SIDEBAR: When you work with Tracy Ann Miller, you’re not treated like a client, you are treated like family. “My clients know I’m dependable and that I’ll be there for them,” says the financial planner. “I want them to be able to sleep well at night and know they are securing a better future for themselves.”
Tracy Ann is CEO and founder of Miller Private Wealth in Oklahoma City and serves the Mid-West United States as a Fiduciary Advisor.
Tracy Ann’s history in financial management includes serving as vice president of a major New York bank, managing estate planning and wealth transfer in the advanced products division of Aegon Insurance Group and serving as vice president of Charles Schwab’s Private Client group.
Tracy Ann co-founded Portfolio Wealth Advisors and founded her own firm Miller Private Wealth because she wanted to work more closely with her clients.
“I wanted to work directly with families and individuals to help solve their financial planning problems,” she says. “Being an independent advisor allows me to work for my clients, not for a company. I’m able to build better relationships with clients and meet more of their needs, as a result.”
Year-End Planning by Tracy Ann Miller
What seemed like a time warp with the pandemic has now turned into the end of two years later! December already! Perhaps this past two years had you thinking about your priorities and how they may have changed. Now is a good time to plan around old and new goals to ensure that 12 months from now we are further ahead.
Evaluating financial habits now will make it easier to build new and effective outcomes in 2022. Here are some thoughts to get you started.
1. Rethink priorities
Like pretty much everyone else I know, the pandemic has changed my view on what’s important in life going forward. For example, if you do need to consider homebuying perhaps redirecting the 401(k) contributions being made above the employer match into a brokerage account will help have funds you can access for a down payment. Evaluate your asset flexibility and liquidity.
2. Save more
If you were fortunate enough to remain employed through the past two years, you may not have had to think about your savings. One thing is certain, however. People with savings have more options.
The thought that you don’t have even one dollar at month end to save is not true. One action item for year-end is to take your credit card and bank statements and go through them and meticulously rank every expenditure as either essential or discretionary. Add them up and go through them again to see just where you could reallocate some discretionary spending to an investment account. Label the account “investing now for a better financial future.”
3. Assess Roth Conversion
Converting a traditional IRA to a Roth IRA is popular this year if you expect higher taxes in the future and/or want to accelerate income in a year with lower tax rates. You may want to consider a partial conversion, because under current legislation, income tax brackets revert to higher tax brackets in 2026. Other reasons for a Roth conversion are: you have a long investment time frame for the tax-free earnings to grow, or the ability to pay the tax cost of the conversion with non-retirement funds; you want to mitigate effects of the Secure Act, which requires any non-spouse beneficiary to deplete an inherited account in 10 years.
4. Consider giving more or differently.
As a result of the Cares Act of 2020 and a legislative extension for 2021, you can make a cash charitable deduction of up to 100% (previously 60%) of your adjusted gross income and claim it as a charitable deduction if you itemize your taxes. For taxpayers who contribute more than their annual limit, the excess is not lost but can be carried forward up to five years.
Engage your next generation. Philanthropy can be a powerful way for families to pass on their shared beliefs and values. Giving together can be a bonding experience for family members of all generations.
5. Review Milestone Retirement Ages
The Secure Act, enacted in December of 2019, changed retirement rules to strengthen your retirement security. Among the key changes is required minimum distributions begin at age 72 versus 70 1/2. Note: The House Ways and Means Committee introduced a Secure Act 2.0 in October and among the possible changes to the law is increasing the RMD beginning at age 75 and allowing a higher catch-up contribution limit starting at age 60.