About Gregory Knight, CFP®
I am the founder of Engage Advising located in Oakland, California. My interest in financial planning dates back to my ten years living in Japan. I needed to learn about managing my own finances and investments while living abroad. I love working with folks who want to engage with their finances to improve their well-being. I live in the diverse community of Oakland, California with my husband, Randy, and it is a great place to live. We have a ton of wonderful restaurants, museums, and the East Bay Regional Parks. I love to hike, travel, fly fish and enjoy visiting the wine regions around California. Spending time volunteering for non-profits is also a favorite past time. You never know, you may see me pouring wine at a fundraiser, taking a course through a favorite non-profit or joining a group hike. Keep your eyes open!
It’s that time of year to cast an eye toward tax preparation. Most of us don’t like preparing for tax filing season as it is, and this year, there are many new changes to keep in mind with passage of the Tax Cut and Jobs Act 2017 (TCJA). Be prepared and do everything you can to make it easier on yourself. Here are a few ideas for you.
Start gathering your documents. If you have a box of receipts spend some time going through them and organizing and totaling the receipts by category. You should do this prior to giving your information to your accountant or tax preparer. It will save them time, and you money!
Work on your tax prep a little each week and it won’t be overwhelming. Create a specific space to organize your documents and work on your filing. If you start preparing now, the April deadline won’t be so stressful.
Sell stocks or funds that have lost value by December 31 if you need a loss to offset gains. You can apply this loss against gains to help reduce your overall tax burden. Check with your financial planner or accountant prior to making this move. Remember, this applies to taxable accounts, and not qualified, tax-deferred retirement accounts or IRAs.
Consider finalizing cash gifts to charities. Cash gifts to qualified charities are deductible in the year made. However, with the TCJA increase in the standard deduction to $12,000 for single filers, $24,000 for married filing joint, many people will no longer be itemizing. You may need to consider establishing a donor advised fund, or bunching your gifts and filing an itemized return every other year.
Keep in mind the new changes. Under the TCJA, as noted above, the standard deduction has dramatically increased. It is estimated that nearly 90% of US taxpayers will no longer itemize when they file. Here are a few other key changes: unreimbursed employee expenses, investment fees, tax preparation fees, employment related education expenses, moving expenses, job search expenses, theft, and many casualty losses are no longer deductible. State and local taxes (SALT) are now limited to $10,000. This may affect taxpayers in states with high local taxes or high property values or a combination of both.
On the plus side, long-term capital gains rates are retained at 0%, 15%, and 20%. The TCJA provides for a 20% qualified business income deduction (QBI). The QBI rules can get complicated pretty quickly, so talk to an adviser. Section 179 expensing rises from $500,000 to $1 million for small business. The Alternative Minimum Tax (AMT) is permanently repealed for corporations (but not for individuals).
Hire a financial planner! Your financial planner may not be able to help you with a lot of tax prep for 2018 at this time of the year, but getting you in financial shape in 2019 is something a financial planner can do. Set some goals and get started.
As an independent Certified Financial Planner™, I can help you get organized and create a plan for a less stressful filing season. Better yet, we can start working on your 2019 goals. Contact me and let’s get started! #talktometuesday #education #Hireaplanner #tax #taxfiling #stress #stressfree
People often question whether hiring a financial planner is worth the money. Studies by Vanguard and Russell Investments and a recent article in AARP The Magazine say yes! For example, in AARP The Magazine in the October/November 2018 print edition, AARP provided guidance on selecting a financial planner even if you are not wealthy.
AARP The Magazine, Oct/Nov 2018, pg. 24 (print edition). All represented data provided by AARP and not by Engage Advising.
AARP The Magazine also included a handy graph reflecting the potential extra money earned by those who hire a comprehensive planner. Please note this is AARP The Magazine’s sidebar and data and not that of Engage Advising. For example, on page 24 of the October/November 2018 print edition, AARP claims working with a financial planner could possibly in the instance of a medium income individual increase overall net worth by $83,000 (see graphic).
So, what should you look for in hiring a comprehensive financial planner? Start with asking for recommendations. Your friend’s financial planner may not be a good fit for you, but that adviser may know someone who is a great fit. You can also search in your area by zip code and/or specialty on sites like NAPFA and XY Planning Network.
Check qualifications. The CFP® mark stands for Certified Financial Planner™ and is considered the gold standard for financial planners. You can visit letsmakeaplan.org to learn more about the designation and to look for a financial planner in your area that is in good standing.
Be sure to question your potential financial planner about fees and compensation. You have a right to know what you are paying, when you are paying, and what you will receive for your fees paid. Today, there are many billing structures offered to meet the needs of clients. Some financial planners are fee-only, others will work with you on an hourly basis, and some will setup a monthly plan. There could also be combinations of these fee arrangements depending on your personal circumstances and needs.
You don’t have to go it alone for financial advice. As an independent Certified Financial Planner™, I can help you decide how to plan for your goals, investments, or retirement, or how to start enjoying your retirement savings. No matter where you are in life, a CFP® professional can help you create an action plan for today and tomorrow. Contact me and let’s get started! #talktometuesday #education #Hireaplanner #retirement #income #drawdown #IRA #401k #CFPPro #LetsMakeAPlan #AARP #AARPTheMagazine #DIY
Clients often feel that they face a conundrum: save for retirement, or save for their children’s education. Many believe that saving for their children’s education is an absolute must, a responsibility. For many families, education is a top priority and they want the best for their children. For many parents who struggled to pay for their own education, this impulse can be even stronger. There’s nothing wrong with this desire to save and education is invaluable. So, what do you do; which takes priority?
When addressing this conundrum, ask yourself one simple question; can you borrow to fund your retirement? The answer is no. Your children, if necessary, can borrow for their education and as challenging as it is, they have years to repay. You cannot borrow for your retirement and then spend years paying it back. There just simply isn’t the time or income stream in retirement and nowhere to borrow from. Retirement savings simply has to take priority.
That’s not to say you cannot help your children. Keep in mind that saving for your own future and a secure retirement is helping your children. If you save sufficiently for your own needs, you will not need to rely on your children in retirement. This will be beneficial for you and for them. If you have saved sufficiently for retirement, you may have enough money to help pay off student loan debt for your child, or possibly gift them money for a home purchase. Having ample savings in retirement is better than losing out on investment returns and years of compounding by funding your child’s education at the expense of your own security, comfort, and peace of mind.
Enjoy your Golden Years!
If you are going to fund education for your children, make sure you have met your retirement funding goals first. Be sure to max out that 401(k) plan at work, save in Roth account, save in a taxable account, and have your cash emergency fund in place. Thereafter, if you have the extra cash flow, go ahead and calculate what amount you can allocate to your children’s education fund. Just be sure you prioritize your retirement savings.
If you need budgeting help, retirement savings, debt reduction, or an education savings plan, let me know. As an independent Certified Financial Planner™, I can help you make decisions and layout a plan to reach your goals. Contact me and let’s get started! #talktometuesday #education #Hireaplanner #retirement #education #529 #income #debt #savings #CFPPro #moneyhabits
- Equity Recipients (RS/RSU SOP ESPP)
- Gen X
Ways Advisor Charges
- Monthly Fee
- Flat Fee
- Assets Under Management
- Monthly: $699 setup & then $149+ p/mo.
- Hourly: $125-$185
- Flat Fee (1-time comprehensive plan): $2,750
- AUM: 0.95%