Services at StepWise Financial

Investments can play a key role in your financial plan, and a mix of registered and non-registered savings can help you pursue your goals. Our investment and wealth management services always start with your goals and objectives, timelines, and risk-tolerance analysis. And because we are independent, the instruments and investments that we have access to are nearly limitless. Wealth doesn’t just happen, it’s grown with diligence, persistence and hard work. We help our clients with their investments and portfolios, and we also can help business owners establish and manage SEP and/or SIMPLE IRA plans for themselves and their employees.

Asset allocation is the process of selecting a mix of asset classes that closely matches an investor’s financial profile in terms of their investment preferences and tolerance for risk while providing enough non-correlated diversification to help protect against market downturns. At StepWise Financial, we provide you with model allocations and add a layer of account protection for you by using third-party investment platforms like Schwab.

Insurance is essential to any comprehensive financial plan. It can protect you and your family from undue financial hardship as a consequence of challenging life events, including unexpected loss of life, disability, or the potential need for long-term care. And insurance can still provide one of the most tax-advantaged methods to transfer wealth when it comes to estate planning. Insurance has come a long way in the last decade. As a completely independent firm, we have access to nearly every carrier and every kind of insurance, and we compare features and premium prices so that we know we’re making recommendations based on solid numbers. We read the fine print when it comes to policy terms and conditions.

Retirement planning today has taken on many new dimensions that never had to be considered by earlier generations, as it can now last from 20-40 years due to longer lifespans. In retirement, you will no longer be in the workforce with a regular paycheck coming in. Instead, you will need to find ways to generate lasting income in a manner which is both tax-advantaged and won’t cause your nest egg to empty out too soon. And you’ll need to navigate Social Security and Medicare in the process. If you have a lot saved in a traditional account like a 401(k), remember you will owe ordinary income taxes on all that money, and you will have to withdraw it even if you don’t need it. RMDs (required minimum distributions) will be mandated annually by the IRS beginning at age 73.

It’s important to create a written, holistic financial plan as a roadmap and guide. In fact, managing your finances is an important component to any financial plan, and money management strategies help you manage your savings on a daily basis. Our financial planning methodology takes into account your income, your budget and expenses, your short- and long-term goals, paying off debt, your timeline to retirement, your potential risks, your retirement goals, and much more. Taking a step-by-step approach, the financial plan we create with you considers your entire life, and it changes through time as your needs and family dynamics change.

While we do not do taxes, we do work alongside CPAs and tax professionals to help you plan for a tax-advantaged retirement, and we help you find ways to pass along a tax-advantaged legacy. When you reach age 73, if you have a large amount of tax-deferred retirement savings, you must begin withdrawing a certain percentage of money defined by the IRS every year by December 31 without a grace period to April 15. You will owe ordinary income taxes on these amounts, so it’s important to plan ahead to see if there are ways to mitigate taxes for the long-term—before you retire.

Estate planning is essential for everyone, and we can provide tax- advantaged strategies in conjunction with your estate attorney. For those who are business owners, we may even recommend advanced planning encompassing trusts that can help your entire family as well as the continuation of the business you have worked so hard to build. And remember, even if you are not a business owner, tax-advantaged estate planning is critical. As an example, if your non-spousal heirs inherit taxable accounts like a traditional 401(k), they will have to take RMDs, and empty the accounts and pay taxes within 10 years of inheritance, which can throw them into much higher brackets and leave them with less than you might have hoped. Let’s take a look at the multigenerational picture, and your financial and family goals, together.

Everyone has their own reason for gifting their assets or a portion of their income to charitable organizations. Some find comfort in helping others who are less fortunate, while others simply want to share their good fortune. We believe both are important, and furthermore, there are also financial incentives for you to give generously to causes you are passionate about. If it makes sense for you, RMDs (required minimum distributions) can sometimes be gifted to charities if you don’t need the money, and if it makes sense as part of your retirement plan. Let’s talk about charitable giving strategies.