INVESTORS FAIL WHEN IT COMES TO TAX PLANNING, SAYS ROCKVILLE-BASED RESEARCH FINANCIAL STRATEGIES

ROCKVILLE, MD, March 23, 2007—Many financial advisors and brokers fail their clients when it comes to adopting tax minimization strategies as part of an overall investment plan, according to Research Financial Strategies (RFS)* .

“I ask prospective clients, ‘Were you happy with your 1099 this year?’” says John F. Reutemann, Jr., CLU, CFP®, referring to taxable distributions from pensions, annuities, profit-sharing and retirement plans, IRAs, and insurance contracts.

“Tax minimization requires a thorough understanding of complex investment products, compliance with state and federal regulations, and in many cases, a load of paperwork. Frankly, many brokers and advisors can’t be bothered,” Reutemann said.

RFS has developed “The Four Tax Positions of Money” model to tax minimization strategies for clients. The concept is analogous to traditional asset allocation models used to minimize investment risk.

“We recommend tax strategies and investment vehicles that are appropriate to the individual client,” said Valerie L. Alexander, CPA, a member of the RFS team. “We don’t push branded products or one-size-fits-all strategies.” Valerie was a senior tax manager with American Express Tax and Business Services where she completed her 20 plus years of experience in public accounting.
Rockville-based RFS is one of the consistently top producing LPL offices in the country and has been providing wealth planning, tax planning, and estate planning for generations of clients and their businesses since 1991.
For more information about RFS, visit website at www.rfsadvisors.com or call RFS at (301) 294-7500.

*Securities offered through Linsco/Private Ledger (LPL), Member NASD/SIPC