Why Wipfli?
Wipfli’s asset management consultants deliver the answers and insights you need to make quick, confident decisions.
With clients ranging from private funds to multimillion-dollar public and private offerings, we provide a range of solutions to help firms define and achieve their objectives. We understand the asset management industry, with a wide range of experience that gives us first-hand knowledge of the complex regulations and requirements you face.
Wipfli’s outsourced services provide you with tailored solutions for your back-office challenges, including compliance, accounting, operations, HR and technology. Let us take on the areas that cause you stress so that you can concentrate on value-added work.
An effective tax strategy that balances opportunity and compliance is crucial for your growth. Wipfli’s tax team takes a proactive approach to our services, helping you navigate complex tax laws and apply strategies that reduce your organization’s tax burden.
Wipfli’s assurance services provide you with both assurance and actionable recommendations to enhance your organization. Our experienced professionals deliver comprehensive, industry-specific audit services, including custody audits, designed to help you grow and perform optimally.
Drive digital success with Wipfli. Whether you want to gain efficiencies, leverage data or find new ways to connect with clients, Wipfli can help you adopt a strategy and technology infrastructure that meet your firm’s needs.
Wipfli’s organizational performance services can help you unlock the potential of your strategy, operations and people. We use proven processes and tailored solutions to help you create a high-performing organization and achieve sustainable growth.
Wipfli can help your firm navigate risk as you grow with our risk advisory services. From governance and regulatory compliance — including Custody Rule 206(4)-2 consulting and testing — to operational and technology risks, we can help you apply practical strategies and proven solutions to enhance your risk mitigation efforts.
Get end-to-end support for your transaction with Wipfli. Our team is dedicated to your strategic and transactional needs with buy-side, sell-side, business valuation, tax and investment banking services. We’re ready to apply our industry knowledge and experience to help you achieve a successful outcome.
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Insights and resources
PODCAST
Bank on Wipfli podcast: How to reduce your tax burden when selling an RIA firm
In this episode of Bank on Wipfli, host Robert Zondag sits down with Dan Pastron and Cory Vargo, tax partners at Wipfli, to discuss how registered investment advisors can structure the sale of their firm to maximize after-tax value. Together, they explore critical tax and structuring considerations for RIA transactions, including: The impact of legal entity structure — asset vs. stock sales and why most RIA deals are treated as asset sales for tax purposes. Key tax planning considerations around rollover equity, including how to preserve tax deferral and avoid unexpected liquidity issues. Challenges related to allocating proceeds among shareholders at different career stages and how entity structure can limit or enable flexibility. The importance of early planning, state tax considerations and involving experienced advisors well before taking a firm to market. Learn more Why FP&A is essential for RIAs in a changing industry Succession planning’s role in your financial institution Succession planning of sell-side prep — or both? Listen on Apple Podcast Listen on Spotify
ARTICLE
Smart tax planning for sole proprietors and real estate investors
Every dollar you fail to plan for is a dollar you hand over unnecessarily. Whether you run a business, own rental property — or both — the difference between a reactive taxpayer and a proactive one is measured in thousands of dollars each year. Below, explore proven strategies that could potentially start saving you money immediately. Business income and expense planning For sole proprietors, here are some tax optimization actions to manage cash flow, avoid penalties and make smarter, timing-based financial decisions. Separate your business and personal finances — without exception If you are still running business transactions through personal accounts, stop. Open a dedicated business checking account and credit card ASAP. This is not just good bookkeeping — it is your first line of defense in an audit. Commingled finances invite scrutiny and undermine the credibility of every deduction you claim. Track deductible expenses in real time Most business owners wait until tax season to reconstruct their expenses. This is the wrong approach. Use accounting software — QuickBooks, Wave or FreshBooks — to categorize expenses as they occur. The deductions available to you are broad: office rent, utilities, business-related travel, meals (50% deductible), professional development, software subscriptions, marketing and employee wages. These deductions do not happen automatically. You must document them consistently. Keep receipts, maintain a mileage log if you use a personal vehicle for business and note the business purpose for every meal or entertainment expense. Vague records do not hold up — not with the IRS and not in a well-run business. Structure your entity to minimize self-employment taxes One of the most powerful tools for small business owners is the S corporation election. By electing S corp status, you split your income between a W-2 salary and a shareholder distribution. Only the salary portion is subject to self-employment taxes (15.3%). Distributions are not. Executed correctly, this structure can save a business owner $5,000 to $20,000 or more annually in payroll taxes. The critical requirement is setting a “reasonable” salary for your role — the IRS scrutinizes artificially low compensation — so work with a qualified advisor to land in the right range. Maximize retirement contributions A Solo 401(k) or SEP-IRA is one of the most underutilized tax reduction tools available to self-employed individuals and small business owners. A Solo 401(k) allows contributions of up to $72,000 per year (2026 limits), combining both employee and employer contributions. Every dollar contributed reduces your taxable income dollar for dollar. Failing to maximize this is a double loss — you overpay taxes today while under-saving for the future. Plan quarterly estimated tax payments Business income is not withheld automatically. Missing quarterly estimated payments triggers underpayment penalties on top of your tax bill. Pay on the IRS schedule — April, June, September and January — and base your estimates on either 100% of last year’s tax liability or 90% of the current year’s projected liability, whichever is lower is the general guideline. Time your income and expenses deliberately If you are in a high-income year, accelerate deductible expenses before December 31, purchase needed equipment or make year-end charitable contributions. If next year’s income is projected to be higher, consider deferring invoices where your contracts allow. Timing is a legal and often overlooked planning lever that pays dividends for those who use it. Income and expense planning for real estate investors and landlords To maximize your real estate tax advantages, take these strategic steps to protect your assets and increase your financial flexibility. Use depreciation — and use it aggressively Depreciation is the single greatest tax advantage in real estate. The IRS allows you to deduct the cost of a residential rental property over 27.5 years and commercial property over 39 years — even as the property appreciates in market value. This creates a paper loss that offsets rental income and, in some cases, other income as well. Take this further with a cost segregation study . Rather than depreciating the entire building on a straight-line schedule, a cost segregation analysis reclassifies components — flooring, fixtures, landscaping, electrical systems — into five, seven or 15-year property categories, dramatically front-loading your deductions. On a $1 million property, a cost segregation study can generate $100,000 or more in first-year deductions. The study pays for itself many times over. Know every deductible expense you are entitled to Landlords can deduct mortgage interest, property taxes, insurance, repairs and maintenance, property management fees, professional services, advertising, travel to the property and utilities you pay on behalf of tenants. Capital improvements — a new roof, HVAC system or structural addition — must be depreciated over time, while repairs and maintenance are expensed in the year incurred. The distinction between the two is meaningful, and your records should reflect it clearly. Qualify as a real estate professional if you can The IRS restricts passive activity loss deductions for most investors. However, if you spend more than 750 hours per year on real estate activities and more than half of your total working time is dedicated to real estate, you qualify as a real estate professional . This status allows rental losses to offset ordinary income without limitation — a potentially transformational tax benefit for full-time investors or landlords whose spouse qualifies. For those who cannot meet this threshold, the $25,000 passive loss allowance phases out between $100,000 and $150,000 of adjusted gross income. Knowing where you fall in that range is essential for annual planning. Defer capital gains with a 1031 exchange When you sell an investment property, capital gains taxes can consume 20% or more of your profit. A 1031 exchange allows you to defer those taxes entirely by rolling the proceeds into a like-kind replacement property. The timelines are strict — 45 days to identify a replacement and 180 days to close — which means planning must begin before the sale, not after the closing call. Hold properties in the right legal structure Owning property in your personal name exposes you to personal liability. Consider holding each property — or a portfolio — within a Limited Liability Company (LLC). Beyond liability protection, LLCs offer flexibility in how income is reported and can simplify estate planning. Multimember LLCs taxed as partnerships allow for special allocations of income and losses among partners, creating additional planning opportunities that a properly structured entity can unlock. Read more ASC 740 explained: A short guide to the accounting standard for income tax provisions Marketplace facilitator tax: Rules, compliance requirements and considerations for businesses Gross receipts tax: What it is, how it works and how to calculate it
ARTICLE
Wealth and asset management leaders call cybersecurity a major threat. How should they tackle it?
Leaders at wealth and asset management firms increasingly view cybersecurity as a top priority. In a recent survey of 249 industry executives, 68% of asset managers and 62% of wealth managers surveyed by Wipfli stated that cybersecurity is a major concern for their businesses in 2026. But how should firms and registered investment advisors (RIAs) actually take action to bolster their cybersecurity defenses? Keep reading to learn more about key security challenges facing the wealth and asset management sector, plus specific tools like tabletop exercises that firms can use to reduce their risk and respond more effectively to attacks. What are the major cybersecurity risks that wealth and asset management firms are facing today? In addition to the ever-present possibility of a cyberattack or data breach, wealth and asset management firms face an array of related risks. These include action from government regulators at the SEC, fraud and reputational damages resulting from a successful cyberattack. Here’s some more insight into the major cybersecurity and downstream risks for the wealth and asset management sector: Large-scale cyberattack: So far, the wealth and asset management industry has avoided any headline-grabbing cyberattacks. Still, the threat remains real, and firms also continue to be exposed to lower-level attacks that can cause harm and financial damage without breaching core systems . Reputational damage: Wealth and asset management is built on reputation. A significant attack carries major reputational risk, especially for smaller or mid-sized firms that have built their business on relationships rather than on a national profile that’s big enough to survive a breach. Individual payment fraud: Fraud, specifically around payouts, is a client risk area that firms should pay close attention to. For example, a client selling an investment could be tricked into sending the funds to a fraudster’s account rather than their own bank account. Regulatory action: SEC regulators overseeing registered investment advisors have been showing increasing concern over cybersecurity in the wealth and asset management sector, with regulators cracking down during examinations. Executives want to avoid trouble here, although some report frustrations with current SEC cybersecurity standards. How do wealth and asset management firms benefit from a stronger cybersecurity posture? Improved cybersecurity helps wealth and asset managers mitigate financial damages and potential liability, as well as avoid reputational harm. Firms also benefit from the ability to qualify for cybersecurity insurance and see other positive downstream effects from security planning like tabletop exercises. Mitigate financial damages and liability No cybersecurity system is foolproof. However, keeping your defenses up to date can significantly mitigate your risks by making you both less vulnerable to an attack and better able to quickly respond should a breach occur. This can help limit the financial damages you suffer during even a successful attack. Plus, stronger defenses and a faster response time can also help reduce your exposure to liability. Avoid reputational harm Most wealth advisors don’t have huge brands, so word-of-mouth reputation is a priceless asset. And nobody wants to be the firm that’s got everyone buzzing over client data that’s turned up on the dark web. Mid-sized firms in the $1 to $5 billion range face an especially high risk of being targeted for an attack, because they have enough assets to be a tempting target but typically lack the most advanced cybersecurity tools deployed by their larger competitors. Leaders at these firms should consider cyber an essential investment in their reputations — and consequently, in their growth opportunities. Qualify for cybersecurity insurance In the event of a data breach, cybersecurity insurance can help you significantly reduce your losses. But unless your business already has a strong cybersecurity posture, insurers won’t write you a policy. Incident response preparation Tabletop exercises and other scenario planning activities are a key aspect of bolstering your cybersecurity defenses. But these don’t just pay off by helping you feel more prepared to quickly respond to a data breach, but by helping your team feel more confident in responding to any number of crisis scenarios that could occur. Tabletop exercises: a key cybersecurity tool for wealth and asset management firms A tabletop exercise helps you and your team plan and practice how you will respond to a cybersecurity attack or critical incident. During the tabletop, you’ll be able to game out various scenarios to figure out what to do in the event of each. For example, let’s consider two different variations on a data breach. In the first, you accidentally expose sensitive client information in an email to a third party, while the second is a significant breach of your systems by a hacker. Both of these are cybersecurity incidents, but you would need to respond to each scenario quite differently. During a tabletop exercise, you would work through planning considerations like: How do you evaluate the impact of an incident? Who gets notified and when? Who handles the security response? How do you manage public relations and external comms? You want to have answers to all of these questions and more before you’re facing an incident, rather than trying to make up a response plan in the heat of the moment. And crucially, this planning process will also help prepare you for other incidents that may have nothing to do with cybersecurity but would still require an urgent response from your business. How should wealth and asset management executives take action to improve their cybersecurity defenses? CEOs, CFOs and chief compliance officers at wealth and asset management firms need to take an active role in bolstering their companies’ cyber defenses . Here are four key steps to take: 1. Reframe how you think about cyber It’s easy to view cyber as a cost center. But given the danger an attack poses to your reputation, it’s actually an investment in growth. If nothing comes up when potential clients google your firm and “cyberattack”, you’ll be better positioned to take on new business. 2. Leverage advisory support The vast majority of wealth management firms don’t have a large in-house IT team, let alone deep cybersecurity expertise. So lean on an advisory firm for help. Your advisor can help you understand the current threat environment, recommend improvements and work with your team to upgrade your systems, policies and processes to leave you more protected and better able to respond to an incident. Look for an advisor that knows both cybersecurity and the financial services sector, as you’ll need to navigate specific challenges like SEC compliance requirements. 3. Test your current cyber defenses to identify areas for improvement Work with your advisor to do penetration testing, social engineering tests, ransomware attack simulations and other exercises to find gaps or vulnerabilities in your current defenses. This process should also include a review of your policies and processes around data governance, access and other potential problem areas in your daily operations. Your advisor will be able to make specific recommendations and help you create a roadmap to implement any necessary changes. 4. Implement improvements and training After assessing your existing security gaps and creating a cybersecurity improvement roadmap, start putting it into action. Your advisor can help you upgrade your systems when needed, which may include elements like transitioning from in-house servers to cloud-based data storage. Training and policy changes are also key here. You’ll want to conduct tabletop exercises to train your team and develop your incident response plan. This should be part of a broader effort to update your policies and procedures to help ensure a stronger overall security posture. 2026 industry research reports: Learn how wealth and asset management is adapting to today’s challenges How are wealth and asset management leaders evolving to address the needs of today’s market? Wipfli spoke with 249 executives to understand the key challenges firms face in areas like growth, technology and risk management. Read the full wealth and asset management industry reports: Wealth management industry report Asset management industry report Read more Cybersecurity is a significant financial risk The 3 pillars of smarter cybersecurity program management Navigating regulatory challenges: essential tips for registered investment advisors
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