Control Your Private Wealth Management: Professional Financial Services to Meet Your Financial Goals
At Lee Hyder & Associates, we believe that everyone should have an investment philosophy that aligns with your private wealth management goals and objectives. Over the past 32 years of service to our clients, we find that most people don’t have an investment philosophy about how to design and manage their portfolios. Without one, people tend to make dangerous emotional decisions about their investments. Many investors haven’t really given much thought to where actual market returns come from and how best to achieve them.
Do you know how much volatility you could experience in your portfolio?
Do you know what your standard deviation is? And why knowing this is critical to being a successful investor?
Do you know how diversified your investments are? And what’s your specific asset allocation – and how did you pick it?
Do you know what all your fees are, especially the ones that don’t appear on your statements?
Do you have a systematic method for rebalancing your portfolio?
We found that many investors answer these questions “no.” We want to help you say “yes.” Otherwise, your future financial journey becomes a game of Russian Roulette. Today, there’s an abundance of “experts” on investment opportunities for any investor to listen to. A lot of this noise is far from accurate information. It’s self-serving or just wrong and certainly doesn’t speak to your specific financial goals and objectives.
Common sense tells you to avoid it, but what can you do?
Our goal is simple: We want to help you make well informed decisions that will help you achieve all your dreams. In our opinion, both estate planning and tax issues are areas that should be addressed as part of your overall plan. Although as a Registered Investment Advisor (RIA) we do not engage in the practice of law or accounting, we have a network of both CPA’s, tax professionals, and Estate planning attorneys who are able to sit with you as well to review these issues.
As a fiduciary financial advisor based in Akron, we must legally work in your best interest based on your personal information. We’re more than an investment manager or wealth manager. That’s the fiduciary standard. When we offer investment advice, it can’t be because it’s good for us or even only because it’s good for you. It has to be, in our professional opinion, the best fit for your situation. Those are our ethical standards that guide us with every client.
Accordingly, we work with all of our clients as they navigate the day-to-day as well as major life transitions such as death, disability, divorce and retirement to keep their decisions in line with their philosophy. Each area contributes to your overall private wealth management goals.
Private Wealth Management Core #1: Individual Retirement Account Planning
What is an IRA? How often do rules and regulations for IRAs change? What happens to your IRA when you pass away or what happens if I miss taking my RMD (required minimum distribution)?
If you think that the answers about IRAs should be straightforward, they aren’t, and you can thank the government for that, especially after the SECURE 2.0 Act of 2022 still causing confusion.
Individual Retirement Accounts (IRAs) and their post-tax sibling Roth IRAs have different rules depending upon how old you are and how old your heirs are.
I will work closely with you and your beneficiaries to educate everyone on the important rules regarding IRA accounts. When it comes to planning for the distribution of assets currently held in IRA accounts, there are a number of potential hazards that can cost you thousands in penalties and unnecessary taxation if you do it wrong.
For example, do you know when you have to start taking your Required Minimum Distributions (RMDs)? Do you know how much you need to take? If you make a mistake with your RMD, there’s up to a 50% penalty.
We will help you navigate these hazards and ensure your IRAs remain intact for you and your beneficiaries – and you avoid needless taxation and penalties.
To further understand other issues, you can read our content on the “Five Biggest Threats to a Secure Retirement.”
Private Wealth Management Core #2: Estate Planning
If you hear the word estate and think that it only applies to rich celebrities or ultra high net worth individuals, you’re not alone. But in fact, the costs of probate can significantly decrease the value of your property division to your beneficiaries or for philanthropy. Often the smaller sized estates feel the loss even more than larger estates. No matter what the size of your estate is, you want to chat with an estate planning attorney.
We don’t offer legal advice, but we will work with you and an estate planning attorney who can help you write a will, establish a revocable trust, appoint a trustee, and complete any and all legal documents necessary to pass your estate to your heirs with the least delay and financial loss possible. This planning sets the stage for the worry-free transfer of assets to your heirs while minimizing taxes and fees.
Have more questions about what an estate means to you and your family? We have a resource called “Ensuring Your Estate Plan Is In Order,” and we invite you to read it.
Private Wealth Management Core #3: Tax Plan
My father was a CPA, and he tried to teach me when I was young how it was possible for someone to owe less in taxes than what they thought they
owed.
It was a hard lesson for me. I thought that what you owed in taxes was black and white, free from interpretation. But I learned the lesson that 1+1 = 2, maybe (the inspiration for my 1st book, available to download at the link).
There’s more than one way to skin the tax cat. And that can mean a lower tax bill for you.
We can assist you in various areas of tax reducing strategies including the following: Social Security Income, capital gains, interest earning accounts, and the taxes owed by your beneficiaries upon the inheritance of your investments.
If you don’t take your entire financial picture into account, you could end up sacrificing a lot of your savings to Uncle Sam that you hoped would go to your beneficiaries (read more in my series the “Shocking Truth about Taxes & Retirement.”)
Private Wealth Management Core #4: Wealth Management and Retirement Planning
Today more than ever, the overused phrase of “Wealth Management and Retirement Planning” means so many different things to so many people.
From a technical definition, wealth management firms oversee your entire wealth plan. That includes all the core services we offer and other financial decisions: understanding real estate and the liability it may create, trusts, power of attorney, cash management, budgeting, creating tax free income, legacy planning, or other financial pieces. Wealth management services take in a wide view.
A retirement plan advisor focuses specifically on what to do in your later years. Many of us are used to the accumulation phase. We save up as much as we can. But how do you make the mental shift to successfully live without overspending and running out of money during your golden years?
To us at Lee Hyder and Associates, these services are more about coaching and being a guide than investment planning. It’s our duty to make sure you’re not alone to make critical future financial decisions at major times in your life. It means our relationship is not based simply on just “trust me” or “my advice,” or “do what I say.” It’s more about giving us an opportunity to help educate you in the world of Free Markets and all your investment options. This lets you become an equal partner in all your future investment decisions along the way. (Curious about more reasons to work with a financial advisor? Click the link to read a resource on why advice matters.)
Private Wealth Management Core #5: Investing in Yourself with Insurance
It’s important to not only invest for your dream future, but also to have contingencies for the unfortunate ‘what-ifs’ along the way.
After all, if you reach the age of 65, there’s a 70% chance you’ll need custodial care. How much care will YOU need?
It’s my job to help you face these difficult questions and come up with the right solution for you.
That might include insurance policies to cover long term care needs, unexpected death or disability, or terminal illness.
Together, we’ll assess the need for protection in the event of death, injury, poor health, and loss or reduction of income or property. A life insurance policy can be a smart way to protect your wealth plan for your beneficiaries. Our primary concern is focused on protecting you and loved ones from financial tragedy in the event of an unexpected situation.
Private Wealth Management Core #6: Navigating Periods of Transition
There are certain times of life that have a major financial impact that needs special attention. Retirement is one of them.
But there are two other, less discussed times.
Financial Planning for Divorced Women
Nobody gets married planning for a divorce, but it does happen. And sadly, statistics show a couple aged 65 and older is more likely to face a divorce case than other age groups. This is the age that you should be having a party after leaving work. Instead, many women are facing major financial decisions without their spouse for the first time in decades.
In my professional financial experience, women struggle more with this change than men. Many previously let their husbands choose the financial advisor and make many of the day to day investment decisions.
Even if women were responsible for investment decisions, the divorce settlement might be the first time they’ve had to make such a large decision with huge potential tax ramifications alone. Once you’re out of the divorce proceeding in court and said goodbye to your lawyer, you might not know what to do next with your divorce settlement. The divorce process was far from easy, but there’s so many more decisions now that must be made. When you’re already in or nearing retirement, you want to be sure you are confident about how to protect assets in divorce. And minimize your tax consequences with your divorce settlement.
On a personal note, after seeing my ex-wife struggle after our divorce concerning how to invest and manage the divorce settlement, it became my personal mission to help divorcees understand all their investment options. If you, like many, don’t know where to start, click here or the link above to find my book on financial planning for divorced women.
A 401k Advisor for Workers During Job Loss or Transition
If you’ve worked for more than one company, you probably have had more than one 401k (or 403b, 457…). You’ve been a member or a plan participant. Whatever the designation for your employer-sponsored plans, they follow some similar rules (ERISA – Employee Retirement Income Security Act of 1974).
So what do you do with them when you’ve left your company?
Do you leave them with the original plan sponsor, the company you left? Roll them over to your new employer? Or convert them to a rollover IRA?
There are a lot of options with difficult tax consequences and long term effects that you need to take into consideration.
We can work together to determine what is the best plan. Plus, if your current employer has self-directed brokerage accounts (SDBAs), also referred to as a “broker link,” within their 401k, you may have many more options. Reach out to your custodian to determine if your plan has an SDBA or Broker Link. If you do, you have some exciting investing opportunities that you may not be aware of. We may be able to help manage your current employer-sponsored 401k retirement plan. You can read more about 401k investment planning in our book “Corona Chaos: How to Be Sure that your 401k/IRA will Survive the Next Pandemic.”
Our Services Work Together for the Success of Your Private Wealth Management
Many “big name” investment management companies do a great job at investing your funds but might ignore other areas that private wealth managers take into consideration. You can have an insurance agent offer insurance policies without any discussion of tax strategy, or a portfolio manager chasing the next big mutual fund without considering your risk tolerance or future tax issue.
At Lee Hyder & Associates, on the other hand, we create partnerships that care about your entire financial picture. We coach you to develop your custom investment strategy and help you gain control over your IRAs, estate, taxes, wealth management, insurance plans, and whatever life transitions you’re facing. This is comprehensive financial planning.
We help you achieve peace of mind about your financial future by creating a comprehensive road map to guide you through your retirement years.
If you’d like to take advantage of a complimentary consultation, I invite you to schedule a call now. I know when I’m looking for a professional service like a fiduciary financial advisor near me, it helps to meet face to face. Our office is open in your search for the right financial advisor. Of course, we can chat by phone or Zoom if that’s more convenient. There’s no commitment on your part. Doesn’t your financial future deserve a second opinion? I look forward to talking soon.