As you already saw on the home page, Maximum Advisory provides tax preparation, QuickBooks accounting, financial planning and related services so you can delegate those tasks. But what makes Maximum Advisory different from the competition? It’s the ability to listen and understand what you want, use technical knowledge to present options to you, and explain the options to you so you’re comfortable making an informed decision. We prefer to be proactive and work together throughout the year on tax planning and financial planning rather than being reactive and only communicating during tax season because we can’t consult you on the past.
Below are short examples of how our consultative approach could help you based on your circumstances. As you may imagine, each person’s situation is different, and the below are only limited, hypothetical examples.
Retirement is a big deal and there will be many moving parts. The overwhelming question pre-retirees have is: how much money do I need in retirement? The answer is based on how much income you can produce from your assets (investments, rentals, Social Security, etc.) and what your expenses are likely to be. We help by gathering your financial information, asking you questions to understand what is important to you, and then running a simulation to project how long your money will last. This helps answer other questions such as, “When do I start taking Social Security?” or “Which investments do I sell first?” There are many other questions and considerations, which is why a proactive approach should create a plan that is regularly reviewed and fine tuned to help you enjoy retirement.
At this stage, our comprehensive financial planning will touch on many subjects. The most common topics include budgeting, saving for children’s education expenses, saving and investing for retirement, investing in taxable accounts, and insurance planning (Maximum Advisory does not sell insurance products). Of course, the goal is to do it in a way to minimize the tax burden. Simple changes like owning interest producing investments (e.g. bonds) in tax deferred accounts (401k plan or IRA) and growth investments (e.g. stocks) in taxable accounts may save you hundreds or even thousands of dollars in taxes without changing the types of investments you’re making or the risk you’re taking.
Probably the two best methods of deferring income, and thereby tax, are retirement plans and health savings accounts (HSAs). A retirement plan can come in the form of a SIMPLE IRA, SEP IRA, 401k plan, profit sharing plan, cash balance plan, or potentially a combination of retirement plans. Maximum Advisory can help you pick the right plan and show you how much money you can save. There are other tax strategies and industry-specific deductions and credits that may help lower your tax liability.
Succession planning is not something that can be accomplished overnight. It takes careful planning and execution of a plan to get the best results. The first step is making the business marketable. Must haves include clean financial statements and tax returns so a potential buyer can perform financial due diligence. Of course, that’s something we can help with and it shouldn’t be an issue for our clients. Some operational work may also be necessary. For example, investing in technology or marketing and sales could be beneficial. We can asses your situation and suggest improvements, if necessary. And finally, there are tax considerations. How do we structure the sale? Will it be an asset sale or a stock sale? Will you receive payment at once or over time? Further, how will you take the proceeds of the sale and create an income stream? Can you sustain your lifestyle after the sale?
If the business hasn’t been set up yet, we can help you choose what entity type is most beneficial. There are pros and cons to LLCs, S-Corps, C-Corps, etc. Some of the considerations will be from a legal perspective and others from a tax perspective. We can then help you with your QuickBooks setup and periodic bookkeeping. This will help with the tax preparation process and well as your personal and business financial statements. Orderly tax returns and financial statements will be important as you grow and potentially require bank loans. Much like with established businesses, we can consult on operational efficiencies, marketing and sales strategies to help you grow.
Chances are, we didn’t describe your exact situation. That’s why we offer a free consultation to get to know you, your goals and obstacles, and to offer an approach that may help you. We look forward to meeting you!