Financial Planning Advice and Strategies in the Wealth Accumulation Stage

 

Well established now in your career or business with a family and home that are happy and comfortable, you can’t jeopardize any of this by not planning your finances. Financial security in the future requires careful thought and meticulous implementation now, so that your family and you are free from financial burden in the years to come.

At Plan & Act, our easy-to-use online financial planning system follows a tried and tested approach that has delivered great results for people just like you. Here’s a brief summary of just some of the ways that we can help:

·         Value Based Life Planning - We’ll work with you to help create a context for your financial plan; we’ll get you started by listing your most important personal goals.

·         Your Current Financial Status & Plan Summary - This involves implementing the core strategy of wealth conservation. We also recommend that over the next five years or so from the time you implement your financial plan, you must use the Net Worth, Income, Portfolio, Real Estate, and Amortization benchmarks to measure progress on your Wealth Conservation Plan.

·         Cash Flows / Budgeting - We can brainstorm with you some realistic ways to reduce spending and increase saving so that you can ensure at least 10% of your gross income is saved for your future.

·         Tax Planning - We can devise effective tax planning strategies to create opportunities for Roth Conversions. Our recommendation is to repeat the strategy that works for you until you have as much money as possible growing tax free and perhaps protected from creditors in Roth IRAs. If you do have any investments on which you are facing or have incurred capital losses, we’ll show you ways to liquidate them. In order to avoid the capital gains tax without using your harvested tax losses, we may advise that you strategically gift highly appreciated securities to charity or a to a family member who falls into a lower tax bracket.

·         Functional Asset Allocation (FAA) - We’ll talk to you about your projected retirement income and help come up with a figure for how much you should maintain in your checking or savings accounts as cash reserves. You also need to account for an emergency fund. If there is a benefit in pulling some equity out of your home with a longer period fixed rate mortgage, we may help you work that out. 

·         Traditional Asset Allocation - How do you liquidate individual stocks in a tax efficient manner? We can show you. Also, think about building a bond ladder to fund any living expenses not covered by Social Security or other non-portfolio sources of income. Plan wisely for investing the equity allocation of your portfolio and buy interest-earning assets such as bonds and bond mutual funds inside your tax sheltered accounts where the gain will be tax deferred. Most of our customers in this wealth accumulation stage of life stand to gain from buying capital gain assets with the highest potential return, such as equities and equity mutual funds inside their Roth IRA accounts where the gains continue to grow tax-free. Of course, once you’ve maximized the capacity of Roth IRAs, you can buy capital gain assets in taxable brokerage accounts where they will be subject to lower capital gains rates and you will be able to control taxable events.

With all of this advice and professional financial planning assistance you should be in a very good position to visualize how your functional asset allocation and security selection will look when complete.

Take the first step towards your objective financial plan and investment advice—Like Us on Facebook and get your FREE Financial Assessment by the experts at Plan & Act. Our online financial planning tool is available to you for a low $199 only. If you are not completely satisfied with your personalized financial plan, your cost will be refunded in full.

* Plan & Act is a registered Fiduciary Financial Advisor. This ensures the financial advice you receive from us is objective, unbiased, and protects your financial interests.