Jon Sluis, CPA, joins us today to help us catch up on 2023 tax law changes as well as look out for future adjustments we need to be aware of. As you know, proper tax planning requires being aware of not only what’s new, but what has changed from the previous year. And you guessed it … there are lots of changes and updates for 2023 you need to know about. New retirement provisions that recently took effect will make a difference for your long-term planning. We will also discuss the impact of staying up-to-date on beneficiary designations to allow for maximum flexibility in the settlement of your retirement accounts. As we’ve seen with our own clients’ accounts, custodians of IRAs and other retirement accounts who are not aware of the current provisions within the law may negatively affect you and your loved ones.
Your bottom line can be impacted by these tactics, so tune in and take control!
The morning haze has made for some beautiful sunrises here in Northern Michigan recently. However, a similar type of “haze” continues to envelop our current economic situation. Are we in for a soft landing? What about interest rates, recession and the business cycle? Housing prices are another big unknown, with many professionals weighing in on the current housing market. On today’s show, we’ll continue the conversation about the current economy, even looking at whether global temperatures affect economic growth. Heidi will discuss the younger person’s use of summer earnings to start a Roth IRA, and how that might benefit your child or grandchild, and help them learn about the long-term benefits of starting a saving mindset. Last, Deann discusses a recent article in The Wall Street Journal about Northern Michigan and the stats surrounding the economy as well. Tune in and take control!
In a May 2023 Kiplinger article, Chris Abeyta, in discussing the transition from asset growth to income and protection, warns us of the “Retirement Hazard Zone” – the four to five years right after the pivotal age of 59½ that can greatly impact the rest of your retirement. In essence, Abeyta cautions readers to take action to protect their nest egg from significant losses while still growing it. Part of this equation deals with the reality that, for some, they need to take income from their portfolio. For others, it’s about the need for greater preservation as their mindsets have changed. And for a few, it’s about strategic allocation and utilizing diversification to its maximum potential while limiting downside risk in a volatile market environment.
Regardless of your situation, on today’s show we will discuss the “why” and “how” of the three phases of your retirement journey. Next, Heidi will discuss the IRS RMD (required minimum distribution) waiver for non-spouse beneficiary IRA accounts, as well as a 60-day rollover relief option for traditional IRA RMDs taken inadvertently because of the newly incepted age change to 73. You were probably thinking that no changes were in store after all the adjustments that were made recently, but these are to cover for individuals needing to catch up with the new rules. Last, Nathan, who is filling in for Deann, will give us the best of stats to help us along on the journey and pinpoint more economic and retirement reality.
Tune in and take control!
The beautiful summer weather seems to have everyone in a trance of warmth, ice cream, sandy beaches and the great outdoors (including the bugs)! Today, we’ll talk about the power of being a contrarian in a world that seems more confusing by the day. Included in this will be historical examples of those with very big voices who have been very wrong about the future. One example is the current residential housing market, which has stumped so many to continue strong despite ever-rising interest rates. Another is the continuing Fed attempts to rein in the economy with ever-widening interest rates, only hurting itself and our very own dollar in the process, and the future statistics on what that could look like. Next, Heidi will discuss mid-year frequently asked questions about Social Security planning for retirement. This includes what we might possibly see on adjustments to Social Security to control the cost. All of this, including great stats from Deann to bolster and add to the conversation.
Tune in and take control!
In a recent article in Kiplinger, Chris Abeyta explains how your retirement journey breaks down into three phases. Phase 2: “The Retirement Hazard Zone,” are the four to five years right after turning the pivotal age of 59-1⁄2. According to Abeyta, this is the time to take action to protect your nest egg from significant losses while still growing it. Part of the equation deals with the reality that for some, they need to take income from their portfolio. For others, it’s about the need for greater preservation as their mindsets have changed. For a few, it’s about strategic allocation and utilizing diversification to its maximum potential while limiting downside risk in a volatile market environment. Regardless of where you fall, we will discuss the why and how of the three phases of your retirement journey. Next, Heidi will cover a very timely article from Andy Ives of the Ed Slott team about what and how to deal with a retirement account when an owner dies. As a beneficiary, we’ll discuss the steps you will need to remember to take as you deal with what can be a very difficult time. I believe this will be an article of lasting importance and we will be posting this on our website for permanent reference. Last, Deann will cover the best of stats to help us along on the journey.
Tune in and take control!
How many times have you heard the phrase, “Talk is cheap”? We even alluded to this on last week’s show regarding the market’s response to Fed Chair Jeremy Powell’s proclamation that rates would begin to rise at the Fed’s July meeting on the 25th and 26th. On this week’s show, we’ll continue to discuss the rate environment and its impact on the economy. Why? Because the implications are very important and dynamically changing. What camp are we in? Currently, we agree with Simon White of Bloomberg who recently had this to say: “Rising global rate expectations are likely to be disappointed as slowing inflation significantly tightens real rates through the rest of the year, allowing central banks to deliver fewer rate hikes than predicted.” Currently, the stock and bond markets appear to be signaling this very outcome, and we think this continues to be a great subject to stay on top of with you, our listening audience! Heidi will also discuss the difference between Treasury Bills and Bonds and the two critical differences between them. And Deann will bring those stats to bolster the conversation along with your questions!
Tune in and take control.
So, you’d like to retire? Before taking the plunge, there’s a lot you need to think about. What are the common and not so common issues and financial hurdles for pre-retirees and retirees alike? What are the steps to consider or adjustments you have to make to move the needle in your direction in the face of a volatile economic environment? We’ll discuss these issues and more as we review several articles giving insight from the financial standpoint as well as practical input from our many years spent with clients and pondering these very same issues.
Next, Heidi will review and discuss this month’s Social Security Advisor article titled, “Harsh Reality: Americans Do Not Understand Social Security.” Many stats and results will follow pointing up the importance of understanding the impacts, inflation and the financial benefits of learning more about you and your loved ones’ options for taking Social Security benefits. Last, Deann will take us into the stats side to continue the conversation and shed more light on our knowledge base. Tune in and take control!
Have you ever felt the need to know more? Like you’re missing out on crucial news and information … especially for your financial well-being? While this can sound like a tall order, today’s show will be all about giving you the current, prevailing economic conditions. While we can only guess where the resultant markets might lead, we can glean more information to help in our decision making. We’ll discuss some of the current stats and information that you probably haven’t heard or perhaps even been able to process.
Heidi will also review recent article in which workers are claiming they’ll need more than $1 million to retire comfortably. Workers are scrambling to make that figure a reality, and we will discuss how you might achieve that goal. And Deann will have plenty of stats to bolster this and add to the storyline. Tune in and take control!
Whether it’s by phone, email or text message, it seems like the number of scam artists out there trying to get your money or personal information is at epidemic proportions. And thinking that “this only happens to the older set” could not be further from the truth … no one is immune. Another issue we’ve heard from our connections in the banking sector is that those taken in by these scams are utterly embarrassed and, as such, are unwilling to discuss this issue and allow the education one gets from others with similar life experiences.
Today, we’ll discuss the scam explosion that’s occurring and how to protect yourself. We’re on a mission to inform and expose this terrible crime foisted on so many. And the confusion and complexity of today’s financial world doesn’t help matters either. We’ll discuss not only the fact set surrounding how today’s very sophisticated scams occur, but also the psychological attitudes that surround the experience of those while they are in these situations to shed as much light as possible to help you and your family avoid this and understand when it may be occurring. The numbers are staggering as to the dollars involved. So let’s go there, and please call in with your stories! Tune in and take control!
There has been a lot of press lately about the future of AI, or Artificial Intelligence. Understandably, most are concerned about its impact on our lives – historically, socially and economically. Regarding investments, how do we navigate the companies involved in this advancing technology? What are some of the possible dangers that will be part of our new world. Some have likened this new technological revolution to the impact the railroads had on our nation about 150 years ago. The question always becomes, “Should I be worried?” and “What are the opportunities?” While we can never know all the dangers associated, on today’s show we’ll discuss what AI is, how it works and what it might mean to us. We’ll also discuss the companies involved that we are aware of and the opportunity they have in this new environment. Next (and you heard it here first!) Nathan will explain why the Roth IRA may not always be a good idea. Given that we are always talking up Roth accounts, you might be surprised at this! Lastly, Deann provide lots of stats on AI that will help us navigate the details! As always, tune in and take control!
You may have heard the song “If” by the ’70s group Bread. The beginning lyrics are: “If a picture paints a thousand words, then why can’t I paint you? The words will never show the you I’ve come to know.” Unfortunately, we can’t even come close to turning a traditional IRA into a ballad, but we can perhaps help you to soar a bit higher than you thought possible by using the most highly taxed account you own for a higher purpose: charitable giving. In essence, how could you leverage a highly taxable asset to do the good you can help others accomplish more readily than you can on your own? On today’s show, we’ll discuss an article Dennis wrote for Ed Slott’s newsletter called “Why Leaving an IRA to Charity Makes Sense.” We’ll review all the benefits and options for gifting some or all your IRA to charity. Then Heidi will follow with Vanguard’s outlook for financial markets and their perspective on everything from inflation to markets here and around the world. Deann, of course, will include stats to keep the conversation engaging. Please remember … your questions are welcome! Tune in and take control!
On today’s show, we’re diving into all things Roth IRA. Heidi will discuss the benefits of a Roth conversion, including a benefit most of us haven’t considered, a conversion as a gift to your beneficiaries. We will compare the possible outcome for traditional IRA beneficiary versus the possible outcome for Roth IRA beneficiary, so you can determine what’s best for you and your loved ones. Heidi will also cover some intriguing questions and helpful answers regarding inherited Roth IRA RMDs. This is timely and helpful information for those who might inherit a Roth IRA someday.
We welcome Nathan Prout to the show! He will be sharing the basics about annuities and how they can fit into an IRA. You’ll find the information helpful in determining whether an annuity is right for you. And Deann will offer us many pertinent stats related to the current economy and you! So, tune in and take control!
While we often discuss the financial realities of retirement and generating income or growth in an efficient manner while being aware of tax and other risks, we very rarely discuss the emotional aspects of retiring which, of course, can be huge. Are you ready to leave your career for something new and unchartered? Have you allowed yourself the time and preparation to prepare for the non-financial aspects of retirement? We have lots of great questions and areas to shed light on your situation, whether you are thinking of retiring or already retired.
Also, Heidi will cover the details of HSA plans for pre- and post-retirees who have access to this significant tax-advantaged account. And Deann will offer us many pertinent stats related to the current economy and you! Tune in and take control!
You’ve heard of settling an estate from the attorney’s perspective. Today, we’ll discuss settling an estate from a financial advisor’s perspective. Settling an estate involves much more than merely settling assets. Generally, it also includes filing the last will and testament, paying bills and taxes, filing the deceased’s final tax returns, distributing property and filing the final account. We will discuss what typically is the biggest dollar item in the estate and the mechanics involved in handling it. Our goal is to help you save time, money (potentially thousands of dollars in taxes) and, of course, stress. Given the complexity of today’s accounts, their tax benefits as well as other cost of disbursal, this is information you will want to know! Also, Heidi will share updates on Social Security, and Deann will provide the stats related to estates to help us along!
Tune in and take control!
Market gyrations are always unnerving, and today’s markets are no exception. Today, we’re going to discuss Fed Chairman Jay Powell’s recent quotes from his Jackson Hole, Wyoming speech and why we think the stock market responded as it did. Though the reality of the world in which we live is ever-changing, we can, at the same time, discuss what you can do about it, as well as consider why these are especially important times to make changes. We’re all trying to save money for a future goal or set of goals. Helping you (and us) remember or think more clearly about what that goal is will be an important part of our program this week.
As we enter school season, Heidi will be comparing 529 plans vs. Roth IRAs as a tool for funding our children’s education costs, and how these tools can work for both you and for them. Deann will have the stats of the week, too, to add to the mix!
Tune in and take control!
While we won’t speculate on whether the U.S. economy is actually in a recession, we think it’s important to discuss the practicality of retirement (or staying retired) given a relatively tough investing environment, rising interest rates, a falling stock market, and worldwide angst about Russia, China and other countries. We’ll review some great articles as well as analyze our own day-to-day experiences.
Then, Heidi will continue our dialogue on the details of the spousal Social Security benefit. And finally, Deann will have some interesting, eye-popping stats on the EV boom as an investment!
We are passionate about discussing matters that impact you, so tune in and take control!
Today is about changes! Wow, what a difference a week makes … or has it only been a day?
Today, we’ll talk about many topics, including individuals putting their spending on personal credit cards to dent inflation; the upcoming near historic Social Security benefit increase; as well as the beloved Accuracy-Related Penalties possibly imposed on IRA withdrawals.
We’ll also discuss a subject most near and dear to us – Roth conversions for all ages. We all know the amount of ink that’s been spilled about whether a Roth conversion is advantageous. One of the biggest issues (of course) is our age. Perhaps one might argue, if I’m 70 or older, could this still make sense? We’ll discuss this in depth as Ed Slott has dived into this pool, and we’re going to jump in too! After all, the water’s still warm, right? We’ll have some strong arguments as to why, especially today, you might want to consider this strategy. AND we’ll also talk about misconceptions that still rage around Roth conversions.
Tune in, and we’ll try to turn up the temperature in your financial world of information!
Welcome to our ever-changing, ever-evolving financial universe.
A famous radio host used to describe things as being, “… on the leading edge of societal evolution.” Today, we’ll discuss “quantum computing,” a recent megatrend that, according to Haim Israel, Global Strategist and Managing Director of Research at Bank of America, “Could be bigger than the discovery of fire.” We’ll explain how the impact of high tech and data management on our world in the next decade could be truly amazing.
Next, Heidi will discuss “catch-up contributions” for those who wish to max out their tax qualified plans for the year. The amounts you’re able to put aside may surprise you. And for those over 50 years old, this might prove to be very helpful.
And finally, Deann will discuss the stats of the day, many of which should help to enlighten us all on current trends!
Tune in and take control!
While the markets have been quite volatile recently, for today’s show, we thought it might be helpful to see what these numbers can mean for you in the future. Of course, we can’t predict the future, but we know that past performance is a good indicator of future behavior. In fact, we can delve all the way back to 1835 to see how markets from previous generations have responded to show the depth and breadth of what we might experience in today’s economic climate. Even if today’s stock market and asset market respond differently than before, the symmetry of history may still be helpful for the perspective we need.
Also, Heidi will uncover the secrets related to the benefits of paying back COVID-19-related withdrawals from IRAs and retirement accounts.
Sometimes, learning can be most instructional when we’re ready, as in peering into the glass when uncertainty reigns. We’ll do our best to unmask this mystery just for you! Tune in and take control!
While life insurance is certainly not a sexy or thrilling, edge-of-your-seat subject, it can serve as a very practical tool in today’s economic climate. In fact, some advisors consider it a bit “edgy.” Primarily, life insurance is a way to protect your loved ones and help leverage their financial woes in the event of your untimely death. However, the impact life insurance can have while you’re alive can be surprising, too, given its tax advantages. This can include business-related transactions to transfer business values or cover key persons within the business.
Tax advantages can amount to significant dollars during your lifetime, like tax-free withdrawals for income and other emergencies, not to mention a fully tax-free death benefit. The number of times clients have been dumbfounded at the thought that Dad’s life insurance was/is tax-free is almost uncountable. Many times, surprise in a most positive way has been an enjoyable conversation to have.
This week, Deann will discuss lots of stats related to this, and Nathan and Heidi will be joining in on the conversation too! Tune in and take control!
A couple weeks ago, I (Dennis) dedicated a significant amount of time to finishing my continuing education requirements in order to earn the Certified Private Wealth Advisor designation. In the middle of a very intense 24-hour session, a PhD accountant from the Booth School of Business in Chicago gave a surprising, edge-of-your-seat piece about tax-advantaged business sales and the reported tax benefits as shown by the required public disclosure, including how individual business owners can do the very same for themselves and those that follow.
The information from this class (about 75 pages in all) has already been sent on to today’s guest, Jon Sluis, CPA. And when Jon is in the house, you know there’ll be a lot of great information … as well as a few surprises! We’ll discuss all the exciting, gory details, and you may well be pleasantly surprised at the sheer size of the tax savings should you decide to employ these savvy options. We can’t wait to dive into this topic, and we hope you can join us! Tune in and take control!
“Forecasts create the mirage that the future is knowable.” Given our bent to discuss the markets and economy, there is no better reality check than the astute words of American Economist Peter Bernstein. In the end (of course) we all must continue to take as much responsibility as we’re able, and to act in the way most prudent for ourselves and our future.
On today’s show, we will discuss the current economy but also time-tested ideas and information to help us deal with the reality on the ground. While the things we can’t control seem to grow daily, we’ll dive into the areas we can control. You get it, this approach can mean a greater chance of success in the long term as well as understanding what the veterans of such times are saying. Lots of questions and so many uncertainties can present opportunities for those who are patient.
See you today, where you can tune in take control!
When should I collect Social Security? How do I find out how much my benefits will be? What about disability benefits? Child survivor benefits?
On today’s radio show, we’ll tackle many of the common questions and themes we hear from our clients regarding Social Security. And joining us in our studio will be our own local expert, Bob Simpson, Northern Michigan District Manager for the Social Security Administration. We’ll discuss these and many other issues surrounding Social Security, like taxes, benefit reductions due to outside work, breakeven points for having waited to start benefits, and collecting during economic uncertainty.
Feel free to call in and discuss your situation with Bob. He is an excellent and trustworthy source for your inquiries! We hope you join us as you tune in and take control!
A recent headline from a well-known financial publisher read: What to Do When Recession Threatens Your Retirement. Many of our clients at Prout Financial Design are expressing similar sentiments, and are wondering if they should wait to retire or simply adjust their plans based on the current down market. Given that the U.S. stock market just suffered its worst first half since 1970, these questions are common themes we’ll see for some time.
So for today’s show, it makes sense for us to discuss what’s on most peoples’ minds as the markets decline into possible recession. We’ll delve into this with articles, background and even formulas for adjusting spending that Vanguard utilizes with non-profit organizations. Next, Heidi will discuss the Social Security cost of living increase and how to take advantage of I bonds. Last, Deann will borrow the best of the stats to share with you. So tune in and take control!
When “life” happens (as it certainly has this past year) to those with retirement accounts, questions often arise regarding how or when to take Required Minimum Distributions (RMDs) in the midst of a declining stock market, as well as determining what type of accounts are best to tap in the event of a hurricane or other natural disaster. If you’ve been waiting to take these RMDs out of necessity or timing considerations, you won’t want to miss today’s show! We’ll be discussing the numerous options you have in making these withdrawals, and perhaps even present a few you may not have considered. There are surprisingly many ways to change up your distribution to lessen the pain of a lower stock market and even avoid possible penalties. Ed Slott, CPA, has weighed in on this topic, and we’ll add his thoughts to the chorus. Heidi will be discussing how to avoid the most recent scam regarding student loan payoffs, and Deann will chime in with stats you’ll love to consider!
See you this Thursday at 10 a.m. or Saturday at 9 a.m. Tune in and take control!