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A Perfect Financial Storm

August 12, 2020

Let Mainsail Advisor Group help you navigate ....The Perfect Financial Storm

The current financial storm, with some planning, offers a rare opportunity to save and reduce both income and estate taxes, today and in the future.

The five factors of the perfect storm:

  • Low interest rates at historic level
  • 2020 taxes are low, future income tax rates will be higher (the unknown is when and how much)
  • With the large federal deficit, both income and estate taxes will go up
  • Because of COVID 19, and other events, the valuations of closely held companies will be lowest in recent times
  • The Secured Act that mandates inherited IRA’s be distributed within 10 years (with some exceptions)

The benefits of the perfect storm are as follows:

  • Due to lower taxes and the Secured Act, Roth conversions are a possible option
  • Fund your retirement needs outside of traditional qualified plans
  • If you are charitably inclined, the use of a trust for the benefit of the charity, or name the charity as a beneficiary on your IRA
  • Review your tax returns. If you are in a lower tax bracket, then accelerate your RMD payments.
  • Review all beneficiaries on all policies
  • Take advantage today of the federal estate tax exemption of $11.58mm per person. Review various gifting options. An example would be a GRAT (Grantor Retained Annuity Trust). A powerful tool that could be greatly reduced in the November elections. It might go down to $5mm or less.

The positive aftermath of the storm is to take advantage of this time in history for the wellbeing of the ones you love. (and lower your taxes)

  • Lower future taxation for both income and estate taxes
  • Transfer wealth at a lower cost
  • Create greater wealth for the family
  • Proper tax and financial planning are the core
  • Review your portfolio to achieve growth and preservation of capital

Looking forward to discussing these points in greater detail.  Please contact us to set up a meeting ... telephone call, Zoom, in-person are all options.

Be safe. Be well.