News

This last winter was one for the books. With record snowfall, rain, and cold temperatures, it’s safe to say that most of us are ready for warmer weather. What better way to celebrate the onset of sunshine and warm temps than with a three-part newsletter series to help you enjoy Summer! In this month’s newsletter, we will dive into the top 3 places to travel, based on the Summer months:

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Do you consider yourself financially literate? According to a study by S&P Global, 57% of American adults are financially literate, ranking the U.S. 14^th in the world. April is considered Financially Literacy month! Increase your financial understanding today!

Whether you’re a financial guru or consider yourself a newbie, here’s 3 ways to make a difference in your finances this April!

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With the official start, the Spring is March 20^th, the entire country can now start shedding layers after a record-breaking winter. Along with spring comes nice temperatures, fresh crisp smells, and most importantly, spring cleaning. Typically, spring cleaning will consist of throwing out or donating unused items, organizing the house. However, Spring is also a great time to spring clean your finances.

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There are 12 Months, 52 weeks, 365 days, 525,949 minutes in a year. From holidays to appointments and birthdays, a lot can happen and even more, can be forgotten. To help you worry about less and focus on more; here are 5 important dates you should add to your financial calendar :

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The last two decades mark a distinct time of change. Over the years, we’ve seen how medical advancements have altered the healthcare industry and how shifts in technology impacted our ability to be successful in the workplace. Among these evolving factors, it’s no surprise that the retirement landscape has also changed from what we knew it to be 20 years ago.

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The holidays are in the rearview and the New Year is just over the horizon. As everyone starts the New Year off with positive changes and new annual goals, make sure your finances are one of them! Don’t let your financial dreams fall out of reach by checking out these 4 financial resolutions you should promise yourself in 2019.

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Local RetireWellDallas, Mark S. Gardner, Owner Completes Advanced Training from America’s IRA Experts at Ed Slott and Company, LLC

Members of Ed Slott’s Elite IRA Advisor GroupSM Studied Latest Retirement Account Planning Strategies, Estate Planning Techniques and Tax Laws at Semiannual Workshop

Dallas, Texas – May 25, 2018 – RetireWellDallas, Mark S. Gardner completed his semiannual training with America’s IRA Experts at Ed Slott and Company, LLC in Philadelphia May 17-18, 2018. The workshop, which was attended by members of Ed Slott’s Elite IRA Advisor GroupSM, provided in-depth technical training on advanced retirement account planning strategies and estate planning techniques, as well as an update on the impact of the Tax Cuts and Jobs Act and Bipartisan Budget Act of 2018 on retirement planning.

“From lower tax rates and the elimination of Roth IRA recharacterizations to the doubling of the estate, gift and generation-skipping exemptions, tax reform has had a major impact on many key retirement planning strategies in recent months. Because of these changes, it is more important than ever for advisors to study and master these topics. I commend Gardner, who has been associated with our advanced training program for 1 year, for staying current with his retirement planning education so that he can best serve his clients,” said Ed Slott, CPA, founder of Ed Slott and Company and a nationally recognized IRA expert who was named “The Best Source for IRA Advice” by The Wall Street Journal. “With this ongoing training, Gardner can help their clients reduce their tax liability and adjust their financial plans in order to have a safe and secure retirement.”

Highlights from this event included: advanced IRA estate planning, including the difference between federal and state estate tax law; the rules and strategies for designating a trust as an IRA beneficiary; the tax implications and penalties surrounding prohibited transactions and how to avoid them and planning considerations for real estate and alternative investments within an IRA. Additionally, members analyzed recent tax law changes and their impact on retirement planning strategies, including the confirmed legitimacy of backdoor Roth IRA conversions, changes in the way a child’s unearned income is taxed, the impact on charity deductions and reasons why qualified charitable distributions (QCDs) are more desirable than ever, the temporarily reduced threshold for the medical expenses deduction and more.

Training was provided by Ed Slott and Company’s team of retirement experts, including Ed Slott, CPA; Beverly DeVeny; Sarah Brenner, JD; Jeremy Rodriguez, JD and Jim Glass, JD. Ed Slott and Company and many of the advisors in Ed Slott’s Elite IRA Advisor GroupSM are the go-to resources for attorneys, CPAs, and other financial advisors because of their in-depth knowledge and expertise in all areas of retirement account and income planning.

Members of Ed Slott’s Elite IRA Advisor GroupSM have year-round access to Ed Slott and Company’s team of retirement experts for consultation on advanced planning topics. The membership also includes step-by-step processes, including the Complete IRA Care Solution™ 30-module planning guide. Members also have access to proprietary worksheets and pamphlets, including The Definitive Guide to Required Minimum Distributions for Baby Boomers and Ed Slott’s 2018 Retirement Decisions Guide, that they can use when working with clients.

“There are many changes coming out of Washington, and it’s important for me to understand how these changes can impact my clients’ financial futures,” said Gardner. “Many are asking if they’re doing all they can to maximize their wealth. The training I receive as a member of this group allows me to serve as a trusted resource to those who want to evolve their financial plans in accordance with the changing laws and regulations.”

“The recent overhaul of the tax code has changed the way many Americans need to plan for retirement. It’s crucial for people to work with a financial professional who commits to ongoing education and maintaining the knowledge required to guide their clients through this post tax-reform era,” said Slott. “Advisors who fail to invest in their own education may make costly and irreversible mistakes on behalf of their clients. Our mission is to educate advisors so that they can help their clients make informed decisions about their financial futures.”

Mark Gardner can be contacted for more information on IRA and retirement-related questions. Please visit RetireWellDallas.com or call 214-762-2327.

ABOUT ED SLOTT AND COMPANY, LLC: Ed Slott and Company, LLC is the nation’s leading provider of technical IRA education for financial advisors, CPAs and attorneys. Ed Slott’s Elite IRA Advisor GroupSM is comprised of nearly 400 of the nation’s top financial professionals who are dedicated to the mastery of advanced retirement account and tax planning laws and strategies. Slott is a nationally recognized IRA distribution expert, best-selling author, and professional speaker. He has hosted several public television specials, including “Retire Safe & Secure! with Ed Slott” Visit irahelp.com for more information.

Mark S. Gardner – Retirement Planning

www.retirewelldallaspresents.com

Mark S. Gardner – Social Security

www.retirewelldallas4security.com

Mark S. Gardner – Women & Wealth

www.retirewelldallas4women.com

Using Your IRA for a Short-Term Loan

Reported By Mark S. Gardner, 214-762-2327

For many Americans, their IRA is their largest asset. It is not surprising then that in times of financial trouble they may want to turn to their IRA as a quick source of cash. If this is your situation and you are thinking about using your IRA for a short-term loan, here is what you need to know some employer plans include provisions where participants can take loans, but IRAs are different. There are no loan provisions for IRAs. In fact, taking a loan from your IRA would be considered a prohibited transaction and could result in the IRS considering your entire IRA liquidated and your retirement savings lost.

Because IRAs do not have loan provisions like qualified plans do, the only way to access your IRA funds on a short-term basis would be to take a distribution, use the funds as needed, and then replace them in the IRA by doing a 60-day rollover. There is nothing in the rules that prohibits you from taking a distribution whenever you want from your IRA and for whatever purpose you choose. There is also no rule that limits what you can do with your money while it is out of your IRA during the 60-day period before the rollover. So yes, technically you could take money from your IRA as a short-term loan using the 60-day rollover rule.

While you may be able to do this, the bigger question is whether it is a good idea. Doing a 60-day rollover can be tricky. There are many rules that must be followed, such as the one-rollover-per-year rule. This rule limits you, with some exceptions, to one IRA rollover in a 365-day period. That’s it! If you run afoul of this rule or any other rollover rule, your distribution will be considered taxable and will be subject to penalty if you are under age 59½. This is a mistake that can’t be fixed.
Another concern is the rule’s deadline. You must deposit the funds within 60 days from the day you receive the IRA distribution. What if you do not have the money to complete the rollover by the deadline? Again, you would be facing a taxable IRA distribution and potential early distribution penalties. Don’t expect any sympathy from the IRS. In many Private Letter Rulings, the IRS has refused to grant relief to taxpayers who used 60-day rollovers to take short-term loans from their IRAs but failed to complete a rollover by the deadline. A failed short-term loan is also nowhere to be found on the list of reasons why the IRS will allow a late rollover through the self-certification procedures.
The bottom line is that using your IRA for a short-term loan by doing a 60-day rollover is allowed, but best avoided if possible. The risks are high and the cost of things not going as planned could be a tax bill and the loss of retirement savings with no relief likely from the IRS.

Mark S. Gardner, Managing Partner
5307 E. Mockingbird Lane. Suite 900
Dallas, Texas 75206
Mobile: 214-762-2327 Fax: 469-914-6088

msgardner18@gmail.com or markgardner@RetireWellDallas.com
www.RetireWellDallas.com or www.ConservProductsLLC.com
Ed Slott Video about Tax Free Planning
Mark is a member of Ed Slott’s Master Elite IRA Advisor Group℠. He continuously trains with Ed Slott and Company, America’s IRA Experts, on in-depth technical training on advanced Pre & Post retirement account strategies, estate planning techniques and new tax laws, including an emphasis on tax reduction methods for retirees as they transition into the distribution phase of retirement. The Group is dedicated to being leaders in the retirement industry and protecting their clients’ families’ futures. Mark is Certified in Social Security Claiming Strategies (CSSCS) designation.

Living Longer Means Greater Retirement Risk!

Mark S. Gardner

There are important considerations that you need to make as people today are living 30 or more years in retirement. Longevity is a two-edge sword because the longer you live the more likely you’ll experience some form of financial hardship.

With the future uncertain one could face a need for some form of long-term care, a market crash or inflation creeping in and putting a hardship on your ability to live off your retirement portfolio. All these actions can have a devastating impact on your financial security.

With 10,000 baby boomers coming-of-age each day one of the major fears they face about retirement is running out of money. Many people still claim their Social Security benefits early and permanently reduce their benefits for the rest of their life.

― Willie Nelson said it perfect, “The early bird gets the worm, but the second mouse gets the cheese.” There are 567 strategies that are used to determined what is best for you to receive by maximizing your Social Security payment. Timing your Social Security benefits is one of the most important decisions you’ll ever make for retirement. Many people spend more time planning their vacation, buying a car or refrigerator than they do contemplating this critical decision.

Per Social Security Administration, in 20 12/37% of men and 42% of women took their benefits at age 62, permanently reducing their monthly benefit. Redeeming news is that these numbers are down from over 50% in 2000. About 31% Amana 25% of women have waited until age 66. Only 1% of man into percent of women waited until age 70 and the rest started taking their benefits between age 66 and 69.

For most people, it comes down to two simple questions:

1. How Much Can I Expect to Receive?
2. At what age should I start my benefits?

It typically pays to delay collecting your benefits as your answer depends on several factors:

1. What Is Your Current Health and Expected Longevity One should delay receiving benefits if you and your spouse are in good health and expect to live a long life. However, if you have a serious medical condition you may want to start earlier. Remember though the higher earning spouse’s benefit covers two lives!
2. What other savings investments do you have? Having other savings and income can allow you to take money out of these accounts while you are delaying your benefits.
3. Are you going to continue to work? It may not make sense to draw benefits if one continues to work due to your income.
4. What kind of taxable income will you have in retirement? Your Social Security benefits may be taxed If you have a significant pension or other taxable income.
5. What is your current family situation? Do you have a minor child? Are you divorce? Are you a widow or widower? Each of these situations call for different strategies

If you’re concerned about maximizing your Social Security benefits, I can help make it an easier decision and less stressful for you. Just call me 214-762-2327 or email me at MarkGardner@RetireWellDallas.com

Your Money Matters” Committed to maintaining the highest standards of integrity and professionalism in our relationship with you, our client”. We endeavor to know and understand your financial situation and then provide you with only the highest quality of information, services, and products to help you reach your goals. We work hard on your behalf to tailor a solution that best fits your needs. Certified in Social Security Claiming Strategies (CSSCS) designation.

With the 2016 presidential election completed, it’s time to start looking ahead to the coming year and focusing on changes that impact investment and financial planning decisions. Both President Elect Donald Trump and House Speaker Paul Ryan have proposed tax reform plans that envision reducing personal income and corporate tax rates.

Both plans promise the lowest tax rates since WWII, and personal income tax brackets would be reduced from seven to three. Under Trump’s plan, the tax brackets would be 12%, 25% and 33%, a reduction from the existing highest rate of 39.6%. Capital gains rates would remain at a top rate of 20%, while business income would be taxed at 15%. Both the Trump and Ryan plans would raise the standard deduction limit for individuals.

Overall, lower personal and business taxes are anticipated across the board. For individuals thinking about making IRA and/or pension contributions, the question is whether they should be made pre-tax or Roth. A pre-tax or 401(k) contribution offers a current income tax deduction for the amount contributed, but will result in income tax on income taken out of the account. A Roth IRA or Roth 401(k) contribution is made with after tax funds, and will result in tax-free income later provided specific conditions are met. A Roth IRA does have an income limit of $194,000 for a married couple filing jointly.

In determining whether to make a pre-tax or Roth contribution, the key is to look at the financial impact a deduction would have on tax liability. Take the example of an individual earning $40,000 per year. Under the Trump plan, the tax burden would be $4800, compared to a 25% tax rate in 2016. The general thinking goes that if there is less tax to pay then taking a tax deduction would have less of a financial impact than in a higher tax environment. An IRA contribution deduction would reduce income tax due, but the deduction would have a lower financial impact than there would be with higher tax rates, making the Roth contribution more attractive. A lower income tax policy is likely to lead to more advisers recommending the Roth IRA or 401(k) option over a pre-tax contribution. Lower tax rates mean that deductions carry less value.

Some might suggest that lower tax rates means that saving money in a tax free retirement account, such as a Roth, would have less value given that there would be less tax due at distribution. But with tax rates at probably historical lows, those looking to retire in the next 10-20 years could be looking at a future with higher taxes.

My team and I can review your financial program and help you in deciding what are the best ways to allocate your dollars as well as guide you in what is the best way to claim your Social Security benefits.

If you or someone you know is retiring or nearing retirement please feel free to contact me at 214-762-2327 or msgardner18@gmail.com