Compound’s Post

We're excited to announce that we crossed $2 billion of assets under management and 30+ financial advisors. "Managing $2 billion of client assets is a testament to our team’s dedication and the trust our clients place in us," said Christian Haigh, our co-founder and CEO. "Our rapid growth reflects our unwavering commitment to delivering top-notch financial planning and wealth management solutions to our diverse clientele. And it’s why we continue to attract exceptionally talented financial advisors." Learn more about our recent milestones ⤵︎

Stephen Dean, CFA is back with his monthly State of the Market commentary, covering recent market events and why they matter. After a weak start to the quarter, equity markets rallied in May and June to close out an especially strong second quarter and first half of the year. Concerns of resurging inflation that had spooked investors in April eased in May and June while most measures of economic activity remained strong. The May core Personal Consumption Expenditure index (PCE) — the Fed’s preferred price gauge, which excludes food and energy — that was released at the end of June, rose 0.1% from the prior month, the lowest monthly increase so far in 2024. The core PCE index now stands 2.6% above levels from a year earlier. As progress on bringing inflation down to the Fed’s 2% target remains slow, investors have reduced their expectations for how soon the Fed will begin cutting interest rates.   The change in interest rate expectations could have easily brought down stock returns, but the solid economic conditions and excitement around companies involved with AI that continued in the second quarter bolstered investor’s sentiment. You can continue reading the rest of Steve's commentary about the first half of the year here: https://lnkd.in/eqfdhYFf

Why do you need an exit plan for your business? Exit planning is a strategic process that prepares you for the sale or transition out of your business. It involves setting goals, understanding options, and developing a systematic plan. A plan that aligns not only with your business objectives but also your personal goals. Exit planning is crucial for maximizing your business's value — by identifying what’s driving value in your business and growing it, you can boost your eventual exit value. A successful exit plan offers direction and clarity, helping you make better decisions in the future. Effective exit planning can reduce your tax burden and ensure a successful transition, protecting the business's future success. Read Kyle Rudduck, CFA, CFP®'s exit planning guide for business owners here: https://lnkd.in/eSjd4TW3

From inception to exit, this is what you need to know about integrating your business and personal finances: Week 1 → Jesse Porter, CFP® shared ideas to help you choose the right business entity. Week 2 → Kristin Carter, CPA talked strategies to reduce your taxes as a business owner. Week 3 → Shannon Lynch, CFP® covered how to pick the right retirement plan for your business. This week → Kyle Rudduck, CFA, CFP® is discussing how to plan for a sale of your business. The Manual is your resource for all this and more: https://lnkd.in/eb5esbNh

How do you choose between a SEP IRA and a Solo 401k? The Solo 401(k) can provide a greater tax advantage if you are a high earner and don’t have any employees because of its higher contribution limits. Plus, the Roth option allows for tax-free withdrawals in retirement. The SEP IRA's primary advantage is its simplicity and the ability to reduce taxable income through pre-tax contributions. Read Shannon Lynch, CFP®'s guide for business owners to learn more: https://lnkd.in/euyXk4yB

In the past six months, we've welcomed 21 new financial advisors, bringing our total to over 30 talented professionals who manage more than $2 billion of assets for our clients. Thank you, Steve Randall, for highlighting our journey in InvestmentNews. We're just getting started!

In 2024, you can contribute up to $69,000 into a solo 401(k). If you are 50 or older, you can also make a $7,500 catch-up contribution ($76,500 in total). These limits encompass both the employer and employee contribution amounts for a solo 401(k). With a SEP IRA, you can also contribute up to $69,000. However, there are restrictions — contributions must not surpass 25% of compensation or $69,000, whichever is lower. And for self-employed individuals, the limit is the lesser of 20% or $69,000. An additional consideration for SEP IRAs is that employers also need to contribute an equal percentage of compensation for all eligible employees.

"Compound Planning, a digital family office, surpassed $2 billion in AUM, growing its AUM by over 80% since September," wrote Chris Latham from Wealth Solutions Report about our recent milestones. "The firm also added six more financial advisors, bringing its year-to-date total recruits to 21 advisors. Compound Planning now has over 30 experienced financial advisors." Read more here: https://lnkd.in/eCNM3rrp

SEP IRA or Solo 401(k) — which retirement plan is right for me? These are two popular options for small business owners and self-employed individuals. They both offer tax advantages, but differ in terms of flexibility, contribution limits, and other requirements. Let’s take a look at each:

ICYMI: this month we're covering everything you need to know about integrating your business and personal finances: Week 1 → Jesse Porter, CFP® shared ideas to help you choose the right business entity. Week 2 → Kristin Carter, CPA talked strategies to reduce your taxes as a business owner. This week → Shannon Lynch, CFP® is covering how to pick the right retirement plan for your business. From starting a business to planning an exit, the Manual is your resource for all this and more: https://lnkd.in/eb5esbNh