News & Events
One of the major aspects of a business sale is whether the business will be sold as an asset or as stock. An owner might be thinking, “Does it really matter as long as I get the highest sales price?” Well, as you’ll see below, there are plenty of circumstances that can make a LOWER sales price MORE attractive.
When your local weather forecaster tells you that it's going to rain, what do you do? That's easy--you reach for your umbrella. So why not purchase an umbrella that can protect you in stormy financial weather? Umbrella liability insurance (ULI) can do just that. By providing liability protection above and beyond the basic coverage that homeowners/renters and auto insurance policies offer, ULI can protect you against the catastrophic losses that can occur if you are sued.
Most Americans will receive Social Security and Medicare benefits at some point in their lives. For this reason, workers and retirees are concerned about potential program shortfalls that could affect future benefits. Each year, the Trustees of the Social Security and Medicare Trust Funds release lengthy annual reports to Congress that assess the health of these important programs. The newest reports, released on June 5, 2018, discuss the current financial condition and ongoing financial challenges that both programs face, and project a Social Security cost-of-living adjustment (COLA) for 2019.
Health savings accounts (HSA) are a means for an individual with a qualifying high deductible health plan(1) to save for both current and future health expenses. Unlike any other savings vehicle, they are largely appealing for the triple tax benefit that they offer: contributions are tax-deductible, the interest and/or earnings grow tax free, and account owners may make tax-free withdrawals for qualified medical expenses (2).
As a medical practice, law practice or other business grows, business owners may wish to shelter additional income from taxes beyond that of what a 401k plan allows. A pension plan may be just the answer to accomplish this goal. Contrary to the decreasing popularity of traditional pension plans, the number of Cash Balance Pension (CBP) plans have been increasing. As noted in Kravtiz’s 2017 National Cash Balance Research Report, “Since 2001, cash balance plans have had double-digit annual growth almost every year and a fifteen-fold increase over 15 years.” So, what has been making CBP plans so attractive?
You wouldn’t depart for an important trip without a clear idea of how to get to your destination — or at least without a GPS or map to show you how to get there. The same logic applies to your journey through life. You’re likely to get lost without a clear financial plan to get where you want to go, now and well into the future.
For our Affordable Family Office clients, tax planning is a year-round activity. 2017 presented us with a unique tax planning opportunity, as we saw tax reform enacted in December. Broadly speaking, this tax reform will both limit deductions and reduce federal tax rates in 2018 & beyond.
There are two major drags on the success of your financial plan: fees and taxes. Fees are necessary to get professional management and advice and usually average about 1.5%. You evaluate the value you get by paying fees at least annually. Taxes are a significantly bigger drag than fees. The lowest capital gains tax rate is 15% or ten times as much as the average advisor fee. If you can minimize the tax drag on your wealth accumulation and retirement drawdown strategies, you can significantly increase cash flow and family wealth. Click on this link to get the details of the 2018 tax law and how it may impact you.
D3 Financial Counselors was named in Expertise.com's top 20 best financial advisors in Chicago. To read the article, click here.