Frequently Asked Questions

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Your questions may be among the frequently asked questions (FAQs) Kinnison Financial Strategies has answered in the past. Here are many of those FAQs:

 

What should I invest in? What is the best investment?

The question requires tailoring the answer to the unique needs or financial issues each investor faces. A direct response will require some in-depth discussion with the client (and perhaps with the client’s CPA and other professional advisors) to discover the client’s unique situation, i.e., the specific financial need that prompts such questions. What general (and specific) need should the investment address? What financial objectives are relevant? Possible objectives might relate to one or more of these events or concerns:

• preparing for retirement
• birth of a child or grandchild
• preparing for college expenses
• plans for a wedding
• home purchase or refinance
• major purchase (auto, collectibles, etc.)
• self employment
• distribution from pension (401k, 403b, deferred comp, etc.)
• minimizing risk for income sources
• anticipating college expenses
• estate planning
• death of a loved one
• financial requirements of a person with special needs
• inheritance
• insurance, or legal, settlement
• cash flow management
• continuity of a business
• financing business operations
• allocation of assets in a divorce settlement
• asset protection
• supporting a favorite charity
• minimizing taxes, and
• numerous other unique financial issues.

Please contact us to schedule a no-obligation introductory consultation, or to discuss your questions.

My Accountant said I need more deductions.
What should I do?

There are several possible strategies available to provide tax advantages. Some involve sheltering income. Others involve establishing arrangements for tax-deductible expenses. In addition, others involve tax credits. The client’s unique financial situation will suggest the appropriate strategy.

Please contact us to schedule a no-obligation introductory consultation, or to discuss your questions.

A friend mentioned that I could sell my real estate investment rental property without paying taxes.
How is this possible?

Investing in real estate has many advantages. Among them are tax-deferred benefits of property exchanges. The IRS regulations include a section 1031 that allows exchange of real property owned to acquire “like-kind” real property and, thereby, deferring the capital gains tax that otherwise could be due upon sale of the investment real property. This process is quite complex and requires strict compliance with applicable rules. Mistakes could be very costly. There are many other advantages to selling investment real estate, with or without exchange.

Please contact us to schedule a no-obligation introductory consultation, or to discuss your questions.

How can I be sure my savings will assure that I don’t run out of money in retirement?

Several factors are involved in calculating the answer to this question. When will you retire, or have you already retired? Is a pension program available? Will Social Security be a factor? What savings program are you following before retirement? If you have already retired, what is a reasonable budget, i.e., what is the income required for the lifestyle you prefer? Will you have employment or business income during retirement? These are examples of information and assumptions necessary to calculate the answer to this question.

Please contact us to schedule a no-obligation introductory consultation, or to discuss your questions.

I own a successful business. How can I assure income from it after I retire? Or, how can I pass on the business to heirs, partners, or key employees?

Wow! This is a very complex question. It requires serious planning for the business and for you as the owner. There are many, many strategies available to accomplish specific objectives that involve business ownership. The process begins by sorting out those various objectives. Then, we can explore the many strategies to select those that best match each of the specific objectives. This requires considerable discussion and research to assure that the specific strategies selected realistically address the intended results.

Please contact us to schedule a no-obligation introductory consultation, or to discuss your questions.

I have a new child/grandchild. How can I assure he/she will have money for college expenses?

Congratulations. That is a terrific question; one we hear often. It is necessary to accumulate the needed amount by the date the child will begin college studies. This can occur either with a one-time investment or with a series of investments. The object is to accumulate funds that will have grown to the amount necessary to pay all, or a desired part, of the college expenses when needed. First, this involves estimating the cost of college when the youngster will need the funds. Second, it involves calculating the funds and the growth of those funds between now and the date those funds will be needed.

Please contact us to schedule a no-obligation introductory consultation, or to discuss your questions.

I would like to leave a legacy to my church, or favorite charity. How can I be sure the funds are available to accomplish this?

Achieving this noble goal requires a bit of planning and, in some cases, communication with the church or charity. There are several strategies allowing such philanthropy with beneficial tax advantages. Depending upon personal preferences, arrangements can be a surprise to the receiving entity, or arrangements can be via an advance living gift. Also, there are strategies that provide income for life with a legacy to the receiving entity upon passing.

Please contact us to schedule a no-obligation introductory consultation, or to discuss your questions.

 

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