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Tax Planning For A Financially Secure Retirement

Archive for July, 2010

Saturday, July 31, 2010 | Posted in Featured

Tax Planning For A Financially Secure Retirement

The one thing that is likely to be important, but overlooked, during the entire process of your pre-retirement planning, is tax-planning for a financially secure retirement. It is easy to save on the taxes and to enhance your total retirement income, simply by keeping informed, doing a little judicious research, and taking the right steps.

  • Consider a rollover of retirement funds from an IRA to a Roth IRA
  • Defer income or accelerate deductions to qualify for the Roth IRA conversion
  • Consider a rollover employer stocks and bonds to IRA
  • Calculate the tax payable on lump sum distribution from the retirement plan
  • Maximize tax deferral through various distribution methods for your IRA and annuities
  • Take the required minimum distributions from your IRA in lowest tax years
  • Avoid penalty tax on the distributions from your IRAs
  • Use disability insurance premiums to maximize the non-taxable part of disability benefits
  • Create separate IRA accounts for beneficiaries to maximize tax deferrals
  • Reduces or eliminate federal estate taxes on IRA benefits
  • Use charitable beneficiary designations to eliminate taxes on IRA benefits

The various strategies for tax-planning for a financially secure retirement, some of which are explored below, are fairly simple, and can make a substantial difference to your finances in your retirement. For example:

You can avail quite a solid long-term tax saving if you transfer funds from a traditional IRA to a Roth IRA. You can save on taxes because you are in a lower tax bracket while making the transfer than the point where you would withdraw the funds. You can also transfer high-income assets to the Roth IRA, or pass your IRA funds to your heirs if there is a lot remaining after you die.

In addition, you can gain long-term tax savings due to tax rate differential. Consider making the transfer from IRA to Roth IRA in the particular year when you have a tax loss or fit into a low tax bracket, for some reason. Although the amount transferred, or a part of it, is taxable income, it can be offset against your tax losses.

Alternatively, you may have to pay taxes on the funds you transfer at lower tax rates than those that will apply to future distributions from the IRA, giving you substantial long-term tax savings using the tax rate differential and the tax-free distribution of earnings from the Roth IRA.

Long-term tax savings can also be accumulated by transferring high income assets. Regular IRAs generally have assets that may have a high income potential. Transfer those assets to the Roth IRAs. Even if you have to borrow money to pay the tax on the transfer, the rate of earnings from the transferred assets is higher, than the interest rate on your loan, so there will be a substantial long-term tax saving.

Borrowing from a home equity line of credit can add to your savings, since it qualifies for deductions on the interest you pay on the loan.

You can also use low-yielding liquid funds for paying the tax on the transfer to the Roth IRA.

If you don’t use your IRA funds during retirement, transfer them to a Roth IRA, before your heirs inherit it. The advantage would come from the fact that Roth IRAs do not have to make distributions during your lifetime, while traditional IRAs make minimum distributions when you reach the age of 70 ½. Transferring to a Roth IRA avoids the tax you would pay on distributions.

Do some research, get some help, and take the right steps for tax-planning for a financially secure retirement.

For your free consultation, contact Mike Habib at 1-877-95-IRAMD (877-954-7263)

Tax planning, IRA Help, retirement planning, financial planning in LOS ANGELES COUNTY:

Acton - Agoura Hills - Alhambra - Altadena - Arcadia - Artesia - Avalon - Azusa - Baldwin Park - Bell - Bellflower - Beverly Hills - Burbank - Calabasas - Canoga Park - Canyon Country - Carson - Castaic - Cerritos - Chatsworth – City of Industry -Claremont - Compton - Covina - Culver City - Diamond Bar - Downey - Duarte - El Monte – South, - El Segundo - Encino - Gardena - Glendale - Granada Hills - Hacienda Heights – Harbor City - Hawaiian Gardens - Hawthorne - Hermosa Beach - Huntington Park - Inglewood - LA Los Angeles - La Canada Flintridge - La Crescenta - La Habra Heights - La Mirada - La Puente – La Verne - Lawndale – Long Beach – Lynwood - Malibu - Manhattan Beach - Marina del Rey - Maywood - Mission Hills - Monrovia - Montebello – Monterey Park - Montrose - Newhall - North Hills - North Hollywood - Northridge - Norwalk - Pacific Palisades – Pacoima - Palmdale - Palos Verdes - Panorama City - Paramount - Pasadena - Pearblossom - Pico Rivera - Playa del Rey – Playa Vista - Pomona - Rancho P.V. - Redondo Beach - Reseda - Rosemead - Rowland Heights - San Dimas - San Fernando – San Gabriel - San Marino - San Pedro - Santa Clarita - Santa Fe Springs - Santa Monica - Sherman Oaks - Sierra Madre – Signal Hill - South Gate - South Pasadena - Stevenson Ranch - Studio City - Sun Valley - Sunland - Sylmar - Tarzana – Temple City - Topanga - Torrance - Valencia - Valley Village - Van Nuys - Venice - Walnut - West Covina - West Hills – West Hollywood/LA Los Angeles - Westlake Village - Whittier - Wilmington - Winnetka - Woodland Hills .

Tax planning, IRA Help, retirement planning, financial planning in ORANGE COUNTY:

Aliso Viejo – Anaheim – Anaheim Hills – Balboa Island – Brea – Buena Park - Capistrano Beach – Corona del Mar – Costa Mesa – Cypress – Dana Point – Foothill Ranch - Fountain Valley – Fullerton – Garden Grove – Huntington Beach – Irvine – La Habra – La Palma - Ladera Ranch – Laguna Beach – Laguna Hills – Laguna Niguel – Laguna Woods – Lake Forest - Los Alamitos – Midway City – Mission Viejo – Newport Beach – Newport Coast – Orange – Placentia – Rancho St. Margarita – San Clemente – San Juan Capistrano – Santa Ana – Seal Beach – Silverado – Stanton – Sunset Beach – Surfside – Trabuco Canyon – Tustin – Villa Park – Westminster – Yorba Linda .

Tax planning, IRA Help, retirement planning, financial planning in RIVERSIDE COUNTY :

Aguanga – Anza – Banning – Beaumont – Blythe – Cabazon – Calimesa – Canyon Lake – Cathedral City – Coachella – Corona – Desert Center – Desert Hot Springs – Hemet – Homeland – Idyllwild, Indian Wells – Indio – La Quinta – Lake Elsinore – Mecca – Menifee – Mira Loma – Moreno Valley, Mountain Center – Murrieta – Norco – North Palm Springs – Nuevo, Palm Desert – Palm Springs, Perris – Rancho Mirage – Riverside – San Jacinto – Sun City – Temecula – Thermal - Thousand Palms – White Water – Wildomar – Winchester .

Tax planning, IRA Help, retirement planning, financial planning in SAN BERNARDINO COUNTY :

Adelanto – Angeles Oaks – Apple Valley – Barstow – Big Bear City – Big Bear Lake – Bloomington, Blue Jay – Cedar Glen – Cedarpines Park – Chino – Chino Hills – Colton – Crest Park – Crestline, Daggett – Fawnskin – Fontana – Forest Falls – Grand Terrace – Green Valley Lake – Helendale – Hesperia – Highlands – Hinkley – Joshua Tree – Lake Arrowhead – Landers – Loma Linda - Lucerne Valley – Lytle Creek – Mentone – Montclair – Morongo Valley – Needles - Newberry Springs – Ontario – Oro Grande – Phelan – Pinon Hills – Pioneertown - Rancho Cucamonga – Redlands – Redlands – Rialto – Rim Forest – Running Springs - San Bernardino – Sky Forest – Sugarloaf – Trona – Twentynine Palms – Twin Peaks – Upland, Victorville – Wrightwood – Yermo – Yucaipa – Yucca Valley .

Tax planning, IRA Help, retirement planning, financial planning in SAN DIEGO COUNTY :

Alpine – Bay Park – Bonita – Bonsall – Borrego Springs – Boulevard – Campo – Carlsbad - Chula Vista – Clairemont – College Grove – Coronado - Del Mar – Descanso – Downtown – Dulzura, East San Diego – El Cajon – Encanto – Encinitas – Escondido – Fallbrook – Grantville – Hillcrest, Imperial Beach – Jacumba – Jamul – Julian – La Jolla – La Mesa – Lakeside – Lemon Grove - Linda Vista – Logan Heights – Mission Village – National City – Normal Heights – North City West, North Park – Ocean Beach – Oceanside – Pacific Beach – Palomar Mtn – Paradise Hills - Pauma Valley – Pine Valley – Point Loma – Potrero – Poway – Ramona – Ranchita - Rancho Bernardo – Rancho Penasquitos – Rancho Santa Fe - San Carlos – San Diego - San Marcos – San Ysidro – Santa Ysabel – Santee – Scripps Ranch – Solana Beach - South San Diego – Spring Valley - Spring Valley – Tierrasanta – University City – Valley Center, Vista – Warner Springs .

Tax planning, IRA Help, retirement planning, financial planning in VENTURA COUNTY :

Bell Canyon – Camarillo – Fillmore – Moorpark – Newbury Park – Oak Park – Oak View – Ojai Oxnard – Piru – Port Hueneme – Santa Paula – Simi Valley – Somis – Thousand Oaks – Ventura Westlake Village .

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Saturday, July 31, 2010 | Posted in Promo

Most Common Pre-Retirement Planning Mistakes Baby Boomers Make

Most Common Pre-Retirement Planning Mistakes Baby Boomers Make

Just investing in a retirement plan does not guarantee that you will be financially secure at your retirement. One misstep in planning for your retirement could land the baby boomer in a heap of trouble and push your retirement back by years. To make sure that you are in the perfect position to retire when you want to, and on your own terms, diligent planning is as essential as is avoiding the most common pre-retirement planning mistakes that baby boomers make. If you make these common retirement planning mistakes, you may be headed for trouble.

  • Don’t forget to take complete advantage of your company retirement benefits, and invest as much as you can afford into your company retirement plan.
  • Don’t withdraw money from your retirement plan or you will lose valuable interest which is almost impossible to replace. Some retirement plans do allow hardship withdrawals and loans, but find out about the loss of interest, penalties and early withdrawal fees that may be involved.
  • Don’t forget to actively monitor all your investments, to keep yourself aware of discrepancies and know how well your investments are performing.
  • Don’t rely solely on Social Security to provide your entire retirement income. Back it up with other means of income such as a company pension plan and personal savings.
  • Don’t rely on your partner’s retirement plan. The partner with the retirement plan may die, divorce or have an extended illness that would end up compromising single spouse retirement plans. Make sure each person has a separate retirement plan.
  • Don’t forget to review your retirement plan on a regular basis. Review asset allocation, balances, goals, etc to make the most of your retirement plan.
  • Avoid poor asset allocation.
  • Don’t put all your investments in one stock. Diversify investments so that if one failure does not wipe out your entire retirement fund.
  • Carefully check out your broker and your financial advisor before you trust your retirement savings to them. Research credentials and track records.
  • Don’t rely heavily on your company stocks. Although it is a good way to save for your retirement, diversify your portfolio beyond company stock. A good mix of investments is essential for a good retirement account.
  • Don’t forget to take retirement planning seriously. Your retirement plan should be a priority even when you are young and at the beginning of your career. Starting early allows you to stash away a large investment and might even enable you to retire early. Think about the life style you want after retirement, and don’t postpone planning until after all your current commitments are paid for.
  • Don’t forget to figure out the numbers. There is no set formula to determine how much money you will need. The amount depends on the lifestyle you want, your current capability to save, and your investments. Roughly, to generate an income of $50,000 per year during your retirement, it is necessary to accumulate $1 million in the fund.
  • Don’t send your money to the wrong people. Retirement may seem far away, while college looms large but remember that there are other ways to help finance an education.
  • Don’t spend extra income on paring down mortgage debt. Build a nest egg instead.
  • Don’t forget to insure your savings. Long-term-care insurance is one of the most essential kinds of coverage.

In short, take your retirement planning seriously and keep your goals in sight, always. Don’t make the most common pre-retirement mistakes that baby boomers make.

For your Free Consultation, call Mike Habib at 1-877-95-IRAMD (877-954-7263).

Tax planning, IRA Help, Estate Planning and financial planning serving: Pasadena, Glendale, Los Angeles, Beverly Hills, Long Beach, Irvine, Santa Ana, Riverside, San Bernardino, Ventura, San Diego

Boomers Tax planning, Boomers IRA Help, Boomers Estate Planning and financial planning serving LOS ANGELES COUNTY:

Acton - Agoura Hills - Alhambra - Altadena - Arcadia - Artesia - Avalon - Azusa - Baldwin Park - Bell - Bellflower - Beverly Hills - Burbank - Calabasas - Canoga Park - Canyon Country - Carson - Castaic - Cerritos - Chatsworth – City of Industry -Claremont - Compton - Covina - Culver City - Diamond Bar - Downey - Duarte - El Monte – South, - El Segundo - Encino - Gardena - Glendale - Granada Hills - Hacienda Heights – Harbor City - Hawaiian Gardens - Hawthorne - Hermosa Beach - Huntington Park - Inglewood - LA Los Angeles - La Canada Flintridge - La Crescenta - La Habra Heights - La Mirada - La Puente – La Verne - Lawndale – Long Beach – Lynwood - Malibu - Manhattan Beach - Marina del Rey - Maywood - Mission Hills - Monrovia - Montebello – Monterey Park - Montrose - Newhall - North Hills - North Hollywood - Northridge - Norwalk - Pacific Palisades – Pacoima - Palmdale - Palos Verdes - Panorama City - Paramount - Pasadena - Pearblossom - Pico Rivera - Playa del Rey – Playa Vista - Pomona - Rancho P.V. - Redondo Beach - Reseda - Rosemead - Rowland Heights - San Dimas - San Fernando – San Gabriel - San Marino - San Pedro - Santa Clarita - Santa Fe Springs - Santa Monica - Sherman Oaks - Sierra Madre – Signal Hill - South Gate - South Pasadena - Stevenson Ranch - Studio City - Sun Valley - Sunland - Sylmar - Tarzana – Temple City - Topanga - Torrance - Valencia - Valley Village - Van Nuys - Venice - Walnut - West Covina - West Hills – West Hollywood/LA Los Angeles - Westlake Village - Whittier - Wilmington - Winnetka - Woodland Hills .

Boomers Tax planning, Boomers IRA Help, Boomers Estate Planning and financial planning serving ORANGE COUNTY:

Aliso Viejo – Anaheim – Anaheim Hills – Balboa Island – Brea – Buena Park - Capistrano Beach – Corona del Mar – Costa Mesa – Cypress – Dana Point – Foothill Ranch - Fountain Valley – Fullerton – Garden Grove – Huntington Beach – Irvine – La Habra – La Palma - Ladera Ranch – Laguna Beach – Laguna Hills – Laguna Niguel – Laguna Woods – Lake Forest - Los Alamitos – Midway City – Mission Viejo – Newport Beach – Newport Coast – Orange – Placentia – Rancho St. Margarita – San Clemente – San Juan Capistrano – Santa Ana – Seal Beach – Silverado – Stanton – Sunset Beach – Surfside – Trabuco Canyon – Tustin – Villa Park – Westminster – Yorba Linda .

Boomers Tax planning, Boomers IRA Help, Boomers Estate Planning and financial planning serving RIVERSIDE COUNTY :

Aguanga – Anza – Banning – Beaumont – Blythe – Cabazon – Calimesa – Canyon Lake – Cathedral City – Coachella – Corona – Desert Center – Desert Hot Springs – Hemet – Homeland – Idyllwild, Indian Wells – Indio – La Quinta – Lake Elsinore – Mecca – Menifee – Mira Loma – Moreno Valley, Mountain Center – Murrieta – Norco – North Palm Springs – Nuevo, Palm Desert – Palm Springs, Perris – Rancho Mirage – Riverside – San Jacinto – Sun City – Temecula – Thermal - Thousand Palms – White Water – Wildomar – Winchester .

Boomers Tax planning, Boomers IRA Help, Boomers Estate Planning and financial planning serving SAN BERNARDINO COUNTY :

Adelanto – Angeles Oaks – Apple Valley – Barstow – Big Bear City – Big Bear Lake – Bloomington, Blue Jay – Cedar Glen – Cedarpines Park – Chino – Chino Hills – Colton – Crest Park – Crestline, Daggett – Fawnskin – Fontana – Forest Falls – Grand Terrace – Green Valley Lake – Helendale – Hesperia – Highlands – Hinkley – Joshua Tree – Lake Arrowhead – Landers – Loma Linda - Lucerne Valley – Lytle Creek – Mentone – Montclair – Morongo Valley – Needles - Newberry Springs – Ontario – Oro Grande – Phelan – Pinon Hills – Pioneertown - Rancho Cucamonga – Redlands – Redlands – Rialto – Rim Forest – Running Springs - San Bernardino – Sky Forest – Sugarloaf – Trona – Twentynine Palms – Twin Peaks – Upland, Victorville – Wrightwood – Yermo – Yucaipa – Yucca Valley .

Boomers Tax planning, Boomers IRA Help, Boomers Estate Planning and financial planning serving SAN DIEGO COUNTY :

Alpine – Bay Park – Bonita – Bonsall – Borrego Springs – Boulevard – Campo – Carlsbad - Chula Vista – Clairemont – College Grove – Coronado - Del Mar – Descanso – Downtown – Dulzura, East San Diego – El Cajon – Encanto – Encinitas – Escondido – Fallbrook – Grantville – Hillcrest, Imperial Beach – Jacumba – Jamul – Julian – La Jolla – La Mesa – Lakeside – Lemon Grove - Linda Vista – Logan Heights – Mission Village – National City – Normal Heights – North City West, North Park – Ocean Beach – Oceanside – Pacific Beach – Palomar Mtn – Paradise Hills - Pauma Valley – Pine Valley – Point Loma – Potrero – Poway – Ramona – Ranchita - Rancho Bernardo – Rancho Penasquitos – Rancho Santa Fe - San Carlos – San Diego - San Marcos – San Ysidro – Santa Ysabel – Santee – Scripps Ranch – Solana Beach - South San Diego – Spring Valley - Spring Valley – Tierrasanta – University City – Valley Center, Vista – Warner Springs .

Boomers Tax planning, Boomers IRA Help, Boomers Estate Planning and financial planning serving VENTURA COUNTY :

Bell Canyon – Camarillo – Fillmore – Moorpark – Newbury Park – Oak Park – Oak View – Ojai Oxnard – Piru – Port Hueneme – Santa Paula – Simi Valley – Somis – Thousand Oaks – Ventura Westlake Village .

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Saturday, July 31, 2010 | Posted in Promo

How to select a Financial Advisor

Financial Planning Advisor

Financial planning basics

Financial planning is something that practically every individual has to conduct in order make the most of their income and efficiently allocate some of it for future use. A financial plan takes into consideration current expenses in relation to short-term and long-term savings as in the case of investments.

While financial planning is an important activity, not everyone is adept with it. And many simply do not have the time to sit down and manage their finances at a deeper level than just keeping tabs of their income and expenditures. This is where a financial planning advisor comes into the picture.

Selecting a financial planner

A financial planner is a financial professional trained to help individuals and businesses allocate their income efficiently so they get the most out of it. He provides relevant advice on investments, the most effective ways to save money, protect the investment choices and get better returns.

The thing about financial services is that there are no educational requirements or certifications – and this is why many people can just call themselves a “financial advisor” even if they have zero experience.  If you’re going to seek the assistance of somebody for organizing your finances, it’s best to make sure that you’re really working with someone who knows what he’s doing.

A good and reliable financial planning advisor must have a license that bears certification for helping his clients. When selecting a financial advisor, you need to go over your candidate’s credentials to make sure he’s the best qualified for the job.

Experience is also important. You want to work with a financial planning advisor who has been in service for a long time. This means that he is adept at providing financial advice. It also pays to inquire about the type of services that he offers and, of course, how much he charges for his services.

You want to know how the financial planner expects to be compensated. There are financial planners who charge a flat rate or an asset-based one for their services. Others do not charge separate fees and are typically compensated according to commissions through the sale of insurance and investment products. Others are compensated through both ways.

At IRA MD, we provide our clients both financial & tax planning, most financial advisors ask their clients to check their investment choices with their tax advisor, but the client almost never does! Many investors loose a large portion of their investment account because of bad financial advice that was not tax efficient resulting in a financial disaster.  After all, you want your finances handled by someone who can take care of them properly through financial and tax planning together.

Planning services: Why work with a tax and financial planner?

It would serve your best purposes if you hired a financial planning advisor who does both financial planning and tax planning. Investments and savings are governed by the most complex tax laws. The best way to get the most out of your investment and financial moves is by working with somebody who also understands the taxation side of these decisions.

Financial planners who know how to factor in the tax benefits of every investment decision can help individuals make the right choices. Enrolled Agents, for instance, can make for great financial planners because they can also help you with your taxes. They can help you prepare your income tax returns according to your investment  portfolio to ensure that you’re making the most out the tax shelter features of certain financial decisions such as investing in annuities or creating a retirement plan.

Financial planner, Financial advisor, financial planning company, financial planning firm LOS ANGELES COUNTY:

Acton - Agoura Hills - Alhambra - Altadena - Arcadia - Artesia - Avalon - Azusa - Baldwin Park - Bell - Bellflower - Beverly Hills - Burbank - Calabasas - Canoga Park - Canyon Country - Carson - Castaic - Cerritos - Chatsworth – City of Industry -Claremont - Compton - Covina - Culver City - Diamond Bar - Downey - Duarte - El Monte – South, - El Segundo - Encino - Gardena - Glendale - Granada Hills - Hacienda Heights – Harbor City - Hawaiian Gardens - Hawthorne - Hermosa Beach - Huntington Park - Inglewood - LA Los Angeles - La Canada Flintridge - La Crescenta - La Habra Heights - La Mirada - La Puente – La Verne - Lawndale – Long Beach – Lynwood - Malibu - Manhattan Beach - Marina del Rey - Maywood - Mission Hills - Monrovia - Montebello – Monterey Park - Montrose - Newhall - North Hills - North Hollywood - Northridge - Norwalk - Pacific Palisades – Pacoima - Palmdale - Palos Verdes - Panorama City - Paramount - Pasadena - Pearblossom - Pico Rivera - Playa del Rey – Playa Vista - Pomona - Rancho P.V. - Redondo Beach - Reseda - Rosemead - Rowland Heights - San Dimas - San Fernando – San Gabriel - San Marino - San Pedro - Santa Clarita - Santa Fe Springs - Santa Monica - Sherman Oaks - Sierra Madre – Signal Hill - South Gate - South Pasadena - Stevenson Ranch - Studio City - Sun Valley - Sunland - Sylmar - Tarzana – Temple City - Topanga - Torrance - Valencia - Valley Village - Van Nuys - Venice - Walnut - West Covina - West Hills – West Hollywood/LA Los Angeles - Westlake Village - Whittier - Wilmington - Winnetka - Woodland Hills .

Financial planner, Financial advisor, financial planning company, financial planning firm ORANGE COUNTY:

Aliso Viejo – Anaheim – Anaheim Hills – Balboa Island – Brea – Buena Park - Capistrano Beach – Corona del Mar – Costa Mesa – Cypress – Dana Point – Foothill Ranch - Fountain Valley – Fullerton – Garden Grove – Huntington Beach – Irvine – La Habra – La Palma - Ladera Ranch – Laguna Beach – Laguna Hills – Laguna Niguel – Laguna Woods – Lake Forest - Los Alamitos – Midway City – Mission Viejo – Newport Beach – Newport Coast – Orange – Placentia – Rancho St. Margarita – San Clemente – San Juan Capistrano – Santa Ana – Seal Beach – Silverado – Stanton – Sunset Beach – Surfside – Trabuco Canyon – Tustin – Villa Park – Westminster – Yorba Linda .

Financial planner, Financial advisor, financial planning company, financial planning firm RIVERSIDE COUNTY :

Aguanga – Anza – Banning – Beaumont – Blythe – Cabazon – Calimesa – Canyon Lake – Cathedral City – Coachella – Corona – Desert Center – Desert Hot Springs – Hemet – Homeland – Idyllwild, Indian Wells – Indio – La Quinta – Lake Elsinore – Mecca – Menifee – Mira Loma – Moreno Valley, Mountain Center – Murrieta – Norco – North Palm Springs – Nuevo, Palm Desert – Palm Springs, Perris – Rancho Mirage – Riverside – San Jacinto – Sun City – Temecula – Thermal - Thousand Palms – White Water – Wildomar – Winchester .

Financial planner, Financial advisor, financial planning company, financial planning firm SAN BERNARDINO COUNTY :

Adelanto – Angeles Oaks – Apple Valley – Barstow – Big Bear City – Big Bear Lake – Bloomington, Blue Jay – Cedar Glen – Cedarpines Park – Chino – Chino Hills – Colton – Crest Park – Crestline, Daggett – Fawnskin – Fontana – Forest Falls – Grand Terrace – Green Valley Lake – Helendale – Hesperia – Highlands – Hinkley – Joshua Tree – Lake Arrowhead – Landers – Loma Linda - Lucerne Valley – Lytle Creek – Mentone – Montclair – Morongo Valley – Needles - Newberry Springs – Ontario – Oro Grande – Phelan – Pinon Hills – Pioneertown - Rancho Cucamonga – Redlands – Redlands – Rialto – Rim Forest – Running Springs - San Bernardino – Sky Forest – Sugarloaf – Trona – Twentynine Palms – Twin Peaks – Upland, Victorville – Wrightwood – Yermo – Yucaipa – Yucca Valley .

Financial planner, Financial advisor, financial planning company, financial planning firm SAN DIEGO COUNTY :

Alpine – Bay Park – Bonita – Bonsall – Borrego Springs – Boulevard – Campo – Carlsbad - Chula Vista – Clairemont – College Grove – Coronado - Del Mar – Descanso – Downtown – Dulzura, East San Diego – El Cajon – Encanto – Encinitas – Escondido – Fallbrook – Grantville – Hillcrest, Imperial Beach – Jacumba – Jamul – Julian – La Jolla – La Mesa – Lakeside – Lemon Grove - Linda Vista – Logan Heights – Mission Village – National City – Normal Heights – North City West, North Park – Ocean Beach – Oceanside – Pacific Beach – Palomar Mtn – Paradise Hills - Pauma Valley – Pine Valley – Point Loma – Potrero – Poway – Ramona – Ranchita - Rancho Bernardo – Rancho Penasquitos – Rancho Santa Fe - San Carlos – San Diego - San Marcos – San Ysidro – Santa Ysabel – Santee – Scripps Ranch – Solana Beach - South San Diego – Spring Valley - Spring Valley – Tierrasanta – University City – Valley Center, Vista – Warner Springs .

Financial planner, Financial advisor, financial planning company, financial planning firm VENTURA COUNTY :

Bell Canyon – Camarillo – Fillmore – Moorpark – Newbury Park – Oak Park – Oak View – Ojai Oxnard – Piru – Port Hueneme – Santa Paula – Simi Valley – Somis – Thousand Oaks – Ventura Westlake Village .

 

 

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Saturday, July 31, 2010 | Posted in Promo

Estate Tax Planning

Estate Tax Planning

What is an estate tax? Estate tax is a tax on your estate assessed after your death. When you die, your assets and any properties you leave behind are part of your estate. The IRS taxes your estate before the assets can even be transferred to your heirs and loved ones. The tax bill will depend on when you dies and the size of your estate. In 2009 the exclusion amount is $3.5 million, in 2010 no estate taxes will be due, in 2011 estate taxes will be due on any estate worth more than $1 million. The tax rate ranges from 41% on estates over $1 million to as high as 60% on estates between $10 million to $17,184,000, estates over $17,184,000 would be taxed at 55%. That’s exactly why you need estate tax planning!

What are the goals of estate tax planning? There are 3 main reasons to seek estate planning:

1. To lower the value if your gross estate,

2. To maintain the state’s eligibility for as many credits as available,

3. To maximize the deductions your estate will be eligible for.

Consulting a competent estate tax planner can make sure that the strategies you use will actually work when your taxes are assessed to your estate.

Life insurance planning. Life insurance should be a vital and integral part of your estate tax planning. Many families with closely held businesses utilize life insurance proceeds to pay any gift or estate taxes due to the retransfer of the business so they won’t be forced to sell the business when one of the owners die.

Why is life insurance so important? The first thing your financial advisor will usually work on is to review your life insurance policies. This is so critical for  a number of reasons.

Estate Liquidity: all estates, regardless of their size, will need cash to pay any taxes, administrative expenses and any debt left by the decedent. Cash will also be much needed to keep the family business operating during probate. Life insurance quickly fills any cash gap!

Replacement of income: life insurance proceeds can fund a much needed income stream for your family after your death.

Wealth accumulation: life insurance can significantly increase your family’s wealth after your death.

Debt retirement: major debts such as mortgages and other debts can be retired using life insurance proceed so the family will not be forced to move out of their home or make unwise decisions as a result of your death.

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement LOS ANGELES COUNTY:

Acton - Agoura Hills - Alhambra - Altadena - Arcadia - Artesia - Avalon - Azusa - Baldwin Park - Bell - Bellflower - Beverly Hills - Burbank - Calabasas - Canoga Park - Canyon Country - Carson - Castaic - Cerritos - Chatsworth – City of Industry -Claremont - Compton - Covina - Culver City - Diamond Bar - Downey - Duarte - El Monte – South, - El Segundo - Encino - Gardena - Glendale - Granada Hills - Hacienda Heights – Harbor City - Hawaiian Gardens - Hawthorne - Hermosa Beach - Huntington Park - Inglewood - LA Los Angeles - La Canada Flintridge - La Crescenta - La Habra Heights - La Mirada - La Puente – La Verne - Lawndale – Long Beach – Lynwood - Malibu - Manhattan Beach - Marina del Rey - Maywood - Mission Hills - Monrovia - Montebello – Monterey Park - Montrose - Newhall - North Hills - North Hollywood - Northridge - Norwalk - Pacific Palisades – Pacoima - Palmdale - Palos Verdes - Panorama City - Paramount - Pasadena - Pearblossom - Pico Rivera - Playa del Rey – Playa Vista - Pomona - Rancho P.V. - Redondo Beach - Reseda - Rosemead - Rowland Heights - San Dimas - San Fernando – San Gabriel - San Marino - San Pedro - Santa Clarita - Santa Fe Springs - Santa Monica - Sherman Oaks - Sierra Madre – Signal Hill - South Gate - South Pasadena - Stevenson Ranch - Studio City - Sun Valley - Sunland - Sylmar - Tarzana – Temple City - Topanga - Torrance - Valencia - Valley Village - Van Nuys - Venice - Walnut - West Covina - West Hills – West Hollywood/LA Los Angeles - Westlake Village - Whittier - Wilmington - Winnetka - Woodland Hills .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement ORANGE COUNTY:

Aliso Viejo – Anaheim – Anaheim Hills – Balboa Island – Brea – Buena Park - Capistrano Beach – Corona del Mar – Costa Mesa – Cypress – Dana Point – Foothill Ranch - Fountain Valley – Fullerton – Garden Grove – Huntington Beach – Irvine – La Habra – La Palma - Ladera Ranch – Laguna Beach – Laguna Hills – Laguna Niguel – Laguna Woods – Lake Forest - Los Alamitos – Midway City – Mission Viejo – Newport Beach – Newport Coast – Orange – Placentia – Rancho St. Margarita – San Clemente – San Juan Capistrano – Santa Ana – Seal Beach – Silverado – Stanton – Sunset Beach – Surfside – Trabuco Canyon – Tustin – Villa Park – Westminster – Yorba Linda .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement RIVERSIDE COUNTY :

Aguanga – Anza – Banning – Beaumont – Blythe – Cabazon – Calimesa – Canyon Lake – Cathedral City – Coachella – Corona – Desert Center – Desert Hot Springs – Hemet – Homeland – Idyllwild, Indian Wells – Indio – La Quinta – Lake Elsinore – Mecca – Menifee – Mira Loma – Moreno Valley, Mountain Center – Murrieta – Norco – North Palm Springs – Nuevo, Palm Desert – Palm Springs, Perris – Rancho Mirage – Riverside – San Jacinto – Sun City – Temecula – Thermal - Thousand Palms – White Water – Wildomar – Winchester .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement SAN BERNARDINO COUNTY :

Adelanto – Angeles Oaks – Apple Valley – Barstow – Big Bear City – Big Bear Lake – Bloomington, Blue Jay – Cedar Glen – Cedarpines Park – Chino – Chino Hills – Colton – Crest Park – Crestline, Daggett – Fawnskin – Fontana – Forest Falls – Grand Terrace – Green Valley Lake – Helendale – Hesperia – Highlands – Hinkley – Joshua Tree – Lake Arrowhead – Landers – Loma Linda - Lucerne Valley – Lytle Creek – Mentone – Montclair – Morongo Valley – Needles - Newberry Springs – Ontario – Oro Grande – Phelan – Pinon Hills – Pioneertown - Rancho Cucamonga – Redlands – Redlands – Rialto – Rim Forest – Running Springs - San Bernardino – Sky Forest – Sugarloaf – Trona – Twentynine Palms – Twin Peaks – Upland, Victorville – Wrightwood – Yermo – Yucaipa – Yucca Valley .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement SAN DIEGO COUNTY :

Alpine – Bay Park – Bonita – Bonsall – Borrego Springs – Boulevard – Campo – Carlsbad - Chula Vista – Clairemont – College Grove – Coronado - Del Mar – Descanso – Downtown – Dulzura, East San Diego – El Cajon – Encanto – Encinitas – Escondido – Fallbrook – Grantville – Hillcrest, Imperial Beach – Jacumba – Jamul – Julian – La Jolla – La Mesa – Lakeside – Lemon Grove - Linda Vista – Logan Heights – Mission Village – National City – Normal Heights – North City West, North Park – Ocean Beach – Oceanside – Pacific Beach – Palomar Mtn – Paradise Hills - Pauma Valley – Pine Valley – Point Loma – Potrero – Poway – Ramona – Ranchita - Rancho Bernardo – Rancho Penasquitos – Rancho Santa Fe - San Carlos – San Diego - San Marcos – San Ysidro – Santa Ysabel – Santee – Scripps Ranch – Solana Beach - South San Diego – Spring Valley - Spring Valley – Tierrasanta – University City – Valley Center, Vista – Warner Springs .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement VENTURA COUNTY :

Bell Canyon – Camarillo – Fillmore – Moorpark – Newbury Park – Oak Park – Oak View – Ojai Oxnard – Piru – Port Hueneme – Santa Paula – Simi Valley – Somis – Thousand Oaks – Ventura Westlake Village .

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