Client Profile: How I Help My Clients Retire Early

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By Jeff Gilbert

At Balboa Wealth Partners, our goal is to help our clients retire and enjoy their golden years the way that they want to. Often, our clients come to us with an array of retirement goals that may seem difficult to obtain. But in the end and with careful planning, our clients are able to look forward to retirement with confidence. This case study examines just that: our clients had a goal of retiring early. With thorough risk analysis and wealth management planning, we were very happy to have helped our clients work towards achieving their objectives. 

The Client

These particular clients were a couple who, for privacy reasons, we will call Susan and Greg. Susan and Greg had both been married before and had children from previous marriages but they had none with each other. I had been working with Susan longer than they had been married. 

Susan and Greg were well suited for each other. They entered their marriage with about the same amount of assets and were working hard to blend their finances and their families by making all three children from their previous marriages equal beneficiaries in their estate plan. Susan and Greg had major positions with their corporate employers and both have been successful at climbing the corporate ladder for over 30 years. 

The Goal 

Susan and Greg both wanted to retire early from their careers, and after three decades working for their respective companies, they deserved some rest and relaxation. Susan was planning to retire at age 58, while Greg was planning his retirement at age 60. 

While these are reasonable goals for any couple, Susan and Greg came to me with this plan less than two years before their desired retirement age. We had much to accomplish and sort out before Susan and Greg took that first step toward retirement.  

How We Helped

Luckily, I knew Susan and Greg from working with them at my previous firm,. Unfortunately, at the old firm Susan and Greg did not feel like they were getting the personal attention and planning needed for them to achieve their retirement goal. So in early 2019, they reached out to me and asked if we could work together again to maintain their wealth management plan. 

I was delighted to re-engage with my old clients and further develop their retirement strategy. With my help, we ironed out a wealth management and retirement plan that allowed both Susan and Greg to retire early.

It was important to this couple that they maintain their upscale lifestyle into retirement, and with my help, Susan and Greg have been able to do just that. This couple is now on track to retire in about 18 months, right on time with their goal. They live each day confident that they have done the right things in accumulating assets, and I look forward to the day that we will all celebrate their retirement.

With all our clients, we are diligent about keeping their financial plan updated and accurate. We tend to refresh it every three to four months and work hard to tweak it to reflect all worst-case scenarios. We also check in with our clients on a monthly basis and look for the optimal financial tools to use when any large spending is needed. 

We’re Here for You

At Balboa Wealth Partners, we strive to provide our clients with the very best financial tools available and unobstructed guidance to maximize their wealth management strategy. If you are interested in working with us, give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com. You can also contact us at the Scottsdale office at 480-801-5100, 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 nearly 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.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice. Neither firm is affiliated.

How Much Does Long-Term Care Really Cost in California?

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By Jeff Gilbert

Have you ever cared for an aging grandparent, parent, sibling, or spouse and thought, “Who is going to take care of me when I struggle to get out of bed?” or “How much will it cost my family?” If so, you are not alone. Long-term care has quickly become one of the most pressing concerns for adults in America. With advances in medicine and technology allowing people to live longer, as well as the collective retirement of the baby boomer generation, 7 out of 10 people turning 65 this year will require some form of long-term care in their lifetime. (1)

Unfortunately, most families will not have a plan for how to handle the rising costs associated with aging. So, what exactly is long-term care and how can we make sure we are mentally, emotionally, and, most importantly, financially prepared when the time comes?

What Is Long-Term Care?

The U.S. Department of Health & Human Services defines long-term care (LTC) as “a range of services and supports you may need to meet your personal care needs.” (2) This includes help with everyday tasks like eating, bathing, getting dressed, and using the bathroom (known as custodial care) as well as medically necessary care like physical therapy, intravenous injections, and catheter care. (3)

While the length and level of care fluctuates depending on each person’s unique health situation, aging is something that is common to everyone. As we age, the risk of dementia and disease increases exponentially, (4) and if there is no plan in place, the burden (and costs) of care usually falls to friends and family. 

In 2015, it was estimated that over 43 million people in the U.S. had been an unpaid caregiver in the last 12 months. In fact, about 80% of all long-term care is provided by unpaid caregivers, with roughly 14% of those caregivers already over age 65 themselves. (5)

How Much Does Long-Term Care Cost?

Care is most often provided by unpaid friends, family, and neighbors due to the hefty cost of professional LTC services. This cost varies greatly depending on your health condition(s), type of care required, and where you are located. The national annual average ranges from over $43,500 for care in an assisted living facility to over $92,000 for a private room in a nursing home. (6) The average annual costs in California are approximately $60,000 and over $137,000, respectively, with those numbers projected to reach over $93,000 and $190,000 by 2040! (7)

These costs can be staggering, especially if both spouses require LTC. It can be overwhelming and out of reach for individuals and families to accommodate, thereby leaving many to choose between paying out of pocket or becoming caregivers themselves. 

How to Plan for Long-Term Care?

There are many options to help mitigate the costs of LTC and provide peace of mind for you and your loved ones.

Medicare and Medi-Cal provide some assistance, but it’s not much. Medicare does not cover custodial care or assisted living facilities, and Medi-Cal has strict income eligibility requirements that make it difficult to qualify. Private health insurance usually doesn’t cover LTC at all.

Because of these limited coverage levels, it is becoming increasingly common for families to purchase long-term care insurance, or add riders to existing life insurance or annuity policies.

No matter which option you consider, it is important to plan ahead. Premiums increase as your risk of serious illness increases, meaning younger people typically have lower overall premium costs. Because of this, LTC planning is generally recommended for individuals between the ages of 50-60. 

With roughly 6 million Californians currently over the age of 65, (8) it’s more important than ever to assess your family’s LTC needs. 

How We Can Help

Thankfully, just as we are not alone in aging, we do not have to be alone in planning for the possibility of long-term care. Balboa Wealth Partners is here to help guide you through the process. Call us at 949-445-1465 or email Jeff at jgilbert@balboawealth.com.

You can also reach out to our Scottsdale office at 480-801-5100 or info@balboawealth.com for a no-obligation conversation and a complimentary risk assessment here.

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 nearly 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.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice. Neither firm is affiliated.

______________

(1) https://acl.gov/ltc/basic-needs/how-much-care-will-you-need

(2) https://acl.gov/ltc/basic-needs/what-is-long-term-care

(3) https://www.cms.gov/Medicare-Medicaid-Coordination/Fraud-Prevention/Medicaid-Integrity-Education/Downloads/infograph-CustodialCarevsSkilledCare-[March-2016].pdf

(4) https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3385995/

(5) https://acl.gov/ltc/basic-needs/who-will-provide-your-care

(6) https://acl.gov/ltc/costs-and-who-pays/costs-of-care

(7) https://www.genworth.com/aging-and-you/finances/cost-of-care.html

(8) https://www.cahf.org/About/Consumer-Help/Guide-to-Long-Term-Care

Our 2021 Midyear Market Update

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By Jeff Gilbert

If 2020 taught us anything, it’s that we can’t predict the future, nor do we have control over many of the things we once took for granted—things like how we work, how we go to school, and even how we interact with our loved ones. With those lessons fresh in our minds, most of us entered 2021 with a bit of apprehension. 

Although we didn’t know what to expect, we’re now halfway through the year (believe it or not) and on our way to putting the COVID-19 pandemic behind us. July is the perfect time to take stock of what’s happened so far in 2021 as we continue recovering—emotionally and economically—from the pandemic. 

Stock Market Performance

As vaccine rollouts have allowed many businesses to return to normal, some experts believe we may be entering a booming economy. (1) Stock market performance has been mildly volatile in the first half of this year with an overall trend toward growth. The S&P 500 reached its highest level this year on May 7, with a year-to-date return of 14% as of June 4. (2) The Dow Jones has also shown overall growth this year and is up 15% as of June 4. (3)

Meanwhile, the NASDAQ has shown greater volatility with a yearly low of -2.17% in early March, up to 9.7% at the end of April, and ending at 8.79% as of June 4. (4) Many experts have warned that while they are optimistic about market performance in 2021, that performance will likely be riddled with volatility throughout 2021 and in the coming years. (5)

A Shaky Return To Normal Employment Levels

It has been generally expected that as businesses reopen to full capacity, the number of unemployment claims and levels of unemployment will return to normal. As many of us have seen in the news, however, this is currently not the case. (6) Along with other businesses in the hospitality industry, restaurants are especially struggling to replace their workers and remain understaffed in the face of increasing demand from consumers.

Some commentators believe workers are reluctant to return to work because of continued unemployment assistance from federal and state governments. Others argue that many workers are unable to return to work yet because they are still wary of the coronavirus, are unable to find affordable childcare, or now have the time to look for more stable, higher-paying work outside of the hospitality industry. 

Whatever the reason for the worker shortage, worker benefits and wages may undergo drastic changes in 2021 and beyond as the economy returns to normal. In any case, getting workers back into the workforce remains a key component of the U.S. recovery plan.

Interest Rates & The Federal Reserve

Interest rates continue to remain low, as the Federal Reserve has promised. In an effort to encourage consumers to keep borrowing, the Fed has kept interest rates near zero since the onset of the pandemic. They have stated they will likely not raise rates again until 2023, when it is more likely that inflation rates will reach desired targets. (7)

For now, the near-zero interest rates may be attracting first-time homebuyers who have been able to weather the economic pressures from the pandemic. However, home prices have surged 13.2% over the past year, (8) igniting some fears that a housing bubble may be looming.

How Should You Respond?

We’ve always said that market performance is impossible to predict with accuracy. As 2020 and 2021 have taught us, market performance may be impossible to predict at all. The truth is, we never know what lies ahead, but that shouldn’t prevent us from taking the steps to protect ourselves and pursue financial freedom.

Now more than ever, it’s important to know you’re making the financial decisions that are moving you toward your goals. At Balboa Wealth Partners, we specialize in helping our clients reach financial independence using sound financial strategies that align your day-to-day decisions with your long-term financial plan. If you’d like to see how we can help you, I invite you to 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.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice. Neither firm is affiliated.

_____________

(1) https://www.cnbc.com/2021/04/09/the-economy-is-on-the-cusp-of-a-major-boom-and-economists-believe-it-could-last.html

(2) https://www.google.com/finance/quote/.INX:INDEXSP?sa=X&ved=2ahUKEwjI5a-z8oDxAhWbXc0KHQ2PCWYQ3ecFMAB6BAgiEBo&window=YTD

(3) https://www.google.com/finance/quote/.DJI:INDEXDJX?window=YTD

(4) https://www.google.com/finance/quote/.IXIC:INDEXNASDAQ?window=YTD

(5) https://www.morganstanley.com/ideas/stock-market-outlook-2021

(6) https://thehill.com/policy/finance/economy/556235-chamber-of-commerce-worker-shortage-crisis-deepening

(7) https://apnews.com/article/fed-expects-key-rates-near-zero-through-2023-9b9a335a1ce05d69fc97a1d6197371ab#:~:text=WASHINGTON%20(AP)%20%E2%80%94%20The%20Federal,markets%20about%20potentially%20higher%20inflation

(8) https://www.carsonwealth.com/insights/market-commentary/market-commentary-home-prices-surge-over-previous-year-disposable-income-dips/

Welcome Our Two New Advisors!

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By Jeff Gilbert

Last month, we joyfully announced the opening of our second office location in Scottsdale, Arizona. Now we get to introduce you to the two incredible advisors who have joined our team and will be providing Balboa’s unparalleled service to our Scottsdale clients. 

Meet David

David Mowad originally planned to play golf professionally, but wealth management became his true calling and he’s not sad about it. A proud Arizona resident for 32 years and counting, David graduated from Arizona State University with a bachelor’s degree in business and has been serving clients in the financial services industry for more than 25 years. Known for his efforts to keep the wealth management process simple, David strives to help his clients accomplish their goals through the creation and preservation of wealth. 

David and his business partner, Alex Aretakis, merged their practices over a decade ago so they could provide even more value to their clients and build a business on the foundation of trust and integrity. They are committed to conducting themselves in a manner that is deserving of their clients’ confidence, earning their trust each and every day.

David and his wife have four wonderful children. Outside of the office, he loves spending time outdoors, hiking, golfing, and coaching his kids in various sports. 

Meet Alex

Originally from New York, Alex relocated to Arizona in 2000. After graduating from St. John’s University with a Bachelor of Science in Finance, he got his start in the financial industry with EF Hutton, Shearson Lehman Citigroup, on the trading floor of their Fixed Income division at the World Trade Center. He then pursued wealth management so he could help individuals through the many financial decisions weighing on their minds and provide a road map for their ideal future. 

Both Alex and David’s fathers proudly served our country in the military, the U.S. Navy and U.S. Marine Corps (Semper Fidelis, “Always Faithful”). The ethics their fathers passed on to them have translated into a practice where family values and commitment are important above everything else.

Their transition to an RIA has elevated this level of commitment as fiduciaries. Their service model is driven by a client-first approach, always putting their clients’ interest ahead of their own with a duty to preserve good faith and trust. Alex and David provide estate, business, and retirement planning, with a specific emphasis on fee-based asset management. They firmly believe in a long-term approach to investing based on each client’s specific financial needs, goals, and tolerance for risk. They utilize a broad spectrum of resources and strategic partners that include wealth planning, investment strategies, all designed to provide unique solutions.

Alexander and his wife are active in a variety of charitable organizations with a focus on family, cancer, and special needs. He’s also active within his community as a member of St. Bernard’s of Clairvaux Catholic Church. Their daughter is an accomplished honor student who is also quite active in the community.

A New Partnership

We are proud to have David and Alex on our team. We believe you will benefit from the passion and expertise they bring and we hope you get a chance to welcome them! If you want to experience the difference Balboa Wealth Partners can make in your finances, 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 nearly 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.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice. Neither firm is affiliated.

Announcing Our Second Office Location!

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By Jeff Gilbert

After years of serving our loyal clients out of our California office, we are excited to announce that we have opened a second location in Scottsdale, Arizona. As our firm continues to grow, we want to be able to expand our offering and build a presence in the great state of Arizona.

6263 N Scottsdale Road

Suite 265

Scottsdale, AZ 85250

Phone: 480-801-5100

Take a look at the photos below for a sneak peek of the new location! 

If you have friends or family members in Arizona you know that would benefit from the dedication and service that defines Balboa Wealth Partners, we’d love to meet them! They can reach us at 480-801-5100 or 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 nearly 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.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice. Neither firm is affiliated.

Top 3 Financial Concerns Women Business Owners Face

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By Jeff Gilbert

In 2021, surveys show that 31% of all small businesses or franchises in the U.S. are owned by women. (1) This number has increased by 4% since 2020, which is inspiring given the pandemic and economic turmoil the majority of business owners have faced over the last year. 

Although most business owners work extremely hard and overcome significant obstacles to make their businesses succeed, women face unique challenges in the business world that most men simply don’t have to reckon with. 

As longtime investment advisors, we know the financial concerns women entrepreneurs contend with on a daily basis. Below are the top 3 challenges we’ve seen women business owners face (and overcome) over the years.

1. Access To Funding

Research is finding that although more women entrepreneurs are applying for business loans, the loans they’re granted are more than 40% lower than loans approved for male entrepreneurs, despite a trend for higher average operating expenses within women-owned businesses. (2)

Not to mention, women entrepreneurs have a more difficult time accessing funding from venture capital investors. (3) Reasons for this particular challenge are varied, but one likely explanation may be because male investors prefer to invest in male-owned businesses. Conversely, female investors may be more inclined to invest in women-owned businesses. (The psychological term for this phenomenon is the similarity-attraction effect.) (4)

With fewer women venture capitalists, female entrepreneurs have a smaller pool of potential investors to pitch their ideas to.

2. Not Charging What You’re Worth

Because women have had to work so hard to break glass ceiling after glass ceiling in business and industry, they’ve been inundated for decades with subtle and not-so-subtle messages that their work is less valuable. Oftentimes, women business owners charge less for their services or products because they’re afraid potential consumers will balk at more expensive prices. In fact, one survey found that women who work for themselves earn 28% less than their male peers. (5)

To rectify this, women business owners must charge prices that similar businesses in their industry are charging. And if potential clients or customers try to negotiate, move on. More than likely, there are other prospects out there willing to pay you what you’re worth.

3. Knowing When To Scale

Working women everywhere know the challenges of balancing career responsibilities with domestic responsibilities, and perhaps no one knows this better than the female business owner. Despite ever-increasing numbers of women in the workforce, many women are still expected (or expect themselves) to shoulder most of the childcare and housework burdens.

With this ingrained mindset, it’s no surprise that women business owners have high expectations for themselves to be able to run their business entirely on their own. But not only is this mindset likely to result in burnout, it’s also likely to hold you back from growing your business and making more money.

For most business owners, there comes a time when it’s in your best interest to spend more time on money-making tasks and less time on administrative tasks. Although hiring outside help might feel counterintuitive at first, knowing when it’s time to scale your business can result in much greater returns down the road.

How We Help

At Balboa Wealth Partners, we’ve helped dozens of female entrepreneurs overcome these challenges and more. We provide financial planning services for both your business and your personal life so you can spend more time doing what you do best. To find out how I can help, give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com to schedule a no-obligation conversation.

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 nearly 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.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice. Neither firm is affiliated.

__________________

(1) https://www.guidantfinancial.com/small-business-trends/women-in-business/

(2) https://www.biz2credit.com/research-reports/women-owned-business-study-2020

(3) https://www.businessnewsdaily.com/5268-women-entrepreneur-challenges.html

(4) http://sk.sagepub.com/reference/socialpsychology/n517.xml#:~:text=Definition,to%20be%20around%20the%20person

(5) https://www.freshbooks.com/press/data-research/women-in-the-workforce-2018

How Does An Independent Financial Advisor Benefit You?

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By Jeff Gilbert

As a holistic financial management firm, we pride ourselves in offering the very best to our clients when developing a wealth management plan that works for each individual and their families. We can offer great guidance based on our clients’ needs and dreams because we are  independent advisors and our priority is doing what is best for you, our clients. Fortunately, we are not beholden to any particular strategy or agenda because we are not tied to any investment firm or forced to push financial products that aren’t the best fit for our clients. 

We want our clients to know that as independent financial advisors and fiduciaries, we are held to the highest standard of care and will always work in the interest of our clients. Below, we have outlined a few reasons why independent advisors will benefit you in developing and maintaining a wealth management plan for you and your family. 

Unbiased Advice Based On Your Finances

As independent advisors, the guidance we offer our clients is objective and unbiased because we are not tied to any particular financial company or investment firm. This means we can take a look at your financial picture and talk to you about what you want for your future and recommend financial products that will help you from a myriad of different sources. We don’t stay within one investment firm or recommend products to meet some sort of quota. As such, you can count on us as independent advisors to give you access to the products that are tailor-made to fit your needs.  

Transparency In Fees

Typically, independent financial advisors operate on a compensation model that is fee-only. This means that our only incentive is growing our client’s wealth and choosing the financial tools that benefit our client. Again, we are not beholden to recommend products that will benefit ourselves financially in any way. 

Complex Financial Needs Require Complex Plans 

Many of our clients enjoy a high net worth, and as such, their financial plans require a variety of different financial tools. Luckily, as independent advisors with many years of experience, we know the right financial tools for any client with a complex financial outlook. We also have the knowledge to design financial and wealth management plans that work for people and families who have complicated financial situations.  

We Build Relationships 

At Balboa Wealth Partners, we know our clients personally and have developed personal relationships with many of them. Because of this, we only offer advice that is aligned with our client’s goals and make a point to keep up with any change in our client’s situation that could affect their financial plan.  

Over the last 30 years, we have built a practice that is based on trust and mutual respect, and we hold ourselves personally responsible to our clients. They know they can always count on us. 

If Balboa Wealth Partners sounds like a good fit to develop and maintain your wealth plan, give us a call at 949-445-1465 or email us 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 nearly 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.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice. Neither firm is affiliated.

Personal IRA Vs. Employer-Sponsored Retirement Plans

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By Jeff Gilbert

I’m willing to bet that after the year we’ve just had, you’re looking forward to an enjoyable retirement! But not so fast. Those golden years don’t come without active planning and saving. There are countless retirement savings options—the problem is finding the right account for your unique needs. 

The two most common retirement savings vehicles used to maximize growth and ultimately reach your goals for retirement are the Individual Retirement Account (IRA) and Employer-Sponsored Retirement Plans (ESRPs). Let’s go over the 3 key differences between these accounts so you can make the best choice for your particular situation.

1. Contribution Limits

You want to save as much as possible, right? Well, that might determine what account you choose. One major difference between a personal IRA and an ESRP is the contribution limit. For an IRA, you can contribute up to $6,000 per year if you are under the age of 50, or $7,000 per year if you are age 50 or older.

On the other hand, the maximum annual contribution for ESRPs is $19,500, or $26,000 if you are over the age of 50. And that’s just how much you can contribute; anything your employer chooses to match or contribute doesn’t count toward that limit.

Although it is wise to make sure you contribute enough to receive any match your company

offers through an ESRP and max out those accounts each year, if possible, anyone with a taxable income can contribute to an IRA as well. This increases your total contribution limit to $25,500, or $33,000 for those 50 and older, each year when you max out both an IRA and an ESRP.

2. Investment Options

IRAs are accounts you open and can control, which means you have quite a few more options. Stocks, bonds, mutual funds, and index funds to choose from compared to what your ESRP offers. Employers select a certain number of investment options to offer and that is what you get, which means you tend to have more flexibility with where your money is invested with an IRA.

Choosing investment options using an IRA and contributing the full $6,000 per year to that account before making maximum contributions to your ESRP could be a wise strategy, depending on how advantageous the employer-selected options are for your financial situation. Also, watch out for fees with your ESRP funds. With fewer options, you may not have as many low-fee choices as an IRA.

3. Tax Implications

Would you like to save more on taxes? That’s what I thought. How you save your money impacts your tax treatment, so pay attention to this point.

Many employers now allow their employees to choose how to invest their money: in a traditional ESRP or Roth ESRP. With traditional ESRPs, you can claim a deduction on the full amount of your contribution, no matter what your annual income or tax filing status is currently. The difference between contributing to a traditional versus a Roth account is that you are using pre-tax dollars for traditional contributions and post-tax dollars if you contribute to a Roth ESRP. Contributions using pre-tax dollars allow you to claim the deduction now and be taxed on your withdrawals later. Alternatively, if you contribute to a Roth account using post-tax dollars, all growth and contributions grow tax-free, but you are not able to claim a tax deduction. This is also true of Roth and traditional IRAs.

This is where things can get confusing. If you are covered by an ESRP and make more than $75,000 as a single filer or more than $124,000 as a joint filer, you will not be able to claim any deduction for contributing to a traditional IRA. If you don’t have the option to contribute to an ESRP, you can claim a deduction on your contributions to an IRA, but there are a few limitations on income, which you can see here.

Are You Taking Advantage Of All Your Retirement Options?

There are no do-overs when it comes to retirement, and the savings options can get overwhelming. These options have a long-term effect on growing your portfolio and your ability to reach financial goals to live the retirement lifestyle you want and can enjoy. So if you’re not sure what all your retirement options are, or if you’re not certain you’re maximizing them, don’t stay in the dark! 

If you need help choosing the best way to grow your wealth, we at Balboa Wealth Partners are here for you. We specialize in handling the many aspects of retirement planning, taking the burden off of you. If you choose to partner with us, we will navigate your retirement account opportunities and maximum contribution limits and strategize appropriately. To get in touch, give me a call at 949-445-1465 or email me at jgilbert@balboawealth.com. I look forward to hearing from you soon!

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 nearly 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.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice. Neither firm is affiliated.

It’s A New Year! Is It Time To Reevaluate Your Financial Plan?

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By Jeff Gilbert

A new year is often a time for fresh starts, intentional planning, and renewed motivation to conquer goals and accomplish things that are important to you. And after the year we just had, a fresh start is just what we need. As you transition into 2021 and all this year will bring, take some time to think about your long-term plans and reevaluate your decisions, especially in the following key areas.  

Tax Strategy Planning

In the wake of a major election and a change in administration, questions naturally arise about how tax laws could change and how that will affect your wallet. If tax rates increase for your tax bracket, you may want to shift some of your savings allocations to tax-deferred vehicles such as a 401(k) or a traditional IRA. The recent stimulus bill contains several tax law changes, including the ability to roll forward unused FSA funds from 2020, (1) 100% deductible business meals, and penalty-free retirement plan withdrawals for families affected by declared disasters. (2) Because of how often new tax legislation is introduced, tax planning is not a one-and-done deal. Revisit your plan to make some shifts that will help you in the long run. 

Tracking Retirement Funds

As we learned from the Great Recession, it is important to stay proactive when it comes to your cash flow and retirement funds. The temptation to adopt a “set it and forget it” approach can create financial blind spots, especially when the demands of work and family make it challenging to carve out time to review finances. If you have not kept track of your investment accounts, retirement plan balances, and other assets, commit to start keeping a pulse on the health of your family’s finances at least once a quarter, if not monthly.

Insurance Coverage

Inadequate insurance coverage is a common issue that can derail retirement plans, especially in the event of unforeseen health problems or injuries that force individuals to retire early. A 2020 study found that only 54% of Americans have life insurance, and that 40% of policyholders reported that they wished they had bought coverage sooner. (3) Life insurance policies are not all created equal, and many policies offer living benefits that you can draw on if you need help paying medical bills or other expenses. It’s prudent to make sure you have the proper policies and coverage for your unique situation.

Estate Planning

Regularly reviewing your estate plan is a crucial component of your financial strategy. Life moves quickly, and it is all too easy to forget how much can happen in a short period of time. Arrivals of new children or grandchildren, health conditions, asset purchases or liquidations (such as buying a new home), marriage/divorce, retirement, unemployment, remarriage, and deaths in the family can make a significant impact on the big picture of your estate plan. 

Let Us Partner With You

As we settle into the new year, it’s wise to anticipate and prepare for the changes that every season of life brings. If you are ready to reassess your long-term goals or would like to discuss how to build a solid foundation for your future, 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 nearly 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.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice. Neither firm is affiliated.

________________

(1) https://www.marketwatch.com/story/covid-relief-bill-will-let-fsa-money-roll-over-into-2021-a-win-for-parents-and-those-with-live-in-elderly-loved-ones-11608825806#:~:text=Workers%20could%20set%20aside%20up,year%2Dend%20or%20be%20forfeited.

(2) https://www.journalofaccountancy.com/news/2020/dec/tax-provisions-in-covid-19-relief-bill-ppp-and-business-meal-deductibility.html

(3) https://www.policygenius.com/life-insurance/life-insurance-statistics/

Happy Holidays From Balboa Wealth Partners

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By Jeff Gilbert

It’s been a wild ride, but we have finally arrived at the holidays. Our team at Balboa Wealth Partners would like to take this opportunity to wish you and yours a happy holiday and a refreshing new year! The holiday season, your treasured traditions, and pretty much everything about this time of year may look different in 2020, but we believe there is still cause to celebrate. 

Look For The Good

Most of us are probably glad to see this year go, but hardship can also bring opportunities to grow, adapt, and reprioritize what’s most important to you. Were you able to cut your commute out of the equation and have more time to spend with your family? Did you reconnect with friends virtually? Did you start new traditions and make unexpected memories? Life is challenging right now, but reflect on all that this year has brought and go into 2021 focusing on the good things that have come from every victory and trial.

It can be hard to look forward to a new year with so much uncertainty still on the horizon. Let’s just say that new year’s resolutions will likely look very different this year! Regardless, think about what you want 2021 to hold for you. The end of the year is an opportune time to adjust your goals, dream about the future, and find renewed motivation. Use this season to recharge your batteries, get some well-deserved rest, and develop a vision for the coming year that isn’t based on external circumstances.

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 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 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 achieve your financial goals in 2021. Here’s wishing you joy and laughter during the holiday season and a happy new year!

Let’s Connect

To check in on your financial plan before the end of the year and make sure your finances are prepared for 2021, don’t hesitate to reach out to us at 949-445-1465 or email me at jgilbert@balboawealth.com. We look forward to hearing from you!

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 nearly 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 Southern California as well as Arizona, Oregon, and Washington. 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.

Securities offered through Chalice Capital Partners, LLC, member FINRA, SIPC.

Balboa offers advisory services independent of Chalice. Neither firm is affiliated.