Posts on teaching teens about financial planning for retirement

Signs You Need an Accounting Service for Your Business

Wed, 22 May 2024 08:48:16 +0000

Running a successful business involves constantly managing multiple facets, and accounting is undeniably one of the most critical. Proper accounting ensures your financial health, aids in decision-making, and maintains compliance with legal standards. However, recognizing when it is time to bring in a professional accounting service can be challenging. Here are some key signs that suggest you need an accounting service for your business.

1. Difficulty in Managing Finances

As your business grows, so does the complexity of your finances. If you find it challenging to keep track of revenues, expenses, and profits, it might be time to seek professional help. An accounting service can streamline these processes, ensuring accurate and up-to-date financial records.

2. Constant Errors in Financial Records

Errors in your financial records can have severe consequences, from misguided business decisions to potential legal ramifications. If you frequently encounter mistakes in your financial documentation, it's a clear indication that you need professional accounting assistance. A skilled accountant can help eliminate these errors, providing you with precise and reliable financial data.

3. Time Constraints

As a business owner, your time is invaluable. If you are spending an excessive amount of time on accounting tasks at the expense of other critical business activities, this imbalance can hinder growth and productivity. An accounting service can take over financial planning, bookkeeping, and reporting, freeing up your time to focus on core business aspects.

4. Compliance and Taxation Issues

Navigating through taxation laws and ensuring compliance with financial regulations can be daunting, especially if you lack expertise in this area. Missing deadlines, filing incorrect tax returns, or failing to comply with legal standards can result in penalties and legal issues. An accounting service ensures that your business adheres to all relevant laws and regulations, keeping you compliant and penalty-free.

5. Inadequate Financial Reporting

Accurate financial reporting is essential for making informed business decisions. If your financial reports are inconsistent, incomplete, or difficult to understand, it might be time to hire a professional. Accountants can provide detailed and comprehensible reports that offer insights into your business performance, helping you make well-founded strategic decisions.

6. Planning and Forecasting Challenges

Strategic planning and financial forecasting are critical for long-term business success. Accounting services can provide the expertise you need if you struggle with planning your financial future or forecasting your business's financial performance. Accountants can analyze trends, project future financial scenarios, and assist with creating robust business plans.

7. Preparing for Growth

Managing finances becomes even more complex if your business is preparing to scale up, whether through investment, mergers, or expanding into new markets. An accounting service can help you prepare for growth by ensuring that your financial systems can handle increased transactions and by offering strategic advice for expansion.

Contact a local accountant to learn more.

How A Business Finance Consultant Help You Improve Cash Flow While Reducing Costs

Tue, 15 Aug 2023 13:52:44 +0000

While running your business, you might encounter various challenges in managing your finances, such as cash flow, budgeting, taxes, or debt. You may have also wondered how to grow your business, access funding, or plan for the future. These are common issues that many companies encounter, and they can be overwhelming and complex to deal with on your own. However, hiring a business finance expert can bring outside talent into your company.

Developing a Greater Understanding of Your Business

An analyst can assist in various tasks such as:

Improving cash flow
Reducing costs
Boosting profits

A finance consultant can help you identify areas where you can cut costs, such as reducing unnecessary expenses and improving efficiency. They can also analyze your financial statements to identify areas where you can increase revenue, such as introducing new products or services or improving your marketing strategy.

Secure Other Sources of Funding

By working with a business finance consultant, you can gain access to expertise that can assist you in:

Finding and securing loans or grants
Attracting investors
Monitoring and evaluating financial performance

They can help you identify the best funding options for your business, whether through traditional bank loans, government grants, or private investment. They can also help you navigate the complex application process and ensure you're putting your best foot forward when presenting your business to potential investors.

A business finance consultant can help you develop a solid financial plan that makes sense for your business. This includes helping you set realistic financial goals, creating a budget that considers all your expenses and revenue streams, and identifying potential areas of growth and expansion.

You may also need help from a consultant for several major events. For example, a significant opportunity might emerge in the economy, and the consultant can assist you in taking advantage of it. You might need to prepare for a substantial financial risk that arises in the economy. Finally, you might need to plan for your business's succession, exit, or sale.

How a Consultant Can Help Your Company

A business finance consultant with qualifications and credentials in accounting, finance, or business administration can benefit your business by saving you time and money by handling complex and tedious financial management tasks. They will support you in achieving your short-term and long-term goals and growing your business.

Getting In Contact with a Business Finance Consultant

When you call a business finance consultancy firm, find out what services you offer and how they match your needs. Explain your exact concerns, and through the conversation, you can both determine if you are a good fit. Otherwise, the consultant may recommend you to someone who can better help you.

A business finance consultant can be a valuable partner for your business, helping you overcome financial challenges and achieve your goals. For more information, contact a business finance consultant near you.

Planning Bankruptcy? How A Financial Planner Helps At All Stages

Wed, 18 Jan 2023 12:07:21 +0000

Are you considering or even in the early stages of declaring bankruptcy? Bankruptcy is an important tool to protect your finances, your mental and emotional health, and your future. But if you're at this point, should you also spend some money on financial planning? The answer may be yes. Here are a few ways they can help you before, during, and after a bankruptcy filing.

Before Bankruptcy

Bankruptcy should be a last resort for most Americans. If you've tried to get a handle on your debt, income, or spending issues on your own, try seeking out a financial professional to help. A financial planning consultant will work with you to identify all your debt and develop a payoff plan, figure out a workable budget, or prepare better for emergencies. You may even be able to avoid bankruptcy.

If you do decide to file for bankruptcy protection, some of your assets will be exempt from liquidation. This includes things like retirement accounts, your primary vehicle, and even money needed for expenses in the near future. How can you maximize these? Should you boost retirement contributions or better invest them? Can you increase savings to use the entire exemption of cash? Be sure to target your particular needs.

During Bankruptcy

If you have to file for bankruptcy, you can still use a financial professional to make it successful. Debtors who file Chapter 13—or repayment plan—bankruptcy, need to live on a strict budget throughout the repayment term. Your financial planner can help you stay the course. They will also offer guidance on debts that are non-dischargeable, like student loans or support.

Chapter 7 filers can have as little as a few months to prepare for their post-bankruptcy future. So don't wait until you exit the bankruptcy to start planning. The best path to success is to start off on the right foot. Map out your new financial plan with a professional as you wait for your bankruptcy to be finalized.

After Bankruptcy

When you exit bankruptcy, you're ready to start moving forward with your life. Most people's number one goal at this point is to avoid falling back into debt or spending traps. The main goal of any financial planner is to design a more successful financial future, so this is right up their alley.

Your planner will help with retirement savings planning, budgeting, setting up sinking and emergency funds, using credit wisely, and smart investing. And they'll be there for you over as long a period as you need them.

Where to Start

No matter how close or how far you are from actually filing for bankruptcy, a financial planning consultation can help you. Learn more by making an appointment today. Whatever your future holds, they will help you make sure it's brighter.

Contact a local financial planning practice to learn more.

Planning For Extended Travel? 5 Financial Planning Steps To Take

Wed, 07 Sep 2022 21:03:59 +0000

Are you planning to leave home to travel for an extended period? Whether it's a long stay with the grandkids or your gap year tour, preparation is key to having a great time and keeping your life in order at the same time. What financial moves can you make in advance to help avoid problems both now and in the future? Here are a few steps to take.

1. Build Up Savings

For most people, the best way to fund personal travel is to build up a dedicated travel savings beforehand. This may be a long project, and it can be difficult when you have many competing priorities. A financial planner is your best resource to help identify financial goals and figure out how to fund them.

2. Decide How to Pay

Setting aside money is an important step, but how should you withdraw and use it for expenses? Should you use cash, a debit card, credit cards, or other payment options? Using cash or debit cards, for example, can open you up to theft or fraud. It also takes cash away from other, potentially more profitable, uses. However, some people find they overspend with credit cards. This is a personal decision.

3. Prearrange Your Financial Life

While you're gone, your life back home will continue to some extent. There will be bills to pay, money to transfer, investments to make, and income to take in. One of the easiest ways to ensure your bills get paid is to create a fund to prepay them during your absence. In addition, automate as many transactions as possible and arrange with a financial pro to handle some transactions without you.

4. Develop a Backup Plan

What emergencies or contingencies might happen while you're traveling? If you go over budget, where can you take funds from? What if your vehicle breaks down? Or if you forget a bill that needs to be paid? If you don't have an emergency fund and/or sinking funds for unknown and irregular expenses, this is an excellent time to start one.

5. Do Estate Planning

It's not a fun part of travel preparation, but estate planning is important in case something terrible occurs. A departure date is a good deadline to complete at least the basics of estate planning, including end-of-life documents and powers of attorney. It can also help you put your finances in order to better budget for travel — and financial preparation for travel can help facilitate estate planning.

Where to Start

No matter what stage of planning you're in, a financial planning firm can be an ally. They'll work with you to complete all these steps and put you in place to have a great time. Make an appointment today to learn more.

Making Environmentally Friendly Investment Choices

Tue, 21 Jun 2022 14:58:25 +0000

There are many individuals that will be highly concerned about the environment. For these individuals, there are numerous ways that they can help to lessen the environmental damage that they are contributing to. However, a person may not realize that their investment approach can also be a tool for them to advocate for environmental sustainability.

Environmentally Sustainable Investing Can Be A Profitable Way To Help The Environment

Some individuals may assume that environmentally sustainable investing will always require a person to avoid investing in potential companies. This can lead to them believing that this approach will require them to forgo investing opportunities, which can lead to a significantly more narrow range of options. In reality, this is an approach that looks to evaluate the current environmental impacts of the company as well as the future direction of the company.

Evaluating A Company's Environmental Impacts Can Require Extensive Research

In order to fully evaluate the environmental impacts of a company, substantial amounts of research will have to be done. This research can be necessary for allowing individuals to effectively review the current environmental impacts that the company is having along with the future plans for the company to diversify away from harmful fuels and damaging environmental practices. Unfortunately, some individuals may struggle with this part of the process due to the tendency of companies to engage in active public relations campaigns to inflate their perceived commitment to environmental sustainability.

ESG Investing Advisors Can Over A Range Of Services

Due to the amount of work that is needed to evaluate a business for both its environmental impacts as well as its potential profitability, individuals will often find it beneficial to hire a professional investing advisor that specializes in this investing strategy. These individuals can help guide their clients through the process of evaluating companies to determine whether they will be suitable for their portfolio of holdings. While these service providers will charge fees, they will be comparable to other investing advisor services. Investing in companies that have good environmental practices can be an option that allows you to grow your money while also helping to promote environmental practices that minimize or even reverse the damage that has been done. For a person that is wanting to pursue this strategy for their investments, there are investing advisors that specialize in conducting this type of evaluation for their clients. As a result, you can find it possible to avoid investing in companies that are causing unnecessary environmental damage.

For more information, contact an ESG investing advisor in your area.

4 Benefits of Consulting a Premarital Financial Coach

Tue, 01 Mar 2022 16:18:45 +0000

Getting married is a huge step in a person's life. It is important to be prepared for everything that comes with marriage, including the financial aspects. That is where premarital financial coaching comes in. A premarital financial coach can help a couple get on the same page financially and make sure they are ready for the financial challenges and rewards of married life. Pre-marital financial coaching also helps couples create a roadmap for their financial future and avoid potential problems down the road. Here are several good reasons to attend financial coaching for premarital couples:

1. Learn Each Other's Spending Habits

Financial coaching for premarital couples is a great way to get on the same page regarding spending habits. You can learn whether or not you are both on the same page financially, what kind of things you like to spend money on, and how much money you are planning to spend in the future.

You should also see if you have any financial goals in common. If you don't, it may be time to discuss your different viewpoints and try to make some compromises that will work for both of you.

2. Assign Money Management Role

If one person is better at handling money or has more experience doing so, that person may want to take on the role of handling the finances. However, it is good to have a financial coach help you decide who will be in charge of what aspects of money management. It is crucial to avoid potential money management problems down the road.

3. Decide on Joint or Separate Accounts

It is important to decide if you will be keeping your money separate or if you will be putting it all together. If you want to keep separate accounts, a premarital financial coach can help you decide how much each person should contribute for expenses. You will also decide whether or not there should be a joint account for these household expenses. It is also important to decide who should handle household accounts and who should handle other accounts such as credit cards.

4. Assess Partner's Credit Worthiness

Before marriage, you should know how the other person manages their credit and handles paying off debt. A financial coach helps assess if your partner is a good candidate for borrowing money or opening a credit card. This financial transparency is key to avoiding money quarrels later on.

An open discussion about money and financial expectations is crucial to setting up a foundation for your upcoming marriage. To have a candid and guided discussion, consult a premarital financial coaching service such as Ruth Liebel Financial Coaching.

End 2021 On A Positive Note By Making One Of These Financial Planning Moves

Wed, 24 Nov 2021 10:49:00 +0000

The end of the year is always a good time for both reflection and thinking about the future. But before you set your sights on changes and plan for 2022, you still have time to make some positive changes in 2021. Consider your financial life. Would you like to look back on this year knowing you took steps to improve your finances? Here are a few financial planning steps anyone can take before the New Year.

1. Meet With a Financial Planner. Do you currently work with a financial planner? If not, now is the time to start. Make an appointment before the end of the year to get started learning more about how to make goals and achieve them as well as receive tips to improve your finances right from the start.

2. Plan Holiday Expenses. The holidays can be a big drain on many people's wallets. Despite it being a planned event, all the travel, gifts, entertaining, parties, and decor can easily overwhelm many people. Take control of your holiday spending this year, though, by planning and budgeting in advance.

3. Craft a Bonus Strategy. Do you expect to get an end-of-year bonus or commission at work? What about a large holiday gift? If so, sit down now — perhaps with your new financial planner — and decide what to do with it. Remember, the best time to make a solid financial plan for windfalls is before the money is in your hand.

4. Make a Contribution. While some people reduce their retirement savings to pay for holiday spending, why not use this time to add more to your funds instead? Consider additional retirement contributions to be a gift to yourself and your partner. And because December has five weeks, you may see an extra paycheck — perfect for contributing without missing the money.

5. Check Your Balances. Spend a few moments before the year closes looking at your savings, retirement, and debt balances. Do a net worth calculation. You may find that you've saved more than you thought. Or you may find that your debt is higher than you thought. Whatever you discover, though, will prepare you better to make positive financial moves in the new year.

No matter what financial planning moves you can make between now and December 31, you'll end the year on a positive note. Start today by meeting with a financial planner in your state to get more recommendations and guidance.

For more information, contact a financial planner near you.

Have A Pension Plan? 5 Retirement Planning Decisions You Face

Mon, 20 Sep 2021 15:01:39 +0000

Are you one of the dwindling number of American workers with access to an employer pension? If so, you may have a head start on retirement planning. But you also face different decisions than those without a pension. What sort of decisions must you make, and how can you make the right ones? Here's what you need to know.

1. Monthly Benefits or Lump Sum

Most pensions offer the chance to take your accumulated savings out of the plan when you retire and get a lump sum instead. Savvy investors or those with less well-performing pension plans may do better investing on their own. However, if your life expectancy is long and you don't have a large retirement buffer, you may want to make monthly payments for life.

2. Single Benefits or Spousal Benefits

If you can choose to share some of your pension checks with a surviving spouse, should you? This generally depends on the spouse's retirement options. A stay-at-home spouse with little other savings may need additional benefits. However, if your spouse isn't dependent on your income, you both may do better with higher monthly payments for you.

3. Non-Pension Retirement Savings

While many Americans struggle to contribute to just one type of retirement account, you have the option to contribute to both a pension and individual plans. Calculate your expected pension payments to determine whether or not these will cover retirement expenses. Many do not, and you should supplement your financial plan with other means.

4. Lifetime Payments or Period Payments

Modern pensions sometimes offer an option to receive benefits for a fixed period of time, including to the surviving spouse. This could be an ideal option for those who plan to retire early and have to fill in the gap before tapping other retirement funds. However, as with a lump sum, smaller checks guaranteed for life could be more valuable to many.

5. Purchasing Service Credit

Because pensions are usually based on the amount of time put in by the employer, they often include the option to purchase service credits for higher benefits. Should you purchase credits? This may be a good choice for someone who wants to retire early and collect larger checks or who joined the company later in life. However, if you have other retirement benefits, the money to purchase credits might be better used elsewhere.

Clearly, a worker with a pension plan has plenty of decisions to make. The best place to start is to learn more about calculating the effects of various options. Do this by consulting with a retirement financial planner in your state. With their expertise, you can choose the right path for a great retirement.

Marrying A Rich Spouse? 5 Money Moves For Success

Tue, 27 Jul 2021 07:49:25 +0000

Are you marrying someone who has significantly more assets than you do? If so, then now is the time to take some important financial steps both on your own and as a couple. Doing so will help ensure a happier relationship and happier individuals. So, what are some of these moves to make? Here are some to consider.

1. Meet Together With a Financial Planner

The most successful financial plans for couples are those which are made as a family. This doesn't necessarily mean all your choices must be joint, but it helps you stay on the same page and avoids working against one another. If your spouse has a lot of assets, you should both be aware of what you have to work with as a couple and create new family goals.

2. Meet Alone With a Financial Planner

A disparity between spouses' assets and liabilities can create some conflicts and emotional responses on both sides. If you are the partner with fewer assets, it's even more important that you retain your autonomy with what you brought into the marriage and what you create during it. So, along with planning together as a couple, do some complementary planning for yourself and your personal goals.

3. Discuss Prenuptial Agreements

Many couples in your position enact a prenuptial agreement before heading down the aisle. This is good for both persons, as it outlines what each party brings into the marriage and how to protect it from being accidentally intermingled. Not only does this protect the spouse who has more assets, but it also gives a sense of control and ownership to the spouse with fewer.

4. Make a Family Budget

Budgeting is hard for most people, and it can be especially hard for newlyweds. When one spouse has a lot of resources, it may even seem unnecessary. But a budget protects all your assets as your finances change from a one-person household to a two-person unit. In addition, it offers you a chance to prevent money arguments because everyone agrees to a set of basic guidelines in advance.

5. Do Joint and Individual Estate Planning

Both spouses should do estate planning as soon as possible. Inheritance rules change once you are married. Your feelings have also changed as you've entered into a new relationship. And when more money is at stake, you both face bigger challenges from family, creditors, and even strangers who will want a piece of your pie. Protect both spouses by codifying your plans — both for shared money and individual funds.

Where to Start

Want to know more about financial impacts when you marry a person with more money than you? Start by meeting with an experienced financial planner who specializes in wealth management planning for the whole family. Together, you will craft a path forward as individuals and as a couple.

5 Tips to Make Tax Refunds Part of Your Financial Plan

Thu, 20 May 2021 16:56:05 +0000

Is your tax refund part of your financial plan? If you're not using this financial tool to its greatest advantage in improving your finances, here are five tips to make it work harder.

1. Prepare Your Taxes Early.

Even though Americans are not generally required to file their personal income taxes until April 15 (or even later), you do well to schedule your tax preparation appointment as early as possible. This gives you plenty of time to plan before receiving that check or receiving a bill.

2. Plan for the Refund Before Getting It.

If you expect a big tax refund, take some time before authorizing the tax preparer to submit your taxes and trigger the check. This buys you time to decide what to do with it before the money is in your hand. Waiting until you have the cash handy could result in spending it less wisely.

3. Talk to a Financial Planner.

Before you decide what to do with your tax refund (or how to pay your tax bill), sit down with a financial planner. They will look at your overall financial picture and help you consider all the options. You may, for example, want to pay off a particular debt but your planner could see that it is at a low-interest rate or that you could get a better return by investing it.

4. Consider Your Retirement Plan.

Want a way to make your tax refund work doubly hard? Discuss with your financial planner the value of contributing to your retirement account. The contribution helps your retirement funds grow faster and uses the power of compound interest. And you'll get an additional tax deduction next year if you put that money into a tax-advantaged retirement fund.

5. Rethink Getting a Refund.

For many taxpayers, a tax refund isn't necessarily a requirement. You may be able to adjust your withholding to have less taken from each paycheck instead. This could free up more money in your monthly budget not only for daily expenses but also to build savings, make higher monthly retirement contributions, or plan for large expenses. This could make an even bigger impact on your long-term financial goals.

By preplanning how to use that refund, putting it where it will do the most good, and discussing it with a qualified financial planner, you will use it in the savviest way possible. Make an appointment with a financial professional who specializes in tax preparation today to get started.

Financial Advisor: 3 Reasons You Might Need Their Help

Thu, 11 Mar 2021 15:51:11 +0000

The ability to create wealth depends on your ability to make the right financial decisions. With proper financial management, it becomes easier to achieve short-term objectives such as debt reduction and long-term goals such as investments. However, making the right financial decisions can be mindboggling without the help of a financial consultant. For that reason, it's advisable to seek a financial advisor's help to avoid making mistakes that affect your financial stability.

Having a financial advisor by your side will enable you to manage resources effectively. With their support, it will not take long to achieve financial freedom. Highlighted below are reasons why you should work with a competent financial advisor.

1. You Get Sound Financial Guidance

Sure, no one has the right to dictate how to handle your finances. However, the slightest investment mistake can be all it takes to drain your finances. The best way to prevent this from happening is by seeking the help of a financial consultant. Thanks to their knowledge and experience, a reputable financial advisor can help choose an excellent investment after analyzing various factors. The fact that they have experience working within this industry means that they know what works and what doesn't for investors like you.

2. You Won't Have to Worry About Tax Concerns

Taxes play a vital role in terms of the development of a country. However, paying a high amount can defeat the purpose of investing. This is because paying huge taxes means getting lower returns. Keep in mind that even an investment with a high return on investment can disappoint after factoring in the associated taxes.

This is something that seasoned financial consultants are aware of. Their help is all you need to organize your business finances in a manner that keeps taxes at a bare minimum. What's more, they will enlighten you about the existing tax laws, helping you get the most out of every investment you make.

3. You Enjoy Better Quality of Life

When investing, there are many factors to consider, from researching various financial markets to identifying effective financial strategies. That's why the process of figuring out an ideal investment is usually an exhausting experience. Fortunately, an experienced financial advisor can deal with all these challenges. As a result, you will focus on other important matters while avoiding common investment mistakes.

With these benefits in mind, it's easy to see why you can never go wrong with a financial advisor. Investments and tax matters will be the least of your worries. As a result, you will be able to enjoy a better and meaningful life. Contact a financial advisor for more information.

3 Ways A Financial Advisor Will Help Enhance The Growth Of Your Business

Wed, 06 Jan 2021 09:52:07 +0000

Everyone starts a business expecting that it will expand and thrive even amid stiff competition. However, the success of any business depends on the plans and objectives the owner has. You may have some good business plans, but you may not realize most of them if you don't find ways to implement them. Seeking help from an experienced financial advisor is one of the smartest ways to help your business thrive.

Unfortunately, most business owners don't seek help from these experts, especially when implementing short-term goals. Whether you have some short-term or long-term business goals to implement, you should consult with a financial advisor for the following reasons.

They Make Your Burden Lighter

As a business owner, you have several roles to play, and you may sometimes have to perform them all at the same time. If you have several departments to oversee, it can be both demanding and tiring. For instance, you may have to ensure that the customer support, quality assurance, marketing, and product development departments are stable and functional.

Management work might be a heavy load on your shoulders, so you need a financial advisor to help ease it. They will help you know how you could make the customer experience more satisfactory, promote your brand, and also how much money you should set aside for each of these functions.

They Help Safeguard the Future Plans of Your Business

As you run your daily management tasks, it's also critical to pay attention to your long-term goals and keep an eye on the bigger picture. However, most business owners get overwhelmed in the process and overlook their future plans. When you have a clear picture of how you want your business to perform for several years to come, you determine what to do today to secure its future.

A financial advisor will help you to secure the future of your business. They know the financial indicators that will influence the future performance of your business. They will also analyze your future plans and check if they are in line with your current strategies. If they are not, the financial advisor will help you make some more sensible investment decisions.

They Help Balance Business and Personal Finances

Most people start a business so as to improve their current financial position. But as the business stabilizes, they focus on other things and end up misusing what their business is generating. For instance, they may use all the profit on their personal needs instead of reinvesting it into the business. Such mistakes end up hurting your business in a big way. But, you can avoid such mishaps by hiring a competent financial advisor. They will help you know what to spend on your personal needs and the share you should use on your business needs.

Running a business might seem a simple task, but it can be overwhelming without a sound plan and a financial expert's help.

For more information, contact a financial advisor in your area.

How Wealth Manangement Planning Is Different From Other Financial Advice

Mon, 21 Sep 2020 12:46:41 +0000

At first blush, the concept of wealth management planning might sound a lot like another term for financial advice. Wealth managers and financial advisors, however, operate in significantly different domains and work with clients who have different goals. Here are 5 ways wealth management is different.

More Money

The biggest distinguishing feature is what the term wealth means. Generally, wealth management applies to work for clients who either have large reserves of money and essentially live off the interest or earn annual incomes in the hundreds of thousands or millions of dollars. In other words, there's simply more money under management.

Control

It's common for a wealth manager to have a more active role in making decisions and moving money around. Financial advisors are typically coaching folks to get their debts and incomes to a point where they can be consistently cash-flow positive. A wealth manager is usually working with clients who are past that stage. Instead, these clients are dealing with enough wealth that they need assistance with managing it on a daily basis.

Consequently, it's normal for a wealth manager to have more direct control over money. Many clients will also require their managers to enter into fiduciary relationships, meaning there are consequences for mismanagement.

Different Cost Concerns

While wealth management principles do still keep an eye on cost control, most of the concerns tend to be more macro. To the extent that cost is still an issue, it is in the form of things that eat away at wealth. These are problems like taxes, inflation, and lack of portfolio diversification.

Bigger Goals

Folks engaged in wealth management planning tend to have bigger targets. While someone working with a financial advisor might plan to buy a house or prepare for retirement, wealth management clients are worried about acquiring companies, dealing with estates, and sequestering their wealth in safe harbors. They're also frequently concerned with the issue of maintaining multigenerational wealth.

Diverse Financial Vehicles

Working with more affluent folks means finding more outlets for their money. Generally, someone who has a few million dollars should not sink all of their wealth into one class of assets. You don't want to be subject solely to the whims of the stock market, for example.

Diversification also means trying to avoid sectors with common triggers for downturns. This often requires more research to determine what the long-term and tail risks are, and how to mitigate them and preserve the client's wealth when crises inevitably occur.

For more information about wealth management planning, contact a local agent.

3 Signs Your 401K Needs Professional Help

Fri, 08 Nov 2019 13:20:06 +0000

Saving for a big expense can be challenging for most people. Unfortunately, saving for retirement can be even more overwhelming. A 401k plan helps many people save without putting much thought into it, but you may not be utilizing this popular savings method properly. With this guide, you will learn the signs you need professional help with your 401k account.

You're Not Investing Enough

Most people do not know how much they should be investing into their retirement savings. Alternatively, you may be part of the group that feels you cannot afford to save any more than you already are. Fortunately, sitting down with a 401k advisor can help.

An advisor can look at your current savings to determine how much you will realistically need to continue saving for your retirement needs. The advisor can also help you adjust accounts, ensuring you are taking advantage of investment opportunities.

Advisors can also look at your current financial state, allowing you to see that there are ways to save more money for your retirement account.

Your Employer Doesn't Match

Many employers will match what you are investing into your 401k up to a certain amount. If your employer does not offer any type of matching benefit, consult an advisor. Without a match from your employer, you may not be benefitting from all the possible investment options that you have available to you.

An advisor can help you design your current 401k accounts to be more aggressive, which may help you see a higher return on your investment. Or, you can weight out the options of switching from your traditional 401k to a Roth IRA or another type of retirement savings account. Since you do not have the match from your employer, an alternative may be a better option for you.

You're Self-Employed

If you're self-employed or run a small business, you will not have access to the traditional employer-sponsored 401k plans. However, you do have options available so you can effectively invest for your retirement.

Consider a solo 401k, for example. This account allows you to make pre-tax contributions just like an employer-sponsored 401k since you will be acting as both the employer and the employee.

Roth and traditional IRAs are also options to consider if you are self-employed. An advisor can help you weigh out the pros and cons of both before you decide on which will help you save the most money over a period of time.

For more information, contact a 401k advisor.

3 Reasons DST 1031 Exchange Properties Make Good Investments After Selling Other Real Estate

Wed, 09 Oct 2019 10:47:17 +0000

A Delaware Statutory Trust (DST) exchange property has become quite the popular thing among real estate investors, business owners, and others who are looking to diversify their investment portfolios. If you have recently liquidated a real estate property and have managed to receive a large sum of money in the process, a DST exchange property can make a logical investment for a lot of reasons. A financial planning advisor can go over things in-depth, but here is a look at three of the reasons a DST 1031 exchange property makes a wise investment after you have sold other real estate.

You may defer some of the capital gain's taxes you would normally have

Deferring capital gain taxes is probably one of the biggest reasons why investors turn their money to 1031 DST exchanges after they have sold a high-dollar real estate property. If you made a major gain after a property sale, all of that money is potentially going to be taxed at the end of the year. These taxes can cost you a big chunk of your profits, so designating at least a portion of the capital earned for a DST 1031 property is a wise decision to make financially.

You get the opportunity to diversify real estate investments

The beauty of DST 1031 properties is they can be owned in part by a long list of people. You can potentially be the partial owner of several properties, which means you have a highly stable foothold in real estate properties. If you hold ownership in say ten of these properties, it is not going to hurt your investment portfolio value if one property is lost, for example. On the other hand, if you sink all of your funds into one real estate property and that one investment turns out to be a loss, your investment portfolio takes a huge hit.

You will not get into an investment that requires a lot of your time and attention

DST 1031 properties are pretty much passively held by investors; you really are not going to be responsible for things like property maintenance like you would if you just bought a whole property outright. If you liquidated a prior property for this very reason, a DST 1031 Exchange can be a really attractive investment. You can still get the opportunity to grow your wealth without actually having to put time and effort into doing so.