DRW Financial
  • Home
  • Contact
  • Blog
  • ADV, Privacy, Disclaimers
  • Home
  • Contact
  • Blog
  • ADV, Privacy, Disclaimers
Search by typing & pressing enter

YOUR CART

3/23/2017

who needs investment management?

Some folks don't have any investments.  Others are in a situation where their circumstances dictate a very "keep it simple" approach.  But for much of the rest the population, there may be value in working alongside a professional investment manager in pursuit of an "optimal" investing approach for their specific needs.

we follow a fee-only, "fiduciary" approach

DRW Financial offers investment management solely on a fee-only basis and as a Registered Financial Adviser.  This means our only compensation comes from providing advice, not by commissions on transactions.  We believe this allows us to offer that advice with fewer conflicts of interest and to act as a fiduciary for our clients.

do you have...?

  • A retirement account left behind at an old employer (401k, 403b, 457, etc)?
  • A current retirement account that you set up and haven't looked at in a while?
    Or one invested in a way you aren't sure matches your needs?
  • Persistent issues with owing more taxes than you think reasonable?
  • Questions about the costs implicit in your current portfolio?
  • Worries about making your savings last through your retirement?
  • A desire to address inter-generational financial concerns?
  • A small business or self-employed income and want a more sophisticated approach to managing those finances?
These are a few examples of issues and areas where we have helped others improve their understanding and their approach to investing.  DRW Financial works with artists and engineers, physicians and educators, "millenials" and retirees.

are we a fit?

For a quick and "no cost" consultation to evaluate our "fit" for working with you on investment management, email [email protected]

3/23/2017

do you need financial planning?

"I don't have any finances to plan"

I hear this pretty regularly.  And I get the humor.  The reality is that there are valuable opportunities for most people (or families) in going through the process of financial planning.  And it is a process; done well, this process can lead to some very positive outcomes:
  • Clarity around finances enables people to be more intentional with their money choices
    • Do you ever feel like you "don't know where it all goes"?  Or worry that your spending doesn't match your values?  Planning can lead to greater transparency and understanding about your use of money
  • Clearly articulating financial goals and the obstacles to those allows actionable plans to address the obstacles and achieve the goals
    • ​​Thinking about retirement?  Planning can lead to knowing "your number" for a comfortable retirement, and actions to take to get there
    • Trying to think through whether to pay down debt or save more money?  Through planning, you can model multiple paths and see the benefits of each
  • Having a plan that ties together taxes, investments, estate planning needs, and budget work helps eliminate gaps and prevent unpleasant surprises down the road
  • Working from a plan uncovers opportunities to be more efficient in applying resources to financial needs
DRW Financial offers financial planning services on a flat fee basis.  This means that there is an agreement upfront to address a given scope and scale of planning, and a stated fee that covers a full calendar year of work and revisions to that plan.
We currently price these planning services between $500 and $2500, based on complexity of the case.  For more information or a "no cost" conversation about your situation, please email [email protected]

3/20/2017

estimated tax payments?

For many people, paying income taxes is something that happens "automatically" with every paycheck, via the mechanism of payroll deductions.  Line items like Social Security, Medicare, and an approximate amount of income taxes owed come out of each paycheck, and the process of completing and filing a tax return in April of the next year results in a reconciliation of that process: did the taxpayer pay "too much" or "too little" over the course of the year, and do they get a refund or a bill for taxes due?

for the self-employed, and...

But for folks who earn income "on the side" or are self-employed, payroll deductions are far less common.  For many people in this scenario, the typical approach is to pay "quarterly estimated taxes" via the IRS form 1040 ES.
The general idea here is that the taxpayer will figure out what they are likely to owe for the full year, and make four equal payments by the quarterly deadlines.  In reality, for many self-employed people their income does not come in conveniently steady streams, and accurately forecasting their full year income can be difficult.  For people in that situation, it may be necessary to make adjustments along the way to get the cumulative tax payments close to the right amount.

"gig economy", "side hustles", investments...

Even for people who get most of their regular income from a salary or W2 paycheck, there may be a need to consider making 1040 ES payments.  Drive Uber for extra cash?  Rent out a room on AirBnB?  Realize some significant investment gains?  All of these could potentially raise the tax liability for the year; if the amount paid in along the way is too low, there could be a penalty in addition to the eventual tax owed.

the next due date: april 18, 2017

If any of the above applies to your situation, get ready for the first 2017 quarterly due date in mid April.  If this date seems familiar, it's because that's the 2016 personal return filing deadline too!

3/20/2017

social security insights

If you belong to the portion of the population aged 60 or older, you have probably given a good bit of thought to Social Security; if you are much younger than that, the concept is probably not high on your current list of priorities.
But as a financial planner and investment adviser, I routinely find that the various benefits available via the Social Security Administration are an important and often misunderstood part of folk's financial picture.

it's your money, coming back

One thing to understand upfront is that almost everyone earning income in the United States pays a tax into the Social Security fund throughout their earning years.  Although Social Security benefits are sometimes described as "entitlements" in a way that suggests otherwise, the money that retirees get back comes primarily from their own contributions and those of their peers and the generations preceding / following them.

spouses and kids can benefit, too

Some of the benefits available via Social Security are available to spouses and children of the income earner who paid into the system.  For instance, in a two parent household if one worked outside the home for a wage and the other spent their working years raising kids and caring for the home, the one without an income history may also qualify for a retirement benefit based on the contributions of the working spouse.

check your benefits early and often

The Social Security Administration offers a couple of tools that are really very valuable for gaining a basic understanding of where a given person stands in relation to their potential benefits.
  • The "Retirement Estimator" does not require a log-in, but does use personal information to generate a current snapshot of assumed retirement income benefits at a few different ages, reflecting the potential value in waiting to begin taking that benefit
  • The "My Social Security" is a page that does require a log-in, and provides much more information than the estimator, including a history of wages and a measure on whether you have accumulated sufficient "credits" to qualify for Social Security benefits.
Given that there is no cost but meaningful benefits to having this information in hand, it is well worthwhile to take a moment now and regularly in the future to check in on your personal benefits.

    Author

    David R Wattenbarger, president of DRW Financial

    Archives

    June 2022
    May 2022
    April 2022
    January 2021
    November 2020
    May 2020
    March 2020
    February 2020
    November 2019
    August 2019
    September 2018
    February 2018
    December 2017
    November 2017
    March 2017
    February 2017
    October 2016
    September 2016
    January 2016
    November 2015
    September 2015
    June 2015
    March 2015
    December 2014
    October 2014
    September 2014
    August 2014
    June 2014
    May 2014
    April 2014
    January 2014
    December 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013

    Categories

    All Survey Video

    RSS Feed

Powered by Create your own unique website with customizable templates.