Encompass CPA CFP Investment Advisor financial planner Encompass Financial Services
Encompass Financial Services
your expert in all things Financial
Encompass Financial Services: Your Trusted Experts in Income Taxes, Personalized Financial Planning, Investment Management and Estate planning in San Diego.
Comprehensive Income Tax Preparation
At Encompass Financial Services we start with reviewing your previously filed returns, minimizing your taxes while preparing your current returns and looking for tax planning opportunities going forward.
Holistic Financial Planning
Our financial planners create thorough & complete financial plans that encompass all of your financial needs from Income Taxes & Investments to Trusts and Estate planning.
Strategic Estate Planning Solutions
We offer custom tailored Estate Planning advice for a secure future for you and generations to come.
Comprehensive Wealth Management Solutions
Skilled advisors offering tailored guidance for your financial success.
Encompass Financial Services: Guiding You Towards Financial Success
At Encompass Financial Services, our CPA & CFP certified financial planners & investment advisors strive to offer services that encompass all of your financial needs. A thorough review of your investment portfolio and previous tax returns will help us determine what your current situation looks like. You will be interviewed to help us get a solid idea of your retirement income needs, financial goals and future ambitions. After filing your current tax returns, we will look for any tax planning opportunities that may be available to save you money.
Next, we build a comprehensive financial plan that helps us calculate the minimum required rate of return for you to accomplish your financial goals. Once we have that, we can create an investment allocation model that helps ensure your success by running 1000’s of market simulations. Only the highest rated funds available are chosen to create your portfolio. We finish with reviewing your Estate planning, Trust and charitable gifting goals.
Once this is complete, we will continually review the performance of your portfolio on a quarterly basis, continue to look for tax savings opportunities and adjust your plan depending on your changing circumstances. We believe it is important to work with certfied CPA or CFP: If you are unsure of your current tax preparer’s licensing you can check here and for your investment advisor’s licensing you can check here .
Encompass Financial Services Success Stories: Real-Life Wealth Journeys
Discover why our clients rave about their experience with Encompass Financial Services. Read their testimonials and see how our personalized financial advice has helped them achieve their goals.
We’ve had a great experience working with Todd and his team at Encompass Financial Services. They are highly professional and thorough, consistently going the extra mile to help us save money. We really value Todd’s efforts throughout the year in estimating our tax liability and minimizing our payments, especially since we deal with multiple complex K-1s that arrive at different times. He has helped us with some investments, and he responds promptly to our questions and explains everything in a clear, easy-to-understand manner.
Shawn & Jennifer Baker
Entrepreneur
Todd has consistently excelled at preparing our income tax returns over the years. He effectively navigates the complexities of my work in the movie industry, which involves multiple W-2s, as well as managing a small business and a farm. His thoroughness and dedication to finding ways to save us money on taxes are truly impressive. We also appreciate his year-end tax planning services, which help us avoid any unexpected tax surprises.
Recently, he created a comprehensive financial plan for us, providing the knowledge and confidence we need for retirement. We feel assured that our investments will be professionally managed and our financial needs will be well taken care of.
Monty Stuart
Horse wrangler/trainer
I cannot express enough gratitude for the exceptional support I received during my highly contested divorce. Todd was not only incredibly professional but also deeply empathetic. He carefully and fully analyzed the data. Todd, took the time to listen to my concerns and consistently went above and beyond to ensure I understood the financial implications of every decision. His guidance was invaluable during this challenging time, and I truly appreciate all his hard work and dedication.
April Cde Baca
Del Mar, CA
Income Tax Services
Communication is the key to our 5 Star Service
At Encompass Financial Services we strive for 5 star service. First, we will review your previous tax returns. Then, we organize and scan your data and prepare your taxes. We will communicate with you when we receive your documents and if any documents appear to be missing. You will be notified when the tax returns are ready for review. Additionally, you will be contacted when the returns have been accepted electronically. We even reach out to you when we receive your payment for our services. You will be in communication during the entire process.
Strategic Planning
The fact that the tax code was written by attorneys leaves a large “grey area” for taxpayers. Our philosophy is to push a little towards the edges of the grey area to find you every possible deduction in an effort to save you tax. There are often opportunities to use entities such as Partnerships or S Corporations to minimize employment taxes that we can recommend. Additionally, we may discuss strategic ways to maximize your itemized deductions by doubling up on charitable gifts, mortgage payments & property taxes every other year or making Qualified Charitable Donations through your retirement account. We will also help you setup Charitable Remainder Trusts or Donor Advised Funds when appropriate.
Year End Tax Planning
After your returns are filed, we remain available for questions or for tax planning. Every year in October we contact our clients to offer year-end tax planning services. We will review your income/expense summaries, investment account statements and retirement or paystubs to make sure you won’t have any unexpected surprises. Lastly, we also look for opportunities to reduce taxes through tax loss harvesting in your investment accounts.
Specialized Tax Strategies to Build Wealth
We specialize in helping real estate professionals & investors save taxes by minimizing the Self Employment Tax, increasing Depreciation and maximizing Deductions. This can also help protect assets from litigation.
Let’s start by operating your primary business as an S Corp to minimize the Self Employment Tax, which is 15.3% on top of your Income Tax! If you made $300k last year that change could easily save you $15,000! Subsequently, we will look at your previous 3 returns for potential savings.
Cost Segregation
Next, we depreciate using Cost Segregation rather than a straight 27.5 year lifespan. Most CPA’s depreciate your rental properties using a standard split where 75% of the purchase price is depreciated over a 27.5 or 39 year life. However, the IRS is very clear that a building is composed of numerous different “types” of property some of which are depreciated over 5 years and qualify for bonus depreciation! Let’s look at the example below to see how this works:
But we don’t stop there because the IRS has income thresholds and limits on how much passive losses you can deduct on your rental. For those that are real estate professionals or meet the material participation guidelines, we recommend buying or transitioning to rentals with an average of 7 days or less. These short-term rentals don’t qualify as a “passive rental” but rather an actual business. Those losses can then be used to offset all of your other income without limit. Using our example and assuming a 35% Fed and 11% State tax rate-that is a savings of 25,000!
Corporations, Partnerships and Trusts, oh my!
As part of your liability protection program, we will also help you set up a revocable living trust, a Limited Partnership, and a C corporation which looks like this:
This structure does more than just protect you. It also gives you the advantage of enjoying the generous deductions available for medical expenses, automobiles and tuition programs allowed by a C Corporation which could easily save you another $5,000-$10,000. Total Saved as much as $50,000!
International Clients
Preparing tax returns for foreign residents involves navigating a complex landscape of regulations and requirements. Unlike U.S. citizens, foreign residents may be subject to different tax treaties and obligations, which can impact their income reporting and potential deductions. It’s essential to determine their residency status—whether they qualify as non-resident aliens or resident aliens for tax purposes—since this classification affects their tax liabilities. Accurate documentation, including income sources, tax identification numbers, and any applicable forms such as the 1040NR or 1040, must be meticulously gathered. Additionally, filing the appropriate Fincen Form 114 to report foreign bank or investment accounts & understanding any available foreign tax credits or exemptions under bilateral tax treaties can help optimize their tax position. Given the intricacies involved, many foreign residents benefit from professional assistance to ensure compliance and maximize their potential refunds.
Investment Advisory Services
Comprehensive Financial Planning & Risk Tolerance
In the realm of personal finance and investment management, the decision between simply choosing a risk tolerance and engaging in the comprehensive financial planning process holds critical significance. While understanding one’s risk tolerance is an essential component of investment strategy, it pales in comparison to the multifaceted benefits offered by a well-structured financial plan.
Understanding Risk Tolerance
Determining one’s risk tolerance involves assessing an individual’s comfort level with the potential volatility and fluctuations in the value of their investment portfolio. It has traditionally been a pivotal aspect of constructing an investment strategy, with individuals categorizing themselves as conservative, moderate, or aggressive investors based on their willingness and ability to withstand market fluctuations and potential financial losses. However, these answers are somewhat based on emotions as they may change depending on if the markets are doing well or if they are doing poorly. When things are up, clients might be willing to take more risk. When markets are down, clients might be more risk averse
Why build your portfolio based on risk tolerance alone when you don’t even know what the minimum rate of investment returns are required to meet your retirement income goals? Once you have that number, you can decide if there is any reason to take additional risk!
The Holistic Approach of Financial Planning
Conversely, the financial planning process encompasses a thorough and holistic approach that extends far beyond a mere assessment of risk tolerance. It delves into a wide array of financial elements with a focus on retirement funding to determine what rate of returns are NEEDED to ensure sufficient liquidity during your lifetime. Once we know what rate of returns are needed and that we have a 100% probability of success, we can fill in the rest of the plan including asset allocation, tax minimization strategies, and estate planning. A well-crafted financial plan serves as a roadmap, guiding individuals on a comprehensive and integrated path toward their financial objectives.
Comprehensive Risk Assessment: Financial planning involves a nuanced evaluation of an individual’s risk capacity, tolerance, and perception, taking into account factors such as income, savings, debts, and long-term financial aspirations. This comprehensive risk assessment provides a deeper understanding of an individual’s risk profile and guides the construction of an investment strategy that aligns with their overall financial plan.
Diversification and asset allocation: A well-designed financial plan incorporates a diversified investment portfolio that not only considers an individual’s risk tolerance but also addresses their specific financial goals, time horizon, and investment preferences. This approach optimizes portfolio performance through a balanced and strategic asset allocation.
Risk Management Beyond Investments: Financial planning extends risk management beyond investment considerations, encompassing areas such as insurance coverage, emergency funds, and estate planning. By addressing these broader risk management aspects, individuals can fortify their financial resilience and safeguard against unforeseen circumstances.
Adaptability and Flexibility: The financial planning process facilitates an adaptable and flexible framework for ongoing risk management, allowing individuals to continually evaluate and adjust their risk tolerance and investment strategy in response to changes in personal circumstances, market conditions, and financial goals.
In summary, while recognizing one’s risk tolerance is an important part of investment planning, embarking on the financial planning process supersedes this initial step. It empowers individuals to construct a comprehensive, well-rounded plan that identifies the minimum rate of return to be 100% confident of success, integrates risk management with a myriad of financial considerations, ultimately leading to a more resilient, effective, and sustainable approach to wealth management and financial success.
Estate Planning and Legal Services
IRS Audits
In 2024, IRS audits are expected to become more comprehensive and data-driven, reflecting the agency’s ongoing efforts to enhance compliance and streamline operations. With increased funding and resources, the IRS aims to target higher-income earners and complex tax situations, focusing on areas like cryptocurrency transactions and large business deductions.
Taxpayers can anticipate more sophisticated audit techniques, including the use of artificial intelligence and analytics to identify discrepancies. Additionally, the IRS is likely to increase its emphasis on educational outreach, helping taxpayers understand compliance requirements and reduce errors before audits occur.
Looking ahead, taxpayers should be prepared for potentially more frequent audits, especially if they fall into higher risk categories. Maintaining accurate records and being proactive in tax planning will be essential for navigating the evolving landscape of IRS audits. Overall, the future of IRS audits will prioritize transparency, fairness, and the use of technology to improve efficiency and effectiveness.
Offer in Compromise
Our Offer in Compromise (OIC) services provide a comprehensive solution for individuals facing tax debt challenges with the IRS. We specialize in negotiating settlements that allow you to pay less than the full amount owed, helping you achieve financial relief and peace of mind. Our experienced team conducts a thorough analysis of your financial situation, ensuring that we present a compelling case to the IRS that highlights your inability to pay the full amount. We handle all the paperwork and communications, guiding you through each step of the process. With our expert support, you can navigate the complexities of the OIC process, maximize your chances of acceptance, and ultimately move toward a fresh financial start. Legal Services are provided separately in our office or by zoom with our good friend William Hartsock, Attorney. Click the image to learn more.
Estate Planning: A Comprehensive strategy to manage, distribute wealth and care for loved ones.
Estate planning and trusts involve creating a comprehensive strategy to manage and distribute your assets according to your wishes after you are incapacitated or after your passing. This process includes drafting essential documents such as wills, trusts, health care directives and durable powers of attorney, which help ensure your estate is handled efficiently and in accordance with your preferences.
A trust, in particular, can provide added benefits, such as avoiding probate, protecting assets from creditors, and ensuring privacy in your financial affairs. By engaging in estate planning, you can also address important issues like guardianship for dependents and tax minimization strategies, ultimately providing peace of mind for you and your loved ones. We often help clients with their charitable gifting goals using Charitable Remainder Uni Trusts (CRUTs) which can provide a beneficiary with an income stream while also giving clients current income tax deductions. With thoughtful planning, you can secure your legacy and make informed decisions about your future and the future of your family. Legal Services are provided separately in our office or by zoom with our good friend Kevan McLaughlin, Attorney. Click the image to learn more.
Living trusts and charitable remainder trusts (CRTs) are valuable estate planning tools that serve distinct yet important purposes.
Living Trusts
A living trust is a legal document created during an individual’s lifetime that allows them to place assets into the trust for their benefit while alive and to determine how those assets will be distributed after their death. Here are some key benefits:
- Avoiding Probate: One of the primary advantages of a living trust is that it can help your heirs avoid the lengthy and often costly probate process, allowing for quicker access to assets.
- Privacy: Unlike wills, which become public record during probate, living trusts remain private, keeping your estate plans confidential.
- Flexibility: Living trusts can be altered or revoked at any time while the grantor is alive, providing flexibility in managing assets as personal circumstances change.
- Incapacity Planning: If the trust creator becomes incapacitated, the successor trustee can manage the trust assets without needing a court-appointed guardian.
Charitable Remainder Trusts
A charitable remainder trust is an irrevocable trust that provides income to the trust creator or other beneficiaries for a specified period, after which the remaining assets are donated to a designated charity. This type of trust offers unique advantages:
- Tax Benefits: CRTs can provide immediate tax deductions based on the present value of the charitable donation, reducing the donor’s taxable income.
- Income Stream: The trust can provide a steady income stream to the beneficiaries for a set term or for their lifetimes, making it an attractive option for retirement planning.
- Charitable Giving: CRTs enable individuals to support charitable causes while also benefiting financially, aligning personal financial goals with philanthropic interests.
- Estate Planning: By removing assets from the estate, CRTs can reduce estate taxes, allowing more wealth to be passed on to heirs.
Click on the flyer to the right to learn more—–>
Both living trusts and charitable remainder trusts play crucial roles in effective estate planning. Living trusts provide control, privacy, and efficiency, while CRTs offer a way to blend charitable giving with financial planning. Understanding and leveraging these tools can significantly enhance an individual’s estate plan, ensuring their wishes are fulfilled while optimizing tax benefits and financial security.
Corporations or LLC’s for Liability Protection, Tax Savings & Estate Preservation
Using a Limited Liability Company (LLC) as a holding company for real estate investments is a strategic approach that offers numerous benefits for property owners and investors. One of the primary advantages is the protection it provides against liabilities. By holding real estate within an LLC, investors can shield their personal assets from lawsuits or debts related to the properties. If a tenant were to file a lawsuit or if a property incurs unexpected expenses, the liability is confined to the LLC, safeguarding the owner’s personal finances.
Additionally, an LLC can facilitate more efficient management of multiple properties. When properties are held under a single holding company, it simplifies financial reporting and operational oversight. Investors can track income and expenses more effectively, manage cash flow, and make decisions based on the overall performance of their real estate portfolio. This centralization can also make it easier to secure financing or negotiate deals, as lenders often prefer to work with established entities rather than individual owners.
Tax benefits also make using an LLC attractive for real estate holding. LLCs can elect to be taxed in various ways such as a sole proprietorship, a partnership, an S Corporation or a C Corporation. They are typically subject to pass-through taxation, which means profits and losses are reported on the owners’ personal tax returns. This can help avoid the double taxation that often occurs with traditional corporations. Moreover, real estate investors can take advantage of various tax deductions, such as depreciation and operational expenses, which can further enhance their financial returns.
Finally, structuring an LLC as a holding company allows for greater flexibility in ownership and succession planning. Investors can easily add or remove members, transfer ownership stakes, or pass assets to heirs without incurring significant tax implications. This flexibility makes it easier to adapt to changing investment strategies or personal circumstances, ensuring that the real estate portfolio remains aligned with the owner’s goals over time. Overall, using an LLC as a holding company for real estate is a sound strategy for protecting assets, optimizing management, and enhancing financial efficiency.
Real Estate
Real estate brokers provide expert guidance and support throughout the buying, selling, or renting process. They leverage their in-depth market knowledge to help clients navigate the complexities of real estate transactions. Services include assessing property values, marketing listings, negotiating offers, and facilitating inspections and closings.
Brokers also offer valuable insights into local neighborhoods, schools, and market trends, ensuring clients make informed decisions. Whether you’re a first-time buyer, a seasoned investor, or looking to sell your property, real estate brokers are dedicated to delivering personalized service and achieving the best possible outcomes for their clients. With their expertise, you can confidently navigate the real estate market and realize your property goals. We believe that Mindy is a Realtor you can trust, and we have seen that she will work tirelessly to market your home.
Communication is Key
You can expect consistent, clear, and proactive communication throughout every step of the process. From guiding buyers in finding the perfect property to preparing sellers for a successful listing, I provide regular updates on showings, open houses, and offers to keep you fully informed. I will provide you with a clear understanding of each stage of the property purchase or sale process, including all necessary paperwork, to ensure you feel confident and comfortable every step of the way.
Your Best Interests
I am fully committed to serving your best interests, offering honest advice and professional recommendations while respecting your decisions at every step. My goal is to guide you without pressure, ensuring you feel completely confident in each choice. With a deep understanding of local trends, neighborhoods, and market dynamics, I’m here to support you in achieving your real estate goals.
Personal Integrity and Professionalism
I will always be truthful and trustworthy. I abide by the National Association of REALTORS Code of Ethics. I will maintain complete confidentiality with all personal and sensitive information disclosed to me. Click my image to learn more.
Stop by today for a complementary coffee or refreshment.
12636 Highbluff Dr, #110
Del Mar, CA 92130
(858)481-4844
info@encompassfinancial.net
Important Disclosures: The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own situation before making any investment decision. Investing involves risks, including loss of principal.
All expressions of opinion are subject to change without notice in reaction to shifting market or economic conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.
Supporting documentation for any claims or statistical information is available upon request. This information is not a solicitation to invest in any specific products. Past performance does not guarantee future results. Most investments offered by this company are not FDIC insured.
This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, we recommend a consultation with a qualified tax advisor, CPA, financial planner, or investment manager. A donor’s ability to claim itemized deductions is subject to a variety of limitations depending on the donor’s specific tax situation. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
Todd Wiersum is a licensed Certified Public Accountant (CPA) and Sole-Owner of Solstice Tax Solutions Inc. He spends 80% of his time as an accountant with Solstice Tax Solutions Inc, an affiliated CPA firm of Encompass Financial Services. Solstice Tax Solutions Inc. may recommend Encompass Financial Services to accounting clients in need of advisory services. Todd Wiersum may recommend Solstice Tax Solutions Inc. to advisory clients in need of tax services, all of which creates a conflict of interest. Tax services provided by Solstice Tax Solutions Inc. are separate and distinct from the advisory services of Encompass Financial Services and are provided for separate and typical compensation.
There are no referral fee arrangements between Encompass Financial Services and Solstice Tax Solutions Inc. for these recommendations. Encompass Financial Services clients are never obligated to use Solstice Tax Solutions Inc., William Hartsock Attorney, Kevan McLaughlin Attorney, Mindy Larson Realtor or Exp Realty Crosby Home Team for their services. There are no referral agreements in place between Encompass Financial Services, Solstice Tax Solutions Inc., William Hartsock Attorney, Kevan McLaughlan Attorney, Mindy Larson Realtor, EXP Realty, or the Crosby Home Team.