Clear View Wealth Advisors, LLC
Managing Member / Financial Planner
As a CERTIFIED FINANCIAL PLANNER ™ Professional, Steve Stanganelli has been providing financial, tax, retirement and college funding advice for more than 30 years to individuals, families and business owners throughout Greater Boston, the Merrimack Valley and New Hampshire Seacoast.
Professionally, Steve sees himself as a financial coach or navigator. His role is to help clients navigate the sea of confusion that is personal finance. He has worked hard to develop his experience and assemble the kinds of tools that are needed to help his clients with a variety of financial challenges including divorce, funding college tuition, and building efficient portfolios for long-term investing goals.
In his professional work, Steve is humbled knowing that people entrust him with their hard-earned wealth — regardless of the amount — or seek his guidance on any number of life-changing issues that can affect their personal bottom line. He finds it rewarding and humbling each time a client entrusts him not just with their money to manage but their dreams. Like many of his peers, Steve is a member of the “Sandwich Generation” helping to care for elderly parents while raising a family of his own.
Steve knows what it feels like trying to deal with the frustrating details of Medicare and the Part D “donut hole.” He knows what it feels like to juggle the responsibilities as an elder care giver with the demanding schedule of school-age kids. Steve knows all too well the sense of loss created by an unexpected corporate downsizing or downturn in business or sudden death of a loved one.
Like many of you who may read this, Steve leads a complex life – husband, father, son, homeowner, landlord, professional by day, weekend athlete (road cyclist). He can relate to the challenges his clients have faced or will meet. And he genuinely wants to share his insights, experience, and training to help others make the most with their lives.
Initially, Steve was a registered representative affiliated with an independent broker-dealer. Then he affiliated with a national wire house broker completing their extensive training programs and using the opportunity to complete the educational requirements for both of Steve's financial planning designations. Ultimately, Steve decided that he did not fit into the culture of a broker-dealer and turned toward more fee-only planning-oriented firms. In 2010 he consolidated his practice into his own firm, a state-registered investment advisor, to offer flexible financial and tax planning services as well as low-cost ETF investing solutions.
BA, Economics, University of Massachusetts at Lowell
MS, Finance, Bentley University
Assets Under Management:
You should consider a Monetized Installment Sale (M-453) to defer the capital gains taxes from the sale of the property.
Another option may be to consider a 1031 Exchange.
While a 1031 Exchange offers property owners a way to replace a property, the M-453 offers a way to exit out of a property and have access to 95% of the sale proceeds without having to pay taxes now.
To learn more about these options, you may want to read this article on the topic found on the Smart Money Insights blog: https://www.clearviewwealthadvisors.com/misc-topics/taxes-2/two-ways-avoid-capital-gains-tax-sale-rental-property/ .
Obviously, the most direct way to deal with this is to simply sell and pay the taxes due on sale from the cash proceeds you receive. You'll need to consider how this gain will impact your tax bracket by having a tax planner prepare a pro forma tax return. To avoid certain things like the 3.8% Investment Tax (aka Medicare Surtax), you'll want to limit the gains and stay below certain thresholds. You can offset this by maximizing your 401k and IRA contributions. You can consider renting the property and writing off a portion of expenses for the rental operation. This can also include paying your kids to help maintain the property. This becomes a tax deductible expense. And it also allows you to shift income from your higher tax bracket to the child's lower or zero tax bracket. And then you can use the "income" paid to the kids to fund a Roth IRA.
Your best option may depend on the fact pattern you have. So, reach out to a tax planner to review the best options for your situation.
Advisor-like is not an advisor. That's the simplest explanation.
You can learn lots of stuff on the internet but to get a degree you go to a college and have instructors. Some are live in the classroom and some are online in virtual classrooms. Same but in both cases, you're getting the benefit of someone explaining the information and providing context from experience.
As I've noted in my firm's regulatory brochure, we use robo-advisors. They are a great way to broadly diversify using low-cost index-based investments (mainly Exchange Traded Funds or ETFs). The platforms use algorithms to choose the ETFs and their proportion. The same algorithms will make decisions about trading and rebalancing. And these algorithms will also match a portfolio with a client's risk profile or goals and make a recommendation on the portfolio you should use.
This "rules-based" approach takes out a lot of emotion from the investing process. Emotions are what can ruin an investor's plans.
What these digital platforms cannot provide you is advice on non-investment-related financial questions like credit, debt, insurance protection, estate planning, taxes, or how to withdraw funds to fund retirement in a tax-efficient way.
Please remember that investing is only one part of financial planning. And while digital platforms are great, it's better to have access to both.
To read more on how robo- and human-advice can be combined, you may visit my blogs on the topic:
You should speak with a tax professional or tax planner for specifics.
But in general, your mother will be responsible for any taxes on the capital gains from the sale of property. If she hasn't used it as her primary residence for two out of the past five years, then she'll propbably have to deal with a capital gain. If the sale price was above her basis (purchase prices plus subsequent improvements and real estate sales costs), then she'll report the difference as gain.
If she gifts any amount to you over $14,000 per year, she should also file a gift tax return. This is informational and no tax is due by the giver or the recipient.
Once you have the cash, you'll be responsible for the taxes on any gains or interest that the gifted money may generate as it will then be your property.
To make an appointment to discuss details, reach out through the website profile link.
If you're cofident that you have the time, tools, and inclination as well as the emotional intelligence to not panic during inevitable market corrections, then go for it.
But remember my mother's adage:Penny wise. Pound foolish.
Sure, you'll save money by not hiring a financial advisor. But you may be shooting a hole in the bottom of your boat in the long run.
Do you know how long your money has to last or the tools that will help you estimate this? That's a longevity risk issue that an adviser can help you estimate.
Do you know what your retirement income sources are? Do you knwo the best claiming strategy for Social Security or a pension? Maybe you've already claimed but for those who haven't then this is a valuable service of an adviser.
Do you know your risk tolerance and how best to estimate it much less periodically update it? And do you know whether the portfolio you're choosing is aligned with that Risk Number? too often folks have one idea of their risk tolerance but when personal or market conditions change, their idea of risk may change but their portfolio hasn't kept up with the changes.
A 50/50 approach may work. Vanguard Balanced Index Fund is sort of like that as an example. But it doesn't have exposure to international or emerging markets. It doesn't have international bonds. These elements may be useful for risk mitigation and diversification.
Do you need a certain income from the portfolio? Do you want to emphasize dividend-paying stocks to generate income? Or what is the most tax efficient way to withdraw funds or from what buckets?
If you can do these, then you probably don't need a professional.
If I could change my own oil without blowing up my car engine, I would but I hire a professional. These are the questions you need to ask yourself.
If you still need this account or want the flexibility of having access to this account for the future, you should check with the credit union on its policies. They may require that you do a certain number of transactions or type of transactions during a set period. Check with them.