Obviously, the short answer is when you begin working and contributing to a 401(k) plan. Because any money you put away in your early to mid-twenties is going to be a great advantage to you versus the money you save at age 60. The long answer is in your early 50’s because at this age you might want to consider utilizing safety-first assets such as equity index or fixed annuities as a bigger part of your investment diversification than you might have considered earlier in your life. The reasoning behind this methodology is due to the guarantees that you cannot lose any value in these contracts due to market volatility. At this time of your life, every dollar you can earn and keep may mean the difference between your money out-living you or you out-living your money.

Unfortunately, there are several factors that go into determining the correct age to start social security, and even these are not carved in stone, because any one factor will have an impact on the other factors. The dominate factors to consider are: your age of death, what are your investments and what will be their rate of return over during your retirement years, what other sources of income do you have coming in during your retirement years? We have software that shows our clients what the most ideal age is for them to start social security based on these factors. It takes as much guess work out of the decision as possible, without really knowing your age of death. That is the single biggest factor to determine the ideal age to start claiming your benefits.

Regardless of the value of your estate when you pass away you should always have a bona fide will, and durable powers of attorney. If you do not have these documents, then you are in essence telling the state of your residence to be your beneficiary and do what they want with your assets upon your death. Knowing how poorly states handle our tax dollars doesn’t make sense to let them have your money and assets at your death. If nothing else, there are a myriad of non-profit organizations that will serve humanity in a more efficient manner than the government so you might want to consider using one of these groups as a beneficiary. If done properly before your death, you may experience a tax reduction benefit while you are alive.

Having all your assets in your children’s names may make settling your affairs easier upon your passing, but it may not be the best thing to do for their inheritance. For example, if you gift your home to your children, you will need to file a gift tax return for the value of the home if it exceeds the federal gifting guidelines. While this may not be a real concern if you have a small estate, the real financial issue will be the tax implications your children will bear when they sell your home after your death. If the house is in their names, then they will have to claim the full value of the home above the cost basis as a capital gain distribution. However, if they inherit the home while it is in your name upon your passing, then there won’t be any taxes to be paid upon the sale of the home after your death. This could be a very significant tax savings.

Tax planning is becoming one of the most sought-after financial services in the country. Americans are no longer satisfied with just having their preparer show the results from their tax filing. They want ideas on how to reduce their tax liabilities in a pro-active manner. We have tax analysis software that helps us determine what types of planning ideas you can incorporate into your life to reduce your taxes. In addition, we have advanced tax planning solutions that your tax preparer probably doesn’t know how to use. Our objective is to help you pay as little tax as legally possible to aid in building your financial future.

Moving into retirement is a big step for most people since they move from getting a paycheck from their employer, to providing their own paycheck from their assets. It is a leap of faith that most individuals aren’t ready for. And to further complicate this decision is how to structure their assets appropriately so they can live the lifestyle they desire with the least amount of risk possible. When we look at someone’s retirement decisions, we take into consideration what they want to do during their retirement years such as hobbies, travel, volunteering, social needs, health costs, familial situations, type of spending, etc. Then we put a dollar sign behind these activities to determine their lifetime costs. Then we look at creative ways to offset these costs with the financial tools that are available. This is not a one-size-fits-all scenario. Each client’s situation is independently considered to ensure that risk and inefficiency is eliminated. We constantly strive to use one dollar for three purposes, rather than using three dollars for three purposes. Utilizing our four decades of experience allows us to bring creativity and efficiency into everyone’s situation to determine their life’s dreams are fulfilled with the least amount of risk and expenditure as possible.