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Portage County Farmers Market

Income Planning

By LouAnn Schulfer, AWMA®, AIF®
Accredited Wealth Management AdvisorSM
Accredited Investment Fiduciary®

When we meet with new prospective clients, we discuss the importance of an all-encompassing wealth management relationship rather than a transactional affiliation that would just help with a 401k rollover or to set up an investment account.  Income planning is often an otherwise overlooked piece that has the potential to save you a tremendous amount of money over time.

I’ve had a streak of new clients recently who are able to retire early.  The science of financial planning via computer generated projections and stress testing their portfolios show they have enough money to sustain their lifestyles in retirement.  The exciting discovery though came through the art of financial planning, including timing the sources of their income throughout retirement.

For two couples, we’ll plan to use non-retirement money that is not counted as ordinary income for a year or two of living expenses so that highly appreciated assets can be sold in that same window of time resulting in significantly favorable capital gains tax treatment.  For another couple, we’ll plan to use ROTH funds, which also won’t be counted as taxable income in the years leading up to Medicare eligibility in order to keep health insurance premiums lower than if they’d have used IRA funds which would be taxable as income.  For all, timing of future social security benefits will make difference in how they are taxed on all of their annual income.

Managing an investment account is important but your overall financial success can be enhanced when you include other aspects of wealth management, such as income planning.

LouAnn Schulfer is co-owner of Schulfer & Associates, LLC Wealth Management and can be reached at (715) 343-9600 or
Securities and advisory services offered through LPL Financial, a Registered Investment Advisor.  Member FINRA/SIPC.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.