Advanced Planning with a Trusted Financial Advisor

financial advisor, wealth management

Advanced Planning with a Trusted Financial Advisor

Trusted Advisory Relationships involve working efficiently with a team of professional advisors (such as attorneys, accountants and advisors) on a regular basis to understand and address your critical needs. These can include: enhancing wealth through tax minimization, transferring wealth to heirs, protecting wealth and supporting charitable causes and non-profit organizations.

“Advanced Planning addresses the entire range of financial needs beyond your portfolio.”

That means accurately identifying the key non-investment financial risks you face and then determining the best strategies for mitigating or eliminating those risks. In short, you need to bring advanced planning into the mix and make it part of your overall structured wealth management plan. Remember that structured wealth management consists of three main components: investment planning, advanced planning and trusted advisory relationships. Since we’ve covered investment planning in depth in other posts, we’ll now turn to the other two components.

Let’s look now at how you might develop a smart Structured Wealth Management plan for addressing each of these challenges.

As vitally important as the right investment plan is to your financial well-being, it is far from the only thing that matters. To fully benefit from structured wealth management and maximize your potential for success in all areas of your financial life, you may need to look beyond investments.

Wealth Enhancement is the process of maximizing the tax efficiency of current assets and cash flow as well as minimizing fees and unnecessary costs. Key wealth enhancement steps that you should consider implementing as part of a structured wealth management plan include the following:

Assess cash management alternatives. You also might examine the effectiveness of your cash management strategies. Are you earning the maximum amount possible on your short-term cash (consistent with your need for safety and liquidity, of course), or could you put your cash to work more effectively? Many banks and investment firms offer “sweep” accounts that can link up your checking and money market accounts: the majority of your funds are kept in interest earning accounts, with transfers made to your checking accounts as checks are presented for payment.

Trimming down the number of accounts you own can help to simplify your financial life and make it easier to manage. Also, by consolidating all of your investment assets with a single firm and meeting a specific minimum, you may be eligible for lower overall pricing on the management of those assets. Likewise, allocating more money to one bank could allow you to earn higher interest rates.

Getting organized and consolidate accounts. Before you can maximize the effectiveness of your wealth and do comprehensive Advanced Planning, you need to get a handle on your financial situation. A comprehensive list of all assets and liabilities, as well as income and expenses, should be the starting point for this process. Investors often find that they have numerous investment and bank accounts spread out across multiple fund companies, advisors, banks, and brokerage firms. They also might have 401(k) or other retirement accounts from previous jobs, still with their previous employers. You may want to consider the services of a local financial advisor, Private Client Advisory, for example, versus a big national firm that may or may not know your name. Ask around at your local civic gatherings, or check with your CPA and attorney.

Review tax returns. The importance of having a good CPA should not be overlooked. Your CPA should work with you (and your other advisors such as a Certified Financial Planner) to ensure that they have all relevant financial information to accurately project your current tax liability, and avoid underpayment penalties and interest. Additionally, your CPA may recommend alternative strategies that can serve to reduce your taxable income.

Vineland Millville UEZ

Urban Enterprise Zone – Vineland & Millville

The Urban Enterprise Zone Program is a twenty-year program created by the State of New Jersey as a tool to create economic development and employment in distressed cities.  The Vineland/Millville Zone is one of twenty-seven zones in New Jersey.   Vineland and Millville became active in the Urban Enterprise Zone Program in April 1986.

On January 7, 2002 Acting Governor DiFrancesco signed the final version of Senate Bill#322.  This means that businesses currently taking advantage of the Urban Enterprise Zone Program benefits will be able to continue another sixteen years, beginning April 1, 2002. Three and a half percent sales tax, tax-exempt purchases, and employee tax benefits will continue until the year 2019.

The Urban Enterprise Zone Program has been successful in many ways. The sales tax generated by the program is returned to Zone Assistance Funds for Vineland and Millville.  The cities will receive 3% the first five years, 2% the second five years, and 1% the third five years.  Zone Assistance Funds are used for projects, to improve infrastructure, hire police and fireman, purchase of emergency equipment, and economic development loans.

The Enterprise Zone Development Corporation of Vineland-Millville (EZDC) administrates the Urban Enterprise Zone Program.  The EZDC Board of Directors consists of nine members, which includes five members from Vineland and four members from Millville.  Two of the nine members are the mayors of Vineland and Millville.  The mayors alternate being Chairman and Vice Chairman on a yearly basis.

Although Vineland and Millville operate their own loan programs and create their own projects to be considered for use of Zone Assistance Funds, the Urban Enterprise Zone Program benefits are the same for both cities and are as follows:

  • As an Urban Enterprise Zone participant, a company is exempt from paying sales tax on certain products and services. This benefit includes exemption from sales tax on construction costs, office furniture, office supplies, and equipment.  After being approved by the Office of Urban Programs in Trenton, your information will be forwarded to the New Jersey Division of Revenue. You will receive a UZ-4 Contractor’s Exempt Form and if your businesses grosses less than one million dollars in receipts you will receive a UZ-5-SB Form. If your businesses grosses over this amount you will be eligible to do a Claim for Refund.  These exempt forms are then forwarded to your vendors for proof of tax exemption status.
  • Participating retailers are eligible to charge a reduced sales tax (3.5% rather than 7%) on certain merchandise.
  • Participating businesses that are not warehousing or retail sales oriented may be eligible for the employee tax credit. It is available to corporations subject to the Corporation Business Tax, which hire certain new employees at the zone location after they have been certified into the program.
  • Participating businesses that hire new employees meeting one or more of the characteristics that apply to the “25% Employment Factor” (explained in application material), and have a positive unemployment insurance rate, are eligible to apply for an unemployment tax award.

Changes to the UEZ Refund as of 3/22/11 (PDF).

Copyright 2006 Vineland/Millville UEZ. All Rights Reserved. Site maintained for posterity.