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 […]
June 1, 2017
always is never always

Always is NEVER Always

Recently an interaction with another financial professional left me a little puzzled. He suggested that a ROTH is always better than a regular IRA. If there’s one truth in the financial world, it’s that always is NEVER always. Always is NEVER Always
May 31, 2017
How to set a Financial Goal; Should I use a roth or a traditional

Should I Use a ROTH IRA or a Traditional IRA?

It’s an age-old question when it comes to retirement accounts. Should I use a ROTH or a Traditional IRA? Both are great vehicles to prepare for retirement. However, neither are ALWAYS a perfect fit for everyone. Let me break them down a little further to help you understand the differences and when you might want to choose one over the other. What is the difference? First, you need to know what each account does and how it shelters your money. ROTH IRA’s are the accounts that you place after-tax dollars in. So for example, if you put $5,000 in a ROTH, you’ll get the earnings from that tax-free later in life. Since the money was initially taxed before being placed in the account, it is set up to shield those gains from taxes. Essentially it’s tax-free money for retirement. A Traditional IRA works the exact opposite. The money placed within these types of accounts are pre-tax dollars. Therefore, you’re getting a tax break up front. When you file your taxes, you’ll often get a tax deduction because you chose to fund a Traditional IRA. However, once you begin to withdrawal that money in retirement, the earning from it are fair […]
May 17, 2017

Laying a Good Wealth Building Foundation in your 20s and 30s

Laying a Good Wealth Building Foundation in your 20s and 30s Laying a Good Wealth Building Foundation in your 20s and 30s Hey guys! It’s Justin Goodbread from Financially Simple. Here are some tips for laying a good wealth building foundation early on. If you catch on to these you undoubtedly increase chances of success when it comes to your finances. 1. Work/Life Balance 2. Invest in Yourself 3.Plan Not Save 4. Set Short Term Goals 5. Spend Less than you Make 6. Build a Budget 7. Learn Money 8. Take Risks 9. NEVER Borrow Money for Non-Assets 10. Take advantage of “free” money