Tag: park city



Are your taxes in retirement going to be a problem?

Are your taxes in retirement going to be a problem? Have you saved for your retirement using 401(K)s and Traditional IRAs?

Not all that money is yours! Some of it belongs to the IRS. Maybe as much as twenty-five percent (25%) or more!

Will you be comfortable in retirement on just seventy-five percent (75%) of the funds in your 401(K)s & IRAs? Will you be paying taxes on your Social Security benefits?

Up to eighty-five percent (85%) of your Social Security benefit can be subject to Federal Income Taxes. Not planning for taxes in retirement is dangerous to your retirement health.

Don’t wait until you are retired to address the TAX TIME BOMB! IT WILL BE TOO LATE!

We Can Help. Call us TODAY at (435) 655-0508!



Do you own your own business and pay too much in taxes?

Do you own your own business and pay too much in taxes?

Every time we turn around there is another tax: Federal and State Income Tax, FICA Tax, Sales Tax, and on and on.

If you own your own business and your business generates at least eighty thousand dollars ($80,000) each year in taxable income and your business pays more than twenty thousand dollars a year ($20,000/year) in taxes you must read our White Paper: “Tax Planning Mistakes Small Business Owners Make”

In this FREE RESOURCE you will discover how to rent your house to your business, deduct the business expense, and not pay any taxes on the income you receive.

You will learn IRS approved techniques to deduct home office expenses so that you don’t have to worry about being audited when claiming a home office even if you have another office elsewhere.

We Can Help. Call us TODAY at (435) 655-0508!



The Impact of Inflation in Retirement

Do you Know the Silent Killer for Retirees? The medical profession refers to high blood pressure as the silent killer.

In investing, the silent killer is INFLATION. The minimum return on any retirement investment must be at least equal to inflation.

Here’s why. Suppose your retirement goal is to withdraw $90,000 per year from your IRA. To maintain your purchasing power you must adjust your withdrawal amount for the inflation factor. That means that to get $90,000 per year at an inflation rate of 3%, your withdrawal amount in year 15 would be $140,217.

Are you on track to manage inflation during your retirement? To learn more, Get our white paper “How to plan for inflation in retirement”.  (435) 655-0508



Is Tax Planning Missing In Your Retirement Planning?

Is Tax Planning missing in your Retirement Planning?

Too many retirees believe that they don’t have to do any planning in retirement. They spent years saving for their retirement and now they think they can coast. WRONG!

There are hidden tax traps waiting for the unsuspecting. For instance, If you want $75,000 per year in retirement, is that before or after taxes? If it’s after taxes, that could mean withdrawing $90,000 per year before tax.

Will your portfolio last for 35 years if you withdraw $90,000 each year adjusted for inflation? After 15 years, to keep your purchasing power of $90,000 at 3% inflation you would need to withdraw $140,217!

Contact me to get a 50% discount for my book “The Ticking Tax Time Bomb” How to Recognize & Manage Tax Traps in Retirement.   (435) 655-0508



Don’t Let Timing Ruin Your Retirement

Did you know that one of the greatest risks to your retirement portfolio can happen in the first years you retire?

The timing of when you begin withdrawing money from your investments can dramatically impact your long-term wealth. It’s called sequence-of-return risk, and the danger is very real.

When you make regular withdrawals from investments while market returns are down, your portfolio shrinks faster because the investments are worth less. If that happens early in retirement, it’s more difficult to rebuild your assets and get back on track – you could even deplete your portfolio before the good returns show up.

But there are ways to protect yourself from negative returns in the early years of your retirement, including reducing risk in your portfolio and modifying spending in down market years.

Find out more in my White Paper on How to Achieve a Successful Retirement Even if Your Portfolio Suffers Negative Returns in the early Years of Your Retirement, by calling (435) 655-0508 or visiting my website www.savinginvestors.com.



Is a Tax Free Retirement Possible?

A question we’re commonly asked is, “Is it possible to drastically reduce taxes in retirement, or even eliminate them?

It’s possible, but you must start planning before you retire.Many people don’t realize that Traditional IRAs and 401(K)s are fully taxed upon withdrawal, so the key is to diversify your retirement income.

You can do that by saving and investing in tax-advantaged and non-taxable accounts, such as a Roth IRA, while you’re still working.

Once you’re retired, it’s all about monitoring your adjusted gross income to control your tax bracket. You can limit the amount of taxable income you need to withdraw by pulling income from your tax-free accounts.

Also, by withdrawing from non-taxable accounts, instead of selling investments that trigger taxable income, you reduce the amount of your Social Security benefits subject to income tax.

To find out how you can reduce your taxes in your retirement years, call (435) 655-0508 or visit my website www.savinginvestors.com.



Tax Planning: How to Prepare for Taxes at the End of the Year

Here are some tips to help you lessen your tax burden at the end of the year:

First, Be aware of any tax changes that will take place in the new year so you can use them to your advantage. Review your cost basis so you can make informed decisions about the sale of your assets. Realign your portfolio for the best overall after-tax return. Accelerate losses to offset gains. You can take up to a loss of $3,000 in excess of gains each year, but avoid wash sale rules. Or you may want to consider a delay in using loss carry-over if your bracket will be higher the next year. Be aware of additional taxable income available yet stay within your current tax bracket. Consider either accelerating or delaying deductions to arrive at the best tax strategy for you. Consider paying state estimated and real estate tax installments early, if it works to your advantage.

Tax and financial planning involve complex calculations, so seek a professional to maximize your overall tax strategies.



What is the Best Strategy to Withdraw Funds in Retirement?

What is the best strategy to withdraw funds in retirement?

Conventional wisdom would suggest withdrawing funds from accounts in the following order:

First, from taxable accounts. Second, from tax deferred accounts. Third, from tax free accounts. Fourth, from non-qualified accounts.

Is Conventional Wisdom always correct? Not all the time! Why?

Maximizing Social Security benefits is always the goal because it’s often the only source of income with a cost of living adjustment, thus increasing the benefit each year.

Increased benefits often translate to increased benefits for a surviving spouse.

Achieving lower taxes while postponing Social Security benefits could make withdrawing funds from tax free accounts first, not third, the best decision!

We Can Help. Call us TODAY at (435) 655-0508!



What are Required Minimum Distributions and How are They Determined?

What are required minimum distributions and how are they determined?

Beginning at age 70.5, you must begin to withdraw money from your retirement accounts every year. The amount is determined based on your life expectancy as contained in the IRS tables. Required minimum distributions are computed by dividing the account balance at year-end by the life expectancy factor.

Assuming a husband and wife are about the same age, then this factor at age 70 is 26.4 years. Alternatively, you can multiply your account balance by 3.65%, which is 100 divided by 26.4. The first required minimum distribution must be withdrawn by April 1st of the year following the year that you turned 70 and a half.

Subsequent required minimum distributions must be withdrawn by December 31st each year. Every year, your required minimum distribution will increase over your lifetime.

If you want an estimate of your required minimum distributions each year, let us do the math for you and help you develop a winning strategy.



How Will Divorce Affect Your Finances?

How Will Divorce Affect Your Finances?

Divorce has a psychological, emotional and financial impact on an entire family. The financial impact can be considerable as income changes and costs for support rise. Be prepared. Statistics show that only 42% of custodial single parents who are awarded child support in 2011, for instance, received all of the child support money that was due.

Nine states are community property states, which means assets acquired during the marriage by either spouse will generally be divided equally. The remaining states are based on equitable distribution, which does not necessarily mean an equal distribution. The court will consider many tangible and intangibles in coming to a decision on how to divide your assets. People facing divorce sometimes don’t get all they deserve because they’re anxious to get it over with.

But don’t rush through this. Don’t willingly give up what you have a right to, especially if you have custody of children since your financial situation impacts them as well. If you and your spouse can’t come to an amicable agreement about the terms of your divorce, you will each most likely consult an attorney. Be sure to also consult a financial advisor to seek investment planning advice prior to a divorce settlement.

You’ll want to assess the real value of your assets and take tax consequences into consideration. For help with this difficult situation, give us a call today.