Growing Wealth

May 1st, 2012 | Posted by Sickle Hunter in Financial Planning - (0 Comments)

wealth managerWith an economically uncertain future many people are wondering how to grow their wealth. Chances are you have explored options like stocks, bonds, commodities and other forms of investment. It can be hard, however, to find the right mix of financial instruments and tools that will yield both security and substantial returns.

It is a wealth manager’s job to help you sort through the countless investments opportunities and tools and help you find the right one for your income, stage in life, and goals. They can help you find the perfect balance of risk and return. As your goals, priorities and income changes a wealth manager can help adjust your portfolio to be a better reflection of your new plans. They can monitor financial developments and keep you abreast of how the fiscal world is changing. Keeping up to date on these changes is time consuming and difficult.

Many people fail to meet their investment goals because they choose to go it alone. They fall for financial scams, mismanage their money, or are unable to access the best information prior to making a decision. The modest fee a wealth manager takes is nothing compared to the potentially devastating effects of improper investment.

 

Estate Planning

April 29th, 2012 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Investments | Retirement Planning - (0 Comments)

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.

 

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Capital Gains Tax

April 27th, 2012 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Investments | Retirement Planning - (0 Comments)

An important part of the current national economic debate is tax policy. This debate affects not only what you pay every April, 15th 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.

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IRA Management

April 25th, 2012 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Investments | Retirement Planning - (0 Comments)

Starting a Roth IRA is a great first step in saving for your financial future. The Roth IRA is one of the most widely used retirement savings tools. Although Roth IRA accounts are common they may not be for you. Only a wealth manager can suggest a plan that will fit your needs, goals and lifestyle. They can explain how complex financial tools like IRAs, Roth IRAs, and 401 (k)s work.

Different plans have different stipulations when it comes to taxation, inheritance, adding to the plan, and penalties. One the main difference, for example, between a Roth IRA and a traditional IRA is that traditional IRA contributions are tax deductible while in a Roth IRA withdrawals are tax free.* Roth IRAs can be inherited by spouses or other family members with no penalties while traditional IRA transfer can lead to taxation.

Some people fair better with an independent portfolio of investments and savings. This option represents the most freedom though it doesn’t have any of the tax exemption and perks of government plans.

Too many people blindly pay into employer sponsored programs without reading the fine print. Making the right decision now means every penny you save (or choose to withdraw) is taxed at a minimum and works its hardest for you.

 

 

*The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 may result in a 10% penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

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The Value of the Dollar

April 2nd, 2012 | Posted by Sickle Hunter in Financial Planning - (0 Comments)

wealth mangerOne of the many factors that has people worried is the future value of the dollar. Politicians talk about the national deficit, Chinese currency manipulation, and European economic troubles all which can have an effect on inflation and deflation.

These issues are all linked. China is the biggest trade partner of the United States and biggest holder of American debt. Many people also think China artificially values their currency to give them an edge in the global market. This relationship is untenable but there are no concrete answers as to how to fix things.

Many Americans also worry that overspending on social programs will lead to debt problems like those in Europe or lead to more money being printed which would devalue the currency already in circulation. It is unclear, however, if the situation in America is comparable to that in Europe.

It is a scary thought for many people who are about to retire. The idea of saving your entire life and then retiring to find that the money you saved is no longer as valuable as you were banking on it being. A wealth manger can help you plan for any outcomes. Wealth managers can suggest savings and investments that can lessen the blow of any monetary issues.

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