Establishing clear financial goals is the first and most important thing you should do when you’re doing a financial checkup. These goals will help you decide which “path” to take in your financial future.
Your financial health is just as important as your physical health so incorporating a regular wellness check on your personal finances is required in order to maintain the most accurate state of affairs. Consistent financial checkups enable you to determine what adjustments are required in order to stay in line with or exceed your economic goals.
A simple assessment reviews the following:
Subtracting your assets from your liabilities calculates your net worth. This assessment allows you to be clear about exactly what you currently own as opposed to what you currently owe. Thorough evaluation of your net worth will allow you to see how much debt to decrease and what assets to accumulate to offset any deficiency.
Calculating your debt to income ratio by dividing your 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 will 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 here are a few steps I suggest you should consider to get your financial affairs in order.
*Create and follow a concise budget
*Take on side gigs to offset income
*Lower your mortgage and utility expenses
Your primary objective should be to increase your net worth by 5% to 7% or more, have a substantial emergency fund and ultimately build wealth so as to retire comfortably.
I am available to consult with you and your family about your financial planning and budgeting needs.
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.
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.
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.
If you are an entrepreneur or considering starting a small business, your 1st consideration will be which business entity is right for you to meet your primary objectives which is to make profits while saving in taxes. Let’s review a few facts to assess which business entity could be right for you and what your tax planner may recommend for tax savings, asset protection, and retirement benefits. Yes, it does matter which entity you choose because that business model directly determines how much money you can save in net taxation by between ten and 40 percent and how much you can invest in an equitable retirement.
Let’s look at the top business entity preferences and how they can possibly benefit your objectives.
Those who receive income via 1099 are independent contractors or freelancers who must pay self-employment taxes in addition to regular income while representing themselves as both employee and employer. You do not have to have any type of corporate entity to be self-employed. Ask your planner based on your income tax bracket if you qualify for any pass-through deductions.
A typical S Corp is a pass-through entity that has no legal responsibility to pay taxes on its corporate income while all profits flow through to the proprietors, therefore the owners pay income taxes on their personal returns.
C Corp (Most Large Corporate Entities)
Pretty much any company that has gone public, or plans to go public, will likely be a C corp. C corp, entities are taxed separately from the shareholders. If your company intends to go public then this may be the entity for you as there are no restrictions on ownership or limits to the number of shareholders you can procure. C Corps offer a lower tax rate but also leaves the potential for “double taxation” on the corporation’s profits and when shareholders distribute their dividends.
A Limited Liability Company (LLC) can be file as a partnership, S corporation, or even sole proprietor. An LLC is a pass-through entity that isn’t required to pay federal income taxes, so the owners will report profits and losses on their personal federal tax returns. Understand as well that many states charge an annual fee for the LLC designation. An LLC’s owner can elect to tax it as a pass-through entity a qualified business income deduction could apply. Discuss with your tax planner what would be the best way to set up the LLC to allow for the benefits the entity has to offer.
Your tax planner will know best based on your business objectives and profession what corporate entity would be in your best interest to initially incorporate to maximize your earnings and ensure a profitable retirement.
If you don’t have a tax professional at your leisure, I am definitely willing to speak to you regarding your objectives.
Reach out to me at JeffreyLevine.Solutions anytime to schedule a free consultation on tax planning, beneficial retirement opportunities, and lucrative business exit strategies.
Mastermind mentors and coaches are often necessary to encourage, support, guide and provide collaborative advice to help their mentee navigate smoothly their professional resources, networks, and leadership capabilities to realize the most results and ultimately profits from their business ventures.
High-quality mastermind mentors and coaches, although seemingly expensive bring a wealth of aid to an individual looking to best harness their responsibility levels to optimize successes in their primary objectives. A mastermind mentor considers your underlying motivations and via extensive evaluation processes aids the mentee to identify and correct deficiencies on both developmental and impersonal levels.
Relationships with mentors or coaches can provide some of the following underlying benefits to mentees:
A direct authority with inside expertise and experience that supports your industry’s vision
Confidence and character-building strategies that help you to be a better person
The ability to draw Higher salary opportunities via direct network building strategies
An educated ally who has your back no matter what
When evaluating a mentor or coach consider the following questions:
What are my short- and long-term mentoring needs?
How do I assess a mentor’s competencies and deficiencies?
How do I approach the mentor once I think they are a good fit?
How do I develop credibility in my respected field?
What are the takeaways to get the most from this mentoring relationship?
Mastermind mentors and coaches create support systems for their mentees often time eliminating guesswork, trial and error while providing honest feedback based on personal knowledge and industry trends. A mastermind mentor can provide insight into living a healthy lifestyle, dealing with difficult people, work/life balance, and of course growing your business.
If you would like to discuss your mentorship needs, how to take your business to the next level of revenues, or are looking for a profitable exit strategy, reach out to me to schedule a consultation at JeffreyLevine.Solutions today.