Financial Planning

College plans are typically created by parents or guardians interested in establishing and growing savings accounts with funds specifically allocated to cover the cost of their children's college education. There are many options and factors to consider when it comes to choosing a plan such as family income, choosing tax-advantaged programs, and more.

Elder care planning is a comprehensive strategy that helps define a senior's wishes and assists designated caregivers and/or advocates in handling the physical, personal, and financial affairs of a senior aging into the last phases of life. Long-term care (LTC) is just one, very important segment of total elder care planning. 

Estate planning is the preparation of tasks that serve to manage an individual's asset base in the event of their incapacitation or death. The planning includes the bequest of assets to heirs and the settlement of estate taxes. Most estate plans are set up with the help of an attorney experienced in estate law.

A financial plan is a comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans. Most individuals work in conjunction with a financial planner and use current net worth, tax liabilities, asset allocation, and future retirement and estate plans in developing financial plans. These metrics are used along with estimates of asset growth to determine if a person's financial goals can be met in the future, or what steps need to be taken to ensure that they are.

Life insurance is one of the most important parts of your financial plan and can also often be one of the most overlooked. No matter what phase of life you're in, there's an insurance policy that makes sense for you. Young couples with children should focus on maximizing their death benefit. Middle-aged people are typically in the most prosperous stage of their life and should use life insurance to supplement retirement planning. Seniors should focus on how they're going to pass wealth onto their next generation. Learn more about Lifetime Planning from The CPA Journal.

Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets.

Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency. Through tax planning, all elements of the financial plan work together in the most tax-efficient manner possible. Tax planning is an essential part of a financial plan. Reduction of tax liability and maximizing the ability to contribute to retirement plans are crucial for success.

A 401k plan is an arrangement that allows an employee to choose between taking compensation in cash or deferring a percentage of it to a 401k account under the plan. The amount deferred is usually not taxable to the employee until it is withdrawn or distributed from the plan. However, if the plan permits, an employee can make 401k contributions on an after-tax basis (these accounts are known as Roth 401ks), and these amounts are generally tax-free when withdrawn. 401k plans are a type of retirement plan known as a qualified plan, which means that this plan is governed by the regulations stipulated in the Employee Retirement Income Security Act of 1974 (or ERISA) and the tax code.

Source: Sharper Insight. Smarter Investing. (n.d.). Retrieved March 7, 2019, from https://www.investopedia.com/

Summit Brokerage Services, Inc., its affiliates and Premier Planning Group do not give tax or legal advice. You should consult an experienced professional regarding the tax consequences of a specific transaction.