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Financial Planning for High Net-Worth Individuals

Posted on November 30th, 2018

Wealth is one of the ultimate goals of the “American Dream.” But often, once a high enough level of wealth is achieved, it can become too complicated for many people to adequately manage.

“But with ten million dollars, I’d be set for life!” you say. However, a simple Google search for ‘lottery curse’ demonstrates a very different trend, wherein even those who win amounts in the billions end up destitute and miserable in a matter of years.

High net-worth individuals face more complex issues than the average Joe, from taxes to investments and everything in between. They are not always equipped to tackle these issues on their own. The best course of action for an affluent individual is to hire a professional financial planner to help manage their wealth before it becomes a necessity.

Know What You Can Afford

It’s easy to look at a bank statement, see a large number in front of a dollar sign, and say “Yeah, I’ve got enough for this house.”

To paraphrase Jeff Goldblum’s Jurassic Park character, Ian Malcolm, “You were so preoccupied with whether or not you could, you never stopped to think if you should.”

There is a difference between what you can buy and what you can afford, and a financial professional can help you understand that difference.

Save Big on Taxes

For most individuals, taxes are just a thing that they have to do once a year. Over a certain financial threshold, though, an entirely different game is at play.

The higher your net-worth, the more you are taxed on your income, and the more important it is for year-round tax planning strategies that protect your wealth using methods such as:

  • Deduction
  • Tax Credits
  • Retirement Planning
  • Charitable Donations
  • Trusts
  • Gifts

A knowledgeable financial professional can help ensure that you pay only the taxes you owe.

Identify Risks

Often, investments are used by the affluent to sustain or grow their wealth, as they have more investment options than most. However, this can be a volatile game to play. If you aren’t an expert when it comes to investing, it’s all too easy to get lured in by an exotic investment without analyzing the risks involved.

Protect Yourself and Your Future

Don’t let yourself fall victim to the “lottery curse.” Protect yourself and your wealth by investing in the services of a financial advisor before the need arises.

Logan & Associates is a financial firm with nearly 40 years of experience helping individuals in Highland Park plan for their future and manage their wealth. Contact our office today to schedule a consultation with our team of experts.


How Effective Tax Planning Can Save You Money

Posted on October 26th, 2018

While minimizing your tax liability should be a high priority for you throughout the year, most individuals only think of this shortly before tax season arrives. Tax planning can help you make smart and knowledgeable decisions while reducing your financial liability throughout the year. Whether you own a business, or you simply earn enough to make your taxes considerable, tax preparation can help you minimize what you owe so you can keep more of your hard-earned money.

What is Tax Planning?

Tax planning is the process of planning your financial decisions and purchases, so they can best reduce your taxes owed. A financial professional, such as a CPA, can help you create a well-devised strategy using their extensive current tax law knowledge, tax code, and new tax regulations, while also leveraging this knowledge to your advantage.
By creating proactive tax saving strategies to help you reduce your post-tax income, you can significantly reduce your overall liability.

Helping Reduce Tax Liability While Saving You Money

When partnering with a tax professional, you work together to come up with several strategies to legally reduce your taxes liabilities, thus, in turn, allowing you to keep more money in your pocket.

For example:

Increase your tax deductions– taxable income is a key element in your overall tax situation. Taxable income is what is left over after you have reduced your adjustable gross income or (AGI) by your deductions and exemptions. These may include expenses for health care, state and local taxes, personal property taxes, mortgage interest, charitable gifts or donations, job expenses, and investment-related expenses.

The ideal strategies for reducing your taxable income is to document your deductions, with the three biggest deductions being mortgage interest, state taxes, and charitable gifts or donations.

Take advantage of tax credits– tax credits can reduce your tax liability. There are tax credits for college expenses, saving for retirement and for adopting children.

It is important to try and also avoid additional taxes. If at all possible, avoid early withdrawals from an IRA or 401K retirement plan. The amount you withdraw will become part of your taxable income, and there will be additional taxes to pay for the early withdrawal.

Increase your withholding– you can avoid owing at the end of the year by increasing your withholding. More money will be taken out of your paycheck throughout the year, but you will get a more significant refund when you file your taxes.

To receive the expert tax planning you deserve, contact Logan & Associates Ltd. today! Our Highland Park firm is experienced in helping individuals and small businesses alike achieve long-term tax success.


Benefits of Outsourced Accounting

Posted on September 28th, 2018

Businesses owners are under immense time and financial pressures. Many business owners struggle to fulfill accounting roles, especially when the day to day needs of running a company require most of their undivided attention. There is often little to no energy left to spend on accounting or bookkeeping responsibilities.

Eventually, in order to continue to run a thriving and successful business, you will need to have someone whose sole purpose is to help improve your accounting processes. Whether your company is just starting out or growing beyond your expectations, consider the benefits of outsourced accounting, especially if you do not yet have the financial means to hire and train an in-house accounting department.

Below we will discuss the many advantages outsourced accounting can offer, some of which include:

  • Saving Time – outsourcing your business’s bookkeeping needs frees up valuable time that can now be spent bettering the company. Back office functions can cause significant distraction from the day-to-day running of things and having your accounting done in-house can lead to conflicts of interests.
  • Saving Money – by outsourcing your bookkeeping operations, you save money on paying full-time or part-time wages and benefits to an employee. Further, you also save on lost productivity costs that come along with hiring employees onto the payroll. By outsourcing your bookkeeping, you only pay for what you need.
  • Access to the Powerful Accounting Systems – outsourced accounting allows for more access to the top tools in the industry. Most businesses that have an in-house accounting team cannot afford the expensive bookkeeping systems nor can they spend the time keeping up with all the ever-changing laws and regulations. Having access to these top tools not only keeps your records organized, but this also helps prep you for the possible chance of an audit from the IRS.
  • Experience on Your Side – by putting your books and records into the hands of a highly skilled team of accounting professionals who understand the best practices of the industry, outsourcing gives you a great way to have full confidence in your team.
  • Focusing on Your Core Business – it is beneficial to the growth of your business to outsource administrative tasks like bookkeeping and accounting to focus your energy and time on growing your business. You won’t get distracted by worrying about what is happening on the back-end of your business. By outsourcing, you can stay focused on your core processes and your clients.

Logan & Associates Ltd. provides outsourced accounting services throughout Highland Park and the surrounding communities. For more information about how we can help your business thrive contact us today!