Check out these useful bits of information to help you develop a plan for your family or assets. For a more comprehensive plan that takes these points into consideration, book a call with Ryan today!

Think like a business!

When I create plans for clients, I tell them to think of their family as a business and I am the business consultant. We create a balance sheet and their budget is the profit and loss statement. The strategies we implement together are meant to cut costs and increase profit while managing risks. The success of this business determines the quality of life for your employees/family. This perspective helps you remove some emotions while making decisions that are key to the plan. Using a consultant to create a plan can be the difference between success and business failure.

Kiddie Tax

Kiddie tax has become more prevalent recently due to assets being transferred to minors. This could be from moving assets to a minor via an UTMA account being used to potentially fund education or a future business venture. Be aware that any unearned income, such as interest and dividends, will have different levels of taxation. In 2023, the first $1,250 is not taxed, the next $1,250 is taxed at the child’s rate (which could be 0%), and anything above $2,500 is taxed at the parent income tax rate. If you keep the unearned income low in these accounts you could escape taxation but an UTMA will impact the families ability to take more financial aid if they child goes to college.

Family Secrets

Trillions of dollars are going be passed down to the next generation over the next couple of decades. The problem is that the conversation about the inheritances are not being had within the family. Not discussing the intentions of the inheritance with the heirs could lead to misunderstanding that could tear the family apart. 25% of those with assets said they don’t intend to share this information. 79% plan to share their wishes and intentions with family before their death but less than half ever get to it. Make it a point to have this conversation sooner rather than later so the whole family understands why the assets are being distributed a certain way. Providing a legacy to your family shouldn’t be a surprise that separates them. It should bring them together.

Mental health

Mental health is a very important component of my work. I provide the advice on all of the facets of financial planning but you will be responsible for the execution of the strategy. If you lack confidence in the economy or fall prey to the trolls of the internet, you could be influenced to make irrational decisions with your hard earned money. You need to focus on yourself before you can focus on your money. Understanding that you can’t control the markets but you can control your behavior when dealing with the markets is a huge step in the right direction.

 Economic Indicators

The US Personal Savings Rate is personal saving as a percentage of disposable personal income. During the pandemic this percentage peaked at 33.8% but quickly fell back to earth once rates started to come up and inflation made consumer products more expensive. The rate fell close to an all time low in June 2022 to 2.7%. July of 2005 holds the record for lowest savings at 2.1%. This information can be scary to some but what it tells me most is that there is a need to refocus on budgeting and saving. Your investments should already be aligned with the appropriate risk and timeline in which it will be needed. If the stock markets do collapse, an thorough budget and savings rate will put you in a position to keep investing in a less expensive market. Make a plan and stick to it!

Keep moving!

Regret is not a conversation topic I want to hear from my clients. It means I didn’t encourage them to spend enough assets when they could. Regret typically become more apparent during the no-go years where the body and mind no longer can support activities such as travel or gardening. My body is already feeling the consequences of years of athletics and regrettable diet decisions. Also, my family has a history of heart disease. This is why I focus on my health where it matters. I like to use cardio and mobility exercises to keep my heart healthy and my body prepared to keep moving for as long as possible. I highly recommend you do the same no matter what stage of life you are in now.  A simple 20 minute walk a day could extend your life so you can spend more time with the ones you love.

Fiduciary Mission

At Integritas Financial, we are committed to providing fee-only, fiduciary financial planning services that are tailored to the unique needs of young professionals, particularly millennials. Our experienced planners work with you to develop customized financial plans that address key areas such as estate planning, trusts and wills, retirement, workplace benefits, education funding, student debt, and buying a house.

We believe in transparent, client-focused service that puts your financial goals at the center of everything we do. As a fiduciary firm, we are dedicated to acting in your best interests, and we never sell products that charge commissions to clients.

Our goal is to help you achieve a stable and prosperous financial future by providing comprehensive financial planning services that are tailored to your individual needs. Whether you're just starting out in your career or you're already well-established, we can help you navigate the complexities of financial planning and create a roadmap for success.

Ryan@if-money.com