Financial Planning

 

What We Do  -  Christian Stewardship

 

ElderAdo Financial provides financial planning services including asset management, retirement accumulation and estate planning on a fee-only basis. The firm's objective is to deliver customized financial advice that is unequaled in terms of quality from which the client can derive maximum value.

ElderAdo Financial offers customized asset management services matching the client's return and risk requirements to a portfolio utilizing multiple investment asset classes, investment styles and portfolio managers which is designed, monitored and managed to achieve long-term investment objectives.

 

As a financial fiduciary, our goal is to consistently think and act in the complete best interest of clients in all the services we provide. That is why we have taken a sworn oath to accept no commissions or fees that might influence our choices. We understand that we are only successful through the success of our clients.

 

Our Services Include:

  • Personal Values Based Counseling To help ensure that your heart and wallet are on the same track, we coach you through a process to help you set your priorities and understand what is most important to you in your life.
  • Professional Specialized Advice On issues of sudden wealth, wealth management, socially responsible investing, retirement asset transfers and retirement distributions. These areas often require highly specialized training and planning due to their complexity and consequences. Few professionals have the depth of knowledge in taxation, estate planning, investments and coaching skills to successfully guide clients to implement smart choices about wealth and wealth transfer in the way that we do.
  • Money Management As a vital component to sound financial planning, we provide complete money management services to ensure that your plan is implemented and maintained in harmony with your overall financial plan. We take the worry out of our clients' finances by ensuring that their portfolios stay wisely and professionally managed to meet their short and long-term goals.
  • Comprehensive Financial Planning that takes into consideration all of a client’s needs and goals, and is regularly reviewed and updated. We can assist you in financial planning for all stages of your life. Including employment compensation, Investments, Tax Planning and Estate Planning.

 

Private Family & Business Wealth Management

Private Family Wealth Management can help you provide for a comfortable, satisfied, worry-free retirement, efficient transfer of assets to the next generation, a satisfactory level of income for your comfortable lifestyle, and help answer the important question "Will I run out of money?" At ElderAdo Financial, Private Family & Business Wealth Management encompasses four investment avenues depending on what outcome you desire. They are as follows:

 Lifetime Wealth Strategies Investment Planning

Develop a strategic plan for you to follow as you work toward meeting your investment or retirement goals.

 

Portfolio Management Advisory Service

Develop a strategic investment plan based on your goals

Analyze and select investment assets

Provides personalized attention and service to your investments goals

Provides for ongoing period review of those investment goals

 

Worry-Free Lifestyle Retirement Planning

Our advisors help answer these key questions:

How much is enough?

Will I outlive my money?

What will my retirement look like?

How much my can I live on?

 

Lifetime with Significance Wealth Transition Planning

Deep planning that tackles many financial challenges:

How do I save on estate taxes, gift taxes, and income taxes?

How much will go to the designated beneficiary?

Will taxes destroy the assets I have grown?

Will the family business have to be sold?

How do I give to my favorite charity?

What financial team do I need to get this accomplished?

 

Retirement Planning

Retirement planning involves identifying your wants and needs, developing a plan to achieve them, acting on your plan and continually reviewing and revising your plan as you approach retirement. Like most areas of financial planning, retirement planning begins with defining your goals.

Ask yourself these questions: 1. At what age do I plan to retire? 2. Will I start a new part-time career during retirement or never work again? 3. How long do I think I'll need my money to last? 4. How much money will it take to support my household? 5. How do I envision my lifestyle during retirement? Will I spend my days on the golf course, world travel or pursue a hobby? 6. Where will I live when I retire?

Once you know where you're going, it's time to figure out how to get there.

Through retirement planning, you'll answer questions like: 1. What provisions do I need to make to take care of my health care during retirement years? 2. How much money do I need to save to meet my goals? 3. How should I invest to maximize my retirement savings? 4. How will my assets, liabilities, expenses and savings change during retirement?

  

Planning for your future 

Saving and planning early for your retirement years will reap rewards in helping you to be prepared and secure. Thanks to the power of compounding, early planning means that just a small investment each year can create a portfolio large enough to meet your needs later in life and allow room for charitable works in God's name.

Finding a good guide for managing the money that God has blessed you with can help you stay on course to meeting your goals. Start a conversation with us today to see if we can help.   

Retirement Planning

The face of retirement is changing and requires a vigilent plan that takes into account the current strain on our employer retirement plans and the shortfalls of Social Security. To be a good steward of the money that God has entrusted you with takes action to ensure you stay on a stable path.

 

 

 

Early  Retirement

 

Planning and saving for retirement is a major financial issue for most of us. Many of us spend years building our nest egg, with the goal of stepping into retirement financially and psychologically prepared. However, sometimes retirement arrives earlier than we plan. That’s when we can help.

 

found that among people who retired early (before age 65), 43 percent retired earlier than they planned. Individuals may retire early because they come into sudden money such as lottery winnings or an inheritance. But many in the survey cited “negative” reasons for retiring early, including health, disability, being laid off or having to take care of ill family members. University of California researchers found that half of Californians retiring before age 50 cited health reasons for the early retirement.

 

Whatever the reason for an unplanned early retirement, you’ll need to plan carefully to make adjustments. First, don’t make any immediate, rash financial decisions. A wrong decision can cause financial problems for the rest of your life. For example, if you’re retiring early because you’ve suddenly come into money, don’t make major investment decisions right away. Put the money into a bank or mutual fund money market, and leave it alone until you have time to think about what it can really provide for you. If you’ve suddenly left your job because of a layoff or because you have to take care of a sick family member, you may want to immediately do a little financial belt tightening, but don’t make other immediate major financial decisions.

 

Revise your financial plan, or if you don’t have one, create one. This is the single most important act you can do to give yourself control of your new retirement. This is especially critical if you’ve been forced to retire for “negative” reasons. You’ll want to review the entire gamut: income and outflow, insurance, estate planning, investments, possible government assistance and so on.

 

Maintaining control of expenses is a critical component for any retiree, since income tends to be more limited. But controlling expenses is especially critical for unplanned retirements. For one thing, early retirees typically face major expenses that would often be gone in normal retirement: mortgage payments, for example, or college expenses. They also may start paying out of pocket for lost employee benefits. Early retirement to care for an ill relative will probably result in some money out-of-pocket for that relative. A budget becomes absolutely vital to keeping expenses within line of income.

 

Retiring early means more years of retirement to pay for. This is a double whammy because you not only have more years to pay for (unless your life expectancy is reduced due to poor health), but you end up with fewer working years to fund the retirement. Your later work years are usually when you earn your most income and can best sock away for retirement. Traditional pension plans also are skewed toward late-career earnings, which you may now miss out on. You’ll also have more years for inflation to erode the value of your investments. Again, controlling expenses becomes vital.

 

Investments present another difficult challenge. On the one hand, you have a longer retirement to fund than originally planned. Investing more aggressively can help make up for some of that shortfall. On the other hand, if you’ve retired earlier than planned for negative reasons such as a loss of job or health, you’re probably going to need immediate cash flow from your investments to help cover expenses, and that means investing less aggressively. Review with an investment advisor how best to go about this. It may require adjusting your portfolio so that part of it generates more income while the other part grows more aggressively through non-income producing investments.

 

Retiring early means more years until you qualify for Medicare. Be sure you are covered at least by a major medical policy, even if finances are tight.

 

Address the psychological implications of early retirement. Even for planned retirements, leaving the workforce can be a difficult emotional adjustment. It’s tougher with an unplanned early retirement because you haven’t had time to mentally prepare for it.

 

That’s why it’s important to take a big breath, sit down and think through your new circumstances. We offer full-service financial planning. Whether for positive or negative reasons, an unplanned retirement needs to be planned.

 

 

Comfortable Retirement

 

Although most American workers are confident they will have enough money to retire comfortably, that confidence appears to be waning.

 

A recent survey by the Employee Benefit Research Institute found that only 24 percent of workers said they were confident about having enough money to live comfortably throughout their retirement years. 

 

Retirement confidence does appear to be on the rise, possibly due to the slowly recovering economy. Are you confident that you will have enough money to retire comfortably? It may be time to review your retirement savings plan to ensure you are on track.

 

The Retirement Paradigm Change

Americans are retiring younger and enjoying it more than ever before. The Boomers are heading for retirement at a record pace. Behind them are the Generation Xers. Both will profoundly change what it means to be retired.

 

A Wall Street Journal/NBC News poll recently provided the latest evidence of the changing face of retirement in the U.S. Among the poll's findings, fewer than 10% of future retirees intend to live in a nursing home. This varies significantly from previous generations who helped fill 20,000 nursing facilities with over 1 million retirees in the last decade. No, this new breed of retirees isn't planning to let life pass them by.

 

Nearly 70% of future retirees plan to work after they retire, a figure up sharply from current estimates of working retirees. American Express Retirement Services reports that about 24% of today's retiree income comes from part time employment. As tomorrow's retirees retire younger and healthier, employment income after retirement is likely to rise.

 

It's not just greed driving the desire to continue to work. More than 2/3 of the respondents in the WSJ poll indicated they plan to volunteer for public service or community organizations. Almost 30% of non-retired adults fear either boredom or alienation after retirement, and they plan to get involved in their communities combat these fears.

 

So what about Social Security? It turns out today's retirees rely on it, and tomorrow's retirees will need it, although perhaps less than today. Only 10% of current retirees cited financial worries as a significant disappointment in retirement. This compares to a full 30% of non-retired Americans scared about the financial implications of retirement. About 60% of those polled for the WSJ study indicated that Social Security was highly important (ranked 7 or higher on a scale of 1 to 10). 31% indicated that Social Security will make up all or most of their retirement income. Still, the enormous popularity of 401(k) and other retirement programs over the past several years will enable a growing number of future retirees to rely less on Social Security than their predecessors.

 

Contrast this reliance on Social Security with the view held by a majority of Generation Xers who would rather opt out of Social Security and take retirement into their own hands. A full 36% of Gen Xers in the WSJ poll don't expect Social Security to be around when they retire anyway. And 46% of them will retire before age 60, compared to less than 20% of Americans who retire pre-60 today. As life expectancy grows, and retirement ages drop, retirement becomes more appealing all the time.

 

Yes, the face of retirement is changing. At the heart of each generation's plans is financial security. Maybe all this talk about retirement planning isn't such a bad idea. The sooner you shore up your retirement savings, the sooner you can join the boomers and the Xers working a little, volunteering a little, and living the good life after retirement.

 

Please contact us with any questions you have:

Investment Management

Investing has become extremely complex, and we believe that successful investing requires adherence to a series of well defined principles. Our experience has helped us to define our investment philosophy.

  • Use money managers that have a track record of consistency.

  • Create an investor profile based upon your answers on our questionnaires.
  • Actively manage the accounts to take advantage of market changes.
  • Measure and monitor the portfolio regularly against the investor profile.
  • Focus on the big picture of the client's goals.
  • Stick to the plan and periodically monitor changes in the client's life.

In this world of complex and diverse choices, our team can simplify those choices and help you choose what is best for your unique situation.

Our Process

Our investment management process is consistent, careful, complete and ongoing. Based on a series of five steps, this process is designed to enhance our clients' returns and reduce their investment risk

  1. We develop an individual investment profile based on your particular time horizon, the effect of inflation on your financial goals, and your attitude about investment risk.  
  2. We recommend a personalized asset allocation policy based on the needs and objectives identified in Step 1. Our objective will be to maximize your returns in line with your risk tolerance, through careful diversification of your investment portfolio.  
  3. We will implement an asset allocation policy by investing in a diversified portfolio of no-load mutual funds, individual stocks, bonds (both taxable and tax-free), certificates of deposit, and other investments.  
  4. We will carefully monitor both the return and the risk of each investment in your portfolio, making sure that each one continues to serve your overall investment profile. When necessary, we will recommend rebalancing or repositioning of your assets.  
  5. We will provide periodic reports to you including information on asset values, realized and unrealized gains and losses, dividends, interest and all other transactions. Most important, we will tell you the actual performance of your portfolio in clear, understandable rate of return reports.

Charitable Giving

How can you give more and save more at the same time?

 

Now he who supplies seed to the sower and bread for food will also supply and increase your store of seed and will enlarge the harvest of your righteousness. You will be enriched in every way so that you can be generous on every occasion, and through us your generosity will result in thanksgiving to God.

2 Corinthians 9: 10-11

Teach those who are rich in this world not to be proud and not to trust in their money, which is so unreliable. Their trust should be in God, who richly gives us all we need for our enjoyment. Tell them to use their money to do good. They should be rich in good works and generous to those in need, always being ready to share with others. By doing this they will be storing up their treasure as a good foundation for the future so that they may experience true life.

1 Timothy 6: 17-19

 

Charitable Planning & Philanthropic Counsel

We are clearly called to use the resources we have been entrusted with to share God's love with others. Many families include giving as part of their financial plan. Thoughtful planning in this area can lead to more meaningful giving and a more generous life.

We can help you with a plan to bring your family together as you build the Kingdom. Our mission is to support clients in their stewardship and in realizing their full charitable potential. Even if you have already implemented charitable giving in your estate and financial plan, we can offer a second opinion to determine if you could be more effective and efficient in your Kingdom focused planning.

 

Education & Qualifications for Charitable Planning

The world of charitable planning, planned giving, and philanthropy is constantly changing. The federal government offers incentives for giving by reducing tax burdens for generous families but it can be a challenge to keep up with legilsative and economic changes that effect planning in this area. Our advisors are committed to educating themselves in this specialized area to offer up to date and accurate counsel to clients. They have completed education including the Chartered Advisor in Philanthropy® designation. Our advisors seek to stay at the forefront of charitable planning through continuing education in the area of generosity and charitable and philanthropic planning. They are members of The International Association of Advisors in Philanthropy. They also engage in education in Biblical stewardship and generosity as members of Kingdom Advisors, an association of Christian financial professionals.

 

The Cash Only Giver

There is this great little bakery that my family loves. I couldn't even tell you what it's called because we refer to it as "The Cash Only Bakery." I was quite embarrassed when I offered to take good friends to that bakery...my treat! We ordered our food and I pulled out my debit card. The woman behind the counter seemed a bit weary saying it again as she tapped on the sign taped to the counter that said "CASH ONLY." I don't frequently carry cash and my friends were kind enough to cover the bill.

According to the most recent data from the U.S. Census Bureau, the average American family has about 11% of their total assets in cash (this includes CDs, money markets, savings, cash and checking). Everything else is in the form of noncash assets...our stuff. Investments in publicly traded stock are a big item and investments by business owners in their own companies is at the top of the chart as well. Real Estate is way up on the list too. These statistics represent all Americans and Christian givers are no exception. When you really look at it, Christians in America have way more "stuff" than they have cash. Christians are charitable and many give to their church as well as ministries they care about. When we are asked to give, we generally associate that with cash giving or writing a check.

Look at the Bible. There are certainly examples of folks giving money, but there are also very meaningful gifts in the Bible that were not cash. We see the example of Abel giving the best of his crops. In the New Testament, Mary Magdalene pours out expensive perfume on Jesus before his death. We see another example from the book of Acts:

All the believers were one in heart and mind. No one claimed that any of their possessions was their own, but they shared everything they had... For from time to time those who owned land or houses sold them, brought the money from the sales and put it at the apostles' feet, and it was distributed to anyone who had need.

Acts 4:32-35

According to the IRS, only about 25% of charitable giving includes gifts of assets while the vast majority are gifts of cash. Christians are giving and being asked to give cash, a small portion of our assets, while more abundant resources are being neglected.

 

The benefits of non-cash giving

For a family to write a check to a ministry, they have to have cash in the bank. Wealth, for many of us, may be tied up in other assets. Even wealthy donors may have cash flow issues and struggle with liquidity. Much of the real estate, family businesses, investments and other assets that a family owns were purchased for a cost that is much lower than today's value. In order to turn these assets into more cash, they must be sold and taxes must be paid. Turning assets to cash may cause a painful tax burden.

With only so much cash to give, Christians must decide what piece of the pie they are willing to give to each ministry. There is a better way to support the church and ministries we care about.

 

Giving more & giving more efficiently

If Christian families were to give appreciated assets, they could avoid paying taxes on the gain; because most ministries are tax exempt entities, they won't pay tax either. You can maintain your liquidity and keep your cash while giving more! Most donors who learn to give non-cash gifts prefer to continue giving more generously through these gifts. Here are a few of the many examples:

- Small business and big giving

The words cash flow and liquidity are familiar to the small business owner. Many are still giving cash or writing checks, but the vast majority of their net worth may be wrapped up in their company. A planned giving expert can help these business owners to reduce taxes and improve cash flow by making gifts of their company stock. It is a bit more difficult to gift a non-publicly traded company, but with the right expertise and the right circumstances, small business owners can give a very meaningful gift. A donor may give a lump sum or create a fund that allows them to fund charitable organizations long term. Now the cash that was devoted to giving can help their cash flow while assets that were locked up in their business can be used to support ministry. It is a win-win situation.

- The Tax Procrastinator

The government makes it easy in some accounts to defer taxes, and many Christians have taken advantage of tax deferral. These assets can feel 'trapped' in accounts due to the pending taxes. In fact, we see many families who have amassed all of their savings inside of tax deferred accounts. Billions of dollars are in retirement plans like IRAs and 401ks. When these assets are distributed, the taxman takes his cut. Many retirees procrastinate paying the ordinary income tax and refrain from using these assets, but at age 70½ the government requires a distribution. The IRS allows what is called a Charitable IRA Rollover which allows you to transfer a gift directly from your IRA to a non-profit organization or ministry and NEVER pay taxes on that money!

Similar gifts of highly appreciated real estate or stocks allow donors to drastically reduce taxes. From a business sale to a classic car, real estate to a piece of art--any gift of appreciated property can help a donor and the Kingdom simultaneously.

- Charitable planning aligns donors' needs with Kingdom work

Many Christians would be wise in their stewardship to give effectively and avoid taxes, but sometimes these options don't meet all of their needs. Perhaps someone owns these assets but needs income for life. A charitable gift annuity or charitable remainder trust could create income for the future and a current tax benefit while setting a ministry up to receive a substantial gift down the road.

On the other hand, some donors don't need any more income today. Oil and gas royalties, rental income from real estate and dividend paying stocks can add to a family's income when they don't need it, forcing them to pay higher taxes. Through planning, they can shift a stream of income to a ministry for a term of years until their needs change.

Donors don't have to split up the cash pie anymore. Not only can charitable planning meet their needs, but it can allow them to give more abundantly. As you make the most of the resources God has given you, you can take your stewardship to a new level as you further the Kingdom.

 

Seeking wise counsel

Some of these assets are easy to give, and painless for a ministry to accept, while others are much more complex. Don't be concerned if this is overwhelming. You may have advisors who are versed in charitable planning. On the other hand, it may be time to find an advisor that can help you to plan the impact you'd like to make and to unleash your true potential for giving. Empower these professionals to help you give more effectively. Get past the "CASH ONLY" perspective and watch how the Lord blesses your giving.

We can help you with a plan to bring your family together as you build the Kingdom. Our mission is to support clients in their stewardship and in realizing their full charitable potential. Even if you have already implemented charitable giving in your estate and financial plan, we can offer a second opinion to determine if you could be more effective and efficient in your Kingdom focused planning.

 

 

We welcome your questions

If you would like more information about working with our Christian Financial Advisors, please Contact Us or read through our PrestigeAdvisors.com website further to learn more about us and how we operate. You might also enjoy reading our sister website: Planning for Stewardship.

 

 

 

 

Holistic Planning

What is holistic planning?

Holistic planning involves the many different phases of your life, not all financial. It encompasses exploring and defining a purpose driven life, one that fulfills God's role for you in this life, then developing a strategic plan to fulfill your goals and plans for the future. The holistic view of your financial life often includes a look at all of your assets and liabilities including your investment accounts, real estate, valuables and the needs of your family. This information is coordinated together into a cohesive whole to create a comprehensive financial plan that will help you to carry through the steps needed to achieve your goals. Estate planning, tax strategies, charitable giving, and a review of your insurance coverage needs are all important players in effective long term Christian financial planning.

Regardless of the number of financial accounts you may have, in order to maximize your investment returns, it is important that your investment assets are managed holistically. Holistic investment planning and management encompasses all of your accounts including both retirement accounts and taxable investment accounts.

How a Christian Financial Planner can help

The complexities of the financial planning process can be intimidating or too time-consuming for many to complete on their own. A financial planner can help consolidate and strengthen your financial plan so that you have a plan for the future. This may include guidance on a number of topics such as planning for retirement or your children’s and grandchildren's education, looking to minimize estate taxes, investing in a cause you believe in, or simply to have a review so that you gain the peace of mind that you're on track.

God grants you this life to be a good steward and to practice a fulfilling Christian life. A Christian financial planner and an investment advisor who offers holistic financial services combined with the wisdom gathered from years of real world experience can help guide you in securing your financial future, achieving your goals and being a good steward of your family, your church and your life.

A good fit is important

It is important to interview different financial planners to see who may be the best fit for you and the help you need in building a holistic plan for your various accounts and assets. You will want to select a competent, qualified professional who supports your Christian values, who you feel comfortable with, and that you can trust, and one whose expertise and business style suits your financial planning needs. Finding the right advisor for you who also follows your Christian principles can help ease your mind and provide a support system and sounding board for life's big decisions.

Here are a couple of helpful links to help you get started with the financial planning process and finding an advisor to meet your needs: