Q&A

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Important Discourse

The information provided is not written or intended as specific tax or legal advice. PlanWise Advisors, its subsidiaries, employees and representatives are not authorized to give tax or legal advice.

Individuals are encouraged to seek advice from their own tax or legal

counsel.

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Agenda

1. Investment Planning Vs Financial Planning 2. Why Financial Planning

3. Who Needs Financial Planning 4. What’s in a Financial Plan

5. Financial Planning Process 6. Common Mistakes

7. On-Line Tools

8. Q&A

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Investment Planning vs Financial Planning

Investment planning is only one part of financial planning

Financial Planning

● Goal Setting

● Cash Flow & Budgeting

● Debt Management

● Wealth Management

● Retirement & Education Funding

● Employee and Executive Benefits

● Protection Planning (Health, Life, Disability & LTC Needs)

● Tax Planning

● Special Need Planning

● Business Continuation Planning

● Charitable Planning

Investment Planning

● Wealth Management

● Retirement Planning

● Education Funding

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Why Financial Planning?

Shifting of Employment Benefits

Reduced Benefits

● $100,000 Salary and Cafeteria Plan

● 401k Match / Cash Value Pension

● Subsidized Health Care Insurance

● Subsidized Dental & Vison

● Optional Long & Short Term D.I

● Life Insurance ($50K)

Optional Enrollment

● AD&D

● Supplemental Life

● Dependent Life (Spouse or Child/ren)

● Health Saving Acc / Flexible Spending Acc

● Dependent Care

● Accident & Critical Illness Insurance

● Legal Plan

Full Benefits

● $75,000 Salary and Full Benefits

● Full Pension

● Health Care

● Dental & Vison

● Long & Short Term Disability

● Life Insurance (1X or 2X Salary )

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Are All Financial Plans the Same?

Unique Situations

Single Parent

Executive Retiree

Marriage Equality Family with

Young Children

Special Needs Family

Foreign Citizen

In a Relationship

Blended Family

Entrepreneur

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What’s in a Financial Plan?

Cash Flow & Budgeting

● Establish Emergency Funds

● Determine Fix & Variable Expenses

● Create Systematic Saving Plan

Debt Management

● Managing Student Loan

● Prioritize Debts

● Debt Consolidation

● Allocate Resource for Debt Reduction

Goal Setting

● Setting Achievable Financial Goals

● Prioritize Them

● Earmark Funding and Resource

● Automate It

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What’s in a Financial Plan?

Retirement Planning

● Expectation and Assumptions

● IRA & 401K

● Roth IRA & Roth 401K

● Pension Plans & Qualified Plans

● Tax Deferred Annuities: Fix, Variable & Income

● Social Security

Education Funding

● Cost Analyzation

● UTMA or UGMA

● Coverdale Educational Saving

● 529 Plan

● Financial Aids

● Loan Forgiveness Program

Wealth Management

● Risk Tolerance

● Time Horizon

● Liquidity Needs

● Stocks

● Bonds

● Real Estate

● Mutual Funds

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What’s in a Financial Plan?

Employee or Executive Benefits

● Fringe Benefit

● Executive Bonus Plan

● Optional Benefit

Protection Planning

● Health Insurance

● Life Insurance

● Disability Insurance

● Long Term Care Insurance

● Liability Coverage

● Enough Coverage

● Right Coverage

● Customizing Plans

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What’s in a Financial Plan?

Tax Planning

Gift, Estate & GST Tax Planning

● Exercise Annual Gifting

● Utilized Lifetime Gifting

● Make Use of Step-Up Basis

● Using ILIT to Avoid Estate Tax

● Use Family Trust to Avoid GST

Income & Investment Tax Planning

● Explore Itemized Deductions

● Capitalize on Tax Incentives Programs

● Maximized Qualified Retirement Contributions

● Avoid Short Term Capital Gain

● Seek Qualified Dividends

● Invest in Tax Efficient Funds

● Tax Gain-Loss Harvesting

● Take advantage of Tax-Free, Tax Deferral or Tax Advantage

Investments

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What’s in a Financial Plan?

Estate Planning

Who needs one? Do you have one?

Who Gets What and When? (Right person, get the right amount, at the right time)

Important Issue

● Final Wishes or Bequest

● Child(ren) Custody

● Managing Inheritance

● Incapacitated

Inheritance

● By Title

● By Contract

● By Will (Probate )

Basic Documents

● Will

● Trust

● Health Proxy or Health POA

● Power of Attorney

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What’s in a Financial Plan?

Business Succession Plan

How to keep business running if you become … ill or disable, retirement, divorce or premature death?

Business Continuation Plans

● Entity Purchase Buy-Sell

● Cross Purchase Buy-Sell

● One Way Buy-Sell

● Wait and See Buy-Sell

● Trusted Cross Purchase Buy-Sell

● Key Person Life Insurance

Important Considerations

● Entity Type

● Ownership Structure

● Restricted Ownership

● Valuation & Projection

● Funding the Purchase

● Tax Consideration

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What’s in a Financial Plan?

Special Needs Planning

Entitled Benefits

● Social Security Retirement Income

● Medicare

● Social Security Disability Insurance (SSDI)

● Survivor Benefit

● Children’s Disability Benefit

Public Assistance

● Social Security Income (SSI)

● Medicaid

● Supplemental Nutrition Assistance Program (SNAP)

● Temporary Assistance for Needy Families (TANF)

● Children’s Health Insurance Program (CHIP)

Planning Steps & Tools

● Set up Guardianship / Alternatives to Guardianship

● Prepare Life Care Plan

● Cost Estimate

● Identify Financial Resources

● Create ABLE Account

● Utilized Special Need Trust

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What’s in a Financial Plan?

Legacy & Charitable Planning

Donor Advised Fund

● Immediate Deduction

● Growth Donation Tax- Free

● Support Charity Now or Over Time

Pooled Income Fund

● Partial Tax Deduction

● Receives Income

● Charity Receives

Donations at Death of Donor

Direct Charitable Gifts

● Immediate Deduction

● Charity Liquidate and Use

● Best with Appreciated Asset

Other Methods

● Create Charitable Foundation

● Beware of Operating &

Maintaining Cost

● Leverage Donations

with Insurance Policy

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Financial Planning Process

Step By Step Approach

Fact-Finding

Need Analysis

Recommendation Implementation

Review & Follow-

Up

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Common Mistakes

Avoid Simple Mistakes

Gifting Vs Inheriting

● Cost Basis Carry Over Vs Step Up

Outdated Vs Updated

● Reflecting Current Asset

● Family Situation

● Additional Child(ren)

● Update Beneficiary (Ex- Spouse )

Group Plan Vs Individual Plan

● Paying More (If healthy)

● Non-Transferable Unless Additional Underwriting

● Less Protection

● Non-customizable

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On-Line Tools

Legacy & Charitable Planning

Tools and Calculators | FINRA.org

Putnam 2020 Tax Rates, Schedule, Contribution Limits

MassMutual: Financial Wellness Articles & Tools Guardian: Investment 101

Guardian: Insurance 101

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Q&A

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Thank You!

Tony S Wong, CFP®, CFS®, CDFA®

136-17 39

^Th

Ave. Suite 8J Flushing, NY 11355

Mobile 646-598-1882 Office 718-878-5758

Financial Planning Investment Services

Tony S Wong, CFP®, CFS®, CDFA®

261 Madison Ave 27

^th

Floor NY, NY 10016

[email protected]