Managing wealth when your largest asset is real estate requires thoughtful strategies. From tax-efficient tools like 1031 exchanges to diversification through DSTs and UPREITs, each option offers unique benefits and trade-offs. Finding the right path depends on balancing growth, liquidity, and long-term goals while navigating the complexities of real estate investment.
Read MoreThe Supreme Court's Connelly decision reshapes estate planning and buy-sell agreements for business owners.
Read MoreCompleting an end-of-year financial checklist is essential for setting yourself up for success in 2025. This process will allow you to review your progress and goals from 2024 while also helping you refresh and enhance your financial plan as you head into the new year.
Whether you like to budget or not, assessing your spending habits is the essential first step. All financial progress stems from spending less than you make. If you consistently budget, this is the time to figure out what worked well and what needs to be changed. Think about these questions as you forecast for next year.
How will household income change in 2025?
What significant expenses am I anticipating in the coming year that I can plan for?
Am I saving and investing enough of my income?
Much of your tax planning will have to wait until next year, but getting a few items in order can be helpful before tax season. You can collect business expenses, charitable giving receipts, childcare expenses, and other tax-deductible items.
The final piece of preparation for tax season would be to decide how you plan to prepare your taxes. You could do it yourself or hire it out. There is no wrong way to go about it, but now is the time to reach out and find a good CPA that you can work with to optimize your tax situation.
The end of the year is the perfect time to review your annual contributions to your retirement accounts. In 2024, employer-sponsored plans such as 401(k), 403(b), or 457 allow you to contribute up to $23,000. It's important to note that this amount does not include any employer match. If you are 50 years old or older, you are eligible for a "catch-up" contribution, allowing for an extra $7,500 of contributions. This raises your total maximum contribution to $30,500 for the year.
The contribution limit for individual retirement accounts (IRAs) in 2024 is $7,000, with a $1,000 catch-up contribution available for those 50 or older.
If you have a financial advisor, they should have scheduled a year-end planning meeting by now.
If you manage your investments independently, this is an excellent time to review your strategy, assess your performance, and rebalance your portfolio. If you feel it's time to seek professional help, consider finding a fiduciary advisor who prioritizes your best interests.
Roth conversions involve transferring pre-tax dollars into a Roth account, which will then grow tax-free. This approach can be great for someone nearing retirement with much of their wealth in pre-tax accounts. It can also benefit young professionals with plenty of time for the investment to grow. However, this only makes sense for some, so consult a financial professional to weigh the pros and cons of this option.
Open enrollment occurs at different times of the year and is dictated by your employer. It is most commonly presented around early November and allows you to review or change employee benefits options.
This is an excellent time to ensure you get the best insurance plan value. You and your spouse may even qualify for additional plans, such as term life insurance or disability coverage, at little to no cost.
While this does not change often, it is necessary to ensure that it is up to date. Here are some accounts that should have a beneficiary associated with them.
Retirement/Investment Accounts (401k, 403b, 457, and IRAs)
Bank Accounts
Life Insurance Policies
Properly assigning beneficiaries can help you have peace of mind that your loved ones will be cared for.
This checklist can help you clearly assess your financial situation and prepare for success in 2025.
References
https://www.irs.gov/newsroom/401k-limit-increases-to-23000-for-2024-ira-limit-rises-to-7000
Fiduciary Financial Advisors, LLC is a registered investment adviser and does not give legal or tax advice. The information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. The information contained herein has been obtained from a third-party source which is believed to be reliable but is subject to correction for error. Investments involve risk and are not guaranteed. Past performance is not a guarantee or representation of future results.
For business owners, the importance of buy/sell agreements cannot be overstated. These contracts are designed to protect both the business and its owners by setting clear guidelines for ownership transitions in case of unforeseen events such as death, disability, or retirement. Without such an agreement, businesses can face severe disruptions, leading to internal disputes or financial strain.
A buy/sell agreement helps ensure that ownership changes are handled smoothly by defining how shares will be sold and at what price. More importantly, it prevents the business from falling into the hands of unintended parties, like an owner’s ex-spouse or an outsider who could negatively impact the company’s operations.
By incorporating key provisions such as purchase price determination and funding mechanisms, buy/sell agreements give businesses a solid foundation for navigating ownership transitions, ultimately protecting their long-term success.
Read MoreOne of the most common questions people ask me is how to determine the best way to save for retirement. It’s a fair question because there is no one-size-fits-all retirement saving and investing approach. Each person’s unique financial situation can impact how they save for retirement. So, before we jump into a general recommendation for the order of operations in retirement savings, consult a financial advisor-–like myself-–to discuss your individual financial considerations that can influence your retirement outlook.
Employer retirement plans, such as 401k, 403b, or 457, are often the best and simplest way to begin retirement savings. Not all plans are created equal, depending on your employer, but these plans contain some significant benefits worth taking advantage of.
Employer-sponsored retirement plans typically have low to no barriers to entry. In most cases, employees are auto-enrolled in the company plan, with some employers requiring a small contribution from each employee. If not automatically enrolled, opting into the plan is often as simple as filling out a few forms.
One widely recognized benefit of employer plans is the associated company match. While not mandatory for all employers, a company match is becoming a common addition to benefits packages. I like to call this “free money”. By contributing a percentage of your paycheck, your employer agrees to match your contribution up to a specified limit. For example, “Employer agrees to match 50% of employee’s contribution up to 6%”. This means that if you contribute 6% of your paycheck, your employer will add an additional 3% to your contribution. This is a key reason why work-based retirement plans are so effective.
The final distinction of these employer plans is that your contributions come directly from your paycheck before you receive it. This makes the process of saving for retirement very simple and automated. Automatic deduction enables you to save for retirement before recognizing that money as income.
I know what you’re thinking—having an emergency fund has nothing to do with retirement savings. While it doesn’t directly count as retirement savings, it’s a necessary step in the equation. To fund your retirement, you need to ensure that your current financial situation is under control. The control starts with having a safety net in place. An emergency fund allows you to manage your current financial picture before addressing your future financial picture. By establishing an emergency fund, you can stay on track with your retirement goals when unexpected expenses arise rather than halting retirement contributions to cover unforeseen costs. Once you’re contributing to your work-based retirement plan and have an emergency fund established, we can move on to other retirement savings accounts.
Individual Retirement Accounts (IRAs) are often the next step in retirement savings. These accounts are separate from employer plans but still hold numerous benefits. There are two main types of IRAs, each effective depending on individual financial considerations. While this won’t be a deep dive into these accounts, here is a quick overview of their function and benefits.
A traditional IRA is a pre-tax retirement account. Contributions are made pre-tax, resulting in a current-year tax deduction. The money invested in the account grows and is taxed at an ordinary income rate when withdrawn. This is often referred to as tax-deferred, meaning that you defer your taxes until withdrawal.
A Roth IRA is considered a post-tax retirement account. Contributions happen after taxes are taken out of your income. Since you pay taxes upfront, that money grows tax-free. Regardless of your tax bracket at withdrawal, you won’t have to pay taxes on the money in your account, assuming you follow proper withdrawal guidelines.
This is where a professional comes in handy. Many individuals benefit from utilizing both IRAs at different points in their careers, often dictated by their current income. In most cases, ask yourself, “What is my current tax bracket compared to my retirement tax bracket?” If your current tax bracket is higher than your projected retirement bracket, it might make sense to contribute to a traditional IRA over a Roth. But a Roth could be the most efficient option if your current tax bracket is lower than your projected retirement tax bracket. The maximum contribution for an individual in 2024 is $7,000 for those under 50 years of age and $8,000 for those 50 and above.
Health Savings Accounts (HSAs) are great financial tools for some individuals. An HSA is primarily a form of health insurance an employer could offer. It’s a high-deductible plan that allows you to put money into an account for qualified medical expenses. HSAs often have an employer contribution attached. Due to the high deductible, these plans are great for healthy individuals with lower medical needs.
There’s a point where an HSA can secondarily be used as a retirement savings account in addition to its primary use as a health insurance plan. This is when you have unused money in the plan to be invested. This allows you to utilize the “triple-tax advantage” of using an HSA as an investment vehicle. Contributions are tax-deductible, while the earnings and withdrawals are tax-free when used for medical expenses. After the age of 65, withdrawals can be taken from your HSA account for non-medical expenses and taxed like a traditional IRA. For many individuals, the HSA functions as a great tool for wealth accumulation after maxing out your IRA.
The final piece of the puzzle for retirement savings is a taxable account or brokerage account. This account does not offer the same tax benefits as the previously mentioned accounts, which is why it is last on the list. Contributions to these accounts occur after taxes, and the growth or income produced each year counts towards your taxable income for the year. With that being said, the benefit of this account is that you can contribute and withdraw as you please. Because the money is likely invested, it may take a few days to sell and withdraw, but there is no age limit to take the money out. What you lose in tax benefit, you gain in liquidity.
These accounts have multiple purposes but are commonly used to create a “bridge account” for retirement. Because work-based retirement plans, IRAs, and HSAs all require you to be a certain age before making withdrawals, you can use a taxable account to save and invest money if you decide you want to retire early. This account functions as the “bridge” to fund your life from when you retire until you start collecting Social Security or retirement account distributions.
As I mentioned at the start, this is not a blanket approach to retirement savings for everyone. While the structure may work for some, it is important to talk with an investment professional to consider how your income, retirement plan, and goals will impact your strategy. What’s universal about this information is that everyone can contribute to retirement savings in multiple ways to ensure their financial picture is on track.
References
https://www.bogleheads.org/wiki/Prioritizing_investments
https://www.bogleheads.org/wiki/Health_savings_account
https://thecollegeinvestor.com/1493/order-operations-funding-retirement/
Fiduciary Financial Advisors, LLC is a registered investment adviser and does not give legal or tax advice. The information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. The information contained herein has been obtained from a third-party source which is believed to be reliable but is subject to correction for error. Investments involve risk and are not guaranteed. Past performance is not a guarantee or representation of future results.
Protection can have various meanings in the financial industry, and there are several ways to safeguard your income, family, and financial future. While this isn’t an exhaustive list of strategies, it outlines some crucial topics to help you establish proper protection across all facets of your life.
Money Management
Knowing your monthly cash flow is one of the most important aspects of protecting your income. This knowledge allows you to be intentional with your spending. Additionally, having an emergency fund will enable you to be proactive when unexpected expenses arise, keeping you on track instead of starting over.
Life Insurance
I typically recommend that most people have a term life insurance policy. Those who are married and, even more importantly, have kids can leverage an inexpensive term life policy as protection against unforeseen events. These policies range from 10 to 30 years and help bridge the gap while dependents are in the house, giving you added peace of mind.
Disability Insurance
Disability insurance isn't for everyone, but it is worth considering. Many employers offer it for free or at a low cost. This can be a great way to protect your income in case of bodily injury. You will first need to assess your ability to find work in the event of disability. From there, you need to weigh the cost of disability insurance against your confidence in finding other work.
Health Insurance
Health insurance is essential, but choosing the proper plan is where the cost savings come into play. It is crucial to analyze all plans that you qualify for and understand which plan will offer the most significant value based on your family's needs. When open enrollment or a qualifying life event comes around, analyze your coverage and select the right plan for the following year.
Estate Planning
Estate planning primarily refers to having a will or trust in place. This helps to protect your accumulated assets for your family. While estate planning can be complicated for some, working with a good estate planning attorney can help you figure out the best path forward. For those with children, the estate plan becomes increasingly more critical.
Lifestyle Creep
Establishing family priorities can be an essential way to protect from income loss due to lifestyle creep. Lifestyle creep means that your lifestyle costs increase along with your income. Once established, this is more challenging to reverse. It often presents as a higher mortgage or a more expensive car payment. Establishing family priorities can be the key to preventing lost income due to lifestyle creep.
Calculated Risk
Protecting your financial picture involves not only your current financial situation but also your future. Investing is a crucial piece of your financial puzzle, but it must be calculated and intentional. I elaborate on this topic in my article, “A Beginner’s Guide to Investing.” If you are unsure how to be intentional about your investing, reach out to a fiduciary financial advisor, like myself, for assistance.
Don’t Leave Money On the Table
This can present in two primary ways. The first was already discussed and is your company's free or extremely low-cost insurance options. These are great programs, so take advantage of them when you can. The other way I see this often happening is by not getting the employer match on a retirement plan. Most employers will offer a match of 3% or more, which is essentially free money. Don’t miss out on these great employee benefits.
Tax Planning
Tax planning should be encompassed in multiple areas of your financial plan. You should optimize your tax efficiency through your withholdings, deductions, and investments. To do this, connect with your financial advisor and CPA to achieve the best outcome in all aspects of tax planning.
References
https://www.guardianlife.com/insurance/income-protection-strategies
https://www.investopedia.com/articles/younginvestors/08/generation-y.asp
Fiduciary Financial Advisors, LLC is a registered investment adviser and does not give legal or tax advice. The information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. The information contained herein has been obtained from a third-party source which is believed to be reliable but is subject to correction for error. Investments involve risk and are not guaranteed. Past performance is not a guarantee or representation of future results.
Leanne Rahn had the privilege to be featured in MoneyGeek to talk to readers about “How to Find the Best Car Insurance for Women”.
Leanne discusses her recommended insurance professionals and why gender is used for calculating premiums.
Fiduciary Financial Advisors, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.
One of my favorite tax strategies for college professors and others is a Health Savings Account (HSA) offered through your workplace. Read more about three steps to take full tax advantage of your HSA: 1) make maximum contributions, 2) invest in stocks and bonds, 3) delay withdrawals as long as possible.
Read More
This month, I had the opportunity to sit down, interview-style, with insurance agent, Emily Romeyn, and get all the secrets on how to save money on insurance as newlyweds. I mean, who wouldn’t want to pay less in insurance and use those savings to maybe buy a little more Qdoba? (Sorry, Chipotle). Keep reading to be in on the insurance-saving, Qdoba-funding, dare I say, magical ways to have some more jingle in your newlywed pocket.
//
L: So, Emily, tell us - what kind of insurance do newlyweds have the opportunity to save money on?
E: Newlyweds can utilize their rental, home, and auto policies to take advantage of these savings. The best way they can do this is by combining their two individual policies into one.
One thing to note is most companies I work with actually only run the credit score of the first applicant. That’s a huge benefit if one spouse doesn’t have the best credit. We simply put the spouse with the better credit as the first applicant. There is room for strategy in that specific scenario.
I would tell newlyweds that if they keep their individual policies, still check in with their insurance agent because they could have the opportunity to be rated differently. Insurance companies often think of you as a lower risk if you are married versus not.
L: What’s an estimated savings amount that they could expect to be available?
E: This really just depends on the individuals and the situation. A lot of factors go into this like what their credit scores are, what they are combining, their associated risk through the insurance company’s eyes, and so on. The best route to find out a realistic savings amount is to check in with me and we can dive into those specific factors a little more.
L: Is there an expiration date on these saving opportunities that they should be aware of?
E: Nope! Obviously, the sooner you take advantage of the savings the better for your wallet. But, in reality, the potential savings are always at their fingertips.
L: Okay, this sounds like SUCH a good opportunity for newlyweds. What steps need to happen to take advantage of the potential savings?
E: I would say the first step is to combine your health insurance policies to be on one policy together. When we work together, we can actually coordinate your auto and health insurance policies to save you some dollars down the road. Part of auto insurance is medical coverage. Typically, I like to see this as unlimited coverage. Plus, it covers you lifelong. However, as you can probably guess, unlimited lifelong medical coverage can be expensive. When we coordinate your health insurance and auto insurance, we actually can get a letter from your health insurance stating if medical coverage were needed, the auto insurance company can bill the health insurance company first. This is a great benefit that allows you to have amazing coverage at a potentially lower cost.
The second step would be to call your insurance agent to notify them of the changes. It’s really as simple as that.
The other thing I would add is if they are changing their last name, it is usually helpful to have this completed before changing and combining policies first. It really saves you the headache of having to notify us again later down the road. Of course, you can still do this at a later date but it’s often just easier to have it complete before.
L: How do you personally help your customers shop for the best insurance deals? What can they expect?
E: Great question! First step is getting to know them. This is important not only to build that foundational relationship but also we need to get a better understanding of what is important to them and what we need to insure.
From there, I use a comparative rater which compares about a dozen of our top insurance companies. I evaluate not only the pricing each insurance company is offering but also what I know about the company in general. For example, one of our top companies offers a 24/7 call center. If I have a customer who works an odd shift and the 9-5 schedule just doesn’t work for them, this might be a good company for this specific customer.
After I determine the best of both worlds between the pricing and any special circumstances, I present the quotes to my customers. I always send a video proposal going over the quote that walks them through everything they need to know. I find the video proposal to be super helpful for my customers.
The last step is for the customers to decide on a company that will be best for them and we proceed with getting the new policy in good order. That’s it!
L: Emily, I understand you are an Independent Agent. What does that mean in the insurance world and why should newlyweds work with you?
E: As an Independent Agent, I have access to - literally - hundreds of companies. We don’t have our own insurance products that we are trying to sell. Our goal is to get the best price possible for our customers.
On the other hand, an insurance agent who is not an Independent Agent is tied to that company. They only have their company’s products that they are looking at. Often, in order to be competitive in terms of pricing, they will sometimes cut coverage in not the best ways mainly because they can’t just shop the next company. Where I, as an Independent Agent, just keep shopping with other companies if the price isn’t what the customer is looking for.
The other thing is let’s say a customer renews their policy and comes to find out their price has increased. If you are working with me, we can continue working together but we simply find a new company with a different policy. Someone who is not an Independent Agent is tied to that company so more than likely, the customer is left trying to find a new agent. Not ideal.
Also, who else hates the 1-800 numbers? Plenty of us. When working with me, I act as your middle man in case of a crash or something happens. You don’t just have to call that annoying 1-800 number and wait on hold. I’m here to help.
L: Wow. Seriously such good info, Emily! Is there anything else you would say to newlyweds that may be beneficial?
E: I would say getting married is a great time, in general, to review and make sure everything is covered properly as you are starting to build a life together.
Something to note is that when you move in together, the belongings of the other person are not just automatically covered - even when you get married. Notifying me of your changes is going to be the best route to take so we can make sure all is in good order.
I also recommend newlyweds do a simple video walkthrough of everything you own. In case of an emergency, you don’t need to try and remember everything you owned in an already stressful situation. I would encourage them to make this a priority to start their new life well prepared.
L: Thank you, Emily, so much for your words of wisdom! How can newlyweds get in touch with you if they want to act on these insurance savings?
E: Absolutely! They can shoot me an email at emily@westmichgianins.com or call my office at 616-866-3180. Can’t wait to connect!
//
I wasn’t joking when I said Emily would fill you in on some amaaazing and simple ways to save some cha-ching. But really though - what are you waiting for? Emily is here to assist you and answer all your questions along the way. Insurance savings (and Qdoba) are right around the corner!
Emily Romeyn Is an Independent Insurance agent In Grand Rapids Michigan. Pairing families and individuals with insurance that fits their unique life and needs is her specialty. She is a certified personal insurance specialist.
When she is not working you can find her spending time with her husband and two sons, taking photos, or attempting to re-create something she saw on Instagram. She is Michigan born and raised and loves this beautiful state (when it's not freezing).
P: 616-866-3180
Leanne Rahn is a Fiduciary Financial Advisor working with clients all over the US. If you don’t know what a Fiduciary is, Leanne encourages you to look it up (or even better - check out her website!). She swears you won’t regret it. Women entrepreneurs, newlyweds & engaged couples, and families who have special needs children are Leanne's specialties.
She loves a good glass of merlot, spending time with her hubs and mini Goldendoodle, and all things Lake Michigan. She could listen to the band Elevation Worship all day long and is a sucker for live music.
Here, at Fiduciary Financial Advisors, we take our fiduciary oath seriously. We hold these five principles:
I will always put your best interests first
I will avoid conflicts of interest
I will act with prudence; that is, with the skill, care, diligence, and good judgment of a professional
I will not mislead you, and I will provide conspicuous, full, and fair disclosure of all important facts.
I will fully disclose, and fairly manage, in your favor, any unavoidable conflicts
Fiduciary Financial Advisors is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.
