With the election fast approaching, speculation is rising about its potential impact. One area that's getting a lot of attention is taxes. 

While taxes are usually a topic of conversation during every campaign season, most of the Tax Cuts and Jobs Act (TCJA) will expire at the end of next year, making the issue a higher priority this time around. Therefore, regardless of how the political landscape shakes out, tax policy will be the source of vigorous debate in 2025.

Higher costs, less access 

The last time lawmakers revamped the tax code, they stripped out a provision that made investment advisory and financial planning fees deductible. Unfortunately, that decision has resulted in higher costs and less access to critical financial advice for many hard-working Main Street Americans. 

With the country in the midst of a retirement savings crisis, Congress should do everything possible to incentivize saving and investing – and making advisory and financial planning fees deductible once again is an excellent way to achieve that goal. 

Indeed, no matter the cause or severity of a retiree's savings challenges, it can be difficult for anyone to preserve and grow their nest egg without professional guidance. Yet, the TCJA made that guidance less affordable for those who need it most. 

Safeguarding Main Street against the perils of market volatility

In addition to helping to offset the fundamental economic challenges currently facing many retirees, access to financial advice has always been critical to helping Main Street investors avoid costly, emotionally driven investment mistakes. This has become particularly true in recent years, thanks to the emergence of online investment platforms and mobile applications. 

As convenient as they can be, they make it easier for inexperienced traders to make split-second investing decisions, which can produce devastating results without the benefit of an advisor's guidance. 

For example, consider the extreme volatility that swept over U.S. markets almost immediately following the COVID-19-related shutdowns. Millions of Main Street investors began to panic because their investment portfolios were suffering heavy losses. Some even liquidated their holdings altogether.

At the time, it was hard to blame them. In the earliest stages of the pandemic, it was easy to get spooked by what seemed like a rapidly deteriorating economy and be uneasy about how best to navigate a plunging market. 

Of course, the volatility was short-lived. The equities markets didn't merely recover losses; they delivered outsized returns. Yet, millions of investors took the brunt of the losses without enjoying the subsequent gains. 

Many could have avoided that fate if they had access to an experienced, professional financial advisor who could help them overcome their fears, set goals and develop a financial plan.

Bipartisan issue 

To be clear, helping Americans plan for the future and achieve their goals is not a partisan issue. Families in red states want financial advice that is accessible and affordable. Families in blue states want the same thing. 

Because of that, we will do everything possible to convince lawmakers to make investment advisory fees tax deductible. And we've already begun to lay the groundwork. 

During our recent Capitol Hill Day event, FSI members met with legislators and explained the issue's importance. We're also leading a coalition that sent a letter to Congress underscoring the need for lawmakers to act.  

Ultimately, however, getting results will require a broader effort. Our members will continue to advocate relentlessly for this cause, but going forward, we'll also need the support of the entire independent financial services industry.