Daniel Morgan
Optimizing Your Retirement Portfolio: Advanced ...

By implementing a system that uses return stacking to enhance portfolio efficiency, applies probability of failure decision rules to optimize withdrawals, and strategically manages taxes across account types, retirees can significantly improve their financial security throughout retirement while maximizing their standard of living.

Optimizing Your Retirement Portfolio: Advanced Strategies in Design and Management
Daniel Morgan
Finding Income Alternatives in Today's Market: ...

How does one keep up with inflation when rates are still rather low and uncertainty at all time highs…

Finding Income Alternatives in Today's Market: Hard Money Lending as a Potential Solution for Retirees

Estate Planning 101

Estate Planning 101

You are never too young to think about estate planning. I know that even the term estate planning can feel touchy. Let’s be real: Estate Planning is a polite way of saying death and incapacity planning. No one WANTS to talk about it (well maybe estate planning attorneys do). While talking about death is a tough topic, it will occur. It’s worth planning what will happen to your assets after you pass away (or become unable to manage them – incapacity). Now, we are not estate planning attorneys, and we encourage you to seek out advice from one. But there are estate planning elements to everyone’s financial plan. There are easy steps many people can take to improve this overall plan.  

The Psychology of Wealth for People in their 20s and 30s

The Psychology of Wealth for People in their 20s and 30s

Have you gone to work antsy because you haven’t exercised in a while? Perhaps you planned to visit the gym before work, but time got away from you. Then at work, there’s 10% of your brain that’s thinking “I need to go to the gym”. You don’t concentrate, and you don’t maximize your day. The thought of needing to exercise ruins your productivity and the joy you could have at work. It’s a sense of distraction and a sense that you aren’t accomplishing what you know you could accomplish.

I bring up this feeling because it’s what many people in their 20s and 30s feel when it comes to saving/investing for retirement. I think most people in their 20s and 30s know that early investing is the most important thing they can do for their retirement funds. But when they don’t save intentionally, spending money creates a twinge of guilt that reverberates. “I need to save,” they think, “Why did I buy this?” This feeling takes away from the joy of living in the moment and enjoying what you just bought. It’s not just important to save early for investment reasons, but for the stability it brings to our psychological lives as well.

To be clear, this blog post isn’t about the math of saving/investing early (but you should) nor is it about the amount saved (but 10%-25% of income is a good ballpark to be in). It’s about the importance of CONSISTENT saving for the purpose of investing for retirement. There are 6 reasons why consistent investing is just as important (if not more important) than the actual amount saved. Only one reason is mathematical. The rest are psychological.

Business Exit Strategy Series – Private Annuity

Business Exit Strategy Series – Private Annuity

An annuity!? I’ll be honest, as an independent financial planner without any affiliation or incentive to sell particular products, I despise annuities (generally speaking). This is because you give up so much chance for asset growth for a guaranteed income stream. The fees are high, and the commissions taken by annuity sales-reps are typically very high. Why? Because they are so profitable for the annuity seller. I’ll go one step further to say that annuities prey on retired, older women. I’ll leave it at that. I don’t want to go down that rabbit hole. But I run into people all the time that have an annuity, either through work, personal purchase, or another means. For example, sometimes it’s a provided work benefit that your employer pays into, but you don’t. Then that annuity will be free money when paying out. So having an annuity isn’t necessarily bad. However, please reach out to us if you are thinking of purchasing an annuity. We really want to prove our point that annuities should only be acquired in rare circumstances.

Thanksgiving Special - Financial Conversations with Family

Thanksgiving Special - Financial Conversations with Family

With Thanksgiving approaching, many people will see their families. When we love our family, we want what’s best for them. Sometimes this involves conversations about money. However, money can be a taboo topic in American society, just as health and politics can create “awkwardness” at the dinner table. We all know that feeling when someone brings up a political conversation at a family dinner (advocating for either left or right views) and their deep intent is just to spout their viewpoint with the goal of asserting their viewpoint’s supposed superiority. We internally cringe. We can get the same feeling when someone brings up health or criticizes some else’s weight. We lump this into either someone trying to elevate themselves above everyone else or denigrate others below them. The position of our heart is very important before bringing up “touchy” subjects. Money is no different.

Here are 6 tips for talking about money with family

(Almost) Everything the Average Person Needs to Know About RMDs

(Almost) Everything the Average Person Needs to Know About RMDs

RMD stands for required minimum distribution. With some exceptions, when you turn 72, the IRS requires that you start taking money out of your 401(k), 403(b), 457(b), profit sharing plans, Traditional IRA, SIMPLE IRA, or SEP IRA. How much money you must take out depends on your age, your account beneficiary, and your account beneficiary’s age(s). Most people use the Uniform Lifetime Table (scroll halfway down) to calculate their RMD.

Business Exit Strategies Series - Self-Cancelling Installment Notes (SCIN)

Business Exit Strategies Series - Self-Cancelling Installment Notes (SCIN)

Do you own a business but have significant estate planning tax considerations? Do you need to generate income from the business to fund retirement? A SCIN might be right for you.

A SCIN is a variation of the installment sale. Recall an installment sale spreads out the capital gain of a business over multiple annual payments rather than recognizing it all at once. SCINs add a little twist to the usual installment sale.

Business Exit Strategy Series - Installment Sale

Business Exit Strategy Series - Installment Sale

Are you a business owner looking to exit your business? Do you need income from the business sale? Would you like to spread that income out over multiple years to reduce tax burden? An installment sale might be the best fit.

TD Ameritrade ends Roth Solo 401(k) starting December 1, 2022

TD Ameritrade ends Roth Solo 401(k) starting December 1, 2022

Do you have a Roth Solo 401(k) at TD Ameritrade? If so, you will lose the ability to make after-tax contributions to your account at TD Ameritrade by December 1, 2022. The good news is we can manage your Roth Solo 401(k) assets for you, you can keep your own TPA, and you can still make after-tax contributions to take advantage of the Mega Backdoor Roth strategy. To learn more about the transfer process, view our informational brochure.

What do Cash Balance Plans and Thanksgiving Have in Common?

What do Cash Balance Plans and Thanksgiving Have in Common?

Are you a small business owner? When you get older (above 50), a cash balance pension plan may be a good retirement plan to adopt. 401(k) plans are a great starting place for your business’s retirement plan, but it may be time to add on another plan if your income is in a high tax bracket.

With a 401(k) plan, your maximum annual addition is $61,000 per year (2022). Having a Roth 401(k) plan is even better, and utilizing the Mega Backdoor Roth strategy is an amazing place to start if you are a high income earner. But as you enter your 50s and the advantages of Roth are less pronounced, you may want to investigate reducing your tax-burden. This is especially true if you are in the top income tax brackets (32%, 35%, or 37%).

Enter the potential for a Cash Balance Pension Plan (CB Plan).

Roth Solo 401(k)s and the Mega Backdoor Roth Strategy

Roth Solo 401(k)s and the Mega Backdoor Roth Strategy

Are you a solo business owner earning $200,000+ annually?

You need to look into the Roth Solo 401(k) to super-charge your retirement savings. Imagine getting $61,000 into a “Roth” retirement account per year? The retirement savings are mindboggling. Investing $61,000 per year for 30 years at 8% annual growth compounded monthly would be worth $7,575,497 at retirement TAX-FREE.

To learn more, read our informational PDF here.

We can assist with setting up a Roth Solo 401(k), and we can manage the investments inside it. Give us a call at 571-969-1459 or email us at ryan@ifpinvest.com.

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Independent Financial Planning, LLC is a Virginia registered investment advisor.

Contact: 571-969-1458

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