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July 2023

Jul 31

WILL POWER

By Uncategorized

Only one-third of adults have an estate strategy document such as a will in place, which may not be entirely surprising. No one wants to be reminded of their own mortality or spend too much time thinking about what might happen once they’re gone.1

But a will is an instrument of power. Creating one gives you control over the distribution of your assets. If you die without one, the state decides what becomes of your property without regard to your priorities.

A will is a legal document by which an individual or a couple (known as “testator”) identifies their wishes regarding the distribution of their assets after death. A will can typically be broken down into four main parts.

1. Executors – Most wills begin by naming an executor. Executors are responsible for carrying out the wishes outlined in a will. This involves assessing the value of the estate, gathering the assets, paying inheritance tax and other debts (if necessary), and distributing assets among beneficiaries. It’s recommended that you name at least two executors, in case your first choice is unable to fulfill the obligation.

2. Guardians – A will allows you to designate a guardian for your minor children. Whomever you appoint, you will want to make sure beforehand that the individual is able and willing to assume the responsibility. For many people, this is the most important part of a will since, if you die without naming a guardian, the court will decide who takes care of your children.

3. Gifts – This section enables you to identify people or organizations to whom you wish to give gifts of money or specific possessions, such as jewelry or a car. You can also specify conditional gifts, such as a sum of money to a young daughter, but only when she reaches a certain age.

4. Estate – Your estate encompasses everything you own, including real property, financial investments, cash, and personal possessions. Once you have identified specific gifts you would like to distribute, you can apportion the rest of your estate in equal shares among your heirs, or you can split it into percentages. For example, you may decide to give 45 percent each to two children and the remaining 10 percent to a sibling.

The law does not require that a will be drawn up by a professional, and some people choose to create their own wills at home. But where wills are concerned, there is little room for error. You will not be around when the will is read to correct technical errors or clear up confusion. When you draft a will, consider enlisting the help of a legal or financial professional, especially if you have a large estate or complex family situation.

Preparing for the eventual distribution of your assets may not sound enticing. But remember, a will puts the power in your hands. You have worked hard to create a legacy for your loved ones. You deserve to decide what becomes of it.

If you have questions about your finances, take advantage of American Wealth Management’s 1-hour no-cost financial consultations. Submit this form to us and we will contact you to schedule a video call with one of our advisors.

 

American Wealth Management Reno, Nevada

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1. Caring.com, 2023

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Investment advice offered through American Wealth Management (“AWM”), a SEC-registered investment adviser. Certain personnel of AWM may also be registered representatives of M.S. Howells & Co. (“MSH”), Member FINRA/SIPC, a registered broker-dealer, and therefore, may offer securities through MSH. AWM and MSH are not affiliated entities. M.S Howells does not provide tax or legal advice. Please consult your legal or tax advisor regarding your individual situation.

Jul 21
financial planners in Reno Nevada

Essential Services Offered by Financial Advisors in Reno 

By Uncategorized

Money still doesn’t grow on trees, but financial advice certainly does. Today, we are awash with financial information. 

Ironically, though, average adults in the U.S. aren’t as informed on good and bad financial practices as you might think. 

According to the P-Fin Index, an annual survey developed by the TIAA Institute and the Global Financial Literacy Excellence Center, there is room for improvement when it comes to financial literacy. Their 2023 survey showed that “On average, U.S. adults correctly answered only 48% of the 28 index questions in 2023.”

Needless to say, the ambiguity created by a flood of financial information combined with weak financial literacy can be a real stumbling block to managing finances, mitigating risk, and achieving financial health. 

So, who can help? Enter, financial advisors. 

Financial advisors provide personalized guidance and expertise that helps individuals make informed financial decisions, manage their investments, plan for the future, and navigate more complex financial situations.

To learn more about how financial advisors help you figure out your finances, read on! 

How Financial Advisors Help With Financial Planning 

Hold on—what’s a financial plan?  

First, your advisor can help you make a financial plan. A financial plan is a money roadmap that outlines where you are financially (income, expenses, debt, assets, etc.) and where you want to be. 

How can financial advisors help? 

Financial planners will help you evaluate your financial goals (or help you make some), taking into account your income, expenses, assets, and liabilities. Based on their assessment, they can create a personalized financial plan tailored to your needs. They can also assist you with budgeting and cash flow management. 

Financial advisors help you plan for the future.

One of the most important services financial advisors provide is retirement planning. They’ll help you set goals around retirement and course correct if you need to. They can also offer valuable insights and assistance in education planning. 

With their expertise, financial advisors empower you to make informed decisions and secure a brighter financial future.

How Financial Advisors Help With Investment Management 

First, why get help with investment management? 

Investing allows you to grow your wealth and potentially generate income beyond what can be achieved through traditional savings methods.

Whether or not someone achieves financial freedom may come down to how they manage their portfolio of investments. This is an area where financial advisors can be real game changers. 

How do financial advisors help manage your investments? 

Financial advisors can conduct portfolio analysis to help you assess the performance and composition of your investments, judge the risk and return profile of your portfolio, and make informed decisions about your asset allocation and investment strategies.

Your financial advisor will tailor their approach to your unique financial situation and risk tolerance. They’ll work closely with you to determine the optimal mix of investments that align with your goals. 

How do financial advisors monitor growth and mitigate risk over time? 

The stock market is volatile, as well as the value of other assets like your home. Your financial advisor understands the importance of managing risk effectively and helps you navigate potential pitfalls. 

Additionally, financial advisors diligently monitor and rebalance your portfolios, ensuring that your investments remain aligned with your objectives over time.

How Financial Advisors Help With Taxes and Tax Planning 

Wait, can you plan your taxes? 

Yes. Tax planning refers to the process of strategically managing your financial affairs to optimize your tax liability. Doing your own taxes requires anywhere from some to quite a bit of knowledge of the tax code, which is available to the public. 

How can a financial advisor help me with my taxes? 

Your financial advisor can be a tremendous help in identifying tax-saving opportunities tailored to your unique circumstances. 

They can ensure you take advantage of available deductions, credits, and incentives so that you’re not overpaying or loaning money unnecessarily to the government until you get your tax return. 

By leveraging their knowledge of the tax code, they help maximize deductions and credits, potentially reducing your tax liability. Financial advisors also provide guidance on strategic tax planning for investments, suggesting tax-efficient investment strategies that can minimize the impact of taxes on your investment returns. 

What about estate taxes? 

Financial advisors can also help you manage the tax implications of estate planning. That is, helping you navigate estate tax considerations when planning how to transfer assets to your beneficiaries. 

How Financial Advisors Help With Insurance Planning 

Why get help choosing an insurance policy?

There are a lot of insurance plans out there and choosing the right one can be overwhelming. Financial advisors can help you evaluate your insurance needs and recommend suitable coverage. 

With their knowledge and personalized recommendations, financial advisors empower you to make informed decisions, offering peace of mind and financial protection for the future.

How financial advisors can help you plan your life insurance. 

One of the major forms of insurance financial planners can help with is life insurance. Financial advisors can help you determine the right coverage amount and policy type to ensure financial security for your beneficiaries in the event of death. 

Disability and long-term care insurance.

Financial advisors help you choose a disability insurance that’s right for you, so you’re protected if you’re unable to work due to illness or injury. Further, they can provide expertise in long-term care insurance, so you’re prepared for potential long-term care and any associated costs. 

How Financial Advisors Help You With Estate Planning 

What does getting help with your estate planning look like? 

Financial advisors assist with estate planning by creating/updating wills and trusts, minimizing estate taxes, ensuring smooth asset transfer, and providing charitable giving strategies. They help you document their wishes, legally bind them, and minimize tax implications on their estate. 

How do financial advisors help you distribute your assets in the event of death? 

Financial advisors guide individuals through the probate process or the process of distributing your assets to your beneficiaries after you die. They also help align philanthropic goals with the estate plan. With their expertise, financial advisors enable individuals to achieve their estate planning objectives and leave a legacy that reflects their values.

How Financial Advisors Support You With Business Planning 

How can a financial advisor help me with my business? 

Financial advisors play a pivotal role in business planning, providing comprehensive support throughout an entrepreneur’s journey. They assist with business formation and structure, ensuring legal and financial frameworks are properly established. 

Can I hire a financial advisor to help facilitate changes to the business?

Absolutely. Financial advisors can help you develop business succession plans, facilitating a smooth transition of ownership and management. 

What about growing my business? Can they help me there?

They can help with that too. Financial advisors provide valuable advice on business expansion and acquisitions, evaluating growth strategies and potential opportunities. Their expertise can help you make informed decisions, optimize business operations, and navigate the intricacies of business planning for long-term success.

Specialized Services Financial Planners Can Assist With 

Financial advisors can address a wide range of unique financial needs beyond financial planning and investment management. 

They assist with divorce financial planning, guiding individuals through the financial complexities of divorce.

Stock option planning is another area where they provide expertise, helping employees maximize the benefits of their stock options. 

Financial advisors also offer trust services, advising on trust creation and management. In philanthropic planning, they help individuals align charitable goals with their financial plan. 

Takeaways About Services Financial Planners Offer 

In summary, financial advisors offer the following key services:

  • Financial Planning: Creating personalized financial plans.
  • Investment Management: Portfolio analysis and asset allocation.
  • Tax Planning: Identifying tax-saving opportunities.
  • Insurance Planning: Evaluating insurance needs.
  • Estate Planning: Creating wills and trusts.
  • Business Planning: Assisting with business formation.

These services provided by financial advisors are designed to help individuals make informed decisions, optimize their financial strategies, and work towards their financial goals with confidence.

If you have questions about your finances, take advantage of American Wealth Management’s 1-hour no-cost financial consultations. Submit this form to us and we will contact you to schedule a video call with one of our advisors.

American Wealth Management Reno, Nevada

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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Investment advice offered through American Wealth Management (“AWM”), a SEC-registered investment adviser. Certain personnel of AWM may also be registered representatives of M.S. Howells & Co. (“MSH”), Member FINRA/SIPC, a registered broker-dealer, and therefore, may offer securities through MSH. AWM and MSH are not affiliated entities. M.S Howells does not provide tax or legal advice. Please consult your legal or tax advisor regarding your individual situation.

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1. Ameriprise.com, 2023.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Investment advice offered through American Wealth Management (“AWM”), a SEC-registered investment adviser. Certain personnel of AWM may also be registered representatives of M.S. Howells & Co. (“MSH”), Member FINRA/SIPC, a registered broker-dealer, and therefore, may offer securities through MSH. AWM and MSH are not affiliated entities. M.S Howells does not provide tax or legal advice. Please consult your legal or tax advisor regarding your individual situation.

Jul 17
understanding-equity-compensation

Understanding Equity Compensation

By Uncategorized

Ownership Benefit

Employers do what they can to foster a sense of ownership in their employees. After all, if you stand to benefit from a company’s success, you’re more likely to do a great job for them, or so the logic goes.

So, when you are hired for a job or promoted within your existing company, you might be offered some sort of ownership benefit. You might even get to decide whether to take all of your pay in cash or to use some of your pay to purchase equity in the company.

At first glance, the answer might seem simple: Show me the money! However, there are situations in which an equity position may make more financial sense. Finding that line is key to getting the most compensation from your career.

What do you need to know, then, to ask the right questions?

In some cases, employees have the choice to buy company stock in a tax-deferred retirement plan sponsored by their employer, the most common of which is the 401(k). In other instances, there may be other ways to buy into ownership.

Why is a retirement plan choice important?

Well, the point of these retirement accounts is that you’re not paying tax on money today but rather at some point in the future when you take a distribution. If you are taking a distribution from the sale of stocks in your 401(k), you may have the choice of treating the appreciated securities as ordinary income or using the net unrealized appreciation (NUA) tax treatment.

It’s critical to point out that the NUA choice only works when you buy stocks that are kept in your workplace retirement account. The NUA election isn’t available for other types of accounts.

With an NUA, when you take this type of in-kind distribution (payment in the form of securities rather than cash), the rules are complex. So keep in mind that this article is providing a high-level overview and is not a replacement for real-life advice regarding assets held in your retirement account. You should consult a tax professional with an understanding of distribution rules before modifying or adjusting a distribution strategy.

There are several benefits to using an NUA with a distribution. For example, when securities are sold, any NUA is taxed at a long-term capital gains rate, which may be lower than an ordinary income tax rate. So, an NUA approach may help you manage your tax bill.1

However, there are limitations, too. The NUA decision must be weighed against the potential market risk of holding a single stock upon distribution.1

Once you reach age 73, you must begin taking required minimum distributions (RMD s) from your 401(k) or any other defined contribution plans in most circumstances. Withdrawals from your 401(k) or any other defined contribution plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10 percent federal income tax penalty.

Each of these scenarios might feel complicated, or even confusing, but there’s good news. You have a financial professional in your corner who may be able to offer insights into your overall compensation strategy. Their assistance may be key in helping you make decisions about whether to add equity to your retirement assets.

If you have questions about your finances, take advantage of American Wealth Management’s 1-hour no-cost financial consultations. Submit this form to us and we will contact you to schedule a video call with one of our advisors.

American Wealth Management Reno, Nevada

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1. Ameriprise.com, 2023.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Investment advice offered through American Wealth Management (“AWM”), a SEC-registered investment adviser. Certain personnel of AWM may also be registered representatives of M.S. Howells & Co. (“MSH”), Member FINRA/SIPC, a registered broker-dealer, and therefore, may offer securities through MSH. AWM and MSH are not affiliated entities. M.S Howells does not provide tax or legal advice. Please consult your legal or tax advisor regarding your individual situation.

Jul 03

Retiring Earlier Than Expected? What To Know

By Uncategorized

Many Americans, through circumstances beyond their control, find themselves needing to retire earlier than anticipated. Whatever the circumstances, it’s difficult not to feel wrongfooted and hurried by the situation. However, it’s important to get yourself back on track as soon as possible. Here are some things to consider as you make the transition:

Don’t Make Fast Decisions

When dealing with a sudden transition like this, it can be tempting to make some sort of hasty decision. But reacting too quickly might hinder your ability to reorient yourself. Unless something is truly urgent, it’s often best to give yourself some space to think about your new life and carefully consider all your available choices. Take the time to organize your thoughts and to put your important documents in order. At the end of that period, you can look at things in a cool, calm way.

Work, if Possible

The American Association of Retired Persons (AARP) states that 56 percent of workers aged 50 and over have faced some sort of unplanned departure from work for various reasons, ranging from health issues or caring for an infirm relative to redundancy . Finding yourself out of work in your 60s can be discouraging, but it’s also true that age is not the barrier it once was. In fact, it’s not unusual for companies to seek an experienced hand to be a consultant or to train the next generation working in a particular field. While it may be part time or even temporary, if you are able to work, you may find great satisfaction in that opportunity, not to mention additional income.

What to Consider with Tax-Deferred Accounts

Your retirement strategy likely includes some form of tax-deferred account. If so, making withdrawals is one choice to consider. For example, if you are not working, you may be in a lower tax bracket than before. But keep in mind that penalties might apply, depending on your age.

This article is for informational purposes only and is not a replacement for real-life advice. Make sure to consult with your financial and accounting professionals before accessing any tax-deferred account.

Is Social Security a Factor?

The longer you delay taking your Social Security payments, the greater they will be. While Americans have an opportunity to start taking payments as early as age 62, the payments will not reflect the amount you could be getting at full retirement age. Starting at 62 may be a consideration for those who need the income or have some other urgent need, such as being in poor health.

Making an unexpected change can bring changes to your overall retirement strategy. However, it’s important to remember that it’s likely your financial professional has worked with other people in similar circumstances. This might be one of those times when it’s good to have someone who can help provide some guidance.

If you have questions about your finances, take advantage of American Wealth Management’s 1-hour no-cost financial consultations. Submit this form to us and we will contact you to schedule a video call with one of our advisors.

American Wealth Management Reno, Nevada

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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Investment advice offered through American Wealth Management (“AWM”), a SEC-registered investment adviser. Certain personnel of AWM may also be registered representatives of M.S. Howells & Co. (“MSH”), Member FINRA/SIPC, a registered broker-dealer, and therefore, may offer securities through MSH. AWM and MSH are not affiliated entities. M.S Howells does not provide tax or legal advice. Please consult your legal or tax advisor regarding your individual situation.

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