Financial Planning

INCOME TAX PLANNING

Income taxes impact everything about you financially, and it is for this reason that it is necessary to mitigate the impact that taxes have on your income, investment returns, and how you gift to loved ones.  Income tax planning is interwoven in our financial planning process because careless tax planning will impede how you reach your goals.  

In reviewing your income taxes, we verify your compensation, current tax bracket, if itemizing or applying the standard deduction makes more sense, and if you are in an Alternative Minimum Tax (AMT) situation just to name a few areas of your return we assess.  From there we will have a better understanding of your liabilities, how to manage your investments, and improve how you manage future tax liabilities. 

It is for these reasons mentioned above that sound tax planning is the foundation for a well-crafted plan, and this is why we emphasize it in our planning process.  

CASH FLOW ANALYSIS

Integral to attaining your financial goals and being able to enjoy your investments is to review your cash flow and the lifestyle you are accustomed.  Our advisors review this by analyzing how much you spend versus how much you earn.  This simple analysis should have a profound impact on how you assess your financial condition.      

INVESTMENT PLANNING

How well you invest will dictate the resources you have available to meet your objectives and goals.  This is why it is imperative that our advisors know your goals as we craft your plan because these will influence how we invest your portfolio.  

It is through our investment analysis process that we will determine if your existing portfolio is suitable for you.  In analyzing your investments, we review all of your accounts to summarize your allocation between equities (stocks), fixed-income (bonds) and cash.  These include your personal and work retirement accounts, taxable investment accounts and cash reserves in savings and CDs.  Next, we review your specific investments to verify the quality of the investments as well as how much risk is associated with the underlying investments.  Ultimately, our investment decisions and recommendations will help build you a portfolio that:

•    Generates enough income you can live off of in retirement

•    Offers growth potential so that it appreciates 

•    Reduces concentration risk through diversification

•    Allows you to sleep at night

Our investment planning process makes it possible to choose the most suitable investments for you.  Unlike many of our competitors, we do not offer a cookie-cutter investment proposal with our financial plans, but rather a customized portfolio that is designed to meet your specific goals and objectives.  

INSURANCE PLANNING

As much as financial planning is goal-oriented to help you pursue your passions, it is also proactive in helping manage your risks.  Our advisors understand that in investing and in life, it is always important to protect your downside and reduce risk. Or at a minimum “check the box” to be sure you understand the risks out there. Careful insurance planning may help replace income, reduce debt, protect your assets, and mitigate the impact of taxes on your estate.  As part of the financial planning process our advisors will objectively address your insurance needs in the following areas:

•    Life Insurance

•    Long-term care 

•    Business insurance

•    Disability

It is never pleasant thinking about ‘what-if’ scenarios, but insurance planning is necessary so that you and your family are protected from the unexpected. 

RETIREMENT INCOME PLANNING

This area of financial planning is necessary for individuals nearing retirement as well as those currently in retirement. Specifically, this portion of the plan differentiates anticipated income for professionals versus current income sources for retirees.  These income sources include:

•    Social security

•    Defined Benefit or Pension

•    Non-retirement accounts

•    Company retirement accounts (TSP, 401(k), 457, 403(b), etc.) 

•    Individual Retirement Accounts (Roth IRA or Traditional IRA)

To determine how much income is necessary we review your cash flow and project this based on your living expenses.  We then assess your resources and find out if you have sufficient resources and propose a way to invest these assets so that you not only have sufficient income but the potential for account growth as well to outpace inflation.

Our team of advisors will work with you through retirement so that you can have assurance you are properly managing your resources. As your trusted advisors in retirement, we will continuously monitor your portfolio to keep these projections current.      

ESTATE PLANNING

Not addressing your estate is a costly endeavor and may cause significant frustration to your loved ones. This oversight usually goes against one’s plans for taking care of loved ones, and it is why discussing and implementing an estate plan is necessary for accompanying a financial plan. Implementing an estate plan will help reinforce your legacy and ensure your assets pass to loved ones.  

Furthermore, outside of Wills, we review how your investment accounts are titled and verify if the beneficiary designations are current.  For example, you may have an old 401k from before you were married and it doesn’t have your spouse as a beneficiary. Proper estate planning will ensure oversights such as this are reviewed and remedied.  

As part of our Signature Services, Plotkin Financial Advisors, LLC will pay for the legal costs to have your estate plan prepared.  If you are interested in learning more of this program, please feel free to contact one of our advisors.