Financial Advisory Services

Our expertise is in utilizing integrated tax & investment strategy to spot strategic opportunities for both your business and for you as an individual.

 

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Investment Planning
Every client has a written, personal plan

If you’re like many people, you may have left your investments on autopilot. You recognize the value in investment planning, but may find it too intimidating to tackle on your own.

Chances are you have had changes in your life since you last reviewed your investment portfolio, and the investment strategy that once was adequate for the future you had in mind may no longer be appropriate. As your financial goals and needs change, your investment strategy may need to change to meet those goals and needs.

Remember that your investments affect other elements of your financial plan such as estate planning, education planning, and retirement planning.

 

Income Protection & Asset Preservation
Independent Advice

​For most people, the possibility of an illness or injury severe enough to disrupt their income flow doesn’t even occur to them. If they do think about it, people often consider the chances slim. Many go through life with the “it will never happen to me” mentality.

The truth is that illness or injury can happen to anyone. In fact, a person has a one in four chance of becoming severely ill or disabled. Perhaps you’ve considered this possibility and put some plans in place. If you have already taken steps to protect your income, when is the last time you reviewed your plan? Chances are you have experienced changes in your life since you last reviewed your finances. You may have gotten married or divorced, welcomed a child or grandchild, acquired or sold a business, received a new job or earned a promotion, or taken on new future financial obligations.

As your financial goals and needs change, your strategies to protect them may need to change. Remember that income protection affects other aspects of your planning process, including investment planning and insurance planning. Because your lifestyle and that of your family depend on your income, it is important to regularly review your specific goals, and actively plan for the possibility of severe illness or injury.

 

Retirement Planning
No “cookie cutter” approach

​You may look forward to retirement as a time to savor the finer things in life, and as a reward for many years of hard work.

Retirement dreams can inspire you, but you need to set goals if your retirement is to live up to your aspirations.

We can help you start addressing the challenges planning for your retirement holds. We can analyze your current retirement plan and help make sure you are working steadily towards your goals.

 

Securities offered through 1st Global Capital Corp., Member FINRA, SIPC. Investment Advisory services offered through 1st Global Advisors, Inc. Jones & Roth has representatives licensed in AZ, CA, CO, FL, GA, HI, IL, IN, MA, MT, NC, NV, OH, OR, TX, UT, WA & WY. This is not an offer to sell securities in any other state or jurisdiction.

Financial Advisory Services Team


Matt Adams, CFP®, CLU, ChFC

Matt Adams, CFP®, CLU, ChFC

CERTIFIED FINANCIAL PLANNER™

Bio

Mark Coombe, CFP®

Mark Coombe, CFP®

CERTIFIED FINANCIAL PLANNER™

Bio

Bryan Decker, CFP®

Bryan Decker, CFP®

CERTIFIED FINANCIAL PLANNER™

Bio


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Recent News

Why You May Want to Accelerate Your Property Tax Payment Into 2017

Why You May Want to Accelerate Your Property Tax Payment Into 2017

Accelerating deductible expenses, such as property tax on your home, into the current year typically is a good idea. Why? It will defer tax, which usually is beneficial. Prepaying property tax may be especially beneficial this year, because proposed tax legislation might reduce or eliminate the benefit of the property tax deduction beginning in 2018.

Proposed changes

The initial version of the House tax bill would cap the property tax deduction for individuals at $10,000. The initial version of the Senate tax bill would eliminate the property tax deduction for individuals altogether.

In addition, tax rates under both bills would go down for many taxpayers, making deductions less valuable. And because the standard deduction would increase significantly under both bills, some taxpayers might no longer benefit from itemizing deductions.

2017 year-end planning

You can prepay (by December 31) property taxes that relate to 2017 but that are due in 2018 and deduct the payment on your 2017 return. But you generally can’t prepay property tax that relates to 2018 and deduct the payment on your 2017 return.

Prepaying property tax will in most cases be beneficial if the property tax deduction is eliminated beginning in 2018. But even if the property tax deduction is retained, prepaying could still be beneficial. Here’s why:

  • If your property tax bill is very large, prepaying is likely a good idea in case the property tax deduction is capped beginning in 2018.
  • If you could be subject to a lower tax rate in 2018 or won’t have enough itemized deductions overall in 2018 to exceed a higher standard deduction, prepaying is also likely tax-smart because a property tax deduction next year would have less or no benefit.

However, there are a few caveats:

  • If you’re subject to the AMT in 2017, you won’t get any benefit from prepaying your property tax. And if the property tax deduction is retained for 2018, the prepayment could cost you a tax-saving opportunity next year.
  • If your income is high enough that the income-based itemized deduction reduction applies to you, the tax benefit of a prepayment may be reduced.
  • While the initial versions of both the House and Senate bills generally lower tax rates, some taxpayers might still end up being subject to higher tax rates in 2018, either because of tax law changes or simply because their income goes up next year. If you’re among them and the property tax deduction is retained, you may save more tax by holding off on paying property tax until it’s due next year.

It’s still uncertain what the final legislation will contain and whether it will be passed and signed into law this year. We can help you make the best decision based on tax law change developments and your specific situation, if you have questions, contact us.

© 2017

Business Valuation Part 4: Market Approach

Business Valuation Part 4: Market Approach

This post is part of a 4-part series covering business valuation and providing guideline information on the process of valuing a business. To start at the beginning and learn what business valuation is and why a business valuation is needed, read Part 1: Levels of Value. For an in-depth look at the first two valuation approaches, read Part 2: The Asset Approach and Part 3: The Income Approach.

Part 4: The Market Approach

In the market approach, the value of the organization can be compared to recent market activity whereby sales of similar interests in the same or similar industry. Valuation multiples, which are determined by dividing the sale price by a relevant financial metric (such as revenues), can be applied to the target company to determine an estimate of fair market value.

When valuing minority interests, the value of an interest may be compared to recent market activity in equity transactions, reported through public exchanges (e.g. NASDAQ or New York Stock Exchange), of organizations in the same or similar industries, subject to similar risks. Pertinent price ratios are applied to the target interest to determine an estimate of fair market value. This method of the market approach is referred to as the publicly traded company method, guideline publicly traded company method or the GPC method.

The notion behind the guideline publicly traded company method is that prices of publicly traded stocks in the same or a similar industry, provide objective evidence as to values at which investors are willing to buy and sell interests in companies in that industry. This method involves computing a value multiple using financial data for each guideline company. The derived value multiple is then applied to the financial data of the Company to arrive at an estimate of value for the appropriate interest.

Typically, publicly traded companies are significantly larger, more diversified and have better access to capital markets than the company that is the subject of the valuation. In addition, there may be differences between the subject company growth rate and the growth rates of publicly traded companies which can have a significant impact on value. Given these differences, the multiples used in the publicly traded method of the market approach are usually adjusted before being applied to the subject company’s relevant financial metric.

When valuing controlling interests, multiples may be derived from comparable merger and acquisition transactions. A limitation of the market approach is the availability and reliability of relevant market information. This method of the market approach is commonly referred to as the merger and acquisition (M&A) method.

Merger and acquisition transaction prices may be representative of fair market value, investment or strategic value, or something in between. On one end of the spectrum, a pure financial buyer (acquiring the business as a “stand alone operation”) will pay fair market value. Unique synergies (market share or competitive elements of a transaction which positively impact other related operations of the purchaser) can create additional value for specific strategic buyers, resulting in an incremental increase over fair market value to investment value.

Since mergers and acquisitions usually represent control transactions, they are most relevant to the valuation of other controlling interests. As such, if we are valuing a minority interest, an indicated enterprise value based on M&A data must be adjusted to reflect the lack of control and marketability inherent in the subject interest.

This post concludes the overview of the different valuation methodologies. Links to the other blog posts in this series are below:

Part 1: Levels of value
Part 2: The Asset Approach
Part 3: The Income Approach

 

Business Appraiser

Jason Bolt, CFA, ASA leads the Business Valuation Team at Jones & Roth. He is an active writer and speaker on specialized business valuation topics.

2017 Might Be Your Last Chance to Hire Veterans and Claim a Tax Credit

2017 Might Be Your Last Chance to Hire Veterans and Claim a Tax Credit

With Veterans Day on November 11, it’s an especially good time to think about the sacrifices veterans have made for us and how we can support them. One way businesses can support veterans is to hire them. The Work Opportunity tax credit (WOTC) can help businesses do just that, but it may not be available for hires made after this year.

As released by the Ways and Means Committee of the U.S. House of Representatives on November 2, the Tax Cuts and Jobs Act would eliminate the WOTC for hires after December 31, 2017. So you may want to consider hiring qualifying veterans before year end.

The WOTC up close

You can claim the WOTC for a portion of wages paid to a new hire from a qualifying target group. Among the target groups are eligible veterans who receive benefits under the Supplemental Nutrition Assistance Program (commonly known as “food stamps”), who have a service-related disability or who have been unemployed for at least four weeks. The maximum credit depends in part on which of these factors apply:

• Food stamp recipient or short-term unemployed (at least 4 weeks but less than 6 months): $2,400
• Disabled: $4,800
• Long-term unemployed (at least 6 months): $5,600
• Disabled and long-term unemployed: $9,600

The amount of the credit also depends on the wages paid to the veteran and the number of hours the veteran worked during the first year of employment.

You aren’t subject to a limit on the number of eligible veterans you can hire. For example, if you hire 10 disabled long-term-unemployed veterans, the credit can be as much as $96,000.

Other considerations

Before claiming the WOTC, you generally must obtain certification from a “designated local agency” (DLA) that the hired individual is indeed a target group member. You must submit IRS Form 8850, “Pre-Screening Notice and Certification Request for the Work Opportunity Credit,” to the DLA no later than the 28th day after the individual begins work for you.

Also be aware that veterans aren’t the only target groups from which you can hire and claim the WOTC. But in many cases hiring a veteran will provided the biggest credit. Plus, research assembled by the Institute for Veterans and Military Families at Syracuse University suggests that the skills and traits of people with a successful military employment track record make for particularly good civilian employees.

Looking ahead

It’s still uncertain whether the WOTC will be repealed. The House bill likely will be revised as lawmakers negotiate on tax reform, and it’s also possible Congress will be unable to pass tax legislation this year. Under current law, the WOTC is scheduled to be available through 2019.

But if you’re looking to hire this year, hiring veterans is worth considering for both tax and nontax reasons. Contact us for more information on the WOTC or on other year-end tax planning strategies in light of possible tax law changes.

© 2017