Advisors can differentiate themselves by providing tax-related advice year round, according to SEI Advisor Network.
Clients are asking more tax related questions as a result of the debates about the fiscal cliff, according to an SEI survey of 170 financial advisors. Sixty-nine percent of advisors say their clients are asking more tax-related questions, the survey said.
Tax management is taken into consideration by 81 percent of the advisors. But advisors often do not consider taxes year round, which could set their practice apart, SEI says.
For instance, 52 percent of advisors only consider harvesting losses from the sale of stocks at the end of the year to offset gains. This should be considered periodically throughout the year, SEI says.
In addition, tax-cutting methods such as shifting money to family members in lower tax brackets should be considered.
“With clients asking more tax-related questions than ever before, advisors should proactively offer tax-related advice and implement tax-driven strategies throughout the year,” says Dean Mioli, director of investment planning for SEI Advisor Network. “By making taxes top-of-mind, advisors can differentiate themselves and gain mind share in a competitive environment.”
SEI provides financial advisors with wealth management services through outsourced investment strategies, administration and technology platforms and practice management programs.