How to Build Wealth: Strategies You Can Start Now
  • Our LocationWallingford, CT 06492
  • Office Phone(203) 949-1710
  • Client Login
  • Home
  • Financial Services
    • Fee Based Asset Management
      • Overview
      • Details
    • Risk Management
      • Overview
      • Details
    • Tax Planning & Preparation Services
      • Overview
      • Details
    • Plan Development
      • Overview
      • Details
    • Estate Planning & Distribution
      • Overview
      • Details
  • Your Goals
    • Millennials
    • Generation X
    • Baby Boomer
    • Serious Investor
    • Business Owner
  • Why Choose Us
    • Our Difference
    • Your Benefit
    • In the Media
  • Life Changes
    • Divorce
    • Employment
    • Long Term Care
    • Inheritance or Settlement
    • Marriage & Family
  • The Team
  • Contact
  • Home
  • Financial Services
    • Fee Based Asset Management
      • Overview
      • Details
    • Risk Management
      • Overview
      • Details
    • Tax Planning & Preparation Services
      • Overview
      • Details
    • Plan Development
      • Overview
      • Details
    • Estate Planning & Distribution
      • Overview
      • Details
  • Your Goals
    • Millennials
    • Generation X
    • Baby Boomer
    • Serious Investor
    • Business Owner
  • Why Choose Us
    • Our Difference
    • Your Benefit
    • In the Media
  • Life Changes
    • Divorce
    • Employment
    • Long Term Care
    • Inheritance or Settlement
    • Marriage & Family
  • The Team
  • Contact

Wealth

  • toomeyinvest
  • Wealth
  • October 24, 2022

How to Build Wealth: Strategies You Can Start Now

If the idea of building your wealth seems overwhelming and complicated, this is a post you need to read. The reality is that it doesn’t have to be at all and it’s something that’s within reach for anyone.

In simplest terms, wealth is your assets minus your debts. So, to build wealth, you need to focus on increasing your assets and reducing your debts. It really is that simple.

To get there, there are several things you can start doing right now to build wealth so you can live the life you want.

The Self-Subscription

It’s amazing how many subscription services there are in 2022. Data shows that U.S. users pay for four streaming services on average and 7% of Americans have six or more! And that’s before we account for all the other residual monthly costs we have. What if, instead of those 3 or 4 monthly service subscriptions, we subscribed to our own investment accounts? Simply put, if it wasn’t for retirement plans at work that automatically defer some of our salaries for us, the retirement crisis in this country would actually be far worse. Treating your investments as a monthly bill that your credit score depends on may be the first step to true financial freedom.

Live More Modestly

All too often, people have income increases and as a result, they immediately increase their spending. So even though you’re making plenty of money, you end up with little or no savings. Don’t fall into that trap. Spend less than you earn and make building wealth a top priority.

Live modestly and always pay attention to where your money is going. Make a list of everything you spend money on for an entire month, and then look for areas where you can cut back. You might have no idea how much you spend on things you don’t need until you see it all right in front of you.

Debt Control

The best way to get into a better financial situation is to have a handle on your debts. Although a number of financial personalities have championed paying off all debts, we think debt is one of the most important tools you can use to enhance your long-term wealth. If your secured debt (collateralized) is low interest, paying this over time will free up cash assets to invest elsewhere while earning a higher rate of return than the money you’d be saving by eliminating your cheap debt. Utilizing a healthy credit score to advantageously borrow cheap money is a far cry from the high-interest unsecured debt people should avoid at all costs. Little tricks like these shine a bright light on the many ways to utilize debt instead of eliminating almost all of it completely.

Make Your Money Work for You

Once you have funds available to invest, you can let your money grow over time thanks to compound growth. If your employer sponsors a retirement plan, take advantage of it. If the company provides matching contributions, allocate enough of your own money to get the full match. You should also be investing in taxable, and tax-free accounts to ensure maximum withdrawal flexibility later in life. Accounts like these will enable you to invest in accounts that allow access to your investments prior to age 59 ½ without having to pay penalties or ordinary income taxes. Having a diversified tax strategy is just as important as having a diversified portfolio.

Get Professional Help with Wealth Building

At Toomey Investment Management, we focus on keeping our portfolio costs low, as well as helping our clients understand how the investment process works. We have designed a series of models that we use to choose the right investments for each client’s goals. Contact us today to discuss how we can help you build wealth for the future.

Read More
  • toomeyinvest
  • Wealth
  • May 11, 2021

Wealth Transfer? Here’s What You Need to Know

When it comes to planning the distribution of your estate, there are many questions clients are often asking themselves. Are my heirs responsible? How can I avoid the probate court? How can I make sure my grandchildren are taken care of? Then after considering the moving pieces associated with these complex decisions, clients seldom know where to start. Our answer often starts with one thing: taxes.

In fact, not many people think about the tax treatment of different accounts for their heirs, but it is one of the most important estate planning topics that should be considered. If you’re leaving an inheritance, or are an heir yourself, the tax code can have a substantial effect on the how the assets are to be distributed. Here are some of the basics you should consider as you’re planning your estate.

Consider Individual Tax Liabilities

Do you have a large amount of your estate in an IRA? Well, whenever there is a pretax account granted to someone, they also inherit a tax liability. Do you own a non-qualified annuity? People seldom realize that all of the gains in that annuity are taxable to their heirs upon distribution. And the tax they will pay on that inheritance will be based on; you guessed it, that individual’s own marginal income tax rate. So even if you are intent on dividing your estate equally amongst siblings, the actual net inheritance can change drastically due to personal tax circumstances. Understanding the rules for distributions after life will help you make more prudent choices that best suit you and your family.

Understand Other Tax Liabilities

If the inheritance being passed to someone is in the form of property or an estate there may also be taxes to consider that could also significantly change the inheritance amounts. For example, in some circumstances, a state estate tax will be levied on any property left to heirs. In many cases, this tax may be taken from the value of the estate before the assets are distributed. A capital gains tax may also come into play if a property that’s inherited is sold for a profit after the date of death. It’s important to understand the state and federal tax laws that will apply to your inheritance.

Tax Mitigation Strategies

There are many ways we can plan your wealth transfer in a more tax efficient manner.  Utilizing life insurance, converting a portion of your pretax assets during life, or creating a comprehensive gifting program to your family members are all viable strategies. There are also ways to define how and when assets can be inherited with private trusts. It’s always important that prior to taking any meaningful steps, you have a firm grasp on all of the options available. This will ensure you are making decisions with conviction.

Speak with a Trusted Financial Adviser

Meeting with a financial advisor to discuss your future financial plans is critical if you want to create a tax-efficient inheritance strategy. Optimizing in this way requires strategic insight, advice, and planning. Call Toomey today!

Read More
  • toomeyinvest
  • Wealth
  • March 15, 2021

A Wealth Transfer Boom is Coming – Here’s What You Should Know

Talking about the untimely passing of a loved one is never easy. However, having these important conversations early and taking the time to responsibly plan for how wealth is transferred to heirs is a critical topic.

As baby boomers are soon expected to pass on trillions of dollars in wealth to their families over the next few decades, this very topic has become a key area of focus for many.

It’s about more than just mapping out a plan you feel good about, but also keeping it up to date over the years and having your heirs in on the conversation early so they can make future plans as well.

At Toomey Investment Management we can help you to understand the different methods available to effectively leverage, pass and distribute wealth to your heirs. An estate plan is unique to every client and because of that, the process may benefit from a firm with an independent approach. Our clients can expect a transparent experience as we analyze the market for investment vehicles that correlate with your goals.

If you’re on the cusp of entering your retirement years or have started to think about more effective management of your assets, we have some key things you’ll want to consider when it comes to wealth transfer.

The event of this money shifting has already been referenced by many as the “Great Wealth Transfer.”

First, a little background. As we mentioned, the generation born between 1944 and 1964 – also known as Baby Boomers, spent the decades of their core working years amassing a lot during economic strong years and are now moving into the retirement years. Market projections indicate they’ll be transferring around $60 trillion in wealth to millennials and Gen X by 2061. The effects of these inheritances are far-reaching and without a solid plan, those funds – even large sums – could easily be squandered.

Unexpected wealth can happen quickly and beneficiaries may not be able to keep a solid perspective when it happens. By making them aware of the future wealth and giving them time to speak with an advisor there is time to make a solid foundation and plans for preserving and growing those inheritances.

So what can you do now? Start having these conversations about money and future inheritances with your Gen X and Millennial kids and grandkids if you plan to pass money down in the future so that they can start planning early.

A trusted financial advisor can assist with understanding tax obligations, planning for expenses, and even allocating inheritances to meet their own financial goals.

Read More

Recent Posts

  • The Crucial Role of Financial Planning in Investment Management
  • Why a Customized Investment Plan is Key to Achieving Your Financial Goals
  • Why You Need Risk Management
  • Managing Your Finances: Tips for Handling Inheritance and Settlement Events
  • Looking to Your Financial Health During a Divorce

Categories

  • Corporate
  • Estate
  • Finance
  • Insurance
  • Investment
  • Medicaid
  • Retirement
  • Social Security
  • Taxes
  • Trust
  • Uncategorized
  • Wealth

Business Continuity
Privacy Policy
*5 Star Professional Award Criteria
Form CRS
ADV Part II
Regulation BI Disclosure

Toomey Investment Management, Inc. Discover the Difference

© 2014 - 2022 Toomey Invest | Website by Wallfrog | All Rights Reserved. Securities Offered through Leigh Baldwin & Co., LLC. Member FINRA/SIPC Check us out on FINRA Broker Check