old copy

Our background in finance and tax gives us a unique vantage point to attend to our client's goals and objectives. During a life transition, the stakes may be high, economic opportunities can be considerable, and yet the tax ramifications can significantly alter the future economic outcome.

In partnership with our affiliated firm, K.Q. Williams & Associates, P.C.,* we provide financial advice that takes into consideration the impact of a variety of taxes, which may include federal and state individual and corporate income taxes, estate and gift taxes, and payroll taxes.

Situations Where Tax Considerations Can Play an Important Role:

• How to take distributions from IRAs prior to 59½ without paying the 10% penalty in certain circumstances

• Calculating required minimum distributions from IRAs

• Increasing tax efficiency in a client’s portfolio by properly allocating asset classes among the various retirement and taxable accounts

• Determining the tax consequences of investment transactions

• Helping business owners decide on the appropriate company retirement plan to provide to employees and/or key employees

• How to minimize taxable income using tax-loss harvesting techniques

• Selecting financial solutions that are consistent with income and estate tax plans
• Evaluating the after-tax consequences of various financial decisions

Clients appreciate our ability to integrate their economic objectives with the related tax mitigating opportunities. This coordination enables us to have a significant impact on their financial lives, helping them to be proactive stewards of their wealth.

Just as important for many of our clients as our tax strategies and advice is our ability to prepare their tax returns and even represent them before the IRS should that ever be necessary. 

*K. Q. Williams & Associates, P.C. is not affiliated with Grove Point Financial, LLC.

RISK

Everyone perceives and assesses financial risk differently. With respect to their investments, we ask our clients whether they prefer managing the risk, transferring the risk, or a combination.

Managing the risk typically means diversifying among the various asset classes and then rebalancing periodically. On the other hand, transferring the risk generally involves an insurance company and focuses on seeking protection of the account balance or principal or the income it distributes. 

When an investor seeks guaranteed income by transferring the risk to an insurance company, essentially their retirement account can become a pension fund, which is an investment stream that can’t be outlived, also seeking protection against another form of risk – longevity risk. Of course, there are costs related to transferring risk, and they typically impact liquidity. 

There is no right or wrong answer to the question of managing or transferring investment risk as long as the investor understands what is available and at what cost and can therefore make an informed decision. We help our clients understand the details as well as the pros and cons of either approach relative to their specific situation.