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Financial Planning



  The art of financial planning is the process of setting financial goals and objectives during life, designing strategies, and monitoring progress towards achieving them. This includes strategies for investment, income tax, college, insurance and risk management, employee benefits, retirement, and estate. Both College and Retirement Planning require an Investment Advisor, which we discussed in the Investment Advisor Section of this website. Financial planning engagements can be comprehensive and include all topics discussed above or may be modular and only contain one area, such as retirement planning. We are here to provide advance financial planning solutions to you and your family, now and in the future.

Recently, we met with a 55 year old client and his wife who wanted to retire in seven years. They needed our help to develop a financial plan to get from point A (now) to point B (retired). After our initial meeting we asked them for a copy of their most recent tax return and to complete a financial planning questionnaire. This questionnaire provided financial data, including: a personal balance sheet (what you own and who you owe), income & expense summary (funds in and funds out), and a statement of investment assets (funds for investing). It also included data necessary to prepare an annual budget and expected annual savings for the next seven years. From this information we were able to build an investment portfolio that will make it possible for this couple to enjoy a worry free golden retirement.



  In 1789 Benjamin Franklin wrote the following, now famous quote in a letter to Jean-Baptiste Leroy in which he stated, “In this world nothing can be said to be certain, except death and taxes.” Estate planning focuses on the disposition of estate assets, and minimizes your family’s federal tax obligation should the time come that you can no longer support these assets. Estate planning also involves the acquisition and preservation of an estate during your lifetime; including building tax-sheltered retirement benefits and investments. Usually requiring a team of CPAs, appraisers, attorneys, financial planners, life underwriters, and trust officers, estate planning involves complex tax law; including federal income tax, estate tax, gift tax and generation skipping transfer tax. Without proper financial and estate planning you place yourself and your estate in serious jeopardy and endanger the financial security of your family.

We recently met with a retired couple who have sizable real estate holdings and wanted to transfer these assets from their estate to their children. Together with an estate planning attorney, we designed an annual gift program to take advantage of the annual exclusion and to remove these assets from their taxable estate. We also hired an appraiser to establish the value of each property transferred to reduce the risk that the IRS would challenge our valuation. Early the following year we filed the annual U. S. Gift Tax (and Generation-Skipping Transfer) Tax Return. By establishing an annual gift program we were able to transfer the majority of the assets and reduce the size of the estate subject to probate and estate taxes. In addition, we were able to reduce the parent’s income taxes and shift income to other family members who are in a lower tax bracket.



Our job is to help you accomplish your financial goals as you journey down an ever-changing path toward your dreams and successes.

Give your child a head start in their life. Call us to discuss college funding. Considerations for funding include federal financial aid programs such as Federal Direct and FFEL Stafford Loans, Federal Pell Grants, Federal Supplemental Education Opportunity Grants, and Federal Work Study. Your child might also qualify for various scholarships and financial aid provided by college, community, or private businesses. Also available are qualified tuition programs including Code Sec 529 for both public and private institutions which require you to give up control of educational funds with penalties if the funds are used for other purposes. But, if you would rather establish an education fund and retain control, we will build an education portfolio to accomplish this goal.

Congratulations – if you have recently celebrated your 50th birthday you are now a Pre-Retiree. Having achieved a degree of financial security, we should review your financial plan in detail. With retirement in sight, we are focused on achieving your investment portfolio’s “critical mass”. You definitely do not want to outlive your investments. Critical Mass is a nest egg sufficient enough to outlive you. With less than ten years from retirement, you are near the peak of your earnings and need to maximize all retirement savings vehicles, such as pension plans, profit sharing plans, 401(K)s, IRAs, and Roth IRAs. You’ll want to reduce your risk to protect your investments from an untimely market reversal, and at the same time realize that increasing inflation risks exist. You’ll want to review your health insurance coverage, long term care policy, and the age you will apply for social security. We’ll work together to project your annual budget from now to retirement and adjust your financial plan as necessary.

After a lifetime of hard work, alarm clocks, and set routines, the big day has arrived and you now are “officially retired.” After a gradual adjustment, you may fill this stage of your active retirement with trips to numerous foreign countries, being an annual snow bird, and happily spending more time with your grandkids. Many retired clients recount wonderful memories of what should truly be one of the best times of our lives.

Legacy planning begins in this life around age 75 to 80, and continues after this life to provide financial benefits to those individuals and organizations you love. Planning your legacy involves generating sufficient income to continue your lifestyle and provide future financial benefits to loved ones. Revocable Living Trusts, Charitable Remainder Trusts, and Sale and Leaseback of Principal Residence are available to provide you with income and federal tax benefits. They can also protect the family home from being lost should extended stay nursing care be required. These estate planning tools remove assets from your taxable estate and produce tax benefits for you and your family. Clearly, you can see the tax benefits of an advisor who is also an expert in federal income taxes to help safeguard your legacy for both you and your family.

Are you ready to secure your financial freedom for a Golden Retirement right now? Our professional investment advisor, tax planning, and financial planning services will turn your dreams of financial freedom into reality. The choice is yours, so pick up the phone and call our office for an initial no obligation free consultation! Looking back, it will be one of the wisest decisions you ever made.

Capital Management Resources, LLC
1620 Bay Street
Port Orchard, WA 98366
(360) 876-7743 ph. (360) 876-9460 fx.