Principled Prosperity In Practice
"Then render to Caesar the things that are Caesar's, and to God the things that are God's." Luke 20:22
One area where almost everyone looks to save - and where we can help - is taxes. Every penny saved by prudent tax planning is
more money to invest.
The Treasury Inspector General estimates well over half of all taxpayers over pay their taxes by not taking advantage of available
tax provisions. More disturbing is that 89% of those taxpayers that over pay their taxes use professional tax preparers - CPAs,
"There's no point in paying somebody to do your taxes if those folks don't do you any good," according to U.S. Senator Charles
One study of more than 1,018 financial "gatekeepers"- CPAs and accountants, financial planners, tax and estate planning
attorneys, stockbrokers, investment advisers, and insurance professionals- revealed that none of the groups could pass a 20
question tax / charitable donation quiz - with accountants having the lowest scores answering only 30% correctly and estate
planning attorneys scoring the best with only 65% correct.
Another study confirming the Inspector General's findings revealed 54% of these "gatekeepers" don't bring up tax saving options
to their high net worth clients, and only discuss them after first being asked by their client, led one adviser to ask, "Would you
keep a gatekeeper who didn't advise you that you could give to your favorite charity and at the same time save tax dollars and
make money in the process?"
To be fair, most traditional "gatekeepers" are specialists and not trained in multiple disciplines as are managerial economist.
One should probably not ask a CPA or attorney for investment advice, not should one seek tax advice from an investment
adviser. More often than not, we find high net worth gatekeepers seldom speak to each other, rarely operating towards the same
goals, and frequently working at cross-purposes.
We suggest a coordinated tax and investment strategy, working with your existing gatekeepers where possible, as the best
strategy to minimize taxes and maximize wealth.