Blog

Array
(
    [showposts] => 5
    [post_type] => post
    [post_status] => publish
)
WP_Query Object
(
    [query] => Array
        (
            [showposts] => 5
            [post_type] => post
            [post_status] => publish
        )

    [query_vars] => Array
        (
            [showposts] => 5
            [post_type] => post
            [post_status] => publish
            [error] => 
            [m] => 
            [p] => 0
            [post_parent] => 
            [subpost] => 
            [subpost_id] => 
            [attachment] => 
            [attachment_id] => 0
            [name] => 
            [pagename] => 
            [page_id] => 0
            [second] => 
            [minute] => 
            [hour] => 
            [day] => 0
            [monthnum] => 0
            [year] => 0
            [w] => 0
            [category_name] => 
            [tag] => 
            [cat] => 
            [tag_id] => 
            [author] => 
            [author_name] => 
            [feed] => 
            [tb] => 
            [paged] => 0
            [meta_key] => 
            [meta_value] => 
            [preview] => 
            [s] => 
            [sentence] => 
            [title] => 
            [fields] => 
            [menu_order] => 
            [embed] => 
            [category__in] => Array
                (
                )

            [category__not_in] => Array
                (
                )

            [category__and] => Array
                (
                )

            [post__in] => Array
                (
                )

            [post__not_in] => Array
                (
                )

            [post_name__in] => Array
                (
                )

            [tag__in] => Array
                (
                )

            [tag__not_in] => Array
                (
                )

            [tag__and] => Array
                (
                )

            [tag_slug__in] => Array
                (
                )

            [tag_slug__and] => Array
                (
                )

            [post_parent__in] => Array
                (
                )

            [post_parent__not_in] => Array
                (
                )

            [author__in] => Array
                (
                )

            [author__not_in] => Array
                (
                )

            [ignore_sticky_posts] => 
            [suppress_filters] => 
            [cache_results] => 1
            [update_post_term_cache] => 1
            [update_menu_item_cache] => 
            [lazy_load_term_meta] => 1
            [update_post_meta_cache] => 1
            [posts_per_page] => 5
            [nopaging] => 
            [comments_per_page] => 50
            [no_found_rows] => 
            [order] => DESC
        )

    [tax_query] => WP_Tax_Query Object
        (
            [queries] => Array
                (
                )

            [relation] => AND
            [table_aliases:protected] => Array
                (
                )

            [queried_terms] => Array
                (
                )

            [primary_table] => wp_354_posts
            [primary_id_column] => ID
        )

    [meta_query] => WP_Meta_Query Object
        (
            [queries] => Array
                (
                )

            [relation] => 
            [meta_table] => 
            [meta_id_column] => 
            [primary_table] => 
            [primary_id_column] => 
            [table_aliases:protected] => Array
                (
                )

            [clauses:protected] => Array
                (
                )

            [has_or_relation:protected] => 
        )

    [date_query] => 
    [request] => 
					SELECT SQL_CALC_FOUND_ROWS  wp_354_posts.ID
					FROM wp_354_posts 
					WHERE 1=1  AND wp_354_posts.post_type = 'post' AND ((wp_354_posts.post_status = 'publish'))
					
					ORDER BY wp_354_posts.post_date DESC
					LIMIT 0, 5
				
    [posts] => Array
        (
            [0] => WP_Post Object
                (
                    [ID] => 66224
                    [post_author] => 181953
                    [post_date] => 2022-11-30 14:06:34
                    [post_date_gmt] => 2022-11-30 20:06:34
                    [post_content] => Tom Fridrich, JD, CLU, ChFC, Senior Wealth Planner 

The end of the year offers an ideal opportunity to look both forward and back — reflecting on recent achievements, while setting goals for the upcoming months. For many of my clients, it's also a time to review their finances and identify moves that can help protect their tax bills. 

If you've had a particularly high-income year, you might be feeling especially confident about your finances, and yet facing the upcoming tax liability may come as a shock. Fortunately, there are several strategies that can combine two common money-related goals — reducing your tax burden while contributing to charity. 

What Is a “High-Income" Year?

When we talk about a high-income year, we're not referring just to a hefty raise from a promotion or a job change (although that is commendable and likely should invite some financial planning of its own). Here, we're talking about an unusual, often one-time spike in your income.  For example, you might have finalized the sale of your business and received a sizable one-time cash payment, rather than an installment payment over several years. Or maybe you sold property at the height of the market and realized an appreciation that exceeded the capital gains exemption or wasn't eligible for it. Or, you might have received an extraordinarily large bonus or want to exercise stock options that have recently vested. 

What Are the Tax Consequences of an Income Spike?

Obviously, most people appreciate that the higher their income, the higher the tax bill. And with ordinary income that is typically expected.  However, if you've been affected by one of these significant events, it can be painful to pay the extra taxes, especially when you recognize that this money flowing into your account is not an ongoing event.  Furthermore, while direct taxes are one thing, it might also trigger indirect consequences. A high-income year could mean you phase out of income credits that are necessary for your day-to-day life. Or it may make you ineligible for the Biden-Harris Administration's Student Debt Relief Plan, which is targeted only to those at a certain income threshold that you would otherwise qualify for.  If you're on Medicare, a high-earning year can increase your health insurance costs and make you subject to what we call “Dear Aunt IRMAA," which stands for “income-related monthly adjusted amount" and results in a surcharge in your Part B and Part D premiums. 

What Are the Benefits of Giving to Charity in a High-Income Year? 

Simultaneously, many people realize this windfall offers the chance to make a philanthropic donation in a way they've been unable to previously. Perhaps you've made smaller donations throughout the year or have tithed faithfully to a religious organization, but never felt as though you were in the position to make a more substantial gift — until now.  Thanks to this financial event, you can now make a bigger impact, while also reaping tax advantages. 

What Are Some Ways You Can Give to Charity in this High-Income Year? 

While you obviously could always make a direct cash gift to the organization of your choice, there are some other vehicles that might offer additional benefits. Here are three to consider: 
  • Donor-advised fund (DAF)
With a DAF, you make a charitable contribution to a fund that is held in a custodial account. While you make the donation and receive the tax deduction for the entire sum today, you don't have to select the end charities or how you want to allocate your funds. The money can sit in the DAF until you've determined where and at what pace you'd like to donate. Since the assets can still be invested, they may continue to grow for an even bigger impact.  A DAF is appealing because rather than making an immediate generous contribution to a group, you have the latitude to do more research or give a smaller amount and evaluate how the organization uses its money. I also see clients using it as a way to introduce their children to a philanthropic mindset by inviting them to be part of an annual conversation about where they'd like to donate.  You also can donate assets other than cash to a DAF, which makes them favorable for clients who have realized large stock gains. For example, if they purchased a portfolio for $10,000 that's now worth $100,000, they can donate the appreciated portfolio and avoid capital gains, while getting the deduction for the entire fair market value of $100,000. 
  • Qualified charitable distribution (QCD)
Clients who do not need the Required Minimum Distributions (RMD) from their 401(k) or individual retirement account (IRA) can donate it to charity and get the tax benefit as a QCD. This is especially useful for clients who take the standard deduction rather than itemizing, which would mean they otherwise wouldn't get tax relief.  While it might be too late to deploy this strategy this year, it's something to consider for 2023. Because your RMD is based on your account value as of December 31 of the prior year, we can come close to predicting what your future RMD will be and begin to plan the right strategies, including potentially donating it to avoid unexpected taxes. 
  • Charitable gift annuity
If you want to make a considerable donation now, but would benefit from receiving future income, you could look into a charitable gift annuity. This is a contract between you and the charity where you make a bequest, which provides a tax deduction, and then you also receive a stream of income from the charity. In return, the charity receives the asset up front and can use it immediately. However, not all nonprofits will accept this type of gift because it can be more involved to set up a payment stream. You can visit the American Council on Gift Annuities to find out more about how charitable gift annuities work and search for member organizations by name, type or geographic location.  With a charitable gift annuity, you claim taxes for the amount, minus the value of the payments that will eventually be made. So if you donate $30,000 with the expectation that $20,000 is the donation and the remaining $10,000 will be returned in payments, you would deduct the $20,000. 

Professional Advice Can Help You Make the Right Moves

While reducing your tax bill by donating to charity is an admirable act and often a wise financial strategy, always talk to a financial advisor before making any decisions. Since every person's situation is different, they can help you assess the tax risks and advantages and discuss options that align with your current financial position and goals.   Tom Fridrich is not affiliated with Cetera Advisor Networks LLC.  Generally, a donor advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or the donor's representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account. Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later.  For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.  [post_title] => Charitable Giving Strategies in a High-Income Year [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => charitable-giving-strategies-in-a-high-income-year [to_ping] => [pinged] => [post_modified] => 2022-11-30 14:24:49 [post_modified_gmt] => 2022-11-30 20:24:49 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?p=65498 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [1] => WP_Post Object ( [ID] => 66160 [post_author] => 90034 [post_date] => 2022-11-10 09:58:13 [post_date_gmt] => 2022-11-10 15:58:13 [post_content] => This week was midterm elections and we’ve had many questions about what it all could mean, which we’ll tackle in today’s blog. We consider it a great honor to vote, and while we may not know the final results of the election for days (or even months), what we do know is the election will probably impact the market. 2022 was one of the worst starts to a year ever for stocks, but we remain hopeful that a major low took place in the middle of October, which would be fairly normal given October’s propensity for being a bear market killer. One of our favorite tables we’ve shared this year is right here. The first few quarters of a midterm year tend to be quite weak when looking at a 4-year presidential cycle, which played out all too well this year. The really good news is some of the best quarters are upon us, so don’t lose faith quite yet.

The Calendar Is a Tailwind

The average midterm year since 1950 corrected 17.1% on average, the most out of the four-year presidential cycle. That’s the bad news, the good news is stocks gained 32.3% on average a year off those lows and have never been lower. Although we don’t know if October 12 is officially the lows or not (but we think it very well could be), there could be a lot of opportunity for bulls over the coming year. Here’s another look at the same thing, but breaking it down by each year. Should we be surprised that stocks have had a tough go so far in 2022? Maybe not, as this next chart shows the worst time for stocks is a midterm year under a new President. With the S&P 500 up only 2.4% on average these years, it helps put the disappointing year so far into perspective. Now check out what happens the following year, which might be something many investors could be smiling about soon enough. One of the most well-known investor axioms is “Sell in May and Go Away,” as those six months are some of the worst of the year. It played out this year, but what we don’t hear nearly as much about is how well stocks tend to do from November through April. Sure enough, looking at those six months during a midterm year and we find that stocks have been higher the past 18 times.

Election Aftermath

You might hear that certain sectors will do well if so-and-so wins, or that these sectors will do poorly if this-or-that happens. The truth is no one really knows. After President Trump won in 2016 it was widely assumed coal and steel would do great, the opposite happened. Then under President Biden green energy was to do great and dirty crude and coal would struggle – but, again, the opposite happened. It just isn’t clear cut. What is clear cut is stocks historically have done quite well the year after the midterms. As you can see in our last chart, the S&P 500 gained a year after the election every single time since World War II, with a very solid 14.1% average gain over that year. Why is this? Likely markets hate uncertainty and there is a lot of that leading up to a midterm election. But once the election is over the uncertainty is likely lifted. [post_title] => Let’s Talk About Midterm Elections and Your Investments [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => lets-talk-about-midterm-elections-and-your-investments [to_ping] => [pinged] => [post_modified] => 2022-11-10 10:18:34 [post_modified_gmt] => 2022-11-10 16:18:34 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?p=65431 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [2] => WP_Post Object ( [ID] => 66115 [post_author] => 181805 [post_date] => 2022-11-03 08:54:04 [post_date_gmt] => 2022-11-03 13:54:04 [post_content] => Kevin Oleszewski, Senior Wealth Planner ‘Tis the season to give. In fact, 37% of charitable giving occurs during the last quarter of the year — 20% of it in December alone, according to a survey conducted by the Blackbaud Institute. And while the holidays are traditionally a time to reflect on our blessings and help those less fortunate than ourselves, there's another factor influencing the timing of these donations — and that's the goal of minimizing a tax bill. Of course, any charitable donation should be driven by altruism and the desire to make a difference. The great news is that we're a generous society. Despite the uncertainty of the past few years, giving from individual donors remains on the rise. The Blackbaud Institute survey found giving increased 9% in 2021 over 2020, with overall giving rising 19% since 2019. However, there's nothing wrong with embracing the opportunity to help your own finances while helping others. While most donors give the conventional way, via a direct cash gift, there are other less traditional but impactful ways to give that can also provide a boost to your tax strategy.

Three Tax-Advantaged Donation Strategies to Consider

1. Create a donor-advised fund (DAF)

A DAF is an excellent way to achieve an immediate tax deduction without feeling obligated to give an entire gift at once. With a DAF, you contribute assets — cash, real estate, stock, even cryptocurrency — to a fund you establish through a custodial account, which then becomes a charitable account you personally control. Once open, you can start making gifts right away or you can leave the money in there indefinitely, potentially taking advantage of growth as you determine how you want to spend it. The entire amount of your initial donation to the DAF is deducted the year you establish it, even if you've yet to choose a charity. That makes it a savvy way to offset sky-high taxes you otherwise might owe in a year when you have a particularly high level of income. Here's an example: Let's say you intend to gift $10,000 a year over four years. You can put $40,000 into the DAF today and get the entire deduction, yet still maintain your regular schedule of making a $10,000 gift each year. This strategy also can protect you and your money in case the charity changes policies or otherwise aligns with activities or positions you disagree with. Although the gift to the DAF is irrevocable, you can redirect the remaining funds to other causes whenever you wish.

2. Use a qualified charitable distribution (QCD) from your individual retirement account (IRA).

If you are age 70 ½ or older, you can transfer money from your IRA to a charity as a qualified charitable distribution (QCD), which makes it tax-free up to $100,000 ($200,000 if you file jointly). That can be particularly handy for those who have to make Required Minimum Distributions (RMD), which is the minimum amount of money you must withdraw by law from any tax-deferred account, like an IRA or 401(k), starting at age 72. Reducing your IRA through charitable donations also reduces your overall taxable estate, which can eventually protect your beneficiaries from a tax hit. This strategy can also be a savvy way to eliminate the tax liability if you convert a traditional IRA to a Roth IRA, which some people prefer because the money in the Roth IRA will then grow tax free. Talk to your advisor about whether a conversion would make sense for your overall financial goals.

3. Donate valuable assets that aren't cash.

While most of us think of making donations to nonprofits in cash, there are other advantageous ways to support an organization. For example, donating stock that has appreciated allows you to do good for the charity and also potentially eliminate your capital gains burden. Here's how it works: Rather than liquidating the stock and owing the capital gains tax, you can donate the security directly to the organization to be eligible for a deduction of the full fair market value, up to 30% of your adjusted gross income (AGI). You also can donate items like vehicles, works of art, sports memorabilia or rare books, to name a few. Often, these are items that were bequeathed by another person yet don't hold value to you, personally. For example, a client of mine once donated valuable manuscripts to a university and received a sizable tax deduction. The benefit again with these nontraditional assets is you will receive the entire value as a tax deduction without having to absorb the capital gains tax you otherwise would owe. With a car (and potentially other goods depending on their value), work with the charity to determine the amount of the deduction. Often, especially in the case of a vehicle, a charity will sell the item, which means your deduction is based on the gross proceeds of the sale. There are exceptions, such as if the charity intends to use a vehicle for their own purposes — to deliver meals, for example. The IRS has a handy guide to all your questions about vehicle donation and how to determine the value of donated property. And always check with your accountant to ensure you are complying with all legal requirements.

Give Generously, but Also Wisely

No matter how you choose to give, here are three things to keep in mind.

Research the Charity Before Donating

Confirm the charity you've chosen is a 501(c)(3), which means it has tax-exempt status. Then evaluate other facets that are important to you, such as its financial health, key programs, results, and accountability and transparency policies. You can use a resource like Charity Navigator or GuideStar to compare various charities to find one that aligns with your goals.

Get the Requisite Paperwork

Always check with your tax planner to make sure you have the correct documentation should the IRS come knocking. Typically, contributions of money or goods will require a letter from the charity confirming how much of your gift was tax-deductible. Then verify you have the required forms. For example, you'll need to complete Form 8283 for noncash charitable contributions, and/or Form 1098 for contributions of motor vehicles, boats and airplanes. You also may need a written appraisal from a qualified appraiser depending on the value of the item. Always confirm with your tax preparer you have the most up-to-date version of the forms and the correct paperwork.

Time it Right

While it's always a good time to be generous, there are some years you might find it even more beneficial to achieve a tax deduction. Often, it's when you had a surprisingly high amount of income in one year — for example, if you sold your company. That's when conducting thoughtful tax planning can be vital to lessen the blow, and a philanthropic donation can be a key part of that. Remember that in order to qualify as a tax deduction, the gift must be paid before the end of the calendar year. Most individual itemizers can deduct up to 60% of their AGI to charity, and if your donation exceeds that, you can carry over the remainder for up to five tax years. However, note that tax laws and income brackets can change frequently so double-checking you're in compliance is always wise. Finding creative ways to donate can benefit both you and the charity. And as you retain the glow of doing something nice — and also receive a tax deduction — you are liable to agree that it is better to give than receive. Just remember to talk with your financial planner and accountant to ensure you're benefitting to the full extent possible. Converting from a traditional IRA to a Roth IRA is a taxable event. Generally, a donor advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or the donor's representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account. Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later. For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice. Kevin Oleszewski is not affiliated with Cetera Advisor Networks, LLC. [post_title] => 3 Nontraditional Ways to Give That Still Qualify for a Tax Deduction [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => 3-nontraditional-ways-to-give-that-still-qualify-for-a-tax-deduction [to_ping] => [pinged] => [post_modified] => 2022-11-03 09:08:04 [post_modified_gmt] => 2022-11-03 14:08:04 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?p=65396 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [3] => WP_Post Object ( [ID] => 66071 [post_author] => 181805 [post_date] => 2022-10-26 08:29:54 [post_date_gmt] => 2022-10-26 13:29:54 [post_content] => Kevin Oleszewski, CFP® Senior Wealth Planner As the tax year draws to a close, many high-income investors will look to reposition their portfolios to intentionally generate losses as a way to offset gains — an investment strategy known as tax loss harvesting. The goal? A net neutral tax position.

What Is Tax Loss Harvesting?

I sort of think of tax loss harvesting as the eharmony of investment planning. At its core, it's about matchmaking and there are three core steps to making it all work:
  • Step 1: You identify equities in your taxable accounts — stocks, mutual funds, bonds, as examples — that aren't performing well.
  • Step two: You single out those equities that have likely appreciated as much as they're going to, producing a gain that you're happy with.
  • Step three: You match up the loss and the gain — selling one investment at a loss to offset the capital gain generated by the sale of the investment you sold at a profit.

How Tax Loss Harvesting Works

Here's an example of how a high-income investor might put tax loss harvesting to work: Mrs. Investor buys 1,000 shares of XYZ stock at $100 a share. XYZ is now selling at $50 a share. In play: the sale of Mrs. Investor's business later in the year for a gain of $500,000. What does she do? She sells the shares in XYZ stock at a loss of $500,000 to offset the gain from the sale of her business. If it sounds a bit complicated, it is — and I wouldn't recommend repositioning your portfolio like this without involving your tax advisor and financial planner. There are many, many moving parts. For example, while a lot of people do tax loss harvesting at the end of the year, it can be done year-round. If there's a big dip in the market or a lot of volatility, this is a strategy that could be employed to an investor's advantage.

Who Can Benefit from Tax-Loss Harvesting?

It's worth noting that tax loss harvesting isn’t for everyone. People in lower tax brackets (10% and 12%) are taxed at ordinary income rates when they sell a stock they’ve held for at least one year and a day. So, their capital gain is actually zero. Who should consider tax loss harvesting? Investors in a tax bracket of 22% and up. If you think tax loss harvesting could be a good fit, the first thing you need to do is establish the cost basis of your investment — in other words, what you originally paid for it. Next, give your portfolio a hard look and think about the long-term effect of holding a particular investment. Everybody has an affinity for certain stocks.  My wife holds a stock that she will never ever sell, just because she loves that particular company so much.

Tax Loss Harvesting Top Considerations

There's no way around it: Emotion can be involved here — and shouldn't be. My advice? Your selection of investments to sell should be based specifically on tax loss harvesting reasoning — and not on anything else. You are looking at what has appreciated significantly or depreciated significantly. It's as simple as that. And when you replace the asset you've sold, it's generally a good practice to seek out something that will give you the same type of exposure in your portfolio so that your asset allocation remains unchanged. For example, if you sell stock in a particular soda company, a well‐known telecommunications company, or a popular technology company, you might consider looking at their competitors. Finally, keep this one important rule in mind: If, for example, you sell stock at a loss for tax purposes, you must wait 31 days to buy it again for it to still count as a loss. Anything short of that, and you will lose the deduction.

Have More Questions About Tax Loss Harvesting?

Talk to a qualified financial advisor to help you evaluate whether tax loss harvesting could be beneficial for you. If you don’t already have an advisor you can trust, give us a call. We’ll help you find someone who will put your needs first. Kevin Oleszewski is not affiliated with Cetera Advisor Networks, LLC. [post_title] => Considering Tax Loss Harvesting? What You Need to Know First [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => considering-tax-loss-harvesting-what-you-need-to-know-first [to_ping] => [pinged] => [post_modified] => 2022-10-26 08:46:33 [post_modified_gmt] => 2022-10-26 13:46:33 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?p=65373 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [4] => WP_Post Object ( [ID] => 66009 [post_author] => 47458 [post_date] => 2022-10-13 10:38:12 [post_date_gmt] => 2022-10-13 15:38:12 [post_content] => Last Friday, yet another strong payroll report was released with the headlines stating payrolls grew 263,000 in September and the unemployment rate fell to 3.5%. The first three charts below illustrate the strength and resiliency of the labor market this year. The last two are forward-looking indicators that bode well for continued employment gains.
  1. 3.8 million jobs created in 2022 (so far)

Payroll growth has certainly slowed over the last few months, from 537,000 in July to 315,000 in August and then 263,000 in September. But make no mistake: These are robust numbers, and the big picture is that 3.8 million jobs were created over the first nine months of 2022. Even if the economy created zero jobs over the next year, 2022 would be the 9th best year for job creation since 1940. And if the next three months saw another 500,000 jobs created, 2022 would end up as the 2nd best year behind 2021 (which was boosted by the COVID recovery).
  1. Unemployment rate falls to pre-crisis low (also the lowest since 1969)

Unemployment fell from 3.7% to 3.5% in September, going in the opposite direction of what Federal Reserve officials expect amid their interest rate hikes. The 3.5% rate matches the lowest it reached during the last expansion and is the lowest since 1969.
  1. Prime-age employment-population ratio close to pre-pandemic levels

While the unemployment rate is the most widely cited measure of labor market strength, another useful measure is the employment-population ratio. It is the proportion of the working-age population that is employed. The prime-age employment-population ratio, i.e., workers between the ages of 25 and 54, avoids some of the issues that may impact the size of the labor force (which is used to calculate the unemployment rate), such as an aging population and people leaving the labor force for other reasons. The good news is that the prime-age employment-population ratio is now at 80.2%, not far from the pre-pandemic high of 80.5%. The highest it got to during the 2003–2007 expansion was 80.3%. It did go higher in the late 1990s, indicating we may still have room for improvement.
  1. Initial unemployment benefit claims are near record lows

This is a popular leading indicator of the labor market that’s released weekly. Historically, a rise in initial claims for unemployment insurance benefits foreshadows a rise in the unemployment rate. Initial claims are currently drifting close to record lows (the latest was 219,000 as of Oct 1st). Even better news is the fact that “continuing claims” are around 1.36 million – the lowest level since the late 1960s and well below the pre-pandemic level of 1.8 million. Indicating that laid-off workers who file initial claims are quickly able to find a job, without continuing to receive unemployment insurance.
  1. Temporary help services employment continues to rise

This may be one you haven’t seen before, but it’s one I like to keep an eye on as a leading indicator for employment. Over the last few decades, employers have increasingly relied on temps to fulfill staffing needs, giving them more flexibility. When times are good and the economy is expanding, firms hire temps to ramp up quickly. And when times are bad, firms can scale down by letting temps go first, without laying off more experienced workers. We’ve seen temp employment fall prior to the start of the last four recessions. The current situation is very different, as temp help services employment has continued to rise, which is historically not something you would see if we were close to a recession. There you have it – five charts that highlight the strength of the labor market. Reach out to your advisor if you’d like to discuss what current economic conditions might mean for your unique situation.   Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. The views stated herein are not necessarily the opinion of any other named entity. Opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. [post_title] => 5 Charts Showing the Strength of the Labor Market [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => 5-charts-showing-the-strength-of-the-labor-market [to_ping] => [pinged] => [post_modified] => 2022-10-13 11:05:51 [post_modified_gmt] => 2022-10-13 16:05:51 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?p=65335 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) ) [post_count] => 5 [current_post] => -1 [in_the_loop] => [post] => WP_Post Object ( [ID] => 66224 [post_author] => 181953 [post_date] => 2022-11-30 14:06:34 [post_date_gmt] => 2022-11-30 20:06:34 [post_content] => Tom Fridrich, JD, CLU, ChFC, Senior Wealth Planner  The end of the year offers an ideal opportunity to look both forward and back — reflecting on recent achievements, while setting goals for the upcoming months. For many of my clients, it's also a time to review their finances and identify moves that can help protect their tax bills.  If you've had a particularly high-income year, you might be feeling especially confident about your finances, and yet facing the upcoming tax liability may come as a shock. Fortunately, there are several strategies that can combine two common money-related goals — reducing your tax burden while contributing to charity. 

What Is a “High-Income" Year?

When we talk about a high-income year, we're not referring just to a hefty raise from a promotion or a job change (although that is commendable and likely should invite some financial planning of its own). Here, we're talking about an unusual, often one-time spike in your income.  For example, you might have finalized the sale of your business and received a sizable one-time cash payment, rather than an installment payment over several years. Or maybe you sold property at the height of the market and realized an appreciation that exceeded the capital gains exemption or wasn't eligible for it. Or, you might have received an extraordinarily large bonus or want to exercise stock options that have recently vested. 

What Are the Tax Consequences of an Income Spike?

Obviously, most people appreciate that the higher their income, the higher the tax bill. And with ordinary income that is typically expected.  However, if you've been affected by one of these significant events, it can be painful to pay the extra taxes, especially when you recognize that this money flowing into your account is not an ongoing event.  Furthermore, while direct taxes are one thing, it might also trigger indirect consequences. A high-income year could mean you phase out of income credits that are necessary for your day-to-day life. Or it may make you ineligible for the Biden-Harris Administration's Student Debt Relief Plan, which is targeted only to those at a certain income threshold that you would otherwise qualify for.  If you're on Medicare, a high-earning year can increase your health insurance costs and make you subject to what we call “Dear Aunt IRMAA," which stands for “income-related monthly adjusted amount" and results in a surcharge in your Part B and Part D premiums. 

What Are the Benefits of Giving to Charity in a High-Income Year? 

Simultaneously, many people realize this windfall offers the chance to make a philanthropic donation in a way they've been unable to previously. Perhaps you've made smaller donations throughout the year or have tithed faithfully to a religious organization, but never felt as though you were in the position to make a more substantial gift — until now.  Thanks to this financial event, you can now make a bigger impact, while also reaping tax advantages. 

What Are Some Ways You Can Give to Charity in this High-Income Year? 

While you obviously could always make a direct cash gift to the organization of your choice, there are some other vehicles that might offer additional benefits. Here are three to consider: 
  • Donor-advised fund (DAF)
With a DAF, you make a charitable contribution to a fund that is held in a custodial account. While you make the donation and receive the tax deduction for the entire sum today, you don't have to select the end charities or how you want to allocate your funds. The money can sit in the DAF until you've determined where and at what pace you'd like to donate. Since the assets can still be invested, they may continue to grow for an even bigger impact.  A DAF is appealing because rather than making an immediate generous contribution to a group, you have the latitude to do more research or give a smaller amount and evaluate how the organization uses its money. I also see clients using it as a way to introduce their children to a philanthropic mindset by inviting them to be part of an annual conversation about where they'd like to donate.  You also can donate assets other than cash to a DAF, which makes them favorable for clients who have realized large stock gains. For example, if they purchased a portfolio for $10,000 that's now worth $100,000, they can donate the appreciated portfolio and avoid capital gains, while getting the deduction for the entire fair market value of $100,000. 
  • Qualified charitable distribution (QCD)
Clients who do not need the Required Minimum Distributions (RMD) from their 401(k) or individual retirement account (IRA) can donate it to charity and get the tax benefit as a QCD. This is especially useful for clients who take the standard deduction rather than itemizing, which would mean they otherwise wouldn't get tax relief.  While it might be too late to deploy this strategy this year, it's something to consider for 2023. Because your RMD is based on your account value as of December 31 of the prior year, we can come close to predicting what your future RMD will be and begin to plan the right strategies, including potentially donating it to avoid unexpected taxes. 
  • Charitable gift annuity
If you want to make a considerable donation now, but would benefit from receiving future income, you could look into a charitable gift annuity. This is a contract between you and the charity where you make a bequest, which provides a tax deduction, and then you also receive a stream of income from the charity. In return, the charity receives the asset up front and can use it immediately. However, not all nonprofits will accept this type of gift because it can be more involved to set up a payment stream. You can visit the American Council on Gift Annuities to find out more about how charitable gift annuities work and search for member organizations by name, type or geographic location.  With a charitable gift annuity, you claim taxes for the amount, minus the value of the payments that will eventually be made. So if you donate $30,000 with the expectation that $20,000 is the donation and the remaining $10,000 will be returned in payments, you would deduct the $20,000. 

Professional Advice Can Help You Make the Right Moves

While reducing your tax bill by donating to charity is an admirable act and often a wise financial strategy, always talk to a financial advisor before making any decisions. Since every person's situation is different, they can help you assess the tax risks and advantages and discuss options that align with your current financial position and goals.   Tom Fridrich is not affiliated with Cetera Advisor Networks LLC.  Generally, a donor advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or the donor's representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account. Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later.  For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.  [post_title] => Charitable Giving Strategies in a High-Income Year [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => charitable-giving-strategies-in-a-high-income-year [to_ping] => [pinged] => [post_modified] => 2022-11-30 14:24:49 [post_modified_gmt] => 2022-11-30 20:24:49 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?p=65498 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [comment_count] => 0 [current_comment] => -1 [found_posts] => 340 [max_num_pages] => 68 [max_num_comment_pages] => 0 [is_single] => [is_preview] => [is_page] => [is_archive] => [is_date] => [is_year] => [is_month] => [is_day] => [is_time] => [is_author] => [is_category] => [is_tag] => [is_tax] => [is_search] => [is_feed] => [is_comment_feed] => [is_trackback] => [is_home] => 1 [is_privacy_policy] => [is_404] => [is_embed] => [is_paged] => [is_admin] => [is_attachment] => [is_singular] => [is_robots] => [is_favicon] => [is_posts_page] => [is_post_type_archive] => [query_vars_hash:WP_Query:private] => 6b5c18c1252b6c6a9f5f8613c74e0017 [query_vars_changed:WP_Query:private] => [thumbnails_cached] => [allow_query_attachment_by_filename:protected] => [stopwords:WP_Query:private] => [compat_fields:WP_Query:private] => Array ( [0] => query_vars_hash [1] => query_vars_changed ) [compat_methods:WP_Query:private] => Array ( [0] => init_query_flags [1] => parse_tax_query ) )

Charitable Giving Strategies in a High-Income Year

Tom Fridrich, JD, CLUⓇ, ChFCⓇ, Senior Wealth Planner  The end of the year offers an ideal opportunity to look both forward and back — reflecting on recent achievements, while setting goals for the upcoming months. For many of my clients, it’s also a time to review their finances and i …
Continue Reading!
Array
(
    [showposts] => 5
    [post_type] => news
    [post_status] => publish
)
WP_Query Object
(
    [query] => Array
        (
            [showposts] => 5
            [post_type] => news
            [post_status] => publish
        )

    [query_vars] => Array
        (
            [showposts] => 5
            [post_type] => news
            [post_status] => publish
            [error] => 
            [m] => 
            [p] => 0
            [post_parent] => 
            [subpost] => 
            [subpost_id] => 
            [attachment] => 
            [attachment_id] => 0
            [name] => 
            [pagename] => 
            [page_id] => 0
            [second] => 
            [minute] => 
            [hour] => 
            [day] => 0
            [monthnum] => 0
            [year] => 0
            [w] => 0
            [category_name] => 
            [tag] => 
            [cat] => 
            [tag_id] => 
            [author] => 
            [author_name] => 
            [feed] => 
            [tb] => 
            [paged] => 0
            [meta_key] => 
            [meta_value] => 
            [preview] => 
            [s] => 
            [sentence] => 
            [title] => 
            [fields] => 
            [menu_order] => 
            [embed] => 
            [category__in] => Array
                (
                )

            [category__not_in] => Array
                (
                )

            [category__and] => Array
                (
                )

            [post__in] => Array
                (
                )

            [post__not_in] => Array
                (
                )

            [post_name__in] => Array
                (
                )

            [tag__in] => Array
                (
                )

            [tag__not_in] => Array
                (
                )

            [tag__and] => Array
                (
                )

            [tag_slug__in] => Array
                (
                )

            [tag_slug__and] => Array
                (
                )

            [post_parent__in] => Array
                (
                )

            [post_parent__not_in] => Array
                (
                )

            [author__in] => Array
                (
                )

            [author__not_in] => Array
                (
                )

            [ignore_sticky_posts] => 
            [suppress_filters] => 
            [cache_results] => 1
            [update_post_term_cache] => 1
            [update_menu_item_cache] => 
            [lazy_load_term_meta] => 1
            [update_post_meta_cache] => 1
            [posts_per_page] => 5
            [nopaging] => 
            [comments_per_page] => 50
            [no_found_rows] => 
            [order] => DESC
        )

    [tax_query] => WP_Tax_Query Object
        (
            [queries] => Array
                (
                )

            [relation] => AND
            [table_aliases:protected] => Array
                (
                )

            [queried_terms] => Array
                (
                )

            [primary_table] => wp_354_posts
            [primary_id_column] => ID
        )

    [meta_query] => WP_Meta_Query Object
        (
            [queries] => Array
                (
                )

            [relation] => 
            [meta_table] => 
            [meta_id_column] => 
            [primary_table] => 
            [primary_id_column] => 
            [table_aliases:protected] => Array
                (
                )

            [clauses:protected] => Array
                (
                )

            [has_or_relation:protected] => 
        )

    [date_query] => 
    [request] => 
					SELECT SQL_CALC_FOUND_ROWS  wp_354_posts.ID
					FROM wp_354_posts 
					WHERE 1=1  AND wp_354_posts.post_type = 'news' AND ((wp_354_posts.post_status = 'publish'))
					
					ORDER BY wp_354_posts.post_date DESC
					LIMIT 0, 5
				
    [posts] => Array
        (
            [0] => WP_Post Object
                (
                    [ID] => 66025
                    [post_author] => 55227
                    [post_date] => 2022-10-18 09:02:46
                    [post_date_gmt] => 2022-10-18 14:02:46
                    [post_content] => Reno, Nev. – Art of Wealth Management, a growing wealth management firm and Carson Partner, announces the hiring of Dylan Locke as a wealth advisor.

“We are proud to welcome Dylan to the Art of Wealth Management team. His vast experience in financial services and zeal for financial education is an asset to our firm and clients. He is a trusted source for sound financial strategies, and clients we believe will benefit from his incredible knowledge base,” said Steve Rose, CFP® Art of Wealth Management founder and wealth advisor.

In March 2022, Art of Wealth Management joined Carson Partners, a nationwide ecosystem bringing support, networking and resources to growth-minded independent advisory firms. Rose says the partnership has helped nurture the firm's growth through expanded resources, allowing more time to focus on clients and develop the business.

Before joining Art of Wealth Management, Locke operated his own firm, serving clients as an independent advisor for five years. He holds a Bachelor of Science degree in business administration with an emphasis in economics from the University of Nevada, Reno. Locke is originally from the Reno area and was drawn to the world of finance at an early age.

“I think finance has been in my blood since I was a toddler—I was always saving money under my bed instead of spending it. When I entered the financial services field shortly after college, I quickly realized my talents could pair with my passion for helping people. I met Steve early in my career, and I am thrilled to join his team, work alongside him and continue to live my passion as a wealth advisor at Art of Wealth Management,” said Locke.

In addition to serving clients as a wealth advisor, Locke volunteers his time at an area nonprofit and serves on the board of directors for an entrepreneurs’ group and a local human resources association. Locke is also pursuing his Certified Financial Planner (CFP®) designation.

About Carson Group

Carson Group serves financial advisors and investors through its businesses, including Carson Wealth, Carson Coaching and Carson Partners. The family of companies offers coaching and partnership services to advisor firms and straightforward financial advice to the investing public. All three organizations are headquartered in Omaha, Neb., and share a common mission to be the most trusted for financial advice. For more information, visit www.carsongroup.com.

Carson Partners offers investment advisory services through CWM, LLC; an SEC Registered Investment Advisor. Carson Partners, a division of CWM, LLC, is a nationwide partnership of advisors. Carson Coaching and CWM, LLC are separate but affiliated companies and wholly-owned subsidiaries of Carson Holdings, LLC. Carson Coaching does not provide advisory services.

[post_title] => Art of Wealth Management Expands Team, Welcomes New Wealth Advisor [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => art-of-wealth-management-expands-team-welcomes-new-wealth-advisor [to_ping] => [pinged] => [post_modified] => 2022-10-18 09:02:46 [post_modified_gmt] => 2022-10-18 14:02:46 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.artofwealthmgmt.com/?post_type=news&p=66025 [menu_order] => 0 [post_type] => news [post_mime_type] => [comment_count] => 0 [filter] => raw ) [1] => WP_Post Object ( [ID] => 65435 [post_author] => 90034 [post_date] => 2022-05-26 08:18:44 [post_date_gmt] => 2022-05-26 13:18:44 [post_content] => By Erin Wood, Senior Vice President, Financial Planning and Advanced Solutions Just a few years ago, Rose retired with a decent-sized 401(k). With some careful budgeting and a part-time job, her retirement finances were on track. Rose was looking forward to traveling, reigniting her passion for photography and spending time with her son and her grandkids. The pandemic changed everything. Her son contracted COVID-19 in the early days of the pandemic. His health deteriorated quickly and he died at only 35 years old. He didn’t have life insurance. A gig worker without a 401(k), he had very minimal retirement savings. Rose’s grandchildren, ages 2 and 6, joined the more than 140,000 U.S. children under the age of 18 who lost their primary or secondary caregiver due to the pandemic from April 2020 through June 2021. That’s approximately one out of every 450 children under age 18 in the United States. Rose’s ex-daughter-in-law battles drug addiction and had lost custody of the kids during the divorce, so Rose became the children’s primary caregiver. She quickly discovered that caring for young children as an older adult is more physically challenging than when she raised her son, so she made the difficult decision to leave her part-time job to have the energy to care for her active grandchildren. She wants to do everything for these kids who have lost so much — but it puts her financial security at risk. Sadly, she is far from alone. Read the full article [post_title] => COVID’s Financial Toll Isn’t What You Think [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => covids-financial-toll-isnt-what-you-think [to_ping] => [pinged] => [post_modified] => 2022-05-26 08:33:11 [post_modified_gmt] => 2022-05-26 13:33:11 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?post_type=news&p=64940 [menu_order] => 0 [post_type] => news [post_mime_type] => [comment_count] => 0 [filter] => raw ) [2] => WP_Post Object ( [ID] => 65327 [post_author] => 90034 [post_date] => 2022-03-25 14:07:37 [post_date_gmt] => 2022-03-25 19:07:37 [post_content] => By: Erin Wood, CFP®, CRPC®, FBS®, Senior Vice President, Financial Planning, Carson Group  

Laura and Caroline are in their late 50s. Friends since meeting at a playgroup for their toddlers, both were in long-term, seemingly happy marriages. Laura married her high school sweetheart right after they graduated from college and worked as an RN while her husband attended medical school. When their first child was born, Laura decided to become a stay-at-home parent. She just celebrated sending her last child off to college and was looking forward to enjoying an empty nest with her husband.

Already established in her career as an accountant for a large insurance firm, Caroline married a bit later, at 33. Today, she’s a financial controller for the same firm. Her spouse owns his own landscaping business. Caroline is the high-wage earner in the family.

Unfortunately, both women are now surprised to be facing a “gray” divorce: a divorce involving couples in their 50s or older. Each will need to make some tough choices as they deal with the emotional devastation of unraveling a long-term marriage. Although my focus as a financial planner is to help my clients find their financial footing during and after divorce, I also encourage clients to build a strong network of family and friends as well as a therapist or clergy person to offer critical emotional support during this time.

Read full article on Kiplinger.com

[post_title] => Emerging Financially Healthy After a Gray Divorce [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => emerging-financially-healthy-after-a-gray-divorce [to_ping] => [pinged] => [post_modified] => 2022-03-25 14:07:37 [post_modified_gmt] => 2022-03-25 19:07:37 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?post_type=news&p=64886 [menu_order] => 0 [post_type] => news [post_mime_type] => [comment_count] => 0 [filter] => raw ) [3] => WP_Post Object ( [ID] => 65192 [post_author] => 181142 [post_date] => 2022-03-04 15:28:01 [post_date_gmt] => 2022-03-04 21:28:01 [post_content] => Reno, Nevada (March 4, 2022)Art of Wealth Management, an independent registered investment advisor (RIA) in Reno, Nevada, celebrated its grand opening in March 2022. Founded by wealth advisor Steve Rose, CFP®, and located at 410 California Ave., Suite 200, Rd., Art of Wealth Management will provide comprehensive financial planning services to individuals and businesses in and around the Reno area. “Watching the hard work my clients put into earning their financial freedom inspires me to match their energy by creating a plan that maximizes their efforts,” said founder and wealth advisor Steve Rose. “Seeing clients enjoy their retirement, send their kids to college, buy their dream vacation home, sell their business or create a legacy drives me to do what I do every day.” Art of Wealth Management will also be part of Carson Partners, a community of over 120 professional advisory firms across the U.S. “Art of Wealth Management has been a firm in the making for over 16 years,” said Rose. “In my previous roles, I always felt that something was missing from the culture in the firms I’ve worked with. With the creation of Art of Wealth Management and our affiliation with Carson Group, I will be able to focus on delivering an extraordinary client experience and bringing to life what every client deserves, their own financial masterpiece.” With the partnership, Rose will have access to Carson’s industry-leading technology solutions and the support of a bench of credentialed professionals and enhanced resources including dedicated investments, research, planning, tax and estate planning teams. Additionally, Art of Wealth Management will remain independently owned, with Rose continuing to be the strategic decision-maker for all business and operational decisions. “Steve has been part of our Carson Coaching network for many years and understands the value of creating a client-centered culture,” said Ron Carson, founder and CEO of Carson Group. “Steve is committed to serving clients with trust and integrity, our collaboration will allow him to deliver the highest level of service. and have access to the latest technology and a range of resources. We are here to support Steve and we look forward to working with him to grow Art of Wealth Management and to help him serve clients for generations to come.” Recognized for four consecutive years on the Inc. 5000 list, Carson Group is one of America’s fastest-growing companies. Carson currently manages $20 billion in assets and serves more than 40,000 client families across the United States. For more information, visit www.carsongroup.com. About Carson Group Founded in 1983 by Ron Carson and headquartered in Omaha, Nebraska, Carson Group serves financial advisors and investors through its three businesses -- Carson Wealth, Carson Coaching, and Carson Partners. Carson Group has created an ecosystem dedicated to helping financial advisors unleash the full potential of their firms by providing marketing, compliance, technology, investment strategies, succession planning, M&A support, and coaching. The company currently manages more than $20 billion in assets and serves more than 40,000 families among its advisor network of 120 partner offices, including 35 Carson Wealth locations.   [post_title] => Art of Wealth Management Celebrates Grand Opening [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => art-of-wealth-management-celebrates-grand-opening [to_ping] => [pinged] => [post_modified] => 2022-03-04 15:40:04 [post_modified_gmt] => 2022-03-04 21:40:04 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.artofwealthmgmt.com/?post_type=news&p=65192 [menu_order] => 0 [post_type] => news [post_mime_type] => [comment_count] => 0 [filter] => raw ) [4] => WP_Post Object ( [ID] => 53316 [post_author] => 55227 [post_date] => 2020-01-28 10:38:21 [post_date_gmt] => 2020-01-28 16:38:21 [post_content] => By Jamie Hopkins

Roth conversions can be a powerful tax and retirement planning technique. The idea behind most Roth conversions is to take money from an IRA and convert it to a Roth IRA. Essentially, you’re paying taxes today instead of paying taxes in the future.

The Tax Cut and Jobs Act lowered taxes for many Americans and with the SECURE Act Roth IRAs became even more powerful as an estate planning vehicle to minimize taxes, so it’s a convenient time to take advantage of Roth conversions. However, Roth conversions can come with some issues. Before you engage in one, be aware of these common problems as it can be hard to undo the transaction.

Conversions After 72

IRAs and Roth IRAs are both retirement accounts. It’s easy to assume Roth Conversions are best suited for retirement, too. However, waiting too long to do conversions can actually make the entire process more challenging. If you own an IRA, it’s subject to required minimum distribution rules once you turn 72, as long as you had not already reached age 70.5 by the end of 2019. The government wants you to start withdrawing money from your IRA each year and pay taxes on the tax-deferred money. However, Roth IRAs aren’t subject to RMDs at age 72. If you don’t need the money from your RMD to support your retirement spending, you might think, “I should convert this to a Roth IRA so it can stay in a tax-deferred account longer.” Unfortunately, that won’t work. You can’t roll over or convert RMDs for a given year. So, if you owe a RMD in 2020, you need to take it and you cannot convert it to a Roth IRA. Despite the fact you can’t convert an RMD, it doesn’t mean you can’t do Roth conversions after age 72. However, you need to make sure you get your RMD out before you do a conversion. Your first distributions from an IRA after 72 will be treated as RMD money first. This means, if you want to convert $10,000 from your IRA, but you also owe an $8,000 RMD for the year, you need to take the full $8,000 out before you do a conversion. Full article on Forbes   [post_title] => 3 Roth Conversion Traps To Avoid After The SECURE Act [post_excerpt] => Roth conversions can be a powerful tax and retirement planning technique. The idea behind most Roth conversions is to take money from an IRA and convert it to a Roth IRA. Essentially, you’re paying taxes today instead of paying taxes in the future. [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => 3-roth-conversion-traps-to-avoid [to_ping] => [pinged] => [post_modified] => 2020-02-28 16:01:10 [post_modified_gmt] => 2020-02-28 22:01:10 [post_content_filtered] => [post_parent] => 0 [guid] => https://divi-partner-template.carsonwealth.com/?post_type=news&p=53316 [menu_order] => 0 [post_type] => news [post_mime_type] => [comment_count] => 0 [filter] => raw ) ) [post_count] => 5 [current_post] => -1 [in_the_loop] => [post] => WP_Post Object ( [ID] => 66025 [post_author] => 55227 [post_date] => 2022-10-18 09:02:46 [post_date_gmt] => 2022-10-18 14:02:46 [post_content] => Reno, Nev. – Art of Wealth Management, a growing wealth management firm and Carson Partner, announces the hiring of Dylan Locke as a wealth advisor. “We are proud to welcome Dylan to the Art of Wealth Management team. His vast experience in financial services and zeal for financial education is an asset to our firm and clients. He is a trusted source for sound financial strategies, and clients we believe will benefit from his incredible knowledge base,” said Steve Rose, CFP® Art of Wealth Management founder and wealth advisor. In March 2022, Art of Wealth Management joined Carson Partners, a nationwide ecosystem bringing support, networking and resources to growth-minded independent advisory firms. Rose says the partnership has helped nurture the firm's growth through expanded resources, allowing more time to focus on clients and develop the business. Before joining Art of Wealth Management, Locke operated his own firm, serving clients as an independent advisor for five years. He holds a Bachelor of Science degree in business administration with an emphasis in economics from the University of Nevada, Reno. Locke is originally from the Reno area and was drawn to the world of finance at an early age. “I think finance has been in my blood since I was a toddler—I was always saving money under my bed instead of spending it. When I entered the financial services field shortly after college, I quickly realized my talents could pair with my passion for helping people. I met Steve early in my career, and I am thrilled to join his team, work alongside him and continue to live my passion as a wealth advisor at Art of Wealth Management,” said Locke. In addition to serving clients as a wealth advisor, Locke volunteers his time at an area nonprofit and serves on the board of directors for an entrepreneurs’ group and a local human resources association. Locke is also pursuing his Certified Financial Planner (CFP®) designation.

About Carson Group

Carson Group serves financial advisors and investors through its businesses, including Carson Wealth, Carson Coaching and Carson Partners. The family of companies offers coaching and partnership services to advisor firms and straightforward financial advice to the investing public. All three organizations are headquartered in Omaha, Neb., and share a common mission to be the most trusted for financial advice. For more information, visit www.carsongroup.com.

Carson Partners offers investment advisory services through CWM, LLC; an SEC Registered Investment Advisor. Carson Partners, a division of CWM, LLC, is a nationwide partnership of advisors. Carson Coaching and CWM, LLC are separate but affiliated companies and wholly-owned subsidiaries of Carson Holdings, LLC. Carson Coaching does not provide advisory services.

[post_title] => Art of Wealth Management Expands Team, Welcomes New Wealth Advisor [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => art-of-wealth-management-expands-team-welcomes-new-wealth-advisor [to_ping] => [pinged] => [post_modified] => 2022-10-18 09:02:46 [post_modified_gmt] => 2022-10-18 14:02:46 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.artofwealthmgmt.com/?post_type=news&p=66025 [menu_order] => 0 [post_type] => news [post_mime_type] => [comment_count] => 0 [filter] => raw ) [comment_count] => 0 [current_comment] => -1 [found_posts] => 8 [max_num_pages] => 2 [max_num_comment_pages] => 0 [is_single] => [is_preview] => [is_page] => [is_archive] => [is_date] => [is_year] => [is_month] => [is_day] => [is_time] => [is_author] => [is_category] => [is_tag] => [is_tax] => [is_search] => [is_feed] => [is_comment_feed] => [is_trackback] => [is_home] => 1 [is_privacy_policy] => [is_404] => [is_embed] => [is_paged] => [is_admin] => [is_attachment] => [is_singular] => [is_robots] => [is_favicon] => [is_posts_page] => [is_post_type_archive] => [query_vars_hash:WP_Query:private] => 8bbea74eca9b0e937ac286f0d22d32a8 [query_vars_changed:WP_Query:private] => [thumbnails_cached] => [allow_query_attachment_by_filename:protected] => [stopwords:WP_Query:private] => [compat_fields:WP_Query:private] => Array ( [0] => query_vars_hash [1] => query_vars_changed ) [compat_methods:WP_Query:private] => Array ( [0] => init_query_flags [1] => parse_tax_query ) )

In the News

In the News

Art of Wealth Management Expands Team, Welcomes New Wealth Advisor

Reno, Nev. – Art of Wealth Management, a growing wealth management firm and Carson Partner, announces the hiring of Dylan Locke as a wealth advisor. “We are proud to welcome Dylan to the Art of Wealth Management team. His vast experience in financial services and zeal for financial educatio …
Continue Reading!