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Southlake Retirement Planning – The Secure Act Overview

The Secure Act Overview in 2020

Retirement Planning Changes to Know
for Southlake Retirees

The Secure Act Impact    Southlake Retirement Plan Review

On December 20, 2019 – while you were preparing for Christmas – The Secure Act was signed into law.

SECURE stands for Setting Every Community Up for Retirement Enhancement.

 

What is The Secure Act?

The Setting Every Community Up for Retirement Enhancement (SECURE) Act is a bipartisan bill designed to aid Americans’ ability to save for retirement. The bill seeks to improve the country’s retirement prospects.

The bill passed the U.S. House of Representatives in a 417-3 vote in July 2019. And was then passed by the Senate, as part of the Dec. 19, 2019, spending and tax-extension bills. It was signed into law by President Donald Trump on Dec. 20, 2019.
SECURE Act, Investopedia

 
 

Financial Planning Impact of The Secure Act?

Allen-Wealth-Advisors-Secure-Act-Reirement-Planning-Changes-2020

Secure Act Impact

Some of the changes will generate questions –
and will likely require professional financial planning advice.
 
  •  The Secure Act now allows annuities to be put in 401k plans – Many annuities offer guaranteed income, which is attractive, but they can be very complex investments and it would be wise to consult with an investment advisor before making this choice
  • The stretch benefit of IRA’s has been eliminated for most non-spousal beneficiaries.
  • This rule goes into effect on January 1, 2020 – but does not affect anyone who inherited IRAs and started taking required minimum distributions before to this date.
  • Prior to the passage of this act, many beneficiaries could “stretch” the benefits of their inherited IRA over their lifetime – meaning they could take minimum annual distributions based on their age.
  • Now, unless you are a spouse, most IRA’s will have to be paid out within 10 years.
  • This could have a big income tax impact on someone in their peak earning years.
  • It also has impact on young beneficiaries who might not otherwise come across a large sum of money in a relatively short period of time.

Some Helpful Secure Act Provisions Include:

  • Small businesses will receive tax incentives to set up retirement plans with automatic enrollment.
  • Alternatively, employers can pool together to share access to retirement plans.

Other Secure Act Improvements Include:



    • The age for required minimum distributions is increased from 70.5 to 72.

    • The maximum age for making contributions to traditional IRAs was removed.


     

     

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    Southlake and Colleyville Fee-Only Financial Planning
    Allen Wealth Advisors


    Retirement Planning    Investment Management     Financial Planning for Women


    Allen Wealth Advisors is a fee-only advisory.
    Our advisors are Certified Financial Planners®.


    • We are paid directly by clients for our services and cannot receive other forms of compensation.
    • We act as a fiduciary, meaning: We are obligated to put our clients’ interests first.


    How Can Allen Wealth Advisors Be of Assistance?


     

    Contact Us


     

    Allen Wealth Advisors, Colleyville TX
    We serve Colleyville, the Dallas Fort Worth Area and the U.S.
    Including the cities of Colleyville, Southlake, Grapevine, Keller, North Richland Hills, Hurst, Euless, Bedford, Flower Mound, Argyle, Lantana, Double Oak, Copper Canyon, Highland Village, Denton and surrounding areas.

     


10 Critical Financial Planning Tips for 2020

January is the Time for Financial Resolutions

Resolve to have a Happy New Year 2020!

Click to View: 10 Basic Critical Financial Planning Tips for 2020
Basic financial planning needed to get control of (and grow!) – wealth in 2020.

Allen Wealth Advisors - Financial Planning Tips for 2020

Allen Wealth Advisors Financial Planning 2020

At Allen Wealth Advisors, we get to know you – and your unique situation – as well as your goals for the future. At the beginning of the New Year is an ideal time to create Financial Resolutions and Financial Planning for 2020.

In our experience – these 10 Basic Tips for Financial Planning have the greatest impact.

Need Advice on Your Financial Plans?

We assess your current situation and provide you a roadmap to help you achieve your personal goals. We then help you implement your plan providing you the tools and professional guidance necessary to accomplish your goals.

Financial Planning for Women     Investment Management     Retirement Planning

Allen Wealth Advisors - 10 Critical Financial Planning Tips for 2020

Customized Financial Planning and Investment Management Strategies

We provide customized Financial Planning and Investment Management strategies to women, families, individuals, and small businesses.

Our goal is to provide the highest quality advice and service to help you meet your needs and goals. We treat you the way we would want to be treated.

We act as a fiduciary, meaning: We are obligated to put our clients’ interests first.

 

Contact Allen Wealth Advisors


10 Basic Critical Financial Planning Tips for 2020

Allen Wealth Advisors - Basic Critical Financial Planning 2020

The financial planning tips below are the basics needed to get control of (and grow!) – wealth in 2020.

1. Pay off Credit Card Debt each month.
One of the best gifts you can give yourself if to be debt free. This requires self-discipline. Don’t charge something unless you really need it and make sure you pay off your credit card each month.

2. Pay off high interest rate debt as soon as possible.
Make a plan to reduce high interest rate debt as soon as you can. Even paying $10-$20 more per month will help put you on the right path.

3. Review your insurance.
Make sure you are adequately covered in:
Life insurance – will there be enough for your survivors should something happen to you?
Disability insurance coverage – if you have a serious injury or long-term illness, will your disability insurance replace enough of your income?
Long Term Care – do you have enough set aside to cover 2-3 years of long- term care costs?
Property and Casualty Insurance – are you adequately covered on your home, auto and umbrella policies?

4. Get will and estate documents done.
If you have any dependents – parents, spouse, children, or assets that you would like disposed of in a certain way, you need a will and possibly other estate documents such as a trust.

5. You will also need other estate associated documents:
• Medical and Durable Powers of Attorney
• Physician Directives
• HIPAA

6. Have a tax review to ensure you are taking advantage of all deductions and tax credits
The tax code can be incredibly complex particularly at higher income levels. Don’t leave any money on the table.

7. Get an Investment Review.
Are your personal investments and retirement investments balancing your risk-taking ability with your financial needs? Make sure you are invested in most efficient way possible for your profile. Contact Allen Wealth Advisors for Investment Reviews and Investment Management.

8. Build a small business succession plan.
Owning a small business is no easy task. See a financial advisor to make sure you are leaving your business in capable hands, and that your family is compensated adequately should the unexpected occur.

9. Start a Retirement Plan for your small business.
If you have a small business, have you looked at the array of employee benefits that would enhance your workers lives as well as help reduce your taxes?  Retirement Planning

10. Get a Financial Plan.
This is the most important goal of all – because it can help facilitate goals 1 through 9.

Be sure to Call Allen Wealth Advisors to get your financial life in order.

And remember….
Having no plan is not a plan!


Colleyville Fee-Only Financial Planner – Allen Wealth Advisors

Allen Wealth Advisors is a fee-only advisory. Our advisors are Certified Financial Planners®.

• We are paid directly by clients for our services and cannot receive other forms of compensation.
• We act as a fiduciary, meaning: We are obligated to put our clients’ interests first.

How Can Allen Wealth Advisors Be of Assistance?

 

Contact Us

 
Allen Wealth Advisors, Colleyville TX
We serve Colleyville, the Dallas Fort Worth Area and the U.S.
Including the cities of Colleyville, Southlake, Grapevine, Keller, North Richland Hills, Hurst, Euless, Bedford, Flower Mound, Argyle, Lantana, Double Oak, Copper Canyon, Highland Village, Denton and surrounding areas.
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Photo Copyright: THANANIT SUNTIVIRIYANON
Photo Copyright: Andriy Popov

Non Deductible IRAs and ROTH Conversions

Little Known ROTH Conversion Requirements

· Non Deductible IRA Tax Deferred Income Growth ·

Colleyville Financial Planning Tips

Allen Wealth Advisors - Non Deductible IRAs and ROTH Conversions

Most of us have heard of Traditional IRA’s and Roth IRA’s as tools for tax free or tax deferred income growth.

Less well known are the benefits and rules regarding Non Deductible IRA’s – which can also be a valuable tool for retirement savings.

What is a Non-Deductible IRA

Like a Traditional IRA, there are no maximum income limits on who can contribute to a Non Deductible IRA. But there is a minimum income level: you cannot contribute more to this IRA than you earn.

And, as the name indicates – this type of IRA cannot be deducted from your income for a tax benefit.  The same withdrawal rules apply to the Non-Deductible IRA as to the Traditional IRA. So you must be 59 ½ for money to be taken out penalty free.  When money is taken out of the Non-deductible IRA, taxes are paid on the gains from the investments.

Roth IRA Conversion

While the most obvious benefit of a Non-Deductible IRA is the tax deferred earnings – another thing to consider is using it as a precursor to a Roth IRA conversion.  There are no longer income limits on those wishing to convert traditional IRAs to Roth IRAs.  Roth IRAs are an especially attractive retirement vehicle since the earnings grow tax free.

‘Backdoor’ Roth

This can be a valuable tool especially if you don’t currently have any IRA’s.  To convert a Non-deductible IRA to a Roth, taxes must be paid on any earnings in the Non-Deductible IRA.  If there are no earnings, no taxes are paid.

This is referred to as a “backdoor Roth”. However, if you have an existing traditional IRA, form 8606 must be completed at tax time. Taxes may be owed on a portion of the converted IRA – depending on how much is in the existing traditional IRA.  In this situation, it is advisable to review your particular situation and evaluate if it is in your best interest to convert.

Non-deductible IRAs and “Catch Up” Contributions

Who should consider a Non-deductible IRA?  High Income earners who have already maxed out their retirement contributions to a company 401k and Health Savings Accounts and who are looking for additional tax deferred savings.  For these individuals, $6000 can be contributed annually or if you are over 50, you can make a “catch up” contribution of $1000 for a total contribution of $7000 annually.

Colleyville Financial Planner

If you don’t have any other traditional IRAs, this is a no-brainer.  If you do have an existing traditional IRA, you may wish to consult your Financial Advisor or Accountant before proceeding.

How Can Allen Wealth Advisors Be of Assistance?

 

Contact Us

 
Allen Wealth Advisors, Colleyville TX
We serve Colleyville, the Dallas Fort Worth Area and the U.S.
Including the cities of Colleyville, Southlake, Grapevine, Keller, North Richland Hills, Hurst, Euless, Bedford, Flower Mound, Argyle, Lantana, Double Oak, Copper Canyon, Highland Village, Denton and surrounding areas.

5 Habits of the Wealthy

Easy Steps to Wealth Building

Simple changes can make a dramatic difference and put you on track to a comfortable retirement.  Observing what the wealthy do is very instructive.

Pay off credit every month

Allen Wealth Advisors - Financial Planning for Women, Colleyville Texas

It costs a lot of money to carry credit card debt from month to month.  If the card is paid off each month, borrowing usually doesn’t cost anything.  However, carrying a balance to the next month can cost anywhere from 10% – 20% APR, or even more.  A simple rule that the wealthy and wise follow is to pay this debt off in full each and every month.  As an extra bonus, it is a good idea to find a credit card that offers rewards that suit your lifestyle such as airline miles.

Contribute max to 401k or IRA

Most businesses that offer a 401k, will also offer a matching program.  If you are not contributing enough to take full advantage of the match, then you are leaving free money on the table.  The earnings in these accounts grow tax deferred which is valuable tool for retirement savings.

If you don’t have a 401k, then by all means, take advantage of saving in an IRA.  By doing this you will also get the advantage of tax deferred earnings until retirement.  In 2019, you can contribute as much as $6,000 each year and if you are over 50, you can contribute up to $7,000.

Budget savings

Recent research shows that the wealthy save at least 20% of their income.  While it is certainly easy to save money when you earn a lot of money, the most important lesson here is to establish the habit.  It is important to have a nest egg for emergencies, goals and for investments.  Don’t worry if you can’t save 20% now.  Just get in the habit of saving what you can.  As your income grows, rather than spending it all, be sure to set aside a little more to increase you savings.

Set Goals and monitor

According to the Rich Habits Institute, 67% of the wealthy write down their goals and over 80% maintain a “To Do list”.  It is amazing how much more you can do in a single day just by having a To Do list.  Writing down your goals has the same effect; it is a form of accountability.  This is especially effective for financial goals and career goals.  Often these goals are complimentary.

Have a financial plan and regularly review it

While most of the wealthy have a financial plan, it is a myth to believe that a financial plan is only for the wealthy.  Everyone can benefit from having a plan.  Short, medium and long term goals can all be combined to create a roadmap to help you achieve your goals.  Would you like to save for a home? Provide a college education for children? Determine when you can retire?  All these goals can and should be planned for.  The most effective plans are reviewed annually and updated with any changes that have occurred during the preceding year.  If you don’t have a plan, call a financial advisor and get the process started.

Next……the importance of financial planning

How Can Allen Wealth Advisors Be of Assistance?

 

Contact Us

 
Allen Wealth Advisors, Colleyville TX
We serve Colleyville, the Dallas Fort Worth Area and the U.S.
Including the cities of Colleyville, Southlake, Grapevine, Keller, North Richland Hills, Hurst, Euless, Bedford, Flower Mound, Argyle, Lantana, Double Oak, Copper Canyon, Highland Village, Denton and surrounding areas.
 

Fee-Only vs. Fee-Based Financial Planning

Financial Planning Consumer Info

Allen Wealth Advisors - CERTIFIED FINANCIAL PLANNERS™ Colleyville TXAllen Wealth Advisors is a fee-only advisory.

A “fee-only” financial advisor sounds very similar to a “fee-based” financial advisor, but there’s a significant difference in how they get paid.

There is a critical distinction between hiring a fee-only advisor versus a fee-based one. Here’s what you should know:

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At Allen Wealth Advisors, all our advisors are CERTIFIED FINANCIAL PLANNERS™.

This means we have the training, experience and knowledge to help you plan for and realize a successful financial future.  We build strong relationships with our clients. Our clients can feel secure that their needs are our first priority.

Allen Wealth Advisors: Fee-only Advisory Services

Allen Wealth Advisors is a fee-only advisory. This means:

  • We are paid directly by clients for our services and cannot receive other sources of compensation, such as payments from fund providers.
  • We act as a fiduciary, meaning: We are obligated to put our clients’ interests first.

Allen Wealth Advisors Services

We get to know you – and your unique situation – as well as your goals for the future.

We assess your current situation and provide you a roadmap to help you achieve your personal goals.
We then help you implement your plan providing you the tools and professional guidance necessary to accomplish your goals.

Financial Planning for Women     Investment Management     Retirement Planning

How Can Allen Wealth Advisors Be of Assistance?

Contact Us

 
Allen Wealth Advisors, Colleyville TX
We serve Colleyville, the Dallas Fort Worth Area and the U.S.
Including the cities of Colleyville, Southlake, Grapevine, Keller, North Richland Hills, Hurst, Euless, Bedford, Flower Mound, Argyle, Lantana, Double Oak, Copper Canyon, Highland Village, Denton and surrounding areas.