June 16, 2017
should i use a roth or traditional

How a Properly Planned 401k Can Lower Your Taxes?

If you participate in a qualified 401k plan, you’re among millions of Americans utilizing this option for retirement planning. These plans are a great way to stock away pre-tax dollars to fund your future lifestyle once you retire. A properly planned 401k can also represent an excellent benefit for a business owner as well. Here’s how. The Scenario We recently met with small business clients, along with their CPA. This particular client generates around two-and-a-half million dollars in gross revenue a year. The owners, a husband and wife team, each earn $75,000 a year in W-2 wages, and the business saw a profit of just over $297,000, which is split 50/50 between them. They’re frugal with their money, carrying no debt and spending roughly $6,000 a month on living expenses. This has been the key to their success. The Before and After They’re making almost $450,000 a year in taxable income. Before they incorporated 401k planning into their business model, it wasn’t unusual for them to get tax bills ranging from $150,000 to $180,000 a year. Now, with their 401k plan in place, their combined tax bill was $63,000. We placed $106,000 of their income into the plan. Utilizing employee […]
September 26, 2016
Investing under a Clinton Presidency

Investing under a Clinton Presidency

Yesterday we took a look at some areas that could potential be big investment areas under a Trump presidency. Today we’re dissecting the agenda of Democratic nominee Hilary Clinton. The two candidates are polar opposites on just about every issue at hand, so where do you go to bat if she becomes the next president of the United States. Here’s a few we foresee being possible winners. Managed Healthcare Companies Clinton has made no bones about what a fan she is of socialized medicine. She recently stated she wanted to take the Affordable Care Act a step further than President Obama did. If she has the opportunity to capitalize on that promise, then someone has to manage it, which is where the managed healthcare providers come in to play. A four or eight-year term under Clinton will likely turn the heads of investors this direction making these companies ones to watch. While her plan may devastate some sectors of the healthcare industry, these companies probably won’t fall in that category. Renewable Energy Companies Much like President Obama, Clinton is a big fan of renewable energy. Many of her supporters and donors come from these companies. Most of the fossil fuels […]
August 7, 2016
Why a CFP is Vital in Your Financial Plan

Why I Hired a Financial Planner

Why I Hired a Financial Planner One of my favorite Warren Buffet quotes is this, “Lethargy, bordering on sloth should remain the cornerstone of an investment style. This year we neither bought nor sold a share of five of our six major holdings.” The second richest man in the U.S. is advising us that investing should be boring. Basically he wants to remind us that the two biggest factors to achieving success, time and allocation, are both on our side. And considering his successes, mimicking his investing style probably isn’t a bad idea. For me as a CERTIFIED FINANCIAL PLANNER™, I may know the dos and don’ts of investing better than most; however, I also know the power of emotions. And when it comes to my own personal investments, I still look to others for guidance, which is why I hired a planner to handle my affairs. I sometimes need to be reminded of the goals I’ve set and am working toward achieving. So as you dive into the investing world, you want to keep in mind that when you build your portfolio, your asset allocation should match your risk tolerance and line up with your long-term goals. This is where your […]
June 17, 2016

Building Wealth without Stocks – Financially Simple

Get rich quick schemes are everywhere you look, however, if you’re serious about building wealth you’ll need to look elsewhere. Using the stock market is obviously a great place to start, but it’s not the only way to amass a fortune to secure your future. There are several other great investment opportunities to help fund your retirement. The most popular venture outside the market is real estate. This is one of those areas you need to be careful though. Everyone and their brother have written a book and want to sell it to you on how to make money. There are a lot of pros and cons when it comes to investing in real estate. Many people jump in without fully understanding things like market timing, time management, law, or ROI. Typically they’ve read or bought something promising big returns and they end up burned. I know just as many people who have lost money in real estate as those who have made money. Another alternative is business…think “Shark Tank”. Instead of buying stock in XYZ fishing company, you can actually go out and partner with someone you know that needs your capital to get their business off the ground. Perhaps you can find […]