Recent changes to the tax laws have financial advisors looking to revise their recommendations for portfolio implementation to better manage the impact of taxes, according to a survey released by SEI.
The survey revealed that nearly 9 in 10 advisors polled (88%) said that, in light of new tax laws, they are considering making changes to their portfolio strategies in order to reduce the overall effect of taxes. The survey, of more than 250 financial advisors, comes at a time when taxes are top of mind for advisors and their clients.
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Dean Mioli, Director of Investment Planning for the SEI Advisor Network, said: "Tax management has always been a focus for most advisors, but with recent changes to the tax laws they have more opportunities to show their expertise and add value to each client’s individual situation. Clients are becoming a lot more aware of the impact taxes can have, and advisors are being forced to regularly re-evaluate their portfolio implementation and identify new ways to better manage the tax implications for every client."
The survey results also revealed that the new tax laws are forcing financial advisors to review all portfolios, including their own, for opportunities to implement new tax management techniques. The overwhelming majority of financial advisors polled (93%) said they will review their own tax returns to identify tax savings ideas.
Similarly, nearly as many (90%) said they plan to review the returns of clients and prospects at their next review meeting to identify opportunities to implement new tax saving strategies.
