Todd Mackay, President, AvantaxTodd Mackay, President
As people move through the stages of life—whether starting a career, having a family, or opening a business, and eventually eyeing retirement—they often seek financial planning assistance, wanting a professional guide for their financial journey. Less common, however, is for the individual to factor taxes into their financial planning equation, when in fact, taxes are the single largest expense investors incur in their lifetime and can substantially change the trajectory of their financial plan.

Enter Avantax®—the company formed through the combination of venerable tax-focused wealth management firms HD Vest, 1st Global and HKFS—whose objective is enabling financial success by changing the way individuals and families plan and achieve their goals through tax-advantaged solutions.

“Our Financial Professionals view it as unthinkable that someone’s financial planning wouldn’t be rooted in an assessment and understanding of the impact of taxes every step of the way,” says Avantax President, Todd Mackay.

Helping deliver tax-advantaged solutions that provide unique value to clients is the cornerstone of Avantax. The company serves its community of CPAs, tax professionals, and tax-focused advisors by providing tax-advantaged investment solutions, innovative technologies, and tax-inclusive financial planning. In turn, those tax and Financial Professionals leverage their deep, often long-term client relationships to help individuals, families and small businesses more successfully pursue financial security.

“The Avantax Community of CPAs, tax pros and Financial Professionals views taxes as integral to every financial decision along the way. In doing so, they strive to deliver a materially greater value to clients as compared to wealth managers that think about tax strategies as an afterthought or not at all,” adds Mackay.

In addition to ensuring they can serve clients in the most optimal way with the combination of tax and financial planning, a key to attracting CPAs, tax pros and independent Financial Professionals to the Avantax Community is flexible affiliation models, which include:

• An independent model where Financial Professionals can serve their clients’ wealth management needs directly or where tax professionals and CPAs can partner or affiliate with one of our independent Financial Professionals to provide their clients tax-advantaged financial solutions.

• An in-house/employee-based RIA model where CPAs and tax professionals can outsource their clients’ wealth management needs to one of our employee Financial Professionals.

Flexible affiliation models are core to Avantax’s value proposition because they offer powerful ways for Avantax to partner with CPAs and tax professionals of all sizes, from sole practitioners to multi-partner CPA firms.

Aligning financial planning with the client’s trusted tax professional relationship has the potential to deliver significant value to clients, not only in a holistic approach to financial planning, but also to factor in tax impacts on clients’ short-and long-term financial decisions.

Mackay elaborates on Avantax’s competitive advantage with examples:

• While reviewing a couple’s holdings for inheritance planning, an Avantax Financial Professional found that the husband’s accounts reflected a step-up in cost basis, but not the wife’s as it should have been, because they’re in a community property state, leading to a potential tax savings of over $700,000.
• In another instance, when asked to conduct a review of the qualified retirement savings plan of a client’s business (with $3.1 million in assets and 65 participants), an Avantax Financial Professional found that the plan was inefficiently designed with low participant engagement. As a result, the plan was brought into an advisory relationship garnering a 105% increase in plan contributions and $50 million in added wealth management opportunities creating significant tax savings opportunities for the client along the way.

Our firm views it as unthinkable that someone’s financial planning wouldn’t be rooted in an assessment and understanding of the impact of taxes every step of the way

Using the tools provided by Avantax, Financial Professionals may be able to uncover unique solutions and opportunities to help clients more confidently plan for their financial future.

Flexible Affiliation Models

Avantax provides unique and complementary models through which tax and Financial Professionals can affiliate with Avantax. Tax and Financial Professionals benefit from being part of the Avantax Community of like-minded tax/financial pros who collaborate and grow together. They can also enjoy direct access to the company’s senior leadership, who regularly attend local chapter meetings and work with them to help solve complex client issues. By factoring in the impact of taxes on clients’ financial decisions, Avantax Financial Professionals differentiate themselves with the insights, direction, and support they provide to clients.

This level of service unlocks financial planning strategies that were historically reserved for high-net-worth individuals.

“I love the fact that we’re changing an industry for the betterment of individuals and families across the country. Our focus is squarely on changing the way people plan and invest because the potential for us to change peoples’ lives is extraordinary,” Mackay informs.

Disclosure: Avantax Wealth Management® is the holding company for the group of companies providing financial services under the Avantax® name. Securities offered through Avantax Investment Services, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory Services and Avantax Planning Partners. Insurance services offered through licensed agents of Avantax Insurance Agency, Avantax Insurance Services, and Avantax Planning Partners. 3200 Olympus Blvd., Suite 100, Dallas, TX 75019, 972-870-6000. The Avantax family of companies exclusively provide financial products and services through its financial representatives. Although Avantax Wealth Management® does not provide or supervise tax or accounting services, Avantax Financial Professionals may offer these services through their independent outside business.