310.361.7221 | Info@StephenPluhar.com | Los Angeles, CA

Progressive Tax, Investment, and Financial Planning

Tax Planning and Preparation

Stay ahead of changing regulations with our proactive approach. Our team stays up to date with the latest tax laws to ensure you're always compliant and well-prepared.

Streamline your tax obligations effortlessly. We guide you through the intricacies of tax planning and help you navigate any potential complexities that may arise.

Investment management

Unlock your financial potential with our comprehensive investment services. Our expert advisors provide strategic insights and personalized guidance to help you navigate the complexities of the investment landscape.

Whether you are planning for major life milestones or seeking to grow your wealth, we are committed to helping you make informed decisions and secure a prosperous financial future.

Life and Health Insurance

Protect what matters most with our range of insurance services tailored to safeguard you and your loved ones against unforeseen circumstances.

From life and health insurance to property and casualty coverage, our insurance specialists work diligently to assess your unique risk profile and offer solutions that provide you with peace of mind and financial security.

Helping families improve their lives through collaborative financial planning.

These calculations rely on two types of variables:

• Facts we know, like your age and income.
  
• Estimates we must make, such as predicting future increases in the cost of living and anticipated tax rates upon retirement.
  

Traditionally, financial planners used a combination of facts and estimates to devise a lifelong plan. However, this method had its drawbacks as life takes it course, and some estimates may prove incorrect. As a client of ours, we’ll remain connected with you to update your plan easily whenever needed, ideally we recommend twice a year. These minor yet regular adjustments significantly enhance the likelihood of achieving your goals.

No Adjustments

Regular Adjustments

Retirement Age & Income

Our algorithm is designed to predict the total value of your retirement savings, or nest egg, based on various factors such as your chosen retirement age, current savings, contributions, and risk tolerance. Subsequently, we formulate a meticulously optimized drawdown strategy aimed at securing a steady income flow that sustains your financial needs throughout your retirement years. In other words, never out living your money.

Investment Plan

Our engine provides tailored recommendations on allocating funds across different account types while optimizing payment strategies to minimize tax expenses and maximize retirement savings. By considering these factors comprehensively, we aim to help you make informed financial decisions that lead to enhanced tax savings and optimized retirement planning.

Debt Plan

Our team of advisors conduct a comprehensive assessment of your outstanding debts and strategically consolidates them to secure the most favorable interest rates available, ultimately enhancing your cash flow. It is not uncommon for individuals to experience a pleasant surprise when they discover reduced monthly debt payments as a result of our debt consolidation approach.

Insurance Plan

A sound financial plan encompasses insurance as a crucial component. Our engine offers personalized recommendations on the necessary insurance coverage to safeguard your future income in scenarios such as premature death or critical illness. By assessing your individual circumstances, we aim to provide guidance that ensures adequate protection and financial security for you and your loved ones.

Tax Reduction

Given the escalating national debt of over 22 trillion dollars and the fact that 92 cents of every tax dollar are allocated solely to Medicare and Social Security, it is evident that taxes will likely need to increase in the foreseeable future. The Congressional Budget Office is currently considering raising the highest tax bracket to around 64%, reminiscent of the tax rates seen in the 1970s. Presently, retirees may face over a 35% deduction from their IRAs/401(k)s due to taxes, in addition to Social Security taxation and rising required minimum distributions. Many financial advisors overlook the crucial tax-reduction conversation with their clients, though it is a paramount aspect of planning for a successful retirement. Our expertise lies in tax-reduction and elimination strategies, aiming to help you achieve a tax-free or substantially reduced tax burden during your retirement years.

Medicare

Medicare is another perfect example of making things overly complicated, that are actually quite simple. Medicare is an easy-to-use, easy-to-understand medical benefit, that is actually very rich, and covers you better than most any major medical plan, and for a lot less money. But there are so many letters, and so many terms… Part A, B, C, D, MediGap, MedSup, Advantage Plan, HMO, PPO, PFFS… and a partridge in a pear tree! Let us cut through all the jargon for you and make it simple and fun. Medicare is one of the richest retirement benefits you can have, so attend a workshop or free, personal consultation and let our Medicare advisory pro’s walk you through it. We are here to be advocates for you.

Long & Short Term Care

With increased longevity and rising health care costs, it doesn’t take a rocket scientist to figure out that one long-term care need can wipe out all or part of your retirement savings. In California 2019’s statistics showed the average cost of care was $120,000 per year. If you don’t have long-term care insurance already, getting it can be difficult, risky, and grossly expensive. Let us show you alternatives to long-term care insurance, some of which you don’t even have to pay for. Really. No foolin’.

Social Security

The government's communications can be quite complex, and Social Security is no different. While waiting until age 70 to begin receiving benefits might seem like the best way to maximize them, it may not always be the most advantageous choice. You could end up leaving money on the table or paying more in Social Security taxes. Wondering when is the optimal time to apply? Unfortunately, contacting Social Security directly for advice is not an option. To determine the most suitable filing time, specialized software is required to analyze various scenarios and devise the best strategy for you. We have this software and are delighted to offer it to you at no cost.

Legacy To Heirs

Under the new SECURE Act, passing on an IRA to loved ones may not be advantageous due to potential tax implications. When considering leaving a legacy to family, including your spouse, children, grandchildren, and charities, it's important to weigh various factors. We can offer strategies that enable you to pass on tax-free funds to your loved ones without any financial burden. Additionally, we can guide you on how to enjoy your savings on your lifestyle while still leaving a legacy for your loved ones. Ultimately, it's your hard-earned money – shouldn't you savor spending it?

Guaranteed Income / Personal Pension

Workplace pensions are fading, making way for 401k plans as the new norm for retirees. Unlike pensions, these plans are subject to market fluctuations and heavy taxation, raising concerns about financial stability in retirement. The top worry for Baby Boomers is outliving their savings, given longer life expectancies. Fortunately, there's a solution: establishing a personal pension that guarantees a lifelong income stream. These modern pensions offer flexibility, allowing you to manage your funds, grow your savings, and shield them from taxes if structured correctly. Let's discuss a tailored approach to creating a personal pension and minimizing tax liabilities.

Liability Protection

Do you have a trust or a will? Wondering which one is more suitable for you? Let's explore the distinctions. While we're not legal experts, we can discuss the variances between trusts and wills and guide you to a trust attorney for assistance. The primary goal is to avoid probate and safeguard both your assets and those you plan to leave for your heirs.

Reducing Taxes in Retirement:

Why It's Important and How To Do It

In America, many individuals have transitioned from traditional pensions to 401(k)s and IRAs, leading to uncertainty about future income due to pre-tax savings. As taxes rise, more of our savings are lost than anticipated, even in scenarios where tax rates remain constant. Additionally, Required Minimum Distributions (RMDs) increase, and Social Security taxes rise annually. To retain more of your savings and reduce taxes, it is crucial to develop a tax reduction strategy promptly.

Here are key tax-related statistics to consider:

• By 2026, tax provisions are set to revert to higher brackets from 1/1/2026.

• The Congressional Budget Office is considering doubling current tax rates to address the national debt.

• The current U.S. debt stands at 22 trillion dollars, with an additional 100 trillion dollars in off-the-books debts.

• Annual interest payments on the debt are escalating, with potential for reaching 1 trillion dollars if interest rates normalize.

• Presently, 92 cents of every tax dollar are allocated to Medicare and Social Security, leaving only 8 cents for other government agencies and services.

• With 75 million Baby Boomers, and 10,000 individuals daily qualifying for SS and Medicare, projections show that 96 cents of every tax dollar will fund these programs alone within two years.

These points underline the necessity for tax hikes and emphasize the urgency of minimizing taxable exposure. While converting an IRA to a Roth is beneficial, consulting with a knowledgeable advisor is essential to navigate the path towards a tax-free retirement. Achieving a tax-free status in retirement is indeed attainable with proper planning and guidance.

310.361.7221 | Info@StephenPluhar.com | Los Angeles, CA