Smart investing follows a strategy for accumulating wealth that integrates goal-setting, effective tax planning, and wealth protection.

At the core of our investment philosophy is the belief that client interests are paramount and that investment advice should be unbiased by sales agendas, investment commissions or the promotion of proprietary products.

JDM constructs your investment portfolio to align with your goals, time horizon, tax status and financial and psychological risk preferences. These portfolios utilize a broad array of investments to create investment portfolios, including ETFs, no-load mutual funds, and index funds, with attention to what is most value added and tax efficient.

When constructing an investment portfolio, some key considerations include:

• How much should I be investing?

• How should I prioritize savings among IRAs, company retirement plans and other accounts?

• How should I allocate my investment dollars across different types of investments (real estate, stock market, bonds etc)?

• Should certain investments only be held in specific account types?

• When, if ever, should I use an actively managed fund instead of an index fund?

• What is a reasonable fee for investment management?

• What role should exchange traded funds play in my portfolio?

• How do I control my risk?

• Should I buy individual stocks and bonds?

• How do tax considerations impact what I should do?

Smart financial decisions for retirement planning involve realistic goal setting, investment management, health care and long term care issues, distribution strategies, survivor protection and income tax planning.

The traditional concept of “retirement” is changing. While some working adults intend to pursue a traditional retirement in which they cease working altogether by a certain age, many intend merely to downshift and continue employment with the knowledge that it is no longer financially necessary for them to work. For these individuals, the goal is more often described as achieving “financial independence.”

With careful planning and proper implementation, it is possible for most clients to live off a secure income stream in the future without the need for a paycheck.

Some of the many considerations are as follows:

• By what age would I like to accomplish my goal and how much do I need to have “in the bank” by that time?

• Given the time I have between now and then, how much do I need to save to hit my target date and future income goals?

• How does inflation impact my plan?

• How do I choose among the multitude of retirement accounts and strategies?

• How can I position my assets so I can draw income in the most tax efficient manner once I reach my “retirement” or “financial independence” goal?

• Can I rely on Social Security and Medicare?

• What is the best distribution strategy for maximizing the life of my income stream?

• How should my assets be positioned differently after I retire?

• Do I need to address long term care needs?

• How will my health care costs be covered?

• When I am gone, how I can be certain my spouse’s retirement needs are met?

Smart planning for the transfer of your wealth to your heirs involves the drafting of legal documents, the selection of your beneficiaries, the adoption of strategies for minimizing estate tax and probate expenses, and the careful consideration of important health directives.

Your “estate” is, in simplest terms, everything you own minus everything you owe on the date of your passing. Most people are so busy living that they fail to adequately plan for a time when they are no longer able to make decisions regarding their estate. By failing to plan properly, you may unknowingly subject your assets to high taxes and legal expenses or subject your heirs to confusion and the potential for conflict.

Your “estate plan” includes your written wishes as to whom or to what entity you would like your assets to transfer upon your death. This decision is deeply personal, and will no doubt be informed by the emotional, financial, and health conditions of those in your life. In many instances, these decisions are also motivated by the desire to minimize the amount of tax your estate may owe. It is critical that you put your wishes in writing, in the form of a will, trust and other legal documents so that they are clear and enforceable. A plan that is carefully defined will minimize taxes and expenses and will ensure that not only do your loved ones know exactly what you want, but also that your wishes are carried out.

Estate planning can be emotionally difficult as we confront our own mortality and grapple with uncomfortable questions. However, in many estates, this is the most important part of the financial plan. It is important to recognize that failing to plan properly can be both financially and emotionally devastating to your loved ones.

Some key questions to consider in building your legacy plan:

• To whom will my assets pass and in what percentages?

• How do I minimize taxes and other expenses to my estate?

• Who will make financial decisions if I am incapacitated?

• Does life insurance make sense for me? If so, which type?

• Do I designate my trust or children as beneficiary?

Smart financial decisions for your business involve adopting the optimal pension plan strategy, implementing the appropriate insurance coverage, and evaluating plans for succession, working capital, and tax management.

Many business owners are so busy growing their businesses that they may never get around to managing their profits optimally. In addition to the typical financial issues that every working adult faces, such as wealth management and retirement planning, entrepreneurs face additional challenges and opportunities that are unique to business ownership. These range from selecting a company pension plan and considering group insurance policies to protecting the business against the death of key employees and business succession planning. Some businesses also face industry-specific risks such as sensitivity to the business cycle, heightened legal exposure, or seasonal variations in business activity resulting in uneven cash flows.

Some of the key issues to be explored in financial planning for business owners:

• Am I benefiting from the best income tax shelters available to my business?

• Is my business operating most effectively in its current business form?

• Am I adequately addressing my working capital needs?

• Does my business present special legal or financial risks to my family?

• Is my business protected against the death of a key person or of my business partner?

• When I am gone, who will manage my business? How will this impact my family?

• How will the value of my business be considered for estate tax purposes and how will these taxes be paid?

Smart financial planning for your family involves budgeting, survivor protection, estate planning, insurance strategies, and saving for higher education. It also requires an awareness of how having a family impacts financial planning in general.

Prior to starting a family, successful young professionals are usually able to save a substantial percentage of their income into company retirement plans, IRAs and various investment accounts. Once they have children and incur the expenses of having a family, it becomes more difficult to save as aggressively. Later in life, when children reach financial independence and parents are in their highest earning years, savings tends to rise quite dramatically.

Thus, saving does not always occur at a uniform rate, and it is important for people who would like to achieve financial independence or a comfortable retirement later in life to steadily accumulate wealth by prioritizing saving and investing during the stages of life in which a high savings rate is most achievable.

Whether you are planning to start a family or already have one, the presence of a family creates additional financial concerns and usually leaves less time to attend to personal finance.

Here are some of the key questions to be considered:

• Do I need life insurance? If so, how much and what kind?

• What if I am unable to work? Should I get disability insurance?

• How much do I need to set aside for the future education of my children? In what types of accounts should I put my savings and how should it be invested?

• Can I afford private school?

• Can I afford a larger house?

• Does my family have adequate health insurance?

• What if I need to care for my parents AND my children?

• Are there other types of insurance I should purchase to protect my family?

• How will my loved ones be taken care of when I am gone?

Smart living decisions involve using limited resources of time, energy and money to optimize results for ourselves and our families across a range of activities over the course of our lives.

At JDM, we help clients do just this. By utilizing behaviorial finance concepts and decision making best practices, we help our clients stay focused on the big picture and employ clear thinking, defined priorities and an understanding of how the trade-offs among time, energy and money operate in their decisions.

As a result, clients feel less anxiety, stress and intimidation when making financial decisions and operate instead from a place of strength and confidence.

Here are a few examples of how time, energy and money interrelate in everyday decisions:

• 1. It costs money to take that vacation (money which will not be invested toward your retirement goal), but it may replenish your energy and be considered an ideal use of your time.

• 2. Do I take time and energy to manage my own investment portfolio or do I pay a professional to do so?

• 3. Do you clean your own home to save money OR choose to save your time and energy and hire someone to do this?

• 4. Do I use my time and energy to prepare my taxes or do I pay a tax preparer?