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Encourage clients to make the most of their payroll tax cut

Encourage clients to make the most of their payroll tax cut

Encourage clients to make the most of their payroll tax cut For 2011 only, new tax law imposes a historic reduction in Social Security (FICA) taxes, cutting by two percentage points the employee’s portion of the 6.2% tax. Savings per worker will vary with income, but could be as much as $2,136 for those earning

Connect with the next generation by discussing IRA distributions

Connect with the next generation by discussing IRA distributions

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

Effective estate planning goes beyond taxes

Effective estate planning goes beyond taxes

The increase of the estate tax exemption amount to $5 million per individual will dramatically reduce the number of estates that will have to pay estate taxes. Does this mean that only families with significant wealth need to focus on estate planning? The reality is that proper estate planning extends well beyond minimizing or preparing

Federal debt crisis solution could mean higher taxes

Federal debt crisis solution could mean higher taxes

Government action on the nation’s deficit in the coming months may result in future tax increases, adding to the challenge of long-term planning. As a result, it makes sense for clients to focus on tax strategies now, and take advantage of the clarity in tax law that exists through 2012. The most recent debate on

Should parents consider converting existing custodial accounts to a 529?

Should parents consider converting existing custodial accounts to a 529?

Before 529 programs became prevalent as an attractive vehicle for funding college education, many families utilized traditional custodial accounts (UTMA or UGMA). A primary benefit of these accounts is that, up to certain limits, any income generated from these accounts is not taxed or only taxed at the child’s tax rate instead of the parent’s

Potential expansion for 529 programs?

Potential expansion for 529 programs?

If some of your clients are not among the 10 million 529 plan account holders nationally, it may be a good time to talk to them about changes to the program proposed in Washington, D.C., that could make these plans even more attractive. Clients who are already saving with a 529 plan will also be

Congratulate clients on turning 70½ and gather more IRA assets

Congratulate clients on turning 70½ and gather more IRA assets

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