IRS Enrolled Agent – Tax Planning

Transcript

Many financial advisors mention tax planning when they discuss what services they offer their clients.  Since becoming an independent financial advisor, to take that a step farther, I became an IRS Enrolled Agent.  An IRS Enrolled Agent has the ability to represent taxpayers in front of the IRS.  I did this by completing a comprehensive three-part exam on individual and business tax returns.  To that effect next Tuesday night at 8pm I will be going live on the Incline Wealth Advisors Facebook page to discuss what income you can deduct and exclude on your 2020 tax return. 

By obtaining the IRS Enrolled Agent designation I now have a deeper level on taxes and tax returns to help my clients in one of the most important areas of their financial lives. This has given me the ability to provide a higher level of expertise in the area of taxes and tax planning.  This also allows me the opportunity to provide tax preparation as a service to my clients that are looking for help.  Managing investments in a tax efficient manner can be one of the biggest cost savings for individuals while they are working and especially in retirement.

As part an optional service offering to my clients, I will be meeting with them to review their prior year tax returns. This can make sure that they are taking full advantage of any tax breaks, credits or deductions they may be eligible for.  Making sure that you have the right amount of savings in tax deferred, after tax and Roth buckets can make for the best retirement distribution strategy.  Also knowing what you can deduct and exempt from your income is crucial when building out a wealth planning strategy.

 

Hope you can join my live call next week as we will discuss what you can deduct and exclude from income on your 2020 tax return. Here is the link to the Incline Wealth Advisors Facebook Page: https://www.facebook.com/InclineWealth

 

If you would like to schedule a call or zoom meeting to discuss a review of your investments Click Here

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2020 Annual Market Review

2020 Annual Market Review

2020 was obviously a very chaotic year for the country and for the stock market. Even through all the headline risk of this year the market still stock market still averaged double digit returns. Do you know the performance of your portfolio for 2020? You can use this article as a way to benchmark the performance of your account verses that of the overall market.  Here is a quick look at how the market performed.

 

 

 

 

 

 

If the performance of your account is not keeping up to par with that of the stock or bond market reach out to me I would love to discuss some areas of opportunity for you. 

If you would like to schedule a call or zoom meeting to discuss a review of your investments Click Here

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Set It & Forget It – Automate your finances

Set It & Forget It – Automate your finances

Automating your finances is one of the most reliable ways to maintain solid financial habits and to build wealth.  We often use automation to pay our lenders, utility companies and service providers so why not automate to pay yourself first.  Automating your savings and investing allows you to direct your money first to accomplish your goals instead of wondering where your money is going every month. By having automatic savings, contributions, and investments this will free up time that might have been spent manually moving the money over and investing it yourself. Also, with the ups and downs that we saw in 2020 this can help to remove the emotion out of investing and ensure your money has more time in the market to compound instead of on the sidelines in cash. Also, by paying yourself first this can remove the temptation to make frivolous impulse purchases that can detract from your more important financial goals.

What you can automate:

Now that I touched on the importance of automation we can begin to look at what can be automated. Here is a list of items where you can setup and have them be automated every single month.

  1. 401(k) Contributions – these are a simple way to set a contribution rate and have this contribution pulled directly from your paycheck.
  2. 401(k) Automatic Increase – check with you company 401(k) plan provider and see if your plan allows for this. An automatic increase can be set so that every year your contribution can be increased by 1%
  3. HSA Contributions – similar to your 401(k) HSA accounts can be setup through your employer and contributions can be made directly from your paycheck.
  4. Roth IRA Contributions – the brokerage firm that holds your Roth IRA will be able to setup automatic contributions online for your Roth IRA. Please be aware of the phase out rules and contribution limits for Roth IRA’s when you are setting these up.
  5. 529 Plan Contributions – this is a simple and easy way to ensure your education planning goals are staying on track. Check with your service provider to setup these automatic contributions and also be aware of the contribution limits each year.
  6. Brokerage Account savings – a brokerage account can be a great way to invest your after tax money so that they money can grow and also still provide you with flexibility to withdrawal the money as you need it. Like the other accounts mentioned above these automatic contributions can be setup online with the brokerage firm that holds your account.
  7. Investing and Trading – above I mentioned how you can get the money saved into your accounts and this step allows you to get the money invested instead of having that money simply placed in a money market.  The automatic investment feature allows you to move the money into a mutual fund of your choice automatically after the money has been placed in your account.  If you work with a financial advisor or use a robo advisor such as Betterment they will be able to invest this money for you right away.
  8. Account Rebalancing – setting up automatic account rebalancing ensures that your accounts maintain the asset allocation that you have desired. Many firms will offer annual automatic rebalancing of your accounts so that your accounts stay on track for your current goals and risk tolerance.

Summary

Automating your finances is one of the simplest ways to build wealth, and once setup, can remove any additional effort on your part.  Check with your investment account providers to see if or what options you have to automate your accounts and your investments.

 

If you would like to schedule a call or zoom meeting to discuss a review of your investments Click Here

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Stimulus Round 2: Don’t Leave Money on the Table

Stimulus Round 2: Don’t Leave Money on the Table

Here are a key, less talked about, items in the latest stimulus bill. Check out this video to see if these items may benefit you.

 

Here is a great resource that can help to answer more questions you may have about the stimulus bill. 

https://www.irs.gov/newsroom/treasury-and-irs-begin-delivering-second-round-of-economic-impact-payments-to-millions-of-americans 

Questions on your financial plan or investments?  Click Here

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Merry Christmas

Merry Christmas

Merry Christmas from the Bovard family to yours! Here are some of our Christmas Favorites.

 

Favorite Christmas Movie

Elf

Favorite Christmas Song

Rudolph the red nose reindeer

Favorite Last Minute Shopping Store

Kohl’s

Kid’s top Christmas List Item

Camden: Dog/Trampoline

Cohen: Dog/Kyle Rudolph Poster

Bella: Barbie Dream House

Chase: A big bear

Favorite Christmas Tradition for Bovard Kids:

Elf on a Shelf

 

We hope you have a wonderful Christmas this year and get to spend some much needed family time!

 

 

 

 

 

 

 

 

 

 

 

If you would like to schedule a call or zoom meeting to discuss a review of your investments Click Here

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