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Marginal vs Effective Tax Rates

When it comes to understanding your tax obligations, two key terms often come up: marginal tax rates and effective tax rates. While they might sound similar, they serve different purposes and can significantly impact your financial planning. Let's dive into the differences between these two types of tax rates and why they matter.

Owning Permanent Life Insurance as an Asset Class in Your Portfolio

When most think of life insurance they immediately go to widows and orphans, but I am of the school that life insurance is more than that. It can be an important tool in the toolbox of your portfolio.

Why Working with a Fiduciary is Critical

Navigating the world of personal finance can feel like traversing a minefield. Investments, retirement planning, insurance...it's a lot to juggle, and the wrong move can have significant consequences. That's where a financial advisor comes in. But not all financial advisors are created equal. One key distinction you absolutely must understand is whether a professional operates as a fiduciary. This post will explain why working with a fiduciary is not just a good idea, it's essential for securing your financial well-being.

Using Permanent Life Insurance to Enhance a Portfolio

In the world of portfolio construction, the efficient frontier is an important investment strategy – a set of portfolios that offer the highest expected return for a given level of risk or the lowest risk for a given level of return. Modern Portfolio Theory (MPT), pioneered by Harry Markowitz, emphasizes diversification to optimize this balance. While stocks, bonds, and alternative investments like real estate or commodities are typically the go-to asset classes for building diversified portfolios, permanent life insurance is often overlooked as a viable component. Provided there is a need for death benefit protection, when structured thoughtfully, permanent life insurance can be integrated as a new portfolio component that lowers risk profile.

Exit Your Business on Your Terms: Succession Planning

You’ve built a business you’re proud of—whether it’s plumbing, electrical, or custom carpentry. But what happens when you’re ready to step back? Selling or passing on your business can be a key part of your retirement plan, but it takes careful planning to maximize value and help ensure a smooth transition. At Clem Financial, we help business owners like you create succession plans and exit strategies that help secure your financial future. Let’s plan your exit the right way.

Retire on Your Terms: Retirement Planning for Trades Business Owners

You’ve spent years building your trades business—fixing pipes, wiring homes, or crafting custom woodwork. But have you thought about your own future? Many trades business owners are so focused on their work that retirement planning takes a backseat. At Clem Financial , we help self-employed trades professionals like you create a retirement plan that’s as strong as the projects you build. Let’s explore ways you can retire comfortably when the time comes.

Think Twice When Leaving an IRA to the Next Generation

With the passing of the Secure Act 2.0 of 2022 (Secure 2.0), new laws have been put into place that make the decision to leave pretax retirement assets to the next generation less desirable.