Casey Marx | RICP® CFF® | Founder/CEO & Advisor | More Hoosiers Are Retiring Early

More Hoosiers Are Retiring Early

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https://youtu.be/doENqpJPWp4

Casey Marx our founder and CEO of Crown Haven Wealth Advisors. Marx was just interviewed by Samantha Johnson of WTHR about why more Hoosiers are retiring early and how they are pulling it off?

n our work with financial planning clients, we have seen the pandemic serve as a realization for many people that they can work from home or reduce hours and still be just as productive at work. Casey recommends asking a few simple self-reflection questions for those considering partial retirement.

  1. What’s important to you?
  2. What are you trying to achieve?
  3. What do you enjoy doing?
  4. Who do you care about?

Inflation and rising interest rates are causing millions of people to rethink their budgets or plans for retirement. Now more than ever, people in the great state of Indiana need a financial advisor they can trust.

To help, Crown Haven Wealth Advisors is offering a limited number of spots for our free financial planning sessions. Our team is happy to meet with you online or in our offices in Carmel, IN. Stop stressing about money or how you will pay for the retirement you always wanted.

You deserve a secure financial future. Click here to schedule a complimentary relationship visit or call (317) 564-4691 to speak with one of our specialists.

See and read the original article on wthr.com

 

How Will Working Affect Social Security Benefits? | IRA | 401K | Pension | Social Security

How Will Working Affect Social Security Benefits?

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How Will Working Affect Social Security Benefits?

In a recent survey, 70% of current workers stated they plan to work for pay after retiring.1
And that possibility raises an interesting question: how will working affect Social Security benefits?

The answer to that question requires an understanding of three key concepts: full retirement age, the earnings test, and taxable benefits.

Full Retirement Age

Most workers don’t face an “official” retirement date, according to the Social Security Administration. The Social Security program allows workers to start receiving benefits as soon as they reach age 62 – or to put off receiving benefits up until age 70.2

“Full retirement age” is the age at which individuals become eligible to receive 100% of their Social Security benefits. Individuals born in 1960 or later can receive 100% of their benefits at age 67.

Earnings Test

Starting Social Security benefits before reaching full retirement age brings into play the earnings test.

If a working individual starts receiving Social Security payments before full retirement age, the Social Security Administration will deduct $1 in benefits for each $2 that person earns above an annual limit. In 2022, the income limit is $19,560.2

During the year in which a worker reaches full retirement age, Social Security benefit reduction falls to $1 in benefits for every $3 in earnings. For 2022, the limit is $51,960 before the month the worker reaches full retirement age.2

For example, let’s assume a worker begins receiving Social Security benefits during the year he or she reaches full retirement age. In that year, before the month the worker reaches full retirement age, the worker earns $65,000. The Social Security benefit would be reduced as follows:

Earnings above the annual limit
$65,000 – $51,960 = 13,040

One-third excess
$13,040 ÷ 3 = $4,347

In this case, the worker’s annual Social Security benefit would have been reduced by $4,347 because they are continuing to work.

Taxable Benefits

Once you reach full retirement age, Social Security benefits will not be reduced no matter how much you earn. However, Social Security benefits are taxable.

For example, say you file a joint return, and you and your spouse are past the full retirement age. In the joint return, you report a combined income of between $32,000 and $44,000. You may have to pay income tax on as much as 50% of your benefits. If your combined income is more than $44,000, as much as 85% of your benefits may be subject to income taxes.2

There are many factors to consider when evaluating Social Security benefits. Understanding how working may affect total benefits can help you put together a strategy that allows you to make the most of all your retirement income sources – including Social Security.

How much would you pay for a more secure retirement?

How does zero dollars sound?

For a limited time, Crown Haven Wealth Advisors, Indiana’s most trusted fiduciary, is opening up spots for our free financial planning sessions.

We are happy to meet with you online or in our offices in Carmel. It costs you nothing to create a plan for a dependable future.  Click here to schedule a complimentary relationship visit or call (317) 564-4691 to speak with one of our specialists.

Sources
1. EBRI.org, 2022
2. SSA.gov, 2022

Why is this age so important?

59 1/2: Why Is This Age So Important?

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59 1/2: Why is this age so important? That age marks a turning point of sorts in your life—on a number of fronts. In particular, the Internal Revenue Service (IRS) allows you to make withdrawals from your retirement account without incurring a penalty. It has also been nearly a decade since you were granted the right to make “catch-up contributions” to your IRA.1 

In roughly 30 months, you’ll be eligible to claim Social Security benefits. You’re about 66 months away from Medicare eligibility. 

In this report, we explore your retirement choices, your healthcare concerns, and how to move vibrantly into those golden years. We also turn back the clock to take a quick look at how history may have shaped your outlook. Keep in mind that this

BUILDING YOUR RETIREMENT SAVINGS 

Some research suggests you should have at least $1 million in retirement savings to get you comfortably through a 30-year retirement.2 

Some retirement savers say there’s a 45% chance they expect to run out of money sometime during their retirement. In fact, 22% of baby boomers (those born between 1946 and 1964) report having less than $25,000 in retirement savings.3,4 

If your retirement savings are not quite up to par, the IRS provides a catch-up clause that applies to people over the age of 50.5

Older employees may exceed the IRS’s standard, elective deferral ($19,500 in 2020) to their employees’ workplace-based retirement savings plans. Elective deferrals are contributions to retirement plans by the employer at the employee’s request. Deferrals apply to 401(k)s, 401(b)s, and other retirement plans.6,7 

The catch-up amount for 2020 is $6,500 and applies to the following plans: 

  • 401(k)s 
  • 403(b)s 
  • 457s8 

Deferrals to retirement plans must exceed the standard $19,500 limit (2020) to be counted as catch-up contributions.8

You may make annual catch-up contributions if the amount is less than: 

  • The catch-up contribution dollar limit, or 
  • The excess of the participant’s compensation over the elective deferral contributions that are not catch-up contributions.8 

Catch-up contributions are $3,000 for Savings Incentive Match Plan for Employee Individual Retirement Account (SIMPLE IRA) plans. These plans are often used by small business owners.8

You may make $1,000 in catch-up contributions to your traditional or Roth IRA in 2020. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth 401(k) distributions must meet a five-year.

holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as result of the owner’s death. Employer match is pretax and not distributed tax-free during retirement.8 

Under the Setting Every Community Up for Retirement Enhancement (SECURE) Act, once you reach age 72, you must begin taking required minimum distributions from your 401(k), 403(b), 457(b), or other defined contribution plans in most circumstances. Withdrawals from your 401(k) or other defined

contribution plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.9 Also, under the SECURE Act, once you reach age 72, you must begin taking required minimum distributions from a SIMPLE IRA in most circumstances. Withdrawals from SIMPLE IRAs and traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.9

Getting Financial Guidance

You’re approaching a major turning point in your life. A financial professional can help you discover wise solutions and develop smart retirement strategies for a fulfilling and exciting future. We can help you analyze your financial situation to shape the life you envision.

We know now more than ever that people in the great state of Indiana need a financial advisor they can trust. To help, Crown Haven Wealth Advisors is offering a limited number of spots for our free financial planning sessions.

Our team is happy to meet with you online or in our offices in Carmel, IN. Stop stressing about money or how you will pay for the retirement you always wanted. You deserve a secure financial future. Click here to schedule a complimentary relationship visit or call (317) 564-4691 to speak with one of our specialists.

Note: Keep in mind that this article is for informational purposes only. It is not a replacement for real-life guidance. Also, tax rules are constantly changing, and there is no guarantee that the tax landscape will remain the same in the years ahead. Please consider working with a financial professional before implementing or modifying a retirement strategy.

Footnotes and disclosures:
Information current as of September 15, 2020.
Investing involves risk including the potential loss of principal.
No investment strategy can guarantee a profit or protect against loss
in periods of declining values.
These are the views of FMG Suite, and not necessarily those of the
named representative, Broker/Dealer or Registered Investment
Advisor, and should not be construed as investment advice. Neither
the named representative nor the named Broker/Dealer or Registered
Investment Advisor gives tax or legal advice. All information is
believed to be from reliable sources; however, we make no
representation as to its completeness or accuracy. Please consult
your financial professional for further information.

Sources:

1. USNews.com, February 12, 2020
2. AARP.org, September 15, 2020
3. CNBC.com, June 28, 2019
4. NorthwesternMutual.com, December 31, 2019
5. TheBalance.com, January 15, 2020
6. IRS.gov, November 22, 2019
7. IRS.gov, December 20, 2019
8. IRS.gov, January 9, 2020
9. IRS.gov, September 23, 2020

Estate Planning Checklist

Estate Management Checklist

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Estate Management Checklist

Estate Planning & Long-Term Healthcare are among the most ignored areas of financial planning, but they are some of the most important. This estate management checklist is a great starting point to create goals and outcomes for a successful outcome.

Do you have a will?

A will enables you to specify who you want to inherit your property and other assets. A will also enable you to name a guardian for your minor children.

Do you have healthcare documents in place?

Healthcare documents spell out your wishes for health care if you become unable to make medical decisions for yourself. They also authorize a person to make decisions on your behalf if that should prove necessary. These documents may include a living will, a power of attorney agreement, and a durable power of attorney agreement for healthcare.

Do you have financial documents in place?

Certain financial documents can outline your financial wishes. If you become unable to make decisions for yourself, these financial documents can be structured to empower a person to make decisions on your behalf. These documents may include joint ownership, durable power of attorney, and living trusts.

Have you filed beneficiary forms?

In some cases, naming a beneficiary for bank accounts and retirement plans makes these accounts “payable on death” to your beneficiaries. In other cases, you will need to fill out a “Payable on Death” form.

Do you have the right amount and type of life insurance?

When was the last time you assessed your life insurance coverage? Have you compared the life insurance benefit with your financial obligations? Keep in mind that several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

Have you taken steps to manage your federal estate tax?

If you and your spouse have more than $24.12 million in assets (for 2022), you may want to consider taking steps to manage federal estate taxes, which will be due at the second spouse’s death.1 In Indiana, we are fortunate that the State imposes no estate taxes. Every custom-tailored RetireSHIELD® includes an assessment of your possible liability and how to address it.

Have you taken steps to protect your business?

Do you have a succession plan? If you own a business with others, you may also want to consider a buyout agreement.

Have you created a letter of instruction?

A letter of instruction is a non-legal document that outlines your wishes. A strong, well-written letter may save your heirs time, effort, and expense as they administer your estate.

Will your heirs be able to locate your critical documents?

Your heirs may need access to the specific documents you have created to manage your estate. These documents may include:

  • Your will
  • Trust documents
  • Life insurance policies
  • Deeds to any real estate and certificates for stocks, bonds, annuities
  • Information on your financial accounts and safe deposit boxes
  • Information on your retirement plans
  • Information on any debts you have: credit cards, mortgages, and loans.

At Crown Haven, every RetireSHIELD® is designed so that both spouses are covered in the event of an untimely passing, ensuring that neither spouse ever sacrifices their standard of living or has to deal with additional financial stress during their time of grief and mourning.

Learn more about RetireSHIELD® plan and our Long-Term Healthcare and Estate Planning.

Crown Haven Wealth Advisors has a limited number of free financial planning sessions available.  We are happy to have the meeting with you in person in our offices in Carmel, Indiana, by Zoom or over the phone. You can schedule your complimentary appointment online or by calling 317-564-4691

Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies.

Smart Retirement & 401(k) Moves In 2022

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Our very own CEO Casey Marx provided smart retirement & 401(k) moves in 2022 tips to reporter Felicia Lawrence WTHR Indianapolis. With inflation and rising interest rates, the state of the economy may have you on edge, wondering what to do with your retirement money.

If you are closer to retirement age, you don’t have that kind of time for your 401k to rebound in the stock market; you should ask yourself this question… “Can you really afford to go down another 10-20%? If you know you can afford to go down another 10-20%, then you stay the course. If you can’t afford that, you probably shouldn’t remain where you are currently at. The likelihood of the market going up – especially straight up like it did in 2020 after all the monetary stimulus – is like zero. That’s not going to happen this time.”

“The younger person is probably going to have a much larger risk capacity, meaning they can experience some volatility, and it won’t kill them,” said Marx. “And if you were going to get into the market at this stage, you can do dollar-cost averaging. So if you really like a company, you can buy now at a $100, and if they go down to $90, it won’t matter to you because 30 years from now, they could sell for $500, and that’s a win anyway.”

It’s difficult to give blanket advice for everyone, but the best thing you can do is analyze your risk assessment. It looks different for everyone, which is why Marx recommends you get a financial advisor to help you understand which direction you should take.

Crown Haven Wealth Advisors has a limited number of free financial planning sessions available.  We are happy to have the meeting with you in person in our offices in Carmel, Indiana, by Zoom or over the phone. You can schedule your complimentary appointment online or by calling 317-564-4691

Casey's Thoughts - Fees & Investments

Casey’s Thoughts – Fees & Investments

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In a recent article on FinancialPlanning.com it was reported that Equitable told teachers their variable annuity fees were $0.00, SEC discovered. As a result, Equitable was charged with misleading retirement savers about hefty fees on variable annuities highlighting gaps in investor disclosures about the complex products.

“Equitable Financial Life Insurance agreed on July 18 to pay $50 million to settle SEC fraud charges alleging that it sent “materially misleading” account statements to 1.4 million annuity holders over the past six years. Equitable, a target of critics who assert the company is predatory toward teachers, a core market for the annuities industry, left out the products’ two main fees and 97% of the revenue from the contracts, the SEC said.”

I see this as another stain on an industry that doesn’t need any more help losing the trust of the public. These types of stories really hit us hard at Crown Haven Wealth Advisors because we come from humble beginnings, and we truly believe that it’s our job to ensure our clients worry less about their money and spend more time enjoying their lives.

That means those that work in the financial industry MUST be transparent. They MUST act with integrity. They MUST under-promise and over-deliver. They MUST act as fiduciaries and put YOU first.

In short, they should treat you as they would hope to be treated.

Here’s the deal: Variable Annuities have fees. Period. End of story. They have M&E fees, 12b-1 fees, administrative fees, mutual fund fees, income rider fees, etc…

Variable annuities are basically the entire reason you think “fees” when you hear the word “annuity” – because they’re literally the only type of annuity that have fees as an automatic component of the contract.

HOWEVER, That doesn’t mean all annuities are bad, and it certainly doesn’t mean all people who use the many types of annuities as a tool (out of many) to build a holistic retirement plan are as duplicitous as these folks who told these poor teachers their fees were $0.00.
It’s for this reason that it is so important to arm yourself with knowledge!

We’ve spent hundreds of hours compiling dozens of resources for the general public to consume. Learn about this commonly misunderstood retirement vehicle, as well as many other topics.

If you have more specific questions or want us to perform an annuity audit for you, reach out to us or schedule a visit – we’re here to help.

Casey Marx

Casey Marx | RICP® CFF® | Founder/CEO & Advisor

Casey Marx Outlook Update 07/13/22

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The June 2022 inflation report just came out and the number was 9.1%. A lot higher than was initially anticipated and now you have all the prognosticators in the market and the media coming out and arguing why that is the case.

Watch Casey Marx RICP® Discuss The June Inflation Number

The June inflation report just came out, and the number was 9.1%. A lot higher than was initially anticipated. Now you have all the prognosticators in the market and the media coming out and arguing why that is the case.

The federal reserve is going to have to get a lot more aggressive near term to crush demand. We had significance and what that means is there’s going to be a lot of pain ahead.

What does that mean for you?

I would like to invite everyone watching this out there to do is to reach out to us at crown Haven to learn about our RetireSHIELD® program and learn what our clients already know.

It is not too late to stop the bleeding.

It is not too late to put yourself in a position for success

Short-term there is going to be a lot of pain, and coming back from a loss is very difficult.

I highly recommend that you analyze both your risk capacity and your time horizon for your investment. Crown Haven Wealth Advisors are experts at this. I developed a proprietary financial plan called RetireSHIELD®.

To learn more about our financial planning process, I invite you to schedule a relationship call to understand your unique goals and objective and how we can create a custom retirement plan for you. Just click “Relationship Building Call – 15 minutes” below to get started.

2022 Changes To Your Money

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2022 brings new tax and saving changes that could impact your finances. Updates include standard deductions, retirement-plan contributions, estate, and gift tax changes are the federal government’s effort to the American people feel fewer effects of record-high inflation. Read below or watch Casey’s interview on WRTV Indianapolis to learn more about how you can make adjustments to maximize these changes.

  1. The IRS is changing and boosting tax brackets which is normal for them to do to combat inflation. This year it’s going from 1% in 2021 to 3% 2022 due to inflation indexing. The adjustment will reduce the amount of taxes deducted from paychecks and raise take-home pay.

    Standard Deduction
    $12,950 – Single
    $25,900 – Joint

    Tax rates on capital-gain and dividend taxable income
    0% Up to $41,675 (Single) / Up to $83,350 (Joint)
    15% $41,676 to $459,750 (Single) / $83,351 to $517,200 (Joint)
    20% $459,751 or more (Single) / $517,201 or more (Joint)
  2. The IRS is also changing the maximum amount taxpayers can contribute to their 401ks, increasing it by $1,000. he top tax-deductible contribution to a 401(k) for savers under age 50 will rise to $20,500 from $19,500 in 2021, about 5%. For non-qualified contributions to IRAs and Roth IRAs, the limit will remain $6,000 for people under age 50, due to rules preventing increases until there is a $1,000 increment. The income thresholds for these tax breaks will be higher for most taxpayers, however.

    Retirement-plan contribution limits
    – Traditional or Roth IRA $6,000, plus $1,000 for age 50 and older 401(k) or
    – Roth 401(k) $20,500, plus $6,500 for age 50 and older
    – SEP IRA or Solo 401(k) $61,000, plus $6,500 for age 50 and older, for Solo 401(k)
  3. Social security checks are increasing This is the biggest boost in 40 years on average, Social Security beneficiaries are seeing an extra $92 a month 

    Bonus Information
  4. Estate & Gift Tax changes
    Lifetime exemption – $12,060,000 per individual
    Annual exclusion $16,000

So a lot of things to be watching for. This is the beginning of some pretty high inflation, and I think this is going to continue for a while. Interest rates are responding, and they’re going up as well, so I think folks are going to have to get used to higher prices for a while.

Inflation and rising interest rates are causing millions of people to rethink their budgets or plans for retirement. Now more than ever, people in the great state of Indiana need a financial advisor they can trust. To help, Crown Haven Wealth Advisors is offering a limited number of spots for our free financial planning sessions.

Our team is happy to meet with you online or in our offices in Carmel, IN. Stop stressing about money or how you will pay for the retirement you always wanted. You deserve a secure financial future. Click here to schedule a complimentary relationship visit or call (317) 564-4691 to speak with one of our specialists.

investments lose value

When Your Investments Lose Value

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Here is a question about your retirement plan and when your investments lose value. Whether it’s your 401(k), IRA, Roth IRA, Rollover IRA, or other financial accounts. It could be stocks, mutual funds, REITs or other investments. How much better off would you be today if you had never experienced losses from the last market crash? Or any crashes for that matter? I mean, folks that work with us at Crown Haven, they’ve been investing some of them 35, 40, 45, 50+ years, sometimes. That means they experienced at least at the very least 1987, the late 90s tech bubbles, 911, great recession 2007, 2008, and March 2009. Most lately 2015, the 2018 20% loss at the end of December. Lastly, the Coronavirus correction in early 2020 knocked 33% off the Dow. That’s eight different crashes in the matter of what 87 to 2019 2020. How much better would you be off today? If you’d never experienced losses from any of those? I believe you know the answer?

I want you to time travel back to when you were a child. Your very first roller coaster now when you hear a roller coaster when it’s being pulled up the track, you can hear a clicking noise, can’t you? Now each time you hear a click, there’s a mechanism that locks that coaster so it can’t go backward. If the machine pulls the coaster up, the track fails, the coaster stops, but it won’t reverse.

In our retire shield strategies, this is called an annual reset. Any market growth pulls your money up that steep track, and each year, you hear a click that sound is your money being locked in place. So it can never go backward due to market losses. You only go up from market gains, and you never go backward from a market loss. Every year your account value gets locked in place.

So how is that different from investing in stocks, bonds, mutual funds, variable annuities, muni bonds, REITs, or other risk-based investments? In risk-based investments, you don’t hear the clicks. If the market machine breaks, you get thrown in reverse. It dumps you over onto the other side when you get pulled to the top. In a risk-based investment, there are no clicking noises, no gains are being locked in. Instead, you hear nervous laughter on the way up and screaming on the way down.

So the question is, what do you hear our clients saying about our RetireSHIELD® retirement plan? If you hear anything at all, it’s a quiet sigh of relief. Look at our reviews online and you will see our clients love us. They’re only growing, they’re never losing. No nervous laughter and no screaming.

Our clients get to keep their gains, and their account balance doesn’t decrease one penny due to a market loss because their coaster only goes up. We’ve done this for 1,000s of clients protected hundreds of millions of dollars. Not one of those clients has ever lost money in the market with our RetireSHIELD® secure income strategies. It’s more like an escalator that may stop now, but it never goes backward. Escalators are also safe because they can never break. They can just become stairs and then you just walk up.

If you want to learn more about the security our RetireSHIELD® plan offers. Schedule a virtual or in-person Free consultation today

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Listen to Casey Marx, Smart Money episode “Definition of Insanity, Cliff Young Shuffle, Fake News and Underliving Your Retirement” on the player below or on your Apple Podcast App or Android device.

Do Not Wait Until April 2022 To Start Thinking About Taxes

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Don’t wait until April to start thinking about taxes. Now is the time to start planning for your 2022 taxes. There are several things you can do right now to give yourself a better chance to reduce your tax burden. Our founder Casey Marx spoke with WRTV to share investment and tax planning strategies to consider before December 31st

Tax Planning Move #1

Consider converting traditional IRAs and 401ks to tax-free accounts like a Roth IRA. We are currently in a low-tax environment, but we believe taxes are probably going to go up in the future. That’s one of the things that we really can’t control. You need to make moves now.

Right now you should consider converting traditional IRAs and 401ks to tax-free accounts like a Roth IRA. The downside is you are going to pay taxes when you convert these accounts. The huge benefit that outweighs this is that your money is going to be taxed free when you start to take the income in retirement. If you do it later you are going to be paying taxes when you convert that money and any gains.

Trust me… Taxes are a legislative risk and something you need to strategize around. Pay those taxes now when you convert these accounts instead of paying when you take it out in retirement.

Tax Planning Move #2

Another pre-tax move to make is a charitable donation. Those over age of 72 are required to make a minimum distribution so they can tax you.

If you make a qualified charitable donation, it can be a win-win situation. You can take the money out of the IRA and donate it to a nonprofit charity. This allows you to bypass the income taxes you typically incur for taking an income distribution. It saves you on taxes and will enable you to do something charitable with the money.

Now remember that money must go directly from your IRA to the charity to ensure that distribution does not count towards your taxable income for the new year.

Tax Planning Move #3

Get professional advice. The further head you think about your tax situation, the better chance you have at reducing your tax burden. Many tax rules follow the calendar year meaning you want to make any tax-saving moves before December 31st.

We invite you to schedule a complimentary consultation to review your tax planning, investment allocation, estate planning, and healthcare planning. Crown Haven manages all of these financial planning elements serving as your Fiduciary for our clients.

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