The Importance of An Asset Protection Plan

The Importance of An Asset Protection Plan

A well-outlined asset protection plan is a powerful deterrent against lawsuits.  Asset protection planning involves a comprehensive and integrated estate planning strategy that includes short- and long-term financial objectives. When planning, your focus should be to devise a plan that addresses and supports both your professional and personal goals.  Unfortunately, we live in a society where creditors and individuals can be predatory against people with substantial assets, and knowing that the average person never wants to go to court often force people to settle frivolous lawsuits as their game of choice.

Asset protection plans differ depending on the kinds of assets owned. High-risk assets include tools, business equipment, rental properties, and vehicles.  Safe assets include stocks, bonds, and bank accounts.

If you own a business, your primary objective is to separate personal assets from your business assets to prevent any parties from going after your assets. Corporations like LLCs, S, and C Corps are going to be some of the traditional ways to initiate that protection whereas sole proprietorship, DBA, or general partnership offer limited or no protection against these types of predators.  Trust and offshore accounts also limit the risk of exposing your assets.

Asset protection is priority 1 for those individuals who want to secure themselves from lawsuits however there is no single way to protect your assets as everyone’s needs adherently differ. A qualified asset protection professional will analyze your personal and professional risks, exposure, and possessions along with your goals for you, your beneficiaries, and business so your asset protection plan is specifically catered to your needs.

 

To discuss your financial planning objectives I am available upon request and can be reached at my website JeffreyLevine.Solutions for inquiries and appointments.

Business Recordkeeping Tips

Business Recordkeeping Tips

Good recordkeeping may be the most important task you can do to prevent you from incurring tax issues on your business. Records allow you to prove that you are eligible and entitled to listed deductions and expenses.  There is no way to avoid proper recordkeeping

Canceled checks, daily receipts, and petty cash transactions make up the contents of a well-organized accounting ledger that has chronological journal entries and reflects every business-related transaction. Each original document should be saved to a hard drive to prevent confusion allowing for complete transparency. All the financial statements issued by any online bank should be printed and filed as original reference documents, as well as all employee payroll expenses.

Financial records should be kept for no less than 4 years and employee records for no less than 7 years. If any property is involved, keep all records even after you sell the property as often times there can be post-sale occurrences that render a property owner to reference related documents.

If you have not already been keeping accurate records, start today.  The IRS and your state demand that any business pays their fair share of taxes, however business owners are entitled to certain deductions and refunds so correct and accurate records are essential to claim the benefits you are owed.

If you think you need assistance organizing your books I am happy to provide a 20-minute free consultation to discuss your recordkeeping financial planning, wealth management, and exit strategy requirements.

Schedule your consultation at JeffreyLevine.Solutions and follow me on Instagram @Wealthbuilder_solutions for more insights and motivational mantras related to wealth-building strategies.

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.

What Are the Advantages to a Holding Company for Tax Purposes?

What Are the Advantages to a Holding Company for Tax Purposes?

If you own shares in a company understand that if you collect any dividend payments from that company, you will be responsible for the tax consequences. However, if the holding company you own also owns your shares in the corporation, dividends paid to your entity will largely be tax-free.

United States tax law allows a holding company to receive a deduction for dividends received from its corporation and to defer a percentage of the taxable income.

What Is a Holding Company?
The traditional holding company has no operations, activities, or direct business; however, its specific purposes are to owns shares in another company. The assets can consist of shares of stocks that can be backed by anything that has value. If you are planning on investing in companies through stocks, securities, or bonds, you will encounter the term “holding company.” Many of the most successful companies in the world are holding companies.

Ways To Use A Holding Company
 Assets in a retirement fund can be utilized as a type of pension if required if they are in a holding company
 Company profits can be converted to the holding company as dividends
 Tax-free dividends can be distributed to the holding company as the beneficiary
 Holding company shares can be placed in a trust
 The holding company can be held by single or multiple people creating the leverage to divide dividend payments and taxes.

Subsidiary vs. Holding Company
A company can set up a subsidiary, and if the subsidiary doesn’t succeed, the parent company is not liable for the debt as the two companies are separate entities who pay their own taxes on their income. A subsidiary company can make its own choices and manage itself, without approval from the parent company which can still maintain its control by just being the sole shareholder.

To learn more about how you can benefit from revolving your tax plan around your holding company and subsidiary company, schedule your free consultation today at JeffreyLevine.Solutions today.

Calculating Your Retirement

Calculating Your Retirement

If you are around the age of 50, I am sure you are considering the best financial decisions that will benefit you and your loved ones while allowing you a comfortable retirement.

A retirement plan must be concise, relevant, and based on a growing financial model. To best assess your retirement goals the best thing you can acquire is a retirement calculator. You can find one on a general search engine. The retirement calculator will help you see exactly how much is enough to maintain your financial comfort. This tool will allow you to calculate expenses vs income and investments as well as assist with understanding what will be the best age to tap into social security benefits or pension when required, how long your 401 (k) or IRA contributions will last and the value with leveraging your investment income.


Setting realistic goals that reflect your true finances including short and long term expenses can significantly aide you into a smooth transition once you leave the workforce and journey into the world of a successfully planned retirement.


When calculating your retirement financial needs consider as a priority the longevity of your existing mortgages, estimate health expenses, including long term care, and make sure you are investing the maximum into your retirement accounts.
While making sure that your investments continue to grow and are sustainable, remember its always ok to take on a freelancing gig or a hobby like teaching something equitable to those who need your expertise. It is a great way to earn extra income and do some great things in your spare time.

 


I would love to assess and ascertain your retirement goals and am looking forward to helping you realize a relaxed transition with proper planning. Feel free to reach out to me, no matter what age you are as retirement is not an age thing, but an inevitable thing depending on goals and circumstances. I can be reached at JeffreyLevine.Solutions where you can schedule your free 20-minute consult.

Key Questions to Ask When Tax Planning

Key Questions to Ask When Tax Planning

Ask yourself these key questions when tax planning to ensure that you receive the largest possible tax savings:

1. Does your tax team include a tax planner or advisor who is knowledgeable about current tax laws?

2. Is your strategic tax planner aware of your entire financial agenda?

3. Is your advisor knowledgeable in both personal and business tax laws and filings?

4. Have you reviewed your previous tax years returns line by line with the advisor to discover viable changes relevant to you?

5. Are your tax, financial, and legal team on the same page?

6, Are you getting your primary tax advice from a neighbor or family member?

7. Does your current tax plan encompass your estate goals, retirement objectives, philanthropic interests, existing investments, business revenues, and personal income?

8. Are you meeting with your advisors between April and September?

9. Is your investment income realizing the most tax-efficient benefits?

10. Does your retirement plan include IRAs, 401Ks, and substantial life insurance where applicable?

Keep in mind there is no order of importance related to these questions as they are all equally important to your overall financial success.

If I can be of service to help you design, plan, and implement your financial or tax plan do not hesitate to reach out to me at JeffreyLevine.Solutions today for your free 20-minute consultation.