Planning Network Partners

Cost Segregation 101: A Strategy Every Real Estate Investor Should Consider Sometimes, spending a little money can save you money. This is likely true if you own real estate and have been deducting depreciation on a straight-line basis over 39 years (for commercial) or 27.5 years for residential. There is another way to deduct depreciation – but you need more information in hand.   And that’s where spending a little money comes into play. If you hire a specialized engineering firm to review and identify the various costs of the individual components that make up the building structure, the building’s components may qualify for 5-year, 7-year and 15-year property for tax depreciation purposes.   A cost segregation study maximizes cash flow benefits if performed in the initial tax year a building has been placed in service. However, a study can be performed years after a building has been purchased and put into service. While not as significant as a Year 1 study, great sayings can still be achieved in certain circumstances.   Furthermore, if you live in a state with its own income tax, it may help you reduce state income taxes.   The cost of these studies is relatively minor in comparison to the tax benefits they produce.   Can we help you? DM me or click on the Book an appointment link, and we can talk about it.   #costsegregation #realestate #investment #taxplanning #taxsavings #planningnetworkpartners 

Insurance: The Multi-Tool of Financial Planning Life insurance really is the Multi-Tool of Financial Planning. Some of the more well-known uses are - Covering Final Expenses, i.e., Funeral/Burial - Replacing years of lost income - Paying off debt - Education funding for the children - Cash for other obligations, i.e., providing for aging parents Some lesser-known uses are - Charitable Planning - Estate Planning - Wealth Transfer - Estate Equalization - Funding Buy/Sell Agreements - Non-Qualified Deferred Compensation Plans - Tax Planning - Golden Handcuffs - financial incentives and benefits that employers use to keep top-performing employees from leaving - Golden Parachutes - a large financial compensation or substantial benefits guaranteed to company executives upon termination - Living Benefit, i.e. Critical/Chronic Illness Riders - Income Planning, i.e., Retirement/Education Funding - Cash Flow - Used as collateral for a loan. Note: if you die before the loan is paid off, the death benefit will be reduced by the amount of the remaining loan Which of these would you like to learn more about? Can we help you? DM me or click on the Book an appointment link, and we can talk about it. #planningnetworkpartners #lifeinsurance #charitableplanning #estateplanning #wealthtransfer #estateequalization  #buysellagreement #nonqualifieddeferredcompensation #taxplanning #taxplanning #employeeretention #goldenhandcuffs #goldenparachutes #livingbenefits #incomeplanning #cashflow #loans

What Is My Insurance Policy Worth? Yes, you can sell your life insurance policy. But for how much? Well, that depends. With the retirement crisis and increased medical costs, more senior policy owners are using life settlements to unlock the value of unwanted/unneeded life insurance policies and use the funds for all sorts of needs like funding retirement, long-term care, or medical expenses. How much they can get for the policy however, depends on several factors, such as the cost of insurance changes or significant changes in insured’s health. Like all markets, sometimes it’s a seller’s market and sometimes it’s a buyer’s market. Also, the market is impacted by buyer’s purchase parameters. Ultimately, families should consider the cost of continued premiums and managing the policy should they decide to keep it in the hopes of selling it in the future. What if the insured lives longer than projected? Does the policy owner have the liquidity available to maintain the policy? Most buyers are looking at policy type, age and health of the insured, and premium requirements to make a determination of offer. Each life settlement buyer is a fiduciary to multiple investors, each with their own unique set of purchase parameters. Based on policy details and insured health status, we will reach out to our extensive network of institutional buyer relationships for offers. If you have an unneeded/unwanted policy, are ages 60s to 90s, and have had a decline in health since your policy was issued, you could qualify for a life settlement solution. Younger insureds with significant health issues can also qualify. The overall value depends on several factors: policy type, premium amount, cash surrender value, insured’s health, and buyer’s purchase parameters. Most policy owners only know what the death benefit is in the event of the insured’s passing. Beyond that, some policies accumulate cash value – the amount the policy owner would receive if the policy were surrendered (less any carrier/outstanding fees). In the life settlement transaction, there are two values: the offer that is received without a policy auction and the fair market value (highest value) – achieved only through a true policy auction. Find out if your policy could have value. Can we help you? DM me or click on the Book an appointment link, and we can talk about it. #planningnetworkpartners #estateplanning #wealthmanagement #legacyplanning #estateplanning #insurancepremiums #insurance #assets #lifesettlements

Like Real Estate Or Fine Art, A Life Insurance Policy Is An Asset Did you know that 88% of life insurance policies never pay a death claim? One of the reasons is because many policies are allowed to lapse. Another reason: many people aren’t aware that the policy is actually an asset that they can sell. In fact, life insurance policy lapses are expected to increase in 2024, as economic downtimes historically have seen. With ever-rising premium costs, it’s plausible that an increase in lapses will be the outcome. And that’s really too bad. More than 9 million policies lapse each year, and only about 3,000 life settlement transactions occur. How many more of those lapsed policies could have qualified for a life settlement — a buyout of existing life insurance for an amount greater than the cash surrender value and less than the death benefit. Like real estate or fine art, a life insurance policy is an asset. Before making a recommendation or a decision about any asset, it's important to first know its value. Your right to sell insurance policy as an asset is guaranteed and regulated in all 50 states. From paying for long-term care and retirement planning to increased assets, your financial health may benefit from exchanging unwanted/unneeded/affordable life insurance policies for cash – recouping past premiums paid and eliminating future premium burdens. It’s important that you work with an insurance professional who represents your interests, and not the buyer’s. We work with licensed fiduciaries who are experts in the field. Besides requiring an expert in insurance valuation and sale, you’ll want to coordinate this with your other financial experts. Insurance Planning, Tax Planning, Retirement Planning, Wealth Management, Charitable Planning, etc., are all potential requirements for managing this well. Can we help you? DM me or click on the Book an appointment link, and we can talk about it. #planningnetworkpartners #estateplanning #wealthmanagement #legacyplanning #estateplanning #insurancepremiums #insurance #assets #lifesettlements 

Avoiding Estate Planning Mistakes Is dying part of your plan? Did you know that most people don’t have an estate plan, which, in my view, is like saying you don’t plan on dying. Seems kind of inevitable, doesn’t it? In a LawDepot.com survey, “73% of respondents do not have a documented estate plan. The majority of respondents started their estate plan between the ages of 55 and 64.” And in my experience, a great many people – of all income levels – do not have an effective estate plan. Avoiding estate planning for fear of the unknowns (who do I choose to execute my will? To which of my heirs do I give X, Y or Z?) can result in worse outcomes for your legacy. Also not to be taken lightly, are the common mistakes made when doing an estate plan. Did you know that joint tenancy can actually disinherit an intended beneficiary? When was the last time you had your estate plan documents reviewed and updated? If it’s been more than three years, that may be a big mistake. Making “I love you” decisions can also lead to mistakes. An “I love you will,” which leaves all your assets to a surviving spouse can create complexities and problems, as can outright gifting property to your children. While I encourage everyone to have an effective estate plan, I also want you to be aware of the most common mistakes. Read more about the ten most common estate planning mistakes you want to avoid here, https://lnkd.in/gJTUixDN. Can we help you? DM me or click on the Book an appointment link, and we can talk about it. #planningnetworkpartners #estateplanning #wealthmanagement #legacyplanning

Why You Should Audit Your Insurance Policies If you’re a planner who leaves no stone unturned, no detail unexamined, and nothing left to chance, then you’ve probably planned for your retirement and your legacy. You even started 20 years ago when you purchased a Life Insurance policy. As satisfying as it is to put everything in order, there’s always something that changes, making planning a process that has no end. When, in fact, was the last time you looked at that policy? If it’s been awhile, then I’m going to suggest we turn that stone over again. Are there new insurance products that would serve you better? Would market volatility impact the benefits right as you plan to cash it in or you meet the end of life? Has your health improved and you now qualify for a better policy? There are a myriad of reasons why you want to re-evaluate your policies and your entire retirement plan as time progresses. Read my LinkedIn article here, https://lnkd.in/gQJKKHxN,  to learn more. Can we help you? DM me or click on the Book an appointment link, and we can talk about it. #lifeinsurance #planningnetworkpartners #wealthmanagement #legacy

Can You Own Real Estate Without Owning Real Estate? Seems like an obvious answer – but you might be wrong. You can be part owner in a piece of real estate without having your name on the property title. Real estate ownership can, in fact, be very lucrative. From commercial buildings to the rental market, if an investor is willing and able to ride out the highs and lows – just as in the stock market – then the potential for gains is significant. But ask any real estate investor and they may also tell you it’s a tiresome business with trash, tenants, taxes and toilets that can drive even a dedicated investor out of their holdings. Leaving real estate is an opportunity, however, when you take advantage of the various mechanisms that allow property owners to divest their own real estate holdings while still capitalizing on real estate investments. Can we help you? DM me or click on the Book an appointment link, and we can talk about it. #realestate #planningnetworkpartners #wealthmanagement #delawarestatutorytrust #qualifiedopportunityzone #incomestreams #retirement

Navigating The Storm: Tax Minimization Saving money and earning more through investments are two tried and true ways to increase your wealth. But the method I find to be most impactful for high net worth clients is in not losing more than you need to with the IRS. Tax minimization is key to our work, and what’s more, it’s wrapped into our other financial services and not an additional billable line item. You might be surprised to learn that the majority of even the largest of financial services firms don’t operate that way. Most refer out tax planning to an outside organization, and you’ll be charged for it as a separate service. We believe tax planning is such a crucial part of all of your financial well being that it’s integral to our wealth management, estate planning, real estate, and charitable planning work. Some of the key tools for tax planning include powerful ways to keep more of what you earned, through multi-strategy coordination: Private Placement Life Insurance* Invest in traditional and alternative assets inside of a private insurance vehicle while deferring – and in some cases, eliminating – the tax liabilities those assets create as they appreciate in value. Tax Loss Harvesting Sell and repurchase similar stocks within your portfolio in a strategic way that leverages losses to offset future capital gains. IRAs & Beneficiaries Protect assets held in your Qualified Accounts from future claims by your beneficiaries’ creditors by creating a trust to inherit your IRAs when you pass. Opportunity Zones Roll your capital gains into investment projects in specially-designated areas and defer or eliminate your capital gains tax by holding the investments for a specified period. Defined Benefit Plans Set aside large amounts of tax-deferred money for retirement while providing benefits for your employees without the limitations of standard 401(k)s, SEPs, and SIMPLE plans. Charitable Planning As a tax minimization strategy, Charitable Planning is a win-win. By gifting your liquid and illiquid assets to a charity of choice, it’s possible to reduce your tax burden significantly. For the charitably minded, this can result in giving more to charity than you thought possible. Other Tax Services Additional tax services include 1031 exchanges, 706 Portability, Cost segregation, Captive Insurance, and Options strategies. These tax deferral tools are complicated and require significant expertise to realize the benefits and avoid the pitfalls. Can we help you? DM me or click on the Book an appointment link, and we can talk about it. #planningnetworkpartners #taxplanning #taxes #wealthmanagement #riskmanagement #investments #taxminimization

Tired of Piecing It All Together? I typically don’t like to draw comparisons about how I and my team work relative to other Advisors. It just doesn’t sit right with me. But there is something fundamental to our model that I don’t think is as common. Our holistic approach, in fact, isn’t even practiced by some of the biggest financial firms, the most boutique firms, or even by the “virtual” family offices. The Problem with Big Firms The primary focus of large investment firms is generating fees. Proactive service doesn’t come into play for clients under $25M in investable assets, and essentials like estate and tax planning aren’t offered in house, meaning you’re left to piece together those solutions on your own. The Problem with Boutique Firms Smaller firms may provide better service, but they still lack in-house expertise in most financial arenas outside of managing investments. Their asset base typically isn’t sufficient to sustain the 7-figure payroll required to employ tax planners, estate attorneys, and real estate professionals. The Problem with Virtual Family Offices The concept of a virtual family office has become increasingly popular in recent years, there is too often a lack of cohesiveness and steep billing by each tax, legal, and investment expert generally leads to disappointing results. Why we’re different We’ve built a team of top-level, salaried professionals to give our clients unbilled access to expertise in every area of wealth management. And I do think that’s a significant difference, and one I’m quite happy to talk about. Can we help you? DM me or click on the Book an appointment link, and we can talk about it. #planningnetworkpartners #taxplanning #happyclients #wealthmanagement #investments #taxminimization #familyoffice #charitableswap #charity #charitableplanning

Business Continuity I’ve talked lately about planning ahead for having sufficient liquidity for some of life’s biggest events. Death and taxes, it’s been said, are the two most certain things in life. And they can be expensive. Both look different in impact at different stages of your life. We typically create estate plans at a time in our life when we’re seeing death as something more likely, and life as something less certain. What we less commonly do is look at our estate plan after a couple more turns of the road have changed our circumstances, increased our assets, revealed some health concerns, created more family members whose future you hold dear. The business owner who set aside money for a buy-out from a partner may not have considered their business’ worth has outpaced the money reserved. As we enter fall, it’s a good reminder that everything changes, and life has seasons. If your estate plan is more than three years old, I strongly encourage you to have it reviewed again. Can we help you? DM me or click on the Book an appointment link, and we can talk about it. #planningnetworkpartners #taxplanning #happyclients #wealthmanagement #investments #taxminimization #familyoffice #charitableswap #charity #charitableplanning