Sometimes the emotions of investing can cause quick reactions, following the trends—which isn’t always the most successful.
The Liberated Wealth® 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.
Unique opportunities can include emotional investing that can happen with trends and quick reactions. But there are ways to implement room for risk and create a diverse portfolio that can sustain for generations.
Understand The Motivation
The psychology behind quick judgments reveals a lot about human nature.
Just like there are stages of grief, there are emotional stages of trading and wealth. Committing to a snap decision with a high-risk can bring a roller coaster of emotions: excitement, hope, anxiety, fear, panic, and relief (if all goes well). This is true for financial planning in general.
Investor behavior has been the target of many studies because investment (even when unwanted), is powered by emotions. Ask yourself some of the following questions about your potential investment:
Why am I investing?
Does this align with my long-term goals?
Can I pivot my wealth if this fails?
What do I want in life and does this decision support this?
Setting Goals Instead
Implementing long-term goals is always a good idea, especially when you might have a history of pulling the trigger on quick investments that failed. Dollar-cost averaging and diversification are two approaches that investors can implement to make consistent decisions that are not driven by emotion.
Life is About Balance!
At the end of the day, finding a balance of overconfidence and underconfidence might find you not in the sweet spot of the exhilaration of investing, but the confidence of having sustainable wealth.
And better yet, there is a tangible way to measure balance—a diversified portfolio!
Talk to one of our trusted wealth advisors today at Centura Wealth Advisory to learn more about liberating your wealth!
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.
https://centurawealth.com/wp-content/uploads/2024/08/iStock-1225117361.jpg14142121Magdi Cookhttps://centurawealth.com/wp-content/uploads/2024/07/Centura-Logo-Grey.pngMagdi Cook2021-09-25 17:54:002024-08-27 17:55:42How to Sustain Wealth in an Ever-Changing Market
Did you know about 70% of wealthy families lose their wealth by the second generation, and 90% lose it by the third generation?
This is a troubling statistic—which is why, at Centura Wealth Advisory, our goal is to help families explore and implement purposeful strategies and solutions for successful wealth outcomes.
With vast experience working with high-net-worth individuals and families, our team is fully prepared to embrace your family’s complex financial life, circumstances, and strategies. We will help develop the best strategies for you.
Read on to understand why families are losing their wealth so quickly and to learn how to transform your strategy to make your generational wealth last.
Why is Generational Wealth Difficult to Preserve?
As the Chinese proverb says, “The first generation makes the money, the second spends it, and the third sees none of the wealth.”
Typically, in the process of earning wealth, the first generation learns how to:
Acquire assets
Optimize investments
And spend wisely
The second generation, being born into wealth, may forgo the opportunities to learn these skills. Therefore, a common mistake of the second generation is not acquiring assets and investments that:
Support lifestyle they’re accustomed to
Can be passed onto the next generation
Consequently, the third generation is left with little remains of the original wealth along with limited financial education and experience.
How Can You Make Your Generational Wealth Last Beyond the Next Generation?
Creating long-term goals, prioritizing financial education, having clear expectations, and communicating clearly are all essential practices in making your generational wealth last.
Identify Your Family’s Purpose
To implement successful strategies, we focus on generational wealth through purpose. This method includes:
Unpacking your family’s values and dreams
Helping you define, implement and track your family’s purpose
Making your family’s purpose the impetus of your wealth
Avoid responding to daily market conditions, buying the next hot investment product, chasing the latest wealth strategy, or only attempting to preserve your wealth.
At Centura, we instead suggest developing long-term goals that align with your family’s purpose and focus on the growth of existing assets. These goals might include:
Investing in the stock market
Investing in real estate
Building a business to pass down
Creating a strong retirement plan
We recommend working with one of our trusted advisors to ensure your unique financial situation is progressing towards these goals.
Invest in Financial Education
Financial education is crucial for family members to understand wealth sustainability. Without the proper knowledge and skills, the next generation is likely to deplete the wealth through poor spending habits and a lack of guided investments.
By providing the next generation with financial education, you provide the skills, knowledge, and habits they need to preserve and build their wealth.
This education can range from enrolling family members in relevant courses, teaching them about assets and investments at the office, or even just including them in day-to-day conversations about smart spending.
Provide Clear Expectations and Goals for Your Family
Consider possible goals you may have for your family to ensure their financial stability. Some examples may include:
Should you require members of your family to commit to their own success?
Should you ask the next generation to acquire assets and investments to contribute to the wealth of your family?
Would you like members of your family to build a business to pass down to the next generation?
Should you insist every member of your family earns a college degree?
These goals can encourage your kin to build their own financial success. Whatever these goals may be, we suggest introducing your expectations early on and in a clear manner.
Prioritize Transparency and Communication
Tell stories of how your family’s wealth was built; include the next generation in current financial conversations. This communication will allow your family to see the difficulties you have overcome to build your wealth as well as the current challenges you still face.
Additionally, your family can learn from your past and current decisions when it becomes their turn to make similar choices.
Healthy family communication is integral to wealth longevity. Consider hiring a family mediator, coach, or therapist to help your family navigate more difficult discussions about money.
Take Advantage of Life Insurance
Life insurance allows you to protect your family in the event of an untimely death. Without your income and resources, the next generation may not be able to maintain generational wealth. By taking advantage of life insurance, you can secure your family’s financial future.
Invest In and Save for Your Children’s Education
Education can give your children the tools and opportunities they need to have successful, independent careers to navigate their own finances.
According to U.S. News and World Report, the average student loan debt has hit a new record high for recent college graduates—exceeding $30,000. If your child graduates college without this debt, they are more likely to begin accumulating their own wealth, become a homeowner, and pass wealth on to the next generation.
Ready to Take These Steps to Ensure Generational Wealth?
With diligent stewardship, care, and attention, a family’s wealth can last for generations. This is what we provide at Centura Wealth Advisory.
At Centura, our main focus is to liberate your wealth, going above and beyond traditional money management. We aspire to bring only the best value-added solutions to our clients.
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.
https://centurawealth.com/wp-content/uploads/2024/08/iStock-1250019115.jpg13362244Magdi Cookhttps://centurawealth.com/wp-content/uploads/2024/07/Centura-Logo-Grey.pngMagdi Cook2021-09-16 17:55:002024-08-27 17:57:39Generational Wealth: Transform Your Strategy to Make It Last
Professionals have compared structured notes to the innovative mindset behind mutual funds—with the main draw being zero interest rates. In the past, structured notes were a high-risk, high-return investment that only very wealthy investors could get involved in. Recently, however, the transition to using more technology for investing has opened the door for more individuals and families to invest using structured notes.
Centura Wealth Advisory works with clients to build a diversified portfolio when financial planning, and considering structured notes is a step toward having a more diverse portfolio.
Listen to the recent Live Life Liberated podcast, “Structured Notes Simplified with Robert Sowinski,” for a professional perspective.
What Are Structured Notes?
There are different types of structured notes that can be helpful to understand before investing.
There are a few categories to know for understanding structural notes:
Maturity
Underlying Asset
Protection Amount
Return/Payoff
Structured notes can be compared to a “hybrid security.” They combine the features of various financial products into one. Structured notes combine bonds and additional investments to offer the features of both debt assets and investment assets.
Structured notes aren’t direct investments, but derivatives. They track the value of another product. The amount on a structured note will depend on the issuer repaying the premium and underlying bond.
How do they work?
The basic ways structured notes can be ‘structured’ are the following:
Provide downside market protection
Provide upside (or enhanced) participation
Provide regular payments/income in the form of coupons if certain market conditions are met
Provide a payout/return at maturity if certain market conditions are met
The U.S. Securities and Exchange Commission (SEC) provides more detailed information on structured notes: “Structured notes have a fixed majority and include two components—a bond component and an embedded derivative.”
Financial institutions, as a result, are generally responsible for designing and issuing structured notes, so then the Broker/Dealer can sell them to individual investors.
Potential Risks
It’s important to understand that structured investments will not be a perfect match for all investors based on their risk profile and current portfolio. They are risky as your investments can sit idly without growth
The SEC lists the risks that come with investing in structured notes:
Market Risk
Insurance Price and Note Value
Liquidity
Payoff Structure (which is affected by participation rates, capped maximum returns, and knock-in feature)
Credit Risk
Call Risk
Tax Considerations
Talk to us!
If you’re interested in structured notes and diversifying your portfolio, speak to one of our trusted financial advisors today.
https://centurawealth.com/wp-content/uploads/2024/08/Should-You-Consider-Adding-Structured-Notes-to-Your-Portfolio.jpg14092128Magdi Cookhttps://centurawealth.com/wp-content/uploads/2024/07/Centura-Logo-Grey.pngMagdi Cook2021-09-05 17:57:002024-08-27 17:59:25Should You Consider Adding Structured Notes to Your Portfolio?
Centura Wealth Advisory deviates from the traditional standards of everyday wealth advisories. Our main focus as a wealth advisor is to liberate your wealth, creating an independent advisory firm that goes above and beyond traditional money management. We aspire to bring only the best value-added solutions to our clients; not be all things to all people.
As financial advisors, we want to help our clients Liberate their Wealth and shape a future.
Our Purpose
Centura goes beyond a traditional multi-family office wealth management firm to offer advanced tax and estate planning solutions. Often, traditional wealth managers lack the knowledge and resources to offer their clients the best financial planning.
“We believe everyone has a purpose in life, and ours is to help wealthy individuals and families achieve their purpose through a proactive and comprehensive wealth management process called Liberated Wealth®.”
The Centura Foundation
One tangible example of our actions following our words is the Centura Foundation. The goal of the Centura Foundation is to focus efforts on building and sustaining vibrant communities in the areas where we live and work.
The Centura Foundation was established to harness the charitable nature of our founders and clients for the purpose of directing resources to underfunded established organizations. Built on the concept of Think Global, Act Local, we are dedicated to focusing on community-building activities that address key social issues that create a healthy and vibrant community.
At Centura Wealth, we strive to be the best in our chosen lines of business, not the biggest. Learn more about what liberated wealth means for you today.
https://centurawealth.com/wp-content/uploads/2024/08/iStock-467367026-scaled.jpg17072560Magdi Cookhttps://centurawealth.com/wp-content/uploads/2024/07/Centura-Logo-Grey.pngMagdi Cook2021-08-29 17:59:002024-08-27 18:01:31Meet Centura: Not Your Traditional Wealth Advisors
Trust us, it’s never too early to start year-end financial planning.
Year-end is about so much more than just your financial statements. The right year-end planning allows individuals to make the most out of their financial plans and tax strategies while also monitoring their current progress.
Centura Wealth Advisory believes that there are ways to liberate your wealth—that process can be made possible through financial planning.
What are some advantages of getting ahead of the curve? You may be able to:
Lower your taxes with retirement contributions and charitable gifting
Offset taxes on investment gains by selling some assets
Adjust your budget to meet your financial goals as they change
Whether you’re focused on building wealth, fine-tuning your portfolio or preparing for retirement, there are things you should consider before December 31st.
Below are a couple of steps to follow for your annual financial planning. Let’s take the opportunity to get ahead of the curve and reach your financial goals.
First, What is Year-End Financial Planning?
In its simplest terms, year-end financial planning is a way to determine where you are financially as the year comes to a close.
A successful financial plan can help you:
Assess your budget
Cash flow
And other assets
A financial plan can reduce negative spending habits, help manage taxes, savings, debt and more as well as push individuals towards their financial goals.
Now, let’s take a look at some steps to take in your year-end planning.
Review Your Mortgage
It’s unlikely that you want to deal with a mortgage, but there are many benefits to conducting an annual mortgage review. Why? The factors which drove you to that loan choice – such as finances – have likely changed since after the settlement. By taking the time at the end of the year to review your mortgage, you can be sure the loan you have is still the best choice for your financial situation.
For instance, maybe you’re working from home long-term and want to move to a new area, maybe you’re just ready for a change of pace. Either way, evaluating your current mortgage and adjusting can help future plans be set in motion.
Tax Loss
Year-end financial planning should also include a look at your taxes. While Tax Day may not be until April 15th, getting ahead on tax preparation can be beneficial.
Centura Wealth Advisory specializes in tax planning for different categories including:
Short Range Tax Planning
Long Range Tax Planning
Permissive Tax Planning
Purpose-Driven Tax Planning
Some professionals believe in a tax-loss method as a way to invest in returns, but each family and institution is different.
Our investment philosophy is centered around achieving the best absolute returns given a range of likely outcomes. We achieve this through passive investment management, and by offering a unique set of alternative investments that can bring an excess return to your portfolio.
General Planning
Consider what’s coming in the next few months and beyond. The holidays can become spendy and might require further budgeting. This is another reason why financial planning can never be started too early. It can be tempting to wait until after the holidays, but if you start now then there is greater room for financial liberation.
Let’s Talk Insurance: Time to Review Your Coverage
Insurance policies have a tendency to shift depending on changes in the environment. Centura Wealth Advisory acknowledges that a key element of financial liberation is to monitor and pivot your original plans.
Insurance policies can be broken up into categories depending on your lifestyle. General liability insurance or personal liability insurance are a couple of examples that are worth reviewing.
General liability insurance covers your business when costly claims arise during normal business operations. It can help cover your business in the case that your business caused:
Third-party bodily harm
Third-party property damage
Reputational harm
Advertising injury
General liability insurance, however, does not cover your business for work-related injuries or illnesses sustained by employees. It also does not cover damage to your own business property or mistakes made in your business’s professional services.
Meet with a Tax Advisor
Meeting with a tax advisor can save you time, money and the stress of worrying that you might have made a mistake.
At Centura Wealth Advisory, we are dedicated as fiduciaries to our clients’ stewardship of their assets.
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.
https://centurawealth.com/wp-content/uploads/2024/08/iStock-1208782670.jpg14152119Magdi Cookhttps://centurawealth.com/wp-content/uploads/2024/07/Centura-Logo-Grey.pngMagdi Cook2021-08-14 18:02:002024-08-27 18:03:27Get Ahead of The Curve: Year-End Financial Planning
Wealth can come to someone in many ways. Some people are born with money and some earn it over a lifetime.
Then there are those who inherit their wealth by the passing of a family member or selling of a business. If you haven’t managed large amounts of wealth before, however, understanding the complexity of inherited wealth is an enormous task.
There are psychological and logistic reasons for the overwhelming feeling of inheriting wealth. Even though it is an increasingly common event, this is a topic that is rarely talked about.
So, let’s get the conversation started about the complexity of inherited wealth.
Logistics
There are new responsibilities that come with inheriting wealth. The list is never-ending. This is why financial planning is a pillar of Centura Wealth and is highly recommended to those who suddenly inherit large sums of money.
Some key elements of financial planning include:
Excessive Fees from other professionals
Tactical Gaps (like planning for the future)
Hidden Risks and Costs
Erosion (gradual redirection of funds)
Taxation
Psychology
When individuals inherit large sums of money, often, their morals are put to the test. This is completely normal. Perhaps before inheriting money, you had a vision of what you might do with this extra wealth. For example, donating a large percentage. But now, you might feel differently.
Wealthy families carry wealth burdens. Some aspects that come with this burden include:
Worry
Generational Degradation
Relationship Dynamics
Responsibility
Guilt
Centura Wealth Advisory believes there is a balance in liberating your wealth, and our clients can testament to that. We’ve worked with many families whose net worth exceeds $10M, who have complex financial lives, circumstances, and strategies.
These are some of the expressions Centura Wealth has heard our clients say:
“We don’t want our wealth to ruin our kids’ lives,”
“We want our wealth to foster happiness and purpose,”
“We realize we have a great responsibility to serve our family, and our community,”
“We want our wealth to improve the lives of people who are less fortunate.”
What’s Next?
Talk to a wealth advisor for further steps after inheriting wealth. The list of key elements that contribute to financial planning is long. Just a few to consider depending on your financial situation are retirement plans, long-term financial goals, and investment.
“We believe everyone has a purpose in life, and ours is to help wealthy individuals and families achieve their purpose through a proactive and comprehensive wealth management process called Liberated Wealth®.”
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.
https://centurawealth.com/wp-content/uploads/2024/08/iStock-1285465265.jpg12992309Magdi Cookhttps://centurawealth.com/wp-content/uploads/2024/07/Centura-Logo-Grey.pngMagdi Cook2021-08-09 18:03:002024-08-27 18:05:08The Complexity of Inherited Wealth
So… you want to sell your business. You’re not alone in the crazy market right now.
While there are many risks to owning a business, there are many reasons why you might be considering selling. Whether you are retiring, moving, or seeking new opportunities, here are some steps you can take to make this process as easy as possible.
Organize
Depending on how long your business has been in operation, there is a lot to organize. The paperwork is looming, but there are always steps you can take to organize. In general, financial planning is always a great goal to have as a business owner.
Some documents to gather and organize include:
Tax returns
Three years worth of profit and loss (P&L) statements and balance sheets
Copy of current lease
An updated list of everything that will be sold from business
Contact and clients list
Sales transactions
A summary of monthly sales
After organizing these financial documents, the next step is to review them with your accountant.
Engage with the Professionals
Centura Wealth can help you through this process, and keep your priorities and goals at the forefront of selling your business. Mark Morris speaks to the importance of On the “Live Life Liberated” podcast by the Centura Wealth team. The podcast follows the one idea of minimizing your taxes — through the ING trust. Mark Morris highlights the following subjects for anyone looking to sell their business:
The major hurdles that the ING strategy helps you overcome
What the new California legislative proposal entails — and its implications, if it’s successfully passed
Why Mark strongly recommends that the sale of the business happens this year for optimal results, but options if it doesn’t
How to take advantage of the ING trust even if you don’t yet have a buyer for your business
Click here to learn more about the ING trust from a professional’s point of view!
Benefits
Besides making sure your business looks the best it can, there are various strategies you can follow to make smart decisions, including defined Benefit Plans (DB) and Defined Contribution Plans (DC).
Defined Benefit Plan
A Defined Benefit Plan (DB) is an “employer-sponsored retirement plan where employee benefits are computed using a formula that considers several factors,” according to Investopedia. These factors can include the length of employment and salary history.
With a DB plan, the general rule of thumb is that an employee cannot take out funds from their 401(k) plan.
Defined Contribution Plans
A Defined Contribution Plan (DC) on the other hand is, “a retirement plan that is typically tax-deferred like a 401(k) or a 403(b), in which employees contribute a fixed amount or a percentage of their paychecks to an account that is intended to fund their retirements,” according to Investopedia.
With a DC plan, participation by employees is voluntary.
Find a Trustworthy Buyer
Finding a buyer can be a lengthy process, but it’s worth waiting for the right fit for multiple reasons. Here are a couple of tips to be aware of when looking for a buyer:
Have multiple options as deals fall through all the time
Allow cushion room for negotiation
Keep your values top of mind—does this buyer follow them?
Keep potential buyers updated to help build trusty relationships
It never hurts to network
Communicate with Employees
Throughout the selling process, remember to keep your employees engaged and focused. If employees are happy in their positions, the value of your business grows.
Consider their perspective as an employee throughout the selling process. Telling them too early could cause confusion. Telling them too late can be offensive to the work they are doing. Timing is everything.
One of the key elements of liberating your wealth is planning in a way that unpacks your family’s values and dreams, following an overall purpose. This is a great perspective to have going forward after having a conversation with your parents.
For those who are interested in liberating their own wealth, please contact us at Centura Wealth Advisory today to see how we might partner!
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.
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.
https://centurawealth.com/wp-content/uploads/2024/08/How-Do-I-Prepare-to-Sell-My-Business.jpg13382239Magdi Cookhttps://centurawealth.com/wp-content/uploads/2024/07/Centura-Logo-Grey.pngMagdi Cook2021-07-31 18:05:002024-08-27 18:08:23How Do I Prepare to Sell My Business?
At Centura Wealth Advisory, we make it possible for you to liberate your wealth. But what does this mean? Let’s dive in and take a deeper look.
Planning
Planning is a multi-step process that is tedious but essential to moving forward in your wealth. It’s easy to be disorganized financially, that’s where we step in. Centura Wealth helps you create order and organization, and most importantly — peace of mind.
Planning to liberate your wealth can look differently for each family, individual, or institution. We at Centura offer different areas of planning, including:
Tax Planning
Short Range Tax PlanningLong Range Tax PlanningPermissive Tax Planning Purpose-Driven Tax Planning
Real Estate portfolio Analysis 1031/ExchangesRefinancingExit PlanningLike Exchanges (TICs, NNN, DSTs)
Clearly, there is a lot of planning options available. Depending on your position and interests, we can work with you to narrow down which options deliver the highest value for you.
Precision
Our tax planning starts with your existing baseline. After a comprehensive review, we illustrate and synthesize the complexities of your tax profile into sophisticated options that drive meaningful outcomes to reduce your tax burden for you, your family, friends, and your organizations.
Precision is key, and our team will analyze and triangulate your purposes and want to design a unique liberated wealth plan.
Part of the precision element includes:
Identify Existing Strategies
Establish a Baseline Plan
Unlock “What-If” Scenarios
Identify Planning Scope
Purpose
The purpose of liberating your wealth will naturally stem from planning your finances with precision. Once Centura designs your personalized Liberated Wealth(R) Plan, the next step is to implement and advance the plan. This includes coordinating professionals, portfolio implementation, and scorecard reporting.
With any big step, there are going to be adjustments that come up along the way, and we make sure they still align with your purpose. Centura will help you steward your Liberated Wealth (R)Plan, even if that means pivoting original goals.
There are tangible ways your plan can be stewarded, including:
Plan monitoring
Timely Recalibration
Life Events Reset
For those who are interested in liberating their own wealth, please contact us at Centura Wealth Advisory today to see how we might partner!
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.
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.
https://centurawealth.com/wp-content/uploads/2024/08/iStock-985087934.jpg14142121Magdi Cookhttps://centurawealth.com/wp-content/uploads/2024/07/Centura-Logo-Grey.pngMagdi Cook2021-07-24 18:08:002024-08-27 18:11:51How to Liberate your Wealth: A Deeper Look
Liberating your wealth is achieved with a multifaceted financial plan. Charitable giving is a huge pillar of our Centura Wealth’s mission. Charitable giving is a win-win scenario for everyone. You get to invest in an important cause while improving your bottom line.
Recently, the IRS also put a temporary suspension of limits on charitable contributions (which is typically 60 percent). This means a greater opportunity for you to enhance your charitable giving contributions.
Here are a few things you should know as you start incorporating charitable giving into your financial plan.
The Logistics
The first rule of thumb to follow is to always keep records of charitable giving for the tax year. And be warned, there are many forms to fill out.
Keep in mind there are restrictions as to what classifies a charity. There is a list of charitable organizations provided by the IRS as a guideline for individuals, families, and institutions in regards to the CARES act:
“A state or United States possession (or political subdivision thereof), or the United States or the District of Columbia, if made exclusively for public purposes;
A community chest, corporation, trust, fund, or foundation, organized or created in the United States or its possessions, or under the laws of the United States, any state, the District of Columbia or any possession of the United States, and organized and operated exclusively for charitable, religious, educational, scientific, or literary purposes, or for the prevention of cruelty to children or animals;
A church, synagogue, or other religious organization;
A war veterans’ organization or its post, auxiliary, trust, or foundation organized in the United States or its possessions;
A nonprofit volunteer fire company;
A civil defense organization created under federal, state, or local law (this includes unreimbursed expenses of civil defense volunteers that are directly connected with and solely attributable to their volunteer services);
A domestic fraternal society, operating under the lodge system, but only if the contribution is to be used exclusively for charitable purposes;
A nonprofit cemetery company if the funds are irrevocably dedicated to the perpetual care of the cemetery as a whole and not a particular lot or mausoleum crypt.”
The IRS has laid out requirements for charitable giving. For each noncash contribution that is more than $500, you have to fill out a 8283 Noncash Charitable Contributions form.
Gifts
For tax years after 2018-2025, an individual donor may deduct up to 60% of the donor’s contribution base for gifts of cash (and only cash) to a public charity. To qualify, these gifts must be “to” the public charity, not “for the use of.” The gifts can be subcategorized into short-term or long-term cash flow.
The Bottom Line
If you keep all of your records of charitable contributions, at the end of the year your bottom line will be improved. Today’s low-interest-rate environment affords many charitable planning opportunities that many advisors and donors have never even considered.
While the new 60% limitation may grab headlines, it is limited in its applicability and caution must be paid for donors looking to utilize the 60% limitation in their planning. For example, charitable contribution deductions from prior years, as well as other forms of giving (e.g., household goods, clothing, stocks, bonds, etc.) could void qualification for the 60% limit on cash donations to public charities and reduce it to 50% instead.
Contact our team at Centura Wealth Advisory so we can work with your tax professional to start incorporating charitable contributions into your financial planning.
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.
https://centurawealth.com/wp-content/uploads/2024/08/iStock-1204164330.jpg13682192Magdi Cookhttps://centurawealth.com/wp-content/uploads/2024/07/Centura-Logo-Grey.pngMagdi Cook2021-07-17 18:12:002024-08-27 18:13:49How increased charitable giving can improve your bottom line
With any administration change, you are bound to see changes that affect your business or financial plan, we call it Legislative Risk.
With change comes opportunity. And with risk we see potential.
The Past
In 2019, Centura Wealth wrote a blog, “What Proposed Legislation Could Do to Your Wealth Transfer Plans.” This is a perfect example of legislation that would directly impact your financial planning. The data that came from the legislative acts serve as a reminder that legislative changes can have huge financial planning implications as increased tax burdens are never welcome.
We can learn from history. In 2019 the legislative changes caused Roth conversions to become increasingly valuable as does charitable giving; pairing the two together in the right way can liberate wealth transfer, decrease taxes and fulfill philanthropic goals for your estate.
A current example is the SECURE act (technically “Secure Act 2.0), which could affect your retirement. This bill is an updated version of the original one in 2019. According to Forbes the Secure Act 2.0 could, “Increase minimum wage distribution and raise the catch-up contribution limits.” These are just a couple of changes mentioned that would change retirement and wealth planning.
What is Legislative Risk?
As explained above, the legislative risk is the potential for financial wealth drain because of changes in the law. There are also more specific examples of legislative risks surrounding the workplace. This can be anything from changes in employee benefits or free trade agreements.
Legislative risk can also be phrased as political risk. The goal of legislative risk is that the government should be able to intervene if the industry is failing. However, that is just the goal. There is a continued risk that the government does too much to balance the market, and overly gets involved.
Here’s a few examples of what risks could happen during the shift to a hard market:
Trade policy
Tax regulations
Healthcare changes
Local product safety and environment laws
Local labor laws
Currency regulations
Political instability
Legal and regulatory constraints
Framework, Framework, Framework
Risk Management as a whole is a lot to tackle. So implementing legislative risk into that plan is key. It’s important to remember that frameworks can be simple and effective.
At Centura Wealth Advisory, we invest in our client’s future financial stability. Contact one of our advisors today to see how you can get started liberating your wealth!
How to Prepare
Again, the market is unpredictable, but there are steps you can take to prepare for the worst-case scenario with financial planning. At Centura Wealth, we go beyond the traditional standards for a wealth management plan.
This means to plan for legislative risk, you should consider a couple of options:
Monitor your liberated wealth plan
Analyze future legal risks
Communicate with trusted professionals
Commit to an organization tactic and framework
At Centura Wealth Advisory, we invest in our client’s future financial stability. Contact one of our advisors today to see how you can get started liberating your wealth!
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.
https://centurawealth.com/wp-content/uploads/2024/08/iStock-1126265493.jpg14102125Magdi Cookhttps://centurawealth.com/wp-content/uploads/2024/07/Centura-Logo-Grey.pngMagdi Cook2021-07-10 18:14:002024-08-27 18:15:42Legislative Risk: What do you need to do to prepare?
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