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Dashboard Wealth Advisors shares our thoughts on various
year-end planning topics.
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As busy Americans, we often have a notoriously short attention span which can result in using lists to actually “get things done”. The following is our small list of helpful Dashboard Wealth Advisors year-end thoughts. Please include us as you consider these for your own planning. We will be discussing these items during our conversations during the fourth quarter.
It’s that time of year again for open enrollment for Health Plans. If your plan is considered a high deductible plan ($1,300 for an individual and $2,600 family), strongly consider max funding a Health Savings Account and then DO NOT spend it unless you absolutely need to spend it on immediate medical care. Simply invest it and let it grow tax free until you retire!
Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-­free withdrawals are permitted. Additionally, each converted amount is subject to its own five-­year holding period.
Make sure you not only sign up for the maximum Long-Term Disability coverage that your employer offers, but ask if you can make your payments on an after-tax basis. By doing so, any disability payments received would then be tax-free!
Although nobody likes paying taxes, capital gains tax rates are still among the lowest ever. For joint filers, 15% (plus 3.8% Obama Care surcharge) capital gains rate extends up to $470,000 in Adjusted Gross Income, and over this capital gains are taxed at 20% (plus 3.8% Obama Care surcharge).
Although we love Roth IRA’s and Roth 401k’s more than any humans alive, unless your Adjusted Gross Income is less than approximately $150k, 401k contributions are often more beneficial on a traditional basis, NOT a Roth basis. If appropriate, there will be a window of time typically after retirement, but before a client takes social security to convert IRA’s to Roth IRA’s at a lower tax bracket!
As a follow up to number 4 above, if your children are new to the work force and are early in their “career earning potential”, oftentimes their contributions to the 401k should be on a Roth 401k basis. If they are having a hard time contributing a substantial amount based on lower salaries, this is a terrific opportunity for a potential gift from Mom and Dad!
Currently there is proposed tax reform to consolidate 7 tax rates down to 3, as well as numerous other initiatives. We will continue to monitor and incorporate this into our planning initiatives once/if they become law.
For the uniquely successful families that we work with, we challenge all parents whose children have earned income (even smaller amounts from odd jobs like babysitting, mowing lawns, etc.) to open and fund a Roth IRA. Use this as a teaching tool, and an incredibly powerful investment strategy for the next generation.
Remember that it’s been a solid investment year in 2017. However, there are many facets to one’s personal planning initiatives. Let’s make sure to schedule a year-end discussion about your personal Dashboard and help ensure that we’re maximizing all available opportunities for you and your family!
Investments mentioned may not be suitable for all investors. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Past performance is not a guarantee of future results. Investing involves risk and you may incur a profit or loss regardless of strategy selected. 
 
Raymond James Financial Services, Inc. and its advisor do not provide advice on tax issues, these matters should be discussed with the appropriate professional. 
 
Opinions expressed in the attached articles are those of the authors and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice.

Dashboard Wealth Advisors: 1520 Kensington Road, Suite 107, Oak Brook, IL 60523 // 630.203.3104
 
Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC.  Investment Advisory services offered through Raymond James Financial Services Advisors, Inc.  Dashboard Wealth Advisors is not a registered broker/dealer and is independent of Raymond James Financial Services. Raymond James Financial Services does not accept orders and/or instructions regarding your account by e-mail, voice mail, fax or any alternate method. Transactional details do not supersede normal trade confirmations or statements. E-mail sent through the Internet is not secure or confidential. Raymond James Financial Services reserves the right to monitor all e-mail.
 
Any information provided in this e-mail has been prepared from sources believed to be reliable, but is not guaranteed by Raymond James Financial Services and is not a complete summary or statement of all available data necessary for making an investment decision. Any information provided is for informational purposes only and does not constitute a recommendation. Raymond James Financial Services and its employees may own options, rights or warrants to purchase any of the securities mentioned in e-mail. This e-mail is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this message in error, please contact the sender immediately and delete the material from your computer.
 
This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of the professionals at Dashboard Wealth Advisors and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. 
 
Roth IRA owners must be 591⁄2 or older and have held the IRA for five years before tax-free withdrawals are permitted. Like Traditional IRAs, contribution limits apply to Roth IRAs. In addition, with a Roth IRA, your allowable contribution may be reduced or eliminated if your annual income exceeds certain limits. Contributions to a Roth IRA are never tax deductible, but if certain conditions are met, distributions will be completely income tax free. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion. 401(k) plans are long-term retirement savings vehicles. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 591⁄2 , may be subject to a 10% federal tax penalty. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.






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Dashboard Wealth Advisors · 1520 Kensington Road · Suite 107 · Oak Brook, Ill. 60532 · USA

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