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Financial Planning

Retirement Planning | Tax Planning | College Savings
Our Financial Planning services blend in-depth expertise with cutting-edge technology. We are committed to your financial success, operating with integrity and a personal approach. Specializing in Retirement Planning, Tax Planning, and College Savings, we craft strategies that are precisely aligned with your goals. Trust in our team to manage your financial complexities, paving the way for a secure and prosperous future.
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    From Insurance Agent to Financial Planner

    I would like to tell a quick story. When I started the business, I was fresh out of high school and obtained my life insurance license. I was not a licensed securities broker yet. This was in 1981. I spent a lot of time around many insurance agents who were much older than me. This was also when Financial Planning was in its infancy.

    The common thought process at that time among insurance agents was to pass the series 6 and 22 securities license exams and then you could call yourself a financial planner. Once you were licensed, you could then sell not only all insurance products but you could now sell mutual funds, variable annuities, and limited partnerships. With that, you could call yourself a financial planner, but at the end of the day, you were still a product salesman.

    The transition from insurance agent to financial planner was fun to watch. One day, an agent was just another insurance agent, and once he/she passed the securities licensing exams, that same agent was strutting around saying he was a financial planner. Even though I was very young, I could not let that slide by me. I would confront the same agent-turned-planner and call him out on the fact that nothing had really changed other than his product offering. He knew nothing about financial planning.

    There are three views of what a financial plan is. The first is the single-purpose view. It can also be viewed as selling a product to fill a need. Some practitioners take the position that the simple selling of a financial product or service to a client to solve a single financial problem constitutes financial planning. This could range from a securities broker advising a customer to buy shares of common stock of a particular company. A banker who opens an IRA account. And a life insurance agent who sells a key man insurance policy to the owner of a small business.

    There is also the narrow-focus view. Where practitioners embrace more than just solving a single financial problem of a client and must extend beyond the selling of a single financial product or service. They may emphasize that there are three basic categories of client financial needs, products, and services. Which are comprised of insurance planning, tax planning, and investment planning.

    Lastly, there is a comprehensive-focus view. Financial planning must consider all aspects of the client’s financial position, which includes all of the client’s financial needs and objectives, and must utilize several integrated and coordinated planning strategies for fulfilling those needs and objectives.

    In the end, it depends on how many assets you own. How complicated are those assets? Who do you want to pass those assets to?

    If you’re early in your career and starting to save, the single-purpose plan is likely a good fit. It involves contributing to your workplace 401k plan, getting a term life insurance policy for family protection, and having a simple will drafted by an attorney. As your savings, investments, and income grow, perhaps with starting a business, you’ll progress from a narrow-focus plan to eventually needing a comprehensive financial plan as you become more successful.

    There are six steps to the financial planning process.

    1. We gather the relevant information about you and your family.
    2. We analyze your present position.
    3. We develop a plan for achieving your objectives.
    4. We obtain your approval of the plan.
      We implement the plan.
    5. We review the performance of the plan periodically and revise the plan as needed.

    The biggest sticking point is gathering all your information. Many people never get beyond this first step. It takes time, and it takes work.

    Retirement Planning

    Retirement is a significant milestone, marking the transition into a phase of life where you can enjoy the fruits of your labor. Effective retirement planning is essential to ensure you can live comfortably without the regular income from employment. At Callaway Financial Services, we specialize in guiding you through the complexities of Retirement Planning. Our approach is tailored to meet your unique needs, aligning with your financial status, including assets, savings, and investments, to build a robust retirement strategy.

    Why Retirement Planning is Crucial

    Senior hiking, mountain selfie and elderly friends in nature on a walk with freedom in retirement. .

    How We Help

    Plan Your Retirement with Confidence

    At Callaway Financial Services, we bring expertise in IRA, 401(k) rollovers, tax planning, and investment management to craft a personalized retirement strategy. By addressing your unique financial planning needs and focusing on creating sustainable income streams, we aim to secure your future. Our commitment to your financial well-being is reflected in our innovative use of technology, expert knowledge, and personalized service. With us, rest assured your retirement goals are in capable hands.

    Contact Callaway Financial Services today to start shaping your retirement dream into a secure and fulfilling reality. Let’s build a future where your retirement is a time of prosperity and peace of mind.

    Grandparents with children, happy on beach on holiday and enjoying retirement. Grandpa, grandma and.

    Tax Planning

    At Callaway Financial Services, we recognize the critical role that effective tax planning plays in financial health. Tax planning is an essential component of financial planning, aimed at minimizing tax liabilities and maximizing tax benefits. By carefully analyzing your financial situation and leveraging various tax advantages, we help you retain more of your hard-earned money and increase your savings over time.

    Why Tax Planning is Vital

    Effective tax planning strategies can help you reduce your overall tax burden, ensuring you only pay what is necessary and not a penny more.
    You can enhance your overall investment returns by strategically placing investments in tax-advantaged or tax-free accounts, such as certain investment accounts and 529 plans.
    With the right tax planning, you can secure your financial future, ensuring you have more funds available for your retirement accounts and college savings for your children.
    Tax laws are constantly evolving. Professional tax planning helps you stay compliant and take advantage of new tax benefits as they arise.

    How We Help with Tax Planning

    Considering your unique financial circumstances, we offer tailored tax planning services to optimize your tax benefits.
    Our team is adept at identifying the most beneficial tax advantages for your situation. This includes guiding you on the best use of savings plans and leveraging tax deductions effectively.
    Whether planning for your child’s education through a 529 plan or preparing for retirement, we ensure that your tax strategy supports these significant milestones.
    Tax laws and personal financial situations change. We regularly review and adjust your tax plan to ensure continued alignment with your goals and compliance with current tax laws.
    Our tax planning is integrated with other aspects of your financial plan, including retirement planning, investment accounts management, and college savings strategies, ensuring a holistic approach to your finances.

    College Savings

    At Callaway Financial Services, we understand that saving for your child’s college education is a major component of financial planning. College savings involves setting aside funds specifically for higher education expenses. With the increasing cost of college tuition, having a robust college savings plan is more important than ever.

    Why College Savings is Crucial

    Establishing savings for your child’s college is a very admirable goal. And there are many vehicles to fund this goal. We believe it is important to provide the greatest opportunity for our children. Higher education or learning a specific trade or skill gives them a better opportunity to succeed.
    Yes, you can do so through individual savings and or investment accounts held in your name. Though this is not the most tax-efficient, it is the least complicated, and there are no rules to deal with. All earnings on the savings or investment are taxable in the year the earnings were made at the parent’s tax rate. If the child does not go to college, you can give the money to them, or you can keep the money for yourself.

    The Uniform Gift to Minors Act account, commonly referred to by its acronym UGMA and UTMA, depending on who you are talking to. In the past, this type of account was used to transfer wealth from one’s estate to the children. Often, the funds transferred to the account are used for college.

    The investments in the UGMA account are taxed at the child’s tax rate only if the earnings exceed $1,050 in a given tax year. The parent is the custodian of the account and controls access to the funds up to and until the child turns 18. Once the child turns 18, the child has full control of the account and can spend the money as they wish. The parent loses control. There is a maximum of $16,000 gift per year which can be made to an UGMA account, $32,000 for married couples.

    The Coverdell IRA works much like the Traditional IRA, the owner receives a tax deduction in the year of the contribution, and the investment returns grow tax-free if the distributions are used for qualified education expenses. The parent can change the beneficiary if the first child does not attend college or if the funds are not completely depleted when that child graduates. The maximum contribution is $2,000 per year.

    A 529 College Savings Plan is probably the best program available. Contributions are made with after-tax dollars. There is not a tax deduction up front, but the investments earn tax free if distributions are used for qualifying higher education expenses. A parent is made the custodian, and the child is the beneficiary. The parent/custodian maintains absolute control of the funds in the 529 plan.

    If the child never attends college or any form of higher education or if the funds are not depleted by the first child, the parent/custodian can change the beneficiary to another child, relative or non-relative. And the first beneficiary can receive nothing. The change of beneficiary does not cause a taxable event.

    If no family member goes to college, the parent/custodian may distribute all funds and pay a 10% penalty on the earnings plus their normal income tax rate. The maximum one-time contribution is $90,000 per parent and $180,000 for married couples for a five-year period for 2024.

    Otherwise, the maximum contributions fall back to the $18,000 annual gift limit per parent, $36,000 for married couples.

    As soon as your child is assigned a social security number. Sooner is always better.

    The Callaway Approach

    College savings means different things to different people. For some, it means the accumulation of money for their children’s education. For others, it may be their child’s key to a prosperous future. A superior education may present greater choices to fulfill their child’s dreams. You probably have a mental picture of what you want your child’s future to look like. Your child probably has a much different view.

    No matter what education or vocation they choose, by funding the necessary savings to provide for their education, you will pave your children’s way to a successful career. Not everyone is able to earn a full scholarship or obtain a grant.

    Loans for tuition have become an incredible burden to our young graduates. In fact, I have a friend in his 60s who, to this day, has not paid off his student loans and is making less money than when he first graduated from college.
    Our job prospects have changed dramatically. The hard reality is you will need money to help your children prepare for their careers. Special care will need to be taken to weigh the cost versus the job prospects and, ultimately, your child’s future paycheck.

    How We Help with College Savings

    Plan for the Future

    At Callaway, we want to accommodate your needs. Not everyone needs a comprehensive financial plan. We will provide you with as simple or as complex a financial plan as you require. We have provided some tools to help you get started on this website. By gathering and entering your information, we can begin the journey and develop the right plan to accommodate your needs.

    We are ready and willing to listen to your unique circumstances and offer recommendations based on your total financial picture. The Callaway Approach places your current needs and your lifetime goals at the heart of the plan. We look forward to working with you now. Please do not delay. Please do not tuck us away in the back of your mind to get to your financial planning sometime later.

    Procrastination is the greatest enemy of us all. The old adage states, “A failure to plan is a plan for failure”.
    When it comes to managing your finances and planning for your future, choosing a financial partner is critical. Here at Callaway Financial Services, we don’t just offer services; we provide a partnership that prioritizes your financial well-being and future aspirations. Here’s why choosing us for your financial planning is a decision you can make with confidence:

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