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Accretive Wealth Blog

Irrevocable Life Insurance Trusts: A Valuable Tool You May Not Know

Wednesday, June 25, 2014

Seat BeltYou buy life insurance policies to provide for your loved ones after you are gone. If your estate is large, however, some of the insurance proceeds may end up going toward estate taxes—and that’s important because the estate tax rate is now 40%.

To shield the payout from your life insurance policy, you can set up an irrevocable life insurance trust (ILIT), which becomes the beneficiary of your life insurance and allows the proceeds to pass to your heirs without being subject to estate tax. Basically, the trust owns the policy. Continue reading “Irrevocable Life Insurance Trusts: A Valuable Tool You May Not Know” »

So What Are CRUTs and What Can They Do for Me?

Wednesday, June 11, 2014

CRUTYou may have heard of a CRUT, which is a rather unpleasant acronym that stands for charitable remainder unitrust. While the acronym may be unattractive, a charitable remainder trust can be a very valuable tool that high-net-worth individuals can use for estate planning, income generation, tax savings, and charitable giving.

Basics

There are a number of charitable remainder trusts and other trusts that allow you to pass on assets to a charitable organization, and the rules for each of them are quite complicated. Continue reading “So What Are CRUTs and What Can They Do for Me?” »

Trusts and Wills Can Prevent Complex Estate Problems

Friday, March 28, 2014

TrustsEven though it can be emotionally difficult, establishing a trust is a very important estate planning tool that can protect your family’s assets and determine what they will receive after your death. Properly designed trusts can also reduce the tax impact on your estate and help avoid probate.

Your goal is to maximize the wealth you leave to your heirs, and trusts are an invaluable tool. We will take a quick look at some basic information about common types of trusts: Continue reading “Trusts and Wills Can Prevent Complex Estate Problems” »

Traditional IRAs and Roth IRAs: What’s the Difference?

Tuesday, January 28, 2014

IRA vs ROTH IRAYou can save money for retirement with either a traditional individual retirement account (IRA) or a Roth IRA. Both offer valuable tax advantages, but there are significant differences between them. Tax season is coming up, so we thought it was a good time to look at those differences so that you can determine which type is right for you. Continue reading “Traditional IRAs and Roth IRAs: What’s the Difference?” »

Tax Rates Are Going Up—Are You Ready?

Tuesday, November 12, 2013

Some big changes to federal income tax rates went into effect this year. Investors, small-business owners, and high-earners could have a rude jolt when they file 2013 tax returns, so we’d like to explain the changes and suggest some steps you could take to minimize the burden.

Here’s a look at the changes in 2013 tax rates that we think will have the greatest effect on our clients and friends:

  • The federal rate for long-term capital gains has gone up from 15% to 20% for a single person with taxable income above $400,000 or a married couple with income above $450,000. People in a 25% or 35% tax bracket will continue to pay 15%, while those in a 10% or 15% bracket do not have to pay capital gains taxes. Continue reading “Tax Rates Are Going Up—Are You Ready?” »

Defined Benefit Pension Plans: Worth Considering

Wednesday, October 2, 2013

Employers have various ways to offer retirement benefits to their employees—and to themselves. The amount that a retiree will receive from defined contribution options such as 401(k) and profit-sharing plans is uncertain; all that is certain is the amount that is contributed.

Another option is a defined benefit plan (DB plan). As its name implies, the retirement benefits that an employee will receive are defined by the plan’s formula. Plan formulas vary according to the company, but typically benefits are calculated by using individual factors such as salary and length of employment. Continue reading “Defined Benefit Pension Plans: Worth Considering” »

Be Smart About Retirement

Wednesday, June 26, 2013

Last week we talked about saving for your children’s education, but it’s even more important to create realistic plans for your own retirement. While you want to do the best for your children, you don’t want to ignore your own interests and jeopardize your ability to live comfortably later on. Retirement lasts longer than it used to: A man who’s 50 years old now is expected to live to be 82, while a woman is expected to reach 85.

Many of us don’t realistically think about our retirement, if we think about it at all. Let’s take a look at some numbers from the National Institute on Retirement Security’s June 2013 report, The Retirement Savings Crisis: Is It Worse Than We Think? (The answer is a resounding yes.) Continue reading “Be Smart About Retirement” »