Saturday, December 2, 2017

Self-Directed IRAs - Tax-Advantaged Pathways Beyond Stocks and Bonds

Barry M. Kornfeld is a financial advisor based in Boca Raton who provides Florida clients with a full range of retirement and income planning solutions. He specializes in a category of secured bridge loans known as First Position Commercial Mortgages, or FPCM's that provide lenders with 6% interest returns throughout their 1-year term and present a safer alternative to many other strategies. Barry M. Kornfeld emphasizes the importance of balanced allocation, which often includes contributions to tax-advantaged IRA plans

In addition to Roth and traditional IRAs, one savings option that many approaching retirement choose is self-directed IRAs, which allow placement of funds in asset types beyond bonds, stocks, and mutual funds. These range from precious metals to real estate, as well as private lending vehicles. Able to outperform traditional IRAs, self-directed plans also carry with them expanded risks and thus attract those with in-depth market knowledge and balanced portfolios. 

Setting up a self-directed IRA typically involves working with a specialized overseer to transfer the funds from the existing retirement account. Alternatively, this method can involve setting up a schedule for annual contributions that allow it to grow over time.

Thursday, September 21, 2017

Financial Risk Tolerance of Older Versus Younger Adults

As head of Boca Raton, Florida-based First Financial Tax Group, financial advisor Barry M. Kornfeld works with a clientele that considers safety of principal a primary concern. First Financial provides its clients with alternative income vehicles such as CLOs, or co-lending opportunities, also known as secured bridge loans. These and other products offered by Barry Kornfeld are designed to provide a regular income stream and full principal payout upon maturity.

Financial professionals have long viewed older adults as more focused on financial security than their younger counterparts, and recently, a number of studies have backed up these claims. When faced with the potential for loss of any kind, senior adults tend to be warier. 

Neuroscientists who have studied the issue have found that this aversion to risk may correlate with the recognition that one’s reaction times and ability to strategize based on new information tend to decline with age.

Some researchers have noted a trend toward risk aversion, regardless of age. One recent survey showed that about two-thirds of individuals who responded preferred slow-growth ventures that guarded their principal, rather than riskier ones with higher-growth potential. 

In working with a financial professional to select products such as CLOs, clients can realize a wholesome balance, with a typical annual yield of 6 percent and a plan to secure the principal at maturation.

Tuesday, September 5, 2017

How Much Money Do You Need to Retire?

Barry M. Kornfeld is the principal at First Financial Tax Group in Boca Raton, Florida. As a financial advisor, Barry Kornfeld helps clients establish low-risk income and growth strategies for retirement.

Retirement planning is a complex process with innumerable options to consider. However, asking a simple question can be helpful: roughly how much money do you need for a comfortable retirement? 

There is no perfect answer to this question and answers can differ wildly, particularly considering each individual’s specific financial situation and intentions for retirement. Retirement professionals estimate most people’s post-retirement expenses to be between 70 and 80 percent of those prior to retirement. These figures might seem excessive to those who do not plan to travel or engage in many recreational activities in retirement but may be too conservative for those who do. 

To get a rough idea of retirement needs, compare about 75 percent of your income to expected Social Security and pension payments, which can be provided by the Social Security Administration and a pension manager. Post retirement income can be subjected to a number of taxes and penalties, so financial experts suggest individuals should expect a 4-percent withdrawal fee. 

After accounting for these fees, you are left with an idea of your basic retirement income. The gap between this figure and 75 percent of your current income is the amount of money you should save heading into retirement.

Thursday, August 17, 2017

A Primer on Power of Attorney

Florida financial advisor Barry M. Kornfeld is the principal of First Financial Tax Group, a full-service advisory headquartered in Boca Raton. Barry Kornfeld frequently advises clients on estate planning matters and helps them to establish power of attorney

An essential component of any estate plan, “power of attorney” refers to a legal document that grants someone else the power to make financial decisions on your behalf. Power of attorney typically comes into effect when a person becomes mentally incapacitated or otherwise unable to make decisions for themselves. With a durable power of attorney in place, the named party can handle responsibilities such as managing investments, paying bills, and making financial decisions.

In addition, power of attorney may grant a trusted individual the ability to direct the incapacitated person’s medical care. Often known as a health care proxy or attorney-in-fact, this person is legally bound to follow preferences regarding medical treatment. Medical power of attorney may involve denying or consenting to medical treatments, diagnostic procedures, and surgeries.

Wednesday, July 12, 2017

Financial Retirement Planning

A financial advisor and principal of First Financial Tax Group, Barry M. Kornfeld provides tailor-made income strategies that meet client goals and take into consideration a range of economic factors. The clientele of Barry Kornfeld’s company primarily consists of individuals planning for financial retirement. When planning for financial retirement:

1. Review your financial status. Conduct a thorough assessment of your current financial situation, including an examination of how you allocate your money and contributions to your bank and other financial accounts. This will serve as a launch point and help you determine a good direction for future savings. 

2. Further your financial education. The complexity of financial retirement can seem daunting. Dedicate time to learning about retirement financing and the various factors involved. You can also hire a professional to provide guidance and advice. 

3. Start saving early. The amount of time your wealth has to accumulate and grow is one of the fundamental variables in saving for your retirement. Start saving as early as possible. 

4. Identify additional savings. Rising retirement costs, long life expectancy, and other factors can make planning for retirement challenging. Identify other opportunities for savings, such as storing extra funds and increasing your retirement contributions whenever you receive a pay raise.

Wednesday, March 29, 2017

What You Receive With an FPCM

Thursday, February 2, 2017

Tips for Easing the Transition into Retirement


An experienced financial advisor and a principal of Boca Raton, Florida-based First Financial Tax Group, Barry M. Kornfeld helps clients develop retirement income plans. In the course of doing so, Barry Kornfeld has come to understand that the transition into retirement can be challenging, particularly when it comes to making the adjustment from working daily to not working at all. The following tips are intended to facilitate that transition.

1. Create goals for your retirement so that you have something to work toward and can remain active. A report by the Institute of Economic Affairs has noted that the likelihood of clinical depression increases by 40 percent following retirement and that this is likely associated with the lack of purpose some may feel upon retiring.

2. Maintain your friendships to reduce the stress associated with the transition. Staying social can also stave off cognitive decline, as demonstrated in a study by the Rush Alzheimer’s Disease Center in Chicago, which found that socially active seniors experienced a 70 percent lower chance of decline. Other studies have found that being social results in a 30 percent decrease in symptoms related to depression.

3. Finally, understand that the transition will take time, so be patient and develop a plan. Be prepared for your feelings about your retirement to change regularly, often for several months after you have retired.

Tuesday, January 3, 2017

First Position Commercial Mortgages Offer Safer Income Alternative

A graduate of American University, Barry M. Kornfeld is an experienced financial advisor who functions as the principal of First Financial Tax Group in Boca Raton, Florida. In this position, Barry Kornfeld offers the firm’s clients a wide range of financial services, including the opportunity to obtain first position commercial mortgage notes, or FPCMs.

A first position commercial mortgage note refers to a financing approach that offers clients a safer fixed-income alternative. Secured by high-value commercial real estate as collateral, clients who use FPCMs in their portfolio loan an amount of money over the course of only one year. In doing so, these clients receive fixed interest payments on their FPCM note at an annual rate that starts at six percent. This interest is paid out monthly, which is often ideal for Kornfeld's largely retired clientele.

The FPCM is a fixed-income alternative that provides a higher degree of safety due to the fact that the client is listed as the first position lien holder on the mortgage of a commercial property. In the event of default on the commercial bridge loan by the property owner, the specialty mortgage company that Kornfeld's team uses for these transactions is contractually obligated in the documents to make the interest & principal payments to FPCM note holders, thus providing continuity, and much desired peace of mind. Kornfeld says, "...they due this to protect their own second interest which is subordinate to all FPCM note holders, in every transaction available..."