At Leelyn Smith, wealth management and tax planning are fully integrated into how we deliver customized financial planning, which adds value beyond what is possible from these traditional stand-alone services. Partner Kevin Prendergast, CFA®, CFP® and CFO Leelyn Smith Tax Elizabeth Kittner, CPA, CGMA explain what an integrated approach means and how it benefits clients. When wealth and tax professionals are working together side-by-side, clients gain more than convenience—they benefit from better financial outcomes, fewer surprises, and a more personalized, stress-free experience.
Why is the integration of wealth management and tax planning so important?
Kevin: Clients are often left to bridge the gap between a financial advisor managing their assets and a tax professional managing their taxes. This arrangement requires clients to spend time and energy coordinating between their professionals and can result in missed opportunities, unfavorable outcomes, and unnecessary stress.
Elizabeth: Because investment advisors and tax professionals often focus on different time horizons and goals, their strategies can sometimes be at odds with one another. Without coordination, clients can end up with short-sighted decisions or surprising tax outcomes.
Kevin: A truly integrated approach leads to a more complete understanding of a client’s situation, more strategic financial decisions, and more responsive service.
What happens when tax and wealth planning aren’t integrated?
Kevin: We often see investment strategies that aren’t aligned with tax planning and strategy. When these functions aren’t integrated, financial advisors often focus on investment management without fully considering tax impacts. For example, maybe capital gains are realized without setting client expectations, forcing the tax professional to surprise the client with a higher-than-expected tax bill at the end of the year.
Elizabeth: Another common example: clients often receive conflicting advice on converting funds from a traditional IRA or 401(k) to a Roth IRA. A financial advisor may recommend a Roth conversion to take advantage of a client’s low current-year tax bracket and to reduce their future, higher tax liability. Conversely, a tax professional—typically focused on deferring taxes—might advise against the move, favoring immediate tax savings over the potential for long-term advantages. The client is stuck in the middle, trying to make sense of conflicting information without the professional guidance that considers the whole picture.
Kevin: Estimated tax payments are another area where collaboration adds value. Without coordination between the advisor and tax professional, clients are often left to manage quarterly payments on their own. Inaccurate or late payments can lead to penalties.
Elizabeth: Charitable giving is another area where integration can make a big difference. For example, an advisor may recommend using a donor-advised fund to meet a client’s philanthropic goals while donating appreciated assets to reduce capital gains. When tax and wealth advisory professionals work together, we proactively consider important factors like income limits and timing so clients can give with intention, maximize tax benefits, and stay focused on what matters to them.
How is Leelyn Smith’s approach different?
Elizabeth: We really are one team here. At every touchpoint, our recommendations incorporate both investment and tax considerations that are aligned with a client’s long-term goals. Our advice is informed, connected, and future-focused, resulting in better long-term outcomes for our clients.
Kevin: Our clients aren’t caught between conflicting qualified opinions. They work with a single point of contact backed by a suite of professionals. Everyone on the team understands the client’s unique needs and can respond to questions quickly.
How does that compare to other firms?
Kevin: Some financial advisors refer clients to external or in-house tax resources on an ‘as needed’ basis. However, these tax professionals may lack a full awareness of the client’s unique situation. Many other advisors claim to be tax-aware even when their capabilities are limited, often to stay compliant with how their firm is structured. In contrast, Leelyn Smith has in-house tax professionals and advisors actively working in concert to identify opportunities that others might miss.
Elizabeth: Leelyn Smith’s client team members communicate with each other year-round, are continuously cross trained in each other’s disciplines, and even use the same digital tools to serve each client. Client teams have expertise in both financial and tax planning.
Kevin: We have expertise across the entire team. Multiple people can address client requests, enabling them to get answers to their questions quicker than at many firms. We are even trained to review and understand trust and other legal documents, which many advisors won’t (or can’t) touch.
What’s the long-term value of this integrated approach?
Elizabeth: Investment strategy, estate planning, and tax planning are interconnected and rely on effective cash flow management, which is essential, yet often overlooked. Our integrated approach provides clients with a seamless experience with a higher level of service than traditional wealth managers or traditional accounting and tax services.
Kevin: We provide advice that considers a client’s entire financial situation—quarter by quarter, year by year, and for generations to come.
A smarter way to manage your financial life.
Providing comprehensive wealth management, advisory, tax, and accounting services demands a cohesive approach. Leelyn Smith is a purpose-built organization—one designed to help clients pursue their goals efficiently, avoid pitfalls, and seize opportunities along the way. Please contact your Leelyn Smith advisor to learn more about how our integrated approach to tax and wealth management can help you work towards your goals.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax. (157-LPL)
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. (22-LPL)