Where you hold your investments matters. Mutual funds or ETFs? Why life insurance still plays an important estate planning role

Size: px
Start display at page:

Download "Where you hold your investments matters. Mutual funds or ETFs? Why life insurance still plays an important estate planning role"

Transcription

1 spring 2016 Where you hold your investments matters Mutual funds or ETFs? Why life insurance still plays an important estate planning role Should you undo a Roth IRA conversion?

2 Taxable vs. tax-advantaged accounts Where you hold your investments matters When investing for retirement or other long-term goals, people usually prefer tax-advantaged accounts, such as IRAs, 401(k)s or 403(b)s. Certain assets are well suited to these accounts, but other investments make far more sense for traditional taxable accounts. Knowing the difference can help bring you closer to your financial goals. Understand how they re taxed Where you own assets matters because of how they re taxed. Some investments, such as fastgrowing stocks, can generate substantial capital gains, which occurs whenever you sell a security for more than you paid for it. When you ve owned that position for over a year, you face longterm gains, taxed at a maximum rate of 20%. In contrast, short-term gains, assessed on holding periods of a year or less, are taxed at your ordinary-income tax rate maxing out at 39.6%. Meanwhile, if you own a lot of income-generating investments, you ll need to pay attention to the tax rules for dividends, which belong to one of two categories: Qualified. These dividends are paid by U.S. corporations or qualified foreign corporations. Assuming you ve met the applicable holding period requirements, qualified dividends are, like long-term gains, subject to a maximum tax rate of 20%. Nonqualified. These dividends which include most distributions from real estate investment trusts (REITs) and master limited partnerships (MLPs) receive a less favorable tax treatment. Like short-term gains, nonqualified dividends are taxed at your ordinary-income tax rate. Choose tax-efficient options Generally, the more tax efficient an investment, the more benefit you ll get from owning it in a taxable account. Conversely, investments that lack tax efficiency normally are best suited to tax-advantaged vehicles. Consider municipal bonds ( munis ), either held individually or through mutual funds. Munis are particularly attractive to tax-sensitive investors because their income is exempt from federal income taxes and sometimes state and local income taxes as well. Because you don t get a double benefit when you own an already tax-advantaged security in a taxadvantaged account, holding munis 2 Wealth Management Advisor

3 in your 401(k) or IRA would result in a lost opportunity. Similarly, tax-efficient investments such as passively managed index mutual funds or exchange-traded funds, or long-term stock holdings, are generally appropriate for taxable accounts. Over time, these securities are more likely to generate long-term capital gains, whose tax treatment is relatively favorable. Securities that generate more of their total return via capital appreciation or that pay qualified dividends are also better taxable account options. Take advantage of income What investments work best for tax-advantaged accounts? Taxable investments that tend to produce much of their return in income, for one. This category includes corporate bonds, especially high-yield bonds, as well as REITs, which are required to pass through most of their earnings as shareholder income. Most REIT dividends are nonqualified and therefore taxed at your ordinaryincome rate. Another tax-advantaged-appropriate investment may be an actively managed mutual fund. Funds with significant turnover meaning their portfolio managers are actively buying and selling securities have increased potential to generate short-term gains that ultimately get passed through to you. Because short-term gains are taxed at a higher rate than long-term gains, these funds would be less desirable in a taxable account. Think beyond taxes The above concepts are only general suggestions for taxable and taxadvantaged accounts. You may, for example, need more liquidity in your taxable account than you do in your IRA account. In this case, you might decide to hold a high-turnover equity fund or high-yield bond investments in the taxable account because you value flexibility more than favorable tax treatment. Just keep in mind the benefits and risks including the risk that your investments will lose value associated with any investment decision, and know that tax issues can be complex. Ask your Lenox Advisor to help you make the best choices for your situation. Wealth Management Advisor 3

4 Mutual funds or ETFs? Understand the differences before you choose Mutual funds* have been around for nearly a century. Exchange-traded funds, or ETFs, are the newer kid on the block. The two investment types have much in common, but also important differences that make each more appropriate for some situations than others. Passive or active ETFs have quickly assumed a prominent place on the U.S. investment landscape. In late 2014, more than $2 trillion in net assets were held in 1,400 ETFs up from a single offering in 1993 and fewer than 100 in Despite this growth, mutual funds remain dominant. According to the Investment Company Institute, there are nearly $16 trillion of assets owned across close to 8,000 mutual funds. There are two basic types of mutual funds: actively managed and indexbased. With actively managed funds, a portfolio manager decides which securities to buy and sell to give the fund the best opportunity to outperform a benchmark index. Index funds, however, are passively managed, meaning they re designed to replicate a benchmark s characteristics and match its performance. Despite a small number of actively managed ETFs, the vast majority are passive investments. They re designed to track a particular benchmark, making them most similar to index mutual funds. Differences in pricing Even though index funds and ETFs share many characteristics, they also have significant differences. For starters, investors in mutual funds generally buy and sell shares directly from a fund company. The shares are priced once per trading day after the close of trading, and investors must buy before then to receive that day s price. ETF shares, in contrast, are transacted on stock exchanges via a brokerage account. Their prices fluctuate throughout the day based on supply and demand. This means that shares sometimes temporarily trade at a premium or discount to their underlying investment s net asset value (NAV). If the gap between share price and NAV gets too wide, buyers or sellers theoretically emerge to bring the prices back in line. However, in practice, the price discrepancy can persist for days or even longer. Another key difference is that, just as with stock trades, investors incur *Consider the investment objectives, risks, charges and expenses of mutual funds carefully before investing. For this and other information about the mutual funds you re considering, please read the prospectus carefully before investing. Mutual fund investment values will fluctuate, and shares, when redeemed, may be worth more or less than original cost. 4 Wealth Management Advisor

5 But it s important to note that, if you own mutual funds in a taxadvantaged retirement account, such as an IRA, your purchases and sales do not involve capital gains. What s more, fund distributions don t result in tax. brokerage commissions each time they buy and sell ETFs. Thus, the more frequently you transact, the higher your cost of ownership. Buying mutual fund shares directly from a fund company is usually commission-free (although some funds do have sales charges, or loads ). gains that are passed through to individual shareholders, even those who never sell their own fund holdings. Because ETFs are transacted privately between buyers and sellers, investors have significantly more control over their taxes. Consider your goals Both mutual funds and ETFs can help you achieve your investment objectives. But both also carry risks including the risk that they ll decline in value and you ll lose money you ve invested in them. Discuss your goals and risk tolerance with your financial advisor and he or she can help guide you to the most appropriate investment. Because most ETFs are passively managed, they tend to have low expenses, especially compared with actively managed mutual funds. Index mutual funds also generally have low expenses. Tax treatment varies Most ETFs are tax efficient, especially compared to actively managed mutual funds, because they aren t required to make distributions. ETFs are also typically more tax efficient than index mutual funds. When index funds need to redeem shares, portfolio managers may have to sell stock to generate cash. This can create capital Consider your objectives Your individual situation will determine whether you re best suited to an exchange-traded fund (ETF) or a traditional mutual fund. If you want a chance to beat the market (by, for example, outperforming the S&P 500 index), you ll probably want to consider an actively managed mutual fund. Of course, despite their best intentions, many active managers wind up trailing their benchmark because of higher expenses and other factors. It s important to think about your investment goals and timing. If you plan to make small, regular investments for a longterm objective, you might be better off setting up an automatic investment plan with a mutual fund company. That way, your frequent purchases will be free of transaction costs. ETFs, meanwhile, may be more cost effective if you re making a larger, one-time investment. Exchange-traded funds (ETFs) don t sell individual shares directly to investors and only issue their shares in large blocks. ETFs are subject to risks similar to those of stocks. Consider the investment objectives, risks, and charges and expenses of ETFs carefully before investing. Investment returns will fluctuate and are subject to market volatility, so that an investor s shares, when redeemed or sold, may be worth more or less than their original cost. Wealth Management Advisor 5

6 Why life insurance still plays an important estate planning role Because the estate tax exemption currently tops $5 million, fewer people need life insurance to provide their families with the liquidity to pay estate taxes. But life insurance can still play an important part in your estate plan, particularly in conjunction with charitable remainder trusts (CRTs) and other charitable giving strategies. Home for highly appreciated assets CRTs are irrevocable trusts that work like this: You contribute property to a CRT during your life or upon your death and the trust makes annual distributions to you or your beneficiary (typically, your spouse) for a specified period of time. When that period ends, the remainder goes to a charity of your choice. These instruments are particularly useful when you contribute highly appreciated assets, such as stock or real estate, and want to reduce capital gains tax exposure. Because the CRT is tax-exempt, it can sell the assets and reinvest the proceeds without currently triggering the entire capital gain. Another benefit is that, if you opt to receive annual distributions from your trust, that income stream generally will be taxed at a lower rate than other income using a formula that combines ordinary taxable income, tax-exempt income, capital gains and other rates. Here s where life insurance comes in. Because CRT assets eventually go to charity usually after both you and your spouse have died you won t have as much to leave to your children or other heirs. A life insurance policy can replace that lost wealth in a tax advantaged way. Charities as beneficiaries CRTs are ideal for philanthropically minded individuals. But there are other ways to use life insurance to fund charitable gifts and enjoy tax benefits. You might, for example, transfer your policy to a nonprofit organization and take a charitable income tax deduction (subject to certain limitations) for it. If you continue to pay premiums on the policy after the charity becomes its owner and beneficiary, you can take additional charitable deductions. Another scenario is to just name a charity as your policy s beneficiary. Because you retain ownership, you can t take charitable income tax deductions during your life. But when you die, your estate will be entitled to an estate tax charitable deduction. Here s a third idea. Instead of leaving your IRA or other retirement accounts to your heirs, thus forcing them to pay income tax on any distributions, designate these investment accounts for charity. Then buy a life insurance policy equal to the value of the donated assets to leave to your family. You might even want to pay the policy s premiums with after-tax funds from a retirement account. Wealth replacement tool Life insurance can be used to replace wealth in many circumstances not only when you re donating to charity. For instance, if you ve decided to forgo long term care (LTC) insurance and pay any LTC-related expenses (such as home nursing services or care in a nursing facility) out of pocket, you may not have as much to leave your heirs. Life insurance can help ensure that you provide your family with an inheritance. Or, say you re a business owner who intends to leave the company to one of your children who you believe can run it successfully. That may leave other children who won t inherit the business. If you don t have adequate assets outside your company to equalize your children s shares, life insurance proceeds can help bridge that gap. Multiple benefits Estate taxes may no longer be a concern if your estate is valued at less than $5.45 million. But, depending on your goals, life insurance can help you make charitable gifts, leave money to your heirs and realize tax advantages. Talk to your Lenox Advisor about the types of policies that might be appropriate for estate planning purposes. 6 Wealth Management Advisor

7 Should you undo a Roth IRA conversion? Converting a traditional IRA to a Roth IRA can provide tax-free growth and the ability to withdraw funds tax-free in retirement. But what if you convert a traditional IRA subject to income taxes on all earnings and deductible contributions and then discover that you would have been better off if you hadn t converted it? Fortunately, it s possible to undo a Roth IRA conversion, using a recharacterization. Reasons to recharacterize There are several possible reasons to undo a Roth IRA conversion. For example: You lack sufficient liquid funds to pay the tax liability. The conversion combined with your other income has pushed you into a higher tax bracket. Your income is likely to drop in retirement, reducing or eliminating the benefits of a Roth IRA. The value of your account has declined since the conversion, which means you would owe taxes partially on money you no longer have. Generally, when you convert to a Roth IRA, you have until October 15th of the following year (if you extend your tax return) to undo it. Then, you must wait to once again convert to a Roth IRA until the later of 1) the first day of the year following the year of the original conversion, or 2) the 31st day after the recharacterization. Keep in mind that, if you reversed a conversion because your IRA s value declined, there s a risk that your investments will bounce back during the waiting period. This could cause you to reconvert at a higher tax cost. Recharacterization in action The following example illustrates the process. Nick has a traditional IRA with a balance of $100,000. In December 2016, he converts it to a Roth IRA and normally would owe $33,000 in federal income taxes in April However, Nick extends his return and, by September 2017, the value of his account has dropped to $80,000. On October 1, Nick recharacterizes the account as a traditional IRA and files his return to exclude the $100,000 in income. On November 1, he reconverts the traditional IRA, whose value remains at $80,000, to a Roth IRA, and reports that amount on his 2017 tax return. This time, he owes $26,400 deferred for a year and resulting in a tax savings of $6,600. Keep your options open If you convert a traditional IRA to a Roth IRA, monitor your financial situation. If the advantages of a Roth IRA diminish, talk to your Lenox Advisor about your options. Wealth Management Advisor 7

8 Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC, 530 Fifth Avenue, 14th Floor, New York, NY 10036, Fee based financial planning services are offered through Lenox Advisors, Inc., a registered Investment Advisory Firm, and are not offered or sponsored by MML Investors Services, LLC. Lenox Advisors, Inc. is not a subsidiary of or affiliated with MML Investors Services, LLC. Lenox Advisors, Inc. is a wholly owned subsidiary of NFP. NFP is not an affiliate of subsidiary of MML Investors Services, LLC. CRN

WEALTH MANAGEMENT ADVISOR

WEALTH MANAGEMENT ADVISOR WEALTH MANAGEMENT ADVISOR March / April 2016 Why life insurance still plays an important estate planning role Mutual funds or ETFs? Understand the differences before you choose Contingency planning Don

More information

TAXES AND YOUR PORTFOLIO: It s not what you earn, it s what you keep

TAXES AND YOUR PORTFOLIO: It s not what you earn, it s what you keep TAXES AND YOUR PORTFOLIO: It s not what you earn, it s what you keep YOUR HOST John Sweeney Executive Vice President, Retirement & Investing Strategies, Fidelity Investments 2 JOIN THE CONVERSATION: @SweeneyFidelity

More information

Income Plus Variable Annuity

Income Plus Variable Annuity Just the facts about New York Life... Income Plus Variable Annuity What is the New York Life Income Plus Variable Annuity? 1 Why should I consider Income Plus with the Guaranteed Future Income Benefit

More information

FInancIal PlannIng In an uncertain tax landscape. understanding today s tax environment // strategies for 2012 // Planning for 2013

FInancIal PlannIng In an uncertain tax landscape. understanding today s tax environment // strategies for 2012 // Planning for 2013 FInancIal PlannIng In an uncertain tax landscape understanding today s tax environment // strategies for 2012 // Planning for 2013 Key Takeaways Without further changes by Congress, tax rates are scheduled

More information

Federal Tax and Capital Gains: Rates Over Time

Federal Tax and Capital Gains: Rates Over Time Preparing for a World of Higher Taxes Are You Ready? Presented by: Matt Sommer, CFP, CPWA, AIF Director and Senior Retirement Specialist, Retirement Strategy Group C-0610-114 4-30-11 Federal Tax and Capital

More information

How To Get A Lower Tax Bill

How To Get A Lower Tax Bill 13 FINANCIAL PLANNING STRATEGIES FOR 2013 Timely, actionable ideas following the American Taxpayer Relief Act KEY TAKEAWAYS With the passing of the American Taxpayer Relief Act of 2012 in reaction to the

More information

Choosing tax-efficient investments

Choosing tax-efficient investments Choosing tax-efficient investments Managing your portfolio to help control your tax bill Investors need to consider many factors in the process of choosing investments. One at the top of many investors

More information

Understanding the 2013 Year-End Distributions Table

Understanding the 2013 Year-End Distributions Table Understanding the 2013 Year-End Distributions Table Year-end distribution overview Q. What is Fidelity doing this year with regard to providing information on mutual fund distributions to Fidelity fund

More information

WHICH TYPE OF IRA MAKES THE MOST SENSE FOR YOU?

WHICH TYPE OF IRA MAKES THE MOST SENSE FOR YOU? WHICH TYPE OF IRA MAKES THE MOST SENSE FOR YOU? In 1974, when IRAs were first created, they were rather simple and straightforward. Now, 35 years later, it s challenging to know the best way to save more

More information

Understanding the taxability of investments

Understanding the taxability of investments Understanding the taxability of investments Managing your portfolio to help control your tax bill Investors need to consider many factors in the process of choosing investments. One at the top of many

More information

Mutual Funds Made Simple. Brighten your future with investments

Mutual Funds Made Simple. Brighten your future with investments Mutual Funds Made Simple Brighten your future with investments About Invesco Aim When it comes to investing, your sights are set on a financial summit a college diploma, new home or secure retirement.

More information

The Charitable Remainder Trust: A Valuable Financial Tool for the Agricultural Family

The Charitable Remainder Trust: A Valuable Financial Tool for the Agricultural Family The Charitable Remainder Trust: A Valuable Financial Tool for the Agricultural Family An Educational Resource From Solid Rock Wealth Management By Christopher Nolt, LUTCF Introduction A charitable remainder

More information

Wealth and Taxes: Planning for 2014

Wealth and Taxes: Planning for 2014 NOVEMBER 2013 Wealth and Taxes: Planning for 2014 2013 YEAR-END TAX PLANNING GUIDE TABLE OF CONTENTS On January 1, 2013, Congress passed the American Taxpayer Relief Act (ATRA), which addressed the scheduled

More information

INVESTMENT STRATEGIES. 10 Tax-Wise Strategies That May Reduce Your Taxes in the Future

INVESTMENT STRATEGIES. 10 Tax-Wise Strategies That May Reduce Your Taxes in the Future INVESTMENT STRATEGIES 10 Tax-Wise Strategies That May Reduce Your Taxes in the Future 10 TAX-WISE STRATEGIES 1. Make tax-deferred investments Take full advantage of tax-deferred investment opportunities,

More information

LIQUIDATING RETIREMENT ASSETS

LIQUIDATING RETIREMENT ASSETS LIQUIDATING RETIREMENT ASSETS IN A TAX-EFFICIENT MANNER By William A. Raabe and Richard B. Toolson When you enter retirement, you retire from work, not from decision-making. Among the more important decisions

More information

Charitable remainder trusts

Charitable remainder trusts Charitable remainder trusts An estate planning strategy for charitably inclined investors This strategy may be a good fit when: You want to make a significant gift to charity You have assets that you want

More information

Year End Gifts and Investments

Year End Gifts and Investments Wealth Planning Year End Tax Tips The end of every year poses a critical deadline for utilizing certain tax benefits. The following covers various items to address in your annual tax, estate, retirement

More information

Vanguard S&P ETFs Prospectus

Vanguard S&P ETFs Prospectus Vanguard S&P ETFs Prospectus December 14, 2015 Exchange-traded fund shares that are not individually redeemable and are listed on NYSE Arca Vanguard S&P 500 Value Index Fund ETF Shares (VOOV) Vanguard

More information

The. Estate Planner. FAQs about donating real estate. The Roth IRA: Is it time to convert? It s intentionally defective?

The. Estate Planner. FAQs about donating real estate. The Roth IRA: Is it time to convert? It s intentionally defective? The Estate Planner September/October 2009 FAQs about donating real estate The Roth IRA: Is it time to convert? It s intentionally defective? How an IDGT can benefit your estate plan Estate Planning Red

More information

Stocks and Taxes Ordinary Income Versus Capital Gains Jobs & Growth Tax Relief Reconciliation Act of 2003

Stocks and Taxes Ordinary Income Versus Capital Gains Jobs & Growth Tax Relief Reconciliation Act of 2003 Stocks and Taxes Unlike death, taxation can at least be minimized. In this article, we will examine the basic framework of individual taxation in the United States as it relates to stock investing and

More information

Charitable giving techniques

Charitable giving techniques Charitable giving techniques Helping achieve your charitable and estate-planning goals Trust tip A trust can be thought of as having two parts an income interest and a remainder interest. The income interest

More information

UNDERSTANDING CLOSED-END FUNDS

UNDERSTANDING CLOSED-END FUNDS Lessons in Investing for Income UNDERSTANDING CLOSED-END FUNDS Income is one of investors most common goals but one not easily achieved, especially in today s low-yielding environment. That s why investors

More information

Wealth and Taxes: Planning for 2015

Wealth and Taxes: Planning for 2015 november 2014 Wealth and Taxes: Planning for 2015 2014 YEAR-END TAX PLANNING GUIDE Table of Contents Over the past few years, the traditional year-end tax planning season has been fraught with uncertainties

More information

Family Wealth Management: Key Strategies for Corporate Executives

Family Wealth Management: Key Strategies for Corporate Executives Family Wealth Management: Key Strategies for Corporate Executives The demands of running a public company don t leave corporate executives much time to ponder their personal balance sheets. Yet sustaining

More information

A guide to investing in cash alternatives

A guide to investing in cash alternatives A guide to investing in cash alternatives What you should know before you buy Wells Fargo Advisors wants to help you invest in cash alternative products that are suitable for you based on your investment

More information

Mutual Fund Tax Guide

Mutual Fund Tax Guide 2010 Mutual Fund Tax Guide TABLE OF CONTENTS Part 1 - Tax Items of Interest... 2-6 Part 2 - Tax Forms... 7-14 Form 1099-DIV...7 Form 1099-B...8 Form 1099-R...9 Form 1099-Q...10 Form 1099-INT...11 Form

More information

The U.S. Charitable Gift Trust

The U.S. Charitable Gift Trust The U.S. Charitable Gift Trust A Tax-Advantaged Charitable Giving Program Sponsored by Eaton Vance. The U.S. Charitable Gift Trust c/o Renaissance Administration LLC, 8910 Purdue Road, Suite 500, Indianapolis,

More information

Tax Planning 101 for Canadian Investors

Tax Planning 101 for Canadian Investors Tax Planning 101 for Canadian Investors Tariq Ali Asghar www.emergingstar.com 1 TABLE OF CONTENTS Goal of Tax Planning Analysis Part One: Tax Planning and Investment Management Strategies 1. Different

More information

Traditional and Roth IRAs

Traditional and Roth IRAs october 2012 Understanding Traditional and Roth IRAs summary An Individual Retirement Account (IRA) is a powerful savings vehicle that can help you meet your financial goals. As shown in the chart on page

More information

SPDR EURO STOXX 50 ETF

SPDR EURO STOXX 50 ETF FEZ (NYSE Ticker) Summary Prospectus-January 31, 2016 Before you invest in the SPDR EURO STOXX 50 ETF (the Fund ), you may want to review the Fund's prospectus and statement of additional information,

More information

December 2014. Tax-Efficient Investing Through Asset Location. John Wyckoff, CPA/PFS, CFP

December 2014. Tax-Efficient Investing Through Asset Location. John Wyckoff, CPA/PFS, CFP John Wyckoff, CPA/PFS, CFP Your investment priorities are likely to evolve over time, but one goal will remain constant: to maximize your investment returns. Not all returns are created equal, however.

More information

ACTIONABLE STRATEGIES FOR REDUCING MEDICARE TAXES

ACTIONABLE STRATEGIES FOR REDUCING MEDICARE TAXES ACTIONABLE STRATEGIES FOR REDUCING MEDICARE TAXES Medicare taxes increased in 2013 for high-income earners. Timely action can help reduce the impact of higher taxes. KEY TAKEAWAYS High-income taxpayers

More information

The Power of the Charitable Remainder Trust

The Power of the Charitable Remainder Trust The Power of the Charitable Remainder Trust As people become better educated about the power and fl exibility of the Charitable Remainder Trust (CRT), they are incorporating it more and more as an effective

More information

Making Retirement Assets Last a Lifetime PART 1

Making Retirement Assets Last a Lifetime PART 1 Making Retirement Assets Last a Lifetime PART 1 The importance of a solid exit strategy During the working years, accumulating assets for retirement is one of the primary goals of the investing population.

More information

The Charitable Gift Annuity

The Charitable Gift Annuity The Charitable Gift Annuity A Gift that Gives Back What Is a Charitable Gift Annuity? The name says it all. It s both a charitable gift and an annuity. The donor contributes property to charity and receives

More information

BRANDES INTERNATIONAL EQUITY FUND. Summary Prospectus

BRANDES INTERNATIONAL EQUITY FUND. Summary Prospectus BRANDES INTERNATIONAL EQUITY FUND Summary Prospectus Class I Ticker Symbol: BIIEX Class E Ticker Symbol: BIEEX Class A Ticker Symbol: BIEAX Class C Ticker Symbol: BIECX Class R6 Ticker Symbol: BIERX February

More information

Roth IRA Conversions: A Powerful Wealth-Transfer Tool

Roth IRA Conversions: A Powerful Wealth-Transfer Tool July 2014 Private Wealth Advisory Roth IRA Conversions: A Powerful Wealth-Transfer Tool Converting a traditional IRA or another qualified retirement plan to a Roth IRA can be a powerful wealth-transfer

More information

HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015

HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015 HERMENZE & MARCANTONIO LLC ADVANCED ESTATE PLANNING TECHNIQUES - 2015 I. Overview of federal, Connecticut, and New York estate and gift taxes. A. Federal 1. 40% tax rate. 2. Unlimited estate and gift tax

More information

Exchange Traded Funds A Brief Introduction

Exchange Traded Funds A Brief Introduction Exchange Traded Funds A Brief Introduction 1 What You Need to Know about ETFs 2 ETF Basics Benefits of ETFs ETFs vs. Mutual Funds The Role of ETFs in Your Portfolio Our Next Steps Appendix: FAQs 3 ETF

More information

IN THIS ISSUE: July, 2011 j Income Tax Planning Concepts in Estate Planning

IN THIS ISSUE: July, 2011 j Income Tax Planning Concepts in Estate Planning IN THIS ISSUE: Goals of Income Tax Planning Basic Estate Planning Has No Income Tax Impact Advanced Estate Planning Can Have Income Tax Implications Taxation of Corporations, LLCs, Partnerships and Non-

More information

Exchange Traded Funds A Brief Introduction

Exchange Traded Funds A Brief Introduction Exchange Traded Funds A Brief Introduction spdrs.com What You Need to Know about ETFs ETF Basics Potential Benefits of ETFs ETFs versus Mutual Funds The Role of ETFs in Your Portfolio Our Next Steps Frequently

More information

INVESTMENT OBJECTIVE TTM U.S. CORE ETF DETAILS HIGHLIGHTS

INVESTMENT OBJECTIVE TTM U.S. CORE ETF DETAILS HIGHLIGHTS Our uncertain global economy presents a new paradigm for investing. Protecting the wealth you have accumulated is as important as growth. 1/31/2015 Markets move in recognizable trends and countertrends.

More information

ROTH IRAS: IS THERE A CONVERSION IN YOUR FUTURE? SHOULD THERE BE?

ROTH IRAS: IS THERE A CONVERSION IN YOUR FUTURE? SHOULD THERE BE? KRISTI MATHISEN, JD AND CPA Who would have imagined that one of the hottest investment questions in years for individuals, tax professionals, financial planners and investment advisors would be about the

More information

LONG-TERM CHARITABLE PLANNING STRATEGIES

LONG-TERM CHARITABLE PLANNING STRATEGIES Presidential Yacht Potomac LONG-TERM CHARITABLE PLANNING STRATEGIES Much of the funding for the Potomac Association s educational programs, historical programs, ship s restoration and maintenance comes

More information

Estate Planning. Insight on. The basics of basis. Does a private annuity have a place in your estate plan? Estate tax relief for family businesses

Estate Planning. Insight on. The basics of basis. Does a private annuity have a place in your estate plan? Estate tax relief for family businesses Insight on Estate Planning June/July 2015 The basics of basis Basis planning can result in significant tax savings Does a private annuity have a place in your estate plan? Estate tax relief for family

More information

Wealth Transfer Planning

Wealth Transfer Planning Wealth Transfer Planning For Business Owners ESTATE PLANNING SERVICES Merrill Lynch does not provide tax, accounting or legal advice. Any information presented about tax considerations affecting client

More information

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts Traditional and s Invest for retirement with tax-advantaged accounts Your Retirement It is your ultimate reward for a lifetime of hard work and dedication. It is a time when you should have the financial

More information

Guaranteed to Fit Your Life

Guaranteed to Fit Your Life An Overview Guide for Individuals Guaranteed to Fit Your Life The value of whole life insurance throughout your lifetime Insurance Strategies Contents 1 Whole Life Insurance Basics 2 Insurance That Fits

More information

Charitable {Giving Guide

Charitable {Giving Guide Charitable {Giving Guide Ways to Give There are many ways to make a charitable contribution. This summary highlights some of the most popular charitable giving options, including gifts of stock, bequests,

More information

Fidelity Freedom Lifetime Income Annuity *

Fidelity Freedom Lifetime Income Annuity * Fidelity Freedom Lifetime Income Annuity * SECURE A STREAM OF INCOME 1 THAT S GUARANTEED 2 FOR LIFE. Fidelity insurance products are issued by Fidelity Investments Life Insurance Company (FILI) and, in

More information

The Charitable Lead Trust: A Creative Way to Give to Charity Now and to Loved Ones Later

The Charitable Lead Trust: A Creative Way to Give to Charity Now and to Loved Ones Later 1/6 Puccini s Madama Butterfly The Charitable Lead Trust: A Creative Way to Give to Charity Now and to Loved Ones Later Like many parents and grandparents, you may have wondered whether you could make

More information

Redemption of Shares Class A Sales Charge Waivers beginning on page 37 of the Fund s Statement of Additional Information.

Redemption of Shares Class A Sales Charge Waivers beginning on page 37 of the Fund s Statement of Additional Information. USA Mutuals Barrier Fund Trading Symbols: Institutional Class Shares VICVX Investor Class Shares VICEX Class A Shares VICAX Class C Shares VICCX Summary Prospectus July 29, 2015 Before you invest, you

More information

Vanguard Municipal Bond Funds Prospectus

Vanguard Municipal Bond Funds Prospectus Vanguard Municipal Bond Funds Prospectus February 24, 2012 Investor Shares & Admiral Shares Vanguard Tax-Exempt Money Market Fund Investor Shares (VMSXX) Vanguard Short-Term Tax-Exempt Fund Investor Shares

More information

TRUST & ESTATE INSIGHTS

TRUST & ESTATE INSIGHTS TRUST & ESTATE INSIGHTS SEPTEMBER 2015 A PUBLICATION OF SEILER LLP INSIDE THIS ISSUE Life Insurance A Powerful Estate Planning Tool for Nontaxable Estates 4 Ways to Transfer a Family Business The BDIT

More information

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts Traditional and Roth IRAs Invest for retirement with tax-advantaged accounts Your Retirement It is your ultimate reward for a lifetime of hard work and dedication. It is a time when you should have the

More information

EDUCATIONAL SERIES MUTUAL FUND HANDBOOK SAMPLE CHAPTER

EDUCATIONAL SERIES MUTUAL FUND HANDBOOK SAMPLE CHAPTER EDUCATIONAL SERIES MUTUAL FUND HANDBOOK SAMPLE CHAPTER CHAPTER ONE Know What You Own With corporate pensions on the wane and Social Security s future in doubt, people have more responsibility for both

More information

Mutual Fund Portfolios Asset Allocation

Mutual Fund Portfolios Asset Allocation Morningstar Investment Services Mutual Fund Portfolios Asset Allocation Broad diversification, distinctive, independent research and progressive risk management in five core model portfolios that span

More information

Future Value if $200,000 invested in 60% stock/40% bond account

Future Value if $200,000 invested in 60% stock/40% bond account Endnotes #1 Advice Regarding Cash Reserves: Future Value if all remains in bank account Future Value if $200,000 invested in 60% stock/40% bond account plus $50,000 remaining in bank account ($250,000.00)

More information

ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015

ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015 ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015 Before you invest in the AdvisorShares Fund, you may want to review the Fund s prospectus and statement of additional

More information

Supplement dated April 14, 2016 to the Summary and Statutory Prospectuses dated January 28, 2016

Supplement dated April 14, 2016 to the Summary and Statutory Prospectuses dated January 28, 2016 Virtus Emerging Markets Small-Cap Fund, Virtus Equity Trend Fund, Virtus Global Opportunities Fund and Virtus Real Estate Securities Fund, each a series of Virtus Opportunities Trust Supplement dated April

More information

Strategies to Manage the Ever Bigger Bite of Taxes

Strategies to Manage the Ever Bigger Bite of Taxes Tax Impact Series: Avoid Manage Defer AMG Funds Research and Analysis Strategies to Manage the Ever Bigger Bite of Taxes In this world, nothing can be said to be certain except death and taxes. Benjamin

More information

LearnVest Classes Investing Challenge. Investing Basics Learning the Ropes

LearnVest Classes Investing Challenge. Investing Basics Learning the Ropes LearnVest Classes Investing Challenge Investing Basics Learning the Ropes Resources Quick Guide to Investment Terms Investment Vehicles Stock: A unit of ownership in a company. As the company value grows,

More information

Wealth Structuring and Estate Planning. Your vision and your legacy. Life s better when we re connected

Wealth Structuring and Estate Planning. Your vision and your legacy. Life s better when we re connected Wealth Structuring and Estate Planning Your vision and your legacy Life s better when we re connected Inside 1 Helping you shape the future 2 The elements of wealth structuring 4 The power and flexibility

More information

YEAR-END MOVES: Prepare for 2016

YEAR-END MOVES: Prepare for 2016 YEAR-END MOVES: Prepare for 2016 YOUR HOST John Sweeney Executive Vice President, Retirement & Investing Strategies, Fidelity Investments 2 JOIN THE CONVERSATION: @SweeneyFidelity PRESENTER Jeffrey S.

More information

An IRA can put you in control of your retirement, whether you

An IRA can put you in control of your retirement, whether you IRAs: Powering Your Retirement One of the most effective ways to build and manage funds to help you meet your financial goals is through an Individual Retirement Account (IRA). An IRA can put you in control

More information

YOUR FINANCIAL FUTURE

YOUR FINANCIAL FUTURE YOUR FINANCIAL FUTURE December 2014 In This Issue A Net Worth Statement Helps Keep Retirees on Track Your net worth is more than just your income. A net worth statement presents a composite picture "in

More information

What is an annuity? The basics Part 1 of 8

What is an annuity? The basics Part 1 of 8 What is an annuity? The basics Part 1 of 8 You may be considering an annuity, and, if that s the case, it is important that know what an annuity is and isn t. Basically, an annuity is a contract with an

More information

Susan & David Example

Susan & David Example Personal Financial Analysis for Susan & David Example Asset Advisors Example, LLC A Registered Investment Advisor 2430 NW Professional Drive Corvallis, OR 97330 877-421-9815 www.moneytree.com IMPORTANT:

More information

IN THIS ISSUE: August, 2011 j Top Income Tax Planning Ideas for 2011 and 2012

IN THIS ISSUE: August, 2011 j Top Income Tax Planning Ideas for 2011 and 2012 IN THIS ISSUE: Income Tax Overview Qualified Dividends Long-Term Capital Gains Ordinary Income Additional Income Tax Planning Ideas Income Shifting to Junior Generations Roth IRA Conversions NUA Planning

More information

2016 Summary Prospectus

2016 Summary Prospectus April 18, 2016 Global X S&P 500 Catholic Values ETF NASDAQ: CATH 2016 Summary Prospectus Before you invest, you may want to review the Fund's prospectus, which contains more information about the Fund

More information

1 2 3 4 5 6 Say that you need to generate $4,000 per month in retirement and $1,000 will come from social security and you have no other pension. This leaves $3,000 per month, or $36,000 per year, that

More information

Managed Account Series BlackRock U.S. Mortgage Portfolio (the Fund )

Managed Account Series BlackRock U.S. Mortgage Portfolio (the Fund ) Minimum Initial Investment Minimum Additional Investment Managed Account Series BlackRock U.S. Mortgage Portfolio (the Fund ) Supplement dated August 28, 2015 to the Summary Prospectus of the Fund This

More information

NAEPC was notified by Jagen Investments LLC that one of NAEPC s regional councils posted an article on its website purportedly written by Gary Powell

NAEPC was notified by Jagen Investments LLC that one of NAEPC s regional councils posted an article on its website purportedly written by Gary Powell NAEPC was notified by Jagen Investments LLC that one of NAEPC s regional councils posted an article on its website purportedly written by Gary Powell of CenterG, Inc. and published by Cannon Financial

More information

Retirement Investing: Analyzing the Roth Conversion Option*

Retirement Investing: Analyzing the Roth Conversion Option* Retirement Investing: Analyzing the Roth Conversion Option* Robert M. Dammon Tepper School of Bsiness Carnegie Mellon University 12/3/2009 * The author thanks Chester Spatt for valuable discussions. The

More information

AN ANALYSIS OF ROTH CONVERSIONS 1

AN ANALYSIS OF ROTH CONVERSIONS 1 AN ANALYSIS OF ROTH CONVERSIONS In 1997, Congress introduced the Roth IRA, giving investors a new product for retirement savings. The Roth IRA is essentially a mirror image of the Traditional IRA, but

More information

Overview of Different Types of Trusts

Overview of Different Types of Trusts Overview of Different Types of Trusts Living Trusts The living trust is very popular in America. A living trust helps you avoid the cost and delay of probate. You can also avoid the dangers from jointly

More information

Client Education. Learn About Exchange-Traded Funds

Client Education. Learn About Exchange-Traded Funds Client Education Learn About Exchange-Traded Funds 2 What is an ETF? 6 How do ETFs work? 12 How do ETFs compare with other investments? 2 Exchange-traded funds, or ETFs, are attracting more and more attention

More information

Tax Strategies From a Financial Planning Perspective

Tax Strategies From a Financial Planning Perspective Tax Strategies From a Financial Planning Perspective Spectrum Advisors Don Goerner offers securities through Purshe Kaplan Sterling Investments Member FINRA/ SIPC Headquartered at 18 Corporate Woods Blvd.,

More information

PRODUCTS AND SERVICES

PRODUCTS AND SERVICES PRODUCTS AND SERVICES Cost and Guide As a member of Thrivent Financial, we want you to have the information you need about the products and services you re paying for. This guide describes the costs associated

More information

2016 Summary Prospectus

2016 Summary Prospectus March 1, 2016 Global X SuperIncome Preferred ETF NYSE Arca, Inc: SPFF 2016 Summary Prospectus Before you invest, you may want to review the Fund's prospectus, which contains more information about the

More information

CASE District IV Conference Fort Worth, Texas. March 25, 2013. What true assets does your family possess?

CASE District IV Conference Fort Worth, Texas. March 25, 2013. What true assets does your family possess? HOW TO INITIATE GIFT PLANNING DISCUSSIONS WITH DONORS The Charitable Planning Process CASE District IV Conference Fort Worth, Texas March 25, 2013 Laura Hansen Dean, J.D. Attorney at Law (Texas, Indiana)

More information

Roth IRA Conversion... Does Taking Action Get You to Point A or Point B

Roth IRA Conversion... Does Taking Action Get You to Point A or Point B Roth IRA Conversion... Does Taking Action Get You to Point A or Point B If only it were that simple. There is no black and white here. Everything has its risks and is based on assumptions. Upfront, this

More information

The following replaces similar text in the Investing With Vanguard section:

The following replaces similar text in the Investing With Vanguard section: Vanguard Funds Supplement to the Prospectus Prospectus Text Changes The following replaces similar text for the second bullet point under the heading Frequent Trading or Market-Timing in the More on the

More information

The GOD'S CHILD Project Gift of Life Insurance

The GOD'S CHILD Project Gift of Life Insurance The GOD'S CHILD Project Gift of Life Insurance Use of Beneficiary Clause as a Revocable Gift Arrangement The easiest way to use life insurance for charitable giving is to simply name The GOD'S CHILD Project

More information

Protecting Wealth Accumulated in a Concentrated Equity Position

Protecting Wealth Accumulated in a Concentrated Equity Position Protecting Wealth Accumulated in a Concentrated Equity Position Introduction As part of your overall investment strategy, it is important to determine whether you have a concentrated equity position in

More information

Structured Products. Designing a modern portfolio

Structured Products. Designing a modern portfolio ab Structured Products Designing a modern portfolio Achieving your personal goals is the driving motivation for how and why you invest. Whether your goal is to grow and preserve wealth, save for your children

More information

2015 SUMMARY PROSPECTUS

2015 SUMMARY PROSPECTUS DECEMBER 1, 2015 2015 SUMMARY PROSPECTUS ishares North American Tech-Multimedia Networking ETF IGN NYSE ARCA Before you invest, you may want to review the Fund s prospectus, which contains more information

More information

with Asset Allocation

with Asset Allocation G REYCOURT M EMORANDUM P AGE 1 Greycourt White Paper White Paper No. 7 Combining Estate Planning with Asset Allocation Background Although estate planning has long played a critical role in preserving

More information

Important Information about Real Estate Investment Trusts (REITs)

Important Information about Real Estate Investment Trusts (REITs) Robert W. Baird & Co. Incorporated Important Information about Real Estate Investment Trusts (REITs) Baird has prepared this document to help you understand the characteristics and risks associated with

More information

3/15 23203-15A. Annuity Distribution Options for Your Beneficiaries

3/15 23203-15A. Annuity Distribution Options for Your Beneficiaries 3/15 23203-15A Annuity Distribution Options for Your Beneficiaries Getting Started Beneficiary distribution options tied to annuity assets may differ depending on the types of retirement assets as well

More information

Advanced Wealth Transfer Strategies

Advanced Wealth Transfer Strategies Family Limited Partnerships (FLPS) Advanced Wealth Transfer Strategies The American Taxpayer Relief Act of 2012 established a permanent gift and estate tax exemption of $5 million, which is adjusted annually

More information

Understanding the Math of Roth IRA Conversions

Understanding the Math of Roth IRA Conversions Understanding the Math of Roth IRA s Main Topics Key Idea Understanding the math of a Roth Ira conversion A common misconception of Roth IRA conversions Roth IRAs grow faster due to no RMDs Taxes on the

More information

TOP 20 USES FOR LIFE INSURANCE In Estate, Business Succession, and Financial Planning

TOP 20 USES FOR LIFE INSURANCE In Estate, Business Succession, and Financial Planning TOP 20 USES FOR LIFE INSURANCE In Estate, Business Succession, and Financial Planning Permanent life insurance is not just about death benefits. It s an essential tool in estate, business succession, and

More information

Guide to buying annuities

Guide to buying annuities Guide to buying annuities Summary of the key points contained in this disclosure document Before you purchase your annuity contract, make sure that you read and understand this guide. While reading this

More information

Planning Strategies for Charitable Remainder Trusts

Planning Strategies for Charitable Remainder Trusts Planning Strategies for Charitable Remainder Trusts Using a Deferred Annuity 6/13 23179-13A CRT Planning with Your Clients 1 Identify clients and prospects who are: o Charitably inclined. o Interested

More information

A guide to investing in unit investment trusts

A guide to investing in unit investment trusts A guide to investing in unit investment trusts What you should know before you buy Wells Fargo Advisors wants to ensure that you are investing in the products that best suit your financial situation, investment

More information

Financial Planning Basics Financial Planning Fundamentals

Financial Planning Basics Financial Planning Fundamentals Financial Planning Basics Financial Planning Fundamentals An Overview of the Financial Planning Process The Ground to Cover Setting goals Budgeting Emergency fund Insurance Using credit Investing Tax planning

More information

Learn about exchange-traded funds. Investor education

Learn about exchange-traded funds. Investor education Learn about exchange-traded funds Investor education Become a more knowledgeable exchange-traded funds investor In this education guide, you ll get answers to common questions about exchange-traded funds,

More information

Taxes and the Immediate Future: What to Do Now? September 2010

Taxes and the Immediate Future: What to Do Now? September 2010 Taxes and the Immediate Future: What to Do Now? September 2010 As we approach a very contentious election season, one in which the balance of power, and therefore economic policy, appear subject to substantial

More information

Exchange-Traded Funds

Exchange-Traded Funds Exchange-Traded Funds Exchange Traded Funds (ETF s) are becoming popular investment vehicles for many investors. Most ETF s are cost effective, broad market funds. We have put together a layman s explanation

More information