Episode summary
Deeper Tax Planning Capabilities To Grow To $600M - Erik Brenner | Financial Advisor Success Ep475
Financial Advisor Success (Kitces)
· · 1 hr 30 min · Hosts: Michael Kitces, Adam Van Deusen · Guests: Erik Brenner
Summary
Erik Brenner describes how Hilltop Wealth and Tax Solutions has grown to roughly $600 million in AUM and about $6 million in combined revenue by integrating tax into the advisory experience instead of treating it as a side offering. The firm runs a separate tax entity under the same brand umbrella, with its own P&L, and uses tax preparation selectively as part of the service package for elite clients while charging other clients directly. Brenner said the goal was never to make tax a loss leader; it had to be a sustainable business that also deepens client relationships.
The firm’s tax planning process is layered. Advisors begin with Holista Plan and Income Lab to model Roth conversions, required minimum distributions, IRMAA, and other retirement tax issues, then the in-house tax team reviews the work, and a separate outside specialist firm, the Walters Institute, is used for especially complex planning cases. Brenner said that structure gives the firm advanced expertise without hiring a full-time specialist.
Growth is driven heavily by in-person dinner seminars aimed at retirement tax concerns. Brenner said those events generate about 44% of new clients, with roughly 40% of attendees booking a meeting and more than half of those second meetings turning into clients. He also said the firm’s all-in marketing cost is under $3,000 per new client.
Key takeaways
- Brenner said Hilltop’s tax business is designed to be profitable on its own, not a loss leader for wealth management.
- The firm charges elite wealth clients for bundled tax prep through the advisory relationship, while other tax clients can pay directly.
- Advisors use Holista Plan and Income Lab for scenario planning before the in-house tax team validates the strategy.
- Hilltop retains the Walters Institute on a $2,500-a-month retainer for advanced tax-planning cases.
- Dinner seminars on retirement tax issues produced about 44% of new clients and the firm says marketing costs are under $3,000 per new client.
Notable quotes
“I really wanted it to be sustainable business on its on its own”
“we offer that with clients and say, "Look, you are an elite client with us. This is part of our service”
“we don't hide behind tax like we don't prepare a a a highle um projection and say okay now you got to go see your CPA”
“about 44% of the new clients came from there”
How the episode opens
Welcome to the Financial Advisor Success Podcast, where you go behind the scenes with financial planner, speaker, and consultant Michael Kitsus to hear stories of how leading financial adviserss navigated the inevitable challenges that arise on the path to success and get insight from leading industry consultants about how to break through to the next level in your advisory business. And now, here's your host, Michael Kitsus.
Welcome everyone. Welcome to the 475th episode of the Financial Advisor Success Podcast. My guest on today's podcast is Eric Brener.
Eric is the CEO of Hilltop Wealth and Tax Solutions, an RAIA based in Mishawaka, Indiana that oversees approximately $600 million in assets under management for 830 client households. What's unique about Eric though is how he has doubled his AUM in the past three years in part by offering a deeper level of tax related services including preparing client tax returns through an associated business and by working with an external firm for expertise on more complicated client tax situations. In this episode, we talk in depth about how Eric decided to partner with a CPA, creating a separate tax business alongside his wealth management firm with both under one brand umbrella.
how Eric takes a threepronged approach to tax planning by having advisers leverage tools such as Holista Plan and Income Lab on the wealth management side using the CPAs from the tax business to review proposed planning strategies and working with an outsource provider for expertise on more complex tax planning issues and how Eric offers tax return preparation not as a loss leader for his wealth planning services but rather as a profitable line of business in its own right. We also talk about how Eric's firm brings in almost half of its new clients through in-person dinner seminars where the team demonstrates its expertise in the key issues facing their ideal clients, such as reducing their tax bill in retirement.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- tax planning
- tax preparation
- client value
- revenue growth
- retirement tax strategies
Companies and tickers mentioned
- GOOGL
- GOOG
- Hilltop Wealth and Tax Solutions
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Financial Advisor Success (Kitces), this episode and its artwork belong to Michael Kitces. Octagon is not affiliated with the show; this page is an independent summary.
