Real estate can be a great investment, but if you don’t fully understand your numbers, it can be a disaster.

A couple that I met with recently, loved getting their monthly rental checks and keeping close tabs on the fluctuations of the housing market.

When the market started to rise, they began to sell off their rental properties, not thinking about the tax implications. The IRS greeted them with a tax bill for the depreciation they had taken over the last several years.

Their actual return ended up much smaller than they originally anticipated.

This is why having a financial plan is so important.

In order to reach your goals, you need to fully understand your numbers and the actual impact and risks.

If you don’t want to get burned by a short-sighted investment decision, here are 3 things you should do:

1. First, think logically. We all know how emotions can cloud judgment, so be careful with your investments. Look at the big picture to determine what is best for you and your family.
2. Secondly, know your numbers. Especially with real estate. In order for real estate to be a good investment, you need to understand tax implications and the actual returns your properties are producing.
3. And lastly, work with professionals. Don’t rely on your own expertise when investing in your future. Talk to a fiduciary financial advisor to get a second opinion and advice on big financial decisions.

My goal is to help all my clients nurture and grow their nest eggs thoughtfully, and with the big picture in mind.

Visit my website and schedule a short phone call with me.

I would love to join you on your financial journey.

The post Is Real Estate Actually a Good Investment? appeared first on AWM.

A lot of people think that receiving their inheritance will solve all of their problems.

The fact of the matter is, your inheritance could end up hurting you.

One of my dear friends, and clients, inherited a large sum of money before he was ready to manage it. He chose to ignore my advice and ended up wasting it all on expensive, big ticket items like cars, a boat, and an RV.

Statistics show that 1 in 3 heirs will spend their entire inheritance within the first 24 months.

These heirs often walk away with more debt, a bigger house than they need or can afford, and multiple large purchases they can’t maintain.

If you are expecting an inheritance or already received one, here are 3 things you need to do:

1. First, be honest about what you want this inheritance to do for you and your family.
2. Secondly, talk to your family. Share your vision with them and hear what your loved ones have to say. What are their hopes for your future?
3. Lastly, talk to professionals. A fiduciary financial advisor can help you design a plan, grow your money, and make it work for you.

The money your parents or even grandparents pass on to you can be a tremendous blessing. But, if you’re not careful, you could end up more miserable in the long run.

Don’t let this happen to you.

Let’s schedule a quick phone call.

The post Unpopular Opinion: Your Inheritance Is Not Your Friend appeared first on AWM.

People often think that their last will and testament is the best way to manage and distribute their estate after death.

But is that enough to protect your heirs? Or, is it going to give them access to a large, unrestricted amount of cash?

One of my clients, that I worked with for many years, was so excited to share her life savings with her only child. Against my recommendation, she only wrote a will, leaving everything to her daughter in a large sum. Unfortunately, this heir spent all of her inheritance within just a few months.

In fact, 1 in 3 heirs will spend their inheritance within the first two years.

More often than not, they are not equipped to handle so much money suddenly and responsibly.

So, what’s my advice?

1. First, talk to your heirs about money. Share your intentions for the inheritance and make your wishes clear.
2. Secondly, set up a trust. This will preserve their inheritance, limit their spending, and will help in teaching your kids money management.
3. Lastly, seek professional help. Talk to an estate planning professional, who will educate you on various options to help your kids preserve their future.

Remember, you are investing in yourself and in your family. How awesome is it to leave an impactful inheritance?

With the right planning, you can set your loved ones up for success. If you have questions, schedule a quick call with me.

Let’s bless your children and leave an enduring legacy.

The post How to Protect Your Children from Financial Disaster appeared first on AWM.

Losing a loved one is devastating and without the right help and support, dealing with that loss can be paralyzing.

One of my clients came to me knowing her husband would not survive his terminal illness. When she asked for my help, I could see in her eyes just how overwhelming her life had quickly become. She chose to take charge of her situation and surround herself with experts who would help in this time of loss and confusion.

Preparing for a tragedy like this is so difficult, but the risk of not having a plan is even greater.

Taking that first step is a huge part of the battle.

I encourage all my clients to do these three things:

1. First of all, breathe. Allow yourself time to grieve and don’t rush into any big decisions.
2. Secondly, grow your support group. Surround yourself with family and friends. You need a safe and healing environment to start gaining perspective.
3. Finally, talk with professionals. Not only can they give their objective opinion, a fiduciary advisor will watch out for your best interest when you’re not able to.

Like in the story I talked about, we were able to sit down with my client and her family. Together, we helped her to prioritize the things that needed to be taken care of immediately, made sure she understood her strategy going forward, and relieved the burden of making big financial decisions.

Our work is about providing peace of mind, time to grieve and heal, and making sure you are prepared for the future.

Let’s Talk

The post Surviving the Loss of a Loved One appeared first on AWM.

It is easy for business owners like us, to be focused on the day-to-day details and lose sight of the big picture.

Yet, if we don’t take a step back or plan for our own future, we will fail in retirement. This will affect us, our families, and even our clients.

Why does this happen?

Well, first of all, we often forget to solve our own issues.

And, we tend to take on too many projects.

We also struggle with letting go and delegating responsibilities.

If you are ready to fix that and get serious about financial freedom, I have a few recommendations for business owners:

1. First, prioritize your goals. Think about what is most important to you. What do you want your retirement to look like?
2. Next, design a plan. Map it out, write it down, hold yourself accountable. It is so important to have a plan that is measurable and achievable.
3. Lastly, work with professionals. Experienced professionals can look at your situation objectively and walk you through your options with a different perspective.

If you are in a situation like this, know that you are not alone.

You can make a change.

Spend some time on my website and schedule a free consultation with me.

Take the first step toward attaining the peace of mind that you deserve.

The post Why Do Business Owners Fail in Retirement? appeared first on AWM.

Sadly, one of America’s hottest growth industries is retired families in bankruptcy.

How did we get here?

According to AARP, close to half of retirees still carry debt into retirement.

But how is that possible?

You worked so hard and saved so much.

The fact of the matter is, only 23% of Americans have a retirement plan. That means only 1 in 4 have some kind of roadmap for their retirement journey.

If you don’t want to be part of these statistics, here are 3 things you can do:

1. First, get a strategic financial plan.  Understand where you are going.
2. Second, understand your budget. Be willing to take radical steps to adjust your lifestyle once you retire. The first 12 months of retirement are the hardest to adjust to. Preparing ahead of time can make this transition easier for you and your family.
3. And third, admit that it is possible to run out of money. Think through every possibility.

• • What if the market corrects?
  • What if you or your spouse are diagnosed with an illness?
  • What if your kids or grandkids need help paying for college?

So many variables can impact your retirement lifestyle.

You don’t have to settle for bankruptcy if you take action now.

It is time to invest in yourself and reap the rewards of your labor.

Request a free consultation.

Free Consultation

The post Are You Ready for Retirement? appeared first on AWM.

Which elevator would you choose if you were riding to the top of the Empire State Building? 

One with a single, thin cable?  Or one with several strong cables?

Obviously, we all want the safest option.

When it comes to investments though, many families latch their nest egg to a single cable.

It’s called real estate.

Real estate can be a great investment, but I have seen my clients’ retirement savings fail because they put all their eggs in one basket.

I had a recent conversation with one of my clients, who is now widowed. Years ago, she and her husband decided to invest all of their savings into real estate. When the husband passed, my client needed money to live on, but she wasn’t able to maintain a large home of her own in addition to rental properties.

As you can imagine, she lost a lot of money very quickly.

Could this happen to you?

If real estate is your main investment and you want to get back on the right track, these three recommendations can help get you started:

1. First, don’t let emotions override logic. People often forget that real estate prices go up and down; the value of your home is changing and you might not even know it. Some homeowners also forget how costly and time-consuming it can be to liquidate their real estate assets.
2. Secondly, understand your numbers. In order to make informed decisions, you need to know what your property is actually producing or costing.
3. And third, talk to a professional. A real estate agent can help you assess the market, however, a competent financial advisor can help you look at your family’s picture holistically.

I help my clients find multiple ways to nurture their nest egg and plan for their future. If you are overwhelmed with real estate and hold all of your assets in a single investment, I would love to help you.

Come visit our website and schedule a free consultation with me.

Let’s Talk

The post Do You Own Too Much Real Estate? appeared first on AWM.