Category: Wealth Planning

From essential updates on the tax landscape and how to navigate it most efficiently, to tips on making the most out of the things in life you’re passionate about, our specialists are here to guide you with insights across the wealth-planning spectrum.

  • Three Essential Wealth-Planning Questions

    In a period of heightened market volatility and shifting tax landscapes, it’s wise to revisit your financial plan. Below are three strategic questions worth asking–and answering–now to fortify long-term financial health.

    Is Now the Right Time for a Roth Conversion?

    Converting a traditional IRA to a Roth can be especially compelling when account values sit lower, reducing the immediate tax bite. Future growth then compounds tax-free–and you hedge against potential rate hikes on the horizon.

    Key considerations:

    • A Roth conversion is irreversible once executed.
    • Pay the conversion tax with assets held outside the IRA to preserve retirement capital.
    • Factor in your life expectancy, years until required minimum distributions, current vs. anticipated future tax rates, and who will inherit the account.

    By modeling different tax-rate scenarios, we can pinpoint whether today’s market pullback creates a window of opportunity.

    What Are the Benefits of Tax-Aware Borrowing?

    Selling assets in a down market locks in losses. Instead, consider borrowing against low-cost, tax-advantaged credit lines or policy loans to fund near-term needs.

    Advantages include:

    • Preserving investment exposure for the recovery.
    • Potentially deducting interest costs against income, depending on loan purpose and structure.
    • Enhanced liquidity without triggering capital gains events.

    Work to set up appropriate facilities–whether a securities-based line of credit, a home-equity arrangement, or a policy loan–and establish guardrails to ensure borrowing aligns with risk tolerance and cash-flow needs.

    How to Safeguard Retirement Plans Against Market Swings?

    Protecting retirement income isn’t just about chasing yield; it’s about managing sequence-of-returns and longevity risks.

    Consider strategies such as:

    • Building a bond ladder or conservative fixed-income tranche to cover living expenses for the next 5-10 years.
    • Funding a longevity annuity to lock in lifetime income beyond a target age.
    • Stress-testing spending assumptions against adverse market scenarios and inflation.

    By creating a “floor” of reliable income and retaining upside potential in growth assets, retire with confidence–regardless of short-term gyrations.