Independent Financial Advisor Saves $86,000 with Practice Restructuring
It is ironic that I help clients with their financial lives but was overpaying on my own taxes. As an independent financial advisor with my own RIA, I was filing as a sole proprietor and paying maximum self-employment tax. My CPA never once suggested a different structure.
AE Tax Advisors restructured my practice as an S-Corp, immediately cutting my SE tax burden by optimizing the salary-distribution split. They set up a Solo 401k with employer matching that allows me to defer significantly more than I was putting into my old SEP-IRA. The contribution limits are higher and the loan provision gives me access to funds if needed.
They also coordinated tax-loss harvesting across my personal investment portfolio with my overall tax strategy. Most CPAs treat tax-loss harvesting as a standalone activity, but AE Tax integrated it with my business income, retirement contributions, and charitable giving to maximize the net tax benefit. The coordination between my advisory practice and personal finances was seamless.
Total savings: $86,000. For a fellow financial professional, I can say with confidence that AE Tax's tax planning sophistication complements what I do on the investment side perfectly. They think in terms of after-tax returns, which is how financial decisions should be made.
The team was professional, responsive, and understood the RIA business model and compliance requirements. They even knew about the specific SEC and state registration fees that are deductible.
If you are a financial advisor, CPA, or other financial professional who assumes your own tax situation is handled, get a second opinion from AE Tax Advisors. You might be surprised at what you are missing.