Independence Wealth

When to sell and who to sell to are significant decisions for most business owners. Transferring ownership of a closely held business may affect many people, including family members, employees, suppliers and the local community. The exit planning process should continuously clarify the stakeholders’ goals, desires and intentions.

Different exit pathways should be evaluated to determine how to monetize business interests. The size of the transaction may warrant coordinating the exit plan with the owner’s estate plan. The advisory team will most likely include a business planning or transaction attorney, a CPA and a CFP®.

The objectives and timeframe influence implementation of the plan. Many exit plans can span years if value enhancement strategies need to be applied. The planning process should be fun and energizing while providing you with peace of mind.

Council Post: Business Owners: Why You Should Have An Exit Plan What is an exit plan, and why will having one usually increase your net worth when it’s time for your exit payday?

About half of business owners want to transfer their business to a child but only 30% do so. Families are not without their conflicts, especially in family businesses. By having annual family meetings to discuss the possible succession plans for the company, you will be more prepared for an exit.

Managing a Family Owned Business involves navigating business decisions as well as family relationships. Without a detailed succession plan, you are setting your daughter up to fail in a business that has not maximized its value prior to transition. Without having tough conversations about the future of their business, family business owners will fail to have a succession plan in place.

33% of those surveyed received their business from family and 6% purchased the business from their family. Even if the child can afford to purchase the business outright, are they qualified to run the business? 95% of children who inherit a family business after both their parents pass will choose to leave the advisor who worked with their parents.

Family Matters: Does Your Child Want to Take Over the Family Business? Your business is likely your largest financial asset, and as such, the success and potential sale of your business impacts each member of your immediate family.

Spoiler: There is no "best age" to retire. However, there may be an ideal time for you. Check out our recent blog post on determining your ideal retirement age.

What is the Best Age to Retire? - Financial Advisor South Jersey - Independence Wealth Fiduciary Financial Planner helping business owners, corporate executives, and retirees acheive financial independence. Personal financial planning for the South Jersey and Greater Philadelphia Area.

Tax Loss Harvesting and Why it Helps

What is tax loss harvesting?
Tax loss harvesting is a process where you sell securities in a non-retirement account in order to realize (harvest) the loss for tax purposes. This allows you to deduct $3,000 per year in capital losses, it also allows you to offset any realized gains against the losses. Lastly, you can carry forward the losses into the future to offset future gains.

Why is it more important today?
2022 has been a rough year for investors. A lot of people feel like they “need to do something” when the markets are down. Going through your portfolio and realizing losses might just be that thing to do.

Who should pay attention to TLH?
If you have a taxable brokerage account, especially if you have legacy positions that have large amounts of gains.

Who should ignore this?
Anyone who has the lion share of their assets in qualified retirement plans and IRAs shouldn’t concern themselves with tax loss harvesting because you cannot realize gains or losses in retirement accounts. You should however consider Roth conversions during a market downturn if appropriate.

If you have questions feel free to reach out!

If you are eager to secure the 9.62% annual interest for Series I bonds the deadline is Friday, October 28th. The rate is expected to drop to 6.48%. A few quick facts about I Bonds:

--> I Bond rates change twice yearly based on inflation

--> Your money is locked up for 12 months and you cannot take it out for any reason

--> Each individual may purchase up to $10,000 worth of series I bonds in a year (plus up to $5,000 if you are owed a tax refund)

If you have any questions feel free to reach out.

When the stock market is down, it feels awful. You may be looking at the market down 20% asking yourself, “what do I do now?”

Feel free to check out my latest blog on the current market.

http://ow.ly/c14b50JzpIZ

How to Weather Bear Markets - Financial Advisor South Jersey - Independence Wealth Fiduciary Financial Planner helping business owners, corporate executives, and retirees acheive financial independence. Personal financial planning for the South Jersey and Greater Philadelphia Area.

The average annual cost for an American Family has increased by $5,200 per year.

When the markets look scary, perspective is extremely important. If you find yourself concerned with how the markets might impact your financial future feel free to reach out. I am happy to chat!
https://calendly.com/independencewealth

Independence Wealth updated their info in the about section.

Financial Advisors Who Charge an Asset-Based Fee Many financial advisors charge an asset-based fee such as 1% of your assets managed. Is an asset-based fee financial advisor right for you?

Never forget

Surprising Ways Gen X and Boomers Are Worlds Apart Financially

http://ow.ly/Bv3i50DKe7h

Surprising Ways Gen X and Boomers Are Worlds Apart Financially While older Americans proved especially vulnerable to the coronavirus' worst ravages, no age group was immune from the pandemic's economic fallout. All demographics were forced to change their money...

College Financial Grades 2021: Will Your Alma Mater Survive Covid?

http://ow.ly/Y2tf50DKdY1

College Financial Grades 2021: Will Your Alma Mater Survive Covid? Before Covid-19, scores of the nation’s private colleges were already facing a financial health pandemic. Things have gotten worse—and here’s a report card.

The Covid-19 pandemic seems to have surged prices in vacation towns across the country.

Rehoboth Is Known as a Summer Hotspot. Retirees Are Making It a Permanent Destination.

http://ow.ly/gMVH50DKdUU

Rehoboth Is Known as a Summer Hotspot. Retirees Are Making It a Permanent Destination. The Delaware town’s real-estate market saw a surge in homes sold for $1 million and up between July and November 2020.

What Are the Income Tax Brackets for 2021 vs. 2020?

https://www.kiplinger.com/taxes/tax-brackets/602222/what-are-the-income-tax-brackets-for-2021-vs-2020

What Are the Income Tax Brackets for 2021 vs. 2020? | Kiplinger For both 2020 and 2021, you can end up in one of seven different federal income tax brackets – each with its own marginal tax rate – depending on your taxable income.

3 surprising pitfalls of working during retirement

http://ow.ly/UZDs50DKdEp

3 surprising pitfalls of working during retirement Working during your senior years could actually come back to bite you if you aren't prepared. Here are three pitfalls to bear in mind.

Around 25% of people find an error on at least one of their credit reports. It's always a good idea to take advantage of your annual free credit reports from the major credit bureau.

http://ow.ly/EcH550DKduh

More Consumers Complain About Errors on Their Credit Reports Complaints doubled last year, federal data shows. Some problems may be related to pauses in mortgage and student loan payments in the pandemic.

The estimated number of global crypto users has passed 100 million - and boomers are now getting drawn to bitcoin too. Will bitcoin ever be a useful form of currency?

http://ow.ly/Hqpf50DKdgB

The estimated number of global crypto users has passed 100 million - and boomers are now getting drawn to bitcoin too, reports find The number of crypto users jumped around 16% in January alone, according to a report, with investors drawn in by the bitcoin price rise.

Should 401(k) Withdrawals Be Easier?

http://ow.ly/x1Cu50DKd8L

Should 401(k) Withdrawals Be Easier? The conventional wisdom is that people should pay a high price for touching their nest egg. But some argue the conventional wisdom is wrong. Our two experts square off.

The smallest business owners are excited and confused by PPP rules as priority window opens. Feel free to reach out with questions pertaining to COVID relief for your small business.

http://ow.ly/fAOT50DKd47

The smallest business owners are excited and confused by PPP rules as priority window opens The mismatched timing of a priority period for the smallest businesses to apply for PPP loans as well as new rules have led to both excitement and confusion.

Dow Plunges 550 Points As Meme Stocks Soar And Yield Concerns Mount

http://ow.ly/lHbp50DKe51

Dow Plunges 550 Points As Meme Stocks Soar And Yield Concerns Mount Technology stocks were the Thursday selloff's biggest casualties.

Thinking of retiring early? Here is what you should know about retiring early.

http://ow.ly/XnXb50DKcPQ

Thinking of retiring early? Here is what you should know about retiring early. | Financial Advisor South Jersey - Independence Wealth Fiduciary Financial Planner helping business owners, corporate executives, and retirees acheive financial independence. Personal financial planning for the South Jersey and Greater Philadelphia Area.

Happy Thanksgiving!🦃

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