Welcome to Redwood Financial Network!
Redwood Financial Network is an independent wealth management firm headquartered in Solon. Our community involvement has led us to an exciting new partnership with your Signature Life publication. Each month be sure to flip to our page to see what’s new and gather some tips that you can use to manage your financial life. Between Covid-19, changing presidential administration, job changes, and the Browns finally being good, things feel different. Life in these unprecedented times have likely prompted many new questions. That is especially true when we think about our finances. If there is a topic you would like to learn about, let us know! If you have any financial questions, we want to hear them!
We look forward to a great relationship with your terrific community.
What are we hearing?
With the beginning of March and Spring around the corner, our clients are focused on taxes. This is the month our wealth management team hears most frequently from our clients. Their main concern usually revolves around their tax situation. Specifically, how to minimize their taxes. We assist in devising, implementing, and maintaining tax strategies to build endurance in their family’s financial wellness plans.
While some tax strategies must be implemented before December 31, there are steps you can still take now, before your tax filing, to impact your 2020 taxes.
- IRA Contributions – If you are not self-employed, you may still be able to contribute to an Individual Retirement Account and gain the short and long term advantages of that strategy. The 2020 contribution limit for Roth and Traditional IRA is $6,000, or $7,000 if you’re age 50 or older. There are restrictions that could impact how much you can contribute and what you can deduct based on your income level. The link to our site below has a “Taxes at a Glance” document you can reference to see where you fall.
- Health Savings Accounts – If you have a high deductible health plan of more than $1,400.00 deductible expenses, you may be able to add money to an HSA to offset your personal taxes. An individual can add up to $3,550.00 in a personal Health Savings Account for 2020. You may be able to contribute up to $7,100.00 for the family. These savings vehicles also offer a catch-up contribution of $1,000.00 for individuals age 55 and over.
- Simplified Employee Pension – Self-employed individuals may have the opportunity to increase their deductible retirement contributions and save up to 25% of compensation or $57,000.00 (whichever is smaller) for 2020.
- Children’s IRA’s – Do you have a working teenager in the house? If so, they may be able to create a Roth IRA for themselves and grow tax free money for very many years. This step can still be taken for tax filing of 2020 as well.
As with any financial strategy, speak with your tax and financial professionals to confirm the strategy is appropriate and available to you. Our team enjoys building financial knowledge and wellness through education and we’re looking forward to bringing that to The Signature Life.