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Catherine Bennett

Apr 22

Caring for Aging Parents

By Uncategorized

Thanks to healthier lifestyles and advances in modern medicine, the worldwide population over age 65 is growing. In the past decade, the population of Americans aged 65 and older has grown 38% and is expected to reach 94.7 million in 2060. As our nation ages, many Americans are turning their attention to caring for aging parents.1

For many people, one of the most difficult conversations to have involves talking with an aging parent about extended medical care. The shifting of roles can be challenging, and emotions often prevent important information from being exchanged and critical decisions from being made.

When talking to a parent about future care, it’s best to have a strategy for structuring the conversation. Here are some key concepts to consider.

Cover the Basics

Knowing ahead of time what information you need to find out may help keep the conversation on track. Here is a checklist that can be a good starting point:

  • Primary physician
  • Specialists
  • Medications and supplements
  • Allergies to medication

It is also important to know the location of medical and estate management paperwork, including:2

  • Medicare card
  • Insurance information
  • Durable power of attorney for healthcare
  • Will, living will, trusts, and other documents

Be Thorough

Remember that if you can collect all the critical information, you may be able to save your family time and avoid future emotional discussions. While checklists and scripts may help prepare you, remember that this conversation could signal a major change in your parent’s life. The transition from provider to dependent can be difficult for any parent and has the potential to unearth old issues. Be prepared for emotions and the unexpected. Be kind, but do your best to get all the information you need.

Keep the Lines of Communication Open

This conversation is probably not the only one you will have with your parent about their future healthcare needs. It may be the beginning of an ongoing dialogue. Consider involving other siblings in the discussions. Often one sibling takes a lead role when caring for parents, but all family members should be honest about their feelings, situations, and needs.

Don’t Procrastinate

The earlier you begin to communicate about important issues, the more likely you will be to have all the information you need when a crisis arises. How will you know when a parent needs your help? Look for indicators like fluctuations in weight, failure to take medication, new health concerns, and diminished social interaction. These can all be warning signs that additional care may soon become necessary. Don’t avoid the topic of care just because you are uncomfortable. Chances are that waiting will only make you more so.

Remember, whatever your relationship with your parent has been, this new phase of life will present challenges for both parties. By treating your parent with love and respect—and taking the necessary steps toward open communication—you will be able to provide the help needed during this new phase of life.

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. ACL.gov, November 2022
2. Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies.

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 2024 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.

Apr 15

Women and Wealth: A Pivot Towards Retirement

By Uncategorized

Retirement is a significant transition, and it can bring both challenges and opportunities for women who have spent many years focused on their careers. For women approaching retirement age, it is crucial to consider various tips and strategies to ensure a smooth and fulfilling transition. An elegant pivot from work life to a life of one’s own requires careful consideration. A woman retiring at 65 may live another two decades or more. That’s not only a long time to finance, it’s also a long time to figure out how to fill your life with meaningful activities.1

A Change of Identity

Retirement can change a woman’s identity, especially those who have worked in the same profession for many years. Exploring new interests and finding a new sense of purpose could involve taking on a new job title, pursuing a passion, or simply embracing new hobbies and activities. But you’ll enjoy your retirement more if you start thinking about establishing the new “you” independent of your career.

Addressing Your Finances

One of the first steps to take when preparing for retirement is to address financial matters. This includes reviewing your estate strategy, getting all necessary documents in order, and having contingency plans in place for the emergencies and the unexpected. Consider meeting with a financial professional before and after retiring to help establish that the appropriate steps are being taken.

Pivot to a New Career

For women concerned about their savings or Social Security benefits, considering part-time work, working from home, or starting a small business can provide income and social interaction. You have the choice here to ease into retirement while still keeping active and engaged. The Department of Labor says that women are more likely to work part time in retirement. Many part-time jobs may not have retirement plans, making it necessary to plan accordingly.1

Another option for women is volunteering. Many miss the engagement and challenge of the workforce, and volunteering allows them to dedicate their time to helping others while gaining personal fulfillment. Volunteering can be a way to stay connected to the community while making a difference.

Now that you have the time, why not try something new? Taking classes is also a way for women to continue learning and growing in retirement. Many courses covering various topics are available online or in person, allowing you to explore new interests and stay mentally active.

Focus on Your Health

Beyond addressing financial matters and finding ways to stay engaged, women must prioritize their health in retirement. This includes eating a balanced diet, exercising regularly, and getting the right amount of sleep. But your overall health includes more than just your physical body. Social engagement is also essential for happiness and health. Even for natural homebodies, spending time with others can have a positive impact.

It’s essential to remember that adjusting to retirement takes time. Transitioning into retirement can be a significant change for women who have dedicated many years to their careers. However, with careful preparation and consideration, women can make the most of this new phase of life. By addressing financial matters, finding ways to stay engaged, prioritizing health, and exploring new interests, women can embrace retirement as a new beginning and enjoy a fulfilling and rewarding experience. It is normal to experience a range of emotions after retirement, but these feelings will likely change over time. Being patient with yourself and understanding that it is a process may help alleviate frustration.

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

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 2024 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.

 

Mar 25

Safeguarding Your Legacy: What Is Estate Planning?

By Uncategorized

Estate planning may not be the first thing on everyone’s mind, but it’s a big part of responsible financial planning. Estate planning isn’t just about safeguarding your wealth; it’s about making sure your wishes are carried out and your loved ones are protected in the future.

What Is Estate Planning?

In essence, estate planning is the process of organizing your assets, liabilities, and wishes for their distribution after your passing. It encompasses various elements, including:

  • Asset allocation: Choosing who inherits your belongings, from real estate and investments to personal possessions.
  • Beneficiary designation: Specifying who receives the proceeds from your retirement accounts, life insurance policies, and other designated assets.
  • Guardianship and healthcare directives: Appointing individuals to make decisions on your behalf if you become incapacitated, ensuring your medical wishes are respected.
  • Tax minimization strategies: Implementing structures to reduce the tax burden on your estate and maximize the inheritance your loved ones receive.

Can’t I Handle My Estate Planning in My Will?

A will is a crucial component of estate planning, but it may not be enough to accomplish all your goals.
Here’s why:

What a will can do:

  • Distribute assets: A will allows you to specify who inherits your belongings after your death, reducing potential confusion and conflict among beneficiaries.
  • Appoint guardians: You can designate individuals to care for minor children and manage their assets if you’re no longer able.

Limitations of a will:

  • Probate: Wills typically go through probate, a court process that can be time-consuming, costly, and public.
  • Limited control: A will doesn’t offer much control over how and when assets are distributed.
  • Ineffective for certain assets: Assets held jointly or with beneficiary designations bypass a will and transfer automatically.

Where a will falls short:

  • Complexities: If your estate is substantial or involves intricate family dynamics, a will alone might not provide sufficient clarity and control.
  • Tax Minimization: Wills offer limited opportunities for minimizing taxes on your estate.
  • Incapacity planning: A will doesn’t address situations where you become incapacitated and need someone to make financial or medical decisions on your behalf.

Navigating the Complexities:

Estate planning can involve intricate legal and financial considerations. Consulting with a qualified professional like a Certified Financial Planner™ (CFP®) or Wealth Manager can be invaluable.

Such professionals possess the expertise to:

  • Assess your unique situation: A professional can meticulously analyze your assets, liabilities, family dynamics, and financial goals to develop a personalized plan.
  • Recommend suitable strategies: Based on your specific needs and objectives, a CFP® or Wealth Manager may suggest appropriate tools and structures, such as wills, trusts, and beneficiary designations.
  • Draft and implement your plan: A financial expert can work with legal professionals to ensure your documents are drafted accurately and are legally sound.
  • Provide ongoing guidance: As your circumstances evolve, a financier can help you review and update your plan to ensure it remains aligned with your evolving needs and goals.

Choosing the Right Guide: Financial Professionals for Estate Planning

While estate planning involves legal aspects, financial professionals like Certified Financial Planners™ (CFP®) and Wealth Managers can play a crucial role in the process. Their expertise complements that of legal professionals, providing comprehensive guidance throughout the journey.

Here’s what a financial pro can bring to the table:

  • Financial acumen: CFPs® and Wealth Managers possess in-depth knowledge of investment strategies, tax implications, and asset allocation, enabling them to recommend structures that optimize your estate’s value and minimize tax burdens.
  • Holistic planning: Financial professionals integrate estate planning with your overall financial goals, ensuring your plan aligns with your retirement aspirations, wealth preservation strategies, and risk management considerations.
  • An understanding of complex financial products: Experts can advise on incorporating complex financial instruments like trusts and life insurance policies into your estate plan, maximizing the plan’s effectiveness in achieving your objectives.
  • Collaboration with legal professionals: CFPs® and Wealth Managers work seamlessly with estate planning attorneys to ensure your plan is legally sound and effectively translated into enforceable documents.

Finding the Right Fit:

When looking for a financial professional for estate preparation, consider factors like:

  • Credentials and experience: Look for individuals with relevant designations like CFP® or ChFC (Chartered Financial Consultant) and demonstrable experience in estate-planning matters.
  • Investment philosophy: Choose a professional whose investment philosophy aligns with your risk tolerance and financial goals.
  • Fee structure: Understand their fee structure and ensure it aligns with your budget and expectations.

Consulting with a financial professional experienced in estate planning empowers you to make informed decisions and create a plan that effectively safeguards your legacy and fulfills your wishes for the future.

Taking the First Step:

Estate planning may seem daunting, but it doesn’t have to be. By initiating a conversation with a qualified wealth management professional, you can gain clarity, navigate the complexities, and ultimately, safeguard your legacy for the future of your loved ones.

American Wealth Management is a financial management firm in Reno, Nevada. You can engage a CFP® (Certified Financial Planner™) or another one of our qualified financial professionals simply by filling out our free consultation form.

Remember, estate planning is an investment in your family’s well-being and your own peace of mind. Don’t hesitate to take the first step toward securing your legacy and ensuring your wishes are honored.

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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.

Mar 18

The Financial Literacy Crisis

By Uncategorized

Making Financial Decisions

Imagine driving a car without a basic understanding of the rules of the road or even how to operate it. Scary thought.

Here’s another scary circumstance – one that is all too real. Many Americans are making financial decisions with minimal financial knowledge of investing, budgeting, and credit. The TIAA Institute conducted a survey on U.S. financial literacy, asking 28 basic questions about retirement savings, debt management, budgeting, and other financial matters. The average respondent answered only about half of the questions correctly.1

Another recent survey conducted by the Census Bureau found that almost 40% of Americans say that it has been somewhat or very difficult to pay for usual household expenses in the last seven days.2

It has been said that knowledge is power, and if that’s true, then too many Americans lack the power to control their financial futures. Financial success rarely happens by accident; it is typically the outcome of a journey that starts with education.

One of the obstacles to greater financial literacy is the so-called “Lake Wobegon effect.” In other words, we all consider ourselves above average, and based on that belief, it only follows that our financial understanding is above average. Unfortunately, this assumption has a flaw: it may discourage us from learning as much as we need in order to continue adapting to an ever-changing financial landscape.

The more informed we are, the more informed our financial decisions may become. Fortunately, we can consult a wide range of resources in pursuit of greater financial knowledge.

If you are committed to increasing your financial literacy, think about turning to financial professionals with your questions or visit a U.S. Treasury-sponsored website created for that very purpose.3

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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Mar 04
Understanding Tax Basics

10 Easy Tax Strategies to Maximize Your Return

By Uncategorized

When tax season rolls around, it’s easy to feel like doing the bare minimum. After all, taking advantage of all your deductions can be a complex and time-consuming process.

But you can be savvy and thorough in your tax filing—without the overwhelm. It just requires a little knowledge of the basics. Here are some tax strategies to maximize your return.

Understanding Tax Basics

Whether you’re a seasoned filer or tackling it for the first time, understanding some basic strategies can help you save money and maximize your refund.

Before diving into specific strategies, let’s clarify some key terms:

  • Tax planning: Tax planning is the process of analyzing your financial situation to minimize your tax liability. Finding all the things you’ve spent money on for which the U.S. government has said you don’t have to pay taxes.
  • Taxable income: This is the amount of your income subject to taxes after subtracting deductions and exemptions. The more legal deductions you can find, the smaller your taxable income becomes.
  • Standard deduction: This is a fixed dollar amount you can deduct from your taxable income without itemizing your expenses. It’s generally simpler than listing individual deductions.
  • Tax-deductible (adjective): “Tax-deductible” describes any expense that can be subtracted from your taxable income, potentially lowering your tax bill.
  • Tax credits: These are dollar-for-dollar reductions in your tax liability, potentially resulting in a lower tax bill or even a refund. The IRS website is a valuable resource for researching different tax credits and their eligibility criteria.

10 Tax-Saving Strategies

While there is some strategy to tax planning, the actual tasks and concepts involved are pretty straightforward. Here are some easy boxes to check when you sit down to file your taxes:

1. Embrace the Standard Deduction

The standard deduction is often more beneficial than itemizing deductions, especially for individuals with simpler tax situations. In 2024, the standard deduction for single filers is around $13,850. This means if your total deductions are less than this amount, taking the standard deduction saves you time and simplifies your filing process.

2. Boost Your Retirement Savings

Contributing to a traditional IRA or employer-sponsored retirement plan like a 401(k) allows you to deduct your contributions from your taxable income. For example, if you contribute $5,000 to your IRA, your taxable income is reduced by $5,000, potentially lowering your tax bill.

3. Claim Eligible Medical Expenses

Did you know that medical and dental expenses exceeding 7.5% of your adjusted gross income are deductible? So, if your adjusted gross income (total income minus certain adjustments) is $40,000 and your medical expenses totaled $3,500, you can deduct $1,250 (exceeding 7.5% of your income). Remember to keep receipts for these expenses.

4. Support a Charitable Cause

Donating to qualified charities allows you to deduct your contributions from your taxable income. For instance, if you donate $200 to a registered charity and your marginal tax rate is 25%, you effectively reduce your tax liability by $50 (200*.25).

5. Claim Dependents (If Applicable)

Financially supporting qualifying dependents like children or elderly parents can entitle you to additional tax benefits. Depending on the dependent’s age and your income, this could significantly reduce your tax liability.

6. Take Advantage of Student Loan Interest Relief

Paying student loan interest can be a burden, but there’s a silver lining: You may be eligible to deduct a portion of the interest paid on your federal taxes. Check the IRS website for eligibility details and potential tax savings.

7. Explore Tax Credits

Low- and middle-income earners might qualify for valuable tax credits like the Earned Income Tax Credit (EITC). This refundable credit can significantly reduce your tax bill or even result in a refund. Research the IRS website to see if you qualify for this and other potential tax credits.

8. Understand Divorce and Taxes

If you’re recently divorced, understand the tax implications. Alimony payments made to your ex-spouse are generally tax-deductible for you, while they are considered taxable income for your ex-spouse. Consulting a tax professional can ensure you’re navigating these specific tax considerations correctly.

9. Go Electronic (E-Filing)

E-filing is not only faster and more secure than paper filing, but it also reduces the risk of errors and can expedite your refund. Most tax software platforms offer user-friendly e-filing options.

10. Stay Informed and Seek Help

The IRS website is a treasure trove of information on tax benefits and deductions. Additionally, consider consulting a tax professional for personalized advice tailored to your unique circumstances. Tax professionals can help you navigate the complexities of tax filing and ensure you’re taking advantage of all the benefits to which you’re entitled.

Remember, even small tax-saving strategies can make a big difference. By understanding these basic concepts and exploring the strategies that apply to you, you can approach tax season with confidence and maximize your refund.

Get Help with Your Tax Strategy

Looking for some support as you tackle tax season this year? Speak to one of the certified financial specialists at American Wealth Management. We’ll help you identify yhttps://financialhealth.com/contact/our deductibles and analyze your income and expenses so that you have all the pieces to file your taxes with confidence.

You can get a tax strategy free consultation here.

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Investment advice is 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.

Feb 26
CAPITAL GAINS AND LOSSES

A Taxing Story: Capital Gains And Losses

By Uncategorized

Chris Rock once remarked, “You don’t pay taxes – they take taxes.” That applies not only to income but also to capital gains.

Capital gains result when an individual sells an investment for an amount greater than their purchase price. Capital gains are categorized as short-term gains (a gain realized on an asset held one year or less) or long-term gains (a gain realized on an asset held longer than one year).

Keep in mind that 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.

Long-Term vs. Short-Term Gains

Short-term capital gains are taxed at ordinary income tax rates. Long-term capital gains are taxed according to different ranges (shown below).1

Long Term Capital Gains Tax Brackets (for 2024)page1image39922240

Tax Bracket/Rate        Single              Married Filing Jointly               Head of Household

0%                                         $0 – $47,025                                     $0 – $94,050                                    $0 – $63,000
15%                               $47,026 – $518,900                       $94,051 – $583,750                        $63,001 – $551,350
20%                                      $518,900+                                          $583,750+                                          $551,350+

 

It should also be noted that taxpayers whose adjusted gross income is more than $200,000 (single filers or heads of household) or $250,000 (joint filers) may be subject to an additional 3.8% tax as a net investment income tax.2

Also, keep in mind that the long-term capital gains rate for collectibles and precious metals remains at a maximum of 28%.3

Rules for Capital Losses

Capital losses may be used to offset capital gains. If the losses exceed the gains, up to $3,000 of those losses may be used to offset the taxes on other kinds of income. Should you have more than $3,000 in such capital losses, you may be able to carry the losses forward. You can continue to carry forward these losses until such time that future realized gains exhaust them. Under current law, the ability to carry these losses forward is lost only on death.4

Finally, for some assets, the calculation of a capital gain or loss may not be as simple and straightforward as it sounds. As with any matter dealing with taxes, individuals are encouraged to seek the counsel of a tax professional before making any tax-related decisions.

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. IRS.gov, 2024
2. IRS.gov, 2024
3. Investopedia.com, November 28, 2023
4. IRS.gov, 2024

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 2024 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.

Feb 05
Should You Hire a Wealth Manager

Is Hiring a Wealth Manager Worth the Investment?

By Uncategorized

We collect a lot of stuff in life. Maybe it’s cash, debts, properties, investments, or solid oak furniture from the Turn of the Century. Whatever it is, as you age, you likely have a long list of items to your name.

And the longer you live, the more complex that list becomes. It’s natural to wonder if you’re doing everything you can to be a wise steward of all your stuff.

What you need is guidance to help you manage your assets well, but you’re not sure if hiring help is the right move.

Should You Hire a Wealth Manager?

Wealth managers are there to help you make informed decisions about your finances. It’s in their best interest to help you grow your wealth, become debt-free, and move toward financial peace.

They do that by educating their clients about financial tools and investment strategies that match their risk tolerance.

Consider the following questions:

  • Do you know your net worth? In the maze of chutes and ladders—assets and liabilities— are you in the positive?
  • Should you hang on to an investment you made 30 years ago that hasn’t paid dividends in a while?
  • What’s the plan for all of your stuff after you’re gone?

If any of these felt relevant to you (or you answered “unsure” to any of them), a wealth manager’s expertise could be just what you need!

Here’s how hiring a wealth manager can help you stay on top of your finances and prevent valuable assets from falling through the cracks.

Wealth Managers Help Build Your Financial Roadmap

So what is a wealth manager, and what does one do?

You’ve probably heard wealth managers referred to by a lot of different names: CFP (Certified Financial Planners), CFA (Chartered Financial Analyst), investment advisors, portfolio managers, etc. But what these professionals all have in common is that they see the big picture of your finances.

Wealth managers use their expertise in investments, tax law, and financial tools to help you grow and optimize your assets. So you can feel peace of mind about your finances.

In a way, wealth managers are like trail guides—there to help you reach your goals and avoid financial pitfalls. Wealth managers can understand your short-term and long-term ambitions in the context of where you are currently, and make a plan to help you achieve those goals.

Wealth Managers Help You Manage Financial Risk

Intimidated by the stock market? Wealth managers can help you navigate investing according to your risk tolerance. In other words, you can explore buying and trading stocks with someone who will alert you of high-risk maneuvers and recommend strategies aligned with your desired level of financial safety.

Is all of your money kept in one place? Is it leaving you vulnerable? Wealth managers can help you create a diversified portfolio, which acts as a counterbalance to an ever-changing marketplace. Wealth managers can suggest investments that make sense for your situation and are aligned with your long- and short-term goals. So you can feel more secure knowing your eggs aren’t all in one basket and your funds will be available when you need them to be.

In effect, a wealth manager’s personalized service can give you a level of stability that goes far beyond individual investments and keeps your assets safe from inflation.

Wealth Managers Help You Optimize Your Tax Strategy

Now, let’s talk about taxes.

Wealth managers are adept at navigating tax law to make sure you’re taking advantage of every possible deduction. Wealth managers understand that money the government takes unnecessarily (the dollars that come back to you in your tax return) can be put to better use in retirement accounts or other investments than as a free loan to Uncle Sam.

By helping you keep more of your money, wealth managers help you save substantially over time. They can also help you turn around and invest what you save so that your money is working for you by generating interest.

Truly, the benefits of your wealth manager’s tax knowledge alone often offset the cost of their services.

Wealth Managers Help You Save Time and Stress

Life is busy, and managing your wealth can be time-consuming. On our fast-paced planet, every second of your time has a price on it. (Why do you think companies pay so much for well-placed online ads?) Your time is valuable.

By entrusting a professional financial advisor, you free up your time while reducing the stress associated with financial decision-making. It’s an investment in your financial confidence and overall well-being.

It helps to look at the cost of wealth management as an investment rather than an expense. The long-term value and potential returns will likely outweigh the initial financial outlay.

The Final Cost-Benefit Analysis

Hiring a wealth manager is not just about protecting what you’ve earned; it’s about growing your wealth and improving your quality of life today.

The cost associated with wealth management isn’t merely an expense; it’s a strategic investment in a plan that aligns with your goals, whether that be getting out of debt or preparing for retirement.

It’s not an off-the-shelf solution, but a bespoke framework designed with your financial future in mind.

Talk with a Wealth Manager in Reno, Nevada Today

American Wealth Management is a financial management firm in Reno, Nevada, that serves many local clients as well as individuals across the country.

If you have questions about your finances, take advantage of American Wealth Management’s 1-hour no-cost financial consultations and talk one-on-one with one of our financial advisors, we’ll seek to understand your financial goals and explain exactly what we can do to help you along the way.

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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.

Jan 29
important birthdays for using your retirement funds.

Important Birthdays Over 50 For Retirement

By Uncategorized

Most children stop being “and-a-half” somewhere around age 12. Kids add “and-a-half” to make sure everyone knows they’re closer to the next age than the last.

When you are older, “and-a-half” birthdays start making a comeback. Starting at age 50, several birthdays and “half-birthdays” are critical to understanding because they have implications regarding your retirement income.

Age 50: Qualified Retirement Plans

At age 50,  workers in certain qualified retirement plans can begin making annual catch-up contributions in addition to their normal contributions. Those who participate in 401(k), 403(b), and 457 plans can contribute an additional $8,000 per year in 2024. Those who participate in Simple Individual Retirement Account (IRA) or Simple 401(k) plans can make a catch-up contribution of up to $3,500 in 2024. And those who participate in traditional or Roth IRAs can set aside an additional $1,000 a year.1,2

Age 591⁄2: Retirement Plan Withdrawals

At age 591⁄2, workers can start making withdrawals from qualified retirement plans without incurring a 10% federal income tax penalty. This applies to workers who have contributed to IRAs and employer-sponsored plans, such as 401(k) and 403(b) plans (457 plans are never subject to the 10% penalty). Keep in mind that distributions from traditional IRAs, 401(k) plans, and other employer-sponsored retirement plans are taxed as ordinary income.

Age 62: Social Security

At age 62 workers are first able to draw Social Security retirement benefits. However, if a person continues to work, those benefits will be reduced. The Social Security Administration will deduct $1 in benefits for each $2 an individual earns above an annual limit. In 2024, the income limit is $22,320.3

Age 65: Qualify for Medicare

At age 65,  individuals can qualify for Medicare. The Social Security Administration recommends applying three months before reaching age 65. It’s important to note that if you are already receiving Social Security benefits, you will automatically be enrolled in Medicare Part A (hospitalization) and Part B (medical insurance) without an additional application.4

Age 65 to 67: 100% of  Social Security

Between ages 65 and 67, individuals become eligible to receive 100% of their Social Security benefits. The age varies, depending on the birth year. Individuals born in 1955, for example, become 100% of their benefits when they reach age 66 years and 2 months. Those born in 1960 or later need to reach age 67 before they’ll become eligible to receive full benefits.5

Age 73: Individual Retirement Account

In most circumstances,  once you reach age 73, you must begin taking required minimum distributions from a traditional Individual Retirement Account and other defined contribution plans. You may continue to contribute to a traditional IRA past age 701⁄2 as long as you meet the earned income requirement.

Understanding key birthdays may help you better prepare for certain retirement income and benefits. But perhaps more importantly, knowing key birthdays can help you avoid penalties that may be imposed if you miss the date.
If you have 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. If you reach the age of 50 before the end of the calendar year.
2. IRS.gov, 2023
3. SSA.gov, 2023
4. SSA.gov, 2023. Individuals can decline Part B coverage because it requires an additional premium payment.
5. SSA.gov, 2023

The content is
The content is

The content is de from sources believed to be providing accurate information. 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 to avoid any federal tax penalties. Please consult legal or tax professionals for specific information regarding your 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
Investment advice offered

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.

Jan 22
New Retirement Contribution Limits for 2024

New Retirement Contribution Limits for 2024

By Uncategorized

The Internal Revenue Service (IRS) has released new limits for certain retirement accounts for the coming year.

Keep in mind that this update is for informational purposes only, so please consult with an accounting or tax professional before making any changes to your 2024 tax strategy. You can also contact your financial professional, who may be able to provide you with information about the pending changes.

Individual Retirement Accounts (IRAs)

Traditional IRA contribution limits are up to $500 in 2024 to $7,000. Catch-up contributions for those over age 50 remain at $1,000, bringing the total limit to $8,000.

Remember, once you reach age 73, you must begin taking the required minimum distributions from a Traditional IRA in most circumstances. Withdrawals are taxed as ordinary income and, if taken before age 591⁄2, may be subject to a 10% federal income tax penalty.

Roth IRAs

The income phase-out range for Roth IRA contributions increases to $146,000-$161,000 for single filers and heads of household, an $8,000 increase. For married couples filing jointly, the phase-out will be $230,000-$240,000, a $12,000 increase. Married individuals filing separately see their phase-out range remain at $0-10,000.

To qualify for the tax-free and penalty-free withdrawal of earnings, Roth 401(k) distributions must meet a five-year holding requirement and occur after age 591⁄2. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner’s death.

Workplace Retirement Accounts

Those with 401(k), 403(b), 457 plans, and similar accounts will see a $500 increase for 2024, the limit rising to $23,000. Those aged 50 and older will continue to have the ability to contribute an extra $7,500, bringing their total limit to $30,500.

Once you reach age 73 you must begin taking required minimum distributions from your 401(k) or other defined-contribution plans in most circumstances. Withdrawals are taxed as ordinary income and, if taken before age 591⁄2, may be subject to a 10% federal income tax penalty.

SIMPLE Accounts

A $500 increase in limits for 2024 gives individuals contributing to this incentive match plan a $16,000 stoplight.

Much like a traditional IRA, once you reach age 73, you must begin taking the required minimum distributions from a SIMPLE account in most circumstances. Withdrawals are taxed as ordinary income and, if taken before age 591⁄2, may be subject to a 10% federal income tax penalty.

As a reminder, this article is for informational purposes only. Consult with an accounting or tax professional before making any changes to your 2024 tax strategy.

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 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 to avoid 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 is 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.

Jan 16
What you pay for wealth management depends on your personal goals and financial situation. Wealth management based in Reno, Nevada.

How Much Does a Wealth Manager Cost?

By Uncategorized

Google isn’t likely to serve you up a tidy cost menu for wealth management services. That’s because wealth management isn’t one-size-fits-all. What you pay depends on your personal goals and financial situation.

But, you can still choose the right wealth manager for you and figure out what it will cost. You just need to understand how different wealth managers are paid and how your situation affects what you pay.

3 Factors to Consider When Budgeting for a Wealth Manager

1. There are 3 Main Models a Financial Advisor Can Use for Compensation

In the wealth management world, you’ll encounter a few different compensation models—or payment structures. Every compensation model has strengths and weaknesses depending on your needs and how the pay structure incentivizes your manager to handle your account.

Here are the 3 basic pay structures:

Flat-Rate Model

Want to keep things simple? You can find a wealth manager who charges a flat rate for their services. Common flat rates for 2023 ranged from $2,000 to $7,500 a year. You can also find wealth managers who charge by the month or by the hour for their financial expertise.

However, what all flat rate structures have in common is that they eliminate the manager’s incentive to grow the client’s assets. In other words, the wealth manager gets paid whether you get a return on investment or not.

Commission Model

Like a credit card company that takes a small cut every time you swipe, some wealth managers earn a commission every time you buy or trade investments based on their recommendation. Those investments can include mutual funds, stocks, annuities, life insurance, and so on.

This pay structure may incentivize managers to engage in more frequent trading of your assets and to recommend specific investment products.

That might be exactly what you’re looking for. However, use caution when engaging a commission-based wealth manager, as they work around incentives that don’t always align with their client’s best interests.

Fee-Based Model

This compensation model involves paying your wealth manager a percentage of your total assets under management (AUM). That means your wealth manager takes a fixed percentage of what you’ve invested year to year. The typical range for fee-based wealth managers is 1– 1.5% AUM.

This compensation model is called a fee-based or fee-only model. (There are small differences between the two, but the overall payment structure is the same.)

This model motivates your wealth manager to grow your assets, since their compensation increases as your investments do.

Assuming you choose a fee-based wealth manager, let’s look at what the pay structure could look like.

2. Your Total Assets Affect the Cost of Wealth Management Services

If you want to know how much a fee-based wealth manager will cost you, a good place to start is knowing how much you plan to invest. With a percentage-based pay structure, you can plan to pay your wealth manager a percentage of invested assets and come up with an approximate figure.

So, for example, here’s how you would calculate the fee for a $150,000 AUM at a rate of 1.25%:

$150,000 * 0.0125 = $1,875 per year

Keep in mind that, in some cases, there may be additional costs associated with some services or transactions. These could include financial planning fees, account maintenance fees, or trading costs.

In the end, more assets will mean a larger payout for the financial manager. However, being “wealthy” is never a prerequisite for seeking out and obtaining financial guidance.

3. Wealth Management Services Cost More or Less Depending on Financial Complexity

The range of services you require, and the intricacy of your financial situation will have some bearing on how much you pay your wealth manager.

If your finances are relatively straightforward (your assets are consolidated in one or two investment categories) you might find yourself at the lower end of the fee range. On the flip side, if your financial situation is more intricate, involving complex investment strategies, tax planning,

or estate planning, you might be closer to the higher end of the fee spectrum, reaching 1.5% or more.

Have an open conversation with your wealth manager about your financial goals, the services you expect, and how the manager’s fees align with your needs.

Understanding the factors that contribute to the cost of wealth management can help you make informed decisions about the value you receive for the fees you pay.

What to Discuss When You Consult with a Wealth Manager

The best way to get an accurate reading on what financial services will cost is to sit down with a wealth manager and discuss your goals. Prepare to discuss this list of topics:

  • An overview of your financial situation, including income, expenses, assets, and liabilities
  • Short-term and long-term financial goals, such as education savings, retirement planning, or homeownership
  • Your risk tolerance and any specific concerns or preferences you have about your investments
  • The wealth manager’s approach to financial planning, investment strategies, and the range of services they offer
  • The wealth manager’s fee structure, including potential additional costs associated with their services

Get Wealth Management Services in the Reno, Nevada Area

American Wealth Management is a fee-based wealth management firm based in Reno, Nevada.

To schedule a free consultation with American Wealth Management and explore how their services align with your financial goals, click here and fill out the consultation request form.

This free consultation is the perfect chance to assess whether one of our wealth managers is the right fit for your financial needs and to establish a foundation for a successful long-term partnership.

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Investment advice is 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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