This is the fifth in a series of 23 tax tips thatAdvisorOne will publish on each business day in March as part of our Tax Planning Special Report (see our Special Report calendar for a more complete list of topics to be covered and experts who will deliver their insights).
Today’s tip comes from Bernard Kiely of Kiely Capital Management in Morristown, N.J. Kiely is a CFP and CPA and has been a fee-only financial planner and provider of income tax services for individuals for more than 25 years. He is also a long-time member of NAPFA, where he serves as the dean of NAPFA University’s School of Taxation.
The Tip: Get Clients to Tell You Immediately When They Have a Big Bonus or Capital Gain
Often, being constantly aware of a client’s cashflow situation can provide an advisor with opportunities at the time of an event, rather than having to pick up the planning pieces later when there are fewer options. Kiely (left) stresses the importance of impressing on your clients the need to check with you immediately when they experience any big liquidity event, particularly if they are in line for a big bonus or capital gain.