4 Primary Elements Of an Estate Plan

4 Primary Elements Of an Estate Plan

Estate Planning is a very sensitive topic that most families avoid discussing until it is almost too late. This subject is critical if you have any intentions on leaving your assets to your loved ones. Having an established estate plan ensures a smooth distribution of your assets and eliminates confusion among benefactors

There are four primary elements of an estate plan include a will or living will, a healthcare power of attorney, a financial power of attorney, and a trust.

Last Will and Testament

If you do not have a will then your assets go to probate and the state in which you reside distribute your assets based on the state’s law.  A will identifies who receives your assets upon passing.  It is important to discuss the objectives of your will with your heirs to reduce confusion.  It is also imperative if you have significant life changes like a divorce, guardianship issues, or a change in assets to change the contents of the will in a timely matter.

Healthcare Power of Attorney and Living Will

An (HPOA) healthcare power of attorney is a signed legal document naming a trusted individual to make decisions on behalf of you if you can’t make decisions for yourself in a health-related emergency like incapacitation or terminal illness.  The living will or advanced medical directive outlines your choices regarding life support and medical interventions. These documents should accompany the last will and testament.

Financial Power of Attorney

A financial power of attorney defines who you prefer to make financial decisions on your behalf should you become incapacitated. This document allows the designee to handle your financial affairs like paying your bills or handling your investment matters. This document should also accompany your will.

Trust

A trust is a legal entity that can own your assets (while living or dead) controlled based on your stipulations and determinations.  There are several advantages to having a trust as you ultimately will still control the management of your assets well after your death ensuring the proper usage in consideration of applicable circumstances. Trusts can be set up at any time of your life and should be updated regularly to account for additional assets and beneficiary requirements.

Estate Planning Is Essential Business

There are many other elements that encompass an estate plan and these are just 4 basic but essential components. If your estate planning is not in order, now would be the time to start taking this subject seriously.  I am of service to help you with financial planning or wealth management decisions and look forward to speaking to you regarding your unique requirements. Set an appointment at JeffreyLevine.Solutions today for your free 20-minute consultation.

What Is Net Worth

What Is Net Worth

To calculate your net worth, add up all of the assets you own and subtract all of the liabilities or debts you owe. Net worth includes tangible assets such as your home and cars, investments, and money you have in savings, as well as certain other items of value.

Are assets net worth?

Assets are possessions that could be sold or converted into cash easily. The valuation of assets should be realistic in order to reach precise net worth estimates.

How much should my net worth be?

There is no way to answer that, but the bottom line is that your net worth should increase over time.  As your assets increases and your decrease debts, net worth should increase consistently.

Are income and net worth the same?

Income is all the taxable income and wages earned from working and is most often the primary source of wealth creation but not equal to income. Generating income does not always lead to wealth creation so it is not the main determinant of net worth. Wealth is the net worth of a household versus income which is what is reported on a tax return.

Building net worth is not about how money income you make, or about how much money you spend, but how much you can keep.

To learn more about ways to increase your net worth set an appointment over at JeffreyLevine.Solutions, follow me on Instagram @wealthbuilder_solutions, or on Facebook @J L Wealth Solutions page to get more insights and tidbits related to building your financial knowledge.

Simple Ways to Check Your Financial Wellbeing

Simple Ways to Check Your Financial Wellbeing

Your financial health is just as important as your physical health so incorporating a regular wellness check on your finances is required in order to maintain the most accurate state of economic affairs. Consistent financial checkups enable us to determine what adjustments are required in order to stay in line with or exceed our economic goals.


Let’s outline the steps in a simple assessment:
Calculate Your Net Worth
Identify your net worth by subtracting your assets from your liabilities. This allows you to understand exactly what you currently own as opposed to what you currently owe. Don’t be alarmed if your net worth appears as a negative number. The point of this exercise is to show you how to reach the positive end of the spectrum.
Your primary objective should be to increase your net worth by at least 5% to 7% per month so evaluating your net worth will allow you to see how much debt to decrease and what assets to accumulate to offset the deficiency.

Identify Debt to Income Ratio
The next step would be to calculate your debt to income ratio by dividing the total of your monthly debt payments into your monthly income. A favorable debt to income ratio is around 30% or lower, with 20% being ideal. Anything higher than 30% needs to be rectified, as a higher ratio can adversely affect your credit scores and buying power by lowering your opportunities for credit and tradelines.


Setting clear short- and long-term financial goals can be challenging so armed with this new information here are three steps I  suggest you consider to get yourself either on track or ahead of the game.

1. Create and follow a clear-cut budget.
Whatever you decide is best, make sure it is in a written plan so you can hold yourself accountable for your financial accomplishments and failures. Account for your current and projected income and expenses while setting benchmarks with deadlines that are measurable. Concise budgeting will also help you understand productivity and time variations allowing you to understand how valuable your time is and how to use it wisely.
2. Get a side hustle.
Everyone has a talent that someone else wants to learn. The virtual era has unlimited possibilities open for those who want to teach a class, showcase a product, or promote their services. Just by dedicating a couple of hours a day into this action will make it much easier to reduce or eliminate debt by incorporating additional income streams that you can save or invest.
3. Lower your mortgage payment
Many homes are over-assessed so having your local tax authority reassess your home could save you at least 10% or more every month. You can also find out if your property qualifies to cancel the private mortgage insurance and if you really feel you can’t afford to pay talk to your lender about a loan modification. A loan modification may decrease your monthly loan amount, but increase any balloon payments or the terms on your loan, so do all of your research before accepting any agreements related to your property.

You should be intimately aware of where every dollar is coming from and going to. There are plenty of online tools that can be of great assistance to you or you can reach out to me and I can help you to coordinate your financial objectives. I can help you to evaluate your risk tolerance, study funds that support your goals and values or simply consult you to determine the most viable options to handle your current financial situation.

Schedule an appointment to assess your finances today at JeffreyLevine.Solutions to get on the road to wealth building and financial freedom.

Great Ways To Reduce Your Business Tax Liability

Great Ways To Reduce Your Business Tax Liability

From business expenditures to careful reserves, there are a diversity of approaches that business owners can utilize to reduce the share of their business income that can be taxed.

Four major factors a business should consider are:

Are we making smart purchases and investments?

Do we know which deductions we can legally make?

How do we avoid an audit?

How can we reduce our tax exposure?

Do our charitable contributions count?

Are we eligible for Federal Tax Credits?

To ensure that you are calculating your business taxes correctly, work with a tax preparation specialist or certified accountant throughout the year. A qualified advisor can outline the laws and regulations relevant to your strategic decision-making that will reduce your tax liability and ensure that your business receives every deduction, credit, or tax exemption possible.

I am available at your convenience to discuss these matters, I can be reached at JeffreyLevine.Solutions today.

Basics Strategic Management in Business

Basics Strategic Management in Business

You don’t have to be a rocket scientist to start a business, but it does require you have a basic knowledge of key skills. The key skills involve understanding how to effectively manage people, operations, sales, marketing, strategic planning, and financial accounting objectives.  If these skills are not your strong suit engage consultants, advisors, and employees to supplement what you lack.  Focusing on your strengths and delegating your weaknesses gives you an advantage at rapidly scaling your business.

Strategy is defined as knowledge of specific goals, the uncertainty of unexpected events and the need to take into regard the likely or realistic conduct of others. Strategy is the blueprint of choices in an organization that demonstrate its purposes and objectives and defines the type of company it will turn out to be.

Management strategies are a series of techniques for controlling and directing a business to achieve a set of predetermined goals. They include strategies for goal setting, leadership, business administration, and operational activities that provide a clear sense of direction for the company and its employees about its market, consumers, credibility, and competitors which ultimately induce systematic profitability.

There are many factors to consider when taking on this sort of venture and I suggest getting the right counsel from the beginning to support you in those endeavors. If you or your team would like a consultation to discuss your strategic business planning strategies, schedule an appointment at JeffreyLevine.Solutions today. I would be glad to be of service to your organization’s needs.