Our Financial Planning Process

Kimball Creek Partners provides personalized financial planning advice to individuals and families on a fee only basis or as part of our investment management services.

We believe in the importance of financial planning, the process by which one systematically and efficiently builds and manages wealth over time. Our advisors are CERTIFIED FINANCIAL PLANNER TM professionals who have met rigorous professional standards and have agreed to adhere to the principles of integrity, objectivity, competence, fairness, confidentiality, professionalism and diligence when dealing with clients.

Before focusing on investments, we believe it is critical to understand the values, goals, objectives, and current financial situation of each client. We will work with you to create a customized plan that will align your finances with your personal priorities. Our guiding principal is disciplined financial stewardship, balancing current consumption with saving for the future.

Kimball Creek Partners advisors are available to measure progress and, if necessary, recalibrate strategies to align with market conditions and your current situation. We can collaborate with you online no matter where you are. Note: There is no assurance that the strategies or recommendations will yield positive outcomes. The purchase of certain securities may be required to effect some of the strategies. Investing involves risks including possible loss of principal.

Education Planning

Providing financial support for higher education can be one of the most rewarding aspects of success. When you invest in potential, you’ll do more than help make the dream of education possible for a student in your life. You provide the inspiration for a legacy of higher learning that’s passed on for generations to come.

There are a variety of investment vehicles and tax-efficient options to contribute to education costs. With the rising cost of a college education, saving requires an early start and may be one of the crucial elements in your financial plan. Kimball Creek Partners can estimate how much you will need to save to cover college costs and provide guidance on account options; differences in tax benefits; account ownership; and contribution maximums. Working together, we provide options for you to choose the account type and investment strategy that is right for you and your student.

Here are few ways you can plan for educational expenses:

UGMA/UTMA
The UGMA (Uniform Gifts to Minors Act) and UTMA (Uniform Transfer to Minors Act) are custodial accounts used to hold assets for minors until they reach the age of majority, 18 or 21, according to their state of residence. Although UGMA and UTMA accounts are not designed specifically for college savings, they offer advantages including multiple investment options, limited tax benefits and the ability for a parent to transfer assets to a child without the need to establish a costlier trust. Assets held in these accounts are considered property of the minor.

 

529 College Savings Plan
A 529 College Savings Plan is either a prepaid tuition plan or an education savings plan operated by a state or educational institution. It is named after Section 529 of the Internal Revenue Code which created these types of plans in 1996. This plan is a flexible account that has many tax advantages including the ability for investments to grow tax-deferred and eventually be withdrawn tax-free subject to plan and government requirements.

*Prior to investing in a 529 Plan, investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program.

Withdrawals used for qualified expenses are federally tax-free. Tax treatment at the state level may vary.  Please consult with your tax advisor before investing. 

 

 

Investment Analysis Snapshot

Kimball Creek Partners are available on a fee only basis to provide a point in time, second opinion on self-directed portfolios or accounts managed by outside firms. We will establish access to WealthVision™, an online tool powered by eMoney, which provides an organized single access point to view and share financial accounts across platforms and providers. We will ask you to input accounts that will allow us VIEW ONLY access to see holdings from a dynamic, holistic point of view. If you prefer, we contract with a third party to input individual investments from account statements that you provide. This method will provide a static, point in time analysis.

After discussion to establish your unique financial goals, investment experience, income and tax bracket, net worth, risk tolerance, and time horizon, we will analyze your existing portfolio for optimization and diversification then provide a written summary of observations, assumptions and specific recommendations.

Retirement Planning

Retirement can be a time to explore new possibilities; slow down and fully enjoy the life you imagined during your working years; or it can be a bit of both.

Kimball Creek Partners focuses on helping individuals and their families navigate the retirement planning process by asking the right questions to uncover your needs and desires.

Our comprehensive retirement strategies will help you prepare for, transition to, and enjoy retirement. No matter where you are in your life, we can provide guidance, tools, and services to help you prepare for retirement on your terms. While building wealth, we help you prioritize savings and optimize your investment strategy that aims to protect and manage your wealth.

Make the most out of your retirement benefits. Take a look at these important age specific items into your retirement planning:

Age Specific Retirement Factors

Age 50:  Workers age 50 and older can defer more income into their 401(k) and 403(b) plans, federal government Thrift Savings Plan and contributory IRAs. 

Age 55:  If you leave your job in the calendar year you turn 55 up to age 59 1/2, you can take 401(k) withdrawals from your company retirement account without triggering the 10% early withdrawal penalty.  However, if you roll the money into an IRA, you’ll have to wait until age 59 1/2 to avoid the penalty unless you structure substantially equal payments for at least five years. 

Age 59 ½:  You can make distributions from IRAs without penalty however income tax will be due on withdrawals. 

Age 62:  Some workers are eligible to begin Social Security income but payments are permanently reduced by as much as 30%.  If you work and simultaneously collect Social Security at age 62, part or all of your payments may be temporarily withheld. 

Age 65:  Sign up for Medicare up to three months before your 65th birthday so coverage can start as early as the month you turn 65.  If you do not sign up on time (or within eight months of leaving a job with group health coverage), your Medicare Part B and D premiums could permanently increase; you can also be denied for supplemental coverage. 

Age 66:  Baby boomers born between 1943 and 1954 are first eligible to collect unreduced Social Security payments. If you were born in 1955 or 1956, full retirement is age 66 and two months; if your year of birth is 1959, full retirement is age 66 and ten months.  Once you reach full retirement age, benefits are no longer withheld for work at the same time. 

Age 67:  The Social Security full retirement age is 67 for everyone born in 1960 or later. 

Age 70:  Social Security payments will increase by about 8% per year if you delay starting benefits up until age 70.  After age 70, there is no additional benefit to wait to claim Social Security.

Age 72:  Required Minimum Distributions (RMDs) from IRAs and 401(k)s begin.  Income tax is generally due on each withdrawal.  Employed individuals can delay distributions from their current 401(k) until April 1 of the year after they retire (unless they own 5% or more of the company sponsoring the plan).  People age 70 ½ and older are no longer eligible to get a tax deduction for traditional IRA contributions but can contribute to Roth IRAs if they have earned income. 

 

If you are getting ready to retire, we can help create an income plan to support your lifestyle in retirement or if you are already living in retirement, we will help develop a withdrawal strategy and manage your retirement portfolio that aims to generate income for your lifetime.

If you are getting ready to retire, we can help create an income plan to support your lifestyle in retirement or if you are already living in retirement, we will help develop a withdrawal strategy and manage your retirement portfolio that aims to generate income for your lifetime.

We will review:

  • Strategies for Required Minimum Distributions (“RMD’s”)
  • Generating income in retirement – total return, “buckets”, guarantees, etc.
  • Maximizing Social Security benefits
  • Maximizing Medicare benefits
  • Use of Fixed and/or Variable Annuities that aims to generate income
  • Use of Real Estate that seeks to generate retirement income

Every client’s retirement needs are different and our strategies are individualized to your situation.

Portfolio Management

Successful investors recognize that following a disciplined process of gathering valuable information and making prudent decisions can lead towards meaningful and sustainable results.

The starting point and continuing basis for our portfolio management is a dynamic up to date financial plan. Our custom- tailored portfolios consider your unique financial goals, age, investment experience, income and tax bracket, net worth, risk tolerance, and time horizon.

When managing assets, we will consider and explain:

  • Active vs. passive investing and triggers that shift from one to the other
  • Portfolio optimization that works to avoid underperformance over time
  • Role of diversification across asset classes
  • Role of concentrated portfolios in a diversification strategy
  • Role of alternative investments
  • International diversification – home country bias or globalized exposure and whether to hedge US Dollar
  • Equity and fixed income investing – active, passive or individual ownership
  • Different preferences for ownership in taxable and tax protected accounts
  • Role of Exchange Traded Funds (ETF’s)
  • Role of yield and total return
  • Volatility management

While no one can predict with certainty where markets will be at a specific time in the future, we strive to implement a disciplined process of diversification and rebalancing that seeks to smooth out the ups and downs. As innovative financial thinkers, we build portfolios that help you make prudent decisions in any economic climate.

No process or strategy assures success or guarantees against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not eliminate market risk.

*Rebalancing a portfolio may cause investors to incur tax liabilities and/or transition costs and does not assure a profit or protect against loss. 

Estate and Legacy Planning

Estate planning should focus on your values and reflect what matters most to you. It should provide the legal mechanism for distributing property upon death in a way that recognizes your wishes and the needs of your survivors. It can also involve planning for the handling of affairs in case of disability, incapacity, and the deeply personal medical choices to be made as life nears its end. It includes reducing or eliminating uncertainty over administration of probate; minimizing gift, estate, generation skipping transfer, and income tax; and maximizing the value of the estate by reducing taxes and other expenses.

Estate planning is determined by your specific goals and may be as simple or complex as your needs dictate.

Here are ways we can assist you:

 

  • Provide order to your financial affairs
  • Discuss your goals for the disposition of assets
  • Plan for subsequent generations and charities to benefit from your legacy
  • Review the titling of your assets
  • Review beneficiary designations for assets that will pass outside of probate
  • Analyze tax planning strategies
  • Assess strategies to simplify estate settlement
  • Assist you with coordination of your financial plan with other advisors

It is our goal to help you protect your legacy and transfer assets effectively and efficiently. 

View Our Simplified Checklist to Initiate Estate Planning

Will – instructions that state who you want to inherit your property. It will name an executor, the person you choose to administer your property after you die, and name a guardian to care for minor children in the event something happens to both parents.

Trust – This is an optional structure to manage your affairs in the event of incapacity and/or hold property to avoid probate.

Health Care Directives – If you are unable to make health care decisions for yourself a health care declaration also known as a living will indicates your wishes for medical care and a Health Care Power of Attorney designates one(s) to make care decisions if you cannot. In some states, these documents are combined into one document called an Advanced Health Care Directive.

Financial Power of Attorney – you give a trusted person authority to handle your finances and property if you become incapacitated or unable to make decisions. The person you name is your agent or attorney-in-fact (the person does not have to be a lawyer or attorney).

Final Arrangements – make your end of life wishes known regarding organ donation, disposition (burial or cremation) and funeral arrangements. You should name a person to manage money and property that your minor children inherit from you.

Beneficiary forms – for accounts that allow a beneficiary designation, these assets are payable on death and pass outside of probate despite any provision made in your Will. It is critical to regularly review beneficiary designations and keep account designations up to date.

Life Insurance – Ownership and beneficiary designations have critical estate implications and should be reviewed regularly.

Succession Plan – if you own a business, instructions for an orderly disposition. Or if you own a business with others, a buyout agreement.

Document Storage – keep your important papers organized, known and accessible to your Attorney-in-fact and/or your executor including information on personal property:

  • Record digital assets, passwords and instructions
  • Inventory personal valuables
  • Record all business interests
  • Record investment accounts, titling and beneficiaries
  • Record safe deposit boxes, locations and access
  • Record all rental real estate properties titling; financing; partnership agreements; and property manager contact information
  • Record all frequent flier memberships, access and passwords
  • Record vehicles – titling and financing
  • Record personal residences – titling and financing
  • Record timeshare ownership – titling and financing
  • Inventory all collectibles with appraisals and insurance coverage
  • Record all storage units including inventory and access

*This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation. Kimball Creek Parterns and LPL Financial do not provide legal advice or services.

 

LPL Financial Representatives offer access to Trust Services through The Private trust Company N.A., an affiliate of LPL Financial.

 

 

Charitable Giving & Strategies

Our clients have embraced the idea of charitable giving as an important part of financial stewardship and comprehensive financial planning.

By carefully considering your giving goals, Kimball Creek Partners can help you review options for charitable gifts during your lifetime, evaluate solutions that provide lifetime income, and build a charitable plan transferring wealth while seeking to reduce or avoid taxes creating a legacy of giving.

When supporting charities that are important to you and your family, donation options include:

  • Donor Advised Fund
  • Private Foundations
  • Charitable Remainder Trust
  • Pooled Income Funds
  • Charitable Gift Annuities

The advisors at Kimball Creek Partners have the expertise to assist you with your charitable giving goals, appropriate donation amounts and strategies to maximize tax benefits given your income or assets.

*This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. 

(800) 493-6195
admin@kimballcreekpartners.com
917 Pacific Ave., Suite 407
Tacoma, WA 98402

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Securities offered through LPL Financial, member FINRA/SIPC. Investment advice and financial planning offered through Financial Advocates Investment Management DBA Kimball Creek Partners, a Registered Investment Advisor. Financial Advocates Investment Management, Kimball Creek Partners and LPL Financial are separate entities.   

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: AR, AZ, CA, FL, HI, IA, ID, IL, KY, LA, MT, NC, NV, NY, OH, OR, SD, TX, UT, VA, WA