Tag: wealth management

Estate Planning Tips for Small Business Owners

Written by Zachary Morris, CFP® on May 9, 2022.

What You Need to Know to Protect Your Greatest Asset

Estate planning for small business owners isn’t always at the top of the to-do list, but it’s one of the most important steps you should take to set up a legacy of success. It may feel overwhelming to think about what happens when you pass on, but it’s critical to have conversations now to ensure all your hard work doesn’t go to waste.

If you don’t have an estate plan, then your local state law will likely dictate where your business goes after you die. There are many things you can do now to prepare, from focusing on tax efficiencies to drafting up a solid will and estate plan, that will help you secure the proper transition of your company.

Read on for six smart estate planning tips for small business owners.

Tax-Smart Strategies to Help Your Kids Pay for College

Written by Zachary Morris, CFP® on April 19, 2022.

In the Face of Skyrocketing Education Costs, it Pays to Prepare

Even if they’re still quite young, it’s never too soon to begin planning strategies to help your kids pay for college in the future. Higher education is already expensive, and because college costs increase at about two times the rate of inflation each year, it will only get pricier as the years go by. Currently, it’s estimated that today’s toddlers – who will start college around 2038 – can expect to spend around $35,592.339 each year on tuition, fees, room, and board for an in-state public school. For kids who want to go to a private school, they can expect to spend around $81,470.95 yearly for the same.

Luckily, there are many financial aid opportunities, scholarships, and grants that can help your child cover college costs. In addition to these, there are also some key financial planning strategies that can make college costs a bit more manageable.

Take These Financial Steps to Prepare for Your Post-Retirement Life

Written by Jeff Diamond, AIF® on April 5, 2022.

Four Ways to Level Up Your Retirement Readiness

Planning for retirement can feel overwhelming, especially if you happen to be getting a late start. However, it is essential to prepare your finances for retirement, especially as you enter your fifties and sixties, and have more clarity on what you want out of this next phase of your life. Use the three steps below as a roadmap to get started, or to help ensure your current retirement plan covers these essential areas.

5 Small Business Tax Credits to Know

Written by Zachary Morris, CFP® on March 14, 2022.

Are You Using All the Tools Available to You?

If you’re a small business owner, you should be using every tool in your arsenal to grow and protect your business. This includes taking advantage of the many federal tax credits available. Since this can be a confusing topic, I’m going to share a primer on how tax credits work, which ones you should be aware of, and the forms you need to file in order to capitalize on them.

8 Benefits of Your Health Savings Account

Written by Zachary Morris, CFP® on March 2, 2022.

When Used Correctly, HSAs Can Be a Great Financial Planning Tool

It’s no secret that healthcare costs are on the rise and there are no signs of prices falling anytime soon. In the face of skyrocketing costs, many people are turning to their Health Savings Accounts (HSAs) to help pay for current and future healthcare costs. Often, these accounts are offered through an employer, but they can also be opened individually. To qualify, you must be covered under a high-deductible insurance plan, and if you are, you can take advantage of an impressive array of benefits.

If you have an HSA but you aren’t sure you’re optimizing it, read on for eight important benefits.

Five Financial Tips for Small Business Owners

Written by Zachary Morris, CFP® on October 28, 2021.

Having a Firm Hold on Your Finances is Crucial to Your Company’s Success

Small businesses are vital to the U.S. economy, employing half of the private-sector workers in our country. They also create 1.6 million net new jobs annually, according to federal data. As of 2020, there are 31.7 million small businesses in America, which accounts for 99.9% of U.S. businesses.

Despite an integral part they play in the economy, small businesses often struggle to find success. In fact, the U.S. Bureau of Labor Statistics has reported that 20% of small businesses fail within the first year of opening and only one-third of businesses are able to survive the 10-year mark. The leading cause small businesses cite as the reason they were forced to shut their doors is – you guessed it – cash flow problems.

When it comes to the success of your small business, having a strong wealth management strategy in place and practicing smart money habits can play a significant role in your long-term success. Follow these five tips to help keep your business on track.

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

Written by Zachary Morris, CFP® on August 23, 2021.

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.

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

Written by Zachary Morris, CFP® on June 16, 2021.

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.

Financial Tips for the ‘Sandwich Generation’

Written by Zachary Morris, CFP® on November 20, 2020.

financial tips for multigenerational families

Financial Tips for Those Who Juggle Caring for Aging Parents While Raising Kids.

Are you in the position of feeling you need to juggle your own financial needs with both your children and your aging parents (or another relative)? If so, you are a part of the “sandwich generation”. You are not alone; twelve percent of all parents fall into this category.

It can be a taxing and stressful situation to be in, not just financially but also emotionally. Your kids may need help with college and large expenses like a car or home, and your parents may be depending on you for extra security as they move further into retirement, and possible medical issues arise. With these added economic expectations, how are you to save for your financial health and retirement?

These tips are different strategies designed to help you, the sandwich generation, navigate the difficulties of caring for your children and aging parents. The most important thing is to have a plan, and if you do not have one, this will get you started on the right foot.

How to Maximize Your Stock Options

Written by Zachary Morris, CFP® on August 24, 2020.

The Key Considerations You’ll Need to Best Leverage this Employee Benefit

Stock options have become a popular way for employers to compensate employees and incentivize high-quality work. Not only are they convenient and cost-effective for the employer, but they provide employees with added value for a job well done. When employees feel valued and do good work, the company’s stock value rises, and everyone wins.

Since stock options aren’t as cut and dry as a normal paycheck, though, many employees don’t fully understand how to make the most of them. Below we’ll discuss how stock options work, when to exercise them, and how to maximize this type of compensation.

The Basics of Employee Stock Options

When an employer offers stock options as part of your benefits package, it means you’ll have the opportunity to purchase a certain amount of company stock for a set price called the “grant price”, and typically within a set time frame. Most often, employers want to incentivize you to stay with the company long-term, so you may have to wait until your stock options vest – that is, until they reach the point in time when they become available to you to exercise. This means new employees usually can’t take advantage of them right away. Once they vest, you’ll have a specific time period in which to use your stock options before they expire.