One of the biggest values that financial advisors provide is incorporating a tax plan with an investment portfolio. Tax planning is a forward-looking strategy aiming to reduce taxes across many years. Tax preparation, on the other hand, is about minimizing what you owe according to decisions you've already made. Financial advisors generally know how to minimize taxes from investing, but are not qualified for more technical matters.

Investment advisors create synergies with other professionals, such as CPAs or estate attorneys. In consultation with them and with careful planning, advisors can reduce taxes across your whole financial picture, not just your investments. This is especially true for complex situations including equity compensation, business ownership, retirement transitions, or large estates.