Transparent Financial Solutions

"I don't think it's necessary for both of us to be in the session."

We have gotten this comment a few times.

We always have the same response: it is necessary.

Here's why:

God forbid something happened to the spouse who was active in the planning, where does that leave the other spouse?

On top of the overwhelming emotions of losing a loved one, they will have to try to navigate and understand the plans we have put in place.

In our opinion, that just adds fuel to the fire.

We can control that variable and take a proactive approach rather than a reactive one by simply having both spouses be involved in the beginning stages of the engagement.

Now, is there a time where both spouses do not have to be at each session?

Of course.

But before we get to that point, let's stay proactive rather than reactive.

You have retirement accounts that total up to $3,000,000+.

Great work!

There's just one problem.

All of this money is in tax deferred accounts.

Meaning...

Any dollar you take out of these accounts will be taxed at your ordinary income tax bracket.

"Well, how do you know what taxes are going to look like in 10 years?"

We don't. And neither do you.

They could be higher, they could be the same, or they could be lower.

The question is, are you willing to find out, or take a proactive approach to this situation?

This is more common than you would think.

Now the question then becomes, now what?

Can this be fixed? Possibly.

But there's a lot of moving pieces that go into these decisions on how to approach a situation like this, and if it makes sense.

Here are some questions to keep in mind when deciding the best strategy to move forward with:

→ How much money do I need in retirement?
→ When do I plan on retiring?
→ If I do take advantage of any strategies that will realize any tax implications, am I better off doing it now or once I retire?
→ If I take advantage of any strategies now, do the benefits long-term outweigh the short-term consequences?
→ Does this help me get closer or further away from my goals?

And most importantly, make sure your advisor and CPA are collaborating TOGETHER throughout any financial decision that may have tax implications.

Learn how the child tax credit for 2024 can potentially earn parents up to $2,000 per child.

What is the child tax credit for 2024? For tax year 2024, the child tax credit is worth up to $2,000 for each qualifying child under 17.

Panic is not a strategy.

Think about it: when was the last time you were happy with a decision you made when it was tied to your emotions?

Maybe a 1-2? Maybe.

But we would bet that the majority of those decisions were not what you would approve of.

This is especially true when it comes to investing.

For example:

January 27th 2025 - News comes out about the Chinese AI app "DeepSeek":
- S&P 500 closes at 6,012
- Within a few days, S&P 500 closes at 6,071

February 3rd 2025 - Concerns around tariffs on Canada, Mexico, and China begin.
- S&P 500 closes at 5,994
- Today (Feb 10th 2025), S&P 500 is currently trading at 6,057

If you would have "panicked" at any of these "headlines", you may have missed out on a healthy amount of opportunity/recovery for your portfolio and future earnings.

We get it. Investing can be scary.

But with the right plan and team in place, it doesn't have to be.

Don't let your emotions take your hard-earned money away from you.

Create a plan, stick to it, and adjust when necessary.

"How long of breaks are you taking between exercises?"

This is what my trainer asked me a while ago.

My answer: "I'm not sure."

Since then, I have tracked my time between exercises every day I'm at the gym.

The improvements included:
- Workout intensity
- Workout efficiency
- Targeted heart rate/fat loss

So if we know tracking anything we desire to get better at will most likely improve that outcome, why don't we do it more often?

That is a question I ask myself.

We are all guilty of it, including myself.

But here's the challenge, regardless of what you are looking to improve on (finances, business growth, health, etc.):

Try tracking specific metrics in the areas you are looking to improve on for a specific period of time.

Give it a couple of weeks and come back to me with your findings!

You will be shocked at the results. 🤯

Simple yet effective.

That is the goal at Transparent Financial Solutions whenever possible.

Example of this:

We were chatting with a business owner and she as making roughly $200,000.

Her business was set up as a LLC, but she was still filing her taxes as a sole proprietorship.

This was costing her thousands of dollars! 💰

We got together with a CPA we introduced her to and the CPA adjusted how she was filing her taxes.

Based off of the salary she began to pay herself, she was able to save $12,240 in taxes.

A simple adjustment for her, yet massively effective.

This is what makes us smile.
*Transparent Financial Solutions, LLC, nor it’s affiliates provide tax, legal, or accounting advice. Please consult with your own tax,
legal, or accounting professional before making any decisions.

Social Security can be a daunting and confusing topic to tackle alone.

The great news is, you don't have to do it alone!

Here’s the scoop on deciding when to apply for your Social Security retirement benefits and rounding up all the documents you'll need when you do.

DM us "SS" if you'd like to schedule a time to talk further on Social Security and your current situation.

Four Things You Need to Know Before Applying for Social Security in 2025 Don't unnecessarily delay or reduce your Social Security benefits because you don't know all the rules and requirements.

It's been your "slow season" in business for about a month now.

You have 3 more months until you can get back to work.

At first, you were feeling confident on how the season ended for the business.

You were determined to keep your guys on payroll through the winter.

Now, it's a new year and the winter season is looking like it may be a long one.

You're still feeling good, but beginning to get a little antsy.

"Will I have enough cash reserves to continue to make payroll for the coming months?"

"Should I start looking to pick up some side work to bring in extra cashflow?"

The thoughts begin to creep up in your mind.

We had this exact conversation with two business partners last year when we brought them on during the winter season.

So what did we do different this year?

💥 Build a cash reserve that would allow them to keep every single employee on payroll for the entire 2025 (they added 3 new employees this past summer as well).

💥 Implemented a cashflow management system that allowed the owners to take more distributions during the slow season and allow for timely tax payments without wondering where the money was going to come from.

💥 All of this completed, while still pushing towards their individual wealth building goals.

The result: Both of the owners enjoying this extra time with their family without having to stress over how long the winter is going to last.

"Right now, you owe about $50,000 in taxes. Do you think you can purchase those trucks for the business to offset this?"

We see this strategy quite often with CPAs and business owners, especially towards the end of the year.

Although it may be an effective strategy at the time, have we thought thought and determined if we REALLY need this purchase or not?

Typically, this is tends to be reactive.

Let us explain:
- You go through all of your expenses towards the end of the year, take off the deductions, etc. and find out there is still some taxes owed.
- The business owner happened to mentioned they were looking at vehicles to add to their fleet for the future.
- The CPA recommends that the purchase is made now instead of waiting.

But here's the thing: what about the affects to this purchase? Have we thought through things like:
- How often will I be using this new equipment/vehicles? What is the ROI on this purchase?
- What will be the annual maintenance cost associated with this new purchase? Can the business handle these additional costs long-term?
- How will this affect the net income?
- Etc...

This may sound like a lot, and it is. But the question then becomes, how do we avoid this?

By becoming proactive.

- Setting up a schedule with your CPA, advisor, and other financial team members at the beginning of the year of when you will be meeting with them and who will be involved
- Knowing your numbers like the back of your hand in order to make clear and forward thinking financial decisions
- Surround yourself with great help; you don't need to do it alone
- Be willing to adapt; any plan needs flexibility in it, as there will be unforeseen circumstances that will require ALL to adjust

We're 7 days into the new year. Let's make this year the year you take a proactive approach to every aspect of your business!

“Is the current action I am taking pushing me closer or further away from my goals?”

This little hack we like to introduce to many clients here at Transparent Financial Solutions.

The truth is we all have a limited amount of time on this earth.

Rather than live our days in a repeating fashion, why not dictate that ourselves?

Let’s start living life intentionally!

How can you start living your dream life TODAY?

Money touches every part of our lives, yet so many people feel overwhelmed or underprepared when it comes to managing their finances. That’s where financial education comes in.

Understanding how money works...budgeting, investing, and building wealth empowers you to:

✔️ Make smarter decisions
✔️ Reduce stress
✔️ Build the life you want

The best part? It’s never too late to start learning!

Start with small steps—read a book, listen to a podcast, and start working with someone who can guide you.

What’s one financial lesson that’s changed the way you think about money?

Don't let the lack of education/information be the reason you don't control your financial future this year. There's an abundance of help out there, you just have to be willing to seek it out.