One of the most heated discussions most people have about retirement gets back to investing and managing your money.  There are many who will tell you that if you start out early, invest regularly into a low-risk, low-growth IRA or 401(k) that you will be able to retire comfortably. On the other side of the equation you have wealth managers who demand a more active management of your portfolio; championing active management as the only way to make sense of the investment world. It’s not always easy to figure out which type of management suites you best.

Of course if your active wealth management had taken place during the years between 2000-2010 you also could have lost a lot of money. If your wealth management Florida made the same mistakes a lot of investors did.

It’s tricky; it’s really tough to know.  Both sides have valid arguments. This is why there are investment wealth management Florida professionals. People who will take your passive investments, manage them actively and do their best to generate the kind of returns you had been hoping for. Managed portfolios have movement and activity into and out of different investments every day. Rather than you being responsible for the buying and selling of stocks in your account, an active portfolio manager will instead take care of that for you.

The debate over active and passive investments will continue onward. As the debate rages on though, your investments may be slipping further and further from relevance. What are you going to do about your investments?

According to some financial advisors, life insurance is as much a basic part of smart financial management as having a savings account for emergencies. Especially if a person has a significant other or children, life insurance provides a financial safety net in case something horrible goes wrong. Without that safety net, a person’s estate and family will be left in an immediate, financial lurch without any ability to fix it right away. Even creative financial planning techniques may not be enough when the damage is done.

A life insurance policy represents insurance coverage that, if a covered person dies, will pay out an agreed-upon sum of money to a named beneficiary. In return, the policyholder pays a monthly or quarterly premium to the insurer to keep the policy active. Doing so provides a financial buffer for the beneficiary, especially for immediate, temporary income replacement.  Even for wealthy families with a high net worth may need liquidity.  If the assets have to go through probate or other litigation or an asset is not easily liquidated like a residence other money may be necessary.  Paying mortgages, day to day living and many other expenses may arise during this often difficult time.  Life insurance may help to create the immediate needed liquidity.

There are a few types we will discuss: term life insurance and permanent life insurance.

For people in their early family years with competing demands, term life insurance may be the most practical approach. Term life provides a straightforward insurance coverage for a set dollar amount while the policyholder pays a specific premium. The term period can range but typically can be up to 30 years. If, at the end, nothing occurs then the insurer keeps all the premiums paid. The policyholder then has to go and find a new policy, usually at a higher price. That said, term life works very well as a basic coverage to provide a safety net for a specified period.

Permanent life insurance lasts for as long as the policyholder is alive and pays his premiums; ergo the name “permanent,” insurer can’t end the policy. This provides life insurance well into a person’s later years when a new policy would be extremely expensive. Created early enough, having life insurance in one’s later years can be a boon to senior retirement savings for a remaining spouse, especially in hard times.

Determining how much coverage depends on your needs.  It may be to replace a lost income source for a family or create liquidity as we mentioned earlier.  It can be used for individual losses or business losses, both resulting in the death of an individual.  A financial plan can help you determine which type and how much coverage is appropriate.

While there are many types of life insurance available, you should consult with your financial advisor to review which type is best suited for you and your needs.

*** Life Insurance policies are subject to substantial fees and charges. Guarantees are based on the claims paying ability of the issuer.

Education plans like investing were not created equal. The Coverdell Education Savings Account or Coverdell ESA is a savings vehicle that you can save into for educational expense for elementary, secondary and college expenses. A Coverdell has some great flexibility and control. You can make the full contribute up to $2,000 if your MAGI is less than $95,000 for filing individually or less than $190,000 if you file jointly. The Coverdell ESA may be valuable if you are planning on private schools or have a qualified tuition for your child before college. It may be the key you’re your financial strategy to help you save efficiently for your educational needs. There may be greater investment options depending on where you hold your Coverdell ESA. Your contributions are after-tax, however if your withdrawals will be tax free for qualifying educational expenses. The benefit of greater investment options, opportunity for growth, and tax free gains make the Coverdell ESA an attractive savings vehicle for your child’s savings plan. As with any savings vehicle for your wealth management strategies there are restrictions that you should be aware of before opening a Coverdell ESA. You must remove all of the money 30 days after the beneficiary of the Coverdell ESA reaches age 30. You can’t contribute past the beneficiary’s age 18 and like IRA’s you must contribute before filing your taxes and before April 15th.

A wealth manager can offer you advice on how to manage your estate. Once you have saved for retirement you may want to start thinking about how you will budget yourself and what you plan to leave behind as part of your estate.

Many people try to seek a balance of how much they spend and how much they leave behind. People want to live comfortably but still leave something for their relatives and favorite charities. By helping evaluate your assets a wealth manager can equitably steward your estate. They can also ensure your relatives don’t get bogged down in fees, taxes, and paper work. It also ensures bitter disputes over inheritance do not arise because your wishes are clearly established, on paper, with an independent third party.

No one likes to think about their own passing but estate planning is an important financial tool. It is about helping maximize the money you have while meeting any estate goals you may have. You can change your plans as your life changes so don’t feel you are locking yourself into anything. You can rest easier knowing that no matter what happens what is yours will transfer to your loved ones with as little being garnished as possible.

An important part of the current national economic debate is tax policy. This debate affects not only what you pay every April, 15^th but what services you can expect from the government and how income earned from investments is taxed.

One of the biggest aspects of the debate is the Capital Gains Tax. This is the tax rate at which most investment income is taxed. It is currently around 15% (this is the most cited number though different situations can lead to variable rates). Some people claim raising this tax will make the tax system more equitable because mainly wealthy people pay this tax and it is much lower than the highest income tax bracket. Other say this discourages investments and penalizes the successful. Both theories have merit and it will be up to voters to decide come November. Make sure you discuss capital gains taxes with a wealth manger because they way investments are timed and organized affects the rate at which you are taxed. A wealth manager will also be able to help you understand any changes to the system that may occur in the next election cycle.

A wealth manager can also help you find tax breaks for your investments and other income. It is your job as a voter to help decide which tax policy is most favorable but it’s a wealth manager’s job to get you the highest return regardless of tax policy.

Please consult a qualified tax advisor for tax related questions.