While the recent stock market has undoubtedly challenged client nerves, it can present attractive financial planning opportunities for certain savvy clients. Consider the following: Converting to a Roth IRA With many IRA account values lower, it may be a great time to consider a Roth IRA conversion. The lower the value of the Traditional IRA
The tax law changes of December 2010 resurrected a provision allowing IRA account owners over the age of 70½ to send distributions from their IRA directly to a public charity tax free. This option remains in place through the end of 2011, and has been an attractive alternative for retirees wishing to avoid taxes upon
As the retirement industry has transitioned from a defined benefit model to a predominantly defined contribution model, individuals’ personal responsibility in managing their retirement income has become increasingly important. In fact, as of the end of 2010, the percentage of assets within private pensions equaled roughly 19% — significantly lower than DC plans (40%) and
Most of your clients are probably aware that the historically low, 15% maximum tax rate on long–term capital gains has been extended for the next two years. However, they may not be aware that taxpayers in the lowest two tax brackets actually benefit by paying no capital gains taxes on the sale of appreciated assets.
Financial advisors with books of business heavily concentrated with retirees face a significant risk of losing assets when the client passes away. One major reason is the failure or inability to make a personal connection with the next generation — the adult children. Often, the children may be working with another financial advisor or institution
If you have business owner clients that you believe could benefit from a Roth IRA conversion, a good first step may be to inquire about net operating losses (NOL). The income generated by a Roth IRA conversion may be offset by the NOL, and the business owner may not incur any additional tax liability. Additionally,
Many effective financial advisors will recognize clients’ milestones, such as birthdays, by sending a personal note or card. Why not consider adding the attainment of age 70½ to this list? Reminding clients of this important milestone through a systematic process or campaign can help engage them on retirement income planning as they will need to
Small business owners, including 17 million sole proprietors, represent the vast majority of firms in the U.S. (Small Businss Admin, May 2009) and provide an opportunity for advisors looking to grow their retirement business. In fact, according to the Small Business Administration (Saving for Retirement: A Look at Small Business Owners, March 2010), 9 million
Although the income restriction for converting Traditional IRA assets to a Roth were lifted in 2010, there are still limits in place with regard to Roth IRA contributions: Roth IRA contribution eligibility (2011) Individuals: Income must be less than $122,000 (full contribution available below $107,000, partial contribution available between $107,000 and $122,000) Joint filers: Income
Considering the many ways that an IRA can be used to help reduce taxable income, tax season is a good time for an IRA checkup — especially since investors have until April 15 to fund contributions for last year. Additionally, with many people holding numerous jobs throughout their career, your clients may have several IRAs