Investing wisely is a multifaceted task that goes beyond just selecting the right stocks or portfolios for your future. One crucial aspect that is often underestimated is tax planning. Investors can significantly benefit from partnering with a Registered Investment Advisor (RIA) who is also a tax advisor.

In this article, we will explore the reasons why this combination provides a distinct advantage for investors seeking to optimize their financial outcomes.

  1. Holistic Financial Planning: An RIA with tax advisory expertise can offer a comprehensive and holistic approach to financial planning. By integrating investment strategies with tax planning, investors can optimize their overall financial picture. This holistic perspective allows for better alignment of investment decisions with tax implications, ensuring that each financial move is strategically planned.
  2. Tax-Efficient Investing: Taxes can erode investment returns, making it essential to implement strategies that minimize tax liabilities. An RIA/tax advisor can design investment portfolios with a keen eye on tax efficiency. This includes considering factors such as capital gains, dividends, and tax-loss harvesting to maximize after-tax returns.
  3. Customized Strategies: Individual tax situations vary, and a one-size-fits-all investment approach may not be suitable for everyone. An RIA with tax expertise can tailor investment strategies to align with the unique tax profile of each investor. This customization ensures that investment decisions are not only financially sound but also tax-efficient based on the specific circumstances of the investor.
  4. Risk Mitigation Through Tax Planning: Tax planning is not just about reducing liabilities; it's also about mitigating risks. An RIA who is well-versed in tax matters can identify potential tax-related risks and implement strategies to address them. This proactive approach helps investors navigate the complex tax landscape and avoid pitfalls that could impact their financial well-being.
  5. Continuous Monitoring and Adaptation: Tax laws are subject to change, and the financial markets are dynamic. An RIA/tax advisor can stay abreast of tax law changes and market conditions, ensuring that investment strategies remain aligned with the latest regulations and economic trends. This adaptability is crucial for investors looking to optimize their financial outcomes in a constantly evolving landscape.
  6. Financial Goal Alignment: Tax planning is closely tied to financial goals. An RIA who understands both the investment and tax aspects can align strategies with an investor's long-term financial objectives. Whether the goal is retirement planning, wealth accumulation, or legacy planning, having a unified approach ensures that both investment and tax decisions contribute to the realization of these objectives.


In conclusion, investors stand to gain a significant advantage by working with a Registered Investment Advisor who also serves as a tax advisor. The integration of investment and tax strategies creates a powerful synergy that can lead to more efficient, customized, and goal-oriented financial planning. As the financial landscape continues to evolve, the importance of this dual expertise becomes increasingly evident, making it a wise choice for investors seeking a holistic and optimized approach to wealth management.

Eric Imbuelten is a practicing tax preparer and financial advisor and started his tax practice in 1990, 34 years ago. He added planning services, insurance products and fee-only investments (RIA) over the last 27 years at A.E.I. Financial Group, as a holistic financial planning company. Call for a preview of how our services can help you achieve your goals for a stress-free retirement.