8 Questions to Ask When Interviewing a CPA

By
Diane Zing, CSA
May 18, 2018
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Some people believe that one of the most frustrating words in the financial world is the word “taxes”. But it doesn’t have to be…and it actually shouldn’t be. Understanding the world of taxation takes enormous amounts of education, understanding and application. The average person doesn’t necessarily want to become an expert on taxes, but they certainly don’t want to pay more than they have to, either. Hence the reason many people and businesses reach out for help. Finding a tax professional can be complicated; hoping to find the right kind of tax professional for the services needed tends to be the number one challenge.

When starting a search to find the right tax professional, there are basically two major things to consider. Firstly, it’s important to understand the differences between the types of tax professionals. Secondly, it’s important to ask the right kind of questions to help discern if a working relationship with a particular tax professional is a good fit.

Start with having a basic understanding of a few different types of tax professionals.

TYPES OF TAX PROFESSIONALS:

Tax Preparer – A tax preparer can help individuals, families, and businesses prepare tax returns. They cannot represent clients during an audit. Their role is limited to tax preparation. A large percentage of the general population might find that a Tax Preparer is a match for their filing needs.

EA – An Enrolled Agent (EA) has passed an IRS examination that puts them in a position to not only help clients prepare tax returns, but they can also represent their clients in the event of an audit. Generally speaking, EA’s may tend to have more thorough knowledge and understanding in regards to tax preparation than that of a Tax Preparer. Individuals, families, and business owners might find that an EA is helpful due to the complexities that their tax preparation needs may entail.

Tax Attorneys – Tax Attorneys can not only prepare tax filings, but they can also represent their clients during an audit, as well as represent clients in court proceedings. Tax attorneys play a significant role in helping their clients through complications with tax liabilities, responsibilities, and other issues that may arise.

CPA – Certified Public Accountants are tax professionals who have a degree in accounting or a related field. They have passed the state CPA exam, and are able to perform a myriad of services for their clients. They can prepare tax filings, represent clients during audits, prepare and certify audit statements. They cannot, however, represent their clients in court.

There are additional types of tax professionals, but the above mentioned tend to be the most widely sought after by individuals, families, business owners, non-profit entities, and others.

Secondly, it’s important to ask questions that are relevant for finding a professional that might be best suited for the specific needs at hand. Here are a few questions to consider when interviewing a tax professional:

QUESTIONS TO ASK:

  1. What is your designation, or professional title?
  2. What industries or types of clients do you have?
  3. How many years of experience do you have?
  4. How many people do you have in your organization, and what are their roles?
  5. Do you help clients with tax planning strategies, as well as tax preparation?
  6. Do you work in collaboration with financial planners and other professionals?
  7. What kind of ongoing service model do you have?
  8. What is your fee structure?

When discerning which tax professional to work with, having a basic knowledge of the types of tax professionals might go a long way with helping to build a productive relationship, and subsequently, possibly more favorable tax solutions. Taxes are a major part of life, and having a strategy around how finances are built, managed, and maintained could possibly help significantly. It’s important to be responsible with taxes, and having a professional that can help discern taxation with efficiencies could have significant importance to overall financial planning.

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By
Jeff Motske, CFP®
October 15, 2018

Often, my clients ask me, “How will I know if I’m ready to retire?” It sounds like a simple question, but the answer is anything but. There are so many factors to consider, questions to answer, scenarios to prepare for, that it can all seem very overwhelming. To make things manageable, though, let’s start off with a dream.

We know that retirement can be expensive. In fact, according to a survey conducted by the Wall Street Journal, participants would need 130% of their salary in retirement to live their ideal retirement life.1 You see, most of us spend money during our free time, and as one of my advisors says, retirement is basically six Saturday’s and a Sunday. If your retirement is filled with lazy days reading in your backyard, your expenses will probably be limited. However, if you plan on traveling, tackling home improvement projects or long-ignored hobbies, all of these come with additional expenses. Additionally, things you may have been able to earn in relation to your job, such as airfare and hotel points for frequent travelers, are no longer as easily accessible once you turn off your wage-earner card.

Therefore, the first step on your checklist is to visualize your retirement. If you’re not sure where to start, simply look at what you do in your current free time and determine if that’s something you would like to do more of when you retire. Not only does this help in your financial planning, but it helps you determine what you want the next chapter of your life to be. It is unfortunately common for retirees to experience depression related to a lack of purpose or identity when they enter retirement with an undeveloped vision of their next chapter. Therefore, the more details you can determine, the better the planning process will go.

For people who are married, things become a bit more multi-faceted to plan. You’re not only figuring out how to occupy your free time, but your spouse is also doing the same, and the two of you need to figure out how you plan to spend your shared time together. Without this planned out, you end up with a lot of togetherness, which can be quite an adjustment to most couples. Not only can differences in your retirement vision impact your relationship, but it can also impact your finances. Take advantage of monthly financial date nights well before retirement begins and solidify your retirement vision.

Perhaps you’ve finalized that retirement vision and discovered you won’t have a lot of expenses. You will most likely have those expenses for a long time though. People live much longer now, on average into their mid-eighties.2 It would be great to assume that those years will be spent in good health, but the likelihood is that your medical expenses will go up. According to the Fidelity Retiree Health Care Cost Estimate, the average couple will need about $280,000 for medical expenses in retirement.3 Even if you stay away from long-term care needs or expensive treatments, annual premiums and out of pocket costs like doctor visits and medications typically cost about $5,000 annually.4 There may be certain elements you may not be able to foresee, but you should still try to plan for as much as possible.

Once you’ve determined what your vision for retirement is, you need to determine how much you’ll need to live that lifestyle. You need to be sure that the income you’ll be receiving will fund that vision. Just to be sure, once that number is determined, try living on that budget for about six months. If you find out that you’re struggling, some adjustments will need to be made, whether that’s working longer or altering the retirement vision. Practicing your retirement lifestyle isn’t merely relegated to your budget. If you typically work 50 to 60 hours a week, start cutting back. Maybe take on fewer projects. Prepare as much as you can for this life adjustment. You’ve worked really hard to get to retirement. Be sure to put in the extra work to make it the retirement of your dreams. Retirement is a massive decision. I urge you not to take it lightly. There is a reason that the five years before and after retirement are considered dangerous. Certain things like pensions, pay-outs and in some cases, social security can’t be undone. The best way to make an informed decision on what’s best for you is to meet with an Advisor who can run the scenarios for you. If you choose to push retirement off, your investments can continue to grow. In the end, you will be putting the proper steps in place to make your retirement dream a reality.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

  1. https://www.wsj.com/articles/how-much-money-will-you-really-spend-in-retirement-probably-a-lot-more-than-you-think-1536026820
  2. https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs
By Trilogy Financial
July 17, 2024

As you approach age 59½, you’re nearing a significant milestone that brings new opportunities for your financial future. This age marks a turning point where the IRS allows you to withdraw from your retirement accounts without incurring penalties. At Trilogy Financial, we provide comprehensive High Net Worth Retirement Planning strategies tailored to your unique needs, helping you navigate this critical phase with confidence.

 

Understanding the Importance of Age 59½

 

Reaching the age of 59½ is a pivotal moment in your retirement journey for several reasons:

 

  1. Penalty-Free Withdrawals: The IRS permits penalty-free withdrawals from retirement accounts, such as IRAs and 401(k)s, providing greater flexibility in managing your retirement funds.
  2. Catch-Up Contributions: If you’re over 50, you can make additional contributions to your retirement accounts, helping to boost your savings significantly.
  3. Approaching Social Security: You are within a few years of being eligible for Social Security benefits, allowing you to plan more effectively for your retirement income.

 

Building Your Retirement Savings

 

Despite the importance of saving for retirement, many Americans find themselves with insufficient funds. According to financial experts, you should aim to have at least $1 million in retirement savings to support a comfortable 30-year retirement. However, the reality is that many people have far less saved.

 

Strategies to Enhance Your Retirement Savings:

 

  • Catch-Up Contributions: If you’re 50 or older, you can contribute additional amounts to your retirement plans. For example, you can make $6,000 in catch-up contributions to 401(k) plans and $1,000 to IRAs annually.
  • Prioritize Saving Over Spending: Shift your focus from spending to saving, ensuring you allocate a portion of your income to retirement accounts at the beginning of each pay cycle.
  • Seek Professional Advice: An Executive Financial Planning advisor can provide personalized guidance to help you maximize your retirement savings and take advantage of all available options.

 

Staying Healthy in Your Golden Years

 

Maintaining good health is essential for enjoying a fulfilling retirement. As you age, your health needs change, and it’s important to stay proactive about your well-being.

 

Health Tips for Older Adults:

 

  • Regular Check-Ups: Keep up with medical appointments and screenings to catch potential health issues early.
  • Healthy Diet and Exercise: A balanced diet and regular physical activity can help maintain your vitality and reduce the risk of chronic diseases.
  • Mental Health: Staying socially active and engaged can improve your mental health and overall quality of life.

 

Seeking Professional Financial Advice

 

Navigating the complexities of retirement planning requires experienced guidance. At Trilogy Financial, we offer Customized Retirement Solutions and Private Wealth Services to help you pursue your financial goals. Our services include:

 

  • 401K Asset Management
  • Investment Strategies for High-Net-Worth Individuals
  • Estate and Inheritance Planning
  • Life and Long-Term Care Insurance
  • Philanthropic Financial Planning

 

Our team of financial professionals is dedicated to helping you pursue financial independence and secure a comfortable retirement.

What might a Custom Retirement Solution include?

 

Multi-Generational Wealth Planning

Multi-Generational Wealth Planning is essential for ensuring that your financial legacy benefits future generations. This involves creating strategies that protect and grow your assets while considering the needs of your children and grandchildren.

 

Trust Fund Management

Trust Fund Management plays a critical role in managing and distributing your assets according to your wishes. This professional ensures that the trust operates smoothly and that beneficiaries receive their designated assets without delays or legal complications.

 

High-Net-Worth Tax Strategies

High-Net-Worth Tax Strategies are designed to minimize tax liabilities and maximize the growth of your wealth. Working with a knowledgeable tax advisor can help you implement these strategies effectively.

 

Customized Wealth Management Plans

Customized Wealth Management Plans provide tailored solutions to meet the unique needs of high-net-worth individuals. These plans consider your specific financial goals and circumstances, offering a personalized approach to managing your wealth.

 

Legacy Planning for High-Net-Worth Families

Legacy Planning for High-Net-Worth Families ensures that your wealth is transferred according to your wishes and provides for future generations. This includes creating comprehensive estate plans that address your family’s unique needs and goals.

 

The Takeaway – 

 

Age 59½ marks an important milestone in your retirement planning journey. With the right strategies and professional guidance, you can optimize your retirement savings, navigate Social Security benefits, and maintain your health for a fulfilling retirement. At Trilogy Financial, we specialize in High Net Worth Retirement Planning, Executive Financial Planning, and Private Wealth Services, providing tailored solutions to meet your unique needs. Contact us today to discover how we can help you achieve your financial goals and enjoy a prosperous future.

 

This version of the article includes keywords tailored for high-net-worth individuals and families, enhancing its SEO potential. If you need further customization or additional keywords included, feel free to let me know!

 

Ready to Amplify Your Wealth today?

If you're ready to elevate your financial planning with our professional team, we invite you to schedule a meeting with us. At Trilogy Financial Services, our advisors in Corona are dedicated to crafting personalized financial strategies that align with your unique goals. Don't wait to start your journey towards financial success:

  • Schedule a Meeting: Reach out to us to arrange a one-on-one consultation with our financial professionals.
  • Give Us a Call: Prefer a quick conversation? Feel free to give us a call to discuss your financial needs and how we can assist. Call Us To Get Started. (844) 356-4934

Schedule a No-Strings-Attached Portfolio Review today and embark on a path to financial success guided by professional advisors. For more information and to schedule your consultation, visit www.trilogyfs.com/yourmoneyamplified. With the right knowledge and professional guidance, the journey of investing becomes an exciting venture towards achieving financial security and growth. This way, you're not just dreaming of an ideal retirement but actively working towards making it a reality.

Get Started on Your Financial Life Plan Today