Category: Qualified Plan

Prosperity Proof #5: The Truth About Qualified Plans

In this final prosperity proof, we’re going to cover one of the most misunderstood financial vehicles: qualified plans. Job seekers today are taught to look for companies that offer qualified plans with an employer match–“It’s free money!” Plenty of financial advisors advocate for qualified plans, and plenty of clients funnel as much money as they can into said plans. While qualified plans are not bad, they cannot be considered a savings vehicle, or even the most viable retirement plan, when you consider the facts. When you look at the facts,

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Have I Saved Enough Money?

Andrew Walberg and I had been friends since first meeting in Mr. Carlson’s government class when we were juniors in high school.  He was so much fun to be around, always positive and upbeat.  I had not heard from him in a while so I was surprised to hear his voice on the other end of the telephone. “Hey, this is Andy.  How have you been? I’ve known you’re in the financial services business, but I have never taken the time to talk to you,” he started.  “I want to

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The Whole Truth About Qualified Plan Contributions (John & Jane Jones Pt. 3 of 9)

Mark Twain reportedly said that he tried to not let his schooling get in the way of his education.  I think he was describing a paradox similar to what most advisors know as the “arrival syndrome.”  Said in yet another way, your education should be an ongoing process.  Such is the case with your clients.  We recommend that you schedule regular discussions to help your clients understand the whole truth about money.  And, of course, we are totally biased in thinking the best way to help your clients, is by

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How do you include the state income tax for capital gains tax?

Increase your capital gains rate box by the state income tax rate. Increase your state income tax rate is 7% and your clients’ federal capital gains tax rate is 15%, then you’ll put 22% in your capital gains rate box. Please note: there is not a federal capital gains tax deduction for the state income tax paid as there is for federal income tax.  See the calculation below: This first part the software handles automatically. INCOME TAX [ezcol_1half]Federal Income Tax Rate  Federal Capital Gains Tax Rate State Income Tax Rate [/ezcol_1half]15%  15%  7% [ezcol_1half_end][/ezcol_1half_end]

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Truth Tip: Comparing Taxable vs. Tax-Deferred Accounts

We received this excellent question from a Truth Concepts user this week: Q. I am trying to do a comparison between using a qualified plan and a non-qualified plan.  I understand pretty well how to use the Qualified Plan calculator, however I want to show an “apples to apples comparison” assuming everything else is equal i.e. ROR, management fee, etc., but with the client paying taxes each year on their investment gains, so that at retirement the money they have to spend is tax free. A. That will be easiest

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Truth Tip, Qualified Plan

To get spread sheet detail, turn on “term ins. and emp. cost” button. (This works whether or not you have term insurance or employee costs that you wish to add.) Close anytime (top left corner of spreadsheet) and to view again, click button again and then “inputs.”

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