The BW Wealth Process
Financial planning is never a straight line from point A to point B.
We start with where you actually are, not where the plan was supposed to be.
What we do
A plan built for you, then kept current.
At BW Wealth Management we build custom financial plans to meet your individual needs. Our process begins by looking at your current situation — examining where you have saved, how you are being taxed, and evaluating your current investment strategy.
Together we will discuss your risk tolerance and investment objective to develop a plan made specifically for you, including developing an estate plan and assuring that your wishes are followed. Financial planning is never a straight line of point A to point B. It requires adaptability to economic changes, global events and unforeseen life circumstances. With careful monitoring and adjustments, we're here to guide you in this ongoing journey.
How do you want to be taxed?
Every dollar you own sits in one of three buckets.
Managing your money not only involves making important decisions about how to invest it, but also how you want to pay taxes on your investment earnings.
Tax free
Money is invested with after-tax dollars, grows tax deferred, and withdrawals are tax free.
Taxable
Money is invested with after-tax dollars. You pay taxes on interest, dividends and capital gains.
Tax deferred
Money is invested with pre-tax dollars, lowers your taxable income, grows tax deferred, and withdrawals are taxed as ordinary income.
Most people have never been shown their own split. Working out what it is, and what it should be, is where a tax strategy starts.
How the work runs
Three-tier income strategy
Sorted by when you need it, not by what it is.
- Tier 1SafeTo provide immediate income for emergencies or short term goals, with assets invested in safe liquid investments.
- Tier 2Growth + incomeTo provide growth and income over a medium time period, while also being relatively more resistant to market fluctuations than long term investments.
- Tier 3GrowthFocused on long term growth, with the investment objective of providing capital appreciation to support income needs for later in retirement.
The full instrument list for each tier is on the investment advisory page.
Building your financial security
Five levels, and the top only stands if everything under it does.
- 05
Wealth transfer
Estate planning: trusts, medical and financial power of attorney.
- 04
Preserving wealth
Tax-efficient investing, protecting your assets through life insurance, long-term care and structured investments.
- 03
Accumulating wealth
Growth investments: assets you don't need now and want to grow for later in retirement.
- 02
Discretionary needs
Traveling, entertaining, hobbies, and charity.
- 01
Essential needs
Income needs for day to day living.
Important disclosures
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.
A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
Next step
Start with a conversation, not a pitch.
An initial conversation, at no cost and no obligation. We look at what you have and how it is currently taxed before anyone recommends moving anything.
Scottsdale and the greater Phoenix valley · Monday to Friday, 9am to 5pm