The Rules Related to Required Minimum Distributions
{2.5 minutes to read} We are writing to remind our clients of the rules related to Required Minimum Distributions (RMDs), as the distribution deadline for those that attained age 72 in 2021 is fast approaching. This reminder may be relevant to you or someone that you know. By way of background, those that have attained age 72 during the calendar year 2021 and that have non-Roth Individual Retirement Accounts (IRAs), including Self Employed Pension (SEP) and SIMPLE plans, and/or non-Roth retirement plans, such as a 401(K), are required [...]
Fear and Hope
{4 minutes to read} Today, I wanted to share a piece from my very close friend, CPA, Investment RIA Partner Jonathan Gassman, who wrote to me recently. I reiterate the closing statement — I am grateful for all the folks we work with and help, and are here to chat if you would like. Hi Michael, I'm down in Florida visiting my 95-year-old mom. We've been watching the news and reading the daily headlines. She asked me if I thought hard times are here? I said no! She [...]
Retirement Planning, Procrastination, and Safe Withdrawal Rates
{3 minutes to read} As we've been discussing over the last few weeks, retirement planning has been a focus of mine. I want to continue down that path and talk conceptually about something we call the journey. When someone is climbing a mountain, the objective is usually to get to the top. But once you have attained the summit, you now have to safely get back down. The analogy of mountain climbing is very similar to financial and retirement planning because the objective isn't just to get to [...]
An Intentionally Defective Grantor Trust
{3 minutes to read} Today, we're going to focus on an estate planning concept called an Intentionally Defective Grantor Trust. This strange name for a trust, sometimes also known as an Intentionally Defective Irrevocable Trust, is a very strong tax shelter for people. When we are dealing with estate planning, a lot of the focus is on transferring wealth to the next generation tax-free. The government gives us an amount of money that we could give away every year during our lifetime. Currently, that amount is approximately $11 [...]
Estate Planning for Families with Special Needs
{5 minutes to read} Today, we're going to talk about estate planning for families that have special needs children—whether adult or minor children—and what the estate plan needs to consider for these persons with special needs. Normally, with two children, an estate is equally left to both. However, when there is a child with special needs, that plan would cause tremendous problems, because there are government benefits that are only provided to a special needs child if they can't afford to pay for those benefits out of their [...]