Taxes

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Tax Planning: A Lifetime Approach to Minimize Your Taxes In today’s episode, we dive into the topic of taxes, drawing inspiration from Benjamin Franklin’s famous quote: “There are only two things certain in life, death and taxes.” Considering the uncertainty surrounding taxes and the fear it can evoke, we emphasize the importance of having a plan in case of tax increases. While your current tax rate forms the basis of our strategy, we also incorporate a contingency for potential future tax rate hikes, stressing the need for preparation regardless of your decision to convert to a Roth or not. Now, let me introduce Becca Ollar, whose unique background as a CPA with experience in financial planning sets her apart. Unlike CPAs in accounting firms primarily dealing with business and corporate returns, Becca’s focus within a financial planning firm revolves around individual planning. In CPA firms or accounting firms, the work often happens behind closed doors with minimal interaction. Unlike the typical accounting firm setup where clients drop off tax documents in February and only reconnect in March or the following year, working with Becca involves more engagement and conversation throughout the year. It’s rare to find a CPA focused on building meaningful relationships and actively helping clients achieve their goals, rather than just offering tax preparation services. This approach involves proactive communication, strategic planning before deadlines, and a partnership mentality, ensuring clients are well-informed and minimizing surprises come tax time. The advantage of combining CPA and financial advisor services lies in seamless access to comprehensive records and consistent advice. The proactive approach, often lacking in traditional tax preparation services, is crucial for a positive client experience. Interested in Tax Preparation? Call our office at 816.246.WISE (9473), or visit our website, www.wisewealth.com. Watch or listen to the full episode to hear Stephen’s perspective on paying taxes upfront on the seed, rather than navigating the uncertainties of future tax rates and amounts during the harvest. Also learn other tax strategies such as: Maximize conversion amount within the current tax bracket. Evaluate the Impact of Moving to Higher Tax Brackets: g., 12% to 22% versus 22% to 24%. By incorporating these insights into your tax planning, you can make informed decisions that align with your financial goals.

In today’s episode, the last of Season 4, Stephen Stricklin, along with Paul Brock, answer FAQ’s surrounding retirement planning. In addition to their answers in this episode, we encourage you to look back through the seasons to gain more clarity! One listener asks, “Do you see value in splitting accounts over a few different advisors?” Stephen says with multiple advisors working with the same client, you can end up with similar portfolios, and that may not be as diversified as you’d think. In addition, different advisors have different financial philosophies, Stephen believes in simplicity and consolidation, getting all assets under the same roof.  A common question Stephen and Paul face is, “Should I have an alternative to bonds?” In this current environment where the interest rates are rising, and the value of bonds go down, ultimately it depends what your plan is. Their suggestion is a fixed indexed annuity, a fixed annuity, or CD’s. In exchange for the liquidity that bonds offer, you get guaranteed principal protection and no downside risk.   When it comes to retirement planning, someone asks, “How can I build a retirement plan when I don’t know when I will retire?” Stephen suggests picking a date and going from there. It doesn’t have to be set in stone, but it’s best to start putting together a plan sooner than later, to have peace of mind.  Stephen and Paul Discuss:  Overview of all four seasons thus far.  Addressing questions sent in from listeners  Question 1- “Do you see value in splitting my account over a few different advisors?”  Question 2- “Should I use an alternative to bonds, in this environment with interest rates rising?”  Question 3- “How can I build a retirement plan when I don’t know when I will retire?”  Podcast show taking a break in between season four and season five. Exciting new improvements to the podcast when we resume! Resources:[email protected]://www.simplifyyourretirement.com/bookhttps://wisewealth.comSeason 1The Three Bucket Approach Part 1The Three Bucket Approach Part 2The Three Bucket Approach Part 3Season 2Season 3Season 4Wise Wealth YouTube Channel Connect With Stephen Stricklin:[email protected] Your RetirementLinkedIn: Stephen StricklinLinkedIn: Wise Wealth LLC

Have you ever considered the views of the companies you’ve invested in? Do they align with yours? Join Stephen Stricklin and Paul Brock, along with guests Ben Malick and David Sandhu, as they discuss Biblically Responsible Investing. Ben and David have years of financial experience with Wise Wealth, and in this episode, offer clarity on how we can make good decisions when it comes to thinking biblically about our investments.  As an investor, you must screen for companies that take into account the acronym, ESG, Environment, Social and Governance. Do they care for the environment? How do they treat their customers and employees? How well is their board structured? Look for companies that are not harming others for the sake of profit.  As a christian, being aware of what you invest your money in is of highest importance. Focus on companies that give back to their employees and their community and support christian values. In the long run, businesses that care for people will flourish.  Bright Portfolios is Wise Wealth’s solution. Bright Portfolios is an asset allocation where they manage the portfolios for individual clients. They screen for companies exhibiting good values, and build a fully diversified portfolio. You can feel good about the companies you own and feel good about the returns. You get positive returns and know the money you’re investing is actually doing good in the world.  Ben and David Discuss:  The philosophy of Biblically Responsible Investing  ESG (Environmental, Social, Governance); what investors will screen companies for.  Types of companies to avoid. “Sin stocks”; any company that supports tobacco, alcohol, gambling, manufacturing abortion drugs, creating or distributing pornography, companies that harm others for the sake of profit.  Types of companies to invest in. “Shining light” or “Beacon of hope” companies are focused on giving back to their employees, giving to the community, and honoring God.  Does narrowing down the amount of stocks I invest in because of misaligned values make me lose a little bit of return?  Bright Portfolios is an asset allocation where they manage the portfolios for individual clients. They screen for companies exhibiting good values, and build a fully diversified portfolio.  Resources:Do you have a question to ask for an upcoming podcast episode, or want a FREE copy of our book, Simplify Your Retirement? If so, email:[email protected]://www.simplifyyourretirement.com/bookSeason 2 Episode 10 with Ben Malick Wise Wealth Phone Number: 816-246-WISE (9473)https://wisewealth.comhttps://brightportfolios.com Connect With Ben and David:[email protected]://wisewealth.comhttps://brightportfolios.com  Connect With Stephen Stricklin:[email protected] Your RetirementLinkedIn: Stephen StricklinLinkedIn: Wise Wealth LLC About Our Guests:Ben Malick is the Chief Investment Officer of Wise Wealth, Portfolio Manager for Bright Portfolios, Chartered Financial Analyst and Certified Kingdom Advisor. David Sandhu is a Wise Wealth Financial Advisor, Certified Kingdom Advisor and Chartered Retirement Planning Counselor. 

You may have heard the terms “fee” and “cost” used as synonyms, but there is a distinction that could make all the difference in the world of investing. In this episode, Stephen Stricklin and Paul Brock discuss three major misconceptions many people have about fees and costs.  A fee is something you can “see,” usually in plain sight, and made known up front, sometimes deterring an individual from taking the plunge. A cost is something you can “feel,” usually not laid out clearly in a statement, but you’ll feel the hidden costs in your returns.  The three most popular money saving misconceptions are: investing on your own, that your 401(k) has no fees, and investing online with a robo-advisor, all of which lead people to believe that they are cutting losses associated with various service fees. Stephen and Paul expose these myths with facts and statistics, showing the fees of working with an advisor actually yields greater return than the costs associated with the three methods above.  All investments have a cost, and value determines worthiness. The value of having a financial advisor when investing is highly beneficial, and the stats show it is worth it.  Stephen and Paul Discuss:  The difference between fees and costs. A fee is something that you see, a cost is something that you feel. The myths and misconceptions of fees and costs when it comes to investing. Misconception #1 “I can save money by investing on my own, and pay no fees” Vanguard study  Misconception #2 “I can save money by keeping money in the 401K, where there are ‘no fees’”  Misconception #3 “I can save money by investing online through a robo-advisor, because there are ‘no fees’” Dalbar study  Resources:Don’t forget to email [email protected] if you have any retirement questions you’d like Stephen and Paul to answer in an upcoming episode OR to get a free Copy of Stephen’s book, Simplify Your [email protected]://www.simplifyyourretirement.com/bookhttps://www.investopedia.com/ Connect With Stephen Stricklin:[email protected] Your RetirementLinkedIn: Stephen StricklinLinkedIn: Wise Wealth LLC

Are there better uses for your home equity? In today’s episode special guest Gabrielle Welter, along with host Stephen Stricklin, discuss everything reverse mortgages. Gabrielle is a reverse mortgage specialist in the Chicago area, and with 11 years experience in the financial industry, she has a lot to share.  Gabrielle debunks the negative connotation that a reverse mortgage is the “loan of last resort.” She gives an in depth look into how a reverse mortgage can enhance your retirement portfolio overall.  She answers questions like; How does a reverse mortgage work if you still have a mortgage payment? What is the cost/value? What happens when you sell your house but there’s still equity in the home?  Gabrielle Discusses:  Uses for a reverse mortgage, and how it can benefit the retiree- a way to pay for long term care.   Different scenarios for a reverse mortgage and how it would work- even if you still owe money on your mortgage, you can still qualify.  HECM- home equity conversion mortgage Why a reverse mortgage is valuable- Closing costs are high because it is FHA insured, and it is a non-recourse loan, they cannot pass any debt to any errors. Benefits of being FHA insured Explains the scenario of selling the house, still having equity in the home- leaving remaining equity to beneficiaries, “passing money”.  The scenario of not taking equity out of the home, but instead buying a new home, “HECM for purchase” or “H4P”.  Resources:Do you have a question to ask for an upcoming podcast episode, or want a FREE copy of our book, Simplify Your Retirement? If so, email:[email protected]://www.simplifyyourretirement.com/bookMyhousecounts.com Connect With Gabrielle Welter:Myhousecounts.comLinkedIn: Gabrielle Welter  Connect With Stephen Stricklin:[email protected] Your RetirementLinkedIn: Stephen StricklinLinkedIn: Wise Wealth LLC About Our Guest:Gabrielle Welter is a reverse mortgage specialist in the Chicago area. She has 11 years of experience in the financial industry, and has even owned her own Allstate agency for 5 years. She is passionate about her work, going beyond just a customer-relationship, to a client-relationship, educating her clients and countless others on her social media platforms. Gabrielle is also married, and the mother of three boys and one golden retriever.

Host Stephen Stricklin and Co-Host Paul Brock take on the topic of taxes in retirement in today’s episode, appropriately released on the tax filing deadline date of 2021. An exciting day for some, and dreaded for others, it’s a reality of our financial life we cannot avoid, and certainly a factor to consider when planning for retirement.  Stephen and Paul take a deep dive into some tax lingo. They bring listeners through five topics pertaining to taxes and retirement: Tax Planning, Effective vs. Marginal Tax Rate, Capital Gains, Social Security benefits and Medicare. They give clarity to these terms, and give examples of scenarios from the point of view of a married couple filing jointly.  Financial peace comes from having a plan, and having a base understanding of these commonly talked about concepts will help set you up for a successful and peaceful retirement.  Stephen and Paul Discuss:  Tax Planning; making sure you have a plan to deal with increasing taxes in retirement Effective Tax Rate vs. Marginal Tax Rate Capital Gains; short term vs. long term Taxation on Social Security benefits Medicare; IRMAA  Future FAQ episodes to come  Resources:Do you have a question to ask for an upcoming podcast episode, or want a FREE copy of our book, Simplify Your Retirement? If so, email:[email protected]://www.simplifyyourretirement.com/bookUS Debt Clock Link Connect With Stephen Stricklin:[email protected] Your RetirementLinkedIn: Stephen StricklinLinkedIn: Wise Wealth LLC  

Retirement is not a cliff to jump off of, but an opportunity to build bridges grounded with your values and strengths. In this episode, Stephen Stricklin is joined by guest Samantha Lane, an Associate Certified Coach who most often works with men and women making the huge transition to retirement. Samantha is passionate about helping individuals through major life changes, and being a guiding light for clients to find balance and satisfaction in their life as retirees.  Samantha walks us through six non-financial mistakes people make going into retirement, identifying them and giving tips on how to combat them. She brings up some misconceptions many people have about retirement, and encourages listeners to be proactive about their expectations, so that they can have a fulfilling life in retirement.  Samantha alleviates the heaviness that the new chapter of retirement can bring. The question of “what do I do next?” can be daunting. You don’t need to have all twenty years of retirement planned out, what you need to know is just the next right step forward.  Samantha discusses: The longevity of life for the average retiree. How she found a life coach, in Minnesota and found clarity to do what she’s doing now. Moving back to Kansas City and starting her own coaching business in 2016. The longevity of your life being tied to your social wellness Six non-financial mistakes people make going into retirement  Resources:https://simplifyyourretirement.comhttps://www.lumina-coaching.com/Season 3 Episode 1Season 3 Episode 2Season 1Season 3 Episode 9https://simplifyyourretirement.com/book/[email protected] Connect With Samantha Lane:https://www.lumina-coaching.com/LinkedIn: Samantha Lane AAC, ICF Connect With Stephen Stricklin:[email protected] Your RetirementLinkedIn: Stephen StricklinLinkedIn: Wise Wealth LLC About Our Guest:Samantha Lane is an Associate Certified Coach with the ICF. She launched Lumina Coaching in May 2016 and has since served dozens of people in support of their best life. She’s a Life Coach passionate about helping people get “unstuck” and gain awareness on developing their personal sense of balance, wellness, and success in life. She most often works with men and women making the huge transition to retirement; understanding that this life change is not a cliff to jump off of, but an opportunity to build bridges grounded with your values and strengths. When she’s not on a coaching call, you can find her walking her Chocolate Lab, Leo, hanging out with her nieces or nephews, or on a yoga mat.