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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
A new provision in federal tax law allows surviving spouses to utilize any unused portion of their deceased spouse’s estate tax exemption — up to $5 million — to reduce their taxable estate. But this new rule of portability does not diminish the need for clients to establish a credit shelter, or ”A/B,“ trust. Typically
With interest rates on money market accounts and deposit savings at record lows, and yields on many other conservative fixed-income investments not much higher, investors are looking for new strategies. Qualified dividends from investments held in taxable accounts may be an appealing source of income for investors. These dividends become even more attractive when you
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
Each year, churches, schools, hospitals, and civic groups award scholarships to local students. Helping these organizations establish a 529 account as the funding vehicle can be a great way to build business relationships in your community. Here are some reasons why this can be a better alternative for local non-profit organizations, which will typically hold
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
For clients, equally important to saving money is learning how to withdraw money in retirement at a sustainable rate. This topic is important not only for retirees, but also for pre-retirees. In the attached chart, a hypothetical portfolio illustrates how long assets may last given different withdrawal rate scenarios. Some clients may discover they are
When it comes time to withdraw money in retirement, many investors choose to take money from accounts in the following order: taxable, tax deferred, and tax free. The motivation behind this conventional wisdom is often to preserve tax-deferred assets for as long as possible. However, depending on an individual’s tax situation, the conventional wisdom may