Category: ‘Wealth Management’

Prepare Now!

June 26, 2012 Posted by Rick

We are advising our clients to plan now for the massive tax changes on the horizon for 2013. There are important steps they can take to protect their interests and preserve assets. Your CPA can provide essential tax tips and tactics to give you the tools to develop solid plans that take into account:

  • Individual income tax rates – going up.
  • Long-term capital gains rates – also going up.
  • Estate assets over the $1 million exemption – taxed at 55% rate.
  • The gift and estate tax exemption – down from $5.12 million to $1 million.
  • Taxpayers whose income exceeds the threshold amount will be subject to a 3.8% Medicare surtax on net investment income. Individuals, trusts and estates in the highest 2013 bracket of 39.6% will have a 43.4% marginal rate.

We will know after the election if the politicians advocating and promoting higher taxes will maintain the political power to prevent the repeal of these tax planning complications.

Unfortunately, you do not have the luxury of waiting the November election out. The prudent course of action is to prepare for the worst-case scenario. Now is the time to understand what’s at stake and to make intelligent decisions. In particular, the change in the gift and estate tax exemption could lead to significant losses of wealth. Your CPA can work with you to determine the best options for your unique situation.

I have touched on only a few of the areas to be considered. It is an election year, and Congress is highly polarized. There will not be substantial new tax laws passed by year-end. You and your CPA should act now.

The Importance of Financial Planning

March 15, 2012 Posted by Rick

I don’t want to appear as a shill for the financial planning community, but I think this article is spot on. But then, planning, both short and long-term, is vital in all areas of life. I know it’s trite, but failing to plan really is planning to fail.

Estate Planning before the Election

March 14, 2012 Posted by Alex

We all face uncertainty. For the successful construction contractor nearing retirement, the current estate tax law rumblings out of Washington are particularly disquieting. The current estate tax is 35% and the current lifetime exemption is $5 million per individual and $10 million per couple. Experts are speculating that estate taxes may revert back to the 2002 rate of 55%, with the lifetime exemptions dropping to $1 million and $2 million, respectively. The brilliant lights in D.C. have made estate planning all but impossible with their dithering and class warfare rhetoric. Vigilance is paramount over the next few months, probably until after the November election. There has never been a more important time to consult with your estate planning professionals to understand your current circumstances.

On the Homestretch to Your Retirement

March 4, 2012 Posted by Rick

A surprising number of our clients have been coming to us lately to discuss pending and delayed retirements. It seems that delayed is becoming the norm. This article on Yahoo Finance provide good info and clarity on the subject of retirement planning for those approaching the golden years.

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