Last week, one of our clients came close to being a victim of a sophisticated IRS impostor scam. We wanted to summarize the experience so that our clients are aware and can better protect themselves.
In recent years, investors have been fortunate to experience strong returns from equities. With the S&P 500 being up about 70% from this same point five years ago, there’s a lot for investors to be happy about. While being content with a surge in asset values, many investors are facing tough decisions on how to free up liquidity in their taxable brokerage accounts without being hammered by capital gains tax. This brings up the question, how can I free up liquidity while remaining true to my desired asset allocation and limiting capital gains tax?
2018 Tax reform has brought about some of the biggest changes to the tax laws since the 1980’s. With new law, often comes confusion and occasionally misinformation for taxpayers. Many taxpayers believe they will no longer be able to deduct their charitable contributions in 2018 and going forward. The standard deduction has been increased, meaning that many people with modest charitable contributions each year may not see the same benefit. However, strategies exist for the charitably inclined to realize tax benefits in 2018 and going forward.
As a medical practice, law practice or other business grows, business owners may wish to shelter additional income from taxes beyond that of what a 401k plan allows. A pension plan may be just the answer to accomplish this goal. Contrary to the decreasing popularity of traditional pension plans, the number of Cash Balance Pension (CBP) plans have been increasing. As noted in Kravtiz’s 2017 National Cash Balance Research Report, “Since 2001, cash balance plans have had double-digit annual growth almost every year and a fifteen-fold increase over 15 years.” So, what has been making CBP plans so attractive?
Don Duncan was featured in a Kiplinger article on maximizing after-tax wealth by integrating tax strategies. To read the full article, click here.
You wouldn’t depart for an important trip without a clear idea of how to get to your destination — or at least without a GPS or map to show you how to get there. The same logic applies to your journey through life. You’re likely to get lost without a clear financial plan to get where you want to go, now and well into the future.
For our Affordable Family Office clients, tax planning is a year-round activity. 2017 presented us with a unique tax planning opportunity, as we saw tax reform enacted in December. Broadly speaking, this tax reform will both limit deductions and reduce federal tax rates in 2018 & beyond.
Conventional wisdom says that what goes up, must come down. But even if you view market volatility as a normal occurrence, it can be tough to handle when it's your money at stake. Though there's no foolproof way to handle the ups and downs of the stock market, the following common sense tips can help.
There are two major drags on the success of your financial plan: fees and taxes. Fees are necessary to get professional management and advice and usually average about 1.5%. You evaluate the value you get by paying fees at least annually. Taxes are a significantly bigger drag than fees. The lowest capital gains tax rate is 15% or ten times as much as the average advisor fee. If you can minimize the tax drag on your wealth accumulation and retirement drawdown strategies, you can significantly increase cash flow and family wealth. Click on this link to get the details of the 2018 tax law and how it may impact you.