Ed Slott's top 5 ways to add tax, retirement planning value in 2024 - Financial Planning

Many advisors decline to characterize themselves tax planners, acting almost as if the service was their "kryptonite," said Ed Slott, president and founder of retirement planning outfit Ed Slott and Company. But they're doing themselves a huge disservice, he said.

"If you touch an IRA, you're doing tax planning. If you advise on an IRA contribution, you're doing tax planning. If you advise on a Roth conversion, you're doing tax planning. If you advise beneficiaries on inherited rules, which are so complicated, you're doing tax planning.

"So either admit it or get out of the business, because that's where all the money is, and that's where all the value is, because it's so complicated," Slott said.

Slott, who described himself as a "recovering accountant," took the stage at the Technology Tools for Today (T3) Conference in Las Vegas on Jan. 22 to deliver an hourlong rapid-fire crash course in tax planning for 2024.

"Here's what I mean," Slott said. "There's a big difference between tax preparation and tax planning. … Most CPAs — tax preparers, not planners — are really just history teachers. They tell you what's already happened. Where's the value in that? Obviously, I can tell you what the value of that is: zero. How do I know? Because I just watched all the football games last week, and every ad was 'Do your taxes for free.'"

Between lighthearted jokes about bad commercial flights and the Sports Illustrated swimsuit edition, Slott exhorted the audience to deepen their education and experience so they could become "rockstar" tax planners, not preparers, for their clients.

"Retirement money is like an eggshell: You break it, it's over — you don't get a lot of second chances," he said. "And the rules are very complex."

Slott cited a recent case in which he said the advisors helping a wealthy client "made every possible mistake that could be made," including blowing the 60-day rollover rule, the once-per-year rollover rule and the same property rule. The errors cost the estate, that of actor James Caan, more than a million dollars, he said.

"Taxes will be the single biggest factor that separates people from their retirement dreams. And that's why they're relying on you."

The former Financial Planning contributor identified five top areas of opportunity for planners in 2024. Scroll down to learn more.

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