Financial Planning Considerations from Quantum Financial Advisors

Oct 21, 2021

Dear Clients and Friends,

I hope this finds you well.  As we enter the final quarter of 2021, here are some important planning considerations, some of which may apply to you and your family and/or business.   Feel free to call me with any questions, concerns or needs in these areas.

IMPORTANT DEADLINES:

__ Take your Required Minimum Distributions from IRAs and other Retirement Plans.  If you are age 72 or older (recently changed from age 70), you must take a minimum amount out of your plan(s) each year.  The amount changes upward each year.

__ Review Health Insurance: Open Enrollment begins November 1 in most states and ends as early as December 15 or as late as January 31 depending on what state you live in (PA is January 15).  Make sure you have the plan that is best for you.  If you are on Medicare or will be enrolling, review and/or purchase Supplement insurance to cover what Medicare does not cover.  Call my colleague and health insurance expert, Dan Busatto, at 724-787-7828.

__ Medicare Enrollment: The Initial Enrollment Period starts 3 months before you turn 65 and lasts for 3 months after the month you turn 65.

IMPORTANT AS NEEDED:

__ Check to see if Maxing Deductible Contributions to Traditional IRA and/or other retirement plans is advisable.  If you are unsure, check with your accountant.

__ Take advantage of an employer’s Matching Contributions to a 401k, SIMPLE IRA or other plans.  This is an immediate return on your investment and it is foolish to forfeit it.

__ If in a lower tax bracket, consider Converting a Traditional IRA to a Roth IRA.

__ Review investment accounts and see if you should “Harvest Losses” to help minimize 2021 taxes.  Again, check with your accountant.

__ Review your income needs and Program Withdrawals from investment accounts accordingly.

__ Long Term Care Insurance: For most people this is the area of greatest financial risk.  If you are 50 or older, you should be considering how you would fund care if you need it, which most people do at some point in their lives.  And it isn’t a bad idea to consider before age 50.  I look at it holistically, identifying the potential financial risks, your projected income from pensions and investments, and designing insurance solutions to fill the gaps.

__ Review other insurance – Life, disability, auto, home, liability and business.

__ Review and update Beneficiary Designations on retirement accounts, Transfer-On-Death Accounts and Insurance policies.

__ Review Tax Withholding and/or Estimated Tax Payments and make sure to make the necessary payments by January 15.

__ If you have a “Flexible Spending Account” and you are not allowed to roll over balances to the next year, look for ways to pend your money before year-end.

__ Review your Charitable Giving.  Not only are you helping others, gifts can reduce tax liability if you itemize deductions.  Note that you may be able to make a Qualified Charitable Distribution from your IRA.

__ If you itemize deductions, Consider Moving Deductible 2022 Expenditures into 2021.  Again, check with your tax accountant to verify any year-end strategies.

__ If you haven’t done so within the last five years, or if you life situation has changed, Review Your Estate Planning (Wills, Powers of Attorney, Health Care Directives, Trusts)

One final note.  If you weren’t able to attend our Appreciation Dessert in September, I hope you enjoyed the video recently sent.  And if you have questions or need help with any of the above, please don’t hesitate to contact me.

Thank you and God bless,

Andre Weisbrod

Quantum Financial Advisors, Inc
604 McKnight Park Dr
Pittsburgh, PA 15237
412-367-9076