Tag: wealth management

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.

Zach Morris featured in Recent Article Published by Statefarm

Written by admin on August 13, 2020.

In an article published on statefarm.com this month, Co-Founder Zach Morris offered his insight and expertise on wealth transfers.

5 Things to Understand about Wealth Transfers

One reason some people focus on building wealth over a lifetime is to be able to pass along resources and provide opportunities to their children and grandchildren. But it takes time and planning — as well as conversations about expectations and shared values — to have this transfer work well for everyone.

Planning Assumptions That Should Be Avoided

Written by Zachary Morris, CFP® on August 12, 2020.

Even the Most Disciplined of Planners Can Fall Victim to Faulty Planning Practices

Even if you consider yourself an accomplished and disciplined planner – and, perhaps, even more so if you fall into this category – it’s uncomfortable to face unexpected financial hurdles. Since no one can perfectly plan for the unexpected, however, it happens from time to time. It could be that your career takes a turn you didn’t foresee, or maybe your child’s college education ends up far costlier than you expected. All of a sudden, you find yourself facing a future where your savings goals may be in jeopardy.

Although no planning is foolproof, avoiding some common – and faulty – planning assumptions can help ensure your long-term goals won’t be in danger.

Which Assets Belong in Your Living Trust – and Which Don’t?

Written by Zachary Morris, CFP® on July 21, 2020.

Guidance on How to Fund Your Trust

If you’re considering setting up a living trust, know that there is more to it than simply meeting with a lawyer and signing the appropriate paperwork. Your trust won’t have any power until you fund it. To do so, you’ll need to strategize about which assets you’ll put in the trust, and then complete the necessary transfers.

For most people, there are assets that make sense to transfer to your trust, but others that you’re likely better off leaving outside the trust. Below we’ll dig into the details of both. First, though, let’s discuss the basics of a living trust.

Why Choose a Living Trust?

If you’re looking to manage your assets during your lifetime and find a way to easily pass them to your beneficiaries when you die without going through the hassles of the court system, a living trust is for you. This legal structure allows your estate to bypass probate, which is advantageous for several reasons.

Not only is probate complex, time-consuming and expensive, it also means your estate information will become public record. A trust, on the other hand, allows you to keep your finances private. Furthermore, this legal instrument gives you more control over which of your heirs get certain assets, and even when they are able to access them. For example, you could choose to pass some of your assets to your children when they turn 18, with a percentage held back until they reach age 40.

Small Business Checklist: How to Assess Your Financial Wellness

Written by Jeff Diamond on June 29, 2020.

A Five-Step Plan for Busy Business Owners

Running your business day to day takes all of your energy and focus. Your waking hours are consumed with managing and sustaining it, and you likely spend many a sleepless night on the details no one else thinks about. This is the life of a committed small business owner.

When you’re grinding day after day to keep your business well-positioned, however, it can be easy to lose sight of the bigger picture. Specifically, it becomes difficult for many small business owners to find the time to monitor the overall health of their business in a meaningful way. The five-step guide below is designed to help you focus on five key elements of your business’ financial health.

When Spouses Aren’t on the Same Spending Page

Written by Zachary Morris, CFP® on December 26, 2019.

Tips for Aligning Your Marital Money Attitude

Many married couples split household tasks and responsibilities, choosing to divide and conquer in an age of unprecedented busyness. For example, one spouse might handle grocery shopping while the other does all the yard work. One spouse might do daycare drop-off while the other handles the kiddos’ bedtime routine. It’s an effective and efficient way to run a household, especially if both spouses work. When it comes to money issues, however, these topics are best tackled as a team.

Spending, budgeting, and other financial issues can cause stress and anxiety, so many couples avoid these topics. However, since money issues are one of the leading causes of divorce, it’s important to work through the uncomfortable topics and get on the same spending page.

Here are five tactics for making sure you and your spouse agree on household spending and avoid money conflicts: