The Secure Act affects your retirement planning

What is the Secure Act?

This year the House of Representatives passed the Setting Every Community Up for Retirement Enhancement Act, known as the Secure Act.  The purpose could help Americans save for retirement, unfortunately, Individual Retirement Accounts, 401(k)s, and Roth IRAs will have their value reduced. Waiting for Senate approval, the Secure Act gives non-spouse beneficiaries 10 years to pay out all the money of an IRA. The effect to beneficiaries – a huge tax hit for distributions. This could place beneficiaries in a higher tax bracket.  (more…)

Advisors in Transition – 3 Easy Tips

Advisors in transition have reached a pain point needing a solution. They want a natural and easy solution to solve that pain point. Examples of those pain points: large wirehouses taking 50% or more of the revenue, stale RIA firms with no succession plan and/or a need for intellectual freedom in this new world. Any advisor in transition starts the search with the internet. The success of any advisor in transition depends on 3 easy tips. (more…)

Trusteed IRA SmartIRA

Trusteed IRA – A quiet and powerful Client solution

A Trusteed IRA is a simple and powerful financial planning tool.  To know the power of the Trusteed IRA it’s important to describe the IRA industry for all of us.  The IRA market has grown substantially over recent years as the baby boomer generation prepares for retirement. With nearly 40.4% of all American households investing in at least one IRA, total IRA assets topped $8.5 trillion in the third quarter of 2017.[1] This amount represents more than a 30% of the total $27.2 trillion retirement market in the United States and has grown at an average rate of 7.4% percent annually since 1990.[2].   The IRS has accepted our Trusteed IRA solution which is called the SmartIRA™.

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Definitive Guide to Directed Trusts

Most financial advisors, and clients are well aware of what directed trusts can do for them (e.g. provide flexibility on management of trust assets).  There is allot of ‘noise’ about directed trusts and explaining the hows, whys, why nots etc. is important for all to be educated about.

The critical thing to keep in mind is that the trust industry is undergoing a quiet revolution that has wrested control of trust accounts away from traditional trustees—primarily in the banks and other large institutions—and back into the hands of independent trust companies, advisors and most importantly clients.

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The Dirty Business of Asset Management

The dirty business of asset management is an open secret.  Asset management firms research, buy, and sell marketable securities. Financial planners and wealth management firms allocate investors money to asset management firms. Asset management firms, like BlackRock, revenue grows every year. Client’s knowledge of the dirty business of asset management needs increasing.  General speaking, financial advisors have the tools to weed out the bad ones.

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Advisor vs Adviser – Google Ranks One Higher

Recently, we had a silly dispute on our weekly marketing call, Advisor vs Adviser, that sent us down a rabbit hole. It started with an argument on whether or not our recent email had spelling errors.

“Pretty sure its ER”

“It says OR in the company name, it’s OR”

“Google says its ER”

panic

This led to several more searches and our marketing team asking more questions. But, we got an answer: 

Technically, Advisor vs Adviser means the same thing when describing financial services. 

Regulators use the term Adviser to describe the process of providing investment advice.  Comparatively, we view the term Advisor talking about the general description of financial advisors. Which made us think,  could this make a difference in your marketing?

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How-to-pick-a-Trustee

Picking a Trustee – 4 Easy Steps

Picking a trustee gets less attention than choosing your new smartphone.  In the first place, it is not a fun moment.  You and/or maybe your spouse are sitting with your estate planning lawyer.  You are planning what happens when you pass away.    For engineers and math people this is a logical emotional process.  For everyone else it is a winding road of emotions and what-ifs.  To sum up, in your Will or separate trusts you have to pick a few positions.  In your Will you need to pick an Executor, Guardian (if you have kids), Beneficiary and a Trustee.  If you have a revocable or irrevocable trust you will need to pick a Trustee and Beneficiary.  In short, picking a trustee is really important.  They control everything.

 

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Tax Reform – Who pays more?

Tax Reform proposal, introduced yesterday, has both some pretty big winners and losers.  In the first place the bill’s name – Tax Cuts and Jobs Act.  Kinda funny. At 429 pages the bill is surprisingly lean.  Of course, this kicks off the negotiations with both sides of the aisle and special interest groups.

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US Supreme court case re-inforces advantages of SmartIRA

The SmartIRA knows has weight of value behind it.  The US Supreme Court has unanimously ruled in the Clark case that funds held in inherited IRAs are NOT “retirement funds” within the meaning of §522(b)(3)(C) and therefore are not protected in bankruptcy. It is clear that IRAs are exempted but, before this decision, whether an inherited IRA was subject to the same protection had varying precedent. The decision in Clark is another reason why naming a qualified trust as beneficiary of an IRA is beneficial.  The SmartIRA™ is the a great solution for this issue as those IRA assets would be protected in bankruptcy.

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