The advanced estate and tax
planning team is responsible for providing advice to clients in need of
sophisticated financial planning. This group assists the high net worth clients
at Hantz Financial Services® to balance their tax planning, estate
planning, and strategic investment concerns. The firm has strong alliances with
Certified Public Accountants and estate planning attorneys to provide the most
comprehensive advice for the client.
Team members have earned advanced financial designations such as Chartered Financial Consultant
(ChFC), Chartered Life Underwriter (CLU), CFP® professional, and CERTIFIED FINANCIAL PLANNERTM certificant.
Specific areas addressed within the advanced plans:
Roth IRA Conversion Analysis:
Provided the client meets IRS requirements for conversion from a traditional
IRA to a Roth IRA, the Roth IRA can be a tremendous planning tool. The
traditional IRA has mandatory distribution requirements, future personal income
taxation, and income taxation to heirs. The Roth IRA can accumulate throughout
retirement without mandatory distribution, grow free from personal income
taxes, and be left to heirs income tax free. However, whether to pay tax today
to convert to a Roth IRA versus the impact of tax-deferred growth must be
calculated individually; accounting for timeframe, tax brackets, and spending
needs.
Estate tax calculations and solutions:
In order to plan for current and future estate taxes a client must be familiar
with their estate valuation, tax rates, and the use of legal documents. A plan
can then be developed through revocable and irrevocable trusts to reduce the
impact of taxes on their estate. Other methods utilized are annual and lifetime
gifting, Family Limited Partnerships, and Grantor Retained Annuity Trusts.
Needs-based analysis for accumulation goals, education, and
retirement:
Timelines documenting fixed income and expenses must be calculated to determine
whether a client is on track to meet goals. After this determination is met, a
client can focus on potential estate growth and strategies for tax avoidance.
IRA and qualified retirement plan distribution techniques:
In the past, the general rule was to defer IRA's and qualified retirement plans
until income was necessary or the IRS required distribution was mandated. With
the advent of the Roth IRA and the massive increase of capital in pre-tax
retirement plans many strategies have been implemented to remove dollars today
at potentially lower tax rates than those in the future.
Investment strategies for retirement plan rollover accounts:
One of the most important decisions for a client leaving their present job is
how to maintain or reinvest retirement funds. There are IRS rules on how funds
should be placed into IRA accounts to avoid current taxation. There are often
rules from previous employers to be addressed. Using the latest asset
allocation technology, we will help to determine an efficient portfolio
designed to optimize return given a client's risk tolerance.
Charitable giving strategies:
Charitable trusts and charitable beneficiary agreements can reduce estate
taxes, increase income to contributors, and reduce personal income taxes. The
advanced team has a thorough understanding of charitable planning options and
how they integrate to an overall financial plan.
Income distribution plans from investments:
Most clients have grown assets using various investment strategies over several
decades. However, very few clients have created income from those investments
for monthly lifestyle expenses. Our team has experience creating income
portfolios to address these needs. Without using proper assumptions,
individuals could negatively impact their retirement in the future by using too
many assets in early years or conversely could be sacrificing their lifestyle
in the first decade of retirement due to the unknown of future needs.
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