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.