TAX PLANNING · RESEARCH & INSIGHTThe adviser must add enough value beyond the existing baseline to justify all incremental costs. A financial comparison should separate permanent tax reduction, timing value, implementation cash and non-financial benefits.
Illustrative arithmetic, not a tax forecast:
| Item | Amount | Treatment |
|---|---|---|
| Annual advice | $40,000 | New cost |
| Legal and administration | $15,000 | New cost |
| Existing fee genuinely displaced | $5,000 | Cost offset, only if actually removed |
| Additional permanent tax reduction | $70,000 | Hypothetical benefit after baseline review |
| Simple net benefit | $20,000 | $70,000 − $40,000 − $15,000 + $5,000 |
This example excludes the tax effect of fees, financing, future tax changes and opportunity costs. Count the displaced fee only once. If the old accountant remains engaged at the same price, the offset is zero and net benefit becomes $15,000.
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