Podcast Summary: AFO|Wealth Management Forward – "Holistiplan: The Importance of Tax Planning"
Episode Details
- Podcast: AFO|Wealth Management Forward
- Episode Title: Holistiplan: The Importance of Tax Planning
- Release Date: October 11, 2021
- Hosts: Rory Henry and Rob Santos
- Guest: Chris Field, Chief Growth Officer at HolistaPlan
Introduction to HolistaPlan and Guest Background
Rory Henry introduces the episode by welcoming Chris Field, the Chief Revenue Officer at HolistaPlan. Chris shares his diverse background, including over a decade of nonprofit work combating child trafficking in Ghana, business consulting, and running a social media company that empowered over a hundred small to medium-sized businesses. His transition to HolistaPlan came through his experience in sales, marketing, and strategic partnerships, eventually rising from Director of Partnerships to Chief Growth Officer.
Chris Field [02:46]:
"I've done a lot of business consulting, a lot of nonprofit consulting, a lot of sales and marketing... I felt lucky every day that I get to help advisors as they help their clients with tax planning."
The Genesis and Mission of HolistaPlan
HolistaPlan was launched two years prior by two Certified Financial Planners (CFPs) who managed Registered Investment Advisors (RIAs) in Texas and Virginia. The primary goal was to streamline tax planning, a service highly valued by clients but historically time-consuming and inefficient.
Chris Field explains that the founders utilized machine learning to automate the analysis of complex tax returns, transforming them into concise, actionable reports. This innovation allows financial advisors and CPAs to identify substantial tax planning opportunities without the previously required hours of manual analysis.
Chris Field [02:50]:
"They used machine learning to do the heavy lifting of reading this tax return and aggregating it into a simple 2, 3 page report that both summarized the gargantuan tax return and also identified tax planning opportunities."
The Importance of Holistic Tax Planning
The discussion emphasizes the necessity of integrating tax planning into comprehensive financial advising. Chris Field highlights that every financial decision—be it investment management, estate planning, or educational savings—has tax implications. By leveraging HolistaPlan, advisors can offer proactive, personalized tax strategies that enhance client relationships and add substantial value.
Chris Field [06:51]:
"Every single piece of anything we're doing around finances is going to touch taxes."
He underscores that even clients with straightforward financial situations can benefit from tax planning by uncovering opportunities they might not be aware of, thereby reinforcing the advisor's role as a trusted partner in their financial journey.
Chris Field [09:40]:
"Worst case scenario, you get to tell a client they're not paying too much in taxes. That's the worst case scenario."
Practical Applications and Use Cases
HolistaPlan offers a variety of tools that simplify tax planning for both advisors and their clients:
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Tax Return Summarization: Converts extensive tax returns (40-50 pages) into a 2-3 page digestible report, highlighting key figures and potential tax-saving strategies.
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Scenario Analysis: Allows advisors to model different financial scenarios (e.g., moving states, Roth conversions) and visualize their tax implications in real-time.
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Client Deliverables: Generates professional reports branded with the advisor's logo, facilitating meaningful conversations and demonstrating value beyond traditional tax preparation.
Chris Field [09:40:
"It's a great way to demystify a tax return. And most people are not going to read through their 40, 50 page tax return. But if you have a three page deliverable... it's a great opportunity."
During the COVID-19 pandemic, HolistaPlan proved particularly useful for advisors assisting clients who were relocating, offering precise calculations on how such moves would affect their tax obligations.
Competitive Advantage and Market Position
Chris Field asserts that HolistaPlan stands out in the market due to its user-friendly interface and scalability. Despite being a relatively new entrant, HolistaPlan boasts twice the market share of its closest competitor, a testament to its effectiveness and adoption rate among financial advisors.
Chris Field [25:12]:
"In the latest T3Tech survey, where they surveyed financial advisors, we had twice the market share of the closest competitor."
This rapid growth is attributed to HolistaPlan’s ability to handle the majority of clients efficiently, allowing advisors to focus on personalized service without getting bogged down by complex software.
Adoption Trends and Future Growth
The conversation shifts to the low current market penetration of tax planning software, presenting a significant opportunity for growth. Chris Field predicts that in the next decade, tax planning will become an indispensable part of financial advising. Advisors who integrate tools like HolistaPlan will lead the market, while those who ignore this trend risk falling behind.
Chris Field [16:41]:
"There's still a chance for people to be leaders in this segment instead of followers."
He emphasizes that the complexity of the tax code is unlikely to decrease, making proactive tax planning essential for comprehensive financial services.
Cybersecurity and Data Protection
Addressing concerns about data security, Chris Field details HolistaPlan’s robust cybersecurity measures. These include encryption, backups, penetration testing, and optional features like redacting sensitive information and auto-deleting tax returns after processing.
Chris Field [30:34]:
"All the best practices around how everything's encrypted and backed up, and we do penetration testing to make sure you can't get into the soft."
These precautions ensure that both advisors and their clients can trust HolistaPlan with sensitive financial data.
Transforming CPA Practices
HolistaPlan enables CPAs to transition from being retrospective service providers to proactive financial strategists. By integrating tax planning into their offerings, CPAs can create additional revenue streams, reduce seasonality-related stress, and enhance client satisfaction throughout the year.
Chris Field [34:56]:
"It's moving from a historian to a forecaster to looking into the future."
Advisors are encouraged to utilize HolistaPlan to identify potential financial advisory clients within their existing tax return data, thereby expanding their client base with minimal additional effort.
Conclusion and Call to Action
In wrapping up, Chris Field invites listeners to experience HolistaPlan firsthand through a free seven-day trial, allowing them to upload sample tax returns and explore the software’s capabilities.
Chris Field [36:14]:
"Upload your own return and see what kind of nuggets the software is going to give you... reimagining what your practice would look like if this became a cornerstone of what you do."
He highlights ongoing support and continuous improvements, such as scenario analyses for new tax laws, ensuring that advisors remain equipped to handle evolving financial landscapes.
Chris Field [37:24]:
"We're committed to helping those conversations happen between the advisor and the client and just deepening that relationship."
Rory Henry and Rob Santos express their appreciation for Chris’s insights, emphasizing the transformative potential of HolistaPlan for financial advisors and CPAs alike.
Key Takeaways
- Proactive Tax Planning: Integrating forward-looking tax strategies is crucial for comprehensive financial advising.
- Efficiency and Scalability: HolistaPlan streamlines tax analysis, allowing advisors to serve more clients effectively.
- Market Opportunity: Low current adoption rates present significant growth potential for early adopters.
- Data Security: Robust cybersecurity measures ensure the safe handling of sensitive financial information.
- Competitive Edge: Advisors using HolistaPlan differentiate themselves by offering deeper, more valuable client interactions.
- Future-Proofing Practices: As tax complexity grows, tools like HolistaPlan will become indispensable in the financial advisory landscape.
Contact Information
For more information or to start a free trial, visit holistaplan.com. Chris Field encourages advisors to explore the software and experience its benefits firsthand, promising enhanced client relationships and streamlined financial planning.
End of Summary