4Thought Financial Group proudly announces the publication of an investment management column by its chief investment officer Jesse Mackey in the June print, online and mobile editions of the award-winning, peer-reviewed Journal of Financial Planning.
‘Journal of Financial Planning’ Features 4Thought Financial Group’s ‘Bear, Bull, Wolf & Eagle’ Analysis & Market Cycles Redefinition
When a client and I first meet, we prepare a financial plan. Within the plan, we assess cash flow needs and determine how much the portfolio must generate in order to make up any monthly income shortfall, and thereby provide for the client’s lifestyle. By figuring out what the shortfall is, we can determine how to position the investments and other income sources.
When you’re sick, you visit a doctor. If your ailment persists or you’re told you need a more serious remedy, such as surgery, you get a second opinion from another.
Even when you’re feeling well, you still schedule a routine checkup.
Why? Because when it comes to your health, you don’t mess around. You want to ensure you’ve been diagnosed properly and are receiving the most effective treatment possible to achieve optimal health.
Your financial health and well-being may also benefit from a periodic wellness check, or second opinion, every so often.
Every investor knows there are two primary financial markets, so-called “Bear” and “Bull,” and that historically, these alternate—the former characterized generally by falling prices; the latter by rising prices.
(Co-authored by 4Thought Financial Group CIO Jesse Mackey)
Most individuals that either now have or expect to have substantial wealth in the future prefer to plan in advance of their own death to minimize estate taxes to the extent possible.
While the federal estate tax exclusion in 2019 is relatively high compared to history ($11.4 million for an individual), the amount above that left to beneficiaries on death may be taxed at a maximum rate of 40%. This could be a huge tax bill in some cases if the proper planning is not done beforehand. In addition, some states have their own lower estate tax exclusion (in New York for example, it’s $5.74 million), so more people need to consider doing such planning than one might think.
So how exactly can one reduce estate taxes?
While there are several potential answers to this question (and the appropriate ones depend on the specifics of the situation), one possible solution is the Irrevocable Living Trust.
Having been in the life and health insurance industry since 1984, I have become skeptical when insurance companies include language in the fine print such as: “may be,” “ordinarily excluded,” “check with your tax advisor,” or “the rider is not long-term care insurance and is not intended to replace long-term care insurance.”
Why are those disclosures included within hybrid life insurance and long-term care policy contracts? Do we have to find out at claim time exactly how they apply? The purpose of this article is to address some of these issues.
Can Retainer Fee-Based Financial Planning & Wealth Management Help Couples Address Money-Related Relationship Problems?
Understandably so. Between rent or mortgage payments, property taxes, car and health insurance, utilities and entertainment costs, retirement and/or college savings, and the daily necessary living expenses associated with home ownership, transportation, and/or children, it can add up.
And these are just a brief rundown of some of the known expenses; unaccounted for are those unexpected costs that inevitably arise throughout the course of life.
Besides the infamous April 15th tax return deadline looming this year, there is also the infamous April 1st date.
Why is this date also infamous?
It is the “Required Beginning Date” (RBD) for Required Minimum Distribution (RMD) withdrawals from traditional IRAs following the year the IRA owner turns 70 ½. This is only the beginning. Every year thereafter, withdrawals must be taken. The result is more taxable income and income taxes. Ouch! With more and more boomers turning 70, this date will live on in infamy until the IRS changes the rules.