Mathis Wealth Management

If your income exceeds $168,000 (MAGI) in 2026, the front door to a Roth IRA is closed. But the back door remains open. A Roth conversion moves money from a traditional pre-tax account into a Roth, and you pay taxes on that amount now. From then forward, growth is tax-free and qualified withdrawals come out tax-free.

Timing is everything. Lower-income years, job transitions, early retirement before Social Security, or slow business years create ideal conversion windows at lower tax rates. This strategy requires careful ex*****on and personal tax analysis and is not suitable for all investors. Consult your advisor before making moves.

As summer ends and fall begins, it’s time to think ahead to year-end. This is when you can execute tax moves that reduce your 2026 bill. Medicare decisions need attention before October 15 open enrollment. Charitable giving strategies work best when planned now. Education funding, investment rebalancing, required minimum distribution planning, Roth conversion timing. All of these start taking shape in the fall, not December.

Getting ahead on these conversations with your advisor now means you make thoughtful decisions rather than rushing to beat year-end deadlines. The time to plan is now.

Asset Allocation vs. Asset Location: Two Different Strategies.

Asset allocation is what most people know: the split between stocks, bonds, and other investments. It's foundational. But asset location is the quiet strategy that can be just as impactful. Asset location asks: which investment belongs in which account? Taxable brokerage? Tax-deferred IRA or 401k? Tax-advantaged Roth? Get this wrong and you pay unnecessary taxes year after year without realizing it. Get it right and you keep significantly more of what you earn.

Umbrella insurance is one of the most important and least discussed tools in family financial planning. It provides additional liability coverage beyond your home and auto policies, protecting assets if you're sued. A $1 million umbrella policy costs just $150-300 per year and covers accidents on your property, injuries from your dog, or car accidents where you're liable.

For families with substantial assets, this coverage is essential. It sits quietly in the background but could protect decades of hard-earned wealth if the unexpected happens.

Medicare Open Enrollment Starts October 15. Is your plan aligned with your actual health needs and lifestyle?

October 15 through December 7, you can review your Medicare coverage, switch plans, or make changes to your drug coverage. Health changes, relocations, and new medications may mean your current plan no longer fits. Don't assume last year's choice is still right. Instead, review your options carefully during this window. The stakes matter because your plan affects both out-of-pocket costs and access to your preferred doctors. Start your review now.

Since no one can predict market timing, what can you do?

First, keep working longer or part-time—even modest earned income reduces the need to sell shares during downturns.

Second, spend less initially if markets disappoint to give your portfolio room to recover.

Third, tap non-stock assets first during downturns—bonds, cash reserves, home equity—preserving stocks for recovery.

Fourth and most importantly, consult with an experienced advisor who designs withdrawal strategies around sequence risk. Retirement planning accounts for more than just average returns; it accounts for the timing of returns.

While properly allocating assets across categories for proper diversification is vital, maximum lifetime tax efficiency can be further enhanced by strategic placement of assets among taxable, tax-deferred, and tax-free accounts. Wealth Advisor Larry Mathis explains.

Asset Location Strategy: Place Investments for Tax Efficiency  - Mathis Wealth Management Asset allocation strategy matters, but so does asset location: strategically placing investments to reduce your lifetime tax burden.