Podcast Episode Details

Let's Talk About Taxes! Part 2

Season 1 Episode 24

Key Links

• [Link Needed for QCD/Tax preparation document Report that Matthew generates for clients. He references that if someone emails Colleen, we can get a sample of it for the show notes around the 12:34 mark of the episode]
• Gear Up Program to learn about taxes: https://checkpointlearning.thomsonreuters.com/GearUp
• Bob Keeblers site for education resources: http://www.keeblerandassociates.com/about
• Ed Slott's website for resources: https://www.irahelp.com/
• Michael Kitces' site: https://www.kitces.com/

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Important Show Note/Disclaimer: When Micah discussed doing paperwork for ROTH conversions/rollovers, he was referring to establishing standing instructions for the client with the custodian so that if a rollover is needed, the 'link' and permission has already been established. Micah was NOT suggesting that you have clients sign paperwork that is held until needed. This would be a huge compliance issue that we strongly discourage.

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Matt and Micah are back to talk about taxes! Last episode covered a lot of ground, but there was still a few key points that hadn't been addressed.

So, this talk covers expands upon the previous themes of bringing massive value to clients through tax planning and a solid communication of your expertise to the client. And as a showcase of the always pragmatic advice of the Perfect RIA hosts, they delineate key tax planning strategies for your benefit, as laid out below.

[#1 Tax Benchmarks ]

• Micah has a system for tax planning with clients that accounts for the next 30 years. He stresses the importance of looking forward and not in the rearview mirror. Because tax codes aren't static (nor are rates), dynamic adjustments are needed. Only forward-thinking moves can adequately handle this.
• And once this 30+ year benchmark is projected and established, then every tax move with the client is relative to the baseline number that is set. It's a very tangible, measurable way to plan for taxes. And keep in mind, the overall goal is save the client money, so the benchmark becomes a way of adjusting to taxes to make that happen.
• And one more vitally important aspect of this benchmark is that you have to communicate to clients in a graceful and effective way. Being able to articulate the plan in a way that keeps in mind the emotional aspects of writing X amount of dollars now to save money in the long run can take a lot of grace. Very important to consider.

[#2 Enhancing a Client's Tax Benefits Through Charity ]

• For tax planning, Matthew involves himself with client's and maximizes the return that his client's get for charitable giving. He says that giving to charities is not a means to an end for a tax break, but that it can still be used as a way to leverage tax benefit.
• They both also bring up the value of Qualified Charitable Distributions (QCDs), which can bring a lot of tax benefit. But Matthew also states that whoever is doing the tax preparation needs to be told about the QCD, or else it might go unreported.
• And to ensure that clients get the tax benefit they are entitled to, Matthew actually sends out tax letters to the tax preparers of his clients to make sure they know about any QCDs, so they can factor them in.

[#3 Asset Sales ]

• Rental properties, land sales, and other various business a

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  Published on 6 years, 8 months ago