Blog

March 23, 2018

Tax Preparation Versus Tax Planning: Do you have a Tax-Efficient Retirement Income Plan?

It’s that time of year where taxes are top-of-mind for all Americans. While April 17 is an important deadline and many are familiar with the steps involved for tax preparation and filing, what steps are being taken to reduce your tax burden the other 364 days each year? Many retirees are shocked to discover that the impact of income taxes on their retirement could be significant. While W2 wages may come to a stop, Social Security will likely be at least partially taxable and withdrawals taken from tax-deferred retirement accounts can quickly add up. Especially once reaching the age of 70.5, when required minimum distributions will continue to increase each year forcing you to take taxable income, possibly even pushing you into a new, higher tax bracket. You have likely heard about the importance of diversification and asset allocation as investment fundamentals. In retirement, asset location and tax diversification can be equally significant factors. There are a number of different account types or “locations” ranging from taxable, tax-deferred and tax-free to choose from, along with investment vehicles with tax-advantaged benefits. By diversifying your investments into a variety of accounts based on tax-status, you can begin to control and mitigate when taxable events will occur to be in your favor based on current circumstances and tax laws. Retirement planning is a distinct specialty that requires expertise to create a comprehensive strategy for where, how and when to take money from your savings for income. The bottom line, a retirement plan with no tax plan may be one of the most significant and irreversible mistakes you can make. After all, you may recoup losses with investments in the market. The same is not true for costly tax-planning mistakes. Have retirement questions you’d like to see answered in future columns? Email Info@CRARetire.com. Christian Cordoba, CFP®, RFC®, CFS, is a CERTIFIED FINANCIAL PLANNERTM, Master Elite IRA Advisor and founder of California Retirement Advisors.        
March 23, 2018

IRA Contributions: Eligibility and Deadlines

As their tax-filing deadline approaches, many taxpayers ensure that they contribute to their IRAs so as to receive the related tax benefits. If you are doing so, it is important to ensure you satisfy the contribution eligibility requirements in order to avoid IRS-assessed penalties. Here are some important reminders to help you to meet these requirements. Read More
March 23, 2018

5 Retirement Mistakes Small-Business Owners Make

As a business owner, you face unique challenges and opportunities when building your financial future. This special report provides insights on mistakes to avoid and steps to take for building the retirement you desire-while managing your myriad responsibilities. Read More
March 19, 2018

A Look Back – March 19, 2018

Markets were up on Friday, but domestic stocks lost ground for the week as political turmoil and potential trade wars weighed on investors’ minds.i The S&P 500 dropped 1.24%, the Dow gave back 1.54%, and the NASDAQ decreased 1.04%.ii International stocks in the MSCI EAFE barely avoided losses with a 0.13% gain.iii Read More
March 19, 2018

5 Inherited IRA Mistakes

Let’s be honest. Stress doesn’t help us make smart financial decisions. I think it’s fair to say when we are inheriting money it’s often a busy, hectic and stressful time in our lives. Here are a few mistakes you want to avoid if you inherit an IRA or other retirement accounts from a loved one. Don’t let these five mistakes destroy your loved one’s legacy... Read More
March 19, 2018

2018 Retirement Plan Contribution Limits

Maxing out your retirement account contributions can be a smart financial move not only to help reduce your tax bill, but also to ensure you’re setting aside enough money for the future.  But do you know how much you’re allowed to contribute? Contribution limits can vary greatly depending on the type of retirement account(s) you have.  Some accounts also have catch-up contribution options available for those who are nearing retirement. To find out how much money you can contribute to your retirement account(s), click below to download “2018 Retirement Plan Contribution Limits.” Have additional questions about funding your retirement account(s) or making 2017 contributions before Tax Day?  Contact our office today! Read More
March 19, 2018

Giving Back with Planned Philanthropy

Success in life is about more than amassing wealth. It is about the conscious legacy you leave behind for your loved ones, community and society. We created this special report to share some of the financial and social benefits of a proactive approach to philanthropy. Read More
March 12, 2018

Goldilocks Returns – March 12, 2018

Domestic stocks leapt ahead last week as the latest jobs report inspired renewed confidence in our economic standing. The S&P 500 added 3.54%, and the Dow gained 3.25%.i The NASDAQ erased its losses from February’s market correction to hit a new record close while growing 4.17% for the week.ii International stocks in the MSCI EAFE increased by 1.79%.iii Read More
March 12, 2018

Modern Family Conundrum

Have you recently lost your spouse and inherited an IRA?  In the midst of grieving, determining how you want to handle your new assets may be the last thing on your mind, but there are important decisions to be made.  You have a choice to either remain the beneficiary of the account or execute a spousal rollover, and there are several factors to consider before you make any moves. To find out more about each of these options, click below to download “The Modern Family Conundrum.” For more information, contact our office to schedule a time for a visit. Read More
March 12, 2018

An Old Tax Scam–With a Troubling New Twist

We know they are out there. They are the criminals who call and claim that you'll be arrested if you don't pay up on an old tax debt that you don't actually owe. But the official-sounding calls can be scary... Read More