Finance Decoded

July 2, 2020

As a retirement account owner, you’ve probably been warned about the 10% early distribution penalty that applies to taxable distributions made before age 59½. But did you know that if for some reason you need to access your money early, there are exceptions to this rule? Expenses such as medical ...

Read more »

This Checklist covers 18 of the most important planning issues to identify and consider before updating their estate plan. It’s structured as follows: Beneficiary & Fiduciary Issues Assets & Property Related Issues Minors & Children Related Issues Other ...

Read more »

For some people, leaving a legacy is as simple as naming their spouse as their sole beneficiary, but for many, there is a list of loved ones they want to include. Beneficiary planning can be tricky, and if you’re planning to leave your assets to more than one person, you need to ensure that you’re ...

Read more »

  Tax-Loss Harvesting A useful year-end move to counteract capital gains. Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist Even though this may end up being a subpar year for stocks, you may realize capital gains, which is a taxable event. What can you do about ...

Read more »

Have you missed the 60-day deadline for completing an IRA rollover due to an error or an unexpected life circumstance? Fortunately, the IRS has created an option for individuals to self-certify that they are eligible for a waiver of the deadline so that they can complete a late rollover. Find ...

Read more »

Have you recently inherited a loved one’s retirement assets? If so, you should know that there is an income tax deduction available to you called the income in respect of a decedent, or IRD, deduction. When certain inherited assets are hit with both federal estate and income taxes, this deduction ...

Read more »

Did you know there is no minimum age for having an IRA? As long as your child has earned income, you can open an account in their name. Whether they contribute to the IRA with their own money from working or a gift from you, the power of compound interest can help them get a significant head start ...

Read more »

As the beneficiary of an inherited IRA, you might be aware of some rules that come with these retirement accounts. However, are you also aware that the rules vary depending on whether you are a spouse, a non-spouse or a trust beneficiary? From required distributions to even the titling of the ...

Read more »

An HSA account is one of the most tax-efficient savings accounts available to investors.  While many of the distribution rules are straightforward, there are several exceptions that should be considered before a client takes a distribution from their HSA. What’s a Qualified Medical ...

Read more »

Did you know a Health Savings Account, or HSA, offers three different tax advantages? Contributions are deductible, earnings are tax-deferred while in the HSA, and distributions are tax-free when they are used for qualified medical expenses. If you’re enrolled in a high-deductible health ...

Read more »

Roth IRA Conversion in the Era of COVID-19 Is it right for you? Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist The COVID-19 pandemic has shaken up nearly every aspect of American life. To say it’s been a difficult time would be an understatement.  However, ...

Read more »

If you’re married, planning for retirement usually requires that your nest egg be large enough to shelter two people. Spousal beneficiary mistakes are common and making financial decisions in a time of grief or panic can be especially challenging. Factors such as your age and income needs should ...

Read more »

This checklist covers many of the issues to consider during a recession or market correction.  It addresses some strategies particularly useful when the valuations of the markets are low (such as Roth Conversions and gifting strategies) as well strategies to mitigate the negative impact (cash ...

Read more »

This checklist includes emergency relief options outlined in:  The CARES Act Families First Coronavirus Response Act Executive orders IRS changes And other relief options specific to COVID-19 as they pertain to individuals  For more information, contact our office at 877-714-2362 ...

Read more »

Once you reach age 72, the government requires that a specific minimum amount be withdrawn from your retirement account each year. If you miss the deadline or don’t take enough, Uncle Sam could hit you with a 50% penalty! Did you forget to take a required minimum distribution (RMD) from your ...

Read more »

Traditional Vs. Roth IRA Do you know the difference? Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist Traditional Individual Retirement Accounts (IRA), which were created in 1974, are owned by roughly 33.2 million U.S. households. Roth IRAs, however, were created as ...

Read more »

Lesser Known Provisions of the SECURE Act What younger investors need to know.   Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist   The SECURE Act passed into law in late 2019 and changed several aspects of retirement investing. These modifications included ...

Read more »

Tax Considerations for Retirees Are you aware of these potential tax breaks and tax-saving opportunities? Provided by Walter F. Pardo, Founding Partner An Ed Slott Master Elite IRA Advisor    The federal government offers some major tax breaks for older Americans. Some of these perks ...

Read more »

Have you recently lost your spouse and inherited an IRA? In the midst of grieving, determining how you want to handle your new assets may be the last thing on your mind, but there are important decisions to be made. You have a choice to either remain the beneficiary of the account or execute a ...

Read more »

That First Distribution from Your IRA What you need to know. When you are in your 70 s, Internal Revenue Service rules say that you must start making withdrawals from your traditional IRA(s). In I.R.S. terminology, these withdrawals are called Required Minimum Distributions ...

Read more »

Maxing out your retirement account contributions can be a smart financial move not only to help reduce your tax bill but also to ensure you’re setting aside enough money for the future. But do you know how much you’re allowed to contribute? Contribution limits can vary greatly depending on the ...

Read more »

Should You Care What the Financial Markets Do Each Day? Focusing on Your Strategy During Turbulent Times.   Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist   Investors are people, and people are often impatient. No one likes to wait in line or wait longer than ...

Read more »

Preparing for retirement can be overwhelming. Between tax, estate, insurance, Social Security, Medicare and investment planning, some important aspects of your financial plan can be easily overlooked if you’re not working with a competent professional. A qualified financial advisor can help you ...

Read more »

With a New Year comes a fresh start, which means now may be a good time for you to consider whether or not you’re working with the right tax professional. With the April deadline just a couple of months away, you may have already started reviewing your financial documents for your 2019 return. But ...

Read more »

ABLE Accounts for Loved Ones with Disabilities More families should know about these tax-advantaged savings vehicles. Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist   Families with special needs children have a new tax-deferred savings option. The ABLE account, ...

Read more »

The SECURE Act Long-established retirement account rules change. Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist The Setting Every Community Up for Retirement Enhancement (SECURE) Act is now law. With it, comes some of the biggest changes to retirement savings law in ...

Read more »

You’ve likely already heard about required minimum distributions (RMDs), but do you know what your required beginning date (RBD) is? Your RBD is the date by which you must begin to take RMDs from your retirement account if you have an IRA or employer plan. It is important to note that the rules ...

Read more »

Retirement Is a Beginning See if you are prepared to begin your retirement by answering four key questions. Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist   How do you know you are psychologically ready to retire? As a start, ask yourself four questions.   One, ...

Read more »

Chances are you have heard about the 3.8% surtax that went into effect in 2013 under the Affordable Care Act—but do you know if and when you might need to pay it? Despite changes to the tax code in recent years, the Medicare tax and net investment income tax remain in effect. This surtax ...

Read more »

Debunking Common Retirement Assumptions Don’t fall for these misconceptions. Provided by Walter Pardo, CWS®, PPC™ CEO/Certified Wealth Strategist   Financial generalizations are as old as time. Some have been around for decades, while others have only recently joined their ranks. Let’s ...

Read more »