Along with the protection offered through insurance and the goal setting provided by investment choices, money management strategies can help manage savings on a daily basis.
From mortgage payments to tax savings, a strategy for managing money effectively involves a consideration of individual contexts.
- Estate Planning
- Tax Planning
- Succession Planning
- Financial Planning for Business Owners
- Business Succession Planning
Depending on an individual’s stage of life, chances are that person has a distinct approach to saving. New graduates or young couples have different needs than retirees or mid-career families. But no matter the situation, a financial planner can help develop financial habits that can lay a strong foundation for savings.
Younger individuals and couples have a number of benefits in terms of financial management. A long investment horizon, combined with few responsibilities, can make for an excellent financial base. A strong financial plan builds on these advantages, while at the same time considers the impacts of a debt load that might include student loans, car payments, or perhaps a mortgage.
Couples planning for a first child enter into a new level of commitment—both personally and financially. Learn how to save for a child through specialized insurance and investment products, such as a 529 Qualified Tuition Plan.
Mid-career professionals typically have higher incomes than younger investors—but they also carry more responsibilities. From mortgage payments to a child’s education, consider a financial plan that balances needs with obligations.
Retirees have worked hard at their careers, and now is the time for relaxation and celebration. Chances are children have moved from home, the mortgage is mostly paid off and a few investments are coming to fruition. However, income levels may have dropped after retirement. Find out how to manage finances in a way that allows full enjoyment of the fruits of a career of hard work.
In short, no matter an individual’s life stage, it is important to balance savings and investing with other commitments.
For some people, financial planning is mainly concerned with how best to go about building a nest egg, and how to make it last through retirement. But for many, there is a desire to ensure their estate delivers benefits beyond their own retirement and produces a lasting legacy even after they have passed.
Why Estate Planning is important
If you wish to leave behind a lasting legacy, whether it’s for family and loved ones or a charitable institution, then you need to put a well-thought-out Estate Plan in place, so your legacy is established in accordance with your wishes. Without such a Plan, strangers (the State, Lawyers, or individuals that don’t have your interests in mind) could determine what happens to your Estate.
If you wish to ensure that you are in control of what happens to your estate, and if you want to manage that your estate is handled in accordance with your directives, then having an Estate Plan is paramount.
What we can do for you
Estate Planning service considerations:
- Helping you understand the importance of a will: Your will should be the cornerstone of your Estate Plan. We can help you understand why and how you can structure this document so your legal team can create a will that seeks to reflect how you want your Estate disposed of. From a simple will to a Testamentary Will, or Joint Wills and Living Wills – legal experts will help you navigate through the complexities.
- Creating Powers of Attorney (POA): Whether it’s to manage specific assets, like your investments, bank accounts, or real estate holdings after your gone; or whether it’s meant to help others make health-care decisions in your best interest in case you are ill or incapacitated, you need to have a POA in place to address your wishes are followed. A well-crafted POA can also smoothen how decisions about your final arrangements, and those related to your estate, are managed once you pass.
- Choosing Executors: The Executors of your Estate wield strong powers that determine how your Estate is finally dealt with upon your passing. We’ll help you understand the importance of choosing an executor (s) for your Estate, and what criteria you should consider when appointing someone to discharge this all-important role – especially if minor children/guardians are involved.
- Designating beneficiaries: If you don’t choose beneficiaries for your assets carefully (or not at all!), your estate assets might well end up in the hands of individuals that you never intended should benefit from them.
- Considerations for dependents needs: A well-thought-out Estate Plan can manage the needs of your dependents (be they minors, adult children, siblings, persons with special needs, or aging parents) are addressed in accordance with your desires.
- Tax planning considerations (in an effort toward minimizing Estate taxes and reducing probate fees): Without a well-thought-out Estate Plan, a considerable part of your estate could erode through taxes, fees, and other levy’s, even before your designated beneficiaries see a cent!
- Protecting your estate: Though you might no longer be here, many of your assets – like your long-term investments, property, and other tangible assets – will likely need care, protection, and management until they are finally disposed of, and the proceeds distributed to your designated beneficiaries. In the absence of an Estate Plan, your assets will likely not receive the type and level of protection those assets require.
- Health and welfare considerations: A comprehensive Estate Plan contains several components, including directives to your Executors and POA-holders about what to do in case your health (mental or physical) deteriorates. In the absence of those components of your Estate Plan, decisions impacting your health and welfare might be made by others (likely medical professionals or state-appointed representatives) whom you do not trust.
- Distributing your assets/legacy: Without proper Estate planning, your assets might not be distributed in line with your final wishes. And because creating legally-binding wills and ensuring the Estate Plan is in sync with the Will is essential to ensure proper distribution of your estate.
Heath Wealth Management, LLC. and LPL Financial do not provide legal advice or services. Please consult your legal advisor regarding your specific situation.
No one likes taxes. But the advice of a financial planner can help with the selection of products and services.
Charitable contributions, life insurance policies, and investment products purchased through products like 401(k) Retirement plans or 592 Qualified Tuition Plans can all be useful tools in an effective tax strategy. It is important to design a tax plan that fits one’s personal needs.
Choose from a variety of products and services, such as:
- Income-splitting for spouses or common-law couples.
- Charitable donations, which benefit important not-for-profit work and may allow donors to maximize tax credits.
- Life insurance products that build tax-advantaged capital for retirement.
- Investment products that provide for tax benefits, such as those purchased through 401(k) Retirement Plans or 529 Qualified Tuition Plans.
Contact us today to learn more about tax-planning products and services that are specifically tailored to your needs.
Preparing for succession after death is a difficult issue to discuss, but it is also an important part of any comprehensive financial plan.
A financial planner can help individuals and their loved ones approach succession planning in a constructive manner that hopes they avoid problems and are well cared for in the event of death. The process involves two main considerations: life insurance and preparing a will.
Life insurance can ease the financial burden and provide resources for loved ones in the event of death. A lump-sum payment can be used for mortgage costs or to supplement lost income, helping successors during a difficult period. Financial resources and stability can make it easier to cope with the loss of a loved one.
A written will provides a means to guide loved ones through the succession process. By naming executors and providing instructions on the distribution of an estate, surviving loved ones avoid having to guess the wishes of the deceased. Rather than state law determining how assets are to be divided—a situation that can result in lengthy court proceedings—a clear, carefully considered written will provide clear instructions to successors. Save loved ones the stress of dealing with financial issues by planning for succession as soon as possible.
Contact us today to discuss succession planning in more detail.
Buying a home can be an exciting purchase—but it is also a big decision that will have a major impact on financial planning. Whether a one-bedroom condominium or a five-bedroom house, a well-planned a mortgage strategy must fit its owner’s unique needs and other financial responsibilities.
From choosing the right time to buy a house to deciding whether it is even a good idea, a financial planner can help with this important decision. Assessing all the costs involved—from taxes to renovations—can help determine whether taking out a mortgage makes sense.
If you are considering taking out a mortgage, contact us today to discuss how to do so in a way that best fits your situation.
Financial Planning for Business OwnersTOP
Business owners face unique challenges—and opportunities—in terms of financial planning. It takes hard work and careful planning to develop ideas into a successful business: continue that tradition by choosing a financial planning strategy that takes advantage of your unique situation.
For business owners who are considering moving to self-employment, a comprehensive plan can help with the adjustment from a situation where a previous employer might have provided benefits, such as health or life insurance or a company pension. Life and disability insurance can be difficult to purchase at first since many insurers want two years of tax results. As well, self-employed people can gain tax write-offs for some health insurance premiums.
For new business owners, a financial planner can help negotiate a bank loan or line of credit to help fund office space, materials, and other business investments. Explore options to effectively manage these start-up expenses.
No matter what stage of growth your business is in, contact us today to pursue a tax-efficient business planning strategy.
Business Succession PlanningTOP
After working hard to develop a business, it is important to also enjoy the results. Many entrepreneurs spend years of focused effort building up a business, but then fail to consider how to make the transition to retirement. A financial planner can offer professional advice in an effort to plan an effective business succession strategy.
For family businesses, a formal management succession strategy can help a business stays in the family over generations. Depending on the level of involvement of family members, alternative bequests can help make decisions with those who do, and those who not, want to continue being involved in the family business.
Entrepreneurs can work to turn equity in the business into capital that can be used to fund retirement. Business owners can design tax-effective retirement strategies, such as using life insurance policies, paying business founders a salary, or arranging for an heir or heirs to slowly buy up ownership shares.
Life insurance is a consideration when planning business succession. If the founder is nearing the end of his or her life, a well-planned life insurance policy can help successors transition into business owners. Upon death, successors face estate taxes on business values of more than $500,000—with the tax-free amount potentially offset by any capital business losses the owner declared during his or her lifetime. Life insurance is one way that successors can cover the remaining amounts.
Smaller businesses may not need to pay estate taxes, but can still benefit from a plan that ensures an equal legacy for their successors. A financial advisor can help entrepreneurs plan an inheritance that is fairly distributed among all loved ones.
Contact us today to discuss strategies for business succession.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax-free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.
This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation, or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims-paying ability of the issuing company.