Tax-smart Financial Advice
Your Financial Building Blocks
Our approach to helping you fund your financial goals takes all the phases in life into consideration. We apply three main principles to your financial plan:
ADPLSM
— The Foundation
There are four building blocks that are fundamental to a sound financial and tax plan — we call these blocks ADPL: Accumulation, Distribution, Protection and Legacy. While the blocks are important on their own, they are also linked together. When the four blocks are in place, you can build wealth, maintain it for a secure retirement, protect against losing it due to life events, and transfer it as part of estate planning. In our planning process, we take each block one step at a time, to build a long-term plan that will be reviewed and refined periodically as your situation changes.
Asset Allocation — Balancing Risk and
Return Every investor's financial situation is unique, with different risk
tolerance levels. It's important to compare the risks and returns of your various
options, and allocate your investments properly to achieve your goals.
Source: SunGard/Frontier *International investments involve special risks, such as currency fluctuations and political instability, but may help offset the risks associated with volatile periods in domestic markets.
A diversified portfolio can take many shapes and forms. Typically, your portfolio would have exposure to a variety of asset classes, and often subsets within those classes.
Diversification is one of the most important considerations in developing your portfolio. It can help you weather market conditions, and can be an effective long-term strategy for minimizing risk while maximizing opportunity. You need to consider questions such as:
We'll review your answers to these questions and, working together; tailor an investment strategy to your specific situation. On the surface, diversification may seem like a simple strategy. But, there are many ways to diversify across several different asset classes. With the array of investments to choose from, a well-crafted asset allocation strategy can help determine the right mix of diversified assets for your portfolio.
Tax-efficient Investing
Questions about your financial plan? Contact an H&R Block financial advisor today.
Our approach to helping you fund your financial goals takes all the phases in life into consideration. We apply three main principles to your financial plan:
ADPLSM
— The FoundationThere are four building blocks that are fundamental to a sound financial and tax plan — we call these blocks ADPL: Accumulation, Distribution, Protection and Legacy. While the blocks are important on their own, they are also linked together. When the four blocks are in place, you can build wealth, maintain it for a secure retirement, protect against losing it due to life events, and transfer it as part of estate planning. In our planning process, we take each block one step at a time, to build a long-term plan that will be reviewed and refined periodically as your situation changes.
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Accumulation - Saving and investing to build wealth.
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Distribution - Accessing your retirement assets while minimizing your tax burden.
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Protection - Protecting your lifestyle and loved ones.
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Legacy - Providing for loved ones and gifting money to charities.
Asset Allocation — Balancing Risk and
Return Every investor's financial situation is unique, with different risk
tolerance levels. It's important to compare the risks and returns of your various
options, and allocate your investments properly to achieve your goals.Source: SunGard/Frontier *International investments involve special risks, such as currency fluctuations and political instability, but may help offset the risks associated with volatile periods in domestic markets.
A diversified portfolio can take many shapes and forms. Typically, your portfolio would have exposure to a variety of asset classes, and often subsets within those classes.
Diversification is one of the most important considerations in developing your portfolio. It can help you weather market conditions, and can be an effective long-term strategy for minimizing risk while maximizing opportunity. You need to consider questions such as:
-
What are my goals - Retirement? Education? Buying a home?
-
What is my income bracket?
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What is my time frame to reach this goal?
-
How much market volatility can I tolerate?
We'll review your answers to these questions and, working together; tailor an investment strategy to your specific situation. On the surface, diversification may seem like a simple strategy. But, there are many ways to diversify across several different asset classes. With the array of investments to choose from, a well-crafted asset allocation strategy can help determine the right mix of diversified assets for your portfolio.
Tax-efficient Investing
We approach planning from a net tax perspective by considering the tax impact on
accumulating assets and distributions, or the transfer of wealth. When investing,
your goal should be to have control over your money no matter what happens to your
taxes. That's why the Tax Control Triangle is helpful in assessing the tax efficiency
of an investor's portfolio.
It's a given that tax rates and tax brackets for most investors will change over
time. And we can usually count on new tax laws and revisions. When you put all of
your investments into one tax category, you may not be taking advantage of certain
tax changes that could benefit you financially. Investing in more than one tax category
may offer you more control over the taxes you currently pay, while providing you
with the potential to have more money to invest.
Questions about your financial plan? Contact an H&R Block financial advisor today.