Squam Lakes Financial Advisors, LLC
Bob has long been a proponent of fee-only financial planning and was a founding member of the National Association of Personal Financial Advisors (NAPFA), the leading professional association of fee-only financial advisors. He served three years as president and director of the Northeast Mid-Atlantic Region of NAPFA and led a committee to develop NAPFA University for the continuing education of fee-only financial advisors and planners. In 2011, he received NAPFA’s Robert J. Underwood Distinguished Service Award and in 2013 he was honored and recognized as one of the 30 Most Influential for meritorious service to NAPFA and the Fee-Only financial planning community.
Bob’s client base included women, retiring and retired couples, owners of closely held businesses professors at Plymouth State University. They look to Bob and his team to help articulate personal goals and develop comprehensive planning strategies for achieving those goals.
In the 14 years prior to founding his own business, Bob administered estates, trusts, and developed new business for bank trust departments. He was awarded the Master of Science Degree in Financial Services (MSFS) from the American College in Bryn Mawr, Pennsylvania, and had his undergraduate studies at Siena College in Loudonville, NY. Bob holds the Accredited Estate Planner certification from the National Association of Estate Planing Councils, a leading organization of professional estate planners and affiliated estate planning councils focused on establishing and monitoring the highest professional and educational standards for the practice.
Bob has been recognized as one of the best financial advisors in the country by both Moneymagazine and Worth magazine. Medical Economics also recognized Bob as one of the best financial planners in the country for doctors.
Financial writers have often sought Bob’s expertise in areas of personal finance. He has been quoted in the Wall Street Journal, Investment Advisor, Medical Economics, Physicians Personal Advisory and Money Magazine. Bob was also featured in Financial Planner magazine for his work as a financial advisor to women.
Bob is immediate past president and a board member of the Squam Lakes Chamber of Commerce and president of the White Pond Watershed Association. He is an active member of the Town of Holderness, NH as a member of the Zoning Board of Adjustments and the Budget Committee and a long-time participant in the “Who Can Make the Best Apple Pie Contest” in Holderness, NH.
In 2012 Bob was named as a director of Speare Memorial Hospital in Plymouth, NH and serves on its Budget Committee and its Long Range Planning Committee.
He is a member of the New Hampshire Estate Planning Council; past Chairman, President, and Director of the Connecticut Estate and Tax Planning Council; and a former President and Director of the Southern Connecticut Chapter of the International Association of Financial Planners (IAFP).
Bob is an avid hiker and fresh-water fisherman, and lives with his wife Bonnie in Holderness, NH.
BS, Finance, Siena College
MSFS, Financial Services, Bryn Mawr College
Fee-Only--Retainer Fee and Fixed Plan Fee
Your question is a good one but I don't see any reason to worry. In the calendar year 2018, your mother has the ability to gift up to $15,000 to you and if you have one, your spouse separately without any tax consequences to either of you. She does not get a deduction for the gift against her income & you don't have to pay any income tax on the gift. Using the number of $227,000 that you mentioned in your question, your mother will be required to file a 2018 gift tax return for the difference between the $227,000 and the $15,000 she gifted to you. As you may or may not be aware, your mother has the right to leave up to $11 million to you in the form of gifts while she is alive or at the time of her death. Any gift in excess of $15,000 during her lifetime requires the filing of the gift tax return. It's just a return and she will simply be using up $212,000 of her $11 million exemption while she's alive. Again, there are no benefits necessarily to your mother and there's actually no taxable income to you as a result of her gift to you. I hope this helps and good luck.
As vexing as this problem is, it amazes me how well you've done at such a young age. My first comment is congratulations. The questions you're asking are all interrelated and somewhat complex. I would highly recommend that you go to the website for the National Association of Personal Financial Advisors and find a "fee-only" planner in your area and ask for an appointment. A fee-only advisor has no license to sell product of any kind nor do they receive referral fees. Their sole source of income come directly from you the client and therefore you can expect to get unbiased and independent advice. Don't fear the fees, as it is quite clear that you can afford them but be sure you're getting what you want during the initial interview and the fees are explained to you in great detail. You'll find a list of fee-only financial advisors at the following website. www.napfa.org I hope this helps and good luck.
The easiest way to begin would be to open an account at Fidelity or Vanguard in your own name. Once the account is been opened you can transfer cash to this account and from that point on, you can buy stocks online or for a little extra charge, one of their account executives can purchase it for you. This should be as easy as it sounds. I hope this helps and good luck.
Let'stry to take this one step at a time and deal with your mother's estate. Assuming the $40,000 commission you refer to is going to be taxed as ordinary income, the estate has the ability to offset expenses against the $40,000 and then pay out the remaining amount to beneficiaries depending on the terms of the will and/or trust. One of the unique features of an estate, is that it can elect to file on a fiscal year rather calendar year. This allows for the transfer of taxable income from one year to the next but at some point and estate tax return or form 1041 has to be filed. I would strongly suggest you find a competent CPA who understands the taxation of estates and talk this through before you go any further. Under normal circumstances, if there are two beneficiaries of the estate or three, you may be able to distribute the money out to the two or three individuals thereby eliminating any taxable income in the estate from the $40,000 and having each of the two or three people pay their proportionate share of tax in their own federal and state brackets. Hope this helps and good luck
The answer to your question lies in the tax bracket you will be in, in the year of the sale. If the sale and the capital gains attributable to the sale along with your other income will keep you in a 15% bracket, and capital gain should be free. However, if it takes you up over the 15% bracket, partly capital gains will be taxable. Hope this helps and good luck