Where do investors turn for reliable information when trying to figure their 2017 tax returns and plan for next year’s filing under the revised tax code?
Twenty-five percent of investors in a new survey from TD Ameritrade Institutional said their most-trusted source of information was financial advisors — well ahead of TV news, 17%, accountants, 14%, and tax preparation services, 11%.
This is important because 75% of respondents said they were unclear how the new tax law would affect them.
TD Ameritrade Institutional developed its Americans & Taxes: An Individual Investor Survey to understand how U.S. investors view the recently enacted tax law. Koski Research fielded the poll in mid-January among 1,000 U.S. adults with a minimum of $10,000 in investable assets.
What Your Peers Are Reading
“There are plenty of experts offering their views on the new tax code and how investors should respond, yet we find, once again, that investors want advice and guidance from someone they trust, especially in times of uncertainty and change,” Tom Nally, president of TD Ameritrade Institutional, said in a statement.
Investors in the survey had mixed views about how the new tax law would affect the American economy and their households. Forty-one percent said it would benefit the economy, while 35% said it would do the opposite.
At the same time, 35% of respondents expected their take-home pay to increase, but 22% thought their paycheck would be slimmer.
One thing 63% of survey participants agreed on, regardless of income level or investable assets, was that wealthier households would benefit more. Fifty-five percent said “very wealthy people” would benefit most.
TD Ameritrade Institutional said the survey results reinforced its poll of registered investment advisors, published in January, who said the new tax plan would be the top item affecting client portfolios in 2018.
The survey found that most investors in the poll, whether they had a good understanding of the new tax law or a minimal one, planned to take several actions this year to navigate the new tax landscape.