The SECURE Act + Planning Considerations for Individual Investors/Taxpayers

The SECURE Act + Planning Considerations for Individual Investors/Taxpayers

 

LUTZ BUSINESS INSIGHTS

 

the secure act + planning considerations for individual investors/taxpayers

nick hall, investment adviser

 

As often happens in Washington, speculation is just that and Congress acts on its own timeline. The Setting Every Community Up for Retirement Enhancement (SECURE) Act was introduced earlier in the summer of 2019 and passed through the House of Representatives at that time. The bill, which proposed several changes to retirement plans and other tax legislation, appeared to be stuck in the Senate and seemed to be something that would not be given life until 2020, if ever.

 However, at the eleventh hour just before Christmas, there was a final push that got the SECURE Act slipped into an appropriations bill. This appropriations bill was required to be passed by Congress to avoid another government shutdown. The bill was quickly passed through Congress and then ultimately signed by President Trump on December 20.

The SECURE Act affects both individual taxpayers and business owners. There are substantial changes to 401(k) plans and other small business retirement plans as a part of this Act. For purposes of this article, I will focus the attention on the major changes made by this bill that will affect individual retirement plans and other planning items for individual taxpayers.

 

IRA Stretch Provisions Eliminated (for most beneficiaries) in Favor of New 10-Year Distribution Rule

One of the most significant changes as part of the SECURE Act is the elimination of the previous law allowing  beneficiaries to “stretch” IRAs. The previous law allowed beneficiaries of retirement plans and IRAs to stretch distributions over their life expectancy, or over the oldest applicable trust beneficiary’s life expectancy if a trust was named. The new law mandates most non-spouse beneficiaries who inherit retirement plans or IRAs after January 1, 2020, to draw down the account now over a 10-year period.

Under this new 10-year rule, there are no mandated distributions annually. Rather, the law simply states that the entire account must be emptied by the end of the tenth year following the year of inheritance. While this offers some flexibility to beneficiaries as to timing of distributions during that 10-year period, it is, in essence, a tax increase on IRAs. Considering many beneficiaries are often much younger than the original account owners, the new 10-year rule is much harsher than the old standard of stretching over one’s remaining life expectancy.

It is important to note the exceptions to this law—certain designated eligible beneficiaries who are not subject to the new 10-year rule. The list of those beneficiaries include:

  1. Spousal Beneficiaries (Most Common)
  2. Disabled Beneficiaries
  3. Chronically Ill Beneficiaries
  4. Individuals who are not more than ten years younger than the decedent
  5. Certain minor children until they reach the age of majority

The most common class of people from this list is spousal beneficiaries. Spouses will still have the ability  for a spousal rollover, allowing them to stretch distributions over their own life expectancy versus a much stricter 10-year period.

The 10-year rule exception for minor children applies only to a child of a retirement plan or IRA owner. Meaning, a retirement account inherited from a grandparent, aunt, uncle, or other relative would still follow the 10-year distribution rule. The old stretch rule only applies until the minor child reaches the applicable age of majority in his/her state of residence, and then the new 10-year distribution rule goes into effect.

Consequences and Considerations Due to Death of Stretch/New 10-Year Distribution Window

It is important to remember that any retirement plan or IRA beneficiary designation trumps what is indicated in a will or trust. Thus, an essential part of estate planning is ensuring designated beneficiaries on retirement plans and/or life insurance coordinate with the rest of the estate plan.

Commonly, individuals designate a trust as the primary or contingent beneficiary of a retirement plan for greater control or an extra layer of protection for a spouse, children, or grandchildren. These trusts must have language in them to allow them to qualify as a “see through” or “tax qualified” trust to preserve the old stretch provision. Some of these trusts are restrictive in that only applicable RMDs from Inherited IRAs are allowed to be distributed each year. In the case of the new 10-year rule, the only year that technically has a RMD is the tenth year following the death of the owner.

Having the whole IRA or retirement plan distributed in the tenth year could have adverse consequences from a tax standpoint, especially for large retirement accounts and beneficiaries in higher tax brackets. Secondarily, other “see-through” trusts are set up to keep any distributions from Inherited IRAs inside the trust. This result may be undesirable given that trust tax rates are much more compressed than individuals’ tax rates, hitting the top tax bracket at around $13,000 of taxable income.

The challenges mentioned above around the 10-year rule should lead many to reevaluate their retirement beneficiary designations. In light of the new rule, I would recommend those who are charitably inclined to consider naming a charity or multiple charities as a beneficiary to receive a portion or all of certain retirement accounts. The 10-year draw down rule will adversely impact beneficiary children who are in a very high tax bracket themselves. In some cases, it will mean losing 50% of the RMD to Federal and state taxes.

One planning opportunity that may arise due to the new 10-year rule is the option to name a charitable remainder trust (CRAT) as a beneficiary of a retirement plan. A CRAT is an irrevocable trust that makes fixed income payments to annuitants/beneficiaries for an established length of time. These fixed payments are based on a percentage of the assets in the trust, and the current maximum length of time is 20 years. The caveat is that any assets remaining in the trust after 20 years, or the specified length of time, must then be transferred to the charity or charities indicated within the trust document.

Because the SECURE Act is so new, there is no precedence on this strategy. I would recommend consulting with an experienced estate planning attorney. Regardless, I expect to see people giving charities much greater consideration to naming them as beneficiaries of retirement plans and IRAs going forward.

 

Required Minimum Distributions (RMDs) to Begin at Age 72

The previous rule stated RMDs from a retirement plan (retired workers) or IRA must begin at age 70 ½. This arbitrary age caused confusion relating to the timing of the first distribution and life expectancy factor used in calculating one’s annual RMD. The new law will now push the first RMD to age 72 for anyone turning 70 ½ on or after January 1, 2020. It’s important to note that individuals who turned 70 ½ or 71 in December 2019 are grandfathered in under the old rules and are still required to take an RMD in 2020. The new RMD rule will match the old rule in that the first distribution technically does not have to be made until April 1 following the year an individual turns 72. However, if the first RMD is delayed until that following year, a subsequent second RMD must also be taken before December 31 of an individual’s 73rd birthday year.

For many of our clients, this is welcome news because it delays taxes associated with the RMD. We often talk to individuals about the “retirement income gap”. Otherwise known as the time between one’s retirement and taking Social Security retirement benefits and RMDs. Upon retiring, many individuals see a dramatic drop in income for a period until they begin Social Security and mandated distributions from pre-tax retirement accounts. A popular recommendation is to maximize lower tax brackets during this period by converting funds from a pre-tax to a Roth IRA. The new RMD age of 72 helps lengthens that “retirement income gap” for many people and allows for a greater period of tax planning.

 

Qualified Charitable Distributions Still Permissible at Age 70 ½

Interestingly, even though the RMD age was pushed back to age 72, Qualified Charitable Distributions (QCDs) remain permissible once an individual turns age 70 ½. Individuals may still take up to $100,000 annually from an IRA and gift it to a 501©3 charity(s). Although it will not offset mandated income the first year and a half, QCDs taken before age 72 will lower the future RMD for an individual by reducing the IRA account balance. Starting at age 72, the QCD will reduce the then-necessary RMD.

 

Traditional IRA Contributions Allowed Beyond Age 70 ½

The old rule disallowed Traditional IRA contributions due to old age, restricting individuals from making contributions after turning age 70 ½. Beginning this year, individuals who remain working or have spouses who have earned income through wages and/or self-employment are permitted to make Traditional IRA contributions beyond age 70 ½. There is little benefit to individuals making traditional IRA contributions after age 70 ½, given the income limit to deduct contributions is still fairly low (AGI of $75,000 for Singles and $124,000 for Married Joint Filers in 2020) and individuals have to begin taking RMDs at age 72 anyway.

However, one advantage of this new law applies to potential backdoor Roth IRA contributions for high-income earners. Individuals who still have earned income and high AGI, are now allowed to make backdoor Roth IRA contributions. This is done by making non-deductible Traditional IRA contributions that were previously exempt in the year someone turned 70 ½. One caveat is that post-age 70 ½ deductible Traditional IRA contributions will reduce any QCDs by the amount of cumulative deductible Traditional IRA contributions.

 

Other Miscellaneous Provisions of SECURE Act

  • 529 plans can now be used for apprenticeship programs. This includes books, fees, supplies, and other required equipment of the program.
  • 529 plans are now permitted to be used for up to $10,000 of qualified loan repayment of student loans. Additionally, $10,000 can be used to pay debt on each of the 529 plan beneficiaries’ siblings. This change is retroactive to 2019.
  • The Kiddie Tax reverts back to previous laws before 2018. Per the kiddie tax, unearned income for children above $2,200 (like Social Security survivor benefits) will again be taxed at the parents’ tax rate and not subject to the compressed trust tax rates like it was in 2018 and 2019.
  • Deduction of qualified tuition and related expenses remains effective through 2020.
  • The AGI hurdle rate to deduct qualified medical expenses remains at 7.5%–extended for tax years 2019 and 2020.
  • Individuals who receive taxable stipends or non-tuition fellowship income may make IRA or Roth IRA contributions beginning in 2020.

ABOUT THE AUTHOR

402.827.2300

nhall@lutz.us

LINKEDIN

NICK HALL, CFP® + INVESTMENT ADVISER

Nick Hall is an Investment Adviser at Lutz Financial with over eight years of industry experience. He specializes in comprehensive financial planning and investment advisory management services.

AREAS OF FOCUS
  • Financial Planning
  • Investment Advisory Services
  • Retirement Planning
  • Income Tax Planning
  • Social Security and Medicare Planning
  • Education Planning
  • Investment Product Research
  • Small Business Owners
  • High Net Worth Families in Transition
AFFILIATIONS AND CREDENTIALS
  • Financial Planning Association of Nebraska, Member
  • Certified Financial Planner
EDUCATIONAL BACKGROUND
  • BSBA in Finance and Business Management, Eller College of Management - University of Arizona, Tuscon, AZ
COMMUNITY SERVICE
  • Mount Michael Benedictine, Alumni Board President-Elect
  • Lutz Gives Back, Committee member
  • United Way, Volunteer
  • Salvation Army, Volunteer
  • Omaha Home For Boys, Volunteer
  • Susan G. Koman Race for the Cure, Volunteer

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Omaha, NE 68154

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Hastings, NE 68901

P: 402.462.4154

LINCOLN 

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Lincoln, NE 68508

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GRAND ISLAND

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Grand Island, NE 68803

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It’s Time to Review Your Personal Umbrella Policy

It’s Time to Review Your Personal Umbrella Policy

 

LUTZ BUSINESS INSIGHTS

 

it’s time to review your personal umbrella policy

joe hefflinger, director and investment adviser

 

Don’t just think, “that will never happen to me.” That’s how one of my new clients recently responded when I asked the amount of her personal umbrella coverage. She sighed and then proceeded to tell me how a few years back, her college-aged daughter had returned home during a school break and got into a car accident that injured the driver of the other car. While the wreck was her daughter’s fault, she hadn’t been drinking or speeding. It was just an accident, something that could happen to anyone.

Over the next 18 months, the injured party required over ten operations, which produced hospital bills alone of over $1 million. My client’s jaw dropped when the plaintiff’s attorney brought a lawsuit against her (the owner of the car) for over $6 million! After months of back and forth between each side’s attorneys, they finally reached a settlement for a little under $2.5 million (with about 1/3 going for medical bills, 1/3 going to the injured party and 1/3 going to the plaintiff’s attorney). The whole ordeal took almost two years to finalize from the time of the accident.

Thankfully, my client had met with an insurance advisor a few years before this event, who had strongly encouraged her to increase her existing personal umbrella policy from $1 million to $5 million, which she did. So, my client didn’t have to pay one cent of her own money towards legal defense costs or the final settlement amount. It was all handled by her insurance carrier. Her only expense was to cover the small deductible on her auto policy.

That being said, it was still an extremely stressful time period for my client and her family. But, can you imagine how much more stressful this would have been for my client had she not bumped up her insurance coverage?

 

What is a Personal Umbrella Policy?

How an umbrella liability policy worksA personal umbrella policy (PUP) is an extension to the liability protection offered by your existing auto and homeowner’s policies (or condo, renter’s, etc.). The diagram to the left illustrates how your PUP comes into play. Keep in mind the deductible on your PUP would be satisfied by your underlying home/auto coverage.

In addition to increasing the limits of those other policies, your PUP may also add additional liability coverage or do away with exclusions in the underlying policies. However, there can be substantial variation in policies, so be sure to read the fine print. Don’t just assume that a particular situation is covered. If it’s important to you, confirm with your insurance advisor. Also, keep in mind this is separate from any malpractice insurance you may have, as your PUP won’t cover damages you may cause in your professional work.

Before I go any further, I feel compelled to point out that our firm doesn’t currently sell insurance of any kind. So, my only motive in writing this is to make you more informed about your potential umbrella needs, not to sell you a policy. Also, the following advice is informed in part by recent discussions I’ve had with some of the top personal injury lawyers, estate lawyers and insurance advisors who serve clients in Omaha, NE.

 

How Personal Injury Damages are Calculated

In Nebraska, there are four elements that make up the potential damages in a personal injury lawsuit: (i) medical bills; (ii) economic damages (e.g., lost wages); (iii) pain and suffering; and (iv) permanency.  Other states have similar elements, although there is some variation. For example, some states also allow for punitive damages (although these wouldn’t be common in a typical accident scenario).

Compared to other states (e.g., CA, FL, NY, OH), Nebraska isn’t known for producing large awards for personal injury cases. However, awards or settlements in the $3-5 million range do happen in Nebraska, and there’s nothing preventing even higher awards if the right fact pattern is present.

One of the advisors I spoke to, for purposes of this article, indicated there had been a personal injury settlement in Nebraska of nearly $10 million. Keep in mind that Nebraska law will only apply if the action which caused the injury occurred in Nebraska.  If the claim arises in another state, that state’s laws will apply.  If that injury happens to be in a more litigation-friendly state, then you could potentially be subject to an even larger lawsuit.

 

Examples of Potential Claims

I find that most people have a hard time giving this topic the attention it deserves unless you can paint a picture for them of how these types of scenarios could play out. So, I asked two local attorneys to do just that (one a personal injury plaintiff’s attorney and the other an insurance defense attorney). Here are two scenarios that have the potential to create large claims against you:

  • You cause injury to a high-income individual. Think of a Neurosurgeon in his early 40’s making well over $1M a year. He’d have to try to mitigate his damages, but if afterward, he can only earn $100k a year. He’d have a very large potential claim for economic damages (lost wages) alone.
  • You cause injury to someone who now requires 24-hour care for the rest of their life, particularly if the inured person is younger with a long-life expectancy. Regardless of their income, this could create a large potential claim for medical bills, pain and suffering, and permanency.

In addition to a car accident, here are a few other scenarios that could lead to an injury where you could be deemed liable:

  • Boating/jet ski/wave-runner accident
  • ATV accident
  • Injury at your home pool, hot tub or lake house
  • Deck collapses
  • Trampoline accident
  • You make an inflammatory comment on social media
  • Your dog bites someone
  • A contractor is injured while working at your home
  • You have a party at your house and a guest drives home under the influence of alcohol and injures someone, or that happens when your teenager has a party at your house when you’re out of town

The list goes on.

 

How Much does a PUP Cost?

The good news is that a PUP is typically one of the cheapest forms of insurance. While these types of claims do happen, they are still extremely rare, and the coverage is priced accordingly. That being said, pricing can vary based in part on the following:

  • Your personal risk profile. If you have youthful drivers, multiple properties, a home pool, boats, ATVs, etc. then your premium will be higher.
  • Your insurance score. This is a combination of your exposures, loss history and credit rating.
  • Where you live. Carriers must file rates in each state they do business, and some rates are higher than others due to the legal climate in that state.

Just to give you a general sense of what potential costs can look like (at least in Nebraska), here is a sample of recent PUP pricing I’ve seen:

  • $1 million: $200-$400 per year
  • $2 million: $350-$500 per year
  • $3 million: $450-$650 per year
  • $5 million: $600-$750 per year
  • $10 million: $1,500-$1,900 per year

Bottom line: bumping up your coverage isn’t going to break the bank. Also, it’s usually best to bundle your PUP with your home and auto coverage to receive the best pricing.

 

Don’t Forget Uninsured/Underinsured Motorist Coverage

If you were to include extra umbrella coverage for uninsured/underinsured motorists (UM/UIM), it’s likely your pricing would be higher (e.g., an additional $200-$400) than the costs quoted above. This covers you in the event you are injured by someone else in an auto accident, and their insurance and available assets are inadequate to cover your damages.

All the experts I spoke with agreed that this was important coverage to add. Be sure to ask about this coverage as not all carriers offer it, and it’s capped at certain amounts by others. Also, if you’re a high-income earner and your family relies on you for support, it’s essential to have appropriate amounts of life and long-term disability insurance.

A related (though rare) type of coverage is for Third Party Liability. It’s like UM/UIM, but responds to events other than auto accidents where you are injured, and the other party can’t satisfy your claim.

 

How Much Coverage Do I Need?

A common answer you will hear is to insure up to the amount of your assets. However, your exposure to liability is not limited to your net worth. For example, if you have $1 million in assets and only get $1 million in insurance coverage, that doesn’t stop someone from suing you for $2 million (or more), especially if the plaintiff’s attorney thinks they have a very strong case. Keep in mind it’s not just your current assets that are at risk but also your future earnings (or future inheritance) because a large award may stay with you until it is satisfied.

Here are factors, in addition to your net worth, that place you at a higher risk of liability warranting the purchase of a larger PUP:

  • Youthful drivers
  • Home pool or house on a lake
  • Boat or ATV
  • Second home/other property (particularly in a more litigious state)
  • Serving on multiple non-profit boards
  • Higher profile in the community (doctor, lawyer, athlete, entertainer, politician, etc.)

Based on the discussions I’ve had with other experts in this area, I’ve developed a few suggestions. At a minimum, if your net worth is under $5 million, make sure you insure at least the amount of your assets plus an extra $1 million buffer above that amount. If you have a higher net worth or one or more of the factors above that place you at a higher risk, bump up your amount accordingly.

We have lots of clients with at least $5 million of coverage, and some who have at least $10 million. Some of the insurance advisors I spoke with have clients with up to $50 million of coverage (though this is very rare).  With respect to UM/UIM umbrella coverage, the insurance professionals I spoke to agreed that $1 million was a fair amount in this area.

 

Work with Your Team of Advisors and Make an Informed Decision

If you are someone with a higher net worth, I encourage you to work with an independent insurance professional who can help you evaluate your needs, shop around for the best options, and give you access to the top insurance carriers. Certain carriers specialize in providing coverage at higher amounts with enhanced policy options (e.g., Chubb and PURE). I find that most new clients I meet with are arguably under-insured when it comes to their PUP. This may be due, at least in some situations, to their working with insurance agents who primarily serve a lower net worth clientele.

Case in point: I’ve recently met with two different doctors, both with a net worth near $10 million, each with a house on a lake, boats, and multiple teen drivers. Each of these doctors had a PUP of only $1 million. I doubt that would have been the case had they been working with an insurance advisor who regularly works with higher net worth clients.

While you’re at it, if you have a higher net worth, I also suggest you discuss all of this with your estate attorney to get their input. They might have additional ideas on asset titling or other advice to better protect your assets. Your financial planner should be able to provide input in this area as well.

 

Why Take the Risk?

The types of claims described in this article are rare, but they do happen. The good news is that the coverage to protect yourself from these low probability events is relatively inexpensive. When the cost to materially increase your coverage in many cases is only a few hundred dollars a year, why take the risk?

 

Important Disclosure Information

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Lutz Financial), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Lutz Financial.  To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.  Lutz Financial is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice.  A copy of Lutz Financial’s current written disclosure statement discussing our advisory services and fees is available upon request.

ABOUT THE AUTHOR

402.827.2300

jhefflinger@lutzfinancial.com

LINKEDIN

JOE HEFFLINGER, JD, CFP® + DIRECTOR & INVESTMENT ADVISER

Joe Hefflinger is a Director & Investment Adviser at Lutz Financial with over 14 years of relevant experience. He specializes in providing both financial planning and investment advisory services.

AREAS OF FOCUS
  • Financial Planning
  • Investment Advisory Services
  • Business Owners
  • Retirees
  • Corporate Executives & Professionals
AFFILIATIONS AND CREDENTIALS
  • Financial Planning Association, Member
  • Society of Financial Service Professionals, Member
  • Nebraska State Bar Association, Member
  • Omaha Bar Association, Member
  • Omaha Estate Planning Council, Member
  • Certified Financial Planner™
EDUCATIONAL BACKGROUND
  • JD, Creighton University School of Law, Omaha, NE
  • BS in Economics, Santa Clara University, Santa Clara, CA
COMMUNITY SERVICE
  • Partnership 4 Kids - Service League, Past Board Member
  • Omaha Venture Group, Member
  • Christ the King Sports Club, Member

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OMAHA

13616 California Street, Suite 300

Omaha, NE 68154

P: 402.496.8800

HASTINGS

747 N Burlington Avenue, Suite 401

Hastings, NE 68901

P: 402.462.4154

LINCOLN 

115 Canopy Street, Suite 200

Lincoln, NE 68508

P: 531.500.2000

GRAND ISLAND

3320 James Road, Suite 100

Grand Island, NE 68803

P: 308.382.7850

Am I Ready to Retire? Finding Your Sweet Spot

Am I Ready to Retire? Finding Your Sweet Spot

 

LUTZ BUSINESS INSIGHTS

 

Am i ready to retire? finding your sweet spot

justin vossen, investment adviser, principal 

If you could trade places with Warren Buffett, would you do it? While you would immediately be worth billions of dollars, you would also be 88 years-old. Perhaps you would consider trading places with a recent college graduate? You may be 22 years old again, but you could also be starting over: career, family, lifestyle, and location, coupled with the fact that the average college graduate has more than $28,000 worth of student loans (Institute for College Access and Success), it may not be worth it for you to go back?

While these are some extreme examples, the point is that your answer probably depends on your current situation and its relationship to the alternative. Factors such as your age, financial situation, and life perspectives affect how you would answer switching places with another. These considerations often factor in financial planning as there is no right or wrong answer, only “your” answer.

We do financial planning for clients every day, and we hear many of the same questions. Many clients come to us asking, “what is normal when it comes to retirement? When is the typical time to retire? What does everyone do in retirement? How much does everyone spend? How much does the average retiree travel? When do people start Social Security? How much do most people save each year?”

Often, clients come in looking for answers based on what their friends, neighbors, and co-workers are doing. However, we view our job as providing the roadmap to get to the “right answer” for their own personal situations. The answers to their individual situations may differ, but their roadmaps may be similar.

Ultimately, one’s roadmap can be viewed as an algebra equation. There are many variables to this equation, some we can control and others we cannot. So, it’s important to isolate the variables we can control, and incorporate the ones we can’t, to get to the right answer. Most of the time, the question of which variable we need to solve for differs with each family.

The Key Variable: Spending in Retirement

Spending is often the last variable solved for in retirement, but it may be the most critical. Many falsely assume that the age or timing of retirement is more important to the success of the outcome. However, your lifestyle may be the biggest determinant on when you can retire, and if you will be fulfilled during retirement. One thing we have consistently found is that most people underestimate what they will spend annually. They also fail to leave any room for unexpected expenses that could come about in the future.

An old rule of thumb was that 4% is the proper amount of your assets that you can spend each year in retirement and maintain corpus. However, there are a few things wrong with this generalization. First of all, if your assets are tax-deferred, you could be losing 10-50% of your distribution to taxes, depending on how much you pull out each year and the state you live. Also, the 4% rule came from a time in history when bonds were paying 5-6% per year. Now they are yielding less than 2% in many cases. These two things alone can cause a massive over-assumption.

On the flip side, many facets of life may bring about reduced expenses in retirement. Rotating on to Medicare may cut your health expenses by 75%. You may eventually pay a mortgage off. Your kids will (hopefully) be off the payroll. Others don’t account for the general slowing in their spending habits because of age and the reduced desire to do expensive activities, such as travel.

Before you take the retirement plunge, it is VITAL that you spend some time examining your current and future spend rate to make sure you can have a successful retirement. It’s challenging for someone to ratchet back their lifestyle to fit their budget into the funds they’ve saved for retirement after the fact. This self-examination may be eye-opening and humbling, but one that you could regret not doing after taking the retirement plunge.

Timing of Retirement

Sometimes the timing of retirement is out of one’s control. Sometimes, due to an unfortunate illness, family issue, or loss of a job forces retirement under duress. In this case, the variable we solve for in the retirement equation is someone’s age. This could potentially require adjustments in the spend or lifestyle to accommodate. Often this is not an ideal scenario and requires some planning immediately so as not to jeopardize the future.

Others who have an exact age in their mind for retirement need to plan as early as possible. Savings rates must be met and monitored to make sure that you are advancing at a pace that will allow for it to happen. If retiring before Medicare eligibility, one of the most significant expenses will probably be healthcare. Is this being factored in? Those who retire “early” may have a lot of changes occur over the years in the tax code. Do their funds have the ability to be flexible upon distribution? This means having the ability to “tax optimize” your funds needed from various accounts such as Roth IRAs, IRAs, 401-ks, and taxable accounts. This allows you to minimize your taxes on distributions in any given year whatever the tax code changes bring.

Sometimes people continue to work because they don’t know if they have enough to retire. It’s essential to, at least, establish a timeline in the future and work back from it. If not, you cannot reasonably plan, and savings becomes arbitrary and lacks direction. Often this leads to more immediate gratification in the present and a lack of savings because one doesn’t know how much it will take in the future. This is an “ignorance is bliss” concept that too many people use in their retirement approach.

Managing to a Number

Often, many people tend to base retirement on getting their savings to a number. Arbitrarily let’s say that this number is $1,000,000. A person saves to the point that their assets reach $1,000,000 and then at that point, they feel that they can retire.

The problem with this is that the number you need has more to do with how much you spend, and how long you will live. One variable is easy to calculate (spending), and one is not (life expectancy). Does the amount saved fit a reasonable timeline?

 

Predicting the Future

Even with advanced planning, you may find that you have over or underestimated some assumptions in retirement. These assumptions and their compounding effect over time may be critical to the success of your outcome. We find that many overestimate the returns that they will receive. For example, since 1926, the S&P 500 has returned 10.14% annually as of 6/30/2019. We see many people use that historical proxy as the basis of their future returns. This proxy is overly simplistic and contains a massive oversight. Generally, we would recommend that your portfolio will inevitably include some more conservative investments like bonds and other asset classes that aren’t the S&P 500. This time period also takes us through the industrial and technological revolution in a country with rapid economic growth. That growth is now decelerating (albeit still growing at a good pace) from its industrial boom period. A reasonable rate of return must be ascertained with more than historical factors in mind.

If you plan to retire, there are many other “future” assumptions that need to be taken into consideration. What are the assumptions for travel, living expenses, long-term care, medical costs, and taxes? On the income side, what are the assumptions for social security, pension, rental income, or even a future business sale? These all have an impact on today and future years as when factoring in assumptions for growth rates and inflation. Many of these assumptions are general, but most can vary from family to family.

YOUR Retirement Sweet Spot

Another thing our experience has taught us is that it’s okay not to know exactly when you will retire, what you need, or even how much you will spend to the penny. What is important is that you make some reasonable assumptions and make sure you leave enough room or “cushion” for the unexpected.

However, to create a roadmap to your destination, you need to pick a starting place on the map. There will inevitably be some forks in the road as time passes, but planning will allow you to navigate those twists and turns easier. Most importantly, planning for everything you know, while leaving some room for error, will give you peace of mind for when you finally decide to retire!

 

 

Important Disclosure Information

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Lutz Financial), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Lutz Financial.  To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.  Lutz Financial is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice.  A copy of the Lutz Financial’s current written disclosure statement discussing our advisory services and fees is available upon request.

ABOUT THE AUTHOR

402.827.2300

jvossen@lutzfinancial.com

LINKEDIN

JUSTIN VOSSEN, CFP® + INVESTMENT ADVISER, PRINCIPAL

Justin Vossen is an Investment Adviser and Principal at Lutz Financial with over 20 years of relevant experience. He specializes in wealth management and financial planning.

AREAS OF FOCUS
  • Financial Planning
  • Wealth Management
AFFILIATIONS AND CREDENTIALS
  • Certified Financial Planner™
  • Financial Planning Association, Member
EDUCATIONAL BACKGROUND
  • BSBA in Economics and Finance, Creighton University, Omaha, NE
COMMUNITY SERVICE
  • St. Augustine Indian Mission, Board Member
  • Nebraska Elementary and Secondary School Finance Authority, Board Member
  • St. Patrick's Church, Trustee
  • March of Dimes Nebraska, Past Board Member

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Family Office Millennial Educational Series: Financial Literacy Basics

Family Office Millennial Educational Series: Financial Literacy Basics

 

LUTZ BUSINESS INSIGHTS

 

Family Office Millennial Educational Series – Financial Literacy Basics: Beginner’s Guide

Nick Hall and Josh Jenkins of Lutz Financial cover savings plans, insurance basics, and credit & debt, along with a Q&A session.

 

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OMAHA

13616 California Street, Suite 300

Omaha, NE 68154

P: 402.496.8800

HASTINGS

747 N Burlington Avenue, Suite 401

Hastings, NE 68901

P: 402.462.4154

LINCOLN 

115 Canopy Street, Suite 200

Lincoln, NE 68508

P: 531.500.2000

GRAND ISLAND

3320 James Road, Suite 100

Grand Island, NE 68803

P: 308.382.7850

Being Mindful of the Social Security Tax Torpedo & Medicare Surcharges

Being Mindful of the Social Security Tax Torpedo & Medicare Surcharges

 

LUTZ BUSINESS INSIGHTS

 

being mindful of the social security tax torpedo & medicare surcharges

nick hall, investment adviser

 

Social Security and Medicare are programs often at the forefront of retirees’ minds. The claiming strategies and rules can be very confusing for the average person. To complicate matters, timing decisions on claiming Social Security retirement benefits coupled with the withdrawal strategy decisions from an investment portfolio impact the amount of Social Security benefits that are taxed. In a related manner, higher income households need to be mindful of Medicare surcharges on Part B and Part D when going about determining withdrawal strategies in retirement.

Taxation of Social Security Benefits

The Social Security system is such a generous program that they tax people twice– pay/benefits are taxed on the way in (wages) and taxed upon receipt later in life. Jokes aside, under current law as little as 0% of retirees’ benefits are taxable but as much as 85% of retiree benefits are taxable for higher income households. However, a large portion of people fall somewhere in between in which some of their Social Security benefits are taxed but not the entire 85%. There is a calculation called provisional income which is used to calculate the amount or percentage of Social Security benefits that are taxable. Other income sources such as interest, dividends from investments, capital gains, rental income, pensions, IRA distributions, etc. affect this provisional income number.

It is in this range where William Reichenstein and William Meyer, head of research and CEO of Social Security Solutions, respectively, say people need to have an awareness of the self-coined phrase “tax torpedo”. The “tax torpedo” refers to the sharp rise and fall in marginal tax rates caused by taxation of Social Security benefits. I will highlight the “tax torpedo” in action in a hypothetical example below:

Sam and Sally Smith: Born in 1953 (Turn 66 this year), $50,000 of combined Social Security benefits, $15,000 of dividends from taxable investments, Sally $5,000 of pension income, and $30,000 of capital gains.

With the additional 50,000 of income and using the provisional income calculation, only $21,500 or 43% of Sam and Sally’s $50,000 annual Social Security retirement benefits are taxable. Assuming they filed the standard deduction, they would have an approximate taxable income of only $45,000 which places them in the middle of the 12% marginal Federal tax bracket. Even though they had $100,000 of income from Social Security and other sources, less than half of Social Security benefits would be subject to Uncle Sam. In fact, Sam and Sally could have up to $92,000 of other income (assuming the same $50,000 of annual Social Security) before the full 85% of Social Security benefits are taxable.

The Tax Torpedo in Action

People can get into trouble with respect to the “tax torpedo” when it comes to their withdrawal strategy from the investment portfolio during the distribution phase in retirement. In the above example, Sam and Sally might think it is a good idea to leak some money out of their traditional rollover IRA that came from an old employer’s 401(k) plan. On the surface, it appears they can take another $30,000+ out of the IRA each year and stay in the 12% Federal income tax bracket. However, what people fail to realize is that adding additional income from other sources inadvertently causes more of Social Security benefits to be taxable and increases the marginal tax rate of the transaction.

In Sam and Sally’s example, an extra $30,000 IRA distribution would cause $15,000 more of Social Security benefit taxation or a total of $36,500 to be taxable in that year. Sam and Sally’s new taxable income would be virtually doubled at approximately $90,000. More importantly, this creates about $12,500 in income that is now taxed at the 22% Federal bracket versus the much lower 12% Federal bracket. Assuming Sam and Sally are Nebraska residents and using a 6% Nebraska state tax, they added roughly $9,350 of additional income tax by innocently trying to leak out $30,000 from their pre-tax IRA while they were in a low tax bracket. Further, the tax torpedo doesn’t additionally adversely affect those whose high income already places them in a situation in which the maximum 85% of Social Security benefits are taxable.

Medicare Surcharges

For higher-income households in retirement, the acceptance of the full 85% of Social Security benefits being subject to tax is simply the reality. Another important concern begins to creep in for people who are over 65 and on Medicare. This concern relates to the income limits associated with Medicare Part B and Part D. A majority of the population will pay $135.50 per month for Medicare Part B premiums. However, high income households with modified adjusted gross income (MAGI) of over $170,000 for married filers ($85,000 for single filers) must begin paying an Income Related Monthly Adjustment Amount (IRMAA) or Medicare premium monthly surcharge. For Medicare purposes, income from two years prior affects the current years’ Medicare Part B premiums. The chart below details the Medicare Part B premiums based on income:

 

If your yearly income in 2017 (for what you pay in 2019) was You pay each month (in 2019)
File individual tax return File joint tax return File married & separate tax return
$85,000 or less $170,000 or less $85,000 or less $135.50
above $85,000 up to $107,000 above $170,000 up to $214,000 Not applicable $189.60
above $107,000 up to $133,500 above $214,000 up to $267,000 Not applicable $270.90
above $133,500 up to $160,000 above $267,000 up to $320,000 Not applicable $352.20
above $160,000 and less than $500,000 above $320,000 and less than $750,000 above $85,000 and less than $415,000 $433.40
$500,000 or above $750,000 and above $415,000 and above $460.50

Source: https://www.medicare.gov/your-medicare-costs/part-b-costs

 

As you can see, the highest income households end up paying $325/month more per individual for Medicare premiums. This equals $7,800 annually per married couple. Even the first jump represents a $1,296 increase in Medicare Part B premiums for a married couple. Unlike Social Security, Medicare surcharges are a cliff and the surcharges will be charged even if you exceed the MAGI threshold by $1. In addition to Medicare Part B, Medicare Part D (or Prescription Drug Coverage) includes a monthly surcharge as seen in the chart below:

 

If your filing status and yearly income in 2017 was
File individual tax return File joint tax return File married & separate tax return You pay each month (in 2019)
$85,000 or less $170,000 or less $85,000 or less your plan premium
above $85,000 up to $107,000 above $170,000 up to $214,000 not applicable $12.40 + your plan premium
above $107,000 up to $133,500 above $214,000 up to $267,000 not applicable $31.90 + your plan premium
above $133,500 up to $160,000 above $267,000 up to $320,000 not applicable $51.40 + your plan premium
above $160,000 and less than $500,000 above $320,000 and less than $750,000 above $85,000 and less than $415,000 $70.90 + your plan premium
$500,000 or above $750,000 and above $415,000 and above $77.40 + your plan premium

Source: https://www.medicare.gov/drug-coverage-part-d/costs-for-medicare-drug-coverage/monthly-premium-for-drug-plans

Two-Year Lookback and Request for Reconsideration of IRMAA Charges

The two-year lookback with respect to income can cause many people to pay high Medicare surcharges when initially going onto Medicare or certain times during retirement. However, the Social Security Administration is surprisingly forgiving when it comes to appealing these higher rates if there has been a significant life event that happened to give cause to an income spike or a reduction of income going forward like a sale of a business, inheritance, employer stock grants or deferred compensation, retirement, death of a spouse, etc. If you have had one of these major life events and now have a much lower income, it is most likely worth filing a request for reconsideration.

Planning for Tax Torpedo and Medicare Surcharges

An important tax planning strategy that we recommend to clients is Roth IRA conversions, the act of purposely moving money from Traditional IRAs to Roth IRAs. A great opportunity to do this is when people are in the first few years of retirement or what I call the “retirement income gap”, the time period before taking Social Security benefits or being required to take minimum distributions from pre-tax IRAs. The effectiveness of this strategy depends on delaying Social Security benefits and before RMDs happen at age 70 ½ to maximize lower tax brackets while not having to worry about the tax torpedo.

Because the Medicare surcharges are implemented on a cliff schedule, it becomes critically important to plan around this when possible during the distribution phase or determining a portfolio withdrawal strategy. Those with large pre-tax IRAs and big RMDs at age 70 ½, very large taxable accounts, pensions, rental income, or other higher ordinary income can be pushed into Medicare surcharge areas. Utilizing Roth IRA conversions and other tax strategies to accelerate income while people are in low tax brackets is a great solution to lower future income and manage Medicare surcharge cliffs. This can not only protect them against future tax rate increases but it can help minimize taxes at age 70 ½ and lower RMDs which kick off income that may adversely affect tax rates or Medicare premium surcharges.

The presence of the tax torpedo of Social Security benefits and Medicare premium surcharges add an extra layer of complexity for people in retirement. Developing a disciplined retirement withdrawal strategy and advanced planning can lower overall taxes during retirement by lessening the impact of the tax torpedo or helping avoid Medicare premium surcharges. As always, please consult with your CPA about any complex tax related question regarding these topics.

ABOUT THE AUTHOR

402.827.2300

nhall@lutz.us

LINKEDIN

NICK HALL, CFP® + INVESTMENT ADVISER

Nick Hall is an Investment Adviser at Lutz Financial with over eight years of industry experience. He specializes in comprehensive financial planning and investment advisory management services.

AREAS OF FOCUS
  • Financial Planning
  • Investment Advisory Services
  • Retirement Planning
  • Income Tax Planning
  • Social Security and Medicare Planning
  • Education Planning
  • Investment Product Research
  • Small Business Owners
  • High Net Worth Families in Transition
AFFILIATIONS AND CREDENTIALS
  • Financial Planning Association of Nebraska, Member
  • Certified Financial Planner
EDUCATIONAL BACKGROUND
  • BSBA in Finance and Business Management, Eller College of Management - University of Arizona, Tuscon, AZ
COMMUNITY SERVICE
  • Mount Michael Benedictine, Alumni Board President-Elect
  • Lutz Gives Back, Committee member
  • United Way, Volunteer
  • Salvation Army, Volunteer
  • Omaha Home For Boys, Volunteer
  • Susan G. Koman Race for the Cure, Volunteer

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We tap into the vast knowledge and experience within our organization to provide you with monthly content on topics and ideas that drive and challenge your company every day.

Toll-Free: 866.577.0780  |  Privacy Policy

All content © Lutz & Company, PC

 

OMAHA

13616 California Street, Suite 300

Omaha, NE 68154

P: 402.496.8800

HASTINGS

747 N Burlington Avenue, Suite 401

Hastings, NE 68901

P: 402.462.4154

LINCOLN 

115 Canopy Street, Suite 200

Lincoln, NE 68508

P: 531.500.2000

GRAND ISLAND

3320 James Road, Suite 100

Grand Island, NE 68803

P: 308.382.7850

Is the Traditional Bypass Trust Outdated?

Is the Traditional Bypass Trust Outdated?

 

LUTZ BUSINESS INSIGHTS

 

Is the traditional bypass trust outdated?

justin vossen, investment adviser, principal

 

Many early-retirement Boomers feel comfortable that their estate plan is in order, having put their estate plan in place when they had younger children. With adult children, and the increase in the estate and gift tax exemption amounts, many feel that there is little planning to be done. However, upon review, we see plans that may need adjusting due to the recent changes in tax laws. Specifically, those plans with the AB Trust/Bypass trust structure.

How the AB trust/Bypass Trust Structure Works

With the traditional bypass trust, when the first spouse dies, the bypass trust is funded with an amount equal to the applicable exclusion amount in order to minimize federal and state estate taxes. Any remaining marital assets would transfer to the surviving spouse via a separate marital trust, typically. 

Today, that amount is $11,400,000; meaning that all assets would be moved into the bypass trust if the estate is less than $11.4 million. Anything over that $11.4 million would go to the surviving spouse via the marital trust. Most folks do not have $11.4 million of assets in their name; so generally, most assets will flow to the bypass trust when trusts contain inflexible formulas for funding at death.

Assets owned by the deceased spouse receive a basis adjustment at death. However, assets placed in the bypass trust will NOT receive a second basis step at the surviving spouse’s death. This is a key worry in today’s estate planning environment. Any assets passed outright to the spouse or placed in a marital trust, WOULD receive a second step at the surviving spouse’s later death. However, the bypass trust would allow for the growth of those assets to occur outside the surviving spouse’s estate. This structure is written to use the client’s maximum estate exclusion at the first passing to primarily avoid estate tax.

 

Why Does/Did This Structure Make Sense?

Attorneys and planners used this bypass trust structure because estate tax avoidance was a primary concern when individuals passed away a handful of years ago. For example in 2001, the estate and gift tax exclusion was $675,000; and if you did not use that exclusion on the first death, it died with you. If you owed estate tax for amounts of assets higher than $675,000, you would have had to pay a tax of 55% on that amount. The estate tax used to be extremely punitive. Therefore, good estate planners would make sure to use the full $675,000 exemption amount at the first passing via the bypass trust. This shielded those assets and any growth from future estate taxes on the second passing. 

Advantages of the Bypass Structure:

Creditor protection: This varies from state to state, so consult an attorney to understand your particular situation.

Spendthrift protection: A couple can predetermine how the surviving spouse benefits from the trust and protects the money for future generations. This also provides control of the assets for the benefit of the future generation. Also, this could shield the assets from a future spouse in case of divorce or from a comingling of assets in a mixed family situation. This could avoid the children being accidentally disinherited.

Probate: The assets in the bypass trust would avoid probate when the surviving spouse dies.

 

Disadvantages of the Bypass Structure:

New Laws: Today, two major things have happened, the first being the $11.4 million exclusion amount and the second was the advent of portability in 2011. Portability allows for the surviving spouse to actually “port” the amount that is unused by the first spouse which is then added to their own exclusion amount. Thus, the surviving spouse could have a $22.8 million estate and gift exclusion, as well as essentially two steps in basis if both spouses’ steps are used. The estate and gift tax percentage has also dropped to 40%, still punitive but lower than before. So, the bypass structure may no longer be needed in many cases.

Expense: Over a lifetime, the bypass trust structure is costly to create and perhaps a costly burden to administer as it requires its own tax return and administration.  

Taxes: The bypass trust has a compressed (high) tax structure so careful considerations to allocations and income distribution need to be considered.

Today – What Could I Be Doing?

You need to consult your estate attorney on what is most appropriate to use in your particular situation.  However, a few things should be considered:

Portability: If your assets are substantially less than the $11.4 million exemption, the portability provision has given rise to a simplified approach. This provision allows individuals to leave all of their assets to the surviving spouse and transfer their exemption to them. This allows the couple to protect $22.8 million from estate taxes without using the bypass trust planning. While this does NOT protect it from creditors or future spouses, it is a simple way to avoid the estate tax. However, keep in mind that these increased exemption amounts are due to sunset in 2026 to their pre-2018 levels.

Disclaimer Provisions: Many attorneys are drafting flexibility into plans by the use of disclaimers or “Clayton” disclaimers for federal tax planning. With this trust planning, when the first spouse dies, the surviving spouse receives the assets of the deceased spouse. At that time, the surviving spouse then has the OPPORTUNITY to make a disclaimer election. This disclaimer election would allow the assets to pass directly into a bypass or martial trust. This allows for the surviving spouse to use all or a portion of the deceased spouse’s estate exclusion amount. 

Why would you want to leave the surviving spouse with a decision to make at an emotional time? The reasons to do this type of disclaimer would be to provide flexibility as the laws change over time. As mentioned, the current estate and gift exemption is scheduled to sunset at the end of 2025. Given the political climate, it may make sense to provide flexibility in the plan to do what is best at the time of the first passing.

 

What Should I Do?

There is not a one-size-fits-all solution for anyone with estate planning. Family dynamics, balance sheets, asset structure, and legislation continue to change as people’s lives evolve. You may not be able to achieve all of your objectives and goals with one solution, but you can get pretty close. Ultimately, creating the optimal wealth transfer plan requires an evolving strategy refined by you and your trusted advisors over time.

 

 

IMPORTANT DISCLOSURE INFORMATION

PLEASE REMEMBER THAT PAST PERFORMANCE MAY NOT BE INDICATIVE OF FUTURE RESULTS.  DIFFERENT TYPES OF INVESTMENTS INVOLVE VARYING DEGREES OF RISK, AND THERE CAN BE NO ASSURANCE THAT THE FUTURE PERFORMANCE OF ANY SPECIFIC INVESTMENT, INVESTMENT STRATEGY, OR PRODUCT (INCLUDING THE INVESTMENTS AND/OR INVESTMENT STRATEGIES RECOMMENDED OR UNDERTAKEN BY LUTZ FINANCIAL), OR ANY NON-INVESTMENT RELATED CONTENT, MADE REFERENCE TO DIRECTLY OR INDIRECTLY IN THIS NEWSLETTER WILL BE PROFITABLE, EQUAL ANY CORRESPONDING INDICATED HISTORICAL PERFORMANCE LEVEL(S), BE SUITABLE FOR YOUR PORTFOLIO OR INDIVIDUAL SITUATION, OR PROVE SUCCESSFUL.  DUE TO VARIOUS FACTORS, INCLUDING CHANGING MARKET CONDITIONS AND/OR APPLICABLE LAWS, THE CONTENT MAY NO LONGER BE REFLECTIVE OF CURRENT OPINIONS OR POSITIONS.  MOREOVER, YOU SHOULD NOT ASSUME THAT ANY DISCUSSION OR INFORMATION CONTAINED IN THIS NEWSLETTER SERVES AS THE RECEIPT OF, OR AS A SUBSTITUTE FOR, PERSONALIZED INVESTMENT ADVICE FROM LUTZ FINANCIAL.  TO THE EXTENT THAT A READER HAS ANY QUESTIONS REGARDING THE APPLICABILITY OF ANY SPECIFIC ISSUE DISCUSSED ABOVE TO HIS/HER INDIVIDUAL SITUATION, HE/SHE IS ENCOURAGED TO CONSULT WITH THE PROFESSIONAL ADVISOR OF HIS/HER CHOOSING.  LUTZ FINANCIAL IS NEITHER A LAW FIRM NOR A CERTIFIED PUBLIC ACCOUNTING FIRM AND NO PORTION OF THE NEWSLETTER CONTENT SHOULD BE CONSTRUED AS LEGAL OR ACCOUNTING ADVICE.  A COPY OF LUTZ FINANCIAL’S CURRENT WRITTEN DISCLOSURE STATEMENT DISCUSSING OUR ADVISORY SERVICES AND FEES IS AVAILABLE UPON REQUEST.

ABOUT THE AUTHOR

402.827.2300

jvossen@lutzfinancial.com

LINKEDIN

JUSTIN VOSSEN, CFP® + INVESTMENT ADVISER, PRINCIPAL

Justin Vossen is an Investment Adviser and Principal at Lutz Financial with over 20 years of relevant experience. He specializes in wealth management and financial planning.

AREAS OF FOCUS
  • Financial Planning
  • Wealth Management
AFFILIATIONS AND CREDENTIALS
  • Certified Financial Planner™
  • Financial Planning Association, Member
EDUCATIONAL BACKGROUND
  • BSBA in Economics and Finance, Creighton University, Omaha, NE
COMMUNITY SERVICE
  • St. Augustine Indian Mission, Board Member
  • Nebraska Elementary and Secondary School Finance Authority, Board Member
  • St. Patrick's Church, Trustee
  • March of Dimes Nebraska, Past Board Member

SIGN UP FOR OUR NEWSLETTERS!

We tap into the vast knowledge and experience within our organization to provide you with monthly content on topics and ideas that drive and challenge your company every day.

Toll-Free: 866.577.0780  |  Privacy Policy

All content © Lutz & Company, PC

 

OMAHA

13616 California Street, Suite 300

Omaha, NE 68154

P: 402.496.8800

HASTINGS

747 N Burlington Avenue, Suite 401

Hastings, NE 68901

P: 402.462.4154

LINCOLN 

115 Canopy Street, Suite 200

Lincoln, NE 68508

P: 531.500.2000

GRAND ISLAND

3320 James Road, Suite 100

Grand Island, NE 68803

P: 308.382.7850