SEASONS GREETINGS

As 2014 comes to a close, ‘tis the season to gather together. For many people, the holidays tend to represent a time of year that is filled with faith, family, friends and reflection. When you’re sitting down around festive tables and celebrating over the next several weeks, remember to take a moment or two to consider the financial security of you and your loved ones. Are you taking full advantage of the Tax Code? Is your retirement distribution plan in order? Will your heirs be taken care of when you are gone? Have you incorporated Multi-Generational planning

into your overall plan? Are your documents and beneficiary designation forms up to date? We are here to help you with all of your tax and retirement planning needs.

Happy Holidays From My Family to Yours!

Five Marketing Problems Advisors Face Today

I’ve been in this business a very long time and I can tell you first hand that, today, advisors face more challenges than they ever have before. Here are five of the top challenges advisors face in today’s constantly changing financial world.

Multi-Generational IRAs… What Are Those?

The term Multi-Generational IRA (MGIRA) is not an official term, but is used in the retirement planning industry to refer to the ability of

beneficiaries to stretch IRA distributions over their individual life

expectancies. For your beneficiaries to continue enjoying the benefit of

tax-deferred growth on IRA assets they inherit from you, they must be

allowed to “stretch” distributions over their individual life expectancies.

This option is available only if the IRA plan document or custodial agreement allows it and specific steps are taken. 

After an IRA owner’s death, his or her designated beneficiaries can use the separate account rule and continue to receive annual distributions

from the inherited IRA based on their individual life expectancies. The

individual beneficiaries will pay income tax only on the required minimum

distributions as they are received each year. Under an MGIRA strategy,

only RMDs (required minimum distributions) are withdrawn each year.

Who will get the money in your IRA if something happens to you? How can you be sure? You might be surprised to learn that Uncle Sam, in his tax man guise, could take 35% to 80% of your IRA assets, depending on the state you live in.

Unless you make sure your retirement plan is set up correctly, the U.S. government may be the primary beneficiary of your IRA when you die. The good news is, it doesn't have to be that way. An MGIRA strategy is designed for those who want to ensure that any money left in their IRA at death will go to their heirs and not the tax man. An MGIRA strategy can greatly benefit you and your family and the best part is it costs nothing to set up.

FIA Fact or Fiction?

An FIA is a Fixed Indexed Annuity. Many people shudder when they hear the word “annuity” but the reality is that many people are confused as to what an FIA is and what it actually does. An FIA is a tax deferred opportunity to enjoy all of the upsides of the market without the risks associated with market volatility.

Don’t Underestimate the Value of a CPA

Over the last several years, many taxpayers have been going the do-it-yourself route when it comes to

tax preparation. While that may be a great option for many people, if you have an IRA or other retirement assets, you may want to consider sticking to your trusty CPA who can provide accounting services beyond the do-it-yourself computer programs. In Tax Court case, Bernard v. C.I.R. (T.C. 2012) 104 T.C.M. (CCH) 136, a married couple failed to correctly report their IRA distributions on their tax return. They used a popular tax preparation software program but, unfortunately, such programs cannot always determine whether or not the user is properly inputting data.

2014 American Graphic Design Awards!

We are pleased to announce that we have been selected as a winner in the 2014 American Graphic Design Awards! More than 8,000 entries were submitted and Table Bay’s corporate brochure ranked in the top 15%, earning a Certificate of Excellence!

Social Security: When Should You Apply?

The truth is, there is no catchall “best” age to apply for Social Security benefits because your “optimal time” will vary based on your individual circumstances. Even though there is no one size fits all answer to this question, some factors every Baby Boomer should consider are:

• Individual health status

• Life expectancy based on that health status

• Estimated need for income during your retirement

• Whether you plan (or expect you’ll need ) to work during your retirement years

• Whether or not there are (or you anticipate) any survivor needs

The most obvious perk of delaying your benefit is that you will have an opportunity to collect more money. If you apply early, your benefit not only starts lower but it will stay lower for the rest of your life, it does not increase when you turn 66. Remember, COLAs will increase your benefit and the longer you expect to live, the more beneficial it is for you to delay your Social Security benefits. Also keep in mind that your decision will impact survivor benefits so it is an important consideration in planning your strategy, as a delay will increase survivor benefits as well. According to the Social Security Administration, the chart below illustrates an example of how delaying your Social Security may impact the amount of benefits you ultimately receive. This chart is intended for illustration purposes only and assumes a benefit of $1,000 at a full retirement age of 66: