Ep 245: Why You Need a Tax Advisor, Not a CPA with Derick Van Ness

Most professionals focus on excelling at their job to earn a salary to take care of their family today and in the future. You know that saving and investing can help you prepare for the future, but most people miss a key chance to focus on optimizing their finances. Yes, you can hire a CPA to help you pay your taxes, but you actually need a tax advisor, not a CPA. What’s the difference? A tax advisor is an accounting professional who specializes in the tax code and uses that knowledge to help taxpayers minimize their tax liability. 

 

Derick Van Ness is a tax advisor and wealth strategist at his firm, Big Life Financial. He focuses on tax strategy and teaching the Money Maximization model, a way to create your own banking system through a specific life insurance policy structure. He explains how this strategy works to help people keep more of what they make and turn their insurance policies into a savings account. 

 

In addition, he shares why the stock market is not ideal for most people who are not Wall Street professionals. According to Derick Van Ness, “people should invest in things you know about, care about, and can control.” He suggests investing in your education first so your position yourself to succeed when investing in assets that fit you know, care about, and control. 

 

In this episode, Derick shares why you need a tax advisor, insights on the tax code, including provisions that are about to expire from the CARES Act, and how to know if it’s time to get a new CPA.

 

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Key Insights from a Tax Advisor and Wealth Strategist 

 

• The road from real estate investor to Wealth Strategist 

 

Building a business is a lot more than finding real estate deals. It’s managing people,  it’s marketing, it’s numbers, it’s taking calculated risks and sometimes getting punched in the nose. 

 

• 2008 brought a real estate avalanche for Derick which made him decide to get into finance

 

• How to find the best investments for you

 

You should invest in things you know about, care about, and things you can control.

 

• A Wealth Strategist is not a financial planner

 

• How to use the Money Maximization Model to create your own banking system

 

• Taking advantage of real estate tax strategies 

 

• Understanding cost segregation 

 

• How to optimize using the new tax codes 

 

• Taking advantage of the Trump Tax Rewrite Provision 199A 

 

• Explaining the benefits Corporate Entity Structuring

 

• The Augusta Rule can enable you to receive tax-free income 

 

• Tips on tax savings for your home office and travel

 

• Why you should be working with a Tax Advisor, and not a CPA

 

CPA’s have no incentive to do extra work on your behalf.

 

• How to determine if you should be looking for a more effective tax preparer

 

• Why 401Ks are not a good investment for real estate investors 

 

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Apparent Failure:

Though the 2008/09 crash devastated my finances, it taught me that I can handle a lot more than I think I can, and how to process stress, and the importance of my health.  

 

Digital Resource:

Evernote

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Most Recommended Book:

Atomic Habits (James Clear)

Quote from Atomic Habits that he lives by: “If you don’t rise to the level of your willpower, you sink to the level of your systems.”

 

Daily Habit:

Taking a few minutes every night before I leave the office to plan the next day.

 

Wish I Knew When I Was Starting Out:

Wealth building and building a business is a marathon, not a sprint.

 

Curious About Right Now:

The economy

 

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The Ridge 

 

Contact Derick 

Big Life Financial (Get a free book)

Big Life Financial YouTube Channel