Articles & Insights
By Justin Valadez, Financial Advisor
It’s a Good Time to be Proactive with Advance Directives
Perhaps you’ve had your will drafted and you now think your affairs are in order. However, to be thorough and well-prepared for the future, it’s important to complete other planning documents as well.
Stay ahead of inflation in retirement
Inflation, a sustained increase in the price of goods and services in an economy over a period of time, averages a little over 3 percent annually.1 For the 12 months ending July 2018, U.S. inflation stood at 2.9 percent.2 As the economy grows, inflation tends to tick upward, and retirees and near-retirees may be especially concerned about how this will affect their finances.
By Tom Turner, CFP®
Did you ever wonder how people become wealthy from their own earnings? Do they earn well? Usually yes, but not always. Do they invest well? Sometimes, but many don’t. One common denominator is that they spend far less than they earn. While many of the wealthiest families in the U.S. have much of their wealth tied up in the ownership of a business, they still often spend far less than they earn in net income.* It seems they understand this basic tenet of financial planning:
Whether your child or grandchild is starting college now or in several years, if you are taking advantage of a 529 college savings plan, it’s important to remember which educational expenses qualify for tax-free distribution and which do not.* The IRS gives detailed guidance on qualified expenses in Publication 970. Here are a few important points.
• Tuition and fees are covered in full.
The importance of financial planning doesn’t change at retirement
By Scott Aune, Investment Manager
It's commonly assumed that higher interest rates mean lower stock prices.
By James Christy, Wealth Advisor
Corporate and Individual income tax rates may be coming down as a result of the recently-enacted Tax Reform Act, but the combined Social Security and Medicare (FICA) tax continues to go up.
Donating to charity can be good for your soul — and your tax bill
RMDs, or Required Minimum Distributions, are the minimum amounts that the federal government requires Traditional IRA (or other qualified retirement plan) holders to withdraw starting the year they turn 70 ½. Uncle Sam doesn’t let us defer taxes on our retirement accounts forever. And if RMDs are not taken, significant penalties will apply.
Many people have heard about trusts, but may not know there are several kinds of trusts, and which, if any, of these legal documents may be of value to them for their personal financial planning. It might be time to ask yourself, “Would a trust help me accomplish an important financial or estate planning objective?” Trusts can be established to address a variety of concerns, including protecting and distributing your assets, managing taxes and achieving your charitable goals. The assets in a trust are managed according to your wishes by the trustee you choose.