Protecting & Preserving Wealth

https://amzn.to/4msRo2kIn this episode of Protecting and Preserving Wealth, we dive into key updates from the Ed Slott Master Elite IRA Advisors Conference, focusing on critical tax changes and planning pitfalls that impact retirees and IRA holders. Bruce Hosler shares his takeaways after nearly two decades of attending these elite sessions. We break down three essential areas that our listeners need to understand heading into the 2025 tax season. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k ⏱️Chapters & What You'll Learn (00:00) Intro & Updates Overview (00:39) New 1099-R Reporting for QCDs (06:52) Why Form 8606 Matters for IRA Basis (09:48) The One-Rollover-Per-Year Rule Explained (12:48) Catastrophic Mistakes to Avoid (17:07) Closing Thoughts & How to Get Help We start with updates to Form 1099-R, particularly how it now includes specific codes to identify Qualified Charitable Distributions (QCDs). For years, these weren’t clearly reported, and many taxpayers were unknowingly taxed on charitable gifts from their IRAs. Now, codes like 7, 4, and K will help distinguish between standard distributions, inherited IRAs, and alternative asset IRAs. We emphasize the importance of notifying your tax professional even with these new codes, and we recommend completing QCDs early in the year to avoid confusion with required minimum distributions (RMDs). Next, we highlight the critical role of IRS Form 8606 in tracking the basis in IRAs, especially when nondeductible contributions are involved. Filing this form annually ensures that when distributions occur, the IRS has a current record of your cost basis. Without this, you could be taxed on amounts that should be non-taxable. Even if no contributions or conversions are made, we advise clients to file this form to maintain a consistent paper trail and protect their tax-free amounts. Lastly, we cover the “one rollover per year” rule. This rule applies on a rolling 12-month basis—not a calendar year—and breaking it can trigger catastrophic tax consequences, including making an entire IRA taxable. We stress that rollovers should always be handled via trustee-to-trustee transfers. Bruce cites a costly real-world example from the Ed Slott conference where a misunderstanding led to a client facing taxation on a $3 million IRA. We also clarify which types of transfers are exempt from the one-per-year rule, such as 401(k) to IRA rollovers and Roth conversions. You should always avoid costly mistakes by working with experienced professionals, and ensure your documentation is current. For those seeking guidance, we’re available in both Prescott and Scottsdale, and online at hoslerwm.com. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ Contact Our Team: https://hoslerwm.com/contact-us/ 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/ Copyright © 2022-2025 Hosler Wealth Management | All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode of Protecting and Preserving Wealth, we explore the most compelling investment themes we see emerging for 2025. Together, we identify ten major growth areas—what Bruce calls “green shoots”—that signal new and transformative opportunities across sectors like crypto, AI, energy, and biotech. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k ⏱️Chapters & What You'll Learn (00:00) – Intro & Overview (00:36) – Crypto & Blockchain (04:18) – Artificial Intelligence & Energy Demand (10:08) – Robotics & Rare Earths (14:37) – Tech Leaders & Futuristic Innovations (19:24) – Private Equity, Small Caps & Biotech We start with the seismic shift in crypto regulation. With Congress formally legalizing cryptocurrency and integrating it into ETFs, crypto is moving from the “wild west” into mainstream finance. Blockchain's impact is broader than just currency—it’s improving transaction verification, influencing trade settlement times, and applying to diverse industries from AI to video editing. We then shift into AI, where demand for electricity is becoming a bottleneck. Companies like Meta and Microsoft are securing direct energy contracts to meet data center needs. AI isn’t just about smarter software—it requires immense infrastructure: chips, cooling, and power. We highlight opportunities in chipmakers like Nvidia and AMD, and also the buildout of data centers here in Arizona. This buildout feeds into energy infrastructure, where we see big gains in natural gas, nuclear, and companies like GE Vernova and SMR (Small Modular Reactors) powering future data needs. Robotics is our next theme, with Tesla potentially evolving from a car company to a robotics leader with its Optimus project. This convergence of AI and robotics has global competition, especially from China, and massive implications for labor, logistics, and manufacturing. From there, we examine the need for rare earth elements. With global tensions high and countries protecting their resources, we discuss U.S.-based mining opportunities, spurred in part by Department of Defense investments. These materials are essential for electric vehicles, data centers, and defense technology. We address whether the “Magnificent Seven” tech companies are overvalued. Our view: as long as earnings justify valuation, these giants like Nvidia, Meta, and Amazon remain vital drivers of innovation and should not be overlooked. Futuristic transport is becoming real with all-electric vertical takeoff and landing (EVTOL) aircraft gaining traction in the Middle East. These technologies could reshape how goods and people move in the near future. Similarly, space tech is rapidly commercializing, thanks largely to SpaceX, where launch costs have plummeted. This opens up investment in satellite internet, low-orbit manufacturing, and even space tourism. Private equity and debt also stand out, as companies stay private longer. Accredited investors can now access high-return opportunities not tied to public markets, offering valuable diversification. And with a potential rate cut coming, we’re watching small-cap companies. When rates drop, smaller firms benefit from cheaper capital and tend to outperform, especially those with strong earnings and low debt. Finally, we explore biotech, where innovation continues despite political pressure. From GLP drugs to DNA-level manipulation, we expect a wave of new treatments and products coming to market before the decade ends. As always, our team is tracking these themes, evaluating them with caution, and looking for opportunities that align with client goals. We believe 2025 could be a transformative year for forward-thinking investors. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ Contact Our Team: https://hoslerwm.com/contact-us/ Or call them in their Prescott office at (928) 778-7666 or...

In this episode of Protecting & Preserving Wealth, we continue our discussion on the financial and tax implications of selling real estate, shifting focus from primary residences to second homes and rental properties. We open by clarifying the IRS guidelines for determining a primary versus secondary home. The key factor is where the majority of the year is spent, and that’s verified through documents like driver’s licenses and utility bills. This distinction matters because the Section 121 tax exclusion—$250,000 for individuals and $500,000 for married couples—is only available for primary residences. Secondary homes don't qualify, meaning capital gains from their sale are fully taxable. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://www.amazon.com/dp/B0CY2XP8CD ⏱️ Chapters & What You'll Learn (00:00) Introduction and Welcome (00:31) Defining a Second Home (01:57) Tax Implications of Selling a Second Home (03:53) Understanding Long-Term vs Short-Term Capital Gains (09:47) Selling a Rental Property (18:40) Conclusion and Contact Information We explain how the cost basis for a second home is determined, including the original purchase price and improvements, excluding maintenance and repairs. If owned for more than a year, the property qualifies for long-term capital gains treatment, with rates of 0%, 15%, or 20%, depending on taxable income. We stress the importance of tax planning here—timing the sale or utilizing installment sales could result in substantial tax savings, especially for those with minimal other taxable income. We then transition to rental properties, which come with their own set of tax considerations. These properties allow for depreciation deductions, which can significantly offset rental income. However, we warn about depreciation recapture when the property is sold. We also emphasize the importance of proper legal structuring—typically using an LLC for each rental property, ideally owned collectively by a revocable living trust—to shield personal assets from liability. We explain benefits of 1031 exchanges for deferring taxes when selling rental properties, and how community property laws in states like Arizona can offer a full step-up in basis upon the death of a spouse, potentially eliminating capital gains tax altogether. For those tired of active property management, we introduce Delaware Statutory Trusts as a way to earn passive income while avoiding common landlord headaches. We can't get into detail on DST's in this podcast, but we are happy to chat with you about them offline. We close with a caution about trying to game the system. The IRS can and does verify how properties are used, whether that's primary vs secondary residence OR secondary residence vs rental property. The IRS has done this through looking at cell tower data and utility usage. It’s critical to properly classify your real estate from the start to avoid future tax trouble. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ Contact Our Team: https://hoslerwm.com/contact-us/ 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/ Copyright © 2022-2025 Hosler Wealth Management | All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode of Protecting and Preserving Wealth, we kick off a two-part series on the real estate sale process by focusing on selling a primary or principal residence. We explore what homeowners need to consider—from title and tax implications to planning strategies and insurance coverage—with insights from Bruce and Jason Hosler of Hosler Wealth Management. We start by breaking down title options: from revocable living trusts to joint tenancy and tenants in common. Bruce emphasizes that adding children to a home’s title to avoid probate is a common mistake. Instead, in community property states like Arizona, it's almost always better to hold the property inside a revocable living trust to preserve tax benefits and simplify estate transitions. Jason walks us through how cost basis is calculated, emphasizing that purchase price and capital improvements count, but maintenance like landscaping does not. That leads into a discussion about the Section 121 exclusion, which allows homeowners to exclude up to $250,000 (single) or $500,000 (married) of capital gains if they've lived in the home for two of the past five years. We highlight a major “gotcha” related to this: widowed spouses may only retain the $500,000 exclusion for up to two years after their spouse's death, so timing the sale becomes critical. We dive into the step-up in basis rules. In community property states, a surviving spouse can receive a full step-up in basis, which can eliminate capital gains if the property is sold after one spouse passes. This makes proper titling even more essential. When asked whether to pay off the home before selling, Bruce says it depends on the interest rate—holding onto a low rate may be more beneficial. On reverse mortgages, Jason calls them a “Swiss Army knife” of financial tools, valuable depending on the individual’s cash flow and retirement strategy, with proceeds being tax-free. We also talk about the trade-offs of keeping a home as a rental. If it becomes a rental for more than two years, the Section 121 exclusion is lost. Jason reminds us of the "four Ts" of landlording: taxes, tenants, toilets, and trash, helping clients decide if rental property is worth the hassle and opportunity cost. Jon shares an example of a friend who decided it wasn't. Insurance is another key area. Bruce stresses the importance of umbrella liability insurance—inexpensive coverage that offers added protection. Jason warns that homeowner’s insurance is increasingly hard to obtain in fire- or flood-prone areas, making due diligence crucial when buying or selling. Finally, we clarify that 1031 exchanges don’t apply to primary residences, only investment properties, and we wrap up by assessing the current market. It’s still a buyer’s market as of April 2025, but rate reductions could shift that dynamic. In the next episode, we’ll cover selling second homes and rental properties. 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 © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this final installment of our estate and legacy planning series, we dive deep into the two-generation tax-free legacy plan—a strategy Bruce designed to help families with $2 million or more in investable assets leave behind a financially secure, tax-efficient inheritance. Bruce and Jason Hosler explore how this plan offers both control and protection, allowing parents to benefit from tax-free income during retirement while also providing long-term support for their children. We begin with the foundational question: what do we believe about the future of taxes in the U.S.? Bruce argues, supported by projections around expiring tax cuts and entitlement program shortfalls, that taxes are likely to rise. This belief is central to the value of preemptively planning a tax-free legacy, especially given looming tax consequences associated with the SECURE Act and SECURE Act 2.0, which force IRA and Roth distributions within ten years after death—potentially hitting heirs during their highest earning years. The heart of the two-generation plan is to carve off a portion—say 25% to 40%—of an estate and structure it to produce a tax-free income stream for life. This stream benefits parents during retirement and then shifts to their children, who receive an asset-protected, steady income instead of a lump sum. This structure helps prevent heirs from losing inherited wealth to taxes, divorces, bankruptcies, or lawsuits. It also ensures that a safety net is in place, one that could potentially keep children from ever being financially desperate. Importantly, this strategy is flexible and isn't an all-or-nothing approach. The legacy plan is dialed up or down depending on a family's goals, financial position, and desired impact. It isn't suitable for everyone—especially those without substantial assets or those indifferent to the future financial burden on their heirs. But for families who care about asset protection, legacy continuity, and tax efficiency, it's a planning path worth considering. We wrap by encouraging anyone interested to consult a professional. Bruce and Jason emphasize that true legacy planning requires coordination between legal, tax, and investment disciplines. For families who want to ensure their wealth benefits multiple generations without being eroded by taxes or liabilities, this approach offers clarity and control. Bruce explains the concept in his book, which came out last year, Moving to Tax Free: 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 © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode of Protecting and Preserving Wealth, we continue our estate and legacy planning series by focusing on charitable giving and charitable legacies. Charitable giving occurs during one’s lifetime, while a charitable legacy ensures that assets are left to charitable organizations after death. Understanding the right tools and strategies can maximize benefits for both the donor and the recipient. We begin with Qualified Charitable Distributions (QCDs), which allow individuals over 70½ to donate directly from their IRA to a charity, up to $108,000 in 2025. This strategy provides a tax-free way to fulfill charitable goals while reducing taxable income. A new provision under SECURE Act 2.0 allows a one-time $54,000 QCD into a charitable remainder trust (CRT) or a charitable gift annuity, offering an income stream while ultimately benefiting a charity. This change provides flexibility for individuals seeking both income and charitable impact. Next, we explain donor-advised funds (DAFs), a powerful tool for managing charitable giving. By contributing cash, securities, or other assets to a DAF, donors receive an immediate tax deduction while maintaining control over future distributions to charities. This approach allows individuals to donate highly appreciated assets without triggering capital gains taxes and can be used to engage family members in philanthropic decision-making. Importantly, DAFs do not require annual distributions, allowing funds to grow tax-free for future charitable giving. When planning a charitable legacy, we emphasize the importance of proper beneficiary designations. IRAs and tax-deferred annuities are ideal for charitable bequests, as charities receive the full value tax-free. Naming a charity as a contingent beneficiary allows a surviving spouse to disclaim assets if they are financially secure, ensuring tax-efficient wealth transfer. We also discuss common mistakes in charitable estate planning. Many attorneys simply include charitable gifts in a trust without considering tax-efficient alternatives. Instead, leaving tax-deferred accounts like IRAs to charities ensures maximum tax savings, while preserving tax-advantaged assets for heirs. Additionally, donating highly appreciated assets before death allows donors to secure a tax deduction and avoid capital gains taxes. Conversely, failing to sell depreciated assets before death results in a lost tax loss, underscoring the importance of strategic loss harvesting. Finally, we stress the need for personalized planning. Charitable giving strategies vary based on individual circumstances, and tools like charitable remainder trusts (CRTs) and donor-advised funds can be tailored to meet both philanthropic and financial goals. Seeking professional advice ensures that charitable intentions are met in the most tax-efficient way. In our next episode, we’ll explore the Two-Generation Tax-Free Legacy Plan, a strategy for preserving wealth across generations. To learn more or discuss your estate planning needs, visit Hosler Wealth Management or contact us directly. 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 © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode of Protecting and Preserving Wealth, we continue our estate and legacy planning series, focusing on strategies to leave assets in a tax-advantaged or tax-free manner. Bruce Hosler, Alex Koury, and Jason Hosler from Hosler Wealth Management join Jon Gay to break down key approaches to optimizing wealth transfer while minimizing tax burdens. We start by distinguishing between tax-advantaged and tax-free assets. Tax-advantaged assets, like traditional retirement accounts (IRAs, 401(k)s, and 403(b)s), allow for tax-deferred growth but are taxed as ordinary income upon withdrawal. This can result in higher tax rates, especially when withdrawals are made in retirement. On the other hand, tax-free assets—such as Roth IRAs—offer significant advantages by eliminating federal, state, and capital gains taxes on withdrawals. However, certain investments, like municipal bonds, can impact Social Security taxation despite their tax-free status. One way to convert taxable assets into tax-advantaged assets is through tax-deferred annuities. These allow for capital gains deferral, meaning taxes are only due upon withdrawal. Moreover, these tax-deferred annuities can continue to provide tax advantages even after the original account holder passes away. To transition tax-deferred accounts into tax-free assets, Roth conversions are a powerful strategy. By paying taxes upfront, investors secure tax-free growth and withdrawals for themselves and their heirs. Additionally, life insurance retirement plans (LIRPs) provide another alternative, allowing for tax-free income during retirement and tax-free wealth transfer to beneficiaries. We also cover the importance of the step-up in basis, a tax rule that can eliminate capital gains taxes for heirs on inherited assets, particularly real estate. Real estate investors can also take advantage of 1031 exchanges to defer capital gains taxes while maintaining income-generating properties. Given Arizona's community property laws, properly titling assets in a revocable living trust ensures maximum tax benefits for surviving spouses and heirs. Beneficiary designations are another crucial element of estate planning. Regardless of what is stated in a will, financial institutions usually honor the beneficiary designations on accounts like IRAs, 401(k)s, annuities, and life insurance policies. Properly structuring these designations, as well as using pay-on-death (POD) and transfer-on-death (TOD) instructions for bank and brokerage accounts, helps avoid probate and ensures a smooth wealth transfer. We wrap up by emphasizing the importance of reviewing estate plans regularly to ensure they align with current tax laws and personal financial goals. If you're looking to optimize your estate and legacy planning, reach out to the Hosler Wealth Management team for expert guidance. Stay tuned for part five, where we’ll discuss charitable giving and legacy planning strategies. *A life insurance retirement plan (LIRP) is a strategy that uses the cash value of a permanent life insurance policy to hold retirement assets. The policy must be properly structured and managed to avoid becoming modified endowment contracts; distributions from modified endowment contracts are subject to tax rules and penalties similar to non-qualified annuities. In addition, withdrawals, and loans plus interest on them, lower both the cash value and the death benefit. 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 © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast...

In this episode of Protecting and Preserving Wealth, we move to topic 3 in our estate planning series by tackling a critical but often overlooked topic—how to properly title assets. Previously, we discussed beneficiary designations, but today, we dive into why the way assets are titled can significantly impact taxes, probate, and the distribution of wealth. One common issue we see is with married couples who assume their assets should always be jointly owned. While joint ownership works in many cases, certain assets, like IRAs, must remain in an individual's name. Instead of joint ownership, the key is to designate the spouse as the primary beneficiary, allowing them to roll over the IRA upon death while maintaining tax benefits. Another crucial factor is understanding community property laws. Arizona, along with eight other states, offers unique tax advantages through community property rules. If a couple holds a property as joint tenants instead of in a community property trust, they may only receive a partial step-up in basis upon the first spouse’s passing. This could lead to significant capital gains taxes if the surviving spouse sells the home. By properly titling the property, they can eliminate unnecessary tax burdens. We also discuss the importance of utilizing trusts. While some attorneys argue that trusts are unnecessary for estates below the federal estate tax threshold ($13.6 million per person), we believe that avoiding probate and ensuring a full step-up in cost basis outweighs any minor costs involved in setting up a trust. Trusts also provide a streamlined way to manage multiple financial accounts and ensure consistent distribution to heirs. Improper titling is a common mistake, particularly with joint brokerage accounts. If a highly appreciated investment portfolio is held jointly, the surviving spouse only receives a half step-up in basis rather than a full step-up. This can be avoided by transferring the account into a trust. We frequently guide clients through these changes, ensuring their financial plans align with their long-term goals. Of course, not all assets belong in a trust. Cars, for example, are best kept in an individual’s name to simplify insurance and liability issues. For day-to-day checking accounts, adding a "payable on death" (POD) or "transfer on death" (TOD) designation is often sufficient. Even the DMV now allows for beneficiary designations on vehicle titles, making it easier to pass on assets without probate. On the other hand, primary residences, rental properties, business ownership interests, and taxable investment accounts should generally be titled in a trust. This ensures that upon death, these assets pass seamlessly to heirs without court intervention. For business owners, holding an LLC in a trust is an effective way to protect the business’s value and avoid unnecessary taxes for the surviving spouse. Personal assets like collectibles, gold, firearms, and artwork can also be included in a trust. If these items hold significant value, listing them in trust schedules ensures they go to the intended beneficiaries without legal complications. We even assist clients in setting up specialized trusts, such as gun trusts, for properly transferring firearms. Ultimately, proper titling and estate planning can prevent costly mistakes and unnecessary stress for heirs. If you're unsure whether your assets are structured correctly, it’s never too late to make adjustments. At Hosler Wealth Management, we work closely with attorneys to ensure trusts are properly funded and structured for maximum benefit. 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...

In this episode of Protecting and Preserving Wealth, we continue our discussion on estate and legacy planning, focusing on the critical role of beneficiary designations. Beneficiary forms take precedence over wills and trusts for certain assets, including retirement accounts like IRAs, 401(k)s, 403(b)s, life insurance policies, annuities, and pensions. Bank and brokerage accounts also allow for direct beneficiary designations through Pay on Death (POD) and Transfer on Death (TOD) forms. In Arizona, real estate can even have designated beneficiaries through Arizona beneficiary deeds. We emphasize the importance of keeping these designations up to date. Failing to update them can lead to unintended outcomes, such as an ex-spouse inheriting an account despite a revised will or trust. Some exceptions exist, like certain IRA agreements that automatically replace an ex-spouse with a current spouse, but generally, financial institutions will follow the beneficiary form as written. We also discuss cascading beneficiary designations, where assets flow through a primary, contingent, and tertiary beneficiary structure. This setup allows for flexibility, such as a surviving spouse disclaiming an inheritance in favor of children or grandchildren, ensuring assets go where they are most needed. This approach also allows for strategic tax planning, particularly when including charitable organizations. A charitable IRA, for example, enables tax-efficient giving by directing pre-tax retirement funds to a nonprofit, avoiding income taxes on those assets. Additionally, we cover why individuals, rather than trusts, should generally be named as beneficiaries of retirement accounts. Trusts often force distributions on a shorter timeline, increasing tax burdens. However, naming a trust as a tertiary beneficiary can serve as a backup plan to prevent probate if all primary and contingent beneficiaries pass away simultaneously. This strategy avoids delays, public scrutiny, and creditor claims against the estate. Finally, we stress the importance of working with knowledgeable advisors to structure beneficiary designations properly. Not all custodians or advisors offer the level of detail needed to maximize financial and tax benefits. To ensure proper planning, we encourage regular reviews of beneficiary designations and consultation with qualified professionals. For those wanting more guidance, Hosler Wealth Management can be reached at hoslerwm.com or by phone at (928) 778-7666 in Prescott and (480) 994-7342 in Scottsdale. 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 © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In the second installment of our estate and legacy planning series, we highlight the critical role of beneficiary designations in securing and managing wealth. Estate planning goes beyond wills and trusts; proper beneficiary designations on accounts like IRAs, 401(k)s, annuities, and life insurance determine where assets go upon death, often bypassing wills and trusts altogether. I emphasize the nuances of Individual Retirement Accounts (IRAs), particularly their "individual" nature and the implications of beneficiary designations. Primary beneficiaries, usually spouses, receive unique advantages, such as the ability to roll over an IRA into their name and defer Required Minimum Distributions (RMDs) based on their age. Contingent beneficiaries, often children or grandchildren, are next in line, while tertiary beneficiaries—commonly overlooked—provide an additional layer of security to ensure assets avoid probate in unexpected situations. We also discuss the potential pitfalls of outdated designations, such as an ex-spouse unintentionally remaining a beneficiary. Jason, Alex, and I stress the importance of regularly reviewing and updating these designations to reflect life changes, like marriages, divorces, or the addition of new family members. Naming individual beneficiaries is generally preferable to designating trusts, as it simplifies the transfer process and helps avoid complications that could lead to unintended tax consequences. A key focus is the tax implications of inherited IRAs. Under the Secure Act 2.0, non-spousal beneficiaries must withdraw all funds from an inherited IRA within ten years, which may occur during their highest earning years, resulting in significant tax burdens. Converting traditional IRAs to Roth IRAs during the owner's lifetime can help mitigate this, ensuring heirs receive funds tax-free. However, beneficiaries cannot convert inherited IRAs, highlighting the importance of proactive planning. We conclude with advice on leaving IRAs to charities as part of tertiary beneficiary planning. This strategy allows families to avoid taxes on inherited IRA funds while supporting philanthropic goals. Regularly reviewing beneficiary designations is essential, as it allows adjustments without the need to amend trusts or incur additional costs. With thoughtful planning, beneficiary designations can ensure wealth is preserved and transferred efficiently, aligning with the owner's wishes and minimizing potential tax burdens. Disclosure: Ed Slott's Elite IRA Advisor Group is a private IRA study group of professional financial advisors. 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 © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this Protecting and Preserving Wealth episode, we’re kicking off our six-part series on estate and legacy planning. We dive into the critical steps of preparing for the Great Wealth Transfer—an estimated $84 trillion passing to the next generation by 2045. Of that, $72 trillion will go to heirs, making proper planning essential. We talk about the importance of being ready for this transition. Will your heirs be prepared to manage your wealth? Will it be protected or lost to taxes, poor decisions, or unforeseen circumstances like inflation or bad marriages? These are tough questions but answering them now ensures your legacy is preserved. One tool we highlight is the revocable living trust, which is especially useful in community property states like Arizona. It avoids probate, simplifies financial management, and offers significant tax advantages. For example, it can protect a surviving spouse from hefty capital gains taxes by ensuring a step-up in basis for both halves of jointly owned property. Plus, it lets a successor trustee manage your finances if you’re incapacitated. Of course, a Trust isn’t the whole story. We also explain why a will is crucial, especially for naming guardians for minor children. Other must-have documents include Durable Financial and Healthcare Powers of Attorney to manage your affairs if you can’t manage them, a Living Will to clear your end-of-life wishes, and Arizona’s unique Mental Healthcare Power of Attorney. This last one is significant for situations involving dementia or other mental health challenges, ensuring your family can advocate for you without needing costly court intervention. We wrap up by discussing how to title your assets correctly to avoid probate and protect them from unnecessary risks. Whether you put real estate into your trust or use Arizona beneficiary deeds, these decisions are key to preserving your estate. Mistakes like retitling retirement accounts into a trust can lead to unintended taxes, so getting professional advice is critical. Download our Estate Legacy & Beneficiary Planning document, which is included for your benefit and to help you follow us in this six-part series. This series is relevant to everyone over 18 and emphasizes the importance of being prepared. In our next episode, we’ll discuss beneficiary designations, but feel free to reach out with any questions in the meantime. 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 © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode of Protecting and Preserving Wealth, we dive into managing the challenges posed by concentrated stock positions. When individuals hold significant investments in a single stock, such as Apple, Nvidia, or Tesla, they may face considerable capital gains taxes and financial risk. To address these concerns, we explore a range of tax-efficient diversification strategies to help reduce risk and optimize income without incurring immediate tax consequences. We begin by discussing the benefits of community property laws in states like Arizona, where spouses can receive a step-up in cost basis upon one spouse's death, reducing the tax burden on appreciated assets. Next, we examine exchange funds as an option for diversifying concentrated stock holdings. By contributing a stock position to an exchange fund, investors can gain exposure to a diversified portfolio, such as the S&P 500, without triggering capital gains taxes. After a set period, the investor can retrieve their original stock or maintain diversified holdings. This strategy, however, requires the investor to meet "Qualified Purchaser" qualifications, which includes having a net worth of $5 million. While exchange funds provide diversification, they will not protect against broad market declines. Investors must remain in a fund for at least seven years before redeeming shares, and those who leave prematurely may face penalties and only receive their original shares back. For broader tax efficiency, we discuss direct indexing, which enables investors to hold individual stocks within an index, like the S&P 500, and harvest tax losses from underperforming stocks to offset gains from concentrated positions. Over time, this allows for a gradual reduction of concentrated positions without significant tax liabilities. Similarly, unified managed accounts (UMAs) combine individual stocks, ETFs, and mutual funds in a diversified, tax-efficient portfolio, enabling strategic loss harvesting and active management. Charitable giving also serves as an impactful tool for managing appreciated stock positions. Donating stock to a *donor-advised fund, for instance, allows investors to receive a tax deduction on the appreciated value, which they can use to offset other income. Additionally, charitable lead and remainder trusts provide income benefits and deductions, with the added impact of supporting charities over time. By implementing these strategies, investors can navigate the complexities of concentrated stock positions, achieving tax efficiency and diversification. For more personalized advice, listeners are encouraged to reach out to Hosler Wealth Management for guidance tailored to their unique financial circumstances. * 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. This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation. Diversification does not assure a profit or protect against loss in declining markets, and diversification cannot guarantee that any objective or goal will be achieved. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at...

In this episode, we continue our discussion on the economic implications of a second Trump administration, focusing on interest rates, tax policy, government efficiency, and immigration’s impact on the economy. With Bruce Hosler, Alex Koury, and Jason Hosler, we explore how these factors might shape financial decisions for individuals and businesses. We begin by analyzing the Federal Reserve's approach to interest rates amidst strong consumer spending and near full employment. While a potential rate cut may occur in December 2024, higher rates could persist in early 2025, impacting sectors like housing. The conversation touches on how existing low mortgage rates dissuade homeowners from selling, contributing to reduced housing supply and elevated home prices. On tax policy, we examine the possible extension of the Tax Cuts and Jobs Act through reconciliation. This could lock in current rates until 2028, providing a window for strategies like Roth conversions. We stress the importance of maximizing tax efficiency, particularly for retirees with tax-deferred accounts, while acknowledging the looming challenge of the national debt, which now incurs over $1 trillion in annual interest. The creation of a Department of Government Efficiency, led by Elon Musk, sparks hope for addressing budget deficits and wasteful spending. Musk’s private-sector expertise could drive cost reductions using methods like AI implementation, potentially easing the federal debt burden over time. However, this remains speculative as we await tangible outcomes. We also address the potential risks and rewards of Trump’s tariff policies. Tariffs may incentivize domestic production but could lead to short-term disruptions and higher costs. Combining these tariffs with initiatives to bolster American self-sufficiency and technology, however, could benefit the economy in the long run. Immigration policy is another focal point. We discuss how stricter enforcement and deportations might affect sectors dependent on immigrant labor, potentially leading to higher consumer prices. Some undocumented individuals may opt to self-deport to preserve their ability to re-enter legally. This approach balances enforcement with the recognition of immigrants’ economic contributions. In conclusion, while Trump’s second term offers opportunities for economic growth and reform, significant uncertainties remain. We emphasize proactive financial planning to navigate potential tax changes, interest rate shifts, and broader economic trends. 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 © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

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

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

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

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

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

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

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