094: Investing and Banking Accounts with Joe Garrisi
Sep 1, 2023
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Joe Garrisi, owner of Backwards Planning Financial, shares his expertise on navigating joint accounts and investment strategies. He dives into the pros and cons of various financial account titling methods, including tenants by entirety for married couples. Joe emphasizes the importance of trust in co-owned accounts and discusses gift tax regulations, highlighting smart strategies for wealth transfer. Listeners gain insights into effective financial planning and the necessity of professional guidance for optimal decision-making.
Hiring a financial advisor can lead to significant savings and benefits that outweigh their fees, enhancing overall financial well-being.
Understanding the different methods of co-ownership for bank and investment accounts is essential for effective asset management and legal protection.
Deep dives
The Value of Financial Advisors
Hiring a financial advisor can significantly enhance one's financial situation by providing expertise in wealth management. Many individuals mistakenly believe that the cost of hiring an advisor outweighs the benefits; however, a well-chosen advisor can save clients much more than their fees. For instance, if a financial advisor charges a fee but helps a client save thousands in taxes or avoid legal troubles, the client is ultimately in a better financial position. This perspective encourages a collaborative mindset in which creative financial strategies can increase wealth for everyone involved.
Holistic Wealth Management
Holistic wealth management goes beyond basic investment strategies by integrating various aspects of financial planning, such as asset titling, tax strategies, and estate planning. An effective financial advisor collaborates with clients to create a comprehensive plan that reflects their short-term and long-term goals while maximizing efficiency. This approach ensures clients contribute less while potentially achieving greater outcomes, ultimately allowing for a more tailored financial strategy based on individual circumstances. Clients are encouraged to work closely with their financial advisor to optimize their unique financial situations and ensure that all components of their wealth are aligned.
Joint Ownership Strategies
There are important considerations when handling joint ownership of financial accounts, particularly with joint tenants with rights of survivorship, tenants in common, and tenants by entirety. Understanding the differences is crucial, such as how joint tenancy allows both parties to control the account equally, while tenants in common can have different ownership percentages. The tenants by entirety option offers additional legal protections for married couples, shielding assets from individual lawsuits. Proper titling and legal advice can help individuals navigate these options effectively, safeguarding their assets while maximizing their financial benefits.
This week on the podcast, Jeremy interviews Joe Garrisi of Backwards Planning Finanical to discuss different ways that you can have your co-owned bank accounts, investment accounts, and real estate titled and the pros and cons of each of the three methods discussed.
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