To mark Valentine’s Day this year, we asked five advisors to spread the love (the love of financial well-being, that is) by sharing a wide range of wealth planning tips that are near and dear to their hearts.
So how does Buckingham love thee? Let us count the ways….
1. Leverage an HSA: “One strategy I love is taking full of advantage of your Health Savings Account (HSA). In 2022, individuals can contribute up to $3,650 ($7,300 for family coverage), which gives you a rarely seen triple tax advantage. Your contributions go in pre-tax, grow tax-deferred, and can be used tax-free for qualified health expenses, making this account one of the most powerful savings vehicles you can have.” – Ryne Vickery, CFP®
2. Optimize Your Approach to Student Loan Repayment: “If you’re grappling with the (most recent) expiration date of the federal student loan payment pause, you’re not alone! If you’re currently enrolled in or considering an Income-Driven Repayment (IDR) plan, make a point to discuss your student loans with your team of financial professionals (especially your tax advisor) to better understand how your income and tax filing status impacts your required repayment amount. While borrowers currently enrolled in an IDR plan are not required to recertify before payments restart in May, knowing your options ahead of time can help you make empowered choices. If your income has decreased or if you’re now claiming additional tax dependents, consider recertifying early to lock in an updated, lower future payment amount based on your current situation. You can also use the Department of Education’s loan simulator to get estimates of your monthly payments under different IDR plans.” – Becca Craig, CFP®, CSLP®, ABA
3. Begin Special Needs Planning with a Letter of Intent: “A big component of planning for a loved one with a special need is the creation of a Letter of Intent or Letter of Care. This letter serves a critical role for a family where a member has a disability. It is basically an overview of the family member’s likes, dislikes, medical history, financial resources, government benefits, social network, list of friends, preferences, doctor, attorney, caregivers, housing preferences or goals, employment history … you get the picture. The goal in creating this document is for the parents or current caregiver to capture anything and everything that is important about caring for their loved one, so that the person with the disability can be cared for in the best possible way when you are no longer in the picture or able to provide care.” – Michael Clayman, CFP® and Chartered Special Needs Consultant®
4. Have Those Uncomfortable Conversations: “When it comes to legacy planning, plan with the end in mind. Schedule time with your advisor to discuss the best approach to strategic matters, like conversations with adult children to prepare them to become great financial stewards or to remind them that your legacy is about more than money. Each year, be sure to review long-range charitable and wealth transfer goals, as well as tactical planning for the current year’s charitable gifts and gifts to family members.” – Elliot Dole, CFP®, EA, AEP®, CExP™, CAP®
5. Value Your Business: “If you’re a business owner, keeping a finger on the pulse of your business is crucial. A business is typically an owner’s largest and most complex investment. While many investors have close to instant access to the value of their personal investments, this option is not available to owners of a closely held business. Conducting a periodic business valuation can help track the performance of a business over time and identify critical factors that have a direct impact on value.” – Chuck Laverty, ASA, CBA, CVA, MAFF, CEPA
Remember, this Valentine’s Day, all you need is love … and a solid financial plan. The good news is that our commitment to and passion for creating personalized wealth strategies isn’t limited just to February 14. For more strategies to spice up your financial life, talk to your advisor.
For educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is based upon third-party data which may become outdated or otherwise superseded without notice. Third-party information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. The above strategies are for informational and educational purposes only, individuals should speak with their qualified tax professional, and advisor based on his or her unique circumstances. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this article. R-22-3236
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