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The end result of any professional tax planner visit is the ‘Tax Planning Guide'. This will be your financial blueprint throughout the year and for years to come. It takes your financial and tax goals, objectives, and current resources into consideration. One purpose of this Guide is to put you on track to obtain your tax goals and objectives for the future. It also will help you deal with any unforeseen circumstance as it arrives.
Your Tax Planning Guide will not be developed within one hour. It will take hours, if not days, possibly weeks to develop. All the information your tax planner obtained during your initial visit will be consolidated into this one report. Your tax planner will pull together knowledge from all affected areas (such as IRS tax laws and rules) to arrive at the best results for you. These results are realistic for you to meet, also. That is another purpose of a Tax Planning Guide. It will contain short and long term financial and tax planning goals. These will probably be broken down in 3, 5, and 10-year timeframes.
What is important to know about a Tax Planning Guide is the fact that it is not written in stone. As an example, as your life situation changes throughout the years, your Guide will be updated. A life change situation affecting your tax and financial needs would be: divorce, birth, retirement, job loss, business closing, and incapacitation causing unexpected medical expenses – among others. As these events occur, needless to say, they impact your situation both personally and financially. The beginning savings of $50,000 has suddenly dwindled to $1,000 due to those medical expenses. Your situation has changed and you need to reassess.
Your tax planner will go over your Tax Planning Guide with you. Ask any questions you have regarding it. It is important for your tax planner to know that you totally understand your Tax Planning Guide.