As our clients families grow and assets accumulate it is imperative that we address planning for the future to provide for both the needs of the parents and their children Whether it is making sure that grandchildren have enough money for college ensuring an ongoing legacy to charity or providing for additional income and inheritance for children, In some circumstances financial planning for the future can be complex due to varying family dynamics or unique circumstances When families have dependents who may be considered to have special needs planning for a secure financial future for this dependent can become extremely complex and often daunting The reality is that the cost of lifetime care for someone with special needs can be…, Establish a special needs trust, Individuals with disabilities may be qualified to receive aid from both Supplemental Security Income (SSI and Medicaid However both financial benefits are subject to “means testing” which oftentimes disqualifies individuals from receiving aid if they are able to earn a certain level of income or have assets of their own exceeding $2000 (some assets are exempt Funding a , special needs trust,  (also known as a supplemental needs trust is one way parents can provide for additional financial support to their children without reducing other benefits that they may be able to qualify for at some time A special needs trust is created for an individual with disabilities and funded with assets that are not owned by that individual Typically these trusts are funded upon the parent(s’ passing…, Supplement income with an ABLE account, An , ABLE account,  is a tax-deferred savings vehicle to benefit individuals with disabilities To qualify for one of these accounts the individual must have been diagnosed with their disability prior to the age of 26 Similar to a 529 College Savings Plan assets within the ABLE account grow tax-deferred and are non-taxable upon distribution as long as they are used for qualified expenses The maximum contribution per…, Other important considerations, Providing adequate financial support is only a part of the planning that concern parents of children with special needs Parents want to make sure that their child is cared for and living with the highest quality of life We recommend that parents should consult with an attorney who is specialized in this field and with their wealth advisor in order to fully integrate their overall estate and…, Published January 2025, 1  https//wwwssagov/ssi/spotlights/spot-ablehtml#~text=An%20eligible%20individual%20may%20haveexemption%20(%2419%2C000%20in%202025

Tax-advantaged investment accounts are an invaluable tool for the management of our clients’ wealth These vehicles shelter ongoing investment growth from taxes and may provide a tax benefit for contributions or withdrawals , Investment accounts such as Roth IRAs and after-tax employer-sponsored retirement plans provide for “delayed gratification” in that they are funded with after-tax dollars grow tax free and withdrawals are not subject to taxation However other types of accounts including Traditional IRAs and pre-tax employer-sponsored retirement plans (like your 401(k plan provide an immediate tax benefit as…, “In kind” transfers, For these clients we may recommend that the required distribution be processed as an “in kind” transfer of an existing investment When an “in kind” distribution is used shares of a stock bond or mutual fund are transferred from a qualified account to a non-qualified account The reported taxable distribution is the market value of these shares on the date of the transfer Once this is complete the…, “Qualified Charitable Distributions” (QCDs, Charitably-minded investors subject to RMDs can take advantage of qualified charitable distributions (QCDs where some or all their distribution (including but not limited by their RMD is donated directly to a charity In these situations the amount donated can be used to satisfy the annual RMD requirement but is excluded from taxable income This approach is limited to $100000 per year and in most…, Roth IRA conversions, Another strategy is to convert some or all of a Traditional IRA (subject to RMDs to a Roth IRA (which is not subject to RMDs In these situations a taxpayer elects to pay ordinary taxes on a portion of their IRA to “convert” this amount to a Roth IRA account This conversion is not subject to early withdrawal penalties (for account owners younger than age 59½ and is available to anyone regardless…, Published January 2025, Sources and footnotes 1 Please confirm when you should begin taking RMDs with your Wealth Advisor or tax professional These rules have been updated with SECURE 20 and different rules apply for individuals who were born in or before 1950 https//wwwwsjcom/articles/senate-spending-bill-includes-significant-changes-to-u-s-retirement-system-11576780736 https//wwwirsgov/retirement-plans/retirement-plan…

Praba Balachandran serves as Senior Vice President Corporate Treasurer at Mesirow In this capacity he manages accounts payable treasury and payroll with focus on special projects and process improvements Prior to becoming Senior Vice President Corporate Treasurer Praba served as Senior Vice President Accounting Operations and Vice President of Treasury Operations Praba has 20 years of experience…

Business owners often juggle a multitude of concerns/tasks such as marketing HR bookkeeping customer service and inventory management As the company grows so does the staff and leadership team as owners begin to delegate and spend more time on managing versus executing, In addition to the companys growth owners must also focus on growing their personal wealth Too often we see owners so focused on their businesses that they put off long-term planning for themselves which can have significant consequences for their families and their company especially in the event of unforeseen circumstances Personal wealth planning is critical in all phases of your career and…, Prepare, Separate business and personal finances, — Although your personal financial life is intertwined with your business keep your finances separate and plan for each accordingly, Build an emergency fund, — On the personal side we recommend that owners keep six months of personal expenses set aside (maybe more if youre in the start-up phase  Cash flow on the business side may take a downturn you may not be able to take your typical distributions and you will want to have enough in reserve to protect yourself and maintain your personal cash flow needs We recommend using accounts where you can earn…, Plan, Prepare and manage your personal finances (income statement cash flow projections and balance sheets just as you would for your business, — Know what you need on the personal side so you know how much of your own capital you can add to the business if needed for additional growth Many business owners want to reinvest all their money into the business but this may be riskier than intended Make sure to pay yourself and diversify some assets away from the business focusing on your personal long-term financial goals  Consider whether…, Think long term, — don’t forget about your own retirement planning When you start and grow your company you may not yet be thinking about your eventual exit but you need to Will you phase out of the business over time Will you have a child or children who are interested in taking over Will you sell the company You may or may not come into a substantial financial windfall with an eventual sale so plan accordingly…, Protect, Plan for the unexpected and protect your family and your assets, — What happens to your business if you become disabled or die unexpectedly If the bulk of your assets are tied up in the company the business may need to be sold quickly to help provide for your family pay off debt pay medical expenses taxes or estate settlement costs Consider additional planning to help mitigate these risks, Insurance planning,  A quick sale may mean the business sells for much less than it may be worth If you have a partner in the business how do you protect each other against these unforeseen events In addition to disability and death you must consider liability insurance to protect your assets and the company Do you need additional coverage What about protecting the business if there is a disaster and you need to…, Estate planning,  Estate planning allows you to clearly define how you would like your assets managed in the event of your incapacity or death How do you protect your assets How do you provide for your family How do you protect the company , Business succession planning, What is your succession plan Do you have charitable intentions There are many techniques and tools available with advanced planning before the sale of a business that can leave you and your family with more after-tax dollars at your disposal  , Build a team of advisors, — Surround yourself with a team of experts (financial advisor CPA attorneys insurance agent etc who work together to help you prepare plan and protect Your business and your personal finances are inextricably linked Work with a team to prepare your plan Wealth planning is dynamic — dont set it and forget it Lives change businesses change Your team will work with you year in and year out to ensure…