Create Your Wealth Roadmap with Hemming&

True Stories

When education isn’t a part of the planning process, Hemming has seen the best laid plans go a little bit off the rails.

One example? Business owners who tried to avoid social security tax by keeping their income low. Hemming& worked with their CPA to increase recognized income and the social security benefit for both them and their spouses dramatically improved. Clients who are focused on saving taxes and avoiding taxes with traditional methods are creating a bigger problem down the road, Hemming says.

Another client, a retired police officer whose pension met his income needs, had decided he wanted to draw social security early because of a distrust of the government. Hemming& helped him realize the $520,000 benefit of waiting to draw social security.

The firm has worked with a couple who were CD investors, educating them about opportunity costs and comparing rates of return. The clients decided to make adjustments and grow these accounts to more than $1 million, and more than a six-figure difference in actual earnings.

Each client’s experience is different. Past performance is not indicative of future results, which could be substantially different. Every individual decision should take into account any investors particular investment objective, strategies, tax status and time horizon and be coordinated with a client’s tax and legal advisors.

Get Educated

Often, our financial education, information or misinformation dates back to our upbringing. When Dawn Hemming was a teenager, she watched her dad read the The Wall Street Journal every day. He encouraged his daughter to save her earnings, collecting her waitressing cash and paying her a hefty 12 percent in interest for socking it away.

Hemming says a client’s upbringing and parents’ attitude about money plays a big hand in their own adult relationship with money. Sometimes you learn great money concepts, such as the value of compound interest, from your parents, like Hemming did. Other times, you see your parents stash cash in coffee cans, losing purchasing power as the cost of gas and groceries continue to climb.

Because not every family passes along financial literacy, the need to get up to speed and get educated is crucial, including working with a team of experts on subjects such as:

  • Pay taxes now or later. Talk to your tax advisor on strategies like Roth Conversions to turn the tax clock off to avoid paying taxes in a future anticipated escalating tax environment.
  • Pension options. Being intentional about pension plan options, including survivor benefits, long before the decision needs to be made.
  • Portfolio design. Clever risk management that doesn’t pigeonhole people into traditional portfolios. A good planner can help clients find clever ways to mitigate risk.
  • Smart Debt Management. For mortgages at a low fixed rate, using extra savings to grow (instead of paying off mortgages early) can result in more money in your pocket over the life of the loan.
Achieve Life Goals

Once clients embrace their financial futures and are educated and armed with a roadmap, it’s time for empowerment. Hemming & advisors are always exploring new opportunities and staying on the forefront of tax laws, investments and financial planning strategies to ensure wealth management success.

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