The One Big Beautiful Tax Cut Act: What You Need to Know

By Jeff Gilbert

President Trump’s expansive tax proposal dubbed the “One Big Beautiful Bill” has cleared the House and now moves to the Senate for review. Spanning more than 1,100 pages, the bill aims to build on the foundation of the 2017 Tax Cuts and Jobs Act (TCJA), introducing new tax incentives for workers and families while encouraging U.S.-based investment. With a projected cost of $4.1 trillion over the next decade, the legislation also includes several key provisions that could significantly impact estate planning and the transfer of wealth between generations.

Permanent Extension of Individual Tax Cuts

One of the core goals of the bill is to make the TCJA’s individual tax changes permanent. These include maintaining lower marginal tax rates, keeping the enhanced standard deduction ($32,000 for joint filers under the new bill), and continuing the repeal of personal exemptions. One of the thorniest issues is the state and local tax (SALT) deduction provision. It appears this figure should be a $40,000 cap up to $500,000 of AGI.

These provisions, while designed for income tax relief, indirectly impact estate planning by increasing after-tax cash flow and reducing the need for income-shifting strategies in the short term. The marriage penalty continues to be mitigated for most brackets, which is relevant for married couples structuring trusts or gifting strategies.

Increased Gift and Estate Tax Exemptions

Significantly, the proposal would make the higher estate and gift tax exemption amounts permanent, rather than allowing them to sunset in 2026. Under current law, the lifetime exemption is $13.61 million per person ($27.22 million per couple), but it’s scheduled to drop by about half when the TCJA provisions expire. Trump’s new bill would maintain the higher thresholds indefinitely, providing high-net-worth individuals with an extended window to transfer wealth without triggering federal estate or gift tax. For families with complex estate plans or large privately held assets (e.g., real estate, closely held businesses), this creates a valuable opportunity to revisit the benefits of trusts, such as Grantor Retained Annuity Trusts (GRATs), SLATs (see below), Irrevocable Life Insurance Trusts (ILITs), and other gifting vehicles.

Step-Up in Cost Basis and Capital Gains Treatment

Importantly, the bill retains the step-up in basis at death, meaning heirs would still inherit appreciated assets at their fair market value, eliminating built-in capital gains for income tax purposes. While there had been previous discussions about eliminating the step-up or taxing unrealized gains at death, this proposal takes no such step. This reinforces the value of holding appreciating assets through life and passing them on through the estate, especially for families with concentrated positions in real estate or closely held stock.

Implications for Trust Structures and Generational Planning

For those using irrevocable trusts to shield assets from estate taxes or control distributions over time, the permanence of the current exemption levels provides clarity and flexibility. It may also reduce the urgency of more aggressive estate freeze strategies, but it’s important not to become complacent; future political changes could reverse course. 

Additionally, if you’ve been considering the use of dynasty trusts or spousal lifetime access trusts (SLATs), this bill may extend the planning horizon, offering more time to fully fund these vehicles.

Tax Incentives for Multigenerational Goals

Some of the new provisions in the bill may be minor on their own but carry long-term planning implications. For example, the proposed “MAGA Savings Accounts” would allow tax-free savings of up to $1,000 annually per child born during Trump’s second term. While largely symbolic, these accounts could be leveraged as part of a broader multigenerational wealth strategy, especially if combined with 529 plans, Roth IRAs for teens, or custodial accounts for early investing.

Action Steps to Consider

Review gifting plans: Consider making additional lifetime gifts to family members or irrevocable trusts while the exemption is high.

Revisit trust strategies: With higher exemptions potentially locked in, now is the time to fine-tune SLATs, GRATs, and other irrevocable structures.

Reassess asset titling: Ensure taxable and non-taxable assets are titled optimally to take full advantage of step-up in basis rules.

Coordinate with legal counsel: Estate planning documents such as wills, trusts, and powers of attorney should be updated regularly to reflect current law and family dynamics.

Could the Big Beautiful Tax Act Impact Your Estate Plan?

At Balboa Wealth Partners, we’re keeping a close eye on the progress of this legislation in Congress. Regardless of the final outcome, the proposed changes offer valuable insight that can help shape your estate planning and legacy goals with greater clarity and purpose.

If you’re wondering how your current estate plan or wealth transfer approach may need to adapt, we’re here to help. Contact us to schedule a personalized review by calling 949-445-1465 or emailing me at jgilbert@balboawealth.com.

Scottsdale office: 480-801-5010, info@balboawealth.com

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Scottsdale, Jeff and Balboa work with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Navigating Market Volatility in Retirement

By Jeff Gilbert

Retirement is a much-anticipated milestone, but it comes with its own set of financial challenges. One of the biggest hurdles is managing the unpredictable nature of market volatility.

Despite the ups and downs of the market, it’s possible to build a stable retirement by understanding the key drivers of market fluctuations and implementing a clear, strategic investment plan.

In this article, I explore smart, diversified strategies to help you stay on track and safeguard your retirement during volatile times.

Understanding Market Volatility

Market volatility is the fluctuation in the price of a security or market index over a given period. Simply put, it measures frequent and significant price changes in financial markets. 

Market volatility is an inherent characteristic of financial markets. A number of variables, including economic growth, inflation, interest rates, geopolitical events, and investor sentiment, have caused market cycles of ups and downs throughout history.

Although it can cause anxiety, volatility is not always negative. In fact, long-term investors may find opportunities in market fluctuations. Retirees can better handle these market fluctuations and work toward their financial objectives by comprehending the nature of volatility and putting into practice a clear investing strategy that fits their time horizon and risk tolerance.

Impact of Market Volatility on Retirement Portfolios

Market volatility can substantially affect retirement portfolios across diverse asset classes. 

For example, while stocks are typically known for their growth potential, they’re inherently more volatile than bonds. That means stock prices can drop sharply during market downturns, which can deplete a retiree’s assets considerably. 

And while bonds are considered more stable, they’re not immune to volatility either, particularly when interest rates are rising. Bond prices and returns typically move in opposite directions, so when interest rates climb, existing bond prices usually decrease. 

For retirees, this “sequence of returns risk” is a major obstacle and highlights the negative effect of market downturns on retirement portfolios. If a retiree is compelled to take money out of their portfolio when it’s significantly declined in value, they may be selling assets at a loss. 

Because repeated withdrawals must be drawn from an increasingly smaller principal, this could have a cascading effect that puts their long-term financial stability at risk.

Strategies for Managing Market Volatility in Retirement

Now let’s look at some strategies for reducing risk to retirement portfolios during market volatility.

First, we believe diversification is crucial. Diversification includes spreading investments over a variety of asset types, such as equities, bonds, real estate, and commodities—thereby reducing the impact of subpar performance in any one asset type. 

A fundamental element of diversification is asset allocation; in other words, setting up the ideal combination of stocks, bonds, and other assets according to a person’s age, risk tolerance, and time horizon. 

An older retiree may prioritize income and stability and allocate a larger portion of their investments to bonds, whereas a younger retiree may be more risk tolerant and invest heavily in equities.

Another essential strategy is keeping a sufficient emergency fund. During market downturns, this cash reserve acts as a buffer, allowing retirees to pay for living expenses without having to liquidate investments at potentially lower prices. 

To sustain the intended asset allocation over time, regular rebalancing by a finance professional is recommended. Rebalancing involves periodically buying or selling assets to restore the intended allocation, confirming that the portfolio remains aligned with the investor’s risk tolerance and investment objectives.

Maintaining a Long-Term Perspective

Retirement savings can be severely impacted by emotional decision-making, such as panic selling during market downturns. This means it’s critical to focus on long-term investment goals rather than responding to short-term market swings.

History has shown us that markets typically rebound from downturns. The long-term trend has been upward, even though recoveries vary in timing and length. By remaining invested and refraining from impulsive decisions, retirees can gain from the potential of long-term prosperity and can weather market volatility. 

Seek Experienced Guidance

Are you looking for a tailored investment strategy to navigate market volatility during retirement?

At Balboa Wealth Partners, our experienced financial advisors offer proactive, adaptable guidance to help you manage the uncertainties of market fluctuations in retirement. We provide continuous support, regularly reviewing and adjusting your investment approach to align with market shifts and your unique needs.

Whether you’re already retired, preparing for retirement, or still building your nest egg, having a solid financial plan is crucial. Reach out to us today to discuss strategies designed to pursue your retirement goals. Give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com.

Scottsdale office: 480-801-5010, info@balboawealth.com

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

If I Could Only Teach Two Financial Lessons

By Jeff Gilbert

Financial literacy is one of the most essential life skills, yet it’s rarely taught in schools. That means the responsibility falls on parents to equip their kids with the knowledge they need to make smart money decisions. If you could pass down just two key financial lessons to set your children up for lifelong success, what would they be? 

Here are the two I believe make the biggest impact.

Lesson 1: The Need for a Customized Financial Plan

A generic one-size-fits-all approach simply won’t work for everyone. Any strong financial strategy needs to reflect your unique goals, values, and life circumstances, whether that includes saving for a home, preparing for retirement, or planning for your child’s education.

A customized plan takes into account your specific financial situation—your income, debt, savings, expenses, and long-term goals. It acts as a road map that helps you stay on track and make informed decisions about how to allocate your resources. Without a clear plan, it’s easy to lose sight of your objectives and make reactive, emotional decisions that could undermine your financial well-being.

By teaching your children the importance of a tailored financial plan, you help them understand that financial success isn’t just about having more money, but about making smarter choices and being intentional about their future. Once they have a plan in place, they can feel more confident in their financial decisions and less likely to be swayed by outside pressures or temporary distractions.

Lesson 2: Sticking to the Plan and Keeping it Current

The second most important financial lesson I’d pass on is the importance of sticking to the plan—and keeping it current as life events occur. Life is unpredictable. We all go through job changes, moves to a different city, marriage or divorce, or the birth of a child, and these major life changes undoubtedly impact your financial goals. That’s why it’s not enough to simply create a plan once and forget about it. A robust financial plan is a living document that requires regular updates to stay relevant and effective.

This lesson is particularly valuable because too often people make the mistake of making financial decisions based on emotions or short-term circumstances. For example, if the stock market drops, you may be tempted to panic and make drastic changes to your investment strategy. But this is exactly where having a solid plan and sticking to it comes into play. By removing emotion from financial decisions, you’re better able to stay focused on long-term goals rather than reacting to temporary setbacks. The key is consistency—make adjustments when necessary, but always stay aligned with the big picture.

We’re Ready to Assist

If you want a financial plan that gives you confidence to live within your means and spend with purpose, the Balboa Wealth Partners team is here to help. We provide guidance on organizing and streamlining your finances so you can focus on what truly matters. 

Ready to take control of your financial future? Contact us today to schedule a consultation at 949-445-1465 or email me at jgilbert@balboawealth.com.

Scottsdale office: 480-801-5010, info@balboawealth.com

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

2025’s Best Tax Deductions for Small Businesses & Startups

By Jeff Gilbert

As a small business or startup owner, preserving more of your profits is essential to support your family or reinvest back in your business. Taking advantage of tax deductions for small businesses in 2025 can reduce your income tax burden and help you hold on to more of your hard-earned money.

Understanding the available tax deductions now can position you to benefit by the end of the tax year. A financial advisor at Balboa Wealth Partners can help you identify which deductions you qualify for. Meanwhile, here’s a look at some of the top tax deductions for small businesses in 2025.

The Best Tax Deductions for Small Businesses in 2025

Many expenses that keep your business running can generate tax deductions or credits that reduce the taxes you pay on your profits. A key to taking advantage of those tax breaks is to create a plan and maintain good records to track them. 

Consider these tax deductions for small businesses in 2025.

The Cost to Start Your Business

If you’re starting a new business in the new year, you can deduct the costs you incur to launch your company. You can deduct up to $5,000 in startup costs for the year you begin operations. Costs above that—up to $50,000—must be spread out (amortized) over the next 15 years.

Business Meals and Entertainment

You can deduct some types of entertainment, like company parties, along with up to 50% of the costs of food and drinks you purchase for business purposes. The expenses must be directly related to your company, and you must document the following:

  • Date and time of the event
  • The business relationship of those in attendance
  • The total cost

Keep a receipt and write detailed notes about the outing on the back of the receipt. Consider consulting a tax professional about IRS limits on deducting entertainment expenses.

Work-Related Vehicle Use

If you use your vehicle exclusively for work, you can write off what you spend to maintain and operate it. If you also use it for personal errands, only the expenses related to your business can be deducted. You can claim your business mileage or use the standard mileage rate from the Internal Revenue Service, which is $0.70 per mile in 2025.

Office Supplies and Equipment

Office supplies and equipment are some tax deductions for small businesses you shouldn’t overlook. Computers and work-related software, printers, paper, and pens used during the year they were purchased can be deducted. You also can write off postage and shipping expenses. File away your receipts to have them available at tax time.

Employee-Related Expenses

You can deduct certain employee-related expenses deemed reasonable and necessary, including:

  • Salaries
  • Vacation pay and sick time
  • Health and retirement benefits
  • Life insurance
  • Education
  • Meals and lodging

To claim these tax deductions for small businesses, you must comply with all employment laws and regulations.

Professional Services

As a small business owner, you know that professional services from financial advisors, attorneys, and accountants can help you build a successful company. The cost of professional services and fees for financial planning and consulting for business strategy can be deducted from your taxes. You must keep good records of the fees and services.

These are just a few of the tax deductions available for small businesses. You also can claim tax credits and deduct expenses related to marketing and advertising, home office space, utilities, business loan interest and bank fees, business insurance, and more.

Partner With an Experienced Advisor

Thoughtful tax planning allows your business to make the most of every available credit and deduction. At Balboa Wealth Partners, we understand the challenges small business owners face, and we’re here to provide guidance every step of the way.

While we are not tax professionals and do not provide tax advice, we can help you align your financial strategy with your overall business goals. Keep in mind that tax laws vary by state and can change over time, so it’s always best to consult with a qualified tax expert to maximize your deductions while staying compliant.

Give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com.

Scottsdale office: 480-801-5010, info@balboawealth.com

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Take Financial Charge in 2025: Tips for Affluent Families

By Jeff Gilbert

Affluent families face a distinct set of financial planning opportunities and challenges in 2025. It takes a proactive and strategic approach to navigate complex markets, changing tax rules, and the ever-increasing demands of philanthropy.  

I wrote this article to share key strategies for affluent families to manage their finances in the year ahead. I discuss approaches like optimizing investment portfolios, mitigating tax burdens, how to make the most of charitable giving, as well as steps for effective estate planning.

Optimizing Investment Portfolios

Optimizing your investment portfolio requires a diversified strategy that goes beyond conventional stocks and bonds. This can include investigating alternative investments that provide distinctive risk-return profiles and possibly improve portfolio performance, such as commodities, hedge funds, real estate, and private equity.

Strong risk management is also necessary. This entails routinely evaluating and modifying portfolio allocations based on time horizons, personal risk tolerance, and market conditions. Potential losses can be reduced by using techniques including stop-loss orders, hedging, and rebalancing. 

Mitigating Tax Liability

In order to reduce the estate tax burden on heirs, complex tactics such as estate tax planning—which includes the use of trusts and gifting schemes within the annual and lifetime gift tax exemptions—are frequently used to mitigate tax liability. Strategies for charitable giving, such as donating valuable assets to approved charities, can help deserving causes and result in sizable tax perks.

Additionally, you can significantly decrease your tax liabilities by making the most of contributions to tax-advantaged accounts such as health savings accounts (HSAs), 401(k)s, and IRAs. These accounts provide a number of tax advantages, including tax-free growth, tax-deductible contributions, and tax-free withdrawals for approved expenses. 

Lastly, it’s vital to understand the intricacies of local and state taxes. This may involve strategies like tax credits, deductions, and limiting exposure to top-tax jurisdictions.

Optimizing the Impact of Philanthropy

A thoughtful and strategic approach is necessary to optimize philanthropic impact. It is essential to create a thorough philanthropic plan that matches charitable contributions to the family’s beliefs, interests, and intended impact. This involves pinpointing key areas of interest, such as social justice, healthcare, education, or the environment, and investigating potential grantees.

Exploring various giving vehicles is also a wise idea. While donor-advised funds offer a quicker and easier approach to assist philanthropic organizations, private foundations offer significant flexibility in grantmaking. Families can match their investment portfolios with their charitable objectives through impact investing, which concentrates on investments that produce both financial and social returns.

Estate Planning and Succession Strategies

Creating a thorough estate plan is essential. This entails creating trusts to administer and safeguard assets for beneficiaries, designating powers of attorney to make financial and medical choices, and making a will to specify how assets should be distributed.

In the case of incapacity, healthcare directives guarantee that medical requests are honored. Planning for succession involves more than just allocating assets. It includes educating the following generation on how to handle and safeguard family money. This could involve teaching about family business management, charity activities, and financial literacy.

Additionally, creating strong family governance is also critical. This means establishing decision-making procedures for family wealth issues, articulating common family values, and developing transparent communication protocols. 

Addressing touchy issues like family rivalry or diverse opinions on financial management requires open and honest communication. A clear family authority framework can reduce family conflict, guarantee the fair distribution of wealth, and promote a constructive and healthy relationship with wealth throughout generations.

We Can Help

The importance of ongoing financial planning and professional guidance cannot be overstated. 

Firms like Balboa Wealth Partners can work with you to design a family wealth plan that’s customized to your particular financial situation. In my experience, clients want a partner who values them, understands the importance of what they have built, and cares about them and their needs. This is why we believe partnering with a fiduciary financial advisor should be non-negotiable. 

To get started, give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

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Wishing You Happy Holidays From Our Team!

By Jeff Gilbert

Season’s Greetings from all of us at Balboa Wealth Partners! This year has been filled with its share of challenges and triumphs, and through it all, we’ve been honored to serve clients like you. Your trust means the world to us, and we’re dedicated to building confidence and stability in your financial future. As you celebrate this holiday season, know that we’re here to support you every step of the way. 

Reflecting on 2024

As we give thanks and warm wishes and celebrate the start of the new year, it’s important to reflect on all that we’ve achieved this year. It wasn’t always easy, but we have weathered the storms and are stronger for it.

Amid the challenges, we also faced a profound loss with the passing of our beloved colleague Alex Aretakis in April. Alex’s dedication, humor, and care for his clients left an indelible mark on our team and all who had the privilege of knowing him. As we continue to honor his memory, we are reminded of the importance of resilience and the strength we find in our shared purpose.

While inflation, continued stock market volatility, and recession concerns remain on the horizon, we approach 2025 with renewed determination and optimism.

Whether or not you are glad to see this year go, take time to reflect on all that it has brought and the good things that have come from every victory and trial.

Looking Forward to 2025

We hope you are excited for everything the new year will bring, and we encourage you to think about what you want 2025 to hold for you. The end of the year is a great time to set new goals, dream about the future, and find renewed motivation. Use this season to recharge your batteries and create a vision for the coming year so that you can hit the ground running in January. Enjoy some well-deserved rest and get excited for the new year!

Thank You for a Wonderful Year!

Everything our team at Balboa Wealth Partners achieves as a firm is all due to you. Your loyalty brings new clients to our doors, and your trust helps us build strong relationships that last a lifetime. We hope that in serving you, we have provided your family comfort in knowing that we are here to help whenever you have questions or concerns. We understand that life changes can happen at any moment, and we want you to rest easy knowing that when you need advice, guidance, or simply someone who will listen, we’re here for you.

As we prepare to enter a new year, we look forward to continuing to help you pursue your financial goals in 2025. Here’s wishing you joy and laughter during the holiday season and a happy new year!

Get in Touch

As the year comes to a close, now is the perfect time to review your financial plan and set yourself up for a successful 2025 and beyond. Give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com.

Scottsdale office: 480-801-5010, info@balboawealth.com

Happy Holidays from our team to you and yours!

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Estate Planning: Why It’s Essential at any Age

By Jeff Gilbert

Ever wondered if estate planning is just for the wealthy or those in their golden years? It’s not at all! Whether you’re just starting your career in your 20s or enjoying the quiet of retirement, estate planning is important for everyone.

Yet, according to a 2024 survey, only 32% of Americans have formal estate plans, leaving most people without a clear say in their end-of-life decisions. This often means someone else—or even the State—will make those choices. In this article, we dive into why estate planning is a smart and necessary step no matter where you are in life.

Starting Out: In Your 20s and 30s

Feeling invincible? We all do when we’re just starting out! These early years are when you least expect to need an estate plan, which is exactly why it’s a critical time to have one. Early estate planning helps clarify your wishes—however straightforward they may be at this stage—so they are clear and actionable.

Take Stock of Your Finances: Create a list of bank accounts, investments, real estate, and any other valuable assets. This first step helps you organize your financial life, right from the start.

Create a Will: It’s important to recognize that it’s not necessarily about the size of your estate but about making your wishes known. A well-drafted Will helps outline exactly how you want your assets distributed after your passing, and is a great way to look after your family if you can’t be there—especially if you have minor children. 

Consider a Durable Power of Attorney (POA) and Healthcare Proxy: Unexpected events don’t wait until you’re older. Establishing a POA and healthcare proxy early allows you to designate someone you trust to handle your affairs if you can’t. A POA specifically authorizes this individual to manage your financial and legal matters, while a healthcare proxy empowers them to make medical decisions on your behalf.

Set Up a Living Will: This document helps you lay out your wishes for medical intervention—a crucial piece if you’re unable to communicate those decisions yourself.

Building and Growing: In Your 40s and 50s

By the time you hit these middle years, life’s gotten a whole lot richer—both in terms of assets and complexity. Maybe you have kids, your dream home, or a thriving career. This stage is full of both financial and family growth, which makes it a great time to reassess and reinforce your estate plan.

Life Insurance Check-up: A key consideration for any estate plan, life insurance offers a safety net for your family that can help support them in your absence. But as your life evolves, so do your life insurance needs. That’s why it’s essential to reevaluate whether your coverage reflects your current situation. 

Consider a Trust: Beyond a Will, a Trust is another way to manage and safeguard your growing assets. And despite what you may have heard, Trusts aren’t just for the wealthy. They are legal arrangements that allow for control over asset distribution, often avoiding probate and addressing specific wishes in estate planning. 

Update Your Beneficiaries: Life changes—and so should your estate plan. Make sure the beneficiaries listed on your Will, insurance policies, investment accounts, and retirement accounts match your current wishes. Here’s one more thing to consider: it’s a good idea to review your beneficiary designations and Will at least every three years, or whenever you experience major life changes like marriage, divorce, the arrival of a new baby or grandchild, retirement, or a significant health event.

Pre-Retirement: Sharpening Focus in Your 60s

On the brink of retirement, now’s the perfect time to fine-tune your estate plan. The decisions you make now can significantly impact your legacy and retirement years, so it’s important to focus on strategies that reflect your upcoming lifestyle changes and the influence you want to have.

Advanced Trust Planning: Strategies like Charitable Remainder Trusts or Irrevocable Life Insurance Trusts can help you extend your legacy far beyond your lifetime. These sophisticated tools are capable of far more than just reducing taxes—they offer you the opportunity to support the causes close to your heart in a significant and enduring way.

Business Succession Planning: If you’re a business owner, what’s your exit strategy? Including a clear succession plan or buy-sell agreement in your estate plan is vital for your business’s continuity. A well-drafted and funded buy-sell agreement supports smooth transitions, helping to manage disruptions or financial difficulties when you leave. Plus, it can also provide for your family financially if you pass away or cannot work. Without such planning, your business could pass to heirs who are unable or unwilling to operate it, leaving your business legacy at risk.

Tax Strategies: With a substantial estate, it’s critical to engage in tax planning to effectively transfer wealth to your heirs—and not to the IRS. This includes several strategies, like setting up Trusts, making charitable gifts, and gifting assets during your lifetime. Each of these is designed to reduce your estate’s tax burden while helping you fulfill your legacy goals.

Your Enduring Legacy: Retirement and Beyond 

By this stage, many people are tempted to think they’re done planning. But retirement isn’t the finish line for estate planning. In fact, it’s a pivotal time for maintaining, updating, and shaping the legacy you’ll leave behind.

Estate Review: Regular reviews with your estate planning team can provide confidence that your plan will remain effective. Changes in laws, financial circumstances, or even family dynamics can all impact your estate plan, so checking in regularly helps keep it current.

Charitable Giving: What is the vision for the wealth you’ve built? For most people, leaving a legacy isn’t just about assets, it’s about making a difference. If this sounds like you, consider how charitable giving fits into your estate plan.

Gift Wisely: Gifting assets during your lifetime allows you to take advantage of the gift tax exclusion, potentially reducing the overall estate tax burden. Typically, you can give gifts up to a certain limit (determined annually) to as many people as you like without affecting the lifetime gift exemption amount. Plus, this lets you witness the impact of your generosity firsthand. 

Prepare for Tomorrow, Starting Now

Your estate plan goes beyond paperwork—it’s a representation of your hard work and the principles you hold dear. As life evolves, so too should your estate planning strategy, adapting to each new phase.

Whether you’re in the early stages of wealth building or preparing to pass on your legacy, the steps you take today can greatly impact the future. At Balboa Wealth Partners, we’re committed to helping you navigate every stage of the journey.

For customized guidance and to create an estate plan tailored to your unique needs, contact us at 949-445-1465 or email me at jgilbert@balboawealth.com.

Scottsdale office: 480-801-5010, info@balboawealth.com

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

Why It’s Important to Have a Fiduciary Financial Advisor

By Jeff Gilbert

The financial world is full of various titles: financial advisor, financial planner, wealth manager, and more. Choosing the right advisor who provides honest, reliable advice and helps you meet your goals can be challenging. So, how can you make an informed choice?

A title alone doesn’t reveal the advisor’s standards or how they operate, which can be confusing and frustrating. Instead of focusing on job titles, ask your current or potential advisor if they adhere to the fiduciary standard. Their response will show whether they are genuinely committed to acting in your best interest.

What Do These Different Titles Mean?

If you’ve ever researched financial advisors, you may have noticed there are many different types of advisors from which to choose. Some of the most common types of financial advisors are brokers, fee-only fiduciaries, and independent financial advisors. It’s important to know the standards each type of advisor is held to as you’re deciding who to hire.

Here’s the breakdown:

  • Brokers manage your portfolio but also sell financial products such as mutual funds or insurance policies, for which they earn a commission. They are not held to a fiduciary standard, so they may not always act in your best interest.
  • Fee-only fiduciaries may charge a flat fee, or a percentage of your portfolio, but they are always held to a fiduciary standard, in which they are required to act in your best interest.
  • Independent financial advisors have started their own financial firm. Most independent advisors act as fee-only fiduciaries, but some may act as fee-based advisors and sell additional financial products on a commission basis.

What Exactly Is a Fiduciary?

In general terms, a fiduciary is a person or entity who has the power to act for another in situations that require complete trust. When it comes to the financial industry, financial advisors who work for a Registered Investment Advisor firm must always act as a fiduciary for their clients. CERTIFIED FINANCIAL PLANNER® professionals are also held to this duty when providing financial advice to their clients. By law, a fiduciary advisor must be completely transparent and always act in their clients’ best interest. They are also obligated to avoid and disclose any potential conflicts of interest.

Additionally, the ongoing services and investment monitoring they provide also falls under the fiduciary duty. In other words, their job doesn’t end after the initial meeting or purchase. They must regularly review your accounts to help align your investments with your best interest.

There are financial professionals whose services do not fall under the fiduciary standard. This doesn’t mean that they are out to steal your money and can never be trusted—far from it. These financial professionals who register with FINRA are held to a standard known as Regulation Best Interest (Reg BI). This is a step in the right direction, but doesn’t take things as far as the fiduciary standard for Financial Advisors who work for a Registered Investment Advisor firm that registers directly with the Securities and Exchange Commission.  

What Does it Mean to Work With a Fiduciary?

There are several benefits to working with an advisor who serves in a fiduciary capacity. For one, they are open and transparent. Aside from the obvious goal of maximizing value for your money, working with a fiduciary can give you confidence that your advisor is working in your best interests rather than their own. They’ll give you their true, professional opinion (even if it’s not the answer you want to hear). This is extremely valuable when you’re facing a big life decision, whether it’s purchasing a second home, transitioning into consulting work, or retiring earlier than anticipated. Reviewing your entire financial picture, an advisor can show you the impact a decision may have on your future and how you can pursue certain goals.

By working with an advisor who holds to the fiduciary standard, you can be confident in your financial future. Clients have the power to ask questions and to demand the highest value for the service that advisors are providing. As a Registered Investment Advisor firm, we understand people’s reservations or even negative connotations toward the underlying motivations of some advisors. We want to assure you that you can trust in the fact that our relationship with you is built on integrity and putting your interests above our own.

A Holistic Approach

Independent, fiduciary advisors do so much more than just pick your stocks. Working with an experienced financial specialist can be a realistic sounding board to help provide you with a litmus test when you have questions or face a big financial decision. They actively coordinate the accumulation, distribution, and transfer of your wealth, as well as the estate, tax, and financial planning areas of your retirement plan. An advisor who looks at the big picture of your financial life can help you optimize income and mitigate taxes in retirement. 

For example, this type of advisor helps you create a retirement income plan that strategizes when you take your withdrawals and what accounts you take them from first; not to mention, they also design a Social Security strategy that optimizes your benefits, manages Medicare confiscation, and addresses long-term care so you can feel confident that you’re on the right track as you pursue your long-term goals. The objective advice of an independent fiduciary advisor can make an incredible impact on your financial situation in retirement. 

Is a Fiduciary Essential for My Financial Plan?

If you want to make confident, informed decisions about your finances, the answer is yes.

At Balboa Wealth Partners, our focus is on building strong portfolio performance while offering personalized solutions tailored to your financial goals. As an independent firm, we are not tied to any commissions or specific investment products. This means we select investments based on your unique risk tolerance, circumstances, and objectives, rather than our own interests.

To begin, give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com.

Scottsdale office: 480-801-5010, info@balboawealth.com

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

How to Navigate Taxes When Your Monthly Income Varies

By Jeff Gilbert

Most people typically think about taxes once in a calendar year. When taxes are automatically estimated and deducted from their paycheck, all they do is file their tax return in April. However, if you are self-employed or in a profession with a fluctuating income, managing your taxes is a bit more complex.

To help increase your irregular income, proactive tax management is essential to incorporate into your financial plan. Here are five steps you can take to manage and reduce your tax liability while dealing with a variable monthly income.

1. Understand When Estimated Tax Payments Are Due

Self-employed individuals and entrepreneurs are responsible for paying taxes directly to the IRS in the form of quarterly estimated payments. Being your own boss means you have to calculate and remit payment for what you owe; it’s not automatically deducted from your paycheck like it is for W-2 employees. 

This is great in that you don’t have to pay taxes right away, but it can quickly become an administrative and financial burden if you don’t stay on top of it. 

To better manage your tax payments, you must first understand when they are due. This table highlights the typical due dates for quarterly estimated tax payments: 

Taxes are due on… …for money earned…
April 15 January 1 – March 31
June 15 April 1 – May 31
September 15 June 1 – August 31
January 15 of the following year September 1 – December 31 

Failure to pay your estimated taxes or late payment may result in hefty penalties and fees charged by the IRS, so it’s critical to stay on top of these dates.

2. Understand How Much You Should Pay

Understanding how much you should pay in taxes can be especially difficult if your income fluctuates each year. If you overpay, you run the risk of giving the IRS an interest-free loan, and if you underpay, you run the risk of being penalized. In this case, the safest thing to do is to avoid the underpayment penalty by paying the lesser of the following:

  1. 90% of your current year tax liability or
  2. 100% of your prior year tax liability (if your adjusted gross income for the prior year was more than $150,000, then you must pay 110% of your prior tax liability)

Keep in mind that the IRS also provides a stipulation if you receive uneven income throughout the year. You may be able to reduce or avoid penalties by annualizing your income and making unequal payments throughout the year.

3. Create a Tax Plan

After you determine how much tax you should pay, the next step is to create a tax plan to ensure you save the appropriate amount. The general rule of thumb is for self-employed individuals to set aside 25-30% of their income for taxes, but the exact amount you need to set aside depends on your business structure, tax bracket, state of residency, and more. 

For individuals with irregular income, it’s important to adjust your savings as your income fluctuates. If you have a particularly successful month, consider putting 50-60% away to make up for months where your income is lower. Working with a wealth manager or utilizing a bookkeeping system are great ways to stay on top of your tax payments so you don’t find yourself facing a penalty come tax season.

4. Keep Track of Deductions

It’s easy to forget about all the expenses you paid for when you’re focused on managing your irregular income. But it’s important to document as much as you can in order to take advantage of every deduction. This may help you reduce your tax liability, ultimately reducing your estimated tax payments and putting less strain on your uneven cash flow.

There are dozens of expenses you can deduct as an entrepreneur or real estate broker. Here are a few of the most common deductions:

  • Startup costs
  • Advertising
  • Online services and subscriptions
  • Travel expenses
  • Continuing education
  • Software, hardware, and other equipment
  • Health insurance premiums and medical care expenses
  • Home office and supplies
  • Retirement contributions

5. Collaborate With a Trusted Advisor

Managing your tax payments can be complex with a variable monthly income, but with the right people on your team, it doesn’t have to be so hard. At Balboa Wealth Partners, we aim to assist high-net-worth individuals and families in handling the fluctuating income that comes with their professions.

If you’re feeling overwhelmed or confused by important tax planning issues, we encourage you to seek the comfort and clarity a financial professional can provide. To get in touch, you can reach us at 949-445-1465 or email me at jgilbert@balboawealth.com.

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.

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Don’t Let Emotional Investing Control Your Wealth

By Jeff Gilbert

Emotions are strong influences in life. Our financial decisions can really tug at our heartstrings, and even when we try our best, it’s difficult to look at our finances without getting emotional.

Why? Our money habits start in childhood and play out through adulthood. For example, someone who knows they should save instead of spend might still struggle to break the habit because they have a deep emotional attachment to spending (it feels good) even though they know it’s not the best choice (they’re not saving enough).

It’s clear that our emotions have an impact on our financial choices. So, let’s dive into how we form our money habits and what we can do to change them, ultimately taking emotions out of the equation.

The Money Script

Do you sometimes feel like the discipline to make rational and well-thought-out financial decisions must be too good to be true? Because no matter how hard you try, you just can’t seem to stick to it? Well, I am sure there are others that feel the same way. These feelings are not uncommon and are most likely due to the emotional and psychological baggage we all carry around relating to our money, otherwise known as our money scripts. And, as with most of the baggage we’ve lugged into our adult lives, these scripts usually start forming at a very young age. 

Even though we may not be aware of it, we spend our childhood picking up on how our parents and other significant role models relate to and handle money, and over time, our brains are subconsciously trained to respond in similar ways. If your parents were confident in their ability to make wise investments, you will likely face investing with confidence as well. Contrarily, if you experienced your parents scrounging to get by and often quarreling over expenses, you may experience some pretty strong feelings of guilt when making certain purchases. 

The seeds of money scripts are planted in childhood, watered by observation, and eventually grow to influence your emotional beliefs about finances as an adult. For this reason, it is vital to be intentional and diligent in talking to your kids about money and modeling healthy financial behaviors. It is just as important to take the time to examine yourself and understand your money scripts and how they influence your financial behavior. 

The Negative Side of Money Scripts

To be fair, not all money scripts are bad. Some behaviors we learn plant seeds for beneficial emotions about finances. However, other behaviors, such as money avoidance, focus on financial status, or the idolization and even worship of money, can be flat-out detrimental. Unhealthy emotions and belief patterns can lead to all kinds of financial problems, such as financial infidelity, compulsive buying, pathological gambling, and financial dependence. Certain money scripts have been tied to lower levels of net worth, lower income, and higher amounts of revolving credit. 

Those may sound extreme, but have you ever let panic during a market downturn or economic shifts take your focus off of your long-term investing plan? Have you ever been unable to make a decision because you were paralyzed with worry and anxiety about the future? Have you ever wreaked havoc on your budget for the momentary high of acquiring something you really wanted? All of these behaviors stem from your personal money script.

Money Scripts Can Be Changed

We often think that if we had more money, we wouldn’t have any problems. But we have money problems because of how we approach money, not necessarily because we don’t have enough. This is good news! We might not be able to drastically increase our income, but we can learn to control our attitudes and perceptions. Our money scripts may be ingrained from childhood, but they are not permanent. With a focused and concerted effort, they can be changed.

The first step you must take in overcoming your money scripts is to identify them. To do this, you must become aware of your emotional responses to common financial situations. Begin to stop and notice your emotional responses to these common experiences:

How do these things make you feel? Anything that elicits strong emotions warrants further reflection. Keep in mind that negative emotions are not the only ones that can harm your financial life. Some positive emotions, like optimism and self-confidence, can bring about negative results if unwarranted and left unchecked.

How to Manage Emotional Money Decisions

The key to changing your money scripts and developing healthier money habits is learning to control your emotions. You can also build some new, healthy habits that protect you financially and incorporate them into your life. Habits and disciplines such as taking advantage of automatic savings, investing through your bank or employer’s retirement plan, scheduling regular family budget meetings, and enlisting the help of someone reliable to keep you accountable are great places to start. Eventually, you will learn how you respond to emotional triggers and you can then take steps, like mandating a “cooling off” period for yourself, before making any decisions. 

Finally, you need to be willing to forgive yourself when you make mistakes. Leave the past in the past and move forward with the new knowledge you have gained. Choosing to forgive yourself for past mistakes frees you up to be more effective with your new tools. As you begin to collect victories, both big and small, you will likely find it even easier to extend forgiveness.  

Your Trusted Financial Ally

Hiring a financial planner is a decision that requires careful thought. You want to have confidence you can trust your advisor with your hard-earned wealth. 

At Balboa Wealth Partners, we think of financial planning as a marathon, not a sprint—and we operate as your running mate for the entire journey. Our goal is to support you by keeping your emotions in check as you make investment decisions. If you’re ready to take the next step, schedule a no-obligation conversation by giving us a call at 949-445-1465 or by email at jgilbert@balboawealth.com.

Scottsdale office: 480-801-5010, info@balboawealth.com

About Jeff

Jeff Gilbert is the founder and CEO of Balboa Wealth Partners, a holistic financial management firm dedicated to providing clients guidance today for tomorrow’s success. With over three decades of industry experience, he has worked as both an advisor and executive-level manager, partnering with and serving a diverse range of clients. Specializing in serving high- and ultra-high-net-worth families, Jeff aims to help clients achieve their short-term and long-term goals, worry less about their finances, and focus more on their life’s passions. Based in Orange County, Jeff works with clients throughout the entire country. To learn more, connect with Jeff on LinkedIn or email jgilbert@balboawealth.com. 

Advisory services provided by Balboa Wealth Partners, Inc., an Investment Advisor registered with the SEC. Advisory services are only offered to clients or prospective clients where Balboa Wealth Partners and its Investment Advisor Representatives are properly licensed or exempt from registration.