Brad Williams - Financial Planner

His 401(k) isn't a retirement account.

Barney is a serial entrepreneur.

He's an owner in 4 businesses.

Has 12 rental properties.

And still isn't done...

"𝙄 𝙙𝙤𝙣'𝙩 𝙡𝙞𝙠𝙚 𝙩𝙝𝙚 𝙞𝙙𝙚𝙖 𝙤𝙛 𝙧𝙚𝙩𝙞𝙧𝙞𝙣𝙜.".he said to me pointedly.

He didn't want to contribute to "retirement accounts."

Being a wheelin' dealin' mover shaker...

locking money away to age 59.5 seemed silly.

Then we started talking taxes.

He is a 37% federal/6% State marginal tax bracket earner.

Not long after Barney exits his businesses, he will be in a much lower tax bracket.

Our cash flow plan showed that...
→ each year he has > $200k in cash flow
→ not being allocated to anything purposeful
→ that tends to accumulate in cash for 12+ months

One of his businesses has 6 full time employees.

Folks that he said are like family to him.

People he hopes are with him for life.

Establishing a 401(k) for that business...
→ Allows Barney to shelter $24,500
→ reducing his tax bill by $10,535
→ gives his employees an option
→ to save for their own goals
→ and to participate in a
→ company match

It's not a retirement account for Barney.

It's an opportunity account.

The opportunity to reduce his lifetime tax liability.

The opportunity to reward a devoted team that he loves.

Send a message to learn more

Don't sell your Mom's house yet!

John Jr. has Durable Power of Attorney for his mom, Janet.

Janet is 96 and just moved into hospice.

John Jr. wants to sell her house ASAP.

Janet and John Sr. purchased the home in 1980 for $50,000

John Sr. passed away in 2005 when the house was worth $350,000.

The house is now worth $1,000,000.

Here's how cost basis works:

The original cost basis was $50,000 in 1980.

When John Sr. passed there was an adjustment.

50% of the cost basis stepped up to the 2005 value.

$175,000 + $25,000 = $200,000 is now Janet's cost basis.

If the house sells during Janet's life:
→ $1,000,000 (Sale Price)
→ Minus a $200,000 (Cost Basis)
→ Equals an $800,000 capital gain
→ Section 121 allows $250k to be excluded
→ So $550,000 of that gain would be taxable

The tax bill:
→ 20% Federal Tax = $110,000
→ 3.8% Net Investment Income Tax = $20,900
→ SC State Tax = $18,480
→ TOTAL TAX = $149,380

If the house sells after Janet passes:
→ John Jr. is the sole beneficiary
→ Cost basis steps up to $1 million
→ House sells for $1 million
→ No capital gain = $0 Tax Bill

Send a message to learn more

What are you retiring to?

In Retirement Planning, I look at these scenarios:
→ Earliest Retirement: When work becomes optional
→ Staggered: When one spouse retires before the other
→ Wind-Down: Gradually reducing hours and income

I analyze a mountain of information...
→ Income distributions
→ Catastrophic events
→ Medicare premiums
→ Lifetime tax liability
→ Cost of healthcare
→ Liability protection
→ Charitable giving
→ Major purchases
→ Spending needs
→ Long-Term Care
→ Debt repayment
→ Estate concerns
→ and more

It all matters.

The money matters.

But one thing matters more.

The life that you are retiring to.

Too many retire without a plan for their time.

Many end up going back to work.

Others end up feeling isolated and depressed.

A nest egg can make earning become optional.

What it can't do, is give your life purpose.

The money plan is important.

The life plan is imperative.

Send a message to learn more

Everybody says you need to specify a niche...

I've thought about this a lot over the years.

What would be the right niche for me personally?

Some ideas I've had:
→ Left-handed dentists with green eyes.
→ Engineers who play Wordle daily.
→ CEOs who tell dad jokes.

Ok, obviously I'm being silly.

Many have built successful businesses...
→ by defining a
→ narrow definition
→ of who they work with

I've never been able to commit to that.

Our clients cover a broad array of personal/financial circumstances.

They are lifelong savers.

They are high income earners.

They are beneficiaries of sudden wealth.

They are job creators and business innovators.

They are moms, dads, husbands, wives, and friends.

If I were to define a my niche, it's this...

I work with...
→ Successful people
→ who love their families
→ are fun to spend time with
→ and have an earnest desire to be
→ good stewards of their financial blessings

Send a message to learn more

Inherited Traditional IRAs can feel like a total tax nightmare.

But remember, income taxes are the result of financial blessings.

My clients are in their late 30s. 2 kids at home.

Sadly, they lost loves ones in 2015 and 2021.

They now have inherited IRAs from both.

Each IRA is subject to different rules.

Pre-2020 Rules:
→ Required Minimum Distributions
→ from an Inherited IRA can be stretched
→ over the lifetime of a Non-Spouse Beneficiary

2020+ Rules:
→ Non-Spouse beneficiaries
→ must distribute the inherited IRA
→ fully by the end of the 10th year
→ following the account owner's death

ALSO

→ If the original owner died after RMD age
→ the beneficiary must take RMDs
→ based on their life expectancy

Folks often take the minimum amount they have to.

And for 2020+ Inherited IRAs, they take a huge amount out in year 10.

In my clients' scenario,
→ waiting till year 10
→ would push them into
→ the 35% marginal tax bracket

Here's the thing....

They have a LOT of wiggle room in the 22% bracket.

Would you rather pay 22% or 35% in taxes on your inherited IRA distributions?

In this case being thoughtful about these distributions does the following:
→ Distributions taxed at the lowest potential average rate
→ Longer period of tax efficient growth for net amount
→ Six figure reduction of lifetime tax liability
→ Tax-Free legacy for their children

Being "old" can have its advantages...

Most folks get ZERO tax benefit for being charitable.

Why is that? The high standard deduction.

The 2025 Standard Deduction...
→ $15,000 (Single)
→ $30,000 (Married Filing Joint)
→ $17,000 (Single over 65 or Blind)
→ $31,600 (MFJ w/ 1 over 65 or Blind)
→ $33,200 (MFJ both over 65 or Blind)

To itemize, these must be > Standard Deduction
→ State/Local Taxes capped at $10,000
+ Medical Expenses > 7.5% of AGI
+ Mortgage Interest (with limits)
+ Gifts to Charity

If you CAN itemize,
→ only the amount above
→ the standard deduction
→ provides extra tax benefit

But if you are charitable, it pays to be "old."

I met with a couple today, both over 70.

Me: "Have you ever heard of a Qualified Charitable Distribution?"
Them: "No, we have not."

IRA owners over the age of 70.5 can
→ Make gifts to charity
→ directly from the IRA
→ of up to $108k per year

This is called a 𝗤𝘂𝗮𝗹𝗶𝗳𝗶𝗲𝗱 𝗖𝗵𝗮𝗿𝗶𝘁𝗮𝗯𝗹𝗲 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 (𝗤𝗖𝗗)

QCDs can be made from...
→ Inherited IRAs
→ Traditional IRAs
→ Inactive SEP IRAs
→ Inherited Roth IRAs
→ Inactive SIMPLE IRAs

Now for the fun part...

QCDs made from pre-tax IRAs...
→ Can satisfy a RMD
→ completely TAX FREE

Here's an example....
→ John is 75
→ 24% Bracket
→ RMD is $50,000
→ Gives $25k/yr to a charity
→ Takes the standard deduction
→ Cost of RMD (No QCD) = $12,000
→ Cost of RMD (Using QCD) = $6,000

If John writes a $25k check from his bank account...
He gets no tax benefit from being charitable.

If John cuts a $25k check directly from his Traditional IRA...
He reduces his tax bill by $6,000.

Bonus Info:
→ QCDs can be made to any 501(c)3
→ but not to Private Foundations & DAFs
_________________________________________
We help retirees minimize their biggest expense...𝗧𝗔𝗫𝗘𝗦.

DM 'Plan' to schedule a free consultation.

Send a message to learn more

You never know where value will come from...

I look for a number of issues through financial planning.

Most commonly...
→ Inconsistent investment strategy across accounts
→ Estate docs that are inconsistent with wishes
→ Contribution strategy misaligned with goals
→ Missing beneficiary designations
→ Insufficient insurance coverages
→ Lack of any income tax plan

But our process is very thorough.

So thorough in fact, I often find things I'm not looking for.

Some recent examples...
→ Old account being charged an $8 monthly service fee
→ Failure to notify insurance company of paid off loan
→ Incorrectly reported inherited roth IRA distribution
→ Wrong mailing address on property tax record

Do you need a deep clean of your finances?
_________________________________
We help family-first professional makes smart money moves.

DM 'Plan' to schedule a free consultation.

Send a message to learn more

A phone call on your birthday isn't enough...

I know multiple financial advisors...
→ With huge books of business
→ Making multi-six figure incomes
→ Who only speak to clients on birthdays

Their firms require a single annual review.

So these advisors consider the birthday call that review.

Perhaps that's what you have to do...
→ when you build a business
→ based on transactions
→ and not relationships

That's not and never has been who I want to be in this profession.

Our client experience looks like this...

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗣𝗹𝗮𝗻 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗠𝗲𝗲𝘁𝗶𝗻𝗴 (January - May)
• Discuss Life Changes
• Review Goals & Funding Levels
• Update the Financial Plan
• Investment Performance Review (Prior-Year)

𝗧𝗮𝘅 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴 & 𝗘𝘀𝘁𝗮𝘁𝗲 𝗣𝗹𝗮𝗻 𝗥𝗲𝘃𝗶𝗲𝘄 (March - July)
• Review Prior-Year Tax Return
• Identify Tax Planning Opportunities
• Review Charitable/Gifting Strategies
• Review Estate Plan & Beneficiaries

𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 & 𝗢𝗽𝗲𝗻 𝗘𝗻𝗿𝗼𝗹𝗹𝗺𝗲𝗻𝘁 𝗗𝗶𝘀𝗰𝘂𝘀𝘀𝗶𝗼𝗻 (August - November)
• Review Life, LTC & Property Insurance
• Review Health & Disability Insurance
• Discuss Medicare (𝘸𝘩𝘦𝘯 𝘳𝘦𝘭𝘦𝘷𝘢𝘯𝘵)
• Review Employee Benefits

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗣𝗹𝗮𝗻 𝗣𝗿𝗼𝗴𝗿𝗲𝘀𝘀 𝗠𝗲𝗲𝘁𝗶𝗻𝗴 (August - November)
• Perform Cash Flow Analysis
• Discuss Year-End Tax Planning Actions
• Discuss Upcoming Milestones
• Investment Performance Review (Year-To-Date)
_____________________________
We help family-first professionals make smart money moves.

DM 'Plan' to schedule a free consultation.

Send a message to learn more

Is 4 months worth $15,000?

Look what happened to Mary...
→ Bought a house in August 2022 for $300k
→ Lived in it as a primary residence
→ Sold it for $400k in April 2024

Tax time came around a few months ago.

She owed $15,000 in capital gains tax.

She was SHOCKED.

Thought she could exclude up to $250k in gains.

Here's why she couldn't...

The Section 121 Exclusion allows for:
→ Capital Gains to be excluded up to
→ $250,000 for single filers
→ $500,000 for joint filers
→ on the sale of a home

However, to be eligible you must:
→ Pass the ownership and use tests
→ which are having owned the home
→ and lived in it as a primary residence
→ for at least two of the five years preceding the sale

If Mary had sold the House in September 2024 she would have saved $15,000 in capital gains tax.
_______________________________________
We help family-first professionals make smart money moves.

DM 'Plan' to schedule a free consultation.

Send a message to learn more

Are you paying a lot for a little?

My newest clients had a Financial Advisor.

He was managing:
→ 2 Roth IRAs
→ 1 Traditional IRA
→ 1 Taxable Account
→ 1 Non-Qualified Annuity

They met once a year to review performance.

He charged 1.25% to manage the assets.

In my first meeting I determined:
→ Husband is taking RMDs, wife starts next year
→ RMDs exceed their need for income
→ Clients are charitable and aren't making QCDs
→ No asset location strategy, all accounts invested the same

In short, there was no thought given to income tax planning.

They were paying over $10k in fees annually for not much.

We are building a plan that will...
→ Reduce their lifetime tax liability
→ Enhance their ability to be charitable
→ Hand down a more tax efficient legacy
→ Simplify and streamline their investments
→ Create more risk protection for less expense
→ Unlock more opportunities for them to spend

Oh, and we end up being less expensive than the other guy.

The traditional wealth management model is broken.

High fees for nothing more than a model portfolio.

You deserve more than that.

Send a message to learn more

“How much money did you lose today?”

A close family member asked me that yesterday.

My answer….

“$0”

Did the value of my investments decline?

Yes, of course. Even more today.

Did I lose any money? No.

I’m invested for long-term growth.

At this moment, the S&P 500 has still doubled in value over the last 5 years.

If I were invested to generate retirement income I’d be happy that I was using a time-segmented approach. I’d know my near term income needs are well protected for enough time to allow the growth segment of my portfolio to recover.

It never feels good to watch account balances dip during a market downturn.

Do not let that feeling influence your willingness to follow a plan.

There may be opportunities to make a few minor tactical adjustments to portfolios during times of volatility but TIMING the market has proven to be an ineffective method for asset management.

The problem isn’t getting out, it’s knowing when to get back in. Missing out on a couple of keys days in a market recovery can be hugely detrimental to a portfolio’s long-term performance.

If you don’t have a professional to talk through your concerns during market events like we’ve experienced this week, I sincerely recommend you start interviewing financial planners to find someone who specializes in people like you.

It's not too late...

To make 2024 contributions to...
→ Traditional IRA
→ Solo 401k
→ Roth IRA
→ 529 Plan
→ SEP IRA
→ HSA

The deadline is April 15th.

If you file for an extension...
→ You have up to October 15
→ to make 2024 contributions to
→ Both the SEP IRA and the Solo 401k

IF you have already filed...
→ making any of these contributions
→ would require an amendment
→ to your 2024 tax filing

IF you haven't filed...
→ Don't wait to the last second
→ We're already down to the wire
→ So for the sake of your tax preparer's sanity
→ Get it done now (as in today) or file an extension

18 days to go!
_____________________
We help families make smart money moves.

'DM' Plan to schedule an introduction.

Send a message to learn more