ar·che·type/ˈärk(ə)ˌtīp/noun"a very typical example of a certain person or thing."
Every taxpayer has a unique approach to how they handle their finances. By understanding your taxpayer archetype you can get the type of support and the type of partner that you need to reduce your tax risk and protect your financial future
For more than 3 decades, our team at Cunningham & Associates has worked with business owners, investors, and high-net-worth individuals across various industries with unique goals.
We have learned in this time that while people have unique personal and professional goals, at the end of the day, they all fall into one of 4 primary taxpayer archetypes that run the gamut from completely hands-off to highly sophisticated, from determined to resigned.
Here are what we call the 4 Taxpayer Archetypes. Which one are you?
The Explorer
You’ve achieved significant success in your career or business. You’re confident and knowledgeable in your field, but when it comes to taxes, you feel completely out of your depth, you know it’s critical to your long term success to expand your knowledge base.
- You Feel Overwhelmed: You’re great at what you do, but the complexity of tax laws and regulations feels overwhelming.
- You Lack Confidence: You have a lot at stake, going it alone or getting bad advice will be costly.
- You’re Anxious: Facing an audit or incurring penalties is a source of anxiety and stress.
- You Feel Isolated: You feel alone in your struggle, some friends and colleagues seem to have a better grasp of tax matters.
What Do You Need?
A trusted advisor who can help navigate the complexities of the tax code and also take the time to understand your unique situation and educate you on your options. You understand that an investment in the right professional help and partnership will pay dividends.
The White Flag
You've surrendered, “it is what it is”. You feel like there is nothing you can do. Just get it over with.
You’re caught in a never-ending cycle of tax preparation and payment. You know taxes are a necessary evil but feel overwhelmed by the complexity of the tax code. You’ve tried to improve your situation in the past for it’s only resulted in small, short-term improvements.
- You’re Overwhelmed: You’ve given up trying to keep up with changes to the tax code and regulations.
- You’re Helpless: You feel like you have little to no control over your tax situation and you’re at the mercy of the IRS.
- Resigned: You’ve come to accept your tax situation, no matter how much you dislike it.
- Frustrated: You're frustrated with the amount of time and effort required when nothing ever seems to improve.
What Do You Need?
You’re looking for proof, not false promises or hope. You want a partner who will be realistic with you, and develop a plan that you can believe in.
The Frustrated Skeptic
You’re disenchanted, disappointed, and irritated by, well, pretty much everything when it comes to your taxes.
Perhaps you’ve been working with someone for years but you’re feeling like their services are not meeting the mark. Why are you feeling this way?
- Lack of Communication: Your questions and concerns are going unanswered, and you feel ignored or unimportant.
- Lack of Proactivity: Who’s looking out for you? Who’s seeking out tax-saving opportunities or suggesting strategies to reduce your tax liability?
- Lack of Expertise: Maybe your team isn’t knowledgeable enough in certain areas of tax law, leading to errors or missed opportunities.
- High Fees: Given your return, the fees are too high for the services provided.
- Lack of Trust: Mistakes, lack of transparency, and poor service in the face of increasing fees leads to a decaying trust.
What Do You Need?
Change, a fresh perspective. You need a partner you can trust and who does the legwork to onboard you, learn your goals, and your history.
The Triathlete
You are multitalented, you have the stamina and energy to learn, but even elite athletes need coaches and trainers to stay in the game.
You are highly engaged in your financial affairs. You’re reasonably up-to-date on tax laws and regulations, invest your own time in managing your financial situation, and actively participate in financial planning decisions.
Despite your knowledge and engagement, you know a specialized partner could get you to the next level:
- You Value Expertise: There are areas of tax law that are complex and nuanced, to fully optimize you need specialized expertise.
- You Seek Objectivity: It is difficult to be objective about your own financial situation, you appreciate the unbiased perspective of a professional.
- Desire Accountability: You want to be held accountable to your financial goals and a partner that will keep you on track.
- You Need Support: As much as you’d like to, you can’t do it all. You can be overwhelmed by the amount of information and decisions involved in managing your finances, and you appreciate having support and perspective.
You need a peer you respect. A financial partner you trust to provide sound advice, be honest and transparent, and act in your best interests. You are willing to pay for quality service, but you have high expectations, you’re looking for a true partnership.
Conclusion
No matter which archetype resonates with you, rest assured that you are not alone.
At Cunningham & Associates, we have dedicated over 30 years to partnering with clients from diverse backgrounds, guiding them through their unique financial journeys. Whether you are an Explorer seeking expert guidance, a White Flag in search of realistic solutions, a Frustrated Skeptic needing a fresh perspective, or a Triathlete aiming to elevate your financial strategy, we are here to support you. Our mission is to help you reduce your taxes and help you keep more of what you earn.
