Investment/Tax Shelter Consultant Advice

[Tahoe1305]

To start, I am not looking for direct investment/tax advice.

What I am after is someone who has worked with investment/tax professionals from their own experience.

Background:

I am retiring this year from my first profession. I’m 42 and have made “adequate” financial decisions in that time. I have been blessed enough to only pay about 5-8% taxes over the last 20 years or so due to my career field.

That is changing this year as I start my second career. I am expecting to pay 5x the taxes yearly (in value not %) over the next few years and I plan to work for at least another decade.

I own a few homes in various locations as rentals, etc. I will also retire with a pension from my first gig and am not afraid to invest or take risks. I am also frugal and hate wasting money with little value gained.

I “feel” savvy on taxes and have done my own for all but one year (2021) when I elected to sell two rental homes. The folks I paid to do them came up with the exact same figures I did, so I haven’t paid again since.

I am happy to pay my fair share of taxes, but I am also happy to buy/sell/invest appropriately to minimize the burden as the law allows it. I didn’t make the game, but I’m happy to play the game they made.

Does anyone have experience with a single entity/person who assists with the wealth management and the tax element of it?

I don’t think most CPAs are looking forward, they look at the last years events for current tax burden. I want someone to advise me on what moves to make.

Specific questions:

1) Who is that right person (Wealth mgt, CPA, lawyer, etc) that you have used with success?

2) What was the rough cost and was it “worth” it?

3) How much net worth/assets is this kind of thinking needed for in reality? Maybe I’m over thinking it as a wee peasant.

 

[Hnthrdr]

These are good questions. My wife found a guy that deals exclusively in her industry. I was skeptical at first as he costs about 1.25k a month. He is at our beck and call though and will talk with us day and night about any financial decisions. He also has helped us get creative with our finances. My wife out earns me by a very large margin. (We paid 43%) state and federal taxes last year… she busts her ass and to cut a check like that to the government ( after paying quarterly estimates) doesn’t feel awesome… it took us a while to find this guy. He colors just inside the lines and likes to be creative the last two CPA’s we had lacked that. I think good ones are harder to find. This new guy is projected to save us about 4x what we pay him this year. So to me that is worth it. Most of the time the CPA’s are not worth it.
I don’t think you are a wee peasant, it’s all perspective. I feel like a peasant compared to a couple buddies of mine but in reality my family is doing very well as are most of us on the rok, at least I hope. I think if you find someone that can save you 2-3x what you pay them is worth it. That’s the figure I have in my mind. Our guy also handles other stuff for the wife’s business which is way over my head.

 

[Tahoe1305]

These are good questions. My wife found a guy that deals exclusively in her industry. I was skeptical at first as he costs about 1.25k a month. He is at our beck and call though and will talk with us day and night about any financial decisions. He also has helped us get creative with our finances. My wife out earns me by a very large margin. (We paid 43%) state and federal taxes last year… she busts her ass and to cut a check like that to the government ( after paying quarterly estimates) doesn’t feel awesome… it took us a while to find this guy. He colors just inside the lines and likes to be creative the last two CPA’s we had lacked that. I think good ones are harder to find. This new guy is projected to save us about 4x what we pay him this year. So to me that is worth it. Most of the time the CPA’s are not worth it.
I don’t think you are a wee peasant, it’s all perspective. I feel like a peasant compared to a couple buddies of mine but in reality my family is doing very well as are most of us on the rok, at least I hope. I think if you find someone that can save you 2-3x what you pay them is worth it. That’s the figure I have in my mind. Our guy also handles other stuff for the wife’s business which is way over my head.

So to confirm he’s a CPA but is providing financial advice as well? That’s what I’m after and that cost seems reasonable. I think putting it in perspective of what he saves you vs what he earns.

 

[Hnthrdr]

He is a CPA, he helps up weigh pros and cons when buying rentals, any large purchase, any hair brained ideas that usually I come up with… (ie buying a ranch) to “save” money in taxes haha… we can bounce ideas off him, but he isn’t giving me stock tips if that’s what you mean, his price includes doing our taxes plus he sets up our LLC’s or S-corps, and handles payroll included in all of that so i think it’s a decent value

 

[Tahoe1305]

He is a CPA, he helps up weigh pros and cons when buying rentals, any large purchase, any hair brained ideas that usually I come up with… (ie buying a ranch) to “save” money in taxes haha… we can bounce ideas off him, but he isn’t giving me stock tips if that’s what you mean, his price includes doing our taxes plus he sets up our LLC’s or S-corps, and handles payroll included in all of that so i think it’s a decent value

Sounds perfect! Thank you again.

 

[Traveler]

I’ve needed all types to get the right advice and services. Lawyer is as needed to set up llcs. My CPA is very forward looking - most of our discussion is about the future not the past. Wealth management has been very hit and miss, I haven't found one whose advise is that unique or worth significantly more than than their fees. The most valuable person I’ve found is someone who has created businesses and investments themselves, so this isn’t any of those you listed. He is more of a business mentor. Lawyers, CPA, wealth advisors are $4-$8k per year depending on the year. Business mentor cost is dependant on our relationship and how engaged I can make him.

 

[Tahoe1305]

I’ve needed all types to get the right advice and services. Lawyer is as needed to set up llcs. My CPA is very forward looking - most of our discussion is about the future not the past. Wealth management has been very hit and miss, I haven't found one whose advise is that unique or worth significantly more than than their fees. The most valuable person I’ve found is someone who has created businesses and investments themselves, so this isn’t any of those you listed. He is more of a business mentor. Lawyers, CPA, wealth advisors are $4-$8k per year depending on the year. Business mentor cost is dependant on our relationship and how engaged I can make him.

The business mentor idea is a strong one and thank you. I didn’t think about that. My father had a fairly successful business a few decades ago and I am sure was really good at all this. But he passed away a few years back and we never really talked about any of this. I bet I can find someone to fit that bill though.

 

[Hnthrdr]

I’ve needed all types to get the right advice and services. Lawyer is as needed to set up llcs. My CPA is very forward looking - most of our discussion is about the future not the past. Wealth management has been very hit and miss, I haven't found one whose advise is that unique or worth significantly more than than their fees. The most valuable person I’ve found is someone who has created businesses and investments themselves, so this isn’t any of those you listed. He is more of a business mentor. Lawyers, CPA, wealth advisors are $4-$8k per year depending on the year. Business mentor cost is dependant on our relationship and how engaged I can make him.

Completely agree on the wealth management. I have had several and currently use me, myself and I. ETF’s & mutual funds are hard to beat. Plus who cares more about my money and future than me? Most firms are taking 1-2.5% to “manage” your money… haven’t found one that really manages anything, except helping themselves to my returns. My buddies dad used to manage a hedge fund so I love talking with him anytime I can, and my best friend is a CFP and it’s fun to chat about the market on occasion too. Haven’t found a get rich quick scheme that seems legit either… but if I find one I’ll pass on the info haha

 

[texag10]

Depending on your asset level from the investment side, wealth management is really going to help you if they can be tax efficient with your non retirement money. The guy at Ed Jones putting your brokerage account in active mutual funds ain't it, the team looking for tax efficient funds or using single stocks and doing things like tax loss harvesting and asset location (each account type has a different allocation based on tax structure to achieve a desired overall allocation) is what you want.

I coach advisors that work with clients that are usually 2-10M in investable assets, some with more, and rarely see self directed clients doing that much better unless they get lucky with a highly concentrated stock position taking off or generally take a really high level of risk.

If you want to combine wealth management with in house estate planning and tax advice/prep that's actually GOOD, you're probably out of luck unless you have 5M+ you're willing to have managed.

If you have them separate, you are going to be the intermediary that keeps everyone in the loop. I've seen client plans get really messed up by something like an estate attorney putting a large amount of the client's assets in an irrev trust type that leaves the clients on the hook for any taxes generated by the trust. It was great for their projected estate tax liability....but they were at a much higher risk of running out of money for their own living expenses with the added tax cost. A slightly different trust type would've accomplished a similar thing with more ability to access if needed.

 

[Jon Boy]

These are good questions. My wife found a guy that deals exclusively in her industry. I was skeptical at first as he costs about 1.25k a month. He is at our beck and call though and will talk with us day and night about any financial decisions. He also has helped us get creative with our finances. My wife out earns me by a very large margin. (We paid 43%) state and federal taxes last year… she busts her ass and to cut a check like that to the government ( after paying quarterly estimates) doesn’t feel awesome… it took us a while to find this guy. He colors just inside the lines and likes to be creative the last two CPA’s we had lacked that. I think good ones are harder to find. This new guy is projected to save us about 4x what we pay him this year. So to me that is worth it. Most of the time the CPA’s are not worth it.
I don’t think you are a wee peasant, it’s all perspective. I feel like a peasant compared to a couple buddies of mine but in reality my family is doing very well as are most of us on the rok, at least I hope. I think if you find someone that can save you 2-3x what you pay them is worth it. That’s the figure I have in my mind. Our guy also handles other stuff for the wife’s business which is way over my head.

If this guy is in Montana, send his info to me please! Or if anyone knows a cpa like this in Montana send their info my way!

 

[Hnthrdr]

If this guy is in Montana, send his info to me please! Or if anyone knows a cpa like this in Montana send their info my way!

He is in Tennessee, not that it matters we are in Co but his scope revolves around dentists who own practices… I can ask him if he takes on other industries but dentistry is kind of his niche

 

[Beendare]

I’ve needed all types to get the right advice and services. Lawyer is as needed to set up llcs. My CPA is very forward looking - most of our discussion is about the future not the past. Wealth management has been very hit and miss, I haven't found one whose advise is that unique or worth significantly more than than their fees. The most valuable person I’ve found is someone who has created businesses and investments themselves, so this isn’t any of those you listed. He is more of a business mentor. Lawyers, CPA, wealth advisors are $4-$8k per year depending on the year. Business mentor cost is dependant on our relationship and how engaged I can make him.

This has been my experience also. The vast majority of "Financial Planners" are not savvy enough to juggle Real Estate assets and think in terms of Tax burden.

I have a CPA [of course] and they are good for Scenarios, for example, Sell this RE asset vs. 1031 exchange the asset to a different state....vs take loan against it- vs form an LLC to hold the asset- etc. Then I decide what works best for me which is what I've done for decades- it sounds like you-@Tahoe 1305 have done the same.


The couple business owners like myself that I know are the ones that think outside the box....but it's hit and miss. Sometimes you just have so much gain, you are just screwed and will be paying tax no matter what you do.

FWIW, forming a business with you as sole owner gives you multiple options to shift income into assets- like Retirement accounts that are deferred tax and shift after tax expenses into pre tax- a huge advantage. My guess is you are already doing that.

 

[SWOHTR]

Military, I'm guessing?