Protecting & Preserving Wealth
Business & Economics Podcasts
In the Protecting & Preserving Wealth podcast, Bruce Hosler discusses and provides timely answers to important topics for our listeners: • Tax Reduction Strategies • Financial & Estate Planning • Investment Management • Retirement Planning • Insurance Strategies • Business Owner Exit-Planning Strategies • Current Events and their Market Effects We started the podcast because a number of clients have questions, and this is a way for us to give them a venue to listen to different answers on all the things they're concerned about today. First and foremost, foundationally, for most people, taxes are a very important thing. We always start with taxes and then we go from there and work on financial planning issues like retirement. Am I going to have enough? How am I going to leave my stuff to my legacy, to my kids and family? In estate planning, we include asset management because everybody wants to know where their money's invested and how safe and how protected it can be. And how can it grow in the face of this inflation that we're facing today. And finally, we use insurance strategies to make sure that when the moment of truth arrives, everything's okay for the family. Throughout this podcast, we're going to meet the Hosler team and how each of them plays a role in securing your financial future. Hosler Wealth Management, LLC can be reached in their Prescott office at (928) 778-7666, in their Scottsdale office at (480) 994-7342, or on the web at https://www.hoslerwm.com/. Securities and advisory services offered through Commonwealth Financial Network®, Member www.FINRA.org/www.SIPC.org, a Registered Investment Adviser. 700 S. Montezuma Street, Prescott, AZ 86303. Phone: 928.778.7666. The Financial Advisors associated with this Podcast may discuss and/or transact business only with residents in states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state. Please check Broker Check for a list of current registrations. Information presented on this site is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any product or security. Fixed insurance products and services are separate from and not offered through Commonwealth. Tax preparation and accounting services offered by Hosler Wealth Management, LLC are separate and unrelated to Commonwealth. Commonwealth Financial Network® does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation. Forward-looking commentary should not be misconstrued as investment or financial advice. The advisor associated with this podcast does not monitor for comments and any comments should be given directly to the office at the contact information specified. Investments are not FDIC- or NCUA-insured, are not guaranteed by a bank/financial institution, and are subject to risks, including possible loss of the principal invested. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding Federal or State tax penalties or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. The accuracy, completeness, and timeliness of the information contained in this podcast cannot be guaranteed. Accordingly, Hosler Wealth Management, LLC does not warranty, guarantee, or make any representations or assume any liability with regard to financial results based on the use of the information in this podcast. Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia Protecting & Preserving Wealth (podcast) is owned and produced by Hosler Wealth Management, LLC Prescott Office: 700 S Montezuma St Prescott, AZ 86303 Tel. (928) 778-7666 Scottsdale Office: 7400 E Pinnacle Peak Rd Suite #100 Scottsdale, AZ 85255 Tel. (480) 994-7342 #HoslerWealthManagement #Protecting&PreservingWealthPodcast #BruceHosler #ProtectingWealthPodcast © 2022 - 2023 Hosler Wealth Management, LLC, All Rights Reserved.
Location:
United States
Description:
In the Protecting & Preserving Wealth podcast, Bruce Hosler discusses and provides timely answers to important topics for our listeners: • Tax Reduction Strategies • Financial & Estate Planning • Investment Management • Retirement Planning • Insurance Strategies • Business Owner Exit-Planning Strategies • Current Events and their Market Effects We started the podcast because a number of clients have questions, and this is a way for us to give them a venue to listen to different answers on all the things they're concerned about today. First and foremost, foundationally, for most people, taxes are a very important thing. We always start with taxes and then we go from there and work on financial planning issues like retirement. Am I going to have enough? How am I going to leave my stuff to my legacy, to my kids and family? In estate planning, we include asset management because everybody wants to know where their money's invested and how safe and how protected it can be. And how can it grow in the face of this inflation that we're facing today. And finally, we use insurance strategies to make sure that when the moment of truth arrives, everything's okay for the family. Throughout this podcast, we're going to meet the Hosler team and how each of them plays a role in securing your financial future. Hosler Wealth Management, LLC can be reached in their Prescott office at (928) 778-7666, in their Scottsdale office at (480) 994-7342, or on the web at https://www.hoslerwm.com/. Securities and advisory services offered through Commonwealth Financial Network®, Member www.FINRA.org/www.SIPC.org, a Registered Investment Adviser. 700 S. Montezuma Street, Prescott, AZ 86303. Phone: 928.778.7666. The Financial Advisors associated with this Podcast may discuss and/or transact business only with residents in states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state. Please check Broker Check for a list of current registrations. Information presented on this site is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any product or security. Fixed insurance products and services are separate from and not offered through Commonwealth. Tax preparation and accounting services offered by Hosler Wealth Management, LLC are separate and unrelated to Commonwealth. Commonwealth Financial Network® does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation. Forward-looking commentary should not be misconstrued as investment or financial advice. The advisor associated with this podcast does not monitor for comments and any comments should be given directly to the office at the contact information specified. Investments are not FDIC- or NCUA-insured, are not guaranteed by a bank/financial institution, and are subject to risks, including possible loss of the principal invested. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding Federal or State tax penalties or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. The accuracy, completeness, and timeliness of the information contained in this podcast cannot be guaranteed. Accordingly, Hosler Wealth Management, LLC does not warranty, guarantee, or make any representations or assume any liability with regard to financial results based on the use of the information in this podcast. Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia Protecting & Preserving Wealth (podcast) is owned and produced by Hosler Wealth Management, LLC Prescott Office: 700 S Montezuma St Prescott, AZ 86303 Tel. (928) 778-7666 Scottsdale Office: 7400 E Pinnacle Peak Rd Suite #100 Scottsdale, AZ 85255 Tel. (480) 994-7342 #HoslerWealthManagement #Protecting&PreservingWealthPodcast #BruceHosler #ProtectingWealthPodcast © 2022 - 2023 Hosler Wealth Management, LLC, All Rights Reserved.
Language:
English
Website:
https://www.hoslerwm.com
Email:
info@hoslerwm.com
Episodes
What To Expect From Trump's Second Term - Part 1
12/18/2024
In the first part of our two-part series, we discuss the economic implications of Donald Trump's second presidential term, focusing on markets, regulation, energy, and inflation. With the election concluded, markets have responded positively to the reduced uncertainty, reflecting a renewed sense of clarity. We highlight how a Republican-controlled House and Senate could further enhance this stability. Drawing from Trump's first presidency, we examine his policies on deregulation, their stimulative effects on businesses, and their potential for deflationary outcomes, particularly in the energy and industrial sectors. With Trump advocating for increased oil and natural gas production, energy is a key focus. While this could lower fuel costs and stimulate economies based on distribution, we also note its potentially deflationary impact on the profits of oil companies. Natural gas could serve as a geopolitical tool, especially with proposals to export excess liquefied natural gas (LNG) to Europe. This increase in production would help reduce reliance on Russia and bolster U.S. influence abroad. Implementing these plans will depend on overcoming regulatory barriers and building necessary infrastructure, such as Gulf Coast LNG facilities.
We explain the concept of a "melt-up," in which rising asset prices are driven by the fear of missing out and the reallocation of sidelined capital. We explore the broader market implications, suggesting diversification as essential for navigating an environment where gains have been concentrated in a handful of tech giants—the "Magnificent Seven."
We also anticipate a market broadening in 2025, encouraging a shift towards other growth-promising sectors. Inflation remains a persistent concern, which we address from multiple angles. While increased oil production may help temper fuel costs, broader inflationary pressures, such as rising energy demand driven by AI infrastructure and housing shortages, pose significant challenges. Building adequate global infrastructure to support AI's growth requires long-term investment in utilities and materials like timber, which keeps costs high. Trump's policies aim to tackle inflation, but their success will depend on reducing government spending and addressing structural economic demands.
Don’t miss What To Expect From Trump's Second Term – Part 2, of this discussion where we delve deeper into these themes and address listeners' questions about the economic outlook for Trump's second term.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:15:37
IRA Changes with SECURE Act 2.0
12/4/2024
In this episode of Protecting and Preserving Wealth, we dive into the changes introduced by the SECURE Act 2.0, which has made significant modifications to IRA and trust regulations. Bruce Hosler and Alex Koury from Hosler Wealth Management explain the complexities and implications of these new regulations.
The conversation begins with Bruce explaining the updated requirements for trusts designated as IRA beneficiaries. Previously, the law mandated that documentation, including copies of the trust, be provided to IRA custodians by a set deadline after the IRA owner's death. Under SECURE Act 2.0, however, this requirement has been relaxed. Now, instead of submitting full documentation, the trustee only needs to provide a list of beneficiaries and the conditions of their entitlement. For trusts listed as IRA beneficiaries, documentation requirements have been removed entirely, simplifying the process significantly for trustees.
Alex follows by highlighting the second key update, which allows for separate accounts in trusts under certain conditions. Previously, IRA owners could not allocate separate accounts for multiple beneficiaries within a single trust. This limitation meant that multiple beneficiaries inheriting through a trust would share a single account. With the new rules, separate accounting is now permissible for see-through trusts under specific conditions, including those for beneficiaries with special needs. This change allows beneficiaries within a trust to inherit assets based on their own life expectancies, potentially stretching the distributions over a longer period.
Bruce then describes a third important change concerning Required Minimum Distributions (RMDs) for inherited IRAs within trusts. Previously, all beneficiaries of a trust would have to follow the distribution schedule based on the oldest beneficiary’s age, limiting flexibility. Now, the new regulations permit RMDs to be calculated separately for each individual beneficiary based on their own life expectancy, offering potential tax advantages and allowing younger beneficiaries more flexibility in managing distributions.
Throughout the episode, Bruce and Alex underscore the importance of consulting professionals to navigate these complex changes. While these new rules provide increased flexibility and potential tax benefits, they also demand a precise understanding of IRA and trust structures, especially for those with multiple beneficiaries. For anyone affected by these changes, they stress the value of working closely with wealth management professionals who understand both the regulatory landscape and individual client needs.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:12:26
Donor-Advised Funds 2024
11/20/2024
In this episode of Protecting and Preserving Wealth, we dive into donor-advised funds (DAFs) with Bruce and Jason Hosler from Hosler Wealth Management. With the end of 2024 approaching, DAFs are a timely and powerful tool for those who are charitably inclined, particularly those looking to manage tax liabilities while contributing to causes they care about.
Bruce explains that a donor-advised fund allows individuals to donate highly appreciated assets—like stocks, real estate, or even collectibles—without triggering capital gains taxes. For example, if you've held Apple stock for years and it’s gained significantly in value, rather than selling it and paying hefty taxes, you can donate that stock to a DAF. You receive a tax deduction based on the fair market value of the stock and can direct how those funds are distributed to charities over time, rather than in one lump sum. This flexibility is a major advantage for those who want to spread their giving across multiple years or charities.
Jason elaborates on the ability to involve family members in charitable giving through DAFs. Not only can children participate in distributing funds, but they can also continue to manage the fund after the donor has passed away, allowing the family’s philanthropic legacy to live on.
One major tax benefit highlighted is the ability to use a large donation to a DAF to offset income from Roth conversions. By contributing appreciated assets to a DAF, donors can take a significant deduction in the same year they perform a Roth conversion, helping to balance out the tax impact of converting pre-tax retirement funds into a Roth account.
We also on recent proposed regulations that could have restricted financial advisors from managing DAFs. Fortunately, due to industry pushback, it appears these regulations will be reconsidered, allowing advisors to continue assisting clients with their DAFs as part of a comprehensive financial plan.
This episode is essential listening for anyone looking to enhance their charitable giving while maximizing tax benefits, especially as the end of the year approaches. The team at Hosler Wealth Management emphasizes that donor-advised funds are not just about tax savings, but also about creating a long-lasting charitable legacy, involving family in the process, and supporting causes that matter.
Disclaimer: Generally, a donor-advised fund is a separately identified fund or account that is maintained and
operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it; however, the donor, or donor’s representative, retains advisory privileges with respect to the distribution of funds and the investment assets in the account. Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:11:19
2025 Medicare Changes
11/6/2024
In this episode of Protecting and Preserving Wealth, we dive into the upcoming changes to Medicare for 2025, focusing on critical issues that affect both current Medicare recipients and those who have yet to claim it. Bruce Hosler and Alex Koury from Hosler Wealth Management discuss Medicare enrollment, premium penalties, and significant updates coming in the next few years.
We start by addressing the complexities surrounding Medicare enrollment for individuals turning 65. Bruce highlights a key nuance: while it may sometimes be beneficial to stay on a company’s health plan, particularly if it's cheaper, there’s a catch. If you’re on a high-deductible health plan, it may not offer “credible coverage” for Medicare Part D, which covers prescription drugs. If you miss getting a Part D plan, you could face costly penalties later. The message here is to ensure you’re covered, even if you delay Medicare enrollment.
Alex introduces one of the biggest changes coming in 2025: a new cap on out-of-pocket Part D drug expenses, set at $2,000 annually. This reform eliminates the confusing "donut hole" many have faced in recent years, where prescription costs shift dramatically at certain thresholds. While this is a win for those with high prescription costs, Bruce and Alex emphasize the importance of regularly reviewing Medicare Advantage plans, as changes to drug formularies, premiums, and deductibles could affect out-of-pocket costs.
Bruce stresses that regular Medicare typically offers more flexibility in choosing specialists or medical facilities, like the Mayo Clinic, whereas Medicare Advantage plans can be restrictive. This is crucial for those considering future healthcare needs, as Medicare Advantage may not cover all specialists or provide access to top-tier care.
The episode wraps up by discussing the expansion of mental health services under Medicare, starting in 2025. More providers, including mental health counselors and addiction specialists, will be covered, reflecting a growing recognition of the importance of mental health care in retirement.
Overall, this episode is a must-listen for anyone navigating Medicare, providing clear guidance on how to avoid penalties, manage drug costs, and ensure access to the best care as these changes roll out.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:17:12
Your Kids Can't Convert Your IRA to a Roth
10/16/2024
It’s true, and in this episode of Protecting and Preserving Wealth, we focus on this crucial aspect of estate planning: converting your IRA to a Roth IRA before passing it to your children. We discuss the importance of making this conversion while you're alive because your children cannot convert an inherited IRA to a Roth IRA after your death. I will share an example of a client who could have benefitted from starting the conversion process earlier, explaining that even partial conversions would allow beneficiaries to enjoy tax-free growth from a Roth IRA.
Our conversation delves into the details of Roth's conversions, highlighting people's common misconceptions. Alex notes that there are no age or income restrictions on who can convert their IRA to a Roth. Even wealthy individuals like Bill Gates could convert if they wished. We discuss how spouses can inherit Roth IRAs with no required minimum distributions (RMDs), which allows them to let the account grow tax-free for the rest of their lives. Upon the spouse's death, the Roth IRA can pass to the children, who must distribute it within ten years, but still tax-free.
I break down the changes brought by the SECURE Act, which eliminated the "Stretch IRA" rule for most non-spousal beneficiaries, including adult children. Instead, inherited IRAs must now be fully distributed within ten years, which can create significant tax implications. I stress the importance of eligible designated beneficiaries—such as spouses, minor children, and disabled individuals — only they can stretch the IRA distributions over their lifetimes.
The key takeaway is simple: if you want your children to benefit from tax-free growth, you must convert your IRA to a Roth yourself. This will empower you with the sole responsibility to secure your children's financial future. Otherwise, they will be burdened with a traditional IRA and its tax obligations. With tax rates potentially rising in the future, converting now at lower rates could save your heirs from paying much higher taxes later. The message is clear: plan early and wisely to preserve wealth for future generations, providing a sense of relief and security.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:13:41
The Updated 10 Year IRA Rule for Beneficiaries
10/2/2024
In this episode of Protecting and Preserving Wealth, we delve into the updated 10-year IRA rule for beneficiaries, finalized by the IRS on July 18, 2024. Under the old Strech IRA rules, beneficiaries could stretch out Required Minimum Distributions (RMDs) over their lifetimes, creating a favorable tax strategy for passing on wealth. However, with the finalization of the SECURE Act regulations, the 10-year rule now applies, requiring beneficiaries to thoroughly distribute inherited IRAs within 10 years, limiting the potential for long-term legacy planning.
The rationale behind this change is to ensure the IRS receives its share of taxable income more quickly, as opposed to waiting decades under the stretch IRA framework. This shift in perspective also means that the IRS no longer views the passing of retirement savings to the next generation as something that should be drawn out over time.
We also explore the nuances of the required beginning date for RMDs, which has been extended to age 73. However, clients are advised to start taking distributions IN the year they turn 73 rather than waiting until the following year to avoid doubling their taxable income from this source. If an IRA owner dies before their RBD, no RMDs are required during the 10-year window. Still, the entire account must be distributed by the end of that period. Conversely, suppose the owner dies after their RBD. In that case, beneficiaries must continue taking RMDs based on their age, and any delays could result in substantial tax hits later on.
We stress the utmost importance of proactive planning, particularly for beneficiaries of large IRAs who may face significant tax burdens if they wait until the 10th year to withdraw funds. A million-dollar IRA, for example, could double in size, leading to a massive taxable distribution. To mitigate this, it’s often beneficial to take distributions gradually.
Finally, we touch on the benefits of Roth IRAs in this context: While Roth IRAs are also subject to the 10-year rule, they are not subject to RMDs during that time, allowing tax-free growth for the entire period. Beneficiaries should wait until the end of the 10 years to maximize tax-free withdrawals.
In conclusion, the new 10-year rule presents challenges, but with careful planning, including the strategic use of Roth IRAs, beneficiaries can still preserve wealth efficiently. For personalized advice, we encourage listeners to reach out to Hosler Wealth Management.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:12:19
Securing Your Estate: What To Do Now - Part 2
9/18/2024
In part two of our series with estate attorney Jon Linford, we dive into crucial estate planning considerations as we approach the 2026 sunset of the Tax Cuts and Jobs Act. The primary focus is on the significant changes to the estate tax exemption that will occur when the current law sunsets, reducing the exemption from $13.6 million per person to an estimated $7 million.
We discuss the implications of this change and the urgency for individuals to update their estate planning strategies. Jon Linford explains that the estate tax is a substantial 40% on amounts above the exemption, making it critical for those with sizable estates to act before the exemption decreases. With the upcoming elections and potential legislative changes, uncertainty looms over what the final tax laws will be. However, Linford emphasizes that waiting until 2025 to begin planning could be too late, as advanced strategies like gifting or setting up irrevocable trusts require significant time to implement.
Bruce highlights his recently published book, "Moving to Tax-Free," which introduces the concept of a two-generation tax-free legacy plan. This strategy involves using a revocable trust that becomes a dynasty trust upon the parents' passing, protecting assets from lawsuits, divorce, or bankruptcy while potentially providing tax-free income to beneficiaries. Jon Linford elaborates on the flexibility and protection these trusts offer, ensuring that the legacy left to children is secure and adaptable to various circumstances.
Estate planning is not one-size-fits-all. Every situation is unique, and having a professional team in place is essential to create a plan that fits individual needs. Jon Linford urges listeners to be proactive in their planning to avoid leaving a burden on their loved ones.
Contact info for Jon Linford and Morris Trust: https://morristrust.com/
Phoenix: 602-249-1328
Northern Arizona, 928-774-0333
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:15:53
Essential Estate Planning: Navigating Trusts, Taxes, and Digital Assets with Jon Linford - Part 1
9/4/2024
In part 1 of our Estate Planning Podcast Episodes, I welcome Jon Linford, a seasoned estate planning attorney from Morris Hall. We delve into the complexities and critical considerations of estate planning, a topic of utmost importance for anyone concerned about their financial future. Jon, who has been practicing law since 2011, transitioned from civil litigation to estate planning, driven by a passion for protecting clients' assets and ensuring smooth transitions for their estates.
The conversation centers on the benefits and nuances of setting up a living trust, particularly in Arizona. Jon emphasizes that while not everyone may need a living trust, it offers significant advantages, especially in avoiding probate—a costly, time-consuming, and public process. We discuss how a living trust simplifies real estate management, particularly when multiple beneficiaries are involved, as opposed to relying on an Arizona beneficiary deed, which can complicate matters when a property is left to multiple heirs.
Another critical topic is the proper titling of taxable investment accounts. Jon explains that by placing these accounts in a living trust, couples in Arizona can take advantage of the state's community property laws. These laws allow for a full step-up in basis upon the death of one spouse, potentially eliminating capital gains taxes on appreciated assets. Additionally, Jon highlights the importance of preparing for potential incapacity, noting that trusts can simplify financial management during such times, often more effectively than powers of attorney.
The discussion also covers the vital and critical role of healthcare documents in estate planning. Jon stresses the necessity of having a Durable Healthcare Power of Attorney and a Mental Healthcare Power of Attorney, which is particularly important in Arizona. These documents prevent the need for costly and public guardianship proceedings, ensuring that the appointed agent can make timely healthcare decisions. Jon also shares insights on the challenges posed by outdated powers of attorney and the importance of keeping these documents current!
We also discuss the growing importance of addressing digital assets in estate planning as the digital age advances. Jon advises clients to ensure their legal documents grant access to digital accounts and assets and to consider using password managers or other secure methods to share access with trustees. We touch on the complexities of managing cryptocurrency in estate plans, highlighting the need for careful planning to ensure heirs can access these assets.
This episode provides valuable insights into the essential elements of estate planning, offering practical advice on how to protect assets and ensure a smooth transfer of wealth. Jon Linford's expertise combined with my 27+ years as a wealth manager offer listeners a clear understanding of why careful estate planning is crucial, especially in today's complex financial landscape.
Contact info for Jon Linford and Morris Trust: https://morristrust.com/
Phoenix: 602-249-1328 Northern Arizona: 928-774-0333
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:25:13
2024 Mid-Year Market Review Part 2
8/7/2024
In this episode of "Protecting and Preserving Wealth," we continue our discussion from our previous episode, starting with interest rates and the Federal Reserve's actions. Bruce notes that the 10-year treasury rate has risen to 4.44%, highlighting the market's control over this rate rather than the Federal Reserve. Despite predictions of a recession, we don't foresee it occurring this year. The Federal Reserve faces pressure to lower interest rates, which impacts the real estate market significantly. Housing prices have remained stable despite fewer sales, contributing to inflation concerns.
Jason points out the delicate balance the Fed must maintain between controlling inflation and supporting economic growth. Interest rates are expected to remain high for an extended period, gradually decreasing over the next few years. We discuss the historical context of interest rates, noting that current rates, though high in the short term, are still relatively low compared to past decades.
The conversation shifts to public versus private equity. Bruce explains that there are fewer than 6,000 publicly listed companies, while private companies number around 6 million. Investing in private equity offers opportunities for growth and diversification, often independent of public market fluctuations. Jason adds that private equity investments can provide significant returns due to their unique growth cycles and management strategies.
We also address the impact of the Federal Reserve's interest rate hikes on the stock market. Despite higher rates, the market has performed well historically during such cycles. As the Fed lowers rates in response to economic conditions, businesses will need to adapt to maintain profitability.
The discussion touches on the current employment landscape, with tech companies laying off employees and shifting work-from-home policies. This belt-tightening reflects broader economic concerns and impacts consumer confidence, which remains lower than pre-COVID levels overall. Political affiliation also influences consumer sentiment, with conservatives generally more pessimistic about the economy at present. This does track with historical data: the party NOT in the White House tends to have a more pessimistic view of the economy.
We conclude by emphasizing the importance of diversifying investments and the potential of private equity. Bruce remains optimistic about market prospects, especially with the ongoing advancements in AI technology. He encourages listeners to consider these factors in their financial planning.
Disclosure: Investing in alternative investments or private equity may not be suitable for all investors and involves special risks, such as risk associated with leveraging the investment, utilizing complex financial derivatives, adverse market forces, regulatory and tax code changes, and illiquidity. Investors in this asset class are usually required to commit significant capital for years, which is why access to such investments is generally limited to institutions and individuals with high net worth. There is no assurance that the investment objective will be attained.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:14:22
2024 Mid-Year Market Review Part 1
7/17/2024
Today, we are taking a midyear look at the financial markets for 2024, focusing on key metrics and trends influencing our investments and financial decisions.
As of our recording date of July 2nd, the S&P 500 has impressively risen over 15%, currently standing at 5,495. Bruce explains that the price-to-earnings (PE) ratio is at 20.99, indicating a slightly higher but not alarming level compared to historical averages. Jason adds that a pullback is possible despite the market’s strong performance, though they remain optimistic about the market’s upward trend through the year’s end.
We delve into the resilience of major companies within the S&P 500, such as Nvidia, Apple, and Microsoft, collectively representing a significant portion of the index. Jason discusses how these companies’ consistent earnings and product demands are likely to sustain their growth, despite potential short-term pullbacks, providing a sense of stability to our investments.
Regarding annual returns and intra-year declines, Jason notes that typical market behavior includes pullbacks, even in strong years. This year’s largest drawdown is 5%, but overall, the market is up 15%. I emphasize the potential benefits of long-term investment strategies, suggesting that market volatility can be advantageous if investments are not sold prematurely, instilling a sense of optimism in our investment approach.
On consumer finances, Jason highlights signs of financial stress due to inflation, particularly for lower-income households. Despite this, household debt service ratios remain historically low at about 9.9%, indicating relative financial health compared to the past four decades.
However, savings rates are under 4%, a concerning drop from previous years. We stress the need for prioritizing savings as part of financial planning, noting that inflation and higher living costs are squeezing household budgets. By prioritizing savings, we can empower ourselves to navigate these financial challenges more effectively.
Inflation remains a significant issue, with ongoing impacts on various sectors, especially those sensitive to interest rates like real estate and finance. I point out that inflation is proving challenging to control despite the Federal Reserve’s high interest rates. Oil prices, for instance, are still rising, complicating efforts to stabilize the economy.
Interest rates influence investment strategies, shifting preferences within portfolios. Jason notes that higher interest rates can benefit fixed-income investments while still posing challenges for businesses and consumers. Companies are grappling with higher costs and interest payments, which affect profit margins and necessitate selective investment strategies.
As we wrap up part one of our midyear review, it’s clear that inflation and interest rates remain pivotal topics. We’ll continue this discussion in part two, examining additional financial trends and providing more insights for navigating the rest of 2024.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:15:32
Moving to Tax-Free in 8 Steps
7/3/2024
In this episode of Protecting and Preserving Wealth,' we dive into Bruce Hosler's article, "Moving to Tax-Free: Eight Steps You Can Take for Success." We are joined by Bruce Hosler and Alex Koury, who walk us through these crucial steps to achieve a tax-free retirement.
We begin with the importance of sourcing and engaging trusted advisors. A team consisting of a tax planner, financial planner, estate planning attorney, and wealth advisor is essential. These professionals help navigate the complexities of current and future tax laws, ensuring a comprehensive understanding of one's financial situation.
Next, we discuss the necessity of preparing a tax plan and calculating the ideal IRA to Roth IRA conversion amount. This step involves strategic planning to balance paying taxes now to reduce future tax liabilities. Factors such as age and the size of one's IRA play a significant role in determining the conversion amount.
For those required to take minimum distributions (RMDs), Bruce emphasizes taking these distributions early in the year to avoid complications with Roth conversions. This ensures a smooth transition and avoids IRS issues.
Making the actual Roth conversion is critical. Unlike IRA contributions, Roth conversions must be completed within the calendar year. Opening a Roth IRA, if one doesn't exist, and initiating the conversion process well before year-end is crucial to avoid last-minute issues.
We then explore the Life Insurance Retirement Plan (LIRP), which provides tax-free benefits and long-term care coverage. Each spouse should have a LIRP to ensure financial flexibility and tax-free withdrawals, especially important for estate planning and tax efficiency.
When paying taxes on Roth conversions, individuals under 59.5 years of age should use funds outside their IRA to avoid penalties. Those over 59.5 can pay directly from their IRA, which can be advantageous in managing tax obligations.
Creating a dynamic financial plan with the help of professionals is the seventh step. Unlike static plans, dynamic plans adjust to life changes and financial developments, much like a GPS providing real-time directions (as opposed to the old Rand McNally atlas). This adaptability is key to maintaining a tax-free retirement strategy.
Finally, the eighth step underscores the importance of a qualified wealth manager to implement and maintain the tax-free strategy. Professional guidance ensures that the plan is executed correctly, avoiding costly mistakes and unintended tax consequences.
Overall, these eight steps provide a structured approach to achieving a tax-free retirement, emphasizing the importance of professional guidance and strategic planning.
To view the whitepaper in its entirety, please visit Moving to Tax-Free: Eight Steps You Can Take for Success!
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:17:04
The Roth IRA is no longer the ideal wealth transfer vehicle
6/19/2024
In this episode of 'Protecting and Preserving Wealth,' we delve into the significant changes to the Roth Stretch IRA, resulting from the SECURE Act, that came into effect on January 1, 2020. This Act drastically altered the landscape, as it now requires inherited IRAs to be fully withdrawn within ten years, eliminating the lifetime benefit that was once the key feature of the Roth Stretch IRA.
I explain that the Roth Stretch IRA was an ideal tool for wealth transfer, providing a tax-free, lifelong income stream for beneficiaries. With the new 10-year limit, the tax-free advantage diminishes significantly. Jason emphasizes that the rising national debt and projected increases in tax rates make the loss of this tool even more impactful, given the likely increase in taxes in the future.
To address this challenge, Jason and I also introduce the concept of a two-generation tax-free legacy plan. This strategy involves leaving a portion of one's legacy as a tax-free income stream for the children's lives while also protecting these assets from creditors, lawsuits, and divorces. This plan integrates various financial disciplines, including retirement income planning, tax planning, and risk management.
We highlight that this plan is particularly beneficial for families with more savings than they need for retirement and want to ensure their children are financially secure over their lifetimes. It provides a way to manage wealth transfer in a tax-efficient and protected manner, addressing both the financial needs and the potential behavioral tendencies of the heirs.
The conversation also touches on the psychological aspect of delayed gratification, likening it to the Stanford marshmallow experiment. The two-generation plan enforces delayed gratification by structuring the inheritance in a way that promotes long-term financial stability for the heirs rather than providing a lump sum that could be mismanaged.
In conclusion, Hosler Wealth Management offers valuable insights into adjusting estate planning strategies in light of legislative changes. They invite listeners to explore the two-generation tax-free legacy plan and to contact Hosler Wealth Management for personalized advice.
To view the whitepaper in its entirety, please visit The Roth IRA is no longer the ideal wealth transfer vehicle.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:11:43
Stock Market History During Presidential Election Cycles
5/29/2024
This episode of "Protecting and Preserving Wealth" discusses the stock market's behavior during the presidential election years and its implications for investors. As the November 5th, 2024, presidential election approaches, many investors are concerned about market performance under different administrations and the potential for a market crash if the "wrong" president is elected.
Around $5 trillion is currently sitting in cash due to concerns over inflation and global uncertainties, not just the election. However, historically, the stock market has shown resilience and performed well during election years, with an average return of 11.6% since 1926. This data should instill confidence in the market's ability to weather political storms.
Alex explains that while the first half of an election year is typically weak, the second half often sees improvement. However, 2024 has been an exception, with a strong start driven by factors beyond the election. Despite potential volatility, we remain optimistic about the year's overall performance. This optimism should inspire a positive outlook in our audience.
We all agree that despite political tensions, investors must focus on long-term fundamentals rather than short-term market reactions.
The conversation moves to why investors should consider allocating cash now. I explain that money market funds typically hold more cash during election years due to investor caution, but this strategy can lead to missed opportunities. With the S&P and NASDAQ up significantly in 2024, staying in cash could mean missing out on market gains.
When asked how Hosler Wealth Management positions client portfolios, Alex describes our pro-growth stance with a balanced approach that includes hedging strategies to protect against downside risks; I advise retirees to ensure their portfolios are inflation-adjusted and to draw income from fixed-income investments to avoid market volatility.
In conclusion, diversification and sticking to a well-crafted financial plan are crucial. Investors should remain focused and not be swayed by political noise. For personalized advice, Bruce invites listeners to contact Hosler Wealth Management.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:16:02
Protecting and Preserving Wealth Explained
5/15/2024
In this episode of "Protecting and Preserving Wealth," Jason Hosler and I discuss the firm's commitment to protecting their clients' financial futures. I begin by underlining the company's longstanding dedication to protecting and maintaining money during global volatility, something many overlook.
Delving into my new book, "Moving to Tax-Free," I underscore the practicality of tax protection in wealth preservation. Taxes, a significant lifelong expense for many, can be effectively managed to safeguard financial resources. Jason introduces the 'Magnificent 7'—a group of high-performing tech stock investment strategies—highlighting its potential to prevent missing out on market gains, a practical approach to wealth preservation.
The discussion delves deeper into the concept of 'Sequence of Return' risk, which Jason explains as the danger of experiencing significant market losses early in retirement, potentially jeopardizing the financial stability of a retiree's later years. We will describe our "PASS" system (Portfolio Asset Sequence System), which structures clients' portfolios to mitigate risks associated with market downturns during critical withdrawal phases.
Another focal point is inflation's role as the "silent killer" of the standard of living. Key strategies are discussed to combat its long-term erosive effects through diversified investment in growth-oriented assets. I will also touch on the importance of proper estate planning, including wills, trusts, and accurate beneficiary designations, to avoid future financial complications and ensure clients' wishes are fulfilled.
We conclude by addressing the overarching goal of preserving wealth, not just for the clients themselves but also for future generations. We cannot emphasize enough the need to stay updated with changing tax laws and wealth transfer strategies, particularly in light of legislative changes like the Secure Act and Secure Act 2.0.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:11:43
BONUS - David McKnight On The Power of Zero in 2024
4/17/2024
Bruce Hosler welcomes a special guest for today’s episode. We discuss the critical state of the U.S. national debt and its implications for future tax rates with David McKnight, author of “The Power of Zero.” McKnight highlights the dramatic increase in national debt from $5 trillion in 1999 to an expected $54 trillion by 2033. This surge is attributed to unfunded wars, healthcare programs, and economic bailouts. The conversation underscores the lack of governmental action to address the unfunded obligations for Social Security, Medicare, and Medicaid, which pose a significant threat to the country’s fiscal stability.
McKnight points out the alarming debt-to-GDP ratio, warning that exceeding a 175% threshold could lead to a financial collapse from which recovery would be impossible. The discussion also highlights the rising interest rates and their impact on the servicing costs of the national debt, underlining the urgent need for substantial revenue sources to manage these expenses alongside government operations. These costs will almost assuredly mean higher taxes, making it crucial for investors to act now.
The conversation shifts to tax planning strategies, critiquing the financial industry’s general lack of preparedness to help individuals navigate toward tax-efficient retirement. McKnight categorizes financial advisors based on their approach to tax planning, advocating for a comprehensive strategy that includes Roth conversions and life insurance retirement plans to achieve a tax-free income in retirement.
David criticizes popular financial gurus for their inadequate guidance on tax planning and their general dismissal of specific financial products that could benefit retirees. He introduces his upcoming book, “The Guru Gap,” which exposes the shortcomings in the advice these gurus provide and offers a path to better financial planning.
Finally, the discussion addresses the impending challenges with the Medicare Trust Fund and the necessity for significant tax increases to cover the looming fiscal shortfalls. McKnight emphasizes the importance of proactive financial planning to mitigate the impact of higher taxes and ensure financial stability in retirement.
Throughout this episode, Bruce and David discuss several strategies investors can use to protect themselves and move toward a tax-free retirement.
To purchase a copy of Bruce's new book, MOVING TO TAX-FREE, go to https://movingtotaxfree.com.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:23:48
MOVING TO TAX-FREE™ Bruce's New Book
4/3/2024
In this episode of "Protecting and Preserving Wealth," we dive into the significance of moving financial assets to tax-free vehicles, a topic Bruce Hosler has extensively explored in his new book, "Moving to Tax-Free." Bruce, alongside Jason Hosler and host Jon Jag Gay, discusses the critical nature of planning for a tax-free retirement, emphasizing the importance of strategic financial planning to mitigate future tax burdens.
Bruce opens the conversation by highlighting the central question of whether tax rates in the United States will increase, decrease, or remain the same over the next decade. This question is pivotal as it directs individuals on how to plan their financial futures. He argues that due to mathematical and scientific reasons, rather than political, tax rates are likely to double in the next ten years. This prediction is supported by the impending insolvency of Medicare and Social Security trust funds, the national debt crisis exacerbated by inflation and higher interest rates, and the comparison of U.S. tax rates to those of other developed countries.
The discussion then shifts to the common but misguided question many people ask about minimizing taxes in the current year, rather than focusing on reducing lifetime tax liabilities. Bruce and Jason emphasize the importance of annual tax planning and making informed decisions about moving assets to tax-free accounts, such as Roth IRAs and 401(k)s. They argue that paying taxes now, at current lower rates, can help to prevent paying higher taxes in the future.
The conversation also touches on the reluctance of the financial advisory industry to promote moving to tax-free accounts due to potential conflicts of interest, as advisors' fees are often based on the assets under management, which would decrease as clients pay taxes on conversions to tax-free accounts.
Bruce offers practical advice for listeners to start their journey toward a tax-free retirement, including stopping contributions to traditional tax-deferred accounts and starting to contribute to Roth accounts. He also addresses concerns about the government potentially taxing Roth accounts in the future, arguing that historical precedents suggest that existing accounts would likely be grandfathered in, should any changes occur.
Finally, Bruce introduces innovative legacy planning strategies detailed in the book - a plan he calls "The Two Generation Tax-Free Legacy Plan" - designed to provide a tax-free income stream for children and protect assets from potential legal and financial threats.
For more info on Bruce's book and how to purchase it, you can visit https://movingtotaxfree.com/
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:14:41
Refinance Your Retirement
3/20/2024
We're unpacking a novel concept today: refinancing your retirement. Amidst soaring interest rates similar to those of the early 2000s, we explore why now might be the golden hour to lock in these rates for your retirement plans.
First, I break it down, highlighting how current high rates offer a rare chance to secure high-income payouts from annuities and their living benefits. We haven't seen an environment like this in about 15 years. This environment presents a unique opportunity to reassess where your money is parked and possibly guarantee income like never before.
Alex adds to the conversation, underlining the urgency of the situation. Thanks to these rates, he emphasizes the efficiency of buying more income with less money. Before rates drop, he points out the importance of acting now to maximize your investment's income potential. This strategy isn't just about immediate gains but also about long-term financial planning and making your money work smarter.
Who should consider this strategy? Pretty much everyone, from those in their 40s to those in their 70s. The idea is to reposition your assets to benefit from the current high-interest rates, ensuring a portion of your retirement is secured with these higher living benefits. This could potentially lead to a significantly more comfortable retirement, a retirement you've always dreamed of.
The conversation shifts to the current financial landscape, where $6 trillion sits in money market funds, earning around 5%. Alex points out the temporary nature of these earnings and the importance of being proactive in reallocating assets before rates fall. We recommend looking into bonds, dividend-paying stocks, and even real estate as potential areas for reallocating cash, emphasizing the importance of locking in rates now before they drop.
We also touch on the broader investment opportunities in 2024, including private equity and undervalued stocks, showcasing the diverse avenues for investment beyond traditional stocks and bonds. We share insights into Hosler Wealth Management's approach to retirement planning, emphasizing the importance of dynamic financial planning and the innovative financial instruments available today that differ significantly from the past.
It's essential to have a flexible, dynamic retirement plan that adapts to changing financial landscapes. We encourage listeners to keep an open mind about retirement planning and highlight the diverse tools and strategies available to ensure a secure and enjoyable retirement.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:17:09
Retirement Questions When Selling Your Business
3/6/2024
Today we are covering retirement planning for business owners during and after the sale of their business. Bruce Hosler and Alex Koury are both Certified Exit Planning Advisors (CEPA®), and our conversation revolves around ensuring business owners have enough funds to retire comfortably after selling their business. This is a significant concern since many owners have their wealth tied up in their businesses.
Bruce shares a success story about clients who, after 40 years in business, sold their land for a substantial sum, adding a comfortable cushion to their already solid retirement plan. This story highlights the importance of strategic planning and understanding the value of business assets beyond just the operational aspects.
On the flip side, Alex brings up a cautionary tale. He talks about a family who sold their business for two million dollars but had to pay over $500,000 in taxes, a scenario they weren't prepared for. This example underscores the importance of thorough tax planning and understanding the financial implications of a business sale.
We then shift our focus to the importance of having a retirement income plan. Bruce emphasizes the need for realistic financial planning, especially for baby boomers nearing retirement. He points out the risks of inadequate planning, which can lead to a reduced lifestyle or, worse, running out of money prematurely. He also touches on the impact of external factors like health, regulatory changes, and economic shifts on businesses and retirement plans.
Alex highlights common pitfalls in business sales, such as not having the right advisory team or overestimating the business's value. He stresses the importance of a comprehensive exit plan, considering not just the financial aspects but also the human element, including the impact on employees and family.
Bruce elaborates on the concept of an exit plan, emphasizing the need for a well-structured approach that enhances business value and prepares for unforeseen circumstances. He mentions the "Five Ds" - divorce, disagreements, disability, distress, and death - that can unexpectedly force a business sale.
As we wrap up, Alex and Bruce reiterate the importance of early and thorough planning, ideally starting ten years before a planned exit. A skilled team of professionals is necessary to guide the process and ensure all aspects, from financial planning to succession.
For business owners looking for guidance, Hosler Wealth Management offers expertise in financial planning and business exit strategies. They can be reached through their website or their offices in Prescott and Scottsdale (contact info below). This episode serves as a crucial reminder for business owners to plan meticulously for their retirement, considering the many variables that can affect their post-sale life.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:15:58
Tax Questions When Exit Planning For Your Business
2/21/2024
Today, Bruce and Jason Hosler of Hosler Wealth Management dive into the complexities of exit planning and tax issues related to selling a business. We kick off discussing the importance of understanding a business's structure when preparing for a sale. The structure, whether it's a sole proprietorship, partnership, LLC, S-corporation, or C-corporation, significantly impacts tax implications. We note that some business owners even change their structure before a sale for better tax treatment.
There are differences between selling business assets and selling stock. Selling assets involves transferring individual business components, while selling stock means transferring ownership of the entire entity. This choice affects tax payments and liabilities. Asset sales might allow for a step-up in basis, reducing capital gains taxes, whereas stock sales can involve fewer transactional steps.
We then explore how to determine a business's fair market value before a sale. It's industry-dependent, often involving multiples of EBITDA or gross revenues. It's important to engage a professional firm for valuation, considering factors like hiring family members or owning vehicles through the business.
Next, we delve into capital gains tax rates and their application to business sales. These rates vary based on income, with different thresholds affecting the percentage of capital gains tax. We discuss the benefits of installment sales in managing these taxes, spreading out capital gain recognition over several years.
The net investment income tax (NIIT) also comes up, a 3.8% tax on certain investment incomes, including capital gains, applicable above specific income thresholds. We touch on Section 1202, beneficial for C-corporation stockholders, potentially excluding a significant portion of gains from taxes.
We cover the concept of installment sales, useful for business sellers who don't need all the money upfront. This can keep capital gains tax at a lower rate. We also discuss deducting business expenses related to the sale, like valuation, legal fees, and brokerage commissions.
Depreciation recapture is another critical topic. When businesses sell assets like real estate or equipment, the IRS requires recapturing previously claimed depreciation, often taxed at 25%. This can be a surprise for many business owners.
State-level taxes are crucial too, as they vary widely. For instance, California has specific capital gains taxes and withholding requirements for real estate sales. We also explore selling a business to an employee stock ownership plan (ESOP), which can be tax-advantageous for both the seller and the employees.
Section 1031 exchanges are relevant for real estate assets within a business sale, allowing deferral of capital gains tax when exchanging like-kind properties. We stress the importance of due diligence in identifying potential tax liabilities before a sale and the role of careful planning in addressing employee benefits during the sale process.
Finally, we discuss the factors influencing the form of payment for a business sale, such as cash, stock, or a combination. The choice can significantly impact the sale price and the seller's financial needs.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:20:14
2024 Election Year Market Outlook
2/7/2024
Today we have a comprehensive discussion with Bruce Hosler and Alex Koury of Hosler Wealth Management about the market outlook for 2024. We're now into a Presidential election year, and Alex addresses the common concern about the impact of presidential elections on market performance. Historically, the market has averaged an 11.6% return during election years, regardless of the winning party. This trend suggests that the political landscape may not be as influential on market performance as often perceived.
But Bruce cautions against expecting a smooth market ride in 2024, despite the historical data. He highlights the unpredictability of the market, especially considering the significant influence of the 'Magnificent Seven' stocks. These stocks have driven a large portion of the S&P 500's growth but also pose a risk of correction. This underscores the need for investor preparedness for potential market volatility.
While the S&P 500 saw a 24% increase in 2023, again, this was largely due to the 'Magnificent Seven.' For a similar rally in 2024, a broader range of stocks would need to contribute to market gains. He also emphasizes the importance of being aware of market risks, including the potential impacts of Federal Reserve policies and global events.
Bruce Hosler then shifts to other investment opportunities beyond the 'Magnificent Seven,' suggesting a need for diversification. He discusses the impact of Federal Reserve policies on interest rates and the implications for various sectors, including small caps and companies affected by interest rate changes. He also stresses the importance of a diversified portfolio and a long-term investment strategy, using examples like Microsoft and Costco to illustrate potential opportunities outside the dominant stocks.
The conversation then turns to broader economic considerations. Bruce Hosler discusses the housing market, consumer spending, and employment trends, suggesting cautious optimism for the economy in 2024. He notes the potential for a mild recession but does not foresee a severe downturn unless triggered by significant geopolitical events.
Finally, we emphasize the importance of strategic investment planning. Investors should assess their financial goals and risk tolerance and not miss out on potential market opportunities due to fear or uncertainty. Have a financial plan that aligns with your investment timeline and risk profile.
For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/
Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.
For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/
Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia
Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Duration:00:15:13