Background Music In The Financial World

Financial Symphony
Saturday, November 11th

What is financial bcakground musice and what can you learn from it?

00:44:04

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

This financial Simpson. Harmonious financial plan. And getting your portfolios. Into so sit back. Well always strike up the the financial simple it's starts now. Hello and welcome into the financial symphony. Thank you so much for tuning into the program today Mark Killian your host here alongside my cohost Richards who drilling. He is an investment advisor at Carolina retirement resources serving you here in the Charlotte metro area. What is office and hunter's solo Carolina and or Rock Hill South Carolina. And if you'd like to reach out to Richard anytime throughout the program you know have to wait for it to be over. Simply call 8064659. And 96 that is 80646. 59. 96 Richard welcome and or how are you mark how are you got a pretty good hook had a good week there been a good week turn the temperature dropped its time for sure loser phoning in. And mass the F finally here in North Carolina are right it's I was eighty just a few days back at sea life so. It's been kind of a crazy November already but. Anywhere we got a great show lined up hopefully you've got time away from the chores to do little show here would listen we've got some good content for you today. So let's dive right in if you like and Richard in and take some questions from around the area. We've got one from Helen in Concord. And she writes in she says there Richard are there really no tax implications to rolling over my 401K. I don't really like the investment options in my 41 Cain but I don't want a roll over and then get hit with a tax bill that I just wasn't expecting. Sure sure that makes sense. You know Helen yes he can roll over 41 K two and hiring you can roll overflowing case to another 41 K if you change jobs. And all these different accounts they have their own set of rules that pertains to two different options that are available. One of the things I encourage people who view his first check with your plan administrator and find out. If they allow what they call an in service distribution. If you're at least 59 and a half years of age. If they do and you're you're at least 59 and a half years of age you can roll over your 401K or your 403 B you were qualified plan. To a self directed ire array that provides more investment options if you can do. Be in service distribution. You know make sure that that roll over is a trustee to trustee transfer. Mean in the funds are made payable to your new custodian not you personally. You know age fifteen hour and a half is the cornerstone of age when it comes these qualified accounts after ticket distribution and your under the age of 59 and a half. Half of you know you're gonna encourage 10% penalty for early withdrawal. When you factor in federal taxes state taxes you know assuming that you are penalized you don't your tax bill could be 4550%. So that's not a good deal but the real cost really comes down to you make that mistake it comes from the lost opportunity for that money to continue growing tax deferred. And this can reduce your nest stadium your later years by tens or even hundreds of thousands of dollars. But there are some exceptions to the rule you know for example penalty free withdrawal to pay back. Taxes if you owe money to the IRS. Or if you become permanently disabled. You can take that would grow without a penalty or if you set up an income train what they call substantially. Equal payments. There have been approved by the IRS so rules for to preserve your tax deferred status. Are your plan balances can be somewhat complex. But opt enough for direct rollover we usually steer you clear of any potential pitfalls so I don't think if you decide to do that that you should be concerned. OK well great question Helen thank you so much for that we certainly appreciate it and if you'd like to talk with Richard more in depth just go ahead and call 80646. 5996. Another question here today from Jerry in Charlotte. And Jerry writes in he says that now that the tax reform has been proposed. Are there any planning steps I should take look can I expect to moving forward. I think a lot of questions concerning the tax proposal includes the changes in the taxes. You know some of the key components of the proposed tax bill as I understand them. Includes increase in the standard deduction at 121000 for single taxpayers and 24000 for married couples filing jointly. The bill also eliminates the personal exemption 4050. Dollars per person and reduces the seven tax brackets 23. 12% 25% and 35%. The bill also repeals the Alternative Minimum Tax will eliminate emotion itemized deductions except your mortgage interest and charitable donations. The bill also includes repealing the estate tax to generation skipping transfer tax. And top tax rate of 25% who passed through entities like partnerships. Sold for partnerships. Finance corporation job that should help. And small businesses would also be able to expense appreciable assets immediately. That should help small business owners who were responsible for Craig and most of the jobs in our country. The bill will also Levy a top tax rate of 20% for major corporations with the goal of incursion. Repatriation and excursion offshore and their businesses. But listen before you begin make any sweeping changes be sure to put this into perspective. You know it's just not law yet it's merely a bill at this stage is still has to go through both chambers of congress before makes it sways the president's desk for signature. In addition there are serious push back on many of the proposed changes therefore I expect that tax reform. If it does happen and it will look probably will be different than what's being proposed initially so the final changes are still unclear. But if the deductions for state and local taxes is eliminated in your state of residence he becomes much more important. So the decisions related to job changes in retirement location might change for you. If tax brackets changed two or three bracket system. It may become more important to manage income deductions to stay within certain bracket. Because there will be a larger punishment for slipping into the next bracket. If the AMT repeal then you don't look closely at the impact of carry over anti Crist. For example those with large credits from incentive stock option exercises you know you might want to fill those positions on the old law while you can still capture their credit rather than wait to sell under the new law. Where our own carry over Chris would likely have disappeared so you want to we know. What a revised tax code will look like. It's tough to plan in advance the key takeaways he's is that it's not time to implement grant them tax strategies now instead. I suggest you give Jurgen has tax reform takes shape. And then be ready to act swiftly especially if congress can buck the odds and push a bill through prior to your hand and as always when it comes to taxes. Make sure you speak Richard tax professional. Great question and great response Gerri thank you so much for sending that in 8064659. 96 and you'd like to discuss that Berger and Richard said it's not really law yet so I'm sure there's going to be some revisions along the way of 80646. 5996. Our final question this week here on the financials symphony for you Richard is from Robert and he is in Fort Mill. I was recently introduced to a hybrid long term care insurance policy. But in searching the Internet these policies are frowned upon and others claim the fees are too high what's your opinion. You know many of my clients have voiced concerns about possible long term care cost. As well as concerns about you know the expense related to issue long term care insurance. Fortunately the insurance industry has developed hybrid product fusion and passing it based approach. And they do show to help you fund long term care these new approaches. Generally combined now a long term care funding and with a life insurance contract or an annuity contract. Personally I really like the life insurance asset base strategy to fund the long term care costs and and you can implement this strategy. With a single from premium percent of premiums four fixed term. Or ongoing premium July I prefer the single up from premium because of the numbers were better over long term. Growth in the contract is linked to the upward movement of the stock market index such as the S&P 500. That subject to a cap typically either nine to 12% maybe more. It's the index is negative your account is credited heroes for your cash value never goes down. Of these contracts are designed to maximize growth and they allow you to access the death benefit prior to death to pay for nursing home care tax free. You know with these policies your body in as little death benefit as required by the IRS. While stuff and as much money intuit. As the IRS allows what's nice is that there are no contribution limits at the amount you contribute. Is tied to a specific death benefit amount. The key is to maintain his little depth benefit us. Possible while being funded at the highest level allowed by higher risk guidelines so doing so. Will ensure that the level of expenses as a percentage of Euro rogue contributions remains as low as possible. You know these contracts may have higher expenses early on. But they they drop as big contracts get older and older so here's what you get you've you've captured tax free qualities. Of raw higher rates providing tax free income and you provide access tear gas and get all your life to pay for nursing home costs. So these contracts protect you from not only legislative risk but there also they also protect you from longevity risk. And wants to want Americans about the life insurance retirement plan you know not banks not Wall Street not a government. In fact the government restricts the advertising of these plans to you. You know there are many attribute to a life insurance retirement plans you have the opportunity for meaningful growth protection for market losses. Tax free income in retirement and income tax free death benefit while providing flexibility as you save a match Fisher funds. Finally these plans have benefits that cover terminal chronic to critical illness you know sort tolerant all inclusive plan. They don't listen and so very passionate about ensuring that your well prepared for retirement. And I'm offering the copper refineries were viewed anyone call the next fifteen minutes and has at least 200000 mark save for retirement. I'll talk about your retirement income needs where do you come gonna come from. How you'll outpace inflation pay as little as possible with taxes and make sure that you don't outlive your money. Now you might say I don't really have to call on the next fifteen minutes and yes that's true he could probably take care of it next week or even next month but here's the deal. I'd be coaching people on retirement plan for a long time. And I've learned that it's really easy to procrastinate or get distracted. So if you don't start the process now there's a very good chance that you're not gonna do it at all. So the first coach and then I'm gonna give you was to encourage you to take that first step right now. For almost everybody that's the hardest pork from there it's not painful process so what you're ready to finally get a plan in place go ahead and give us a call right now. And that number to call is 80646599680646. 59 and 96 to take advantage of this great golfer from Richard culturally and get yourself on the calendar commands for that consultation and discussed so whatever song in my really. You're unique specific financial situation. 8064659. And 96 you're listening to the financial something more to come out. It's remarkable sometimes the emotions and feelings music brings to our daily lives. It was there for graduation. On her wedding day. And sometimes even recipes on our darkest days. So as you look back on life and remember the music strikes work. Take a moment to look forward to your retirement but any time ripe with uncertainty. Over the time of Julie. If you can spot now where you don't think your current plan deserve that kind of celebration when you reach retirement. I think it's time to get a second. Come visit with your financial maestro and Richard Richard Allen seven to Charlotte metro area. Call 806465996806465996. It's time. For another musical connection. We're really blends the worlds of music and finance together. Here's a friend of the show financial advisor and musician mark Lloyd and we're bronze stuff. Background music is something debt is a part of your life whether you realize it or not. And if you watch hit TV show or a movie or actually. Soundtrack in my life market. Exactly and sometimes we just don't realize that year but. It makes such a powerful impact especially when you're talking about movie scores soundtracks I mean what the music does sets us feeling. For what's it raid happened on the screen. And it's powerful so I kind of like when the when the Oscars are given out for the best music. To me that. I like that part of the stuff like screenplay and and effects and a kind of thing you for some people that's their deal to me it's the power of the music and the music and just. Stir up emotions well just think about what would Star Wars in gone with the wind and Psycho remembers oh yeah S ago. And a jaws off hi John I you're sitting at the end of your seat and in the music would stop you like okay. Sauls didn't come back the next you know it's all done by. So just here's some background music do you think costs something really. Ban is getting ready to happen what about what about when you call somebody and you get put on hold. What about waiting on the phone and your hearing music usually been. Now do you talk totally different experience living loses silence. Right it is past the time away getting a lot of times because the wonders of modern technology. It's easy -- to pipe in music now than ever on your phone systems that you're small business or even big businesses from yesterday. I had an appointment for the Dennis. So I was at the dentist office and I'm sitting there listening to the you know radio or listen to music going wasn't radio station but it was actually just you know song after song probably some like I was a pandora something that's a no anger like that you know some online thing some listen in the Fleetwood Mac and not her little bit it Carrie Underwood and I'm getting into the music -- getting my teeth cleaned -- like it just past the animal yeah. Yeah I'm the same way because I love music so much in and it really does she think about if you go for a massage. Or go to a spot they always have like it is saying is if you go to an aquarium they always have like. Peaceful music playing in those places like. It may be India or something I had to get out and be pretty to that was actually quiet. Exactly and you can't have a party music her a no not yet having parties that I go to anyway pretty laid being regulated there wasn't in the party exact already kind of set the tone. And the thing that's most important about background music is that you may not be noticed and despair as mark said but it would be obvious. If it was not there in other words it's easy to take for granted so let's talk today on their financial symphony about. Background music in the financial world. The things are easy for us to take for granted but would be conspicuously. Absent. If they weren't there. Okay do the example example. I don't badly that came in and we were doing something called a retirement plan income plan. We call our financial road map where we're literally plugging in their expenses were factoring in inflation is so that we you know. You know when we retire it doesn't mean we're going you know I it means that were entering another phase of our life. And I can be anywhere from only 2530 plus years right now he's crazy and Evernote. So if we have expenses every month you know 678009000. Dollars a month. And we have the factor in inflation was all right. So you when you sit there saying where's the cash on a come from where's the income gonna come from. To pay for all these expenses that we fat and all the inflated expenses down on the road. Well Social Security is one stream of income. And it's something that you know with Social Security it's a vital part. Of what most folks retirement plans include another one for you in the financial world is life insurance what about mark. Well you probably don't think twice about playing in the premiums in your life insurance policy because. It's critical especially the younger you are especially if you're still raising children you haven't put children through college. Or if you are the breadwinner. And you're leaving a spouse. In the poor house if you die basically sold life insurance is a critical part of a financial plan. Now there's different console life insurance policies out here you really got to be careful Kanye behind you hear a lot of commercials. Ron about. Term insurance you know jackets 32 years old and he combine that eight year term policy. You know for 750000. Dollars for thirty dollars a month. And he has high blood pressure. So is it's is the life insurance whether they're trying to entice you to buy life insurance on line. The other thing about term insurance like a ten year term. Is that in ten years the premiums or goals so high. They you're forced to drop that policy because and it would be cost prohibitive to keep it and you just got to hope that in ten years or fifteen years or twenty years whenever expires. That day you either don't need a life insurance anymore. Or beat your insurer oval enough to buy a new policy at a more reasonable rate than what the old policy was going to go well. And that's what yet that's why you have the really sit down and play and the south. Now some people it's that bottles that you ever a situation grow won't need some like insurance. And sometimes it doesn't make sense to have like insurance regardless. Of whether or not you're supporting children or your supporting the styles the media example. Later on in life when you retire. Well life insurance is wealth creation for passing on to your heirs tax free. It's a way of wealth transfers that transfer the wealth tax free your IRAs your 401 k.s they're all taxable to your kids where your family except for your spouse. And a lot of people call body seeking tax retirement and yeah. Where life insurance is tax free to me that is a vital part of protecting the money to make sure you got all of your bases covered all your I's dotted all your t.s crossed. And our financial life throws all over the country can share with yet how these different you know parts of your retirement plan are critical and how you need to consider each and every one of Ron tellem how to make that half. Then distribute the phone call 806465996. That's 806465996. And got a complementary review of your financial plan. Just call now would it take advantage. 806465996. He can take a composer weeks and months or even years to get together and their name in news. That's because they take the time to find just the right near scoring a million. And while in great financial plan won't take years to put together. You should take this same rank and ancient to make sure it's the perfect claim for you. How did you meet your financial maestro Richard preacher yelling. Serving the Charlotte metro area. Call 80646. 996806465996. Sweet sound that has matched more than ninety guitars and is his career including at least 23 Fender Stratocaster. Twelve Gibson left calls and when he won Gibson as cheese. And our local financial Meister is all around the country yes smashed the fees that hundreds of portfolios to save their client thousands of dollars. And keep listening to the financial symphony. You back here was this on the financial symphony Mark Killian alongside Richard coach a rally investment advisor at Carolina retirement resources. And available to you at 806465996. That is a 106465996. Here in the Charlotte metro area. Reach out to Richard get yourself on the appointing counterfeit like command and talk about your specific financial and retirement situation. 806 or 659. 96 Richard you know the years winding down clearly gray where our idea you know well on our way into November and once you factory and a few days for Thanksgiving in the shopping needs this start to come up and maybe holiday parties and travel and it seems like it never brands and that's next thing you know the year's over with. So let's talk about a few of items that should be on net and end of the year checklist if you will. To consider you know as the years winding down for example of very important that you make sure you take your REM d.'s because there's a hefty penalty if you don't write. That's surely you know these seven you have to magic number. You know do you have qualified counselors and firing your 401K. You're required to begin with strong a certain percentage. Of those tax deferred funds. And obviously have to pay income tax on the amounts that you were girl if you don't. The IRS can assessed a penalty as high as 50% of the amount that should have been taken out for example. If you're required to withdraw 101000 dollars from your higher res you failed to do so. Your penalty could be as high as 5000 dollars. In addition you'll be responsible for paying federal taxes on the 101000 dollars while state taxes. Once you do K dead arm the so it's very important that you accurately track all of your diary accounts at various firms. You're total annual distributions from the diary accounts must be coordinated. And hiring monies that you converted into an income stream so let's say you put hiring money into an annuity and then. Then you turn around him and generate an income stream. Just remember that doesn't those accounts are not subject to trigger a required minimum distributions and there wouldn't be any penalties. One exception to take a near record minimum distributions you're still working. If you show work in and contribute to a 41 K you still will be required to take your mandatory withdrawals from other higher rates that you might have. But you certainly can delay taken from your current employer provided plans such as your 41 okay. Dead timeframe there is until April 1. After year after you retire shook out 41 K you're seventy years of age in social work initial contribute and you don't have. Asked to withdraw minimum required distributions on that account and tool. April 1 after you retire but if you owned more than 5% of that company that's sponsoring the plan. You can't use this to win tactic and most are distributions from your score won't okay. After 87 and a half regardless of whether you continue to work or not so you know to calculate your arm do you simply take a value of your higher rate on December 31. Of the previous share. And you divided by the appropriate to barter mostly my clients usually uniform life expectancy table. There's a single a life expectancy tables for you to make sure that. You communicate with your CPA in and make sure you know right tables if you're calculating those aren't these on your own. And one other thing is you can combine. The balances of all your higher rates. Determine your arm deeper each of them and then take the required distribution from one rather than each one separately so. Make sure you take guarantees don't delay had to make sure stung by December 1 I try to get everything done by December 1 December 5 the latest this where we don't have a pro. We are listening to the financial symphony we're discussing end of the year checklist items. To make sure that you are checking off as the year winds down of course that was our MD's. And certainly you know as we said a hefty penalty lots of things inside there so you wanna make sure if you have questions about how to get this handled. Properly and to reach out to a qualified professional like Richard crew drilling 8064659. 96806465996. Richard what about it's also a good time I think right at. Into the year. At least annually anyway to review those beneficiary designations. That's true you know with the end of year fast approaching them and now's the time. To fine tune your state plan before you get caught up in the chaos of the holiday season. You know and wondering if planning and that many people overlook is the beneficiary designations so you know do you own a life insurance contracts if so. Have you named both primary and secondary beneficiaries on those policies. You know how our retirement accounts you have and higher rate of 41 K a 43 B or even an annuity. Maybe have a payable on death account at the bank or transfer on death account with your advisor if so. Have you named both primary and secondary beneficiaries for these assets you know and what about your vehicle you happy yet registered. With a transfer on death beneficiary. And your real estate isn't held under a transfer on death deed or beneficiary the you know what did you get married did you get divorced this year. Did you have any children or grandchildren who. Have passed away or become disabled were seriously ill if so then it's time to review your beneficiary designations. So it's extremely important to review your beneficiary designations as your life changes whenever you experience a major life change. Were major financial change your beneficiary designation should be reviewed. And if necessary. Updated to ensure that they conform with your planning gold. You know retirement plan and is far from a static process. It's rather the very dynamic you know life changes life events happen in job changes people divorced homes are bought and sold. People and their retirement and on top of all these life events rules and regulations changed so. All of this creates the need to review and refine your retirement plan. There's no better time for a comprehensive plan reviewed in your hand so. You don't remember it all boils down to the fact that all the pieces of your financial postal need to fit together. So I'd like to offer you the opportunity to come in for complete financial review. And I'll offer this review for free to all listeners who have at least 200000 dollars saved for retirement. I'll talk you through all the different puzzle pieces that you need to consider. You know how much your risk are you taking your portfolio how much pain and fees and commissions. What about that your tax implications on your savings. You know is there a way that we couldn't save money in taxes down the road by a plan and proactively today. Do you have an income plan in place to be sure that you learn in danger run out of money if you end up women thirty or more years of retirement. You have a plan to address inflation. In the future decades as the cost of everything continues to rise. You know obviously there's a lot that we need to discuss and we found that most people just haven't planned early enough to address these issues. Again this review is complementary to anyone who has at least 200000 dollars saved for retirement. But the calendar does fill up quickly so go ahead and give us a call right now so that we can be sure to get a spot reserved for years. And that number is 806465996. Again 80646. At 59. 96 to get yourself on the calendar and come in to a Richard's office and hundreds will North Carolina or Rock Hill South Carolina and sit down and have a conversation about. Your specific financial situation talk about some of these in the. The year items on the checklist that you wanna make sure you're headed the right way headed down the right path if you will. Towards retirement 8064659. And 96 as the number to call. You're listening to the financial symphony more on the end of year checklist when Richard and I returned just. He can take it composer weeks and months or even years to get together they're Magnum and that's because eighteen time to find just the right near scores yeah. And while in great financial plan won't take your stuff together. You should take the same prank intention to make sure it's yeah. Someday get ignored I need to my stroke Richard preacher yelling. Serving the Charlotte metro area. Call 806. Foot six 996806465996. It's time for a fireside chats. As we get to know you're local financial symphony maestro. Well it's getting to know you time here on the financial symphony. We're gonna step away from the financial chitchat for a moment and get to know Richard through to really just a little bit better outside the financial realm if you will. In sir Richard. Well obviously I think that I'm a retired chiropractor and that I have an in depth understanding of nutritional therapeutics and so what I've done. These are transitions the holistic philosophy of current for the human body can imagine my client's retirement savings investing in. And when I found. Is that invest in your retirement savings as you still are working in and receive a paycheck is probably the biggest mistake that I see retirees consistently make. So I'm a holistic practitioner or not only on health care side but also on financial sites are you just looking to do a second career in just a change of pace. What prompted you to us switch gears there. Talk humor one point there was Borodin not told or aborted retirement I want to go back and do something but I do wanna go back to health care and and she made a suggestion of becoming a financial advisor earnest like bolt lit up and so that's what I've been doing for the last fifteen years. Let's also seek found extra passion to work on is certainly nothing wrong with that always chasing passions as a good way to help a stay young and feel good as well. Well you're listening to the financial symphonies that was are getting to know you segment with doctor Richard dutrow answered sex. And will be back here on the other side of more financial talk going. Wherever you go there yeah. Solomon. Is thirteen sinking alone continuously nibbling away your hard work. Yeah yeah. A don't be afraid of hidden fees in your portfolio. Coming in to meet with your financial maestro for review of all the fees in your current plan. Let's see if we can eliminate those pesky. Yeah yeah yeah. And I come visit with your financial maestro and Richard Richard Mellon. Serving the Charlotte metro area. Call 806. Or 65996. 806465996. Did you house produce more milk when listening to relaxing music. That's according to a study conducted in England in 2001. And reported by the CDC yeah. Did you also know that people achieve a higher level of financial satisfaction while listening to the financial symphony was never recorded by the BP. Primarily because we made it up like he's listening anyway. Well we're cruising down the homestretch here today on the financial symphony. Thank you so much for staying tuned into the program Mark Killian alongside Richard puts are really investment advisor at Carolina retirement resources here in the Charlotte metro area. You'd like to reach out to Richard engage yourself on the appointment calendar itself so easy do. 806465996. Digit number to call that is 800. 6465996. Call that number leave your information the team we'll get right back with you engaging on the calendar for a time that's convenient for you. To meet with Richard and his office either in hunter's bill North Carolina or Rock Hill South Carolina 800. 6461599. B six Richard back to the end of the year checklist couple more here that I'd like to run down if you cannot. Give us some ideas and some thoughts on these as we talked about you know as the years winding down to good idea to review those beneficiary. Designations make sure that you're taking news RMD's getting your questions answered around that what about considering a Roth conversion. And that's a good idea it depends of course but one common theme I see out there and it's what are called misconception. This is that many of you think you have until April 15 to do Roth conversion from the prior year. But that's not true as a Roth conversion rules are not the same as Iran's fiery contribution rules. You know to have by 2017. Roth conversion. The funds must be at your higher rate or employer plan by December 31 2007 team. Now the funds don't have to be in the Roth account by that date. But they must be out of the distribute an account and this will produce a 1099 are for 2017. And that income due. To the conversion will be included on your 2017 tax return. You know another misconception is that employer plan funds must go to and higher grades. Before being converted tour brought higher rate. You know that she used to be the case but it's no longer true your plan phones can go directly from your plan. To your Roth IRA this is a conversion and any tax or mouse move to a rock fiery will be taxable. For the year of the conversion. You know I'm a real big fan of Roth conversions whenever possible the reason why 2017 is looking a lot more favorable for Roth conversions has to do with the results of the recent presidential election. The owner early 2016 many expected a democratic presidential victory. And propose to raise taxes would have made that tax costs of Roth conversions even higher. But with the Republican victory the odds are for a better that the income countries will fall 12017. And if you anticipate that your tax bracket is likely to fall under tax reform. In 2017. Then converted none existent diary to a Roth who let you lock in those lower rates. And thanks to a special provision. Of Russ conversions you'll be protected even if tax reform doesn't happen as quickly as lawmakers who would you like. And there's a re characterization option. So there's no reason to wait before doing a Roth conversion of the benefits of converted to a Roth hire ray outweigh the tax cost and your own personal situation. Then moving quickly to do your Roth conversion of 2070. Could help you take maximum advantage of the power draw fire. Well he listened to the financial symphony here and we're talking about into the year checklist items. Obviously a lot of good information there about considering a Roth conversion obviously you have questions really like to talk about it more specifically. As Richardson everyone situations different you have to weigh out there's options. 806465996. You know Richard is we get into the season that we're and the holiday season. People start thinking about charitable contributions are you should consider the tax deductibility of charitable contributions as well shouldn't absolutely. You know you can make your gifts to charity was catcher appreciated securities if you donate appreciated securities like stocks. You can take a deduction for the current fair market value. And eliminate capital gains on the appreciation. If you decide to make gifts and cash you can simply ran track. Or you can put the amount on your credit card in December and paid a bill when it runs in 2018. That's what I like to do. And deduct donations for 2017. Either way you must submit a letter of acknowledgment from the charity shown the data they get the amount and whether you receive any tangible benefit in exchange. You know structures thank you can't. You know donations for used cars may be conducted at fair market value only if the charity uses the vehicle in its tax exempt work. It to charity sells it. Your contribution is limited to the actual proceeds of that sale. Or you can make a gift of real estate and you'll receive charitable deduction for the current value as well as eliminate capital gains tax. He also saved the cost of the hassles and manage and maintain and have property. And you know many view that are seven and a half years of age or older you know you must take your required minimum distributions from your higher rate. Now you don't need the money he can make what is known is today qualified charitable distribution and you're allowed to give up to a 100000 dollars to charity. Directly from your IRA without counting the distribution taxable income. You don't normally when you take money out of an irate it's a taxable mess the withdrawal last year taxable income and inflation are just gross income. Then if you give the same amount to charity the charitable gift reduces your taxable income by the amount of the gift. But it does not reduce your AIG but qualified charitable distribution is not taxable income in the first place. So it has no effect on your adjusted gross income. And all of our charitable distributions satisfies all or horror or your required minimum distribution. So this makes them particularly useful for retirees. Who were still working and have large pensions or in general find themselves in a higher tax bracket. There is one caviar and and that that is is that it qualified term goal distribution must come from a traditional higher rate or an inherited artery. Offered charitable distributions cannot be made from employers sponsor retirement plans. You know like the simple our race or set fire ray you know so these accounts must be first rolled. In to a higher rates to make them qualify this is a great opportunity to take a look at Europe's situation if you're making donations on an annual basis. Here church to food bank whatever your desires are in terms of helping. Then rather than writing a check out of your after tax dollars you can simply take your arm V and transfer that to maturities of your choice. When you're listening to the financial symphony. We're wrapping up the show today talking about items on the ended year checklist that we've discovered here on the section consider that Roth conversion certainly consider tax deductible charitable contributions. And finally Richard if you can explain this a little bit to us harvest investment losses what is that a wise it on the checklist. Sometimes an investment that has lost value may actually be a good thing well at least not all that okay. We're selling stocks and bonds mutual funds and other investments have lost value mark. You can reduce your taxes on realized capital gains from you're winning and investments. This is call tax loss harvest and and I realize and our harvest and the loss. You're able officer taxes on both games from other investments and from your income. Now it's generally preferable. To use net losses to offset short term gains or ordinary income. And not offset long term gains were short term losses. This is because both short term gains and ordinary income are taxed at ordinary income tax rates. Rather than the lower capital gains rate for long term game. And you can use short term capital losses to offset long term capital gains. But there are limits OK so losses on your investments are first he used to offset capital gains of the same type. So short term losses are first deducted against short term gains and long term losses are deducted against long term games. You know harvests and losses can be an effective year end tax cut and strategy especially with long term capital gains rates. For some taxpayers as high as 20% plus to three point 8% net investment income surtax. You know for investments held in taxable accounts especially. This can be a way to take advantage of positions that have experienced a loss and allow the tax havens to offset gains elsewhere. Now whether and to what extent use this strategy is should be governed by Europe overall financial planning and investment goals. He'll sell holdings that fit your overall long term investment plan to rely short term loss. May not be the best move that said if you could work their strategy and hear typical portfolio rebalancing and they can be an excellent way to manage your investments in the. Tax efficient manner. The parts are rarely static you know taking the time to plan before your friend could help you avoid costly mistakes. Help protect and give you more control of your legacy. You know most individuals put a lot of emphasis on the return of their investments. But often they collector return. And that comes from planned inappropriately. So if you're not sure you're on the right path and how he should be managing your retirement statements commit column next fifteen minutes. And our custom designed for you and easy to understand financial review. That will indicate if you're in need of a full blown financial plan there's no obligation or cost this initial reviewed all caller we have at least 200000 dollars saved for retirement. So if you meet those qualifications here's what you can expect. First of running a Morningstar analysis and comparison report to help you untangle what its costs and you work with your current planner advisor. As well as how your portfolio may perform commercial beer market downturn I'll show you how to protect your investments and keep more of your money in your counts. Next top performer tax analysis to show you how you could possibly were future taxes and increase your cash flow. He finally will create a customized lifetime plan usually proven strategies and techniques that could Turbo charger retirement income in short. We'll take the guesswork out of financial planner for you so for all the callers calling next fifteen minutes he comprehensive financial review being offered no obligation and. Number to call is 806465996. That is 8064659. And 96. Take advantage of this opportunity with Richard crouse really get yourself on the calendar command for a consultation no cost no obligation. And discussing your specific financial situation may be some of these ideas here on the end of the year checklist. 80646. At 159. 96 again as the number to call talk with Richard which are really investment advisor at Carolina retirement resources serving us here in Charlotte metro area. Its officers and hunter's bill North Carolina. And Iraq kill South Carolina. And with that Richard thank you so much turning on the program while we appreciate doing the show with you always learn something new and thank you marker Bershard wrong and you have a great day a great week and we will do it all again next time right here on WB TE radio you're listening to the financial something we'll see you next time. Information is for administrative purposes only. And does not constitute tax investment or legal advice. Always consult a qualified investment legal or tax professional before taking any action investment advisory services offered through Brookstone capital management LL CDC him. A registered investment advisor. BCM and Carolina retirement resources are independent of each out.
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