Join Tom for a CE event on July 31!

On July 31, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of The Replacement of a Life Insurance Contract: The Good, The Bad and The Ugly.

On a rare occasion, a life insurance contract will have to be replaced. The Internal Revenue Service mandates strict rules as to the replacement and design of the new life insurance contract. Financial advisers need a keen awareness of the applicable sections of the Internal Revenue Code; the various types of life insurance contracts; and the unique features and benefits of each contract type. This presentation will walk the adviser through the replacement process and illustrate the “finished product” with a case study.

The Webcast will be held on Friday, July 31, 2015 at 1:30PM EDT. The course is approved for one hour of CPE and CE. To register for the class, please email us at hello@ttillery.com. Virtual Seating is limited.

Join Tom for a CE event on April 24!

On April 24, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of Personal Financial Planning & Community Property.

Marital property law affects all aspects of the personal financial planning process including: business interests, debt, estate, risk management and tax.
Your clients do not have to reside in a community property state in order for the community property rules to apply to their personal financial planning. The presentation will illustrate the application of community property law to the personal financial planning process, survey the history of Common and Community Property law, review the types of marital property ownership systems, and discuss the concept of ‘once community property always community property’ – regardless of jurisdiction.

The Webcast will be held on Friday, April 24, 2015 at 1:30PM EDT. The course is approved for one hour of CPE and CE. To register for the class, please email us at hello@ttillery.com. Virtual Seating is limited.

Join Tom for a CE event on January 30!

On January 30, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of Case Studies in the Generation-Skipping Transfer Tax in the Personal Financial Planning Process.

The various types of Generation-Skipping Transfers will be illustrated through case studies in the personal financial planning process. The presentation will review the history of the Generation-Skipping Transfer Tax; illustrate the various types of “skips” through case studies; as well as, assess how these “skips” impact the personal financial planning process.

The Webcast will be held on Friday, January 30, 2015 at 1:30 PM EST. The course is approved for one hour of CPE and CE. To register for the class, please email us at hello@ttillery.com. Virtual Seating is limited.

Join Tom for a CE event on December 5!

On December 5, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of Generation-Skipping Transfer Tax in the Personal Financial Planning Process.

Topics to be addressed will be: This presentation will review the history of the Generation-Skipping Transfer Tax, as well as detail how the various changes within its structure affect the personal financial planning process. Topics will include the various types of ‘skips,’ the implications of EGTRRA and ‘indirect skips,’ as well as a review of the various strategies in ‘preserving portability.’ The Webcast will be held on Friday, December 5, 2014 at 1:30 PM EST. The course is approved for one hour of CPE and CE. To register for the class, please email us at hello@ttillery.com. Virtual Seating is limited.

Join Tom for a CE Event on July 25!

On July 25, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of Updates in Estate Planning: A Review of 2014 Changes and Their Impact on Clients’ Estate Plans.

Topics to be addressed will be: an overview of the estate planning process: regulatory updates on the DOMA decision and it’s continuing impact on the personal financial planning process; standalone retirement trusts and asset protection; continued use of GRATs; the use of discounts for lack of marketability in estate planning. The Webcast will be held on Friday, July 25, 2014 at 1:30 PM EDT. The course is approved for one hour of CPE and CE. To register for the class, please email us at hello@ttillery.com. Virtual Seating is limited.

Pennies from Heaven & Inherited IRAs

Recently an adviser sent me the following email. The email had an attachment that indicated that a named beneficiary was to receive a taxable distribution as a result of the death of an IRA owner. The amount was small – relatively speaking – $38,000. The adviser’s question was:

“Tom, it looks like this company is going to give this guy a 1099-R on the death benefit.  Can that be avoided if he transfers the funds to another institution as an inherited IRA (option C) before year end?”

And the short answer, which I studiously avoid, is “Yes.” However, there is much more going on in the facts and circumstances which I do want to visit. The beneficiary has a singular opportunity which is now being offered to him, the waiver of the 10% early withdrawal penalty. A distribution made to a designated beneficiary of an IRA, after the death of the IRA owner, is not subject to the 10% premature withdrawal penalty, regardless of the age of your beneficiary: in this instance, a savings of $3,800. [Read more…]

Been to any good “events” lately?

Oh my, there must be something in the water – nationwide, or perhaps just the Piedmont region. Recently while visiting our offices in Washington, DC and Raleigh, NC, I had the opportunity to opine on Event Liability Insurance (ELI) with several of our clients. In each case the fact patterns were very similar.

One client had invested heavily in income producing real estate. There were a variety of properties in different locations; all geographically diversified (diversification is an excellent risk management technique). Additionally, limited liability companies (LLCs) were created for each of the properties, and there was even a master LLC as a member for each of the LLCs holding the real estate. Finally, each of the properties had General Liability Insurance coverage as did the Master LLC, and the client’s trust was named as an additional insured. Our office had done a very good job on managing the risk associated with income producing real estate. [Read more…]

Making a difference

This past week I was visiting Ashley Thiem, CPA / PFS in our new Paraklete® Financial, Inc. office in Charleston, SC. As we were making the rounds, I continued to be amazed by the number of individuals, and advisers, who want to retain the services of our firm. There is a definite desire on the part of consumers to engage a financial planning firm that does not manage assets or sell products.

One of the venues we visited was a large manufacturing operation. The business had been in the family for several generations and the next generation was about to “step up to the plate.” Their concerns were business continuity planning, income tax savings and better cash flow for the company—not that there wasn’t enough cash flow; but rather there was too much, which resulted in higher income taxes. [Read more…]

Boot Camp

Well it’s that time of year again. Presently at the firm we are transitioning from the Income Tax Review season into the CPA / PFS Live Review season. This tax season was particularly difficult for our clients and their advisers. The reality of the reinstatement of the Personal Exemption Phaseout and the limitation on Itemized Deductions became quite apparent to many of our clients. Also, the Net Investment Income tax, created to support the Affordable Care Act, gave shocking results to our clients, to say the least! Long story short, taxes are higher for almost everyone. [Read more…]

Stock pickers, market timers, and crystal balls

“The worst months to invest money in the stock market are October, January, and May. The others are February, June, November, March, August, April, September, July, and December.

Mark Twain’s sense of humor is reflected in his quote on investing – unfortunately, his investing experience was far from humorous. While his writing was very profitable, he lost a great deal of money as a result of his attempts at market timing and security selection. His initial foray into investing resulted in bankruptcy. [Read more…]