PLANADVISER - May/June 2018 - 37

capabilities, they will be able to boost loyalty and attract
new business, Ambrozy argues. This is true whether the
adviser develops novel planning capabilities internally, or
partners with a recordkeeper or one of the many emerging
third-party service providers that focus on topics such as
Social Security optimization, student debt management,
retirement income-tax minimization and more.
Naturally, the mechanics of how individual advisers can
integrate Social Security planning support-as well as these
other types of deeper financial wellness services-will vary
tremendously by firm, client type, business model, compensation
structure, etc. But it is clear, nonetheless, that both
individual clients investing through individual retirement
accounts (IRAs) and defined contribution (DC) plan participants
investing at the workplace are equally hungry for
more advanced financial planning. Thus, how to plan for
Social Security is also of great importance to plan sponsor
clients-not just individuals.
Like Social Security timing, the topic of taxes bears
strongly on the long-term financial health of retirement
investors and should, therefore, be a part of retirement
planning advice.
To underscore the point, Andrea Millar, director of financial
planning for the American Institute of Certified Public
Accountants (AICPA), in Raleigh-Durham, North Carolina,
points to a recent survey her organization conducted, also
with Harris Poll. Survey data shows that nearly a quarter of
affluent adults-i.e., those with $250,000 in household assets
or $200,000 in annual income-overpaid taxes in at least
one of the past 10 years and were owed a refund. In addition,
14% underpaid and owed the Internal Revenue Service (IRS)
money in at least one year during the last decade.
" Over- or under-withholding payroll tax can be a strategic
move, " Millar points out. " But winding up with a big tax
bill or a large refund can also indicate that adjustments are
in order. And with updated withholding tables from the new
tax law in effect, now is a perfect time to do this analysis
with clients. "
According to Millar, a tax return can " double as a road
map to a more prosperous financial future. In it, Americans
and their advisers can find details of their cash flows,
important investment information, insights to retirement
and estate planning, and can identify overlooked strategies
to help them achieve their financial goals. " According to the
AICPA and Harris Poll, life events such as having a child,
experiencing a divorce or purchasing a home can all have
a major impact on an individual's tax situation-and, by
extension, on his budgeting and investing plans.
" Alarmingly, less than half of affluent adults said it is
likely that a major life event would cause them to adjust
their financial plan to be more tax efficient, " Millar observes.
" Of those who would be likely to make changes, the leading
causes cited were health issues, followed by retirement,
becoming disabled, getting divorced and having children. "
planadviser.com may-june 2018 | 37
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PLANADVISER - May/June 2018

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