Successfully managing your financial affairs can become more complicated as your wealth increases. Whether you’re an entrepreneur, a successful executive, a business owner, or someone who inherited significant wealth, you might find managing all your wealth-related tasks challenging and time-consuming. This is where hiring a Nashville, TN, financial advisor as your personal CFO can be a game-changer for you and your family.
Think of a Personal Chief Financial Officer (Personal CFO) as the professional responsible for helping you achieve your financial goals. You are outsourcing the complex terrain that includes financial and retirement and tax planning, investment management, estate planning, charitable giving, and risk management.
A Personal CFO should help you answer questions like the following:
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- Am I over (or under) exposed to potential investment risk?
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- Is the return on my investments in line with the amount of risk I am taking?
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- Are my assets sufficiently diversified to minimize the risk of large losses?
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- Will I have enough money to sustain my desired lifestyle for all of my retirement years – including late in life?
At Silberman Wealth, we take a conservative approach to managing your assets using proven endowment-style investment strategies. We believe in the power of diversification across several asset classes, including less liquid alternative investments, to minimize risk during periods of volatile markets. This methodology is designed to produce steadier returns over longer periods.
Tax Planning
As a high-income earner, you are likely subject to higher tax brackets. Ultimately, it’s about maximizing your after-tax income by effectively utilizing deductions, credits, and other tax-saving strategies.
A Personal CFO, particularly one with a tax background, can work with you to create comprehensive and sophisticated tax planning strategies that mitigate your tax liabilities.
Your Personal CFO should look at your financial situation, including income sources, investment strategies, estate plans, etc. Then the CFO recommends a plan that takes maximum advantage of various tax credits, deductions, and exemptions while ensuring compliance with tax regulations.
Your Personal CFO can also help you make strategic decisions about the timing of income and expenses, your retirement contributions, and charitable giving, all of which can have significant tax implications.
Silberman Wealth Insights: If you are concerned about running out of money late in life, you are not alone. We recognize that tax planning is not a one-size-fits-all process. We create unique tax strategies that account for the planned (and unplanned) events in life that can impact your tax liabilities.
Estate Planning, Business Planning, and Risk Management
Your Personal CFO can assist you with structuring an efficient estate plan to transfer your wealth to heirs, charities, or other entities based on your desires. In most instances, your Personal CFO will coordinate efforts with your estate planning attorney to prepare necessary documents like wills and trusts.
An important part of your estate plan is a plan that minimizes estate tax liabilities for heirs. A typical goal is to transfer as many assets as possible after paying the required taxes. Future generations will appreciate a thoughtful approach that allows you to have control from heaven.
If you own a business, your Personal CFO can assist you in creating a succession plan if something unexpected happens to you or you plan on selling your company inside or outside the family at some point. This protects your interests while maximizing your proceeds, ensuring a smooth transition to heirs, employees, or another potential buyer.
Risk Management Assessment
Another important type of analysis is the evaluation of your current insurance coverages. Your Personal CFO can determine if you are adequately covered for various risks, including premature death, disability, long-term care, property, and other types of exposure. This can also include putting a strategy that protects your assets from being unjustly taken away from you from potential creditors, lawsuits, or other sources and types of risk.
Coordinating with Other Financial Professionals
One of the overarching benefits of working with a Personal CFO is their ability to serve as your financial quarterback. They can be your primary contact for coordinating with other professionals, including your CPA, attorney, and insurance agent.
This type of collaboration by your Personal CFO can be particularly impactful for two reasons. One reason is a solution for resolving conflicting advice. For example, if your CPA and attorney provide conflicting advice, then your CFO can help resolve the conflict. The other is minimizing the risk of duplicate fees. That is, two professionals are charging you fees for the same service. Every team needs a quarterback, and you become the quarterback by default if you don’t have a Personal CFO.
Silberman Wealth Insights: Our team at Silberman Wealth Strategies has provided Personal CFO services to successful individuals and families nationwide for decades. We are committed to optimizing your financial well-being, similar to how a CFO ensures a company’s financial well-being. We also serve as a financial quarterback and coordinator for other professionals you may use, such as an accountant or attorney.
We help our clients pursue amazing lives of significance through customized wealth solutions.
The views stated in this piece are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities. Due to volatility within the markets, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. Cetera does not offer direct investments in commodities. Converting from a traditional retirement account to a Roth retirement account is a taxable event. A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes. Re-balancing may be a taxable event. Before you take any specific action be sure to consult with your tax professional. The return and principal value of bonds fluctuate with changes in market conditions. If bonds are not held to maturity, they may be worth more or less than their original value
Registered Representative offering securities and advisory services through Cetera Advisor Networks LLC, member FINRA/SIPC, a broker/dealer and Registered Investment Adviser. Advisory services also offered through SILBERMAN WEALTH STRATEGIES, INC. Cetera is under separate ownership from any other named entity. Located at 320 SEVEN SPRINGS WAY STE 250, BRENTWOOD, TN 37027
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Some IRA’s have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney. Distributions from traditional IRA’s and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 ½, may be subject to an additional 10% IRS tax penalty. A diversified portfolio does not assure a profit or protect against loss in a declining market.
