Kai-Zen Retirement Strategy: What Is It and How Does It Work?

If you are a high-income earner looking for a way to amplify your savings without major tax ramifications, consider exploring the possibility of a Kai-Zen Retirement plan as a supplement to your other, more traditional retirement plans. 

Wealth Planning for Business Owners

According to the U.S. Small Business Administration Office of Advocacy, there are over 33 million small businesses throughout the country. Furthermore, 8 out of 10 of these small businesses have no employees (besides the business owner). This means millions of self-employed small business owners throughout the country must plan and manage their business finances. Many business owners work with a financial manager or advisor to plan and manage their finances. However, there are a few principles of wealth planning for small business owners that you can begin to implement yourself even before consulting with a qualified professional. 

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If you are approaching your 50s or are already in it and aren’t sure what your financial goals or plans are, this article will provide some common goals that you should include in your financial plans, as well as some examples of how to address certain financial situations in your 50s, such as sending your kids to college. 

Personal Financial Plans for 50: Examples

What’s The Difference Between Pensions and Retirement?

Pensions are on their way out. Traditional pension plans, also known as defined benefit plans, have become far less common in the private sector. Instead, many employers have shifted to defined contribution plans such as 401(k)s, where the employees contribute to their retirement account, often with employer-matching contributions. According to data from the Bureau of Labor Statistics, only 15% of private industry workers had access to defined benefit pension plans in 2022, compared to 69% of workers having access to defined contribution plans.

10 Questions To Ask a Financial Advisor at 60

As you reach 60 and strategize for your financial future, it becomes crucial to pose relevant and significant questions to your financial advisor. This will help you make well-informed decisions and navigate your financial journey effectively. 

Personal Financial Plans for 40: Examples

This article will examine personal financial strategies for people in their 40s and give examples of how you can create an effective financial plan for your 40s and beyond. 

10 Questions To Ask a Financial Advisor at 30

As the millennial generation rounds the bend to age 30 and beyond, more and more people are dipping their toes into the world of personal finance for the first time. They have an excellent reason to do so, as this stage of life often presents numerous financial decisions that can shape long-term wealth accumulation and economic security for decades to come.

What Does a Financial Advisor Do?

Most of the consumers polled are concerned about saving for retirement, credit card debt, and medical debt. A financial advisor may be worth the investment if you are concerned about debt, housing costs, or retirement savings.

How Much Money Should You Have Saved For Retirement?

By considering factors like desired lifestyle, healthcare costs, and anticipated lifespan, you can improve your chances of achieving a financially secure future. Start saving and planning early to increase your readiness for retirement.

Personal Financial Plans for 60: Examples

For those who are approaching their 60s or are in their 60s and looking at retirement, they need to have a strong financial plan to ensure that they and their loved ones are looked after. In this article, we will discuss some common financial goals for people in their 60s and look at some examples of how you can create a personal financial plan in your 60s. 

How To Choose a Financial Advisor

The current cost of living is a concern for most Americans. As such, having a plan in place for your future is important. With as many as 88% of Americans currently struggling to save any money at all, a financial advisor can help you put a budget and plan in place, depending on your concerns. A professional advisor may be a great resource if you need to pay off credit card or medical debt or figure out how to budget for student loan payments.

10 Questions To Ask a Financial Advisor at 40

This guide outlines ten critical questions to ask a financial advisor when you're in your 40s. By asking these questions and engaging in thoughtful discussions with a trusted financial advisor, you can gain clarity, make informed decisions, and set yourself on a path toward achieving your financial goals.

7 Steps of Effective Financial Planning

A financial plan evaluates a person’s current financial situation and future goals and includes an inventory of all assets and liabilities. Many people feel comfortable identifying their financial goals and implementing these objectives themselves. However, some people prefer making these decisions under the guidance of a financial advisor. 

Personal Financial Plans for 30: Examples

In this article, we’ll discuss financial plans for people in their 30s and give some great tips and examples of how you can build long-term financial wealth and a retirement fund that won’t retire on you. 

Choosing a Retirement Plan | Your Options

Contributing to a retirement fund is the most important step in ensuring you and your family are provided for when you retire. Your plan choice will affect when and how much you can withdraw from your retirement savings. However, many people need help choosing the right retirement plan and how much to contribute. With the help of a financial advisor, you can start planning for retirement today by selecting the right type of retirement plan for you.

10 Questions To Ask a Financial Advisor at  50

As individuals reach age 50, they will likely emphasize their careers more than retirement. Reflecting on this next phase of your life is essential before it sneaks up on you. Most people seeking financial advice do so after a significant life change. This includes marriage or divorce, receiving an inheritance or other large sums of money, or reaching retirement age.

How Much Does a Financial Advisor Cost?

The 2023 cost of living worries most Americans, especially those struggling to make housing payments, manage debt, and pay for other necessities. Therefore, a financial advisor may not make the list of must-haves. However, there are a few reasons why it might be a worthwhile investment.

6 Signs You Need a Financial Advisor

When it comes to managing personal finances, many people reach a point where seeking the assistance of a financial advisor becomes crucial. There are several signs that indicate when professional guidance is essential, and these signs become even more significant considering the state of retirement and wealth management in the United States. 

There are many titles for financial professionals, so it's challenging to track what each one means. A financial advisor is probably the term you've heard most often. Financial advisor is a broad term for a professional who helps individuals or companies manage their finances, including investment choices. There are over 100 certifications&nbsp;that financial advisors can obtain. <ul><li>Financial planners, wealth managers, and investment advisors are all financial advisors with different focus areas.</li><li>A financial planner helps an individual or a company make a plan to achieve long-term financial goals.</li><li>A wealth manager helps individuals maintain their wealth through various disciplines and services, such as taxes, estate planning, and investment advice.</li><li>An investment advisor offers investment advice and recommendations to individuals or organizations. </li></ul>There’s a misconception that you have to be extremely wealthy to use a financial advisor. In reality, they can be beneficial for people from any income level. Keep reading to find answers to the most commonly asked questions about financial advisors, so you know which type can fit your specific needs.

The SECURE Act 2.0 has revised rules that affect contributions and distributions for Roth accounts in Davis. For instance, Roth 401(k) and 403(b) employer retirement plan holders no longer have a minimum distribution amount. Additionally, people with 529 education savings plans can now roll their funds over to a Roth IRA starting in 2024, which can help boost their retirement savings.

In Davis, some fees are deemed eligible for a 529 college savings plan. Tuition and other fees, books and materials, peripheral equipment, board lodging (if the student attends school more than half-time), and special needs expenditures related to attendance or enrollment are all included. Foreign schools are likewise deductible as long as the institution is included on the U.S. Education Department's list.

REITs can help Davis investors boost their asset allocation and diversify their investments because its&nbsp;shares do not necessarily track the fluctuations of bonds and stocks. In addition, equity REITs have maintained higher dividend yields than stocks and 10-year treasury notes over the past decade. However, just like any other investment, there are risks involved in REITs. Consult a financial advisor before putting your funds into REITs.

If they are risk averse, Davis residents can invest in money market funds or municipal bonds. Commercial paper and certificates of deposit, which give a set return rate, are examples of money market funds. Investors can utilize these&nbsp;to settle brokerage transactions or as a cash alternative. Municipal bonds, on the other hand, provide federal tax-free income as well as state tax-free income if issued in the investor's home state.

Even if your child is only a few years away from college, opening a 529 plan in Davis can help you save for it. You have the opportunity to save for your kid's education for a few more years by starting a 529 account and making monthly contributions until their junior year of college. Any earnings from that plan can be utilized for college-related expenses tax-free.

Whether or not a financial advisor is worth it depends on your personal situation. If your finances are fairly straightforward, then you may be better off handling it on your own. But if you have substantial assets or a complex investment portfolio, then hiring someone to handle it for you can be well worth the cost.

Financial advisors can have many types of specialties. Generally, a financial advisor advises on or helps to execute a financial plan. Some examples include assisting people with getting out of debt, building out an investment portfolio, and handling taxes.

There’s no specific income level you need in order to work with a financial advisor, but there may be a minimum investment amount for certain types of services. Some financial advisors won’t manage your money unless you have $100,000 or more to invest, but this isn’t the case with financial coaches or robo-advisors.

Financial coaches focus on improving your financial literacy and money management skills. For example, they can help you figure out how to pay down your student loans or decide how much money to put away for retirement. They usually charge by the hour and don’t offer asset management services or investment advice.

Smart money management can give you freedom and comfort. Being responsible with your money makes it possible to meet goals and pay for major expenses. A financial advisor is trained and can offer you expertise that would otherwise take years to learn. They know how to save you money and make it go further.

Because financial advisors aren’t licensed or regulated, it’s up to the client to make that determination for themselves. However, if your advisor is a fiduciary, that means they’re legally bound to act in your best interest. Some types of advisors, including Certified Financial Professionals (CFPs), are held to fiduciary standards.

The term financial advisor is a broad phrase that encapsulates many specialties, including financial planner. It's similar to how doctor applies to different physicians, while a cardiologist is a specialty doctor. A financial planner helps their client plan to achieve long-term financial goals, such as saving for a house or retirement.

A financial consultant and a financial advisor are essentially the same. In recent years, financial consultant has become a less popular term, with financial advisor being much more common. Sometimes, the financial professional may opt for the term consultant when offering services to a business rather than an individual.

Until 2018, financial advisor fees were tax deductible as a miscellaneous expense. However, the Tax Cuts and Jobs Act elimited that deduction until at least 2025.

A robo-advisor is essentially an algorithm that manages your investment portfolio for you. Because their services are automated, you’ll pay less than you would for a human advisor — often between 0.25% and 0.50%. They don’t require large initial investments either, making them a popular choice for entry-level investors. However, you won’t get the same level of advice that you would get from a personal financial advisor.

Fiduciary is a legal term for a person who has a legal or ethical responsibility to act in your best interests. For example, a trustee and a beneficiary. A financial advisor may have a fiduciary obligation to make financial choices that are best for you, even if it means they earn less in commissions or fees.

It’s important to understand that only some — not all — financial advisors have a fiduciary obligation to their clients. Always ask your financial advisor if they’re bound by fiduciary duty. If not, it’s possible that they’ll push products or services that earn them the highest commission, not necessarily what’s best for you. Opt for a financial advisor bound by fiduciary duty whenever possible.

After your initial meeting, you may only need to check in with your financial advisor on a quarterly or annual basis. Ask them in advance how often you can expect to hear from them, and whether they offer in-person, phone, or virtual meetings.

Financial advisors aren’t necessarily accountants or tax preparers, so don’t expect them to prepare your taxes for you. However, they may be able to provide tax-related advice to help you optimize your returns and deductions. If you need an advisor who can file your taxes, look for one who is also a CPA (Certified Public Accountant).

Ask yourself if a financial advisor can fill a need or solve a problem you can’t easily handle on your own. They can be helpful in a wide variety of ways, such as building budgets or financial plans, finding ways to save money on taxes, creating an investment portfolio, or offering investment advice.

Clients pay to work with a financial advisor whether it’s through fees, commissions, or salaries. If they’re paid by client fees or commissions, their salary is tied to how much business they bring in. The harder they work, the more they make. In comparison, a salaried employee is guaranteed their wage no matter how many clients they have.

&nbsp;If you have specific goals or a unique financial situation, look for a financial advisor with expertise in that area. For example, some financial advisors specialize in working with millennials or focus on socially responsible investing.

While not always necessary, a financial advisor could help you decide how large of a mortgage to apply for, how much money to put down, and how to balance the purchase with other savings and investment goals.

A financial advisor’s costs depend on their fee structure. Some advisors charge a fee — either hourly or a percentage of the client assets under management. Another common option is to charge a commission on the products sold or investments made.

According to the U.S. Bureau of Labor Statistics, it’s estimated that there are&nbsp;218,050 financial advisors. California is the state with the highest employment of financial advisors across the nation.

Yes, many banks have financial advisors on staff. Your bank may also offer incentives to work with their financial advisors, such as lower fees or free accounts. However, it's important to note that many of the bank's financial advisors don't have a fiduciary obligation and might prioritize the bank's products above all else. There is a cost when working with your bank's financial advisor.

A wealth manager can help offer complex financial planning services, including tax guidance, estate planning, and legal assistance. While you don't have to be a high-income earner to benefit from a financial advisor, a wealth manager is typically for those that have a high net worth. However, many people build wealth and need a wealth manager later on in life.

Wealth management is typically worth it for those who need help with multiple endeavors or comprehensive financial situations, such as charitable contributions or investment portfolio management, or want to protect their assets. A wealth manager can also offer you guidance if you’ve been neglecting your finances or making poor judgements.

Your relationship with your financial advisor is a very personal one, as you’re trusting them with your wealth and future. Some general signs that your financial advisor is bad include: <ul><li>They can’t answer your financial questions </li><li>You have worked with them for a while but haven’t seen a financial improvement</li><li>They don’t provide you with progress reports</li><li>They don’t check in with you</li></ul>

As mentioned, there are over 100 types of certifications for financial advisors. The training or experience you need will depend on which specialty you want to pursue. Generally, financial advisors need to have: <ul><li>A Bachelor’s degree</li><li>A General Securities Representative license (Series 7 license)</li><li>A Certified Financial Planner (CFP) certification isn’t mandatory but is often preferred </li></ul>

Where a financial advisor works will depend on what type of financial advisor they are. Financial advisors can work at a variety of places, including: <ul><li>Securities and commodity brokers</li><li>A bank</li><li>A credit union</li><li>Independently</li><li>Insurance companies</li><li>Financial investment firms</li><li>Small investment advisory firms</li></ul>

In 2019, the national average salary for a financial advisor was $87,850. However, it’s important to note the average salary varies from state to state and the different focus areas — an investment advisor may make a lot more than a financial planner.&nbsp;Lastly, salary can depend on how the individual is getting paid. Financial advisors can be paid by client fees, commissions, or salaries.

Davis, CA

Investment Adviser Public Disclosure Database, SEC