role of a Tax-Intelligent Financial Plan

January 12, 2024

In the ever-changing landscape of personal finance, one key element remains constant—the need for a well-crafted, tax-intelligent financial plan. At Rowhouse Financial Partners, we know pursuing financial goals requires more than just wishful thinking; it demands strategic planning, foresight, and a commitment to navigating the complexities of the financial world. That’s why we design and customize financial plans for all our clients, and here are a few reasons why these plans are so important.

The Power of Planning

Simply put, a customized financial plan serves as a roadmap for clients as we guide them toward their short- and long-term financial objectives. Having an advisor and a plan, which we develop and finalize in collaboration with the client, helps keep everyone on track and allows individuals to see a path toward their goals.

People who work with an advisor are also more confident in their finances than those without. According to a survey conducted by Northwestern Mutual, it was found that 75% of respondents who engage with a financial advisor expressed a sense of having or anticipating long-term financial security, in contrast to those without an advisor (47%)1. Having assurance about finances can be a stress reducer for most people, and it all starts with having a plan and a trusted advisor in place.

Goal-Setting

Success is different for everyone regarding finances, so goal setting is a core aspect of our planning process. Whether buying a home, funding education, starting a business, or retiring comfortably, a financial plan provides a structured approach to pursuing goals by discussing them at the outset.

Setting, identifying, and writing down goals also makes it more likely you’ll reach them2. Working toward your financial goals is a tangible benefit of having a clear financial strategy in place, not to mention the feeling of accomplishment!

Tax Efficiency and Planning

What sets our approach apart is that every financial plan we create for clients considers tax implications, as taxes can be one of the most significant factors to affect your overall finances.

Rowhouse Financial Partners was primarily an accounting firm when we started over 20 years ago. Seeing financial opportunities through clients’ tax returns was one of the reasons I decided to expand our service offerings to include financial planning and gain my CERTIFIED FINANCIAL PLANNERTM (CFP®) certification in 2007. Our team has seen firsthand how taxes play a significant role in shaping one's financial journey, and a well-designed financial plan that optimizes tax-efficient strategies can make sure you’re maximizing savings and minimizing liabilities.

Common strategies that we incorporate into our financial plans that consider the tax perspective include advising on optimal withdrawal strategies, retirement account rollovers, tax-advantaged savings and investment accounts, and more.

Our Approach

At Rowhouse Financial Partners, we recognize that everyone’s financial situation is unique. Our personalized approach to financial planning integrates a thorough understanding of your goals, risk tolerance, and tax considerations. By leveraging our expertise and cutting-edge tools, we create a comprehensive financial plan that is truly holistic and evolves with you. As you embark on your financial journey, consider partnering with Rowhouse Financial Partners to craft a tailored plan that aligns with your dreams and aspirations.

[1] Northwestern Mutual, 2023

[2] Forbes, 2017