Welcoming Accountability | Retirement Planning & Bunch Giving

Welcoming Accountability

By Evan Hewitt, CFP® | Financial Advisor

When we’re working with clients, especially young families, a significant part of the value they get comes from the simple practice of accountability. What they really need is someone to call them in three months and ask, “Hey, did you do the thing?”

It’s that simple sometimes. These parents are dealing with the tyranny of the urgent. A financial plan and good intentions are wonderful, but what makes the difference? Someone checking in to say “What did you commit to doing?”

This is especially true now. People are busier, more virtual, and more distracted. The role of a financial advisor isn’t just about technical knowledge anymore, though yes, you need that too. We’re here to help you align your actions with your values–to remind you of your commitments.

Because that’s often all it takes—just a reminder, an accountability partner for your personal finances. It’s that straightforward.

Retirement Planning: According to population statistics (see chart below), there are 11,500 people turning 65 years old every day in the U.S. In China, that number is 32,000, less in Japan and Germany. The point is, that there’s a growing need for retirement planning and savings. As we hit the middle of tax season with inevitable life changes on the horizon—particularly with pending retirements—we can help. Reach out to your service team for adjusted planning and ideas.

Bunch Giving/Boost Tax Savings: In 2017, tax laws changed, increasing the standard tax deduction. This meant that many taxpayers could no longer benefit from itemized deductions. The strategy called “bunching” allows you to still benefit from itemization. Rather than making yearly charitable contributions, combine two or more years of contributions into one tax year to increase your itemized deductions for that year above the applicable standard deduction. Then, for the off years, take the standard deduction.

Here’s how it could work:

Here’s an example of how it could be beneficial:

If interested, we can coordinate a strategy meeting with your tax accountant to discuss how this applies to your unique situation. If you need a referral to an accountant, please let us know, we know several really talented firms and CPA’s.

*The views expressed represent the opinions of Compass Ion Advisors, LLC, as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website at https://adviserinfo.sec.gov/firm/summary/166418. Past performance is not a guarantee of future results.