Path to Prosperity

When it comes to your financial health, a trusted and well-informed advisor is an invaluable ally

Whether you are seeking to maintain your current level of wealth or actively grow an investment, it is key to have a partner that provides cutting-edge professional guidance through the real-time shifts in financial markets. The proliferation of fintech has expanded options for managing finances in real time, whether for convenience, security, simplicity, transparency, or enhanced personalization. However, navigating these rapidly shifting waters requires informed guidance to ensure you stay safe, solvent, and successful in reaching your financial goals.

Regardless of where you are on your life’s path, having a professional in your corner who has a full understanding of your financial condition is a valuable asset. Conversely, managing just one revenue stream or a single aspect of your financial picture (as done by an entertainment attorney, agent, broker, etc.) will not provide a balanced assessment of your current financial health, nor will it empower you with a clear prognosis for your financial future. Other professionals may have a primary objective based on what they are hired to do, but they are rarely thinking beyond that immediate priority. These individuals often rely on a business manager with accounting expertise to provide them with the information and documentation necessary to execute results at a high level for the client.

Hitting short-term or long-term projections, improving household cash flow, and making better business decisions are indicators that shrewd financial planning can have a positive impact on both your home and business. The management of high-income financial affairs inherently adds complexity to matters such as taxes, contracts, royalties, endorsements, retirement, and legal concerns. A few specialized areas that merit consideration include trusts and wills, loan-out corporations, and strategic philanthropy.

[To read more of Howard Grobstein’s thought leadership click here]

Trusts and Wills

While no one relishes the inevitable, leaving your survivors adequately equipped to resume the continuum of life after your departure is a universally shared preference. That’s why establishing a living trust is essential. Whether you wish to form a trust or are seeking support on financial accounting or distribution calculations related to a trust or receivership, this is an area that requires the services of a professional who can fulfill the role of liquidating trustee, estate trustee, disbursing agent, and financial advisor with seamless precision. Establishing parameters for estate management for your heirs, including the transfer of wealth, should be undertaken with a financial partner that can provide guidance commensurate with your needs.

Effective wealth management is possible with wise counsel and through new technologies, and carefully assessing your options at every crossroads is essential to your financial success.

Loan-Out Corporations

Perhaps you’re interested in setting up a loan-out corporation but want to know more about how it works. Having a professional manage the day-to-day affairs related to this aspect of financial diversification is highly recommended. A loan-out corporation is a separate legal entity, usually set up for an actor, recording artist, or public personality, to create corporate legal protection. When someone sets up a loan-out, they become an “employee” of their own corporation. Thus, the corporation lends the services of that individual to an employer, hence the term “loan-out.” A production company can save money hiring a loan-out corporation, because no taxes will have to be paid for that person.

Strategic Philanthropy

Strategic philanthropy refers to focusing charitable activities around a specific cause that in turn benefits a company’s respective business interests. Strategically leveraging this relationship in a way that serves both the business and the charitable organization without impugning the integrity of either should be undertaken with professional guidance. Strategic philanthropy is a great way to differentiate your company and can even be a core value for an entrepreneur.

Tax Planning

Knowing the tax code is not your responsibility, but knowing someone who does—and consulting with them on such matters—is. Matters concerning real estate, business structures, retirement plans, college savings plans, and more should be taken up with a skilled financial consultant who can consult with you in formulating an approach that aligns with your goals.

Real estate investments provide taxable losses and unrealized appreciation. But take heed: The winds of change are swirling around the estate tax code. While Bernie Sanders’ “For the 99.8% Act” (which is essentially an estate tax) may not stand a chance of passing in the current political climate, the principle of his argument is resonating in the general population, which necessitates the need for informed counsel when deciding what action is best for your financial situation.

Likewise, a review of your business structure is essential to assess that all tax-related matters are properly leveraged in accordance with current codes and standards. While the short-term priorities tend to spend more time in the spotlight during tax season, it’s important to remember long-term priorities such as retirement plans and college savings plans. Don’t neglect reviewing and analyzing your approaches in these areas to ensure they maximize your tax savings.

In summary, innovations—in tax software, accounting technology, and the integration of the two—prove that the fluidity of information will always be partnered in kind with our ability to process, analyze, and react to that information. Now that you know what you need to know, find someone who can help you best apply these priorities to your life situation.

[For more on Grobstein Teeple LLP’s approach to Business Consulting click here]

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