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Estate Planning 101: What You Need to Know

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Estate planning involves the allocation of assets to the next generation. Estate planning is a crucial process that helps individuals to manage and distribute their assets in the event of death or incapacitation. It involves creating legal documents, such as a will and trust, to ensure that your assets are distributed according to your wishes and to minimize taxes and other expenses.

In this article, we will discuss what estate planning is, types of trusts as well as how life insurance can be a key factor of a successful estate plan.

First, What is Estate Planning?

Estate planning is the process of arranging for the management and disposition of your assets in the event of your incapacity or death. It involves creating legal documents, such as a will and trust, to ensure that your assets are distributed according to your wishes and to minimize taxes and other expenses.

It can be used as a way to provide for loved ones in the event of your death and can also be incorporated into your overall estate plan. It is important to consult with a qualified attorney and financial advisor to ensure that your estate plan and life insurance needs are properly addressed.

What is an Estate Plan?

An estate plan is a set of documents that outlines your wishes for your assets, healthcare, and guardianship in the event of death or incapacitation. It typically includes a will, designations for guardianship, a healthcare power of attorney, beneficiary designations, a durable power of attorney, a personal letter of intent and possibly a trust.

Let’s take a look at these documents in more detail.

Wills, Trusts, and Beneficiaries

Wills

A will allows you to pass on certain assets, known as probate assets, to your beneficiaries. These assets go through the probate process before being distributed to your heirs. However, some assets are non-probate assets and bypass the will and probate process. These include assets in a trust, life insurance policies, 401k plans, IRAs, pensions, financial assets with a “payable on death” or “transfer on death” designation, and real estate owned jointly with another person.

Trusts

A trust is a legal agreement that allows assets to be managed by a trustee for the benefit of specified beneficiaries. The trustee is responsible for overseeing the trust and distributing assets to the beneficiaries according to the terms of the trust. Unlike probate assets, assets in a trust bypass the probate process and are distributed directly to the beneficiaries.

Revocable Trusts

Revocable trusts, also known as living trusts, allow the grantor (the person creating the trust) to retain control over the assets placed in the trust during their lifetime. The grantor can make changes to the trust, such as adding or removing beneficiaries, or revoking the trust altogether. The assets in a revocable trust are still considered part of the grantor’s estate for estate tax purposes.

Irrevocable Trusts

Irrevocable trusts, on the other hand, cannot be changed or revoked by the grantor once they are established. The grantor gives up control over the assets placed in the trust and they are no longer considered part of their estate for estate tax purposes. This can provide significant tax benefits, as the trust pays its own taxes on any income generated by the assets.

However, the restrictions can be burdensome over time to the heirs and the grantor can’t change the trust’s terms.

It is important to consult with a qualified attorney and financial advisor to ensure that your estate plan and trusts are properly structured to meet your specific needs and goals. They can help you to evaluate the pros and cons of revocable vs irrevocable trusts and determine the best strategy for your estate plan.

How is Life Insurance Used in Estate Planning?

Life insurance can provide a financial safety net for your loved ones by paying out a death benefit to cover end-of-life expenses. Additionally, for individuals with significant assets, it can be used as a tool to help manage estate taxes.

Main Benefits of Life Insurance in Estate Planning

Quick financial support to beneficiaries. Life insurance allows your beneficiaries to receive prompt financial assistance upon your passing. After the insured person dies, the designated beneficiary can file a claim with the insurance company and receive the death benefit within a matter of weeks.
Easy access to funds to cover financial obligations. A death benefit can provide fast access to funds to cover final expenses and taxes, bypassing the often-lengthy probate process during which a court decides how assets are distributed. This can be especially beneficial when dealing with a large estate.
Tax-free inheritance for your family. Beneficiaries are not subject to income tax on the death benefit, unlike with other assets such as traditional retirement accounts.

When used as a part of an estate plan, life insurance policies can be structured in a variety of ways to achieve specific goals, such as providing liquidity to pay estate taxes or creating a trust to manage the proceeds for the benefit of beneficiaries.

It is important to consult with a qualified attorney and financial advisor to ensure that your estate plan and life insurance needs are properly addressed. They can help you to evaluate your overall financial situation and develop a plan that is tailored to your specific needs and goals.

Connect With Centura

At Centura Wealth Advisory, we go beyond a traditional multi-family office wealth management firm to offer advanced tax and estate planning solutions which traditional wealth managers often lack in expertise, knowledge, or resources to offer their clients.

We invest heavily into technology and systems to provide our clients with fully transparent reporting and tools to make informed decisions around their wealth plan.

Read on to learn more about our 5-Step Liberated Wealth Process and how Centura can help you liberate your wealth.

Disclosures

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability, or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

March 11, 2023

FINANCIAL PLANNING, NEWS, TAX PLANNING

The SECURE 2.0 Act: What These Changes Mean for Taxpayers

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Author: Seth Meisler, CFA, CFP^®, CPA/PFS, MBA, Sr. Wealth Advisor

On December 23, 2022, we received a gift from Congress. A 4,000 page bill called the Consolidated Appropriations Act of 2023. Inside this bill is what is now being called the “SECURE 2.0 Act” (SECURE 2.0). In 2019, the SECURE Act, also known as the Setting Every Community Up for Retirement Enhancement, made significant changes to IRAs and retirement plans.

The largest changes affect those who inherited IRAs or retirement plans. SECURE 2.0 Act offers a number of changes to the existing retirement system, but not as radical as its predecessor. The provisions included in this act, such as raising the age for RMDs and modifying catch-up contribution limits, may appear to be positive at first glance. However, it is important to consider the long-term implications and potential drawbacks of these changes.

In this blog, we will examine the key provisions of the SECURE 2.0 Act and shed light on what these changes could mean for you and your retirement plan.

Significant Changes For Retirement Accounts

Increased Age for Required Minimum Distributions (RMDs)

As of January 1, 2023, the age at which you must begin withdrawing money from your retirement accounts (RMDs) has increased to 73, up from 72. However, if you turned 72 in 2022 or earlier, you will still need to take the RMDs as previously required. In 2033, the RMD age will move to 75.

This may sound like a positive change, but withdrawing money later may not be the most tax efficient option. Due to a combination of rising account values and potential for rising tax rates, taxpayers who delay taking distributions from tax deferred accounts could be subject to pay higher rates in the future than today. It may be more advantageous for individuals to withdraw funds from their IRAs earlier or convert them to Roth accounts, rather than letting these accounts accumulate and potentially facing a substantial tax bill in the future. Careful consideration and planning with your financial advisor will be essential to prevent potentially overpaying taxes and to take advantage of available tax savings opportunities.

Penalty Tax Reduction

The penalties for not taking RMDs will also decrease. Previously, if you failed to take an RMD, you were subject to a 50% penalty on the missed amount. Starting in 2023, the penalty will be reduced to 25% of the missed RMD amount. If you rectify the missed RMD by taking it and filing a corrected tax return promptly, the penalty for IRA accounts will be further reduced to 10%.

Roth Plan Account RMD Elimination

Currently, Roth IRAs are exempt from lifetime RMDs, but Roth Plan accounts (401(k), 403(b), 457(b), etc.) are not. SECURE 2.0 eliminates the RMDs from Roth plan accounts starting in 2024.

Higher Catch-up Contributions

Starting in 2025, SECURE 2.0 increases the catch-up limit for individuals ages 60, 61, 62, or 63 to the greater of $10,000 or 150% of the regular catch-up contribution amount for 2024, adjusted for inflation.

Starting in 2025, Simple IRA participants ages 60, 61, 62, and 63 can also make larger catch up contributions. The catch up amount is the greater of $5,000 or 150% of the regular catch-up contribution amount for 2025, adjusted for inflation.

Currently, catch-up contributions (401(k), 403(b), governmental 457(b), but not SIMPLE IRAs) for those over 50 can be made on either a pre-tax or Roth basis. Starting in 2024, SECURE 2.0 mandates plan participants with earnings over $145,000 (subject to inflation) to make a catch-up contribution to a Roth plan account (if offered by the plan).

Note: If a plan doesn’t offer a Roth option, catch-up contributions are not permitted for any employee (regardless of their wage level).

Starting in 2024, the catch-up contribution limit for IRAs for those aged 50 or older will be adjusted for inflation, meaning it may increase annually based on cost-of-living adjustments. For 2023, the catch up contribution is still $1,000, although the IRA contribution limit has increased to $6,500.

Roth Changes

SIMPLE and SEP IRA Roth Options

Previously, contributions to SIMPLE and SEP IRA had to be made on a pre-tax basis. However, SECURE 2.0 permits the creation of SIMPLE and SEP Roth IRA in 2023. This includes contributions in the employee’s taxable income for the contribution year. It is possible to create a Roth SEP or SIMPLE today, but it will take time for IRA custodians and employers to update their systems, programs, paperwork, and processes to support such contributions.

Employer Contributions as Roth Contributions

SECURE 2.0 permits employer contributions (match or non-elective, but not Profit Sharing) to be allocated towards Roth contributions in a qualified plan, 401(k), 403(b), or governmental 457(b) plan, starting from its implementation. It’s important to note that these amounts must be fully vested and will be included in the employee’s taxable income for the contribution year.

529 Plan to Roth IRA Rollover

Starting in 2024, SECURE 2.0 allows for tax and penalty-free transfer of 529 plan funds to a Roth IRA. However, several conditions must be met to be eligible:

The Roth IRA must be in the name of the 529 plan beneficiary;
The 529 plan must have been in existence for at least 15 years;
The annual transfer limit is the Roth IRA contribution limit for that year ($6,500 in 2023);
The lifetime rollover limit is $35,000;
And contributions to a 529 made within the preceding 5 years (and associated income) cannot be rolled over to a Roth IRA.

In many respects, this is a great idea that is impractical and is likely to be rarely used, based on the current restrictions.

Qualified Charitable Distributions (QCD)

Inflation-indexed QCD Limit

The annual limit for QCD was set at $100,000 when it was first introduced in 2006 as part of the Pension Protection Act. Despite the passage of time, the limit has remained unchanged. However, starting in 2024, the QCD limit will be adjusted for inflation.

Ability to Use QCD for Split-interest Entities

Effective in 2023, individuals can make a one-time QCD of $50,000 to a charitable gift annuity, charitable remainder unitrust, or charitable remainder annuity trust.

Final Thoughts

These are just a few of the many rules that have changed with the introduction of SECURE 2.0 Act. It’s important to note that some changes, although they appear beneficial, may not have the desired outcome depending on your personal financial situation.

These recent rule changes highlight the importance of staying informed and having a comprehensive plan in place. It’s crucial to consider the long-term implications of these changes and how they may impact your finances. It’s advisable to work with a financial advisor to navigate these changes and ensure you’re making the best decisions for your future.

Connect With Centura

At Centura Wealth Advisory, we go beyond a traditional multi-family office wealth management firm to offer advanced tax and estate planning solutions which traditional wealth managers often lack in expertise, knowledge, or resources to offer their clients.

We invest heavily into technology and systems to provide our clients with fully transparent reporting and tools to make informed decisions around their wealth plan.

Read on to learn more about our 5-Step Liberated Wealth Process and how Centura can help you liberate your wealth.

Disclosures

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability, or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.

For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

February 6, 2023

ESTATE PLANNING, FINANCIAL PLANNING, NEWS, PORTFOLIO CONSTRUCTION, TAX PLANNING

5 Steps to Support Sophisticated Wealth Management

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Sophisticated wealth management is a term used to describe financial planning and investment strategies that are tailored to the unique needs and objectives of high net worth individuals. This type of wealth management typically involves a holistic approach that considers the client’s entire financial picture, including their investments, taxes, estate planning, and other financial matters.

A wealth advisor typically creates a specially tailored investment strategy and plan for their clients to help them manage their assets. This considered, advisors are constantly searching for the ways to streamline and support sophisticated wealth management. At Centura Wealth Advisory, we believe in five steps to support these goals.

Before we discuss, let’s review what wealth management is.

What Is Wealth Management?

In simple terms, wealth management is a service intended to help wealthy individuals meet a diverse set of needs and financial goals. This service is conducted through a consultative process in which an advisor begins by uncovering a client’s unique facts, assumptions and goals. This information then allows advisors to begin crafting a plan that is specific to each client and their situation. Once clients have evaluated options, and made decisions, maintaining a plan and keeping it on track is how advisors steward clients’ wealth over their lifetime (and beyond).

At Centura, the wealth management process includes:

Uncover – Meticulous discovery process to identify facts, assumptions & goals
Unlock – Analyzing & Triangulating to unlock issues and opportunities
Design – Developing a multi-purpose action plan to chart new pathways
Liberate – Implement planning & portfolio solutions
Steward – Maintaining plan by monitoring and recalibrating as appropriate

This process allows advisors to define the scope of work and related value that can be provided to clients. Some of that value may be financial gain and other value may be found in more qualitative aspects such as peace of mind and fulfillment of life goals.

Why Are Some Clients Underserved in Wealth Management?

Some clients may notice a gap in comprehensive planning and the service they actually receive.

Financial professionals typically focus on a few key goals for wealthy families and individuals: growing wealth, retaining wealth, transferring wealth, and strategic giving.

While all of these goals are important, perhaps the most significant challenge in wealth management is tax planning. Why? Once a client accumulates a certain level of wealth, depletion by taxation becomes a major concern.

However, this phenomenon – and the overall focus on retaining wealth instead of simply building it – is often overlooked by financial advisors.

That’s why we do things differently at Centura. Let’s take a look at how we close this gap in service.

How do We Close this Gap in Wealth Management Services?

At Centura, we employ several strategies to close this gap:

We take a holistic planning approach
We utilize five steps to liberate wealth in a collaborative process

What Does a Holistic Financial Plan Include?

A holistic approach looks at an individual’s lifestyle, goals, values, and priorities to create a financial plan that works for them. Financial planners can coordinate these needs and the lifestyle of their clients in order to create a strategy.

A holistic financial plan may include:

Investments (portfolio, brokerage accounts, ETFs, mutual funds, etc.)
Retirement planning (finances and lifestyle, cashflow & liquidity)
Wealth Transfer planning (Estate Tax, Gift Tax, Generation Skipping Tax)
College planning
Budgeting and saving
Tax allocation (Taxable, Tax Deferred, Tax Free)
Risk Management Needs including insurance and asset protection
Income tax planning (forward looking)
Tax preparation & compliance (rear looking)

5 Steps to Support Sophisticated Wealth Management

As noted earlier, at Centura we have created a comprehensive process that’s specifically designed for ultra-high-net-worth families who have complex financial needs. Our process helps us uncover and solve big and small challenges. Sometimes these are common issues and opportunities for wealthy families, and sometimes they are unique. Our process does not discriminate between uniqueness versus common and therefore is well-adjusted to serve our audience.

Just as important is our passion for finding and solving complex problems. We flourish in the details and how to find creative, innovative and effective ways to find efficiencies that extend and expand your wealth horizon.

1. Uncover

First, we pursue holistic discovery by gathering and understanding data; the client’s purpose, path, and professional roster. Categorically this allows us to identify relevant facts, assumptions and goals.

2. Unlock

The next phase is to analyze the facts, assumptions and goals to identify issues and opportunities which is done by establishing a baseline plan. We then consider “what if scenarios, and identify a planning scope that can address the unique needs & wants of the client.

3. Design

The design element is a core piece of the Liberated Wealth® process. The design element includes a multi-phase action plan which drives innovative solutions across a span of professionals. At Centura, we serve as the plan architect and coordinate amongst required professionals. As part of this phase, a wealth scorecard is developed and a forward looking approach to the client’s situation is employed.

4. Liberate

This step involves understanding purposeful deployment. This includes implementation and advancement with plan implementation, coordination of professionals, portfolio implementation, and scorecard reporting.

5. Steward

The final step of the Liberated Wealth® process is to monitor and pivot through purposeful deployment. This includes plan monitoring, timely recalibration, and pivoting based on life events.

This is a detailed explanation of what a process can look like for a client. It’s important to understand what the short and long-term goals are for your wealth management and understanding your advisor’s process is the first step to achieving that goal.

All of these steps revolve around the importance of predicting and planning for the future.

Connect With Centura

At Centura Wealth Advisory, we go beyond a traditional multi-family office wealth management firm to offer advanced tax and estate planning solutions which traditional wealth managers often lack in expertise, knowledge, or resources to offer their clients.

We invest heavily into technology and systems to provide our clients with fully transparent reporting and tools to make informed decisions around their wealth plan.

Read on to learn more about our 5-Step Liberated Wealth Process and how Centura can help you liberate your wealth.

Disclosures

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability, or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.

For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

December 7, 2022

FINANCIAL PLANNING, INVESTING, NEWS

How to Elevate Your Advisory: a Guide for Financial Planner and Wealth Advisors

Businessman talking about investment stock market and graph from computer laptop with broker trader, giving money plan management and analysis. Depicts TradingView financial market chart.

As a financial planner or wealth advisor, you know planning the future of the firm is essential for long-term success.

At Centura Wealth Advisory, we focus our growth across the following five practice area pillars:

Marketing and business development
Financial planning solutions
Life-based estate solutions
Alternative investments
Practice management

In this article, we’ll discuss each of these pillars as well as provide examples of some of our go-to alternative investments.

Marketing and Business Development

How are you leveraging your network of Centers of Influence? Creating opportunities for shared thought leadership through tools like podcasting – such as our Live Life Liberated podcast – or hosting events can prove beneficial through deepening connections, sharing best practices and even increasing referrals.

Financial Planning Solutions

Most financial Advisory firms offer:

Goal based financial planning
Cash flow based financial planning
Needed services after the above is accomplished

How does your firm differentiate your planning offering from the competition? Can you define & articulate your planning process?

Financial advisors can assess their financial planning solutions by asking the following questions about their various process:

Income Tax Planning

What income tax planning strategies do you offer that produce 10-100X+ returns relative to cost?
How do you save your clients 20-80% of their income tax liability?
How are you making clients’ CPAs life easier?
Are you in the driver’s seat of your client’s income tax plan? Or is their CPA?

Wealth Transfer Planning

Are you leading the strategy for your client’s wealth transfer plan? Or is their EPA?

Balance Sheet Optimization

Can you optimize your clients balance sheet to maximize returns, minimize risk and ensure assets are held in optimal account locations for tax purposes?

Investments and Alternative Solutions

At Centura, we understand the power of alternative investments. We look to add exponential value through these alternative investments – such as private equity, private real estate, private credit, hedge funds, cryptocurrency and more.

Chris Osmond, Chief Investment Officer at Centura Wealth Advisory, describes how we approach alternative investments.

https://youtube.com/watch?v=cn8QVK3Dr48%3F%26wmode%3Dopaque%26rel%3D0

Private Credit

Investors may enter private credit investments because of their floating rate loans, which will limit the interest rate risk associated with other forms of investment, such as traditional fixed-income investments.

Additionally, private credit transactions are direct negotiations between the lender and the borrower. This allows investors to access a wide range of private transactions and negotiate terms that best work for their situation.

Life Insurance

Life insurance can be a powerful vehicle for alternative investments. It provides downside protection, high liquidity, and an attractive upside potential relative to investments with a similar risk profile.

Check out episode 31 of our podcast, Live Life Liberated, to learn more about how life insurance solutions can be used as an alternative to fixed-income investments.

Life-Based Estate Solutions

How do you access the best life insurance solution(s) for your clients?

For example, main business lines include:

Cash Management
Income Tax Planning
Wealth Transfer Planning
Business Planning
Death Benefit Planning

Or, advanced Planning concepts, such as:

Split Dollar – Private, Business & GSD
Premium Finance
Charitable Trusts
GRATs, SLATs
IRA Optimization

Check out our retirement checklist, here.

Practice Management

Financial planners and advisors can elevate their advisory through streamlining their systems and processes.

What are Financial Management Processes?

Financial management processes are, in their simplest terms, plans and procedures which will help an individual, family or institution reach their financial goals. These processes can include a series of steps, such as:

Identifying financial goals
Gathering financial and personal information
Analyzing financial information
Developing a customized financial plan to achieve these goals

In order to assess their current solutions, members of a firm can ask questions such as:

How do you Capitalize on your Financial Genius?
How do you build depth in your organization? What is the level of expertise of your #2?
How do you leverage teams in your practice?
What tech stack solution has unlocked revenue and time in your practice?

Learn more in our blog, The Importance of Systems and Processes in Financial Management.

Connect With Centura

At Centura Wealth Advisory, we go beyond a traditional multi-family office wealth management firm to offer advanced tax and estate planning solutions which traditional wealth managers often lack in expertise, knowledge, or resources to offer their clients.

We invest heavily into technology and systems to provide our clients with fully transparent reporting and tools to make informed decisions around their wealth plan.

Read on to learn more about our 5-Step Liberated Wealth Process and how Centura can help you liberate your wealth.

Disclosures

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability, or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.

For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

December 6, 2022

FINANCIAL PLANNING, INVESTING, NEWS, PORTFOLIO CONSTRUCTION

How to Seek Greater Returns in a Risky Environment

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In the current risky environment –with inflation and interest rates on the rise– we are often asked by clients, “How do we manage risk? How will these changes impact our portfolios? Why are these changes happening?”

At Centura, we use alternative investments and believe in taking an institutional approach to our asset allocation. In this challenging market, we guide our clients towards alternative investments such as private real estate, private equity and private credit.

Before we discuss why investors are using these alternative investments as a hedge against inflation, let’s take a quick look at why the market is changing and how these changes will impact investors.

What Has Changed in the Market Over the Last Twelve Months and Why?

The short answer: inflation. Let’s review how inflation got to where it is today and how we can navigate this challenging market moving forward.

From 2009-2021: Inflation and Interest Rates were Low

In the past, for instance from 2009 to 2021, investing seemed simple; the Federal Reserve was continually lowering interest rates or adding liquidity into the economy whenever the market became problematic. Inflation remained low. During this period, investors would invest “by the dip,” or, in other words, invest while the market dipped before the Fed would take action to rectify the situation.

Quantitative Easing in 2020

In 2020, the Fed began quantitative easing (QE) to encourage investment and spur economic activity. In this process, the Fed expanded its balance sheet.

In June 2022, however, roughly two years after the quantitative easing plan was announced, the Federal Reserve began quantitative tightening (QT).

The Federal Reserve, Quantitative Tightening and Inflation

The quantitative tightening process includes allowing the Fed allowing purchased bonds to reach maturity and run off its balance sheet, which results in rising interest rates and has the effect of withdrawing liquidity from the economy.

Inflation remains prevalent in the American economy. In fact, in Q2 2022, inflation – now in the 8-9% range –sat at its highest point since 1982.

What Does This Mean For Investors?

It may be time to become actively involved in the management of your portfolio.

How to Seek Greater Returns and Reduce Risk in a Challenging Market

In constructing an optimized portfolio, there are many elements to consider. The goal of an optimized portfolio is to maximize the return while minimizing risk.

How do we accomplish an optimized portfolio at Centura? We utilize alternative investments and an institutional approach to our asset allocation.

For instance, this means we could have a client with an allocation to alternatives at 30-40%.

In this inflationary market, we guide our clients to alternative investments in private real estate, private equity and private credit.

Private Real Estate

Private real estate can serve as a hedge against inflation and be an attractive option for investors for several reasons, including that private real estate maintains intrinsic value and recovers quickly in a challenging market.

Private real estate has produced solid results for decades and while nothing is recession-proof, many investors consider real estate “recession-resistant.”

Multi-family real estate remains a strong option for investors looking for a hedge against inflation. Why? Demand for multi-family real estate continues to increase while supply remains stagnant.

Learn more about how investors are using multi-family real estate as a hedge against inflation.

Private Equity

Private equity investments are deemed “private” because they involve buying shares or an ownership stake in private companies or funds, rather than ones traded publicly on the stock market.

Private equity provides companies with easy access to capital as an alternative to traditional financing options, such as bank loans. For investors, private equity serves as a vast range of opportunities in which to find value and invest.

Private Credit

Private credit can provide several advantages and opportunities in a market with inflation and rising interest rates.

Floating Rate Loans

In a rising rate environment, floating rate loans are a highly attractive opportunity for investors. Why? Income increases alongside rising interest rates.

Private credit is typically a floating rate. This may help to limit both the rate risk and the duration risk that are associated with traditional fixed income.

Privately Negotiated Deals

Private credit transactions are direct negotiations between the lender and the borrower. This allows investors to access a wide range of private transactions and negotiate terms that best work for them.

For example, private credit investors tend to negotiate for better protections to make credits more defensive, such as a senior secured structure, call protection, or covenant terms.

As the Economy Recovers, Credit Quality Improves

Credit quality typically improves with economic recoveries. While investors should seek the assistance of professional private credit managers to prioritize downside protection, extensive due diligence, and quality of credit.

Structured Notes

Structured notes, written by high credited banks, are customizable and well-suited for a rising interest rate environment and can help investors maintain returns. For more detail, listen in to Episode 35 of Live Life Liberated, “Structured Notes Simplified with Robert Sowinski.”

Tune into the Live Life Liberated Podcast to Learn More

In Episode 61 of the Live Life Liberated Podcast, Roby Kotcamp, Senior Wealth Advisor, and Chris Osmond, Chief Investment Officer, discuss Centura Wealth Advisory’s approach to risk management. They also explore strategies to achieve greater risk-adjusted returns.

Roby and Chris discuss:

A brief overview of the Fed’s recent actions — and their market implications
Why cash flow is more important than the rate of return
How private real estate, private equity, and private credit can be a useful addition to your portfolio
The benefits of structured notes in risk management
And more

Interested in Learning More About How to Invest in Rising Interest Rate Environments?

At Centura, we are dedicated to our role as stewards in leading our clients to purposeful financial planning and investing strategies to ensure their success. One of our goals is to help our clients navigate and understand challenging economic changes, such as the current rising interest rate environment.

Read our article for more information here.

Disclosures

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.

For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

November 18, 2022

INVESTING, NEWS, PORTFOLIO CONSTRUCTION

How Does Real Estate Fit into Your Financial Plan?

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For many, real estate investing plays a significant role in achieving personal financial goals—and can be a crucial component of one’s long-term financial strategies. This considered, real estate is likely a factor you’ve considered when developing your financial plan.

So, how might real estate fit into your financial plan? Let’s discuss.

How Can Real Estate Be a Form of Financial Investment?

Real estate can include both residential and commercial property, including homes, offices, retail, parking lots, apartments, warehouses, multi-family homes, and more.

While owning your own home may be part of your financial plan, it is not necessarily an investment. Why? Primary residences are assets and their value can have a significant impact on retirement or estate plans.

However, real estate investments are defined by their ability to produce passive income for their owners. Some common examples of this real estate income include rental properties or earnings made from investment portfolios.

The Most Important Factors for Real Estate Investing

When looking into real estate, investors may start with questions such as: “What should I look for?” Here’s a shorthand list of factors to consider.

Property Location

“Location, location, location” remains the most important factor for profitability in real estate investing. For example, proximity to the following can affect the value of a property:

Market Retails
Warehouses
Transport hubs
Freeways
Tax-exempt areas
Amenities
Green space, and
Scenic areas

Property Valuation

According to Investopedia, property valuation is “important for financing during the purchase, listing price, investment analysis, insurance, and taxation—they all depend on real estate valuation.”

Expected Cash Flows and Profit Opportunities

Cash flow refers to how much money is left after expenses. With this in mind, positive cash flow is essential to a good rate of return on an investment property.

Investors can look for:

“Expected cash flow from rental income (inflation favors landlords for rental income)
“Expected increase in intrinsic value due to long-term price appreciation
“Benefits of depreciation (and available tax benefits)
“Cost-benefit analysis of renovation before sale to get a better price
“Cost-benefit analysis of mortgaged loans vs. value appreciation”

Active vs Passive Real Estate Investments

Real estate investments can serve as both passive and active investments. Let’s review the difference between these two forms of investment.

Active Real Estate Investments

An active real estate investment is one where an individual or group of individuals comes together to purchase a property directly. The investor is “actively” involved in the process of finding, purchasing, and managing the property.

Passive Real Estate Investments

In a passive real estate investment, an investor receives periodic distributions, but otherwise has no involvement in the day-to-day operations of the property. Passive real estate investments are an excellent option for investors who are looking for passive income.

For more information on passive real estate investing, here.

Why Should You Invest in Real Estate? What Are the Benefits of Investing in Real Estate?

With the right assets, real estate investors can:

Diversify their portfolios
Leverage their properties to build wealth
Create stable income streams, and
Enjoy tax benefits

Additionally, real estate can appreciate with inflation long-term.

According to Forbes, “real estate investments have the characteristic of performing well in a rising rate environment. In particular, income-generating real property and multifamily have historically… Shown a greater ability to grow net income during expansionary periods than securities and other assets.”

Let’s take a look at some other benefits of investing in real estate.

Real Estate Investments Can Diversify Your Portfolio

Real estate investments are known to help increase a portfolio’s overall returns while reducing risk.

Real Estate Investments Can Provide a Stable Income Stream

A key benefit of real estate investing is its ability to generate passive income. For instance, investors who play their cards right can create a steady revenue from rental income while building equity through making improvements to the property.

Real Estate Investments Can Provide Tax Benefits

Tax benefits depend upon the type of real estate investment. For example, rental properties can include the deductions of:

Mortgage interest payments
Property taxes
Ongoing property maintenance
Property insurance, and
Independent contractors

Real Estate Can Serve as a Hedge Against Inflation

Real estate can provide opportunities for investors to protect themselves against their declining purchasing power.

Real estate can serve as a hedge against inflation and be an attractive option for investors for several reasons, including that real estate:

Has intrinsic value
Recovers quickly, and
Demand for real estate is rising, while supply is not

Read on to learn how to use multifamily real estate as a hedge against inflation.

Tune Into Our Podcast to Learn More

In Episode 57, Chris Osmond speaks with Paul Kaseburg, Chief Investment Officer of MG Properties, about investment opportunities in the multifamily real estate market and how they help you cope with rising inflation rates.

They discuss:

How real estate, in general, responds to inflationary pressures
The advantages of multifamily over other types of real estate investments
Latest trends in cap rates and cost of debt that real estate investors should know about, and
How inflation is impacting the affordability gap between single-family homes and apartment renting

Give it a listen!

What Else Can Fit Into Your Financial Plan?

At Centura Wealth Advisory, we are dedicated as fiduciaries to our clients’ stewardship of their assets.

One of our goals is to help our clients navigate and understand challenging economic changes, such as the current rising interest rate environment and inflation.

Review our article “How to Plan and Invest in a Rising Interest Rate Environment” for more information, then get in touch with us today.

Disclosures

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability, or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.

For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

November 11, 2022

CHARITABLE GIVING, FINANCIAL PLANNING, INVESTING, NEWS, TAX PLANNING

Tax Deductible Donations: Rules of Giving to Charity

Business Finance, accounting, contract, advisor investment consulting marketing plan for the company with using tablet and computer technology in analysis.

Donating to charity carries many benefits for taxpayers, such as allowing people to connect with a personal cause and preserve legacy–and it doesn’t hurt that donating to charity can lower your tax bill.

If donating to a charity is part of your tax plan, here are a couple of tips so you can maximize your tax-deductible donation before year-end.

What Qualifies as a Tax Deductible Donation?

Tax deductible donations are contributions of money or goods to a tax-exempt organization such as a charity. The IRS states “Contributions must be made to qualified organizations to be deductible.”

However, donations do not have to be money. In fact, the following donations are eligible for deductions:

Cars
Clothing
Stocks or mutual funds, at the fair market value
Collections of valuable items
Artwork
Jewelry
Securities
Real estate

If the value of what you donate exceeds $250, you need to obtain and file a written acknowledgement from the qualified organization you donated to.

If the value of your non-cash charitable contributions is $500 or more, you’ll need to include specific information about the charitable organization and what was donated when you file your tax return.

What Does Not Qualify as a Tax Deductible Donation?

Taxpayers can maximize potential tax savings by knowing what they can and cannot claim. Let’s take a look at some situations that do not qualify as a deductible donation.

Gifts to a Non-qualified Charity or Nonprofit

Many taxpayers assume that any charity or nonprofit organization is qualified. However, this is not always the case. Each group must register with the IRS for the section of the law that applies to it. According to TurboTax:

Religious and charitable organizations typically fall under section 501(c)(3) and can receive tax-deductible donations.
Not every section allows these deductions. For instance, social welfare and civic organizations registered under section 501(c)(4) don’t qualify.
However, two types of 501(c)(4) organizations—veterans’ organizations with 90% war vet membership and volunteer fire departments—do qualify for charitable deductions.

If you are unsure whether an organization qualifies, try this IRS search tool. We still recommend asking the organization about their qualifications before making a contribution.

A Promise or Pledge to Pay

Pledges can’t be dedicated until the money is actually paid.

For instance, if you agree to donate $50 a month for a year to a qualified charity, you can only claim the donations you made within the tax year, not the whole $600.

A Gift That’s Not a Gift

Many organizations use different methods to earn money. However, fundraising tickets are not deductible. For example, bingo games, raffle tickets or lottery-based drawings are not deductible contributions.

Some Community Drives

Another common misconception relates to community drives aimed at helping an individual or family with issues such as: medical costs, loss of a house from fire or funeral expenses.

Make sure that the cause is sponsored by a 501(c)(3) organization such as the Salvation Army or Red Cross so your financial assistance is deductible.

Political Organizations

The IRS is very clear that money contributed to a politician or political party can’t be deducted from your taxes.

How Much Do You Need to Donate to a Charity to Get a Tax Deduction?

There is no minimum donation amount necessary to earn a tax dedication. In fact, even if you do not itemize your deductions, qualified cash donations up to $300 can be deducted (or $600 if you are filing married jointly). Why? The IRS wants to encourage taxpayers to give money to charity.

However, the safe choice is to always itemize your donations. We recommend getting a receipt for any donations to avoid the danger of having them disallowed in case of an audit.

Is There a Limit on Charitable Donations? How Much does the IRS Allow for Charitable Donations?

Typically, the IRS limits donations to either 50 percent of adjusted gross income for public charities or 30 percent of adjusted gross income for private foundations. Let’s take a look at each of these in more detail.

Public Charities

Contributions to charitable organizations may be deducted up to 50 percent of adjusted gross income computed without regard to net operating loss carrybacks.

According to the IRS, the 50 percent limitation applies to

“All public charities (code PC)
“All private operating foundations (code POF)
“Certain private foundations that distribute the contributions they receive to public charities and private operating foundations within 2-1/2 months following the year of receipt, and
“Certain private foundations the contributions to which are pooled in a common fund and the income and corpus of which are paid to public charities.”

Private Foundations

The IRS states “Contributions to certain private foundations, veterans organizations, fraternal societies, and cemetery organizations are limited to 30 percent adjusted gross income (computed without regard to net operating loss carrybacks), however. Tax Exempt Organization Search uses deductibility status codes to indicate these limitations.”

We recommend that taxpayers enlist the assistance of a tax professional or financial advisor before making large contributions to ensure the donations are deductible.

*Contributions must actually be paid in cash or other property before the close of your tax year to be deductible, whether you use the cash or accrual method.

What is a Charitable Lead Annuity Trust (CLAT)?

A charitable lead annuity trust (CLAT) is a charitable trust in which a charity, donor-advised fund, or a foundation that the grantor selects, receives annual payments. These payments may be set for a term of years or the grantor’s lifetime.

At the end of this period, the remaining CLAT assets are distributed amongst the trust’s non-charitable beneficiaries. These beneficiaries are typically the grantor’s descendants or trusts for the descendants’ benefit.

Charitable lead annuity trusts provide a tax efficient way for individuals to transfer wealth to heirs while benefiting charities.

However, CLATs are not exempt from income tax. If the grantor wants to claim the immediate income tax charitable deduction, the CLAT must be set up as a grantor trust, or G-CLAT.

How to Make the Most of Your Charitable Donations

At Centura Wealth Advisory, we know how to optimize charitable giving strategies to best benefit your long-term financial goals.

Read on to learn more about our 5-Step Liberated Wealth Process and how Centura can help you liberate your wealth.

Read on to learn more about sophisticated gifting strategies for affluent individuals.

Disclosures

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability, or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.

For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

November 2, 2022

INVESTING, NEWS, TAX PLANNING

Selling Your Business: Navigating Taxes and What to do Next

Business Signing a Contract Buy - sell house.

During the process of selling a business, owners have many obstacles to navigate: processes, taxes, and, of course, deciding what to do next.

In this article, we’ll discuss the different types of taxes a business owner may encounter when selling their business, as well as options for how to invest the proceeds.

How to Navigate Taxes While Selling Your Business

In the process of selling a business, taxes tend to be one of the most significant aspects to consider.

The IRS separates taxable income into two main categories: “ordinary income” and “realized capital gain.”

Capital Gains Tax: What is it and How Does it Work?

In simple terms, a capital gain is a profit gained from an investment. When you sell a business, the capital gain is the difference between the original cost and the sale price.

Taxes on capital gains taxes come into play when you sell the business because capital assets are being sold. Capital gains tax is charged on all capital gains. A net long-term capital gain is usually no higher than 15% for most taxpayers, though there are some exceptions for high earners.

What is Ordinary Income?

Ordinary income includes earned wages, rental income, and interest income on loans, CDs, and bonds (except for municipal bonds). For tax purposes, short-term capital gains are treated as ordinary income on assets held for one year or less.

How does this relate to selling your business? Gains on some of the assets being transferred may have to be taxed at ordinary income tax rates rather than at the 15 percent maximum long-term capital gains tax rate.

Let’s Talk Depreciation Recapture

Depreciation recapture is “the gain realized by the sale of depreciable capital property that must be reported as ordinary income for tax purposes. Depreciation recapture is assessed when the sale price of an asset exceeds the tax basis or adjusted cost basis. The difference between these figures is thus “recaptured” by reporting it as ordinary income.”

What does this mean for business owners? The IRS can collect taxes on any profitable sale of an asset that the taxpayer had used to previously offset taxable income.

What to do After Selling Your Business

Business owners may not be sure where to start when it comes to investing the proceeds of the sale of their company. During this time, business owners may want to utilize the help of professional advisors – such as our team as Centura Wealth Advisory – to take a fresh approach curated to the current conditions of the market as well as the goals of the client.

Let’s review some investment options business owners can consider after selling their business.

Structured Notes

A structured note is “a debt obligation that also contains an embedded derivative component that adjusts the security’s risk-return profile. The return performance of a structured note will track both the underlying debt obligation and the derivative embedded within it.”

Structured notes, written by high credited banks, are customizable and well-suited for a rising interest rate environment and can help investors maintain returns. Due to these benefits, more individuals and families are investing using structured notes.

Listen to an Example: Our Client, Doug Pate

In Episode 62 of the Live Life Liberated podcast, Kyle Malmstrom interviews Doug Pate, a client of Centura Wealth Advisory (Centura), who recently sold his business, International Surf Ventures Inc., after growing it for 17 years.

Doug Pate co-founded ISLE with his best friend, Marc Miller. Doug and Marc share a lifelong passion for the ocean and the sports that surround it. In their first four years of business, they sold surfboards online. At the time, there was no direct-to-consumer surfboard company, and by default, they became the industry’s pioneers. In 2008, they shifted their focus from surfboards to stand-up paddle boards as a way to help more people get on the water across the country.

In this podcast, Doug discusses:

His personal experience of navigating a business exit
How the team at Centura guides him through investing using structured notes
How CLATs helped him save seven figures in taxes and achieve his charitable goals
Why wealth protection is as important as growing your wealth
Centura’s involvement in his wealth management (including alternative investments)
And more

Selling Your Business?

Centura Wealth can help you navigate the process with ease. Learn how to prepare to sell your business here.

Disclosures

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability, or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.

For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

October 21, 2022

FINANCIAL PLANNING, INSIGHTS, NEWS

Who Am I Missing on My Team to Sell My Business?

As you start thinking about the process of selling your business, compare this process to a game of baseball. Where do all pick-up baseball games start? With picking your team.

So, captain, who’s your first pick?

While captains are typically great players also, they may not have the expertise needed to fill the roster with the best possible team. You’ve built your business to what it is today, and that’s exactly where your expertise lies. So, how would you know how to assemble the correct team to help sell your business?

The short answer: You don’t have to. That’s where the coach comes in.

By coach, we’re referring to your wealth advisor. At Centura, we help facilitate the sale of your business by providing forensic analysis of your current professional roster and recruiting heavy hitters when necessary.

So, what do we look for when recruiting for your business’ sales team?

The Team You Need to Sell Your Business

Although there are various other positions you might need to fill depending on your unique business, here are five non-negotiable team players that can help sell your business.

Accountant/CPA – The Catcher

The right accountant or CPA acts as your catcher because they can help recommend the best course of action through an analysis of your business.

Depending on the complexity of the sale, a CPA who has specific experience structuring a business for the sale can act more as a consultant during the selling process.

What is the Accountant’s Role On the Team?

Your accountant or CPA plays an integral role in the sale of your business. They are involved in the pricing, due diligence, and negotiation process of the sale. The accountant will need to review your records and advise you on the best structure for your business sale while considering one of the biggest challenges in the sale of your business: taxes.

Appraiser – The Shortstop

People say that the secret to building a successful baseball team is to be strong up the middle. Here’s where your shortstop, or appraiser, comes in.

What is the Appraiser’s Role On the Team?

The appraiser’s role on the team is to evaluate your business’ value. Does your business involve intellectual property, proprietary processes, brand awareness, and other assets that can be difficult to put a monetary value on?

If so, it may be helpful to enlist the help of an appraiser. This professional thoroughly understands your business and what other, similar businesses are selling for. Their main goal is to set you up for success with the appraisal.

Attorney – The Umpire

Like an umpire, the attorney ensures the rules are followed; the attorney is responsible for making sure you can walk away without any potential liabilities and with the money you intended to collect.

What is the Attorney’s Role On the Team?

Your attorney plays a key role in preparing to sell your business, including a guiding hand in both:

The due diligence process
And, the negotiation process

Your attorney oversees the entire process and helps make sure your business is compliant throughout the sale.

Business Broker – Long-Relief Pitcher

Your business broker helps call the shots during the sale of your business. They are involved in the pricing, marketing, due diligence, negotiation, and closing process of the sale.

What is the Business Broker’s Role On the Team?

Every decision that is made is run through the business broker to ensure it is best for your business. Business brokers are in it for the long haul and have the stamina to last throughout the entire sales process.

Wealth Advisor – The Coach

Your wealth advisor helps see the game from a high level, making sure your team plays as effectively as possible. Where do you need to fill in the gaps to get a better business valuation? What players do you need to ‘win’ the sale?

What is the Wealth Advisor’s Role On the Team?

If you’ve ever been a part of a sports team, you know that the coach has the ability to make an exponential impact on the game. At Centura, our goal is to do just that; to positively impact your selling experience by understanding what will make you most successful. How exactly do we provide this exponential value to our clients? Read on to understand our process and see how our advisors bring value and expertise to every encounter.

October 13, 2022

FINANCIAL PLANNING, INSIGHTS, INVESTING, NEWS, PORTFOLIO CONSTRUCTION

Insider Tips From High-Level Financial Advisors

With rising interest rates and inflation reaching a 40-year high, investors, planners and affluent individuals are searching for solutions to create financial strategies to meet their goals.

In this article, we’ll discuss several investment and planning strategies to address some of the most common financial issues faced by affluent individuals: high interest rates, inflation, and high income taxes.

Tips to Navigate a Rising Interest Rate Environment

The primary risks of a rising interest rate environment include the potential for a loss in principal value as well as a loss of buying power. Let’s take a look at some strategies that address and mitigate these risks.

Consider Investing in Private Credit

Investors may enter private credit investments because of their floating rate loans, which will limit the interest rate risk associated with other forms of investment, such as traditional fixed-income investments.

Additionally, private credit transactions are direct negotiations between the lender and the borrower. This allows investors to access a wide range of private transactions and negotiate terms that best work for their situation.

Collateralized Loan Obligations (CLOs)

A collateralized loan obligation (CLO) is “single security backed by a pool of debt….Collateralized loan obligations (CLO) are often backed by corporate loans with low credit ratings or loans taken out by private equity firms to conduct leveraged buyouts.”

With collateralized loan obligations, an investor receives scheduled debt payments from the underlying loans. The investor is offered greater diversity and the potential for higher-than-average returns in exchange for taking on the default risk.

Learn more about using private credit as a hedge against rising interest rates.

Look into Life Insurance

Life insurance can be a powerful vehicle for alternative investments. It provides downside protection, high liquidity, and an attractive upside potential relative to investments with a similar risk profile.

Check out episode 31 of our podcast, Live Life Liberated, to learn more about how life insurance solutions can be used as an alternative to fixed-income investments.

Structured Notes

Structured notes, written by high credited banks, are customizable and well-suited for a rising interest rate environment and can help investors maintain returns.

Tips to Invest Against the Effects of Inflation

Multifamily real estate can provide opportunities for investors to protect themselves against their declining purchasing power.

Consider Multifamily Real Estate as a Hedge Against Inflation

Investors often view multifamily real estate as “inflation resistant.” Why? This form of investment doesn’t typically drop in value as much as other assets during challenging market times. Additionally, multifamily real estate tends to recover faster than other investments.

Further, multifamily real estate is an attractive investment during a market with rising inflation because it:

Has intrinsic value
Provides owners with the ability to adjust rent to combat the effects of inflation
Maintains a rising demand with a stagnant supply

Learn more about why investors are opting for multifamily real estate as a hedge against inflation.

Let’s Talk Short-Term Bonds

Short-term bonds are less sensitive to inflation and the increased rates of a high-interest rate environment than longer-maturity bonds. Longer-maturity bonds may lock in rising rates for longer-time periods whereas shorter-term bonds require a shorter commitment to the high rates and will allow investors to move on to better opportunities.

How to Get Started With These Insider Tips

At Centura Wealth Advisory, we go beyond a traditional multi-family office wealth management firm to offer advanced tax and estate planning solutions which traditional wealth managers often lack in expertise, knowledge, or resources to offer their clients.

We invest heavily into technology and systems to provide our clients fully transparent reporting, and tools to make informed decisions around their wealth plan.

Read on to learn more about our 5-Step Liberated Wealth Process and how Centura can help you liberate your wealth.

Disclosures

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability, or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant.

For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.

October 8, 2022