Taxes

If you’re like many Americans, the bulk of your retirement savings likely sits in tax-deferred accounts like 401(k)s and IRAs. But when tax rates rise—as many experts predict they will—how much of your hard-earned money will you actually get to keep?

With the national debt growing at an unsustainable pace and entitlement programs placing increasing pressure on the federal budget, significant tax increases appear inevitable.

In this episode, we’re honored to welcome David McKnight—nationally renowned tax expert and bestselling author of The Power of Zero, Tax-Free Income for Life, and The Guru Gap. David draws from years of experience and collaboration with leading tax authorities, including insights from his documentary film The Power of Zero: The Tax Train Is Coming.

America has made financial promises it simply can’t keep. With the national debt projected to hit $62 trillion by 2034, no combination of tax hikes or spending cuts appears capable of reversing the course. The “tax train” is coming—and retirement savers must prepare.

One of the most powerful tools for protecting your retirement income is converting tax-deferred accounts to Roth IRAs. Doing so—particularly within favorable brackets like the 24%—can dramatically reduce your long-term tax exposure. But it must be done strategically to avoid unnecessary tax consequences.

In this episode, we explore:

As an independent & full-service financial planning firm, Wise Wealth gives truly objective advice. If you want a retirement plan tailored to your goals and your future, we’re here to help.

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People often research financial products after hearing about them through various channels, but they may be swayed by either overly positive or negative information. This can lead to risky decisions, as news often highlights sensational or negative stories to attract readers and sell ads.

Algorithms amplify confirmation bias by continuously showing users articles that align with their previous clicks, which is why we advocate for principles-based financial planning—principles remain constant even as products and industry trends evolve.

While products and industry trends may change, principles remain constant, and we’ve emphasized these principles throughout our previous podcast episodes.

For clients of Wise Wealth, we provide continued education, and we were thrilled to host our Summer Education Series. This year’s theme, “Non-Traditional Investment, Income, and Inheritance Options,” which sparked many engaging discussions.

We’re focusing on non-traditional financial methods this season, including reverse mortgages, beneficiary liquidity planning, and digital assets, and we’ll be discussing these topics in upcoming podcast episodes. Understanding your options can help you find the best fit for your individual needs.

Having a plan is crucial because it allows for a thoughtful evaluation of various financial options, ensuring that each choice aligns with individual goals and needs. As fiduciaries, we are committed to presenting unbiased, well-researched information on diverse financial topics to help clients make informed decisions within the context of a comprehensive plan.

If you’re not a client of Weiss Wealth and lack a personalized financial plan, we offer a clarity conversation to help you get started. You can reach out via email, phone, or by taking our online quiz for a free copy of our updated book, “Simplify Your Retirement.” Our goal is to simplify your retirement planning so you can fully enjoy life. Thank you for joining us as we kick off the sixth season of our podcast!

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It’s often said that people spend more time planning vacations than they do for retirement. But just as you wouldn’t wing a vacation, retirement planning requires careful consideration.

With potential decades ahead, the time invested in planning is relatively short. Therefore, it’s crucial to approach retirement seriously, laying out all your desires to ensure they align with your vision.

A common mistake is solely focusing on the day you can stop working. While reaching this milestone is significant, the ultimate goal is not just retirement but retirement freedom.

Our goal is to guide individuals towards this state of financial freedom, not just reaching retirement but thriving through it. We aim to alleviate the fears and frustrations that often accompany retirement, enabling people to enjoy their golden years with peace of mind. And at the core of achieving this peace is having a well-thought-out plan.

Whether it’s the cost of healthcare, rising taxes, stock market volatility, or inflation, our personalized Retirement Freedom Plan™ covers all potential risks eliminating those fears and what-ifs.

In retirement, you want the freedom to pursue your desires without worrying about uncertainties or risks. Working with someone who understands this is crucial. Going it alone might work, but you could still face fear and frustration along the way.

Robo-advisors lack the human touch needed to address your unique concerns. While they can provide numbers and estimates, they can’t offer the empathy and experience of a human advisor. Trusting solely in automated assessments, like those from 401k providers, may not give you the full picture. What you really need is a financial planner who can guide you not just to retirement but through it, providing both expertise and empathy tailored to your needs.

Let’s create your Retirement Freedom Plan™, starting with the “Clarity Conversation”. Reach out to us at 816-246-WISE or email [email protected] to start the journey toward freedom.

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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:

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: 

Resources:

Connect With Stephen Stricklin:

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: 

Resources:

Connect With Ben and David:

Connect With Stephen Stricklin:

About Our Guests:

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:

Resources:

Connect With Stephen Stricklin:

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: 

Resources:

Connect With Gabrielle Welter:

Connect With Stephen Stricklin:

About Our Guest:

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: 

Resources:

Connect With Stephen Stricklin:

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:

Resources:

Connect With Samantha Lane:

Connect With Stephen Stricklin:

About Our Guest:

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.