How to Avoid Paying An Extra $2.4 Million in Gift and Estate Tax.

Good to Know A married couple, both U.S. citizens, can jointly gift or bequeath as much as an astounding $24,120,0001 in 2022 without paying gift, estate, or generation-skipping transfer taxes. Each spouse has a $12,060,000 exclusion for gift and estate tax plus a generation-skipping transfer tax exemption of that same amount for 2022. These exclusions…

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How to Correct a Faulty Claiming Age Decision

Good to Know You may find yourself advising clients and prospects that were either misinformed or unaware of the consequences of claiming Social Security benefits too early. A potential, if not common, client angst is the realization that age 62 was NOT a wise claiming age decision. A client could face three unwelcome results from…

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The 2021 Crystal Ball: Year-End Tax Strategies for Individuals

Good to Know Year-end tax planning for 2021 depends in large part on proposed legislation, such as the “Build Back Better Act.” Without a reliable crystal ball, the ultimate passage of the Act and other legislation is hard to handicap. However, the passage of the Act could hit many upper-middle-income and high-income taxpayers squarely in…

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Is the Stretch IRA Dead for Everyone?

Good to Know The answer posed by the blog title is no. That’s good news. The bad news is that only a short list of beneficiaries is eligible for stretch IRA treatment at the death of the original IRA owner. Only an eligible designated beneficiary can stretch distributions from Traditional IRAs where the original owner…

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Anchoring Risk in Client Investing

Good to Know This blog is the first in a series to identify common psychological influences that can lead clients to financial decision errors. We begin this series with a common influence referred to as Anchoring. Anchoring Defined Anchoring is regarded by some as one of the most powerful psychological influences in the human brain.…

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The “Secret” Social Security Payraise

Good to Know One of the beauties of Social Security Retirement benefits is the cost-of-living adjustment (COLA). The COLA is simply an increase to a covered worker’s benefit to maintain their purchasing power. A covered worker is a worker from whose compensation Social Security taxes have been withheld. The long-term average annual COLA is 2.2%,…

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Tax-Avoidance On Steroids—Private Placement Life Insurance

Good to Know CFP Board expects a certificant to serve a spectrum of client demographics based upon factors such as age, gender, culture, and net worth.  This blog summarizes a unique income tax strategy for high and ultra-high net worth clients.  Private Placement Life Insurance (PPLI) can help a client: Avoid income tax on investment…

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5 Habits of Successful Candidates for CFP® Certification

Good to Know The 5 habits to passing the CFP® exam are not complicated. In fact, they’re quite simple in concept. But here’s the rub, simple is not always easy. For example, here’s the simple equation for losing weight: Calories out > Calories in = Weight loss Yet seven of every ten Americans, the author…

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What Do Sabre-Toothed Tigers and Investments Losses Have in Common?

Good to Know We introduced the concept of Behavioral Finance in the author’s most recent blog. Specifically, we learned that financial decisions that are rational to our subconscious, primal survival instincts can be breathtakingly irrational to our conscious, objective brains. One of the most perplexing and frustrating examples of this phenomenon is buying high and…

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