Engineers are known for their ability to solve problems. But the financial puzzle is complicated. And it’s not just about your income, expenses, credit card debt, and savings account balances. It’s also about taxes, retirement investments, and estate planning. These are all important pieces of the financial puzzle that can affect how you feel today or in 10 years from now. A financial advisor can help engineers understand their finances so they know what steps to take next to pursue their path to financial independence!

In this article, I’ll outline what you can expect from a financial advisor and how we build relationships with clients like engineers. Find out the 8 Reasons why Engineers should work with a financial planner.

Who is a Financial Advisor?

A financial advisor is a person who helps individuals create, build, and maintain wealth over time. They’re experienced in understanding your needs and can help you identify opportunities to get from where you are today to where you want to be tomorrow in 5, 10, or even 20 years!

They also help preserve the wealth you’ve already accumulated with services like estate planning and insurance. In this way, a financial advisor can help engineers preserve their hard-earned money from being diminished by taxes or other financial missteps.

How do Financial Advisors work with Engineers?

Engineers are busy! On any given day, they’re working on multiple projects, designing new products for clients, and completing their daily tasks so they can go home to their families. So it becomes hard for them to take care of their finances by themselves. That’s why they may want to work with a financial advisor who takes the time to understand their priorities, goals, and needs to build relevant strategies that focus on their best interests.

Financial advisors also work closely with clients like engineers to help them understand financial concepts like risk tolerance, market volatility, tax considerations, retirement savings options (like Roth IRA’s, SEP IRA, 401(k)s, Defined benefit account, Traditional IRA, Simple IRA, 457, 403(b)), estate planning tools (like trusts and wills), and insurance products (like life insurance).

Why do engineers need to work with a financial advisor?

Being good at numbers is not enough when it comes to financial planning. Engineers need guidance to help them focus on their future. A financial advisor can help you with that by creating a personalized plan for your finances. Here are some of the things you get by working with a financial advisor:

1. A financial advisor can help engineers stay disciplined with a financial plan:

Engineers are known to be the best problem-solvers because they take a systematic approach to move forward. The same thing applies when it comes to finances. Without a plan, it’s easy for engineers to become overwhelmed by their debt or savings goals. When you work with an advisor, they’ll create a financial plan for your money that will help you stay disciplined throughout the year.

2. A financial advisor can help you save time

Most engineers spend 40+ hours per week working on projects at their job. And that’s not including meetings, administrative work, and other responsibilities. That’s a lot of time! So one of the best things about working with a financial advisor is they can save you time by helping you make sound financial decisions. With their guidance, you can potentially reduce debt and boost your retirement savings by sticking to your plan.

3. A financial advisor can help engineers avoid common financial mistakes:

An important part of working with a financial advisor is making sure they understand your personality, values, and goals. Then, advisors use their knowledge of these factors along with your financial situation to help you make smart money decisions. This way, they can keep you from making common mistakes like investing in high-risk ventures or spending more than you should on activities that may not put you on a path to financial independence.

4. A financial advisor can help engineers gain confidence in their finances:

A lot of engineers enjoy their work. But it can be stressful at times especially when deadlines are involved. It’s no different in the world of finance either. An advisor works with you to create a personalized financial plan that can help reduce your stress by giving you confidence knowing that you’re on track for your biggest life goals. Working with a financial advisor is an important step for engineers who want to make sure their money is well-managed.

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5. A financial planner can help you with retirement planning:

Retirement is a big deal for engineers. Not only do they want to stay busy by continuing to work but they also want their money to last throughout the years. Working with an advisor for retirement planning can help you figure out how much you need to save, and how to invest those assets using a rational approach.

And while some engineers may be good at making their own investment choices, it’s important to remember that retirement planning is about more than just the numbers. It’s also about situations that you face as human-like health care expenses and lifestyle changes. So working with an advisor can help you put your best financial foot forward in retirement.

6. A financial advisor can help you monitor your financial health:

Engineers are known to be the best problem-solvers. And that’s exactly what you need with your money, too. A good financial planner monitors your overall financial health by providing recommendations on how you can improve certain areas of your finances over time. So if you haven’t started saving for retirement yet or have a lot of debt, an advisor can help you get back on track.

Look: How Engineers can boost their credit score

7. A financial advisor can help engineers with estate planning:

Estate planning isn’t just about making sure your assets are transferred to the right people after you pass away. It’s also about helping your chosen beneficiaries avoid unnecessary taxes and ensuring that they receive everything that is due to them when the time is right. An advisor in conjunction with your estate attorney can help make sure your estate plan reflects your values and ensures that your loved ones are provided for when you pass on.

8. A financial planner can help you with insurance planning:

Many engineers think they don’t need life insurance since they’re young and healthy, but the truth is that all of us could use life insurance. Why? Because without it, your loved ones could be left with financial burdens like final expenses or outstanding debt. That’s why working with an advisor who understands this is key for helping you find the right policy at the best price.

Conclusion:

An engineering degree is no easy accomplishment and as such, engineers deserve to work with the very best when it comes to managing their money. Luckily for you, a financial advisor can provide can help provide sound financial advice and more so that your money works as hard as you do. They can save you time and money so that you can go on to do your best work in engineering or whatever you choose to do with your life.

If you are interested in hearing about our San Diego group of financial planners that specialize in working with Engineers you can schedule a complimentary consultation at: https://go.oncehub.com/FrankAlvarez

Tidemark Financial Partners and LPL Financial do not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation. Investing involves risk, including possible loss of principal.

As a business owner/Entrepreneur you know that the only two things guaranteed in life are death and taxes. Paying taxes on time is both your duty and obligation, however, I tell clients it doesn’t make you more patriotic for paying extra dollars to Uncle Sam. Taxes are unavoidable. It’s not like you can run away from paying taxes forever, sooner or later the tax department will find you, and then you’ll have to pay for your mistakes. In this article, you will learn 7 ways business owners can mitigate tax liability.

But even if you pay our taxes on time, you can still pay a lot more tax than you should! As a business owner, it could be really hard to save money on taxes legally. Tax laws are huge and it’s almost impossible to know all the tax deductions without any previous knowledge. So to help you, we have compiled a list of important tax-saving tips that every business owner should know.

It is important you talk to your CPA and financial advisor before you take any of the following recommendations.

Here are a few strategies we can recommend asking questions about:

1. Know the basics

In order to save money on taxes, it’s recommended for all entrepreneurs/business owners to do their homework before filing the returns. It is advised to go through the previous year’s tax returns and see if there were any mistakes or discrepancies. It is also good to know your financial situation and where you stand currently. You need to know how much you can afford to pay as taxes and how much money you could save on taxes. It’s good to use a tax calculator so that we can easily calculate our estimated taxes for the year.

2. Hire a family member as an employee

This is one of the most popular techniques used by many entrepreneurs in order to save money on taxes. You can hire your spouse, children, or even a relative as an employee for your company. Not only could it help you mitigate tax liability but could also add value to the business.

3. Invest in retirement plans like SEP-IRA and 401(K)

Planning for your retirement is one of the best ways to save money on taxes. If you are a business owner, you can always contribute to your SEP IRA account or 401(K) which is a great way to save for your retirement.

SEP IRA: Simplified Employee Pension Individual Retirement Arrangement or SEP IRA is an Individual Retirement Account (IRA) used by business owners to offer their employees and themselves tax deducted savings for their retirement. You can save up to 25% of their net earnings or up to $61,000 of your annual income under a SEP IRA in 2022.

401(k)s and IRAs get early withdrawal penalties. If you withdraw money from your SEP IRA before the age of 59 and a half you will be subjected to ordinary income taxes and a 10% early withdrawal penalty. There are special circumstances such as the purchase of your first property or disability needs that may bypass the early withdrawal penalty. Make sure you talk to your financial advisor or CPA before attempting to withdraw money from retirement accounts.

401(K): The 401(K) is an employer-sponsored retirement plan that allows you to save for your retirement with pre-tax money. This way, not only are you able to save money on taxes but the interest earned on this account is also tax-free. You can contribute up to $19,500 in a 401(K) account and this amount increases as you get older. You will only get taxed when you withdraw money from your 401(K) account.

For more information on 401(k)s and to see some strategies on how to master your 401(K) plan see our eBook “Mastering the 401(k)”

4. Invest in medical insurance and medical expenses

It is advised to contribute as much as possible towards your medical insurance and medical expenses. You can contribute up to 100% of your premiums under self-employed health insurance which will help cut down on out-of-pocket healthcare costs such as prescriptions, co-payments, and deductibles. Another great tool is the health savings account (HSA). Your HSA contributions will be 100% tax-deductible and can be used to pay for qualified medical expenses not covered by high-deductible health insurance. 2022 limits are  $3,650 for an individual and $7,300 for family coverage. Make sure to consult with your financial advisor and CPA before withdrawing from your account as it can incur taxes and penalties if you don’t use the money for its intended purpose.

With the pandemic in play check out our investment playbook

5. Donate to charities

Donating to charities is one of the oldest tricks in the books of saving money on taxes. You can contribute up to 50% of your adjusted gross income as donations and this amount is tax-deductible. So, not only will you be able to save money on taxes but also help those in need. The government allows you to carry forward your donations and use them the next year.

6. Keep your all expense reports and receipts on check

A lot of entrepreneurs neglect to keep the expense reports and receipts. Make sure that you are using all the tax deductions available to you so that you can cut down on overall expenses. Keep track of receipts for all your business meetings, conferences, travel expenses, home office expenses, etc. and discuss the best course of action with your tax professional

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7. Keep track of your mileage

If your business requires you to drive in order to conduct business you could deduct all the miles you have driven in your car for business purposes. You need to keep a record of the miles driven every year so that you can claim it when filing taxes. Make sure to keep a mileage log for business purposes or download an app that does that for you automatically. Make sure your accountant has the mileage log to determine whether the mileage you drove could count as a deduction for you.

Final thoughts:

As you can see from the above-mentioned article, there are several ways business owners can reduce their tax liability. You need to have clear information on what tax breaks and deductions are available to you so that you can plan your finances accordingly. “That is why it’s imperative you speak with your tax professional before implementing any tax strategies.”

Tidemark Financial Partners and LPL Financial do not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation.

The million-dollar question is, How to choose a financial advisor in San Diego? As people are becoming more aware of their finances, more and more financial gurus are popping up every day offering advice on investments, insurance, and other financial products. Many of them may claim to have a “Holistic financial plan” that can help you live the life you have always wanted. Unfortunately, not all of these financial advisors in San Diego are equally skilled.

Your finances are one of the most valuable assets you own. Therefore, it is important to choose the right financial advisor who can provide you with advice that is in your best interest. So the question is, how do you choose a financial advisor in San Diego? Let’s find out!

Who is a financial advisor?

Before asking how to choose a financial advisor, you must first understand what qualifies someone for this role.

A financial advisor is an individual who offers advice on investments, insurance, and estate planning among other things. Financial advisors may work as independent professionals or they can also be employed by banks, and the broker-dealer arm of mutual funds, mutual fund companies, life insurance companies, and other financial institutions.

Can help you adopt a financial strategy to help pursue your short and long-term goals. They can also provide guidance on which products are suitable for your needs and ensure that these products are offered at competitive rates.

Who needs a financial advisor in San Diego?

A financial advisor can offer invaluable guidance to people of all backgrounds and income levels. However, if you are highly involved in your finances or wealth management, it is recommended that you seek the advice of a professional before making any financial decisions.

Here are some situations where you may need to consult with a financial advisor:

• You are about to retire
• Possesion of large amount of cash that needs to be invested
• You are looking for starting or expanding your business
• Your family is expanding and you need to set up proper insurance protection for your family
• You are looking to purchase insurance products like life insurance, health insurance, or annuity
• You don’t have time to manage your finances by yourself

Different types of financial advisors in San Diego

Before you start looking for a financial advisor, be sure to clearly define the purpose and scope of your relationship with them so that both parties can match expectations and determine the right type of advisor.

There are mainly five types of financial advisors in San Diego:

1. Personal Financial Advisor: Personal financial advisors are concerned with helping clients plan their investment portfolios. These professionals offer advice in areas such as retirement planning, tax management, life insurance, and estate planning.

2. General Investment Advisor: These advisors help their clients make investment decisions on various types of investment opportunities, both traditional and alternative.

3. Retirement Planner: Retirement planners are concerned with helping their clients save for retirement. They also ensure that the plans are in line with current tax regulations and help their clients choose suitable investment vehicles to help pursue their goals.

4. Real Estate Professional: Real Estate professionals help their clients manage, maintain, and grow their investment in real estate.

5. Insurance and Employee Benefits Consultant or Broker: Insurance and employee benefits consultants help their clients choose suitable insurance products. These professionals are also liable for selling insurance products to businesses, helping them manage the risks associated with employees.

Now that you have a basic understanding of what type of advisor you need, it is time to find one!

Investments in real estate may be subject to a higher degree of market risk because of concentration in a specific industry, sector, or geographical sector. Other risks can include, but are not limited to, declines in the value of the real estate, potential illiquidity, risks related to general and economic conditions, stage of development, and defaults by borrower.?” Tidemark Financial Partners and LPL Financial do not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation. Investing involves risk, including possible loss of principal.

How to choose a financial advisor in San Diego?

Now comes the big question! How do you find the right financial advisor for you?

Well, like any industry, some financial advisors may be better than others. But there are a few things you can look for to find a reliable financial advisor.

1. Check the person’s background and qualifications

You should always ask to see the financial advisor’s qualifications. A legitimate financial advisor should be able to show you their licenses, professional certifications, and educational background. The person should be qualified following state laws where they are currently working or where they conduct business. https://brokercheck.finra.org/

2. Check the company’s background and legitimacy

It is also important to find out more about the financial service company that the advisor is working for. You should check if it is a legitimate company by checking at your state’s consumer protection agency or other organizations responsible for protecting consumers’ rights. Usually, the better companies have all the necessary licenses and are registered with relevant government agencies.

3. Check what kind of advice the person offers and how they charge

You should find out what kind of advice the financial advisor can give you. For example, if you are looking to invest in mutual funds, does the financial advisor work for a company that sells or manages mutual funds Therefore, it is important to check who they work for and if their interests are aligned with yours. Being a fiduciary financial advisor in San Diego is a major plus

4. Talk to their previous clients

Asking for referrals is a great way to get in touch with people who have had experience working with a financial advisor. By reaching out to their past clients, you get an insight into what it is like working with that person. You can also potentially receive valuable advice not only about the advisor’s competence but their character as well.

Check out our infographic if your company is being acquired what can you do to prepare financially?

5. Check their communication skills and personality

Great way to judge if someone is a good fit for you. Ask them questions and observe their communication and listening skills. A professional financial advisor in San Diego should be able to listen attentively and answer your questions clearly. He/she should also communicate in a friendly, approachable manner and talk in a language that even a 5-year-old can understand.

6. Visit multiple advisors

It’s your money and your responsibility to find the best person to manage it. Take your time and meet a few advisors before you decide on one. If you find an advisor that meets your needs, then make sure to visit them regularly for advice or updates. It’s better to be safe than sorry!

7. Check the fee factor

It is important to find out how much a financial advisor will charge you for their services. Some of them may have a more competitive price, but it is important to look at the whole picture and think about quality vs quantity. If you need more help or better advice, then you may want to choose an advisor who charges a bit more money.

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Benefits of having a financial advisor in San Diego:

• An advisor can help you stay on track with your goals
• A financial advisor can give you a new perspective on your finances
• You won’t make the same mistakes again once you have a professional by your side
• You can do more of what you enjoy when you leave your finances in the hands of an advisor
• An advisor can make sure you don’t overspend and save money for your future
• You can gain confidence knowing that your finances are in good hands
• If he/she is local you can meet with the advisor in person and form a personal relationship that will carry through the years

Final thoughts:

Choosing a financial advisor in San Diego is not an easy task and takes up a lot of your time. So before you make any decisions, make sure to do your research and get all the information you can. And lastly, you have to remember that you are the boss! So choose wisely and find someone who has the same values as you. It may be time-consuming but it’s well worth it in the end!

If you are interested in receiving a complimentary consultation from our group in San Diego do not hesitate to contact us or look at our virtual calendar to schedule your meeting.