RO & Associates focuses on the preservation of the equity of its clients. As professionals, we focus on concepts of financial planning, making a clear vision for our clients.
Financial Planning Advisors in Houston
We drive an evaluation of your present assets, using variables and indicators that allow us to predict with a certain level of precision their potential preservation and sustainability in the future, focusing on the management of your assets, investment plans, retirement plans, protection of your assets and your legacy.
To do this, we have established a team of qualified and certified professionals in the state of Texas to provide timely and accurate financial advice that allows our valuable clients to realize their future goals, optimizing their resources.
Our team is qualified to provide advice in the following areas:
Financial Assets Management: Cash Flow and Liability Management.
In any company, when it is preparing a report of the sales made, as well as the expenses that have been generated, a differential is obtained that allows knowing the obtained profit; while future projection has made, considering the experiences of previous periods. Once is done this first step, we could foresee when it is possible, to make new expenses or investments, if the company requires it.
The foregoing is a projected statement of the cash inflows and outflows in a certain period or also known as cash flow; it has performed in order to know the amount of cash required by the business to operate during a certain period, such as a week, month, quarter or year.
A frequent problem in micro and small companies is the lack of liquidity to cover immediate needs, so either individuals or companies, are frequently call upon to request short-term and very high-cost loans.
A very simple way to plan and control short and medium term resource needs, is to calculate the cash flow of any business.
An effective cash flow allows you to:
- Make the decision of the best short-term investment mechanism when there is a surplus of cash.
- Take the necessary measures to define the funding source when there is a shortage of cash, such as managing the owner’s resources, or, where appropriate, initiating the necessary procedures to obtain loans that cover said shortage and allow the company to continue operating.
- Define when and what amount loans previously purchased must be paid.
- Define when to make significant disbursements of money to keep the company operating.
- How much can be available to pay additional benefits to employees such as bonuses, vacations, distribution of profits, and so on.
- How much cash can be available for personal matters without affecting the normal operation of the company.
Book a free consultation with our team; we could help you manage your cash flow.
Equity Preservation and Sustainability.
As an investor, it is good to know that time is on your side. Because with all that time come many opportunities. Of course, there are also many questions. How will the markets go in the next decade or two? Does the inflation levels will stay low, or will see increase inflation rise to normal levels?
If you are looking for a way to capitalize on all the opportunities that time can provide within your planning, while reducing the impact of some of the unknowns, consider protecting a portion of your retirement assets. Check with our advisors.
Build legacy protection by guaranteeing your loved ones 100% of your initial investment or the most recent restoration value in case the owner dies during the first 18 years of the waiting period; in years 19 and 20, it guarantees 150% of your initial investment or the most recent restart amount.
Our advisors have different tools that will allow our clients to establish an investment plan, even for the realization of their financial goals, or to protect your future assets and at the same time guarantee their sustainability over time.
Retirement and Education Plans.
Retirement Planning:
Many people have misconceptions about some of the basic facts of retirement. Unfortunately, these misunderstandings can lead to the difference between a retirement you want and a retirement from which you settle.
Have you thought about the first three retirement realities and how will you combine your distribution plan to account for this?
- Your retirement age, will affect your income?
- You will still be paying income tax?
- Your Social Security benefits may be taxable?
These and other questions are answered by our financial professionals, who can not only provide a more accurate perspective on how to plan your retirement, they will also put at your disposal different tools that will generate better future benefits accompanied by proper tax advice.
Educational Planning:
Saving for college education can be an intimidating task for many parents who may be inexperienced with tax laws, and unsure of how to balance their own financial goals, such as saving for retirement and the financial needs of their children.
There are many options available to fund a child’s education, and that one or more options to choose from requires consideration of many important factors.
One consideration is whether the parents want the child to pay for any part of their own education, such as when obtaining student loans. Doing so would allow a child to become interested in their education.
Note: Congress may change the treatment of assets for financial aid eligibility and, therefore, any comments below are subject to change, and a financial aid eligibility determination must be corroborated with a professional knowledgeable in this area.
A second consideration is what expenses are eligible with respect to each option. Some education savings vehicles you can used only for college tuition, while others can be uses for books, fees, lodging and food, equipment and other education-related expenses. Still other plans allow funds to be use for primary or secondary education, in addition to university and university education.
Another consideration is the tax implications of saving and paying for a child’s education. This consideration includes a review of the applicable federal and state taxes on income, the gift, the estate, and the generation omission.
Note: There may be deductions and tax credits at both the federal and state levels that are beyond the scope of this paper.
It is also worthy of consideration, especially for parents with only one child, what happens with the funds allocated to an education plan if that child does not attend college.
Another very important consideration is the other financial goals of the parents, including saving for retirement and paying for life insurance protection and the potential for double use of the allocated funds.
Perhaps the most important consideration of all is time. If the child is very small and the university is far away, then the parents have time to accumulate and invest money systematically, which allows the growth of the goods. If the university is around the corner, then other options should be consider, such as the loan against existing assets.
Make a free appointment with our advisors; they will be pleased to help you.
Succession Planning.
An important strategy of estate planning has been the optimal use of unified credit against the property tax as provided by the Internal Revenue Code §2010. This credit is define as the applicable exclusion amount; or, “the amount of the exemption”.
The Tax Relief Act, reauthorization of unemployment insurance and job creation was enact on December 17, 2010. For 2011 and 2012, this law stipulated a federal gift of $ 5 million, property transfer tax exemption, and skip generation, indexed for inflation that begins in 2012. “This regulation was recently modified in the Tax Cut & Job’s Act, increasing its amount to $ 11 million”
The new tax reform permanently extended the exemption from the federal tax to the transfer of $ 11 million for donations, goods and generations amount in 2018, indexed in the future by inflation.
Although the amount of the exemption can go through a direct transfer to the heirs of an individual, the use of a credit shelter trust can help ensure access to the needs of the surviving spouse without causing the property to be included in the spouse’s estate survivor.
As this trust mechanism, will not be taxed on the estate of the surviving spouse, it is generally preferable to finance the trust quickly appreciate the assets of capital gain. Type compared to the assets that never lose their ordinary assets character of income (ie income with respect to a deceased or IRD assets, qualified plan and IRA assets fall into the IRD category).
Participants in qualified plans and IRAs usually appoint their spouses as the designated beneficiary of the remaining plan benefits at the time of the participant’s death. This option is recommend for a number of reasons. First, because of the inherent income tax obligation attached to qualified assets of the plan and the IRA, they are generally not efficient assets with which a refugee credit trust can be finance.
Book a free consultation with our team, who will be pleased to answer your concerns.
Investment Planning.
A sound investment strategy is essential to help your money grow and, ideally, outweigh inflation. However, if you are like many people, you may not have the time or inclination to analyze how different investments or securities may fit into your portfolio.
The steps below can help you guide you through the investment planning process:
Before investing your money, it is important to identify and prioritize your financial goals, assess your risk tolerance and understand your investment options. Our financial advisors can help you rank your options and invest appropriately. Some questions to consider:
- For what needs and dreams are you saving? Retirement, a home, education?
- When will you need the money you plan to invest now?
- What is your risk tolerance? Are you willing to invest in stocks that can rise and fall in value in the short term, but that have the potential to generate higher long-term returns? Alternatively, would you feel better if your money was invest in a more conservative way?
- Do you understand how different investment vehicles work (stocks, bonds, mutual funds, real estate, etc.)? In addition, the potential fiscal effects of each one.
Once you have identified your investment objectives, you can begin to create an investment strategy that best suits your lifestyle.
Book a free consultation with our financial advisors; they will be willing to help you
Financial Situation Analysis for individuals and companies.
The analysis of financial position involves obtaining an understanding of the situation of an organization when reviewing its financial statements. This review involves identifying the following elements for a company’s financial statements over a series of reporting periods.
Trends: Create trend lines for key elements in the financial statements over multiple period, to see how the company is doing. The typical trend lines are for income, gross margin, net earnings, cash, accounts receivable and debt.
Proportion analysis: There are variety of ratios available to discern the relationship between the sizes of various accounts in the financial statements. For example, one can calculate the quick proportion of a company to estimate its ability to pay its immediate liabilities, or its debt to equity ratio to see if it has contracted too many debts. These analyzes are frequently carried out between the income and expenses detailed in the income statement and the assets, liabilities and capital accounts shown in the balance sheet.
The analysis of financial statements is an exceptionally powerful tool for a variety of users of financial statements, each with different objectives when knowing the financial circumstances of the entity.
Methods of analysis of financial statements
There are two key methods to analyze financial statements. The first method is the use of horizontal and vertical analysis.
Horizontal analysis is the comparison of financial information over a series of reporting periods, while vertical analysis is the proportional analysis of a financial statement, where each line of a financial statement is list as a percentage of another item.
Generally, this means that each line of a statement of income is express as a percentage of gross sales, while each line of a balance sheet is express as a percentage of total assets. Therefore, the horizontal analysis is the review of the results of multiple periods, while the vertical analysis is the revision of the proportion of accounts among themselves within a single period.
The second method to analyze financial statements is the use of many types of ratios. Relationships has used to calculate the relative size of one number in relation to another. After calculating a relationship, you can compare it to the same ratio calculated for a previous period, or based on an industry average, to see if the company is functioning according to expectations. In a typical analysis of financial statements, most proportions will be within expectations, while a small number will point to potential problems that will attract the attention of the reviewer.
There are several general categories of indexes, each designed to examine a different aspect of a company’s performance. The general groups of relationships are:
- Liquidity ratios: this is the most important set of reasons, since they measure the capacity of a company to stay in business. Click on the following links for a comprehensive review of each relationship.
- Cash coverage ratio: Shows the amount of cash available to pay interest.
- Current radio: It measures the amount of liquidity available to pay current obligations.
- Fast reason: The same as the current ratio, but does not include the inventory.
- Liquidity Index: Measures the amount of time required to convert assets into cash.
- Activity relationships: These proportions are a strong indicator of the quality of management, as they reveal how well the administration is using the company’s resources.
- Rate of rotation of accounts payable: Measure the speed with which a company pays its suppliers.
- Rate of rotation of accounts payable: Measure the speed with which a company pays its suppliers.
- Fixed assets rotation ratio: It measures the capacity of a company to generate sales from a certain base of fixed assets.
- Inventory rotation index: Measure the amount of inventory needed to support a certain level of sales.
- Ratio of sales to working capital: Shows the amount of working capital required to support a certain amount of sales.
- Ratio of working capital rotation: It measures the capacity of a company to generate sales from a certain base of working capital.
- Leverage relationships: These proportions reveal to what extent a company is relying on debt to finance its operations, and its ability to repay the debt. Click on the following links for a comprehensive review of each relationship.
- Coefficient of indebtedness: It shows the degree to which the administration is willing to finance operations with debt, instead of capital.
- Debt coverage ratio: It reveals a company’s ability to pay its debt obligations.
- Coverage of fixed charges: Shows the capacity of a company to pay its fixed costs.
- Profitability reasons: These proportions measure how well a company performs in generating profits.
- Balance point. It reveals the level of sales in which a company reaches break even.
- Contribution margin ratio. Show the benefits that remain after subtracting the variable costs of sales.
Consult with our financial specialists; they will be pleased to help you.