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Six Financial Planning Mistakes Small Business Owners Should Avoid

Much of your business hinges on your ability to manage your finances
Monday, 31 May 2021

Six Financial Planning Mistakes Small Business Owners Should Avoid

Entrepreneurs are inspired to start a small business for a variety of reasons. Perhaps they’re seeking freedom, a better lifestyle, or maybe they simply want the ability to be their own boss. Whatever the reason, many jump into entrepreneurship without mastering financial planning. The result is that small business owners end up making financial mistakes that hinder them from enjoying the sustainable and scalable growth essential to the long-term success of their business.

Failing to plan the finances of a business properly means higher chances of start-ups failing during the first few years of operation, whether due to the cash flow drying up, unexpected expenses that can’t be covered, or an overwhelming amount of debt rapidly accumulating.

Below, we’ll go over six common financial planning mistakes that small business owners make and how you can avoid them in your own business.

Understanding the ‘Rich Person Roth’

A Strategy for High Earners to Create the Most Tax-Free Retirement Income
Wednesday, 05 May 2021

Understanding the ‘Rich Person Roth’

Recent world events have made it clearer than ever that it’s imperative to have a long-term financial strategy that allows you to weather volatile economic times. The Roth IRA is a popular tax-minimizing strategy, as it allows for tax-free growth and withdrawals in retirement, and many people make it part of their long-term financial plan. Unfortunately, high-income earners are either limited or ineligible when it comes to Roth contributions. For 2021, that means single workers with incomes greater than $140,000 and couples with incomes greater than $208,000 can’t take advantage of Roth IRAs the way those under these thresholds can.

Fortunately, there are a few ways around this. A Backdoor Roth lets you convert a traditional IRA to a Roth – even if your income precludes you from contributing directly to a Roth – through what amounts to some intricate paperwork. The option we’ll discuss below, however, is a different type of tax-advantaged investment altogether. It’s called the Rich Person Roth and, though it’s not for everyone, it can be incredibly valuable for some high earners.

Common Estate Planning Mistakes to Avoid

Learn what not to do so you can maximize the assets you pass on to beneficiaries.
Wednesday, 21 April 2021

Common Estate Planning Mistakes to Avoid

As uncomfortable as it may be to think about the end of your life, we all want our assets and estate to go to the right people when we die. Taking steps now to provide for those you love can be a source of joy and comfort, and having a thoughtful estate plan in place can give you a sense of control over the inevitable.

Below, we’ll discuss nine common estate planning mistakes and what you can do to make sure your estate will be handled according to your wishes.

Some Assets You Need for Retirement Are Not About Money

7 Elements for a Happy and Healthy Retirement You May Not Know You’re Missing
Wednesday, 07 April 2021

Some Assets You Need for Retirement Are Not About Money

Retirement planning is a long game, possibly even one you’ve been planning and saving for since the day you received your first piggy bank. You’ve likely straightened out all your retirement assets like your 401(k)s, IRAs, property, and maybe you’ve even sold your business. You may be financially secure in retiring, but many retirees will tell you — that’s not the whole story.

There are several assets you’ll want for your retirement that are nowhere to be found in your financial portfolio. These are elements to a happy and healthy retirement that you can’t put a price tag on. Below we’ll discuss seven essential assets that money can’t buy (and the last one may truly surprise you)!

Six Strategies to Help You Prepare for Medical Costs in Retirement

Options for Taking Charge of Your Financial Future and Avoiding Costly Surprises
Wednesday, 24 March 2021

Six Strategies to Help You Prepare for Medical Costs in Retirement

Retirement is an exciting and rewarding phase of life for those who have planned properly. Chances are, you have been saving for it – and dreaming about it – for many years. If you’ve been strategic and disciplined, your retirement savings likely includes a plan for covering your health care needs, but did you know that a healthy adult retiring at age 65 will spend an average of $387,644 in health expenses for the remainder of their lifetime?

With such a hefty price tag, it is common to underestimate the amount you will need to save for medical costs in retirement. Below, we’ll discuss six strategies you can use to boost your savings and gain increased peace of mind.

Revisit Your Financial Plan After These Three Life Events

Manage Your Family Finances with These Three Milestones in Mind
Wednesday, 10 March 2021

Revisit Your Financial Plan After These Three Life Events

Your family’s financial needs naturally change and evolve over time, but life transitions make it especially important to revisit your financial plan. Life events like marriage, the birth of children, and sending your kids off to college bring significant financial ramifications. By planning for each of these milestones, you will be setting yourself up for success so you can enjoy the important events of your life as they happen without worrying about money matters.

Below we’ll examine three common life transitions and how they may impact a family’s financial plan.

8 Things to Know About an Inherited IRA from a Non-Spouse

Not All Inherited IRAs are Created Equal
Wednesday, 24 February 2021

8 Things to Know About an Inherited IRA from a Non-Spouse

If you’ve inherited an IRA, it’s important to know that not all inherited IRAs are the same. If you’ve inherited one from a non-spouse, you will need to be aware of a different set of rules. While not necessarily complicated, they differ enough from the standard IRA rules that it is worth it to understand what actions you can and cannot take. Below we’ll review eight things you should know as a non-spouse beneficiary of an inherited IRA.

Save Tax Money with Your Qualified Charitable Distributions

: How to Lower Your Adjusted Gross Income – and Your Tax Burden
Wednesday, 10 February 2021

Save Tax Money with Your Qualified Charitable Distributions

If you reached age 70 ½ in 2019 or age 72 in 2020 and you are financially comfortable in retirement, there is a way to relieve part of your tax burden. If you find you don’t need your full retirement income and you are being taxed every year from your IRA Required Minimum Distributions (RMDs), making a Qualified Charitable Distribution (QCD) from your IRA is a strategy to remove some of that tax burden.  

How to Get Started in ESG Investing

More and More Investors are Aligning Their Dollars with Their Values
Monday, 18 January 2021

How to Get Started in ESG Investing

2021 has arrived, and with it, the fresh start to a new year. It is a good time to rethink the investment landscape and take a closer look at avenues you may not have explored in years past. One investment strategy that has proven to have staying power in the last year is ESG, which stands for Environmental, Social, and Governance investing. This strategy allows investors to align their values with their dollars and support companies that align with what is most meaningful to them.

There is a misconception that making an ESG investment requires you to sacrifice earnings to make an investment based on your values. Over the past year, however, we’ve seen the market affected in many ways by COVID-19 and social equality movements, and the numbers have shown that sustainable ESG investments are not limiting portfolio growth but outperforming their counterparts instead.

Social Security Benefits for Ex-Spouses

Understanding Whether You’re Eligible to Benefits Based on Your Ex’s Earnings Record
Monday, 28 December 2020

Social Security Benefits for Ex-Spouses

Understanding the ins and outs of Social Security benefits can be a challenge, especially when it comes to special considerations like divorce and Social Security benefits for ex-spouses. If you are 62 or older and had a previous marriage that lasted at least ten years, and you have not remarried, it’s possible you are eligible to collect Social Security benefits based upon your ex-spouse’s earnings record. This rule can be a lifesaver if you don’t have a lot of qualifying earnings of your own, as it can put additional money in your pocket on a monthly basis.

Here’s what you need to know:

Is Early Retirement a Good Idea?

Why retiring early could be the best retirement goal for you
Monday, 14 December 2020

Is Early Retirement a Good Idea?

Is early retirement a good idea? To some people, it sounds like a dream come true, complete with lots of travel and time with family and friends while you’re still young and healthy enough to enjoy it fully. To others, it may seem risky and even irresponsible. Below we’ll discuss considerations to help you determine whether early retirement may be the right plan for you.

Retirement for Entrepreneurs

Tips for preparing for your retirement as an entrepreneur no matter where you are in your career
Monday, 30 November 2020

Retirement for Entrepreneurs

No matter what stage of your career you are in, if you are self-employed, your retirement should be a top priority. If you do not have any retirement savings in place, now is the time to create a portfolio that will start a steady cash flow into your retirement accounts. If you already have a jump start, it is important to ensure you are maximizing your potential. Whether you are early, mid-, or late-career, there are always ways to maximize your savings. Continue reading for tips catered to where you are in your career. 

 

Understanding the Tax Implications of Company Stock Compensation

What You Need to Know About Three Common Types of Equity Compensation
Monday, 16 November 2020

Understanding the Tax Implications of Company Stock Compensation

Many large companies now offer their executives company stock as a form of compensation. Stock compensation can make for a fantastic opportunity to build wealth, but it’s important to understand exactly what it means. There are both risks and tax implications to consider, which may vary depending upon the type of stock compensation you’re given. Below we’ll discuss the three most common forms of equity compensation – that is, non-cash pay – and review the implications of each.

 

Are You Prepared for the High Cost of Health Care in Retirement?

Too Many Retirees Fail to Properly Budget for their Health Needs
Wednesday, 30 September 2020

Are You Prepared for the High Cost of Health Care in Retirement?

Planning for retirement isn’t complete without budgeting, and it’s tempting to focus on all the fun things you’re planning – travel, golf, and spoiling your grandkids, to name a few. After all, you worked hard to make it to this point and it’s natural to want to enjoy your nest egg. You’ve earned it! However, your retirement budget will be about much more than your vacation bucket list and greens fees. In fact, much of it will go toward necessary costs, and chief among these is health care in retirement.

It’s probably not a surprise to you that health care won’t be a minor line item in your retirement budget. Much has been made in recent years of the fact that retirees can expect to pay hefty sums for medical care, even after they become eligible for Medicare at age 65. A recent study by Fidelity showed that a 65-year-old couple retiring in 2020 will pay nearly $300,000 in health care costs over their lifetime.

That number can certainly feel overwhelming. So, where’s a soon-to-be retiree to begin? Below we’ll cover three steps you can take to plan ahead, as well as minimize your health care expenses in retirement.

Understanding How Different Types of Retirement Savings Are Taxed

Creating a Tax-Efficient Retirement Plan Can be More Complex Than You May Think
Wednesday, 09 September 2020

Understanding How Different Types of Retirement Savings Are Taxed

If anyone ever describes the United States Tax Code as “simple” or “straightforward” then it’s a clear sign they know very little about it! In truth, it is one of the most complex administrative codes in the world, and this becomes all the more accurate when you’re about to retire and you have to determine how your various sources of retirement savings income will be taxed. (Spoiler alert: many of them will have different tax treatments!)

Below, we will review the different types of retirement savings and how the IRS taxes each one. In doing so, we hope to give you a sense of what you might owe, as well as whether it makes sense to adjust your retirement savings strategy.

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