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Planned Upcoming Tax Changes for 2021

Written by Zachary Morris, CFP® on .

Tax Changes 2021
The 2021 Tax Year Is Bringing Some Surprises With It, but Here’s What We Do Know

Recently, there has been a lot of discussion about the tax plan put forth by the Democrats and the corresponding changes it may bring. While there is still a lot that is unknown, some of the upcoming tax changes are certain and can begin being planned for. Below is a summary of some of the items that will change in the 2021 tax season.

Financial planning provides a plethora of benefits; however, it also comes with many challenges considering it’s impossible to completely prepare for an unpredictable future. Despite the impossibility of being able to fully prepare for what the future holds, a smart financial plan can still provide you with the flexibility and strong financial foundation you need to respond to whatever it may bring.

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Understanding the Most Common Types of Employee Equity Compensation Plans

Written by Jeff Diamond, AIF® on .

equity compensation
What You Need to Know About These Valuable, Complex Benefits

Equity compensation can be an incredibly valuable employee benefit, but it can also be a complex subject matter to get your arms around.  Not only are there multiple types of equity compensation, but each has unique characteristics you should keep in mind in order to maximize its value.

Below, we’ll discuss the most common types of equity compensation and dig into the potential challenges and unique benefits of each one so that you can make smart decisions for your financial situation – and avoid costly mistakes, too.

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7 Steps to Building Your Family Financial Plan

Written by Zachary Morris, CFP® on .

family and finance
How to Develop a Comprehensive Financial Strategy to Set Your Family Up for Success

Every family will experience various stages of life and unexpected events as the members of that family grow. Having a strong family financial plan in place can help ensure that, no matter what your family encounters, you’ll remain on firm financial footing. Developing a comprehensive strategy for managing your money requires that you start with the basics – that means setting up a budget, paying down your debts, and building a solid safety net for emergencies. Depending on the family, it may also mean investing for retirement and starting a special savings account dedicated to future college costs.

Personal financial planning can be complicated enough, so financial planning for your entire family can be especially challenging. However, it’s not impossible. With dedication and deliberate care, you can make a family financial plan that works for everyone. No matter your family’s situation, there are key elements that should be included in any family financial plan. As you get started with yours, here are seven key steps to consider.

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Small Business Employee Compensation Packages: Choosing What’s Right for You

Written by Zachary Morris, CFP® on .

employee compensation package
A Written Compensation Plan is Vital to Your Company’s Success

If you’re a successful small business owner, you likely have a solid business plan in place. However, if you’re like many entrepreneurs, you aren’t as adept when it comes to devising employee compensation packages. It can feel a bit like an afterthought when you’re focused on launching or growing your business, but determining the right compensation package may be critical to your long-term success. After all, the right compensation can assist you in recruiting top talent and in retaining your top performers.

As you consider your options, do so with your company’s overall strategy and values in mind. You want to be able to compete for the best talent, but without overextending your resources. Below we’ll discuss a few ways you can get started.

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Emergency Funds: Why Everyone – Even High-Income Earners – Should Have One

Written by Zachary Morris, CFP® on .

emergency funds
There’s a Reason so Many Experts Recommend this Safety Net

We’ve all heard the prevailing wisdom that everyone should have an emergency fund, but is it necessary for physicians, lawyers, and other high-income earners? This is a bit of a divisive question, with some financial experts continuing to push the dogma of having a cash reserve of at least three months’ salary set aside somewhere, and others making a sophisticated argument that an emergency fund doesn’t truly serve high-income earners.

It’s true that not every person’s financial needs are the same, but it’s still important for everyone to build and maintain an emergency fund regardless of income or assets.

Wherever you are in your career and financial journey, having a cash reserve set aside for a rainy day serves three important purposes.

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Benefits of Hiring a Retirement Plan Consultant

Written by Zachary Morris, CFP® on .

retirement plan consultant
Experts Offer Key Assistance in this Complex Landscape

Your company has unique goals and needs when it comes to your retirement plan and your participants. Since you’re busy running and growing your business – and since the number of lawsuits related to mismanagement of retirement plans has risen in recent years – you may find tremendous value in working with a retirement plan consultant.

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Legacy Planning: Five Ways to Help Your Heirs Preserve and Grow their Inheritance

Written by Jeff Diamond, AIF® on .

legacy planning
Don’t Skip this Often-Overlooked Step as You Plan the Disposition of Your Estate

Legacy planning, also called estate planning, is a long-term process. In fact, you’ve probably been engaged in it for much of your adult life, even if you didn’t realize it in the moment. Things like taking out a life insurance policy and naming beneficiaries on your retirement accounts are important steps in planning the eventual disposition of your estate and ensuring those you care about will be financially secure.

On the formal side of things, it’s important that you meet with an estate planning attorney, write a legal will, draft a durable power of attorney, and execute an advanced health care directive. In this article, however, we will examine an important legacy planning step that is too often overlooked: preparing your heirs to receive their inheritance – and helping them to preserve and grow it, as well.

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5 Tips for Physicians: Paying Off Student Loan Debt

Written by Zachary Morris, CFP® on .

medical school debt
Medical School Comes with a Hefty Price Tag, but Here’s How to Tackle It

Though medical school can be a fantastic investment, it’s no secret that it can be incredibly expensive. Most med school students believe this investment to be worth it due to the estimated income of most healthcare professionals. However, it comes at a high cost. Statistics show that the average student loan debt for college students is $32,731, whereas the average medical school debt is $201,490 – quite a drastic difference.

Having large amounts of debt can seriously impact your finances, as well as your emotional and physical well-being. It can increase stress and tension and contribute to things such as poor judgment, inability to focus, and habitual procrastination. These are obviously not conducive to establishing a thriving medical career.

If you’re a medical student or doctor looking to protect your net worth and quality of life, it’s imperative that you establish a savvy plan for paying off your student loans. Here are five tips to get you started.

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Should You Rent or Buy a Home When You’re Retired?

Written by Zachary Morris, CFP® on .

rent or buy a home when retired
Why More Retirees Are Enjoying the Perks of Renting

One of the biggest financial questions near-retirees must answer is what their living situation will look like in retirement. Many choose to move closer to friends or family, while others move simply to downsize. In addition to location and square footage, however, it’s also important to make the decision between renting or buying. Though it may come as a surprise, renting in retirement has become a growing trend. In fact, since 2005, the largest growing group of renters has been people in their fifties and sixties.

Renting may be a growing trend, but how do you know if this is the right decision for you? There are several factors, both emotional and financial, that you’ll need to take into consideration. To help you explore your options, we will discuss several of these factors below, including crunching the numbers, creating cash flow, and the freedom of movement.

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Fitting Equity Compensation into Your Financial Plan

Written by Jeff Diamond, AIF® on .

equity compensation
The smartest move when granted equity benefits is to plan now, not 10 years down the road.

A growing trend in employee benefits is the inclusion of equity compensation to attract the best talent and to recognize top employees. Equity compensation is a form of non-cash compensation that represents ownership in the company, such as stock options or restricted stock. Depending on the company and the type of compensation they provide, employees will either receive company stock upon joining the team or the option to purchase it at a future date into their employment.

Equity compensation can seem complicated, and it may be tempting to let your benefits sit on autopilot, especially if you plan on staying at the company for a while and don’t have immediate plans to sell the stock. This might not be the best move, however, because equity compensation can come with unique tax rules, tax implications, and liquidity challenges. In order to ensure that you’re making the most of these benefits, it’s important to take a strategic approach to manage them and work to incorporate them into your broader wealth management plan. As you do so, keep the following questions and opportunities in mind.

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