KM Wealth Management

Risk Management

More than half of all Americans live paycheck to paycheck, relying on credit cards or short term loans to pay for their expenses. This indicates that a significant portion of the population is not able to build a financial cushion or handle unforeseen financial events without resorting to debt. This gets even more complicated if you consider your own mortality, as tough as it may be to look at, what liabilities will you leave behind if you were to die? Who covers the final expenses? Your mortgage? A comprehensive financial plan will cover you in all situations so your loved ones aren’t dealing with anything beyond grief.

Estate Building

About 70% of all Americans do not have any estate planning document in place? This means that the majority of people are not prepared to manage their financial situation in case of incapacitation or death. This lack of preparation can lead to a chaotic and stressful situation for your loved ones, who may be left to sort out your assets, debts, and even guardianship issues without clear guidance.

Imagine the scenario: you’ve worked hard all your life, accumulating assets like your home, stocks, insurance policies, and more. But what happens to these assets when you’re no longer around? Who inherits your property? Who takes care of your children? Without a proper estate plan, these questions remain unanswered, leaving your loved ones in a state of uncertainty and potentially leading to disputes.

Estate planning is not just for the wealthy. It’s a crucial part of financial planning that ensures your assets are bequeathed to your chosen heirs, your debts and taxes are settled, and guardianship for your dependents is established. A comprehensive financial plan will guide you through this process, helping you to list your assets and debts, review your accounts, and write your will. This way, you can rest assured that your loved ones are taken care of and your estate is handled according to your wishes.

Tax Planning

It’s a well-known fact that taxes are a part of life. But did you know that many Americans are not adequately prepared when it comes to tax planning? This lack of preparation can lead to missed opportunities for tax savings and potential penalties for non-compliance.

Consider this: every year, you work hard to earn your income, but a significant portion of it goes to taxes. Are you sure you’re taking advantage of all the tax deductions and credits available to you? Are you aware of the potential tax implications of your investments? If you were to pass away, do you know how your estate would be taxed?

Without a proper tax plan, these questions remain unanswered, potentially leading to financial stress and missed opportunities. A comprehensive financial plan will guide you through the complexities of tax planning, helping you to understand your tax obligations, take advantage of tax-saving opportunities, and plan for the potential tax implications of your estate. This way, you can maximize your income and ensure your loved ones are not burdened with unexpected tax liabilities.