5 Ideas on How to Reduce Your Taxable Income

          We work hard to earn the best income possible to support our families and retirement; however, the more we make, the more we pay in taxes which may be counter-productive to the hard work put forth to earn more.  As a result, many Americans are actively consulting with Certified Financial Planners for methods to reduce their taxable income.  We’ve compiled 5 of the most common methods to reduce your taxable income.

1.       Contribute to Retirement:

o   As previously mentioned, planning for retirement is one of the top motivating factors of working hard for a greater income.  There are several types of retirement accounts and each has different rules.  A 401(k), 403(b), 457 or Thrift Savings Plan have a 2015 contribution maximum of $18,000 with a catch-up contribution allowance of $6,000 for anyone who turns 50 in 2015. All of the aforementioned Retirement Accounts require establishment and funding by 12/31/2015.

o   The Self-Employment Pension has a different set of rules.  The maximum contribution for 2015 is $53,000 and the deadline for funding the account is 04/15/2016 plus any extensions you may have been approved for.  There is an additional formula to calculating your maximum contribution limit including items such as a percentage of your net profit.

o   Lastly of the Retirement Account types we will discuss are Traditional & Roth IRA accounts.  These accounts allow for funding of up to $5,500 for 2015 or $6,500 if you turn 50 during the 2015 tax year.  Funding of this account must be deposited by 04/15/2016 with no extension opportunity.

o   Please keep in mind some of these account have additional age and wage restrictions.

2.       HSA Contributions:

o   Contributions limits for a health savings account for tax year 2015 are as follows below.  Take note of the additional $1,000 contribution if you are age 55 or older.  The deadline to fund a health savings account for tax year 2015 will be April 15^th, 2016; the same as the tax deadline without extension.  It is also important to know that in order to open and fund a health savings account you must have a qualified high deductible health plan HSA policy with a minimum deductible of $1,300 single or $2,600 family and a maximum deductible of $6,450 single or $12,900 family.  The contribution limits and deductible minimums and maximums tend to skew upward a little each tax year.

3.       Donate to a charitable cause you are passionate about.

o   Charitable contributions, unlike HSA contributions, must be made by the end of the tax year you are writing the donation off for.  For donations you would like to reduce your income by for 2015, the donation must be made by 12/31/2015.  It is important to be familiar with the qualified organizations as per the IRS which can be reviewed in the link provided here.  Before deciding on the amount of your donation you will want to consult a tax professional or Certified Financial Planner to determine the maximum amount you are able to donate as qualified to reduce your taxable income based on the overall adjusted gross income you will report that year.  These guidelines can also be found here.

4.       Pay property tax early:

o    The years for which you deploy this strategy will be a matter to consider.  Ultimately, by use of this strategy there will be a year for which you are paying your property taxes twice.  If you have a property tax bill due in January and you itemize, paying it before December 31 will allow you to deduct the payment from your taxable income on your 2015 tax return. It is also important to consult your trusted financial planner with this strategy because prepaying your property taxes could trigger the AMT, or Alternative Minimum Tax.  There are multiple write-off that must be added back when calculating AMT liability. Again, consult your financial planner or tax professional to determine when this strategy may be a good option.

5.       Defer income:

o   This method may not be available to everyone, but for those who receive compensation such as a year-end bonus could ask that the additional income not be paid until after the first of the year.  This strategy may also work well for those who are self-employed.  Invoicing could be delayed until late in the month of December causing the receipt of payment to arrive after the first of the year.

             As you can see there are numerous ways to arrange your finances for a more favorable tax liability.  I’m sure you have also recognized the many times we’ve stressed the importance of consulting with a Certified Financial Planner.  This article is not meant to replace the need to speak with a professional who is well versed in the qualifications and restrictions available with each method.  You are encouraged to call A.W. Abel as a resource of information.  614-499-1201

Be sure to follow all of Abel Financial Strategies' social media channels and subscribe to our blog!

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Your complete source for personal financial planning.

A Certified Financial Planner ® in good standing that believes whole-heartedly in the Standards of the CFP ® program.

Securities offered through First Heartland Capital®, Inc. Member FINRA/SIPC   Advisory Services offered through First Heartland Consultants®, Inc.   (Abel Financial Strategies is not affiliated with First Heartland Capital®, Inc.)

Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes) and Barron's (S&P 2014 total return); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprices.org (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indices listed are unmanaged and are not available for direct investment. Securities offered through First Heartland Capital® , Inc. Member FINRA/SIP

4 Triggering Events of Business Succession & What to Plan for In Each

         We can all agree the worst time to make an important decision is on the spot.  Often times this is when the emotional brain takes over for the rational brain and the best possible decision may not have been considered.  Ideally a business succession plan is constructed when a partnership is formed, but we live in the real world and many businesses may not have realized this at that time.  Businesses often get busy trying to get profitable and never end up coming back to this.  Generally speaking, there are 4 situations to consider succession planning for, each of which may require a unique solution of their own.

Retirement: 

When do you plan to retire?  Do you plan to retire and no longer work or will you retire to move on to a new phase of your work life?  In either situation leaving the remaining business partner with adequate funding so that a rash decision doesn’t have to be made on the spot is the real purpose of a great succession plan.  Seeking and planning for proper retirement funding is critical to assuring cash flow will not be penetrated and the clients are not left with a surprise from the business they’ve come to appreciate and trust.

Death: 

In the event of a business owner’s death a few considerations must be examined and included in the overall business succession plan.  For example, will the partner’s  spouse now become part owner of your company?  Do you or they want that to happen?  Talk to your financial advisor to discuss the best method of funding a buy/sell agreement that would leave both the business and the spouse with adequate funding to perform the arrangement agreed upon.

Disability:

Death is certain and a triggering event most of us will first consider; however, there is a chance that you would suffer an injury or illness that makes it impossible for you to continue running your business prior to retirement.  This disability could be total or partial though in either event it is suggested to consider both situations as possible.  In the event of a partial disability will you still perform certain duties of your role in the business, who will take over the remaining responsibilities and how with that person’s time and compensation be funded?

Early Exit:

This final category is really a catch all for other less common reasons a business may need to enforce a buy/sell agreement.  Some of these triggering events may be divorce, personal insolvency or bankruptcy, criminal conviction, loss of professional license or termination of employment.

When creating your succession plan with your Certified Financial Planner it is important to consider if each triggering event will produce the same reaction.  Example, would divorce and death both provide the same benefits of the buy/sell protection?  One scenario may call for change of beneficiary whereas the later may call for estate tax mitigation.  Again, we can all agree that making a decision at the onset of one of these events may not be the most appropriate time.  Working with your Certified Financial Advisor could fairly make the list of your current short term goals with either a new succession plan or as a review of your current succession plan.

Be sure to follow all of Abel Financial Strategies' social media channels and subscribe to our blog!

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Visit AWAbelFinancial.com fore more information.

Your complete source for personal financial planning.

A Certified Financial Planner ® in good standing that believes whole-heartedly in the Standards of the CFP ® program.

Abel Financial Strategies are not attorneys or accountants. If a need is discovered, we will refer you to attorneys or accountants in your area to work with or work closely with your attorney or accountant to resolve the need.

Securities offered through First Heartland Capital®, Inc. Member FINRA/SIPC   Advisory Services offered through First Heartland Consultants®, Inc.   (Abel Financial Strategies is not affiliated with First Heartland Capital®, Inc.)

Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes) and Barron's (S&P 2014 total return); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprices.org (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indices listed are unmanaged and are not available for direct investment. Securities offered through First Heartland Capital® , Inc. Member FINRA/SIP

Ways To Boost Your Employees' Morale (WITHOUT Spending More Money!)

As a small business owner, you are probably aware of the importance of offering a basic employee benefit package that includes health and disability insurance and a retirement savings plan. However, recruiting and retaining top talent often requires going above and beyond the basics. By offering creative, low-cost benefit programs, you can differentiate your business from other potential employers.

Flexible Work Environments

In today's hectic world, time is nearly as valuable as money. Consider the following statistics from Families and Work Institute (Source: National Study of the Changing Workforce, 2008): 

• 59% of employees don't feel that they have enough time for themselves.
• 61% believe that they don't have enough time for their spouses/partners.
• 75% (more than 7 out of 10) feel that they don't have enough time for their children.

For these reasons, one of the most popular and most appreciated employee benefits available today is a flexible work environment. Once the hallmark of only small and "hip" technology companies, flexible work arrangements are now offered by larger, more established organizations. Some examples of flexible work programs include:

• Flex schedules: work hours that are outside of the norms, such as 7:00 AM to 4:00 PM instead of 8:00 AM to 5:00 PM.
• Condensed work weeks: for example, working four 10-hour days instead of five 8-hour days.
• Telecommuting: working from home or another remote location.
• Job-sharing: allowing two or more employees to "share" the same job, essentially doing the work of one full-time employee. For example, Jan works Monday through Wednesday noon, while Sam works Wednesday afternoon through Friday.

Allowing your employees to tailor their work schedules based on their individual needs demonstrates a great deal of respect and can generate an enormous amount of loyalty in return. Even if your business requires employees to be on-site during standard operating hours, having a process in place that supports occasional paid time off to attend outside obligations such as doctors' appointments or family commitments and even unexpected emergencies can have enormously positive effects, too. In some cases, these benefits have no costs associated with them, while in others, the costs may be minimal (e.g., the price of a smartphone or laptop to help employees remain productive on the go).

Free Food

Another popular perk at smaller companies is a well-stocked kitchen. Soft drinks, snacks, and inexpensive meal items such as cereal and bagels can go a long way towards fostering good will (and keeping energy up!). Providing healthy options, such as fruit, nuts, and smoothies, is a subtle way to show employees that you value their well-being.

Social Activities

Sponsoring periodic activities can help workers relax and get to know one another. Such events don't need to take much time out of the day, but can do wonders for building morale. Bring in lunch or schedule an office team trivia competition or group outing. Perhaps your employees would like to share their little-known skills through an art exhibition or talent show. If you work in a particular industry in which colleagues share a common passion, consider organizing events around that interest. For example, a sporting goods retailer could close up early on a slow-business afternoon and go for a hike or bike ride.

Concierge Services & Discounts

You may also be able to negotiate with other local companies for employee discounts and services. Laundry services, dry cleaning pickup/drop-off, and meal providers that can deliver hot, family-sized take-home dinners may help employees save moth time and worry - and stay focused on the job.

Financial Planning & Education

For many people, money worries can be distracting and time consuming. Consider inviting a local financial professional into your office to provide counseling sessions for your employees. While you don't necessarily have to pay for any services provided, simply offering the opportunity to get such help during work hours will be greatly appreciated by your workforce.

Survey Your Employees

The best benefits are those that meet the needs of your employees. Before making any assumptions, survey your employees to see what benefits they value the most. Then, respond to the most commonly identified concerns and desires with creative solutions. That can encourage employees to respond in kind through hard work and dedication.

Be sure to follow all of Abel Financial Strategies' social media channels and subscribe to our blog!

Facebook

Twitter

LinkedIn

YouTube

Visit AWAbelFinancial.com fore more information.

Your complete source for personal financial planning.

A Certified Financial Planner ® in good standing that believes whole-heartedly in the Standards of the CFP ® program.

Abel Financial Strategies are not attorneys or accountants. If a need is discovered, we will refer you to attorneys or accountants in your area to work with or work closely with your attorney or accountant to resolve the need.

Securities offered through First Heartland Capital®, Inc. Member FINRA/SIPC   Advisory Services offered through First Heartland Consultants®, Inc.   (Abel Financial Strategies is not affiliated with First Heartland Capital®, Inc.)

Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes) and Barron's (S&P 2014 total return); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprices.org (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indices listed are unmanaged and are not available for direct investment. Securities offered through First Heartland Capital® , Inc. Member FINRA/SIP

4 Tips For Traveling Abroad

For many people, there's nothing more exciting than traveling to a new country, experiencing different cultures, tasting exotic foods, and exploring unfamiliar landscapes. But before you take off on an international adventure, remember that a little preparation can help prevent a lot of unexpected headaches.

1. Obtain And Copy Necessary Documentation

Most U.S. citizens need a valid U.S. passport for international travel. Although some countries allow you to enter with just a birth certificate and driver's license, all people traveling abroad by air must have a valid passport to reenter the United States. Those traveling by land or sea must have proof of both their U.S. citizenship and identity; in many cases, the new U.S. passport card will suffice. You do not need a passport to travel to or from a U.S. territory (such as U.S. Virgin Islands or Puerto Rico).

It can take up to six weeks to receive a passport, so plan accordingly. Expedited options are available for additional fees. Also note that some countries will not accept a passport that expires within six months of your trip. Contact the embassy of your destination country for more information.

Finally, be sure to make copies of your passport, itinerary, airline tickets, and other important documents. Leave one set with a friend or relative at home and carry the other set with you, separately from the originals.

2. Plan Ahead To Stay Healthy

Some countries require inoculations and other medical preparations before entering. You can research your destination at www.travel.state.gov. In addition, U.S. Centers for Disease Control offers information about your destination's medical requirements at www.cdc.gov/travel/.

Many health insurance companies do not cover policyholders while they are in foreign countries. Even if you and your family are covered, you may not receive the same benefits overseas. Contact your insurer's customer service department to find out if you have coverage while traveling abroad, and if any restrictions apply. If needed, you can typically purchase short-term supplemental health coverage from an insurance company, travel agent, tour operator, or cruise line. These policies are often combined with medical evacuation coverage, which helps defray the costs of an emergency medical trip back home.

If you take prescription medication, bring at least enough to last your entire trip. Carry medications in their original, labeled containers and pack them in your carry-on luggage. Ask your pharmacist for the generic name of your medications in case you need more while abroad, and ask your doctor to write a letter explaining your need for the medications. Some countries restrict the types of medications allowed into the country without medical documentation.

Finally, review your options for health care at your destination before you arrive. It is best to prepare for an unpleasant surprise rather than having to search for a doctor at the moment you need one.

3. Avoid Costly Mistakes

Planning to use your mobile phone? Contact your carrier and review your plan for international roaming. Calling, texting, and posting updates to your social media sites can be extremely expensive if you don't plan ahead.

Similarly, ask your credit or debit card bank about foreign transaction fees. Since many do not charge these fees, it may pay to shop around. Also, inform you card companies that you will be traveling so that they won't suspend your card for suspicious activity while you're away and so that they can provide a toll-free number in case you need to contact them.

If you plan to use cash or traveler's checks, keep some on your person and some in a separate safe location. Also, before deciding to use traveler's checks, be sure to confirm they are readily accepted. And remember to check exchange rates so you can accurately calculate your vacation budget.

4. Consider Travel / Baggage Insurance

In addition to supplemental health insurance coverage, you may want to consider purchasing travel insurance, particularly if the peace of mind outweighs the premium cost. Some types of policies protect you in case the trip is cancelled or interrupted due to certain events, such as weather, illness, or death of a loved one. Investigate whether your credit card or travel club offers this type of coverage as well.

Although most airlines will reimburse passengers for luggage lost during transit (up to certain limits), you might also want to consider baggage insurance for protection when your bags are not in possession of the airline.

Travel Safe!

These are just a few tips to consider before traveling overseas. For more comprehensive information, visit the U.S. State Department website at www.travel.state.gov.

Be sure to follow all of Abel Financial Strategies' social media channels and subscribe to our blog!

Facebook

Twitter

LinkedIn

YouTube

Visit AWAbelFinancial.com fore more information.

Your complete source for personal financial planning.

A Certified Financial Planner ® in good standing that believes whole-heartedly in the Standards of the CFP ® program.

Abel Financial Strategies are not attorneys or accountants. If a need is discovered, we will refer you to attorneys or accountants in your area to work with or work closely with your attorney or accountant to resolve the need.

Securities offered through First Heartland Capital®, Inc. Member FINRA/SIPC   Advisory Services offered through First Heartland Consultants®, Inc.   (Abel Financial Strategies is not affiliated with First Heartland Capital®, Inc.)

Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes) and Barron's (S&P 2014 total return); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprices.org (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indices listed are unmanaged and are not available for direct investment. Securities offered through First Heartland Capital® , Inc. Member FINRA/SIP

Famous People Who Failed To Properly Plan

It's almost impossible to overstate the importance of estate planning, regardless of the size of your estate and the stage of life you're in. A close second to the need to plan your estate is getting it done correctly, based on your individual circumstances.

You might think that those who are rich and famous would be way ahead of the curve when it comes to planning their estates properly, considering the resources and lawyers presumably available to them. Yet, there are plenty of celebrities and people of note who died with inadequate (or nonexistent) estate plans.

No Estate Plan

Sonny Bono
Photo Credit: IMDB.com

It's hard to imagine why some famous people left this world with no estate plan. A case-in-point involves former entertainer-turned-congressman Salvatore Phillip "Sonny" Bono. He died in a skiing accident in 1998, leaving no will or estate plan of any kind. His surviving wife had to petition the probate court to be appointed her deceased husband's administrator, seek court permission to continue various business ventures in which Sonny was involved, and settle multiple claims against the estate (including one from Sonny's more famous prior spouse, Cher). To make matters worse, a claim against the estate was brought by a purported extramarital child, which necessitated a DNA test from Sonny's body to determine whether he'd fathered the claimant (he had not).

Do-It-Yourself Disaster

Warren E. Burger
Photo Credit: Biography.com

We've all seen the ads for do-your-own legal documents, including wills and trusts. The law does not require that you hire an attorney to prepare your will, but even the highest ranking jurist of his time should have relied on estate planning experts to prepare his estate. Instead, U.S. Supreme Court Chief Justice Warren E. Burger, who died in 1995, apparently typed his own will (consisting of only 176 words), which contained several typographical errors. More importantly, he neglected to address several issues that a well-drafted will would typically include. His family paid over $450,000 in taxes and had to seek the probate court's permission to complete administrative tasks like selling real estate.

Heath Ledger
Photo Credit: IMDB.com

The Importance Of Updating Your Estate Plan

Sure, formulating and executing an estate plan is important, but it shouldn't be an "out of sight, out of mind" endeavor. It's equally important to periodically review your documents to be sure that they're up to date. The problems that can arise by failing to review and update your estate plan are evidenced by the estate of actor Heath Ledger. Although Ledger had prepared a will years before his death, there were several changes in his life that had transpired after the will had been written, not the least of which was his relationship with actress Michelle Williams and the birth of their daughter, Matilda Rose. His will left everything to his parents and sister, and failed to provide for his significant other and their daughter. Apparently his family eventually agreed to provide for Matilda Rose, but not without some family disharmony.

Florence Griffith Joyner
Photo Credit: Biography.com

The Importance Of Telling Someone Where The Documents Are Kept

An updated estate plan only works if the people responsible for carrying out your wishes know where to find these important documents. Olympic medalist Florence Griffith Joyner died at the young age of 38, but her husband claimed he couldn't locate her will, leading to a dispute between Mr. Joyner and Flo Jo's mother, who claimed the right to live in the Joyner house for the rest of her life.

Don't Fall Victim To One Of These Disasters!

As you can see, the importance of properly planning your estate cannot be overstated. Don't fall victim to one of these estate planning disasters; contact Abel Financial Strategies to set up an estate planning consultation today.

Be sure to follow all of Abel Financial Strategies' social media channels and subscribe to our blog!

Facebook

Twitter

LinkedIn

YouTube

Visit AWAbelFinancial.com fore more information.

Your complete source for personal financial planning.

A Certified Financial Planner ® in good standing that believes whole-heartedly in the Standards of the CFP ® program.

Abel Financial Strategies are not attorneys or accountants. If a need is discovered, we will refer you to attorneys or accountants in your area to work with or work closely with your attorney or accountant to resolve the need.

Securities offered through First Heartland Capital®, Inc. Member FINRA/SIPC   Advisory Services offered through First Heartland Consultants®, Inc.   (Abel Financial Strategies is not affiliated with First Heartland Capital®, Inc.)

Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes) and Barron's (S&P 2014 total return); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprices.org (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indices listed are unmanaged and are not available for direct investment. Securities offered through First Heartland Capital® , Inc. Member FINRA/SIP

What Can Your Financial Planner Do For You?

As much as you may try to convince yourself otherwise, you're not a financial planner. You don't know the ins and outs of the financial industry, you don't have experience watching the market, and you don't know the potential financial pitfalls that lie around every corner - and that's okay. You don't have to know all of these things; that's what your financial planner in Powell, Ohio is for.

Your Planner Will Be Your Sounding Board
Every smart individual will tell you that it's important to consider the situation from all angles before you make a large purchase. Your financial advisor in Powell, Ohio can help you look at the bigger picture to try to ensure that your big purchase - such as a house or car - makes sense financially.

Your Planner Will Warn You Of Potential Pitfalls
You are not a financial planner; you are not expected to know the proper precautions and preparations for each new step. Your financial advisor in central Ohio will know how to proactively prepare for each new phase of life and can help you try to avoid potential financial pitfalls along the way.

Your Planner Will Guide You Through Life's Transitions
Life is an exciting ride, but each new phase of life brings new financial challenges. Getting married, buying a house, having children, and planning for retirement all have big financial implications that must be carefully considered. Your financial planner will know the types of monetary implications that come with each new phase of life and can help counsel you on the appropriate steps to take.

Your Planner Can Help You Prepare For The Future
Can you say with authority that you know exactly what your future will hold? Of course not - no one can. Your financial planner can, however, help you work towards strategically allocating your funds to prepare for all of life's ups and downs. Your planner will be able to help you try to determine which type of retirement fund is best for you, how to save for your children's college educations, and how to save some money aside for unforeseen emergencies.

Contact Abel Financial Strategies To Get Started
Most people are worried about the cost of working with a financial planner, but there is a bigger expense to consider: what is the cost of not working an experienced financial advisor in Powell, Ohio? 

Give me a call and we can work together to discuss your options.

Be sure to follow all of Abel Financial Strategies' social media channels and subscribe to our blog!

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Visit AWAbelFinancial.com fore more information.

Your complete source for personal financial planning.

A Certified Financial Planner ® in good standing that believes whole-heartedly in the Standards of the CFP ® program.

Securities offered through First Heartland Capital®, Inc. Member FINRA/SIPC   Advisory Services offered through First Heartland Consultants®, Inc.   (Abel Financial Strategies is not affiliated with First Heartland Capital®, Inc.)

Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes) and Barron's (S&P 2014 total return); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprices.org (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indices listed are unmanaged and are not available for direct investment. Securities offered through First Heartland Capital® , Inc. Member FINRA/SIP

Business Owner Succession Planning

Every successful business owner must eventually face the question: What will happen to my business when I become disabled, retire, or die? Sooner or later, you will generally need to identify someone to transfer your ownership interest to - family members, co-owners, key employees, or an outside party. Without a succession plan, the business may need to be liquidated.

Successor Management

One of the first questions that should probably be addressed is: Do you have successor management readily available to run your business? Without it, the business may fail. You might look among co-owners, family members, and key employees for candidates. It may be necessary to train successor management, helping others develop their skills or even bringing in new talent. Of course, if you sell to an outside party, that party may provide their own management. It should be noted that successor management can, but need not be, the same as the successor owners.

Co-Owners

If you have co-owners, you and your co-owners may wish to keep ownership limited to a select group. One way to do this, while providing a market for your interest in the business, is for you and other owners or the business entity to enter into a buy-sell agreement. A buy-sell agreement is a legally binding contract in which the owners of a business set for the terms and conditions of a future sale or buyback of a departing owner's share of the business. Specifically, buy-sells control when owners can sell their interests, who can buy an owner's interest, and at what price.

Family Members

Keeping the business in the family can present many issues that may contribute to the success or failure of the business as it is transferred to the successor generation. Do you wish to sell the business to family members, make gifts or bequests of interests, or perhaps use some combination of these? Do you need income for retirement, for your surviving spouse, or for the payment of final expenses? You may need to provide compensation to family members working in the business and profits to family members retaining an ownership interest, while cashing out some family members or otherwise providing for them.

You can make gifts of up to $14,000 per recipient per year free without filing a gift tax return (or $28,000 for couples). Your yearly annual gifts will be applied to your total lifetime gift exclusion amount, which is currently set at $5.43 million for individuals or $10.86 million for couples. You can often obtain significant valuation discounts by making gifts of interests in a family limited partnership or family limited liability company.

Sales to family members can utilize buy-sell agreements and installment sales. Installment sales allow the family member to make payments over time.

Key Employees

You may have some key employees working for you, who provide some unique skills and value to your business, and who have an interest in owning the business. You may be able to sell the business to them utilizing buy-sell agreements and installment sales. A business can also be sold to an employee stock ownership plan (ESOP), a tax-favored retirement plan for employees.

Outside Party

In some cases, succession is not practical using transfers to co-owners, family members, and key employees. Or it may be that you need to obtain the highest possible price for the sale. In that case, selling to an outside party may be the answer.

Income Tax Consequences

Generally, the sale of your interest in a business will result in capital gain or loss tax treatment. You generally receive a tax basis stepped up (or stepped down) to fair market value for property you own at your death. Therefore, there will generally be no capital gain if your estate sells for your interest shortly after your death. Also, if you sell your interest in an installment sale, capital gains (if any) are generally not taxed until installment payments are received.

Questions About Business Succession Planning?

Business succession planning is an important process that should not be overlooked. If you are ready to take steps towards solidifying a succession plan for your business (or if you have questions about the process) contact Abel Financial Strategies. We are here for you!

Be sure to follow all of Abel Financial Strategies' social media channels and subscribe to our blog!

Facebook

Twitter

LinkedIn

YouTube

Visit AWAbelFinancial.com fore more information.

Your complete source for personal financial planning.

A Certified Financial Planner ® in good standing that believes whole-heartedly in the Standards of the CFP ® program.

Securities offered through First Heartland Capital®, Inc. Member FINRA/SIPC   Advisory Services offered through First Heartland Consultants®, Inc.   (Abel Financial Strategies is not affiliated with First Heartland Capital®, Inc.)

Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes) and Barron's (S&P 2014 total return); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprices.org (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indices listed are unmanaged and are not available for direct investment. Securities offered through First Heartland Capital® , Inc. Member FINRA/SIP