CPA, Doc Tober, Anderson discussed on Consider This with Big Joe Clark
You are listening to the best of consider this put together over the last few years of this show. We're good morning and welcome back to consider this. I'm Joe Clark Santos happy to have you along. Hey, we we started this show talking about things that you needed to worry about heading doc Tober fifteenth because that's when you're final taxes are really do the tax return itself. So even if you filed you can go back in a minute, but you can't do anything affecting two thousand eighteen all we're talking about is you're seventeen return. Right. That's why tax planning is so critical, and we're talking about a couple that that took the time to learn. And then went back to the answer that they wanted to hear at least one of them wanted to hear meantime without going any further. Yeah. So so. I want to get something that we've talked about before. And that is the relationship between the people that are actually coming to you for help and their entire extended family because we've talked in other segments how different tax returns, even though you might be dealing with the parents or grandparents it can all be affected. Absolutely. We we look I I do my best when when we send out our tax package, so never November. I if the first week in November, if you're one of our families, you get a package in the mail on that package, essentially says, hey, have any of these eight to twelve things occurred to you this year and have they occurred your age children that's people twenty five and over or people that are on their own married. A twenty one year old two married or your parents have still living right in those questions are as if there've been any extreme charitable gifts. Didn't somebody get divorced or pass away? Did you have a large income change either good or positive or negative? You know, those kind of things that we're looking for. And and so we get very much into that family planning stuff. In fact, we have a family bundle program. So just to make this as easy as I can in English there there are you can look at Anderson where were the financial enhancement group is headquartered and people will tell you that Anderson is not very affluent. And they are accurate about that fluence is a lot of of of income excess income above what the spend median wage would be not as expendable just incoming general. That's fluid. So okay. Somebody makes a hundred and fifty thousand dollars a year in central Indiana. They are a flu. Okay. I'll let you have two other people. It doesn't mean they have a dollar in the Bank. Right. So people who are a fluent are are dealt with by insurance agents and people who sell stuff. F- because they can pay a premium. They've got cash flow to come in to pay a premium means, they're not fiduciaries. They're getting paid on commission. But in many cases, it's the only advice that a young doc or a young professional or business owner can get they've got income. But they don't have a lot of assets yet Ryo Joan, okay? A lot of my life. I had I had assets. But they were in a business. Right, right. I didn't make it. I didn't. I wouldn't be. I wouldn't have been a very good client for me for decades. Two decades writer. Yeah. Yeah. So then you moved to the other side, which is where wealth comes from now wealth is you don't have to have a lot of income. That's how we have a guy with in in our example with two million dollars in an account in an attempt percent federal tax bracket. There's a difference between a fluence income recognition today. Yeah. And wealth, and wealth is what people that are fiduciaries like myself get paid to manage right? It's a Tele financial enhancement group function. So we when when you when you've got that. The concept of we don't sell anything. We don't make any commissions the only way we get paid as to manage assets that you already have right right younger people often get left out of the deal. And so at the financial enhancement group, we created the F E G allocation model by the allocation process for younger people to come in. So you're part of your we take care of grandparents or we take care of of Sherry we family bundle. So your kids don't necessarily have to have an account at the financial enhancement groom. But they have the ability to call in and say should I buy or lease? Should I buy a disability policy? How much life insurance? Do I really need is. Because the parents are part of the process because the parents are part of the process, and we and we do that because what ends up happening noticed. When is gone. I'm taking care of your kids in the twins. Yeah. Yeah. Yeah. I would much rather. I would much rather get them off to the right footing. Yeah. Then get him in the raw and get them in the right area. And then then then by a policy that I've got unwind, sir. Twenty years later because somebody thought the idea of buying whole life life insurance was planning it sounded good on paper. So you put all of that stuff together. So understanding that family bundling is important. So the CPA probably knows in the example that we were getting probably knows that his kids are doing pretty well. Yes. Probably doesn't know their names. I know he doesn't do their taxes. Yeah. I know where they live, right. Yeah. Because we asked these questions to be up with a strategy. Right. Yeah. It makes I can't. I mean, I can look at you and say, okay here, Sherri, here's what I believe to be true. Right. But as a doc, I'm still gonna give you an MRI and run some blood tests. Yeah. I'm not gonna tell you that. It's you know, there's nothing wrong without making sure, you know, in you can't just answer questions based on a singular tax return or a singular investment. And and it it just it doesn't work that way. You get into trouble. Do you think most CPA's do tax planning or do? They just detects reporting. Most just the reporting not always their fault. No, no, not always their fault. Their model is to Bill by the hour. Right. Oh, yeah. Nobody wants to pay. That's one wants to pay number two. Nobody wants to take the time. Right. And number three at thanksgiving. The last thing you're thinking about is filing your. Taxes for the year. Right. And so you're not hauling the CPA firm saying, hey, I need to schedule an appointment. So I can talk to you about any year end planning that needs to be done. Yeah. On the suitability side of the financial world. So think every broker that you know, every wirehouse she worked with at the bottom of everything there's a little tagline that says consult your tax advisor. Yeah. Well, I've been partners with accounting firms since two thousand and one I'm here to tell you it doesn't have ninety percent of the time. And then and it's and it's not that the CPA's. Couldn't do it. Right. It's that their model is not set up in that way for most of them. Now that doesn't mean that there's not some that are out there that are quite competent. Very good. How would they do it in? If they didn't have access to all the information that you do what you have to ask those questions. Okay. It's not like somebody showed up and said, here's the family diary. I mean, you asked for a process that says, here's what I need. This is why it's important in. Here's how you go through so financial planning in general. It makes sense to me that tax planning would be part of financial plan at absolutely it makes sense that those two are actually the same thing. It absolutely is. And it's hilarious because I do I do the tax planning with the CPA's. In fact, if you ask my CPA partners, they'll tell you that I do most of their tax planning because my head is wired that way. You all my tax reporting because I have no clue how. Why don't underst-? I, you know. I don't get it. Yeah. I understand the planning part, right, right? Whether it's a one ninety nine eight new new that's all their baby, right? Sure. That's why you have to work with the competent ones right now in order to be able to get it done and just part of our process, if you're one of our families, we it's a whole lot easier to come to see me when you know, I'm doing it for free. Right. Yes. It's already bundled in Beijing money. Oh, I see. We do the planning for free. So it's a lot less painful. Yeah. Send an Email to ask a question, sir, right in and that's why they have the team of people that saying the things that that we do for the average family that walks in here. I could not afford to do for myself. If I didn't have the team behind behind it all of the processes, the specialties and everything else that goes along. I I don't honestly understand how people do this in one man shows. Yeah. Because the best way for you to manage money is to actually have the full picture, you have to if you're gonna if you're gonna if you're going to do it, right? Have to because any one of those five critical elements can and we'll see the the the retirement part attacks part the investment part legacy part and Xetra..