Be honest. We all make mistakes the first time we do something. Mistakes are how we learn and reach our goals. Most of the time we get a second chance while armed with everything we learned the first time around. We learn from our experience and when we don’t make the same mistake twice, it’s tremendously satisfying!
Of course, there are exceptions to the mistake rule. There are times when you really mess up and don’t get offered a do-over. When it comes to tax planning for retirement, for example, you really don’t want to make a mistake the first time around. Retirement planning is not something you get to do over. You only get to retire once!
I’ve heard sad but true stories about people who’ve worked twenty, thirty, or even forty years, only to fork over significant amounts of their retirement savings to the IRS when they finally tried to retire. And many of these people don’t get to live out their retirement the way they imagined. We at Unified believe it’s more important to retire with dignity, and pass on our legacy with the least amount of taxes, expenses, and headaches as possible. This takes planning!
A client once told me that he does not mind paying taxes – so I asked him, “Would you mind paying mine.” I was joking, of course. Our taxes enable the government to pay for the things we need in common — and I’m happy to pay my fair share. But oddly enough, striving to pay as little tax as possible is what the IRS expects taxpayers to do, so they make it as difficult as possible and rarely leave breadcrumbs to help anyone figure it out. We at Unified are trained to help plan your future with tax reduction playing a huge role in those plans.
You only have one opportunity to retire successfully!
You probably have an accountant who helps do your taxes. I prefer to call them “scorekeepers” because they write down what you tell them about your finances and then have you sign the forms. They are usually not trained to help you plan for the future and that’s a good thing. Scorekeepers provide what WE need in order to plan your future.
A financial advisor, on the other hand, is trained to help plan your future, but some may never look at your tax returns. For the most part, financial advisors are NOT knowledgeable about tax law or certain strategies that could make a big difference to your future.
If I were to review your current plan, one of the first things I’d look for is what I refer to as family tax bracket management. Simply put, this crucial area of tax planning is about considering everyone who benefits from your wealth, optimizing the distribution, spreading your taxes over as many years as possible, and getting you into the lowest possible tax rates. If not set up correctly, you could easily end up paying all the taxes at once the first time you try to retire. Big mistake with no second chance!
A few things to ask your current financial advisor.
If your financial advisor is not looking at your tax returns, you may have a huge, financial blind spot.
Ask your financial planner to explain the difference between ‘inheriting an IRA’ and ‘an inherited IRA’. Or, ask if the SECURE Act will have any ramifications on your retirement plan. There are big opportunities to pay less tax and avoid unnecessary taxes altogether. Everyone deserves to have these options explored, especially since the tax rules have changed so dramatically in the last few years. Missing this opportunity could cost you a lot of money and really put the kibosh on your retirement dreams.
At Unified, we specialize in holistic plans that focus on your big picture. We want the IRS to get what is owed, but not a penny more. If that is okay with you, give us a call to discuss some legal strategies that can financially benefit you and your entire family.
The SECURE Act changed everything
When inheriting an IRA under the old rules, we could comfortably spread out the owed retirement tax over your beneficiary’s lifetime. Now, under the new Secure Act, you only have a 10-year window. To make matters more stressful, you now only have one shot at this. One opportunity to make sure you get the most out of your IRA. You really don’t want to have the IRS snag 40 – 50% of the money you leave behind to your heirs.
If you make the wrong decisions about how to handle your IRA and the legacy you leave behind, your loved ones could end up paying the price. The Secure Act really changed the rules — and it’s more complex now than ever before. This is one mistake you definitely don’t want to make. A sound financial plan, one that incorporates family tax bracket management, can help minimize that tax bill when the day comes.
At Unified, we specialize in holistic plans that focus on your big picture. We want the IRS to get what is owed, but not a penny more. So, if that is okay with you, give us a call to discuss some legal strategies that can financially benefit you and your entire family.
This is one of the most important financial decisions you’ll ever have to make. Give Unified a call today!