Are you and your employees ready for Obamacare and the effects it will have on your business?
The Affordable Care Act (PPACA) will impact both you and/or your employees regardless of the number of employees you have in your organization. In 2014 the most affective phase of the plan will go into effect. This will influence the cost of all healthcare insurance plans in some way or another.
For employers with over 50 employees:
For larger employers you will see a varied list of solutions because you must provide a certain level of coverage for your employees or pay a fine. I have read that many employers will elect to take their lumps and pay the fine without providing the coverage. I believe that this will create a problem for those who don't give their employees health insurance coverage. First of all they will have a problem competing for employees because all of the companies that do provide health insurance will be in a better position to hire the better employees. Secondly they will eventually have to deal with the problems associated with healthcare. These employers DO have some cost effective options to keep both uncle sam and their employees happy. If you want to know more shoot me an email or call me at 610-695-8748.
For employers with under 50 employees:
If you employ less than 50 you won't be fined like the larger employers. The plan states that if you employ less than 50 you can keep your existing plan. The law states that everyone must have health insurance, either from their employer or individually. This is going to impact the cost for employers in that the costs will go up. Individuals who buy insurance on their own will probably see costs go down because of the increase in size of the base of insured folks.
There are solutions to this dilemma for both the employer and the individual to save on their healthcare costs. Our partners can provide an analysis of health plans for both small and large groups and give you answers to those issues of rising costs and providing coverage. Call me at 610-695-8748 or email roy@yourwealthadvocate.com. For a quick synopsis of information on what is coming you can download a free booklet provided by the Small Business Council entitled Health Reform in a Nutshell. Again, if you need cost effectives solutions to solving this issue for your company we can help.
Did you know that you have options if you are in either category?
Because of the issues arising from the Affordable Care Act there are many products that will fit a solution to both saving employers in cost of providing healthcare with supplemental plans. These plans often cover deductibles and reimbursements that the employee or employer can pay for, thus reducing premiums and allowing for higher deductibles so that both the employee and employer save on costs overall. We can provide analysis for all of these solutions and implement them for you or your company.
We and our partners can provide an analysis of health plans for both small and large groups and give you answers to those issues of rising costs and providing coverage. Call me at 610-695-8748 or email roy@yourwealthadvocate.com.
Monday, April 8, 2013
Wednesday, February 6, 2013
Creating a sound retirement plan for your family.
This is the process that has been successful for thousands of families in creating a financial plan that works for them. I use this process when working with clients to help them discover what they want, then make decisions that feel right for them.
Where do I start?
When clients come in to see me at my office I generally start by getting to know them. If I am helping a couple I insist that both husband and wife are there. I have found that when it comes to the family finances that you need opinions of both spouses at the same time. I can bring out the best of their critical thinking if I can ask questions while both spouses are in the room. My job is not to coerce either one to buy into a particular strategy but to educate them to make prudent decisions that they both feel good about. In some cases that decision is to do nothing and stay on the track they are on until they feel that it isn't right for them any more.
The ABC's of Conservative Investing
After finding out what makes a person/couple feel comfortable I will begin the process of what I call the ABC's of conservative investing. This is a simple yet thorough approach to finding out how a client feels about their current investment situation and how they would comfortably make it better for themselves with my help. This process is both educational and enlightening to clients and it teaches them how to make decisions about their finances. From this meeting WE can determine what financial products might feel right to them and investigate further on how the product would work in their particular situation.
What Financial Products Do You Use?
Once the client has decided on what products feel right to them I can go to work to find the right products that they might like. It usually is not very difficult to find what they need because all of the hard work is done by the ABC process. We can now evaluate what works best for their particular situation.
Here are some examples of what a plan would look like after going through this process.
Once we determine what would work for your family and we have found the correct financial products we can blend them based on your needs for things like college funding, cash for emergencies, income needs, what is to be left to heirs, vacations, autos, health care and any other potential drain on resources.
A typical plan might consist of a guaranteed product that will provide an income stream down the road or immediately that has some guaranteed growth and coupling that with a more diverse strategy where we can take enough risk to get some long term growth. Now you have immediate income and the prospect for income in the future or something to be left to heirs. This is only an example of what could be done not a strategy that works for everyone.
When all is said and done there is no complicated and confusing plans required to succeed financially. Wealthy folks who are successful already know this and follow these same principles. Complex plans that are sometimes presented to clients by advisors are really meant to confuse the client so the advisor and his company make all of the money. Beware when you see a complex plan that you don't understand, it usually means that there are a lot of places for them to make money and not you.
If you would like some help in making the right decisions on your retirement plan don't hesitate to contact me. My number is 610-695-8748 our you can email me at roy@yourwealthadvocate.com.
Where do I start?
When clients come in to see me at my office I generally start by getting to know them. If I am helping a couple I insist that both husband and wife are there. I have found that when it comes to the family finances that you need opinions of both spouses at the same time. I can bring out the best of their critical thinking if I can ask questions while both spouses are in the room. My job is not to coerce either one to buy into a particular strategy but to educate them to make prudent decisions that they both feel good about. In some cases that decision is to do nothing and stay on the track they are on until they feel that it isn't right for them any more.
The ABC's of Conservative Investing
After finding out what makes a person/couple feel comfortable I will begin the process of what I call the ABC's of conservative investing. This is a simple yet thorough approach to finding out how a client feels about their current investment situation and how they would comfortably make it better for themselves with my help. This process is both educational and enlightening to clients and it teaches them how to make decisions about their finances. From this meeting WE can determine what financial products might feel right to them and investigate further on how the product would work in their particular situation.
What Financial Products Do You Use?
Once the client has decided on what products feel right to them I can go to work to find the right products that they might like. It usually is not very difficult to find what they need because all of the hard work is done by the ABC process. We can now evaluate what works best for their particular situation.
Here are some examples of what a plan would look like after going through this process.
Once we determine what would work for your family and we have found the correct financial products we can blend them based on your needs for things like college funding, cash for emergencies, income needs, what is to be left to heirs, vacations, autos, health care and any other potential drain on resources.
A typical plan might consist of a guaranteed product that will provide an income stream down the road or immediately that has some guaranteed growth and coupling that with a more diverse strategy where we can take enough risk to get some long term growth. Now you have immediate income and the prospect for income in the future or something to be left to heirs. This is only an example of what could be done not a strategy that works for everyone.
When all is said and done there is no complicated and confusing plans required to succeed financially. Wealthy folks who are successful already know this and follow these same principles. Complex plans that are sometimes presented to clients by advisors are really meant to confuse the client so the advisor and his company make all of the money. Beware when you see a complex plan that you don't understand, it usually means that there are a lot of places for them to make money and not you.
If you would like some help in making the right decisions on your retirement plan don't hesitate to contact me. My number is 610-695-8748 our you can email me at roy@yourwealthadvocate.com.
Thursday, November 8, 2012
Year End Tax Planning
Hold on to your wallet!
Now that the election is over many people are wondering "what's next?" on the financial horizon. Some are concerned about the "financial cliff" and how it will affect them if it is not changed. One thing we all know is that taxes are going up. With our new health care system there are many new or old taxes that are going to affect many folks depending on their tax bracket. If nothing changes between now and the end of the year here is a checklist of things to think about concerning your taxes.
Long Term Capital Gains:
As many of you know, the capital gains tax rate is currently 15% for most of us. Next year LTCG will jump to 20 to 23% depending on your income. So if you were thinking of selling one of those stocks that has a large gain that you have been holding on to for longer that a year, you might want to discuss selling it with your financial advisor and your tax advisor. This will also affect real estate that you own and are thinking about selling. Also any other investment assets that you have held longer that one year.
Dividends:
If you have a lot of dividend income you might want to look at what the effects of the new tax laws will be on your tax bill. The tax rate is going to 15% and could go as high as 43% based on your current income tax bracket.
Gifting to Family Members:
The gifting exclusion is going to 2 million dollars per couple down from 10.2 million per couple. This may not affect many people but anyone who has built up a large real estate portfolio may want to analyze what they have and strategize for the future. It will certainly bring a lot more of us into that tax bracket.
Tax increases:
With the Bush tax cuts expiring we will be looking at a 3% tax increase going forward. Some of us may want to accelerate income this year to avoid paying those taxes going forward. Also the social security tax will also increase by 2%.
Some Strategies to Consider:
1. Roth Conversion: With the increase in tax rates you might consider converting your IRA to a Roth. This will prevent further taxation of your principal.
2. Sale of High Dividend - Paying Stock or Mutual Funds.
3. Long Term Capital Gains Sales of Investments, Real Estate or Business.
4. Accelerate Ordinary Income, Bonuses, Annuity And Traditional IRA withdrawals, etc.
5. Gifting to family members.
6. Gifting Large Premiums for Life Insurance.
7. Large Charitable Gifts. Because of higher income tax rates for all taxpayers, charitable gifts have higher write offs.
8. Contribute as much as you can to IRAs, Roth IRAs, and 401K/403b/TSP plans.
If you would like to talk more about any of the above strategies for yourself or loved one who may need help, do not hesitate to contact me. My policy is a free one hour strategy session where I educate my clients to make educated decisions about their finances. And one of those decisions may be to do nothing. No products sold.
Roy Innella
610-695-8748
roy@yourwealthadvocate.com
website : www.yourwealthadvocate.com
Now that the election is over many people are wondering "what's next?" on the financial horizon. Some are concerned about the "financial cliff" and how it will affect them if it is not changed. One thing we all know is that taxes are going up. With our new health care system there are many new or old taxes that are going to affect many folks depending on their tax bracket. If nothing changes between now and the end of the year here is a checklist of things to think about concerning your taxes.
Long Term Capital Gains:
As many of you know, the capital gains tax rate is currently 15% for most of us. Next year LTCG will jump to 20 to 23% depending on your income. So if you were thinking of selling one of those stocks that has a large gain that you have been holding on to for longer that a year, you might want to discuss selling it with your financial advisor and your tax advisor. This will also affect real estate that you own and are thinking about selling. Also any other investment assets that you have held longer that one year.
Dividends:
If you have a lot of dividend income you might want to look at what the effects of the new tax laws will be on your tax bill. The tax rate is going to 15% and could go as high as 43% based on your current income tax bracket.
Gifting to Family Members:
The gifting exclusion is going to 2 million dollars per couple down from 10.2 million per couple. This may not affect many people but anyone who has built up a large real estate portfolio may want to analyze what they have and strategize for the future. It will certainly bring a lot more of us into that tax bracket.
Tax increases:
With the Bush tax cuts expiring we will be looking at a 3% tax increase going forward. Some of us may want to accelerate income this year to avoid paying those taxes going forward. Also the social security tax will also increase by 2%.
Some Strategies to Consider:
1. Roth Conversion: With the increase in tax rates you might consider converting your IRA to a Roth. This will prevent further taxation of your principal.
2. Sale of High Dividend - Paying Stock or Mutual Funds.
3. Long Term Capital Gains Sales of Investments, Real Estate or Business.
4. Accelerate Ordinary Income, Bonuses, Annuity And Traditional IRA withdrawals, etc.
5. Gifting to family members.
6. Gifting Large Premiums for Life Insurance.
7. Large Charitable Gifts. Because of higher income tax rates for all taxpayers, charitable gifts have higher write offs.
8. Contribute as much as you can to IRAs, Roth IRAs, and 401K/403b/TSP plans.
If you would like to talk more about any of the above strategies for yourself or loved one who may need help, do not hesitate to contact me. My policy is a free one hour strategy session where I educate my clients to make educated decisions about their finances. And one of those decisions may be to do nothing. No products sold.
Roy Innella
610-695-8748
roy@yourwealthadvocate.com
website : www.yourwealthadvocate.com
Thursday, August 9, 2012
Social Security Options -
Do I collect now or wait to get a higher payment?
Many folks believe that it is better to collect on Social Security as soon as possible. I often will ask my clients what other funds they have before making a recommendation of collecting Social Security at 62. It is possible that you may be locked in to the lower payment amount if you continue to take payments after your start date.
Dr. Shelby Smith has a few options you should consider before making your Social Security decision.
Click here to view the video
Many folks believe that it is better to collect on Social Security as soon as possible. I often will ask my clients what other funds they have before making a recommendation of collecting Social Security at 62. It is possible that you may be locked in to the lower payment amount if you continue to take payments after your start date.
Dr. Shelby Smith has a few options you should consider before making your Social Security decision.
Click here to view the video
Thursday, June 21, 2012
Questions You Should Ask Your Financial Advisor
Do I really need a financial plan?
Many clients ask me if they are too old or too broke to make a prudent investment plan. Since I coach my clients to do what is best by using a holistic approach my answer is that it is never too late to create a retirement strategy. Advisors have a tendency to over complicate what needs to be done and how it works in order to impress their clients, making them think that the advisor is really smart. I believe the client should understand what they are investing in and believe it will work to fit their needs.
Are you going to tell me what I need or help me select what I want?
No one can plan a better retirement than the client themselves with the help of a properly trained and properly positioned coach. The definition of coach itself is helping an individual by guiding them through a process. The process of learning how to make your money work for you can make the experience much more rewarding and less stressful. In the world of financial coaches I believe that should go one step further and they should also be an advocate for their clients wealth. The definition of advocate is some one who acts or intercedes on behalf of another. Someone giving support.
Are you a fiduciary or a broker?
In the spirit of giving support my firm practices as an Investment Advisor Representative; someone who has a fiduciary responsibility for the client, putting the client first in all matters. A broker sells products to his/her client and has to adhere to a suitability standard of doing business and not fiduciary unless they are licensed as such.
For those who want a different approach to their investing options I use a co-advisor. They have much more knowledge on investing and have been doing it a lot longer than me. For a quick explanation on how they differ from your ordinary third party money manager you can go to my personalized website by clicking here.
What are the fee's of the product I am buying?
In the world of investing there are many hidden fees below the surface of a mutual fund or stock market like investment. Ask for a prospectus for a mutual fund if you are contemplating buying into one. Check the fee schedule and the amount of trading activity, there are fees associated with each.
How often do you communicate with your clients?
Communication is also a key to great coaching and I communicate with all clients on a daily basis through email. The investor needs support especially when we are going through the ups and downs of the market we've experienced recently.
Thursday, April 26, 2012
Your IRA is a Joint Account With the IRS
Were you told these things when you opened your IRA or other retirement account?
1. The contribution that you make to your IRA or other retirement account is tax deductible, meaning that you'll receive a tax deduction for the contribution that you make to your account.
2. Assuming your IRA or other retirement account experiences growth, that growth occurs on a tax deferred basis, meaning that no tax is paid on growth until such time as a withdrawal is made from the IRA account.
3. At retirement or whenever you elect to use your retirement for income you will likely be in a lower tax bracket. That may allow you to take a tax deduction when you are in a higher tax bracket, enjoy tax-deferred growth when in the higher tax bracket, and then when taking withdrawals during retirement when you're in a lower tax bracket.
Did they all turn out to be true? No! The tax laws changed.
So what are the alternatives?
You have 3 options.
1. Pay the IRS their share. Or if you die your heirs will pay your share at their tax rate.
2. Donate your share to charity in which case the IRS will donate its share to charity.
3. Create a legacy for your family with the IRS's share of your account.
Which do you prefer? Which makes the most sense for you?
We create IRA maximization plan for qualifying individuals to create a "Family Bank"by IRS guidelines, this is a tax free vehicle by the Deficit Reduction Act and Pension Protection Act of 2009.
If you qualify you can use the money from your IRA to fund your family bank. The family bank allows for tax free withdrawals and can be used for any purpose during your lifetime. If you qualify your IRA becomes the "seed money" for your family bank and if you die the money from the bank goes to your heirs tax free.
In order for your IRA to be the ideal funding source it must have the following characteristics.
1. You must have access to the money if needed.
2. The fund must have potential for growth.
3. The fund have protection against loss.
4. The money has to be guaranteed to pay to seed the bank.
If you would like to know more about this concept call me for an appointment and I will be happy to explain the concept to you when you come in. You can call at 610-695-8748 or email me at roy@yourwealthadvocate.com or click here.
1. The contribution that you make to your IRA or other retirement account is tax deductible, meaning that you'll receive a tax deduction for the contribution that you make to your account.2. Assuming your IRA or other retirement account experiences growth, that growth occurs on a tax deferred basis, meaning that no tax is paid on growth until such time as a withdrawal is made from the IRA account.
3. At retirement or whenever you elect to use your retirement for income you will likely be in a lower tax bracket. That may allow you to take a tax deduction when you are in a higher tax bracket, enjoy tax-deferred growth when in the higher tax bracket, and then when taking withdrawals during retirement when you're in a lower tax bracket.
Did they all turn out to be true? No! The tax laws changed.
So what are the alternatives?
You have 3 options.
1. Pay the IRS their share. Or if you die your heirs will pay your share at their tax rate.
2. Donate your share to charity in which case the IRS will donate its share to charity.
3. Create a legacy for your family with the IRS's share of your account.
Which do you prefer? Which makes the most sense for you?
We create IRA maximization plan for qualifying individuals to create a "Family Bank"by IRS guidelines, this is a tax free vehicle by the Deficit Reduction Act and Pension Protection Act of 2009.
If you qualify you can use the money from your IRA to fund your family bank. The family bank allows for tax free withdrawals and can be used for any purpose during your lifetime. If you qualify your IRA becomes the "seed money" for your family bank and if you die the money from the bank goes to your heirs tax free.
In order for your IRA to be the ideal funding source it must have the following characteristics.
1. You must have access to the money if needed.
2. The fund must have potential for growth.
3. The fund have protection against loss.
4. The money has to be guaranteed to pay to seed the bank.
If you would like to know more about this concept call me for an appointment and I will be happy to explain the concept to you when you come in. You can call at 610-695-8748 or email me at roy@yourwealthadvocate.com or click here.
Monday, April 2, 2012
Do you know what the VIX index is? Should you?
A google search will readily let you know what the VIX index is and what it measures in the financial markets. Taken from the CBOE website: "The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. Since its introduction in 1993, VIX has been considered by many to be the world's premier barometer of investor sentiment and market volatility."
Now many financial Gurus have long stated the phrase that "if the VIX is high it is time to buy and if the VIX is low that it is time to go."
An interesting correlation is that as we reach the top of the valuation in the market the VIX is very low and when the market bottoms out the VIX is high. The Dow and S&P are at one of its highest points recently and the VIX is at a 57 month low. The question remains, is it time to get out of the market? Or do we become complacent and see if it is going to go higher.
If you have been advised properly since 2008 your portfolio should be at about where you were before the crash. Maybe it is time to take some dollars off the table.
Now is the time to act.
Are you at or near retirement? Do you think that it would be a good time to investigate protecting yourself from loss? If you want to discuss your options give me a call at 610-695-8748 and I can show you some of your options. or email me at roy@yourwealthadvocate.com.
Now many financial Gurus have long stated the phrase that "if the VIX is high it is time to buy and if the VIX is low that it is time to go."
An interesting correlation is that as we reach the top of the valuation in the market the VIX is very low and when the market bottoms out the VIX is high. The Dow and S&P are at one of its highest points recently and the VIX is at a 57 month low. The question remains, is it time to get out of the market? Or do we become complacent and see if it is going to go higher.
If you have been advised properly since 2008 your portfolio should be at about where you were before the crash. Maybe it is time to take some dollars off the table.
Now is the time to act.
Are you at or near retirement? Do you think that it would be a good time to investigate protecting yourself from loss? If you want to discuss your options give me a call at 610-695-8748 and I can show you some of your options. or email me at roy@yourwealthadvocate.com.
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