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Take Shelter from the 2013 Tax Storm

Take Shelter from the 2013 Tax Storm. Chad Smith CFP®, ChFC , CLU. The Impact of Taxes. Taxes financially impact most major decisions in our lives:. How we save How much we save Where to establish a business When we give to charities When we give to our family How to plan for college.

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Take Shelter from the 2013 Tax Storm

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  1. Take Shelter from the 2013 Tax Storm Chad Smith CFP®, ChFC, CLU

  2. The Impact of Taxes Taxes financially impact most major decisions in our lives: How we save How much we save Where to establish a business When we give to charities When we give to our family How to plan for college • Where to shop • Where to buy property • How to invest • When we sell investments • When to retire • Where to retire • How to plan for death

  3. How Many Days America Works to Pay for Various Spending Categories • Housing and household operation • State / local taxes • Federal taxes • Health and medical care • Food • Recreation • Transportation • Clothing and Accessories • All others Source: The Tax Foundation calculations based on data from the Department of Commerce, Bureau of Economics Analysis

  4. Year End Planning • December 31, 2013 is simply the last opportunity to take many actions that can save you taxes this year • 2013 has seen more tax change than any year since 2001

  5. What Changed • American Taxpayer Relief Act of 2012 • Passed by Congress on January 1, 2013 • Partial resolution to the tax side of the “Fiscal Cliff” • Continued many of the Bush Era tax cuts

  6. What Changed • Patient Protection and Affordable Care Act (PPACA) • Commonly called “Obama Care” • PPACA is aimed at reducing the number of uninsured Americans and reducing the overall cost of healthcare • The Act created several new taxes that start this year

  7. New for 2013 • Beginning in 2013 the health care reform law imposes a 3.8% surtax on net investment income for taxpayers above the threshold • Interest • Capital gains • Qualified dividends • Passive Income • Increases in capital gains and dividend rates

  8. 2013 Year End Planning • Annual review items • Tax strategies • Contribution • Additional deferral items • Gifting • Timing strategies

  9. Annual Review Items • Family Dynamics • Health • Employment • Location (Moving) • Risk Profile

  10. Annual Review Items • Beneficiary review • Estate documents • Required minimum distributions • Retirement cash flow plan • Asset allocation* review and rebalance • Debt review • Insurance review • Life, property, casualty and flexible spending accounts and health savings accounts • *Asset allocation does not assure or guarantee better performance and cannot eliminate the risk of investment losses.

  11. Contributions • Employer sponsored plan • Employees • Employers • IRAs • Contributions • Rollovers • Roth IRA • Non-deductible IRA

  12. Additional Deferral Options • Annuities • Cash value life insurance • Tax efficient investments

  13. Gifting • Charitable contributions • Outright gifts • Charitable trust planning • Gifts to family • Outright gifts • Gift to trust for the benefit of your family • College savings • 529 plans* *By investing in a plan outside your state residence, you may lose available state tax benefits. 529 plans are subject to enrollment, maintenance, administration/management fees & expenses. Make sure you understand your state tax laws to get the most from your plan. If you make a withdrawal for any other reason, the earnings portion of the withdrawal will be subject to both states and federal income tax & a 10% federal tax penalty. As with any investment, it’s important to fully consider the plan’s objectives, risks, charges and expenses before investing.

  14. Timing Strategies • Tax loss harvesting • Dividend and capital gains review • Payment of estimated state tax and local taxes • Distributions from retirement plans • Roth conversion • For business – the timing of expenditures • Stock options • Bonus income

  15. Action Items What you should bring for a comprehensive review?

  16. In Summary • Annual review items • Tax strategies • Contribution • Additional deferral items • Gifting • Timing strategies

  17. Action Items • Schedule your annual review

  18. Contact HD Vest To download the PowerPoint presentation for this live webinar visit hdvest.com/reinvent18 or call (800) 742-7950.

  19. H.D. Vest Financial Services® is the holding company for the group of companies providing financial services under the H.D. Vest name. Securities offered through H.D. Vest Investment ServicesSM, Member: SIPC Advisory services offered through H.D. Vest Advisory ServicesSM 6333 N. State Highway 161, Fourth Floor, Irving, TX 75038 972-870-6000

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