Are Financial Planning Clients Being Lead Astray?

Abstract:     
We develop a simple methodology for modeling after-tax asset class returns, which can be easily implemented by practitioners. We show that the current approach to asset allocation typically used by financial planners is incomplete. Financial planners must consider post-tax analysis when developing asset allocations and financial plans for their clients.

Keywords: tax, asset allocation, financial planning, private wealth management

JEL Classification: C15, D91, G11, H24

working papers series