2023 Year-End Investment & Planning Strategies

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Episode Transcript

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All topics and securities mentioned on straightTalk from the House er for informational purposes
only and should not be used asinvestment advice. Tanton Investment House does not
offer tax or legal advice. Investmentsor investment strategies covered are not a recommendation
or solicitation to buy or sell thesecurities. Past performance is not a guarantee
of future performance. This is straighttalk from the House with certified financial planner

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Tracynton here on thirteen ten WIBA.You learn more about Tracy and the team
all on the website Tanton Investment Housedot com. That's t A N T
O N investment House dot com.Great resource, great website to learn more
about tracing the team as I mentioned, Also a prime opportunity there if you're
looking for money management portfolio management,to make that conversation, start that conversation,

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set up that appointment right at TantonInvestment House dot com. Of course,
Tanton Investment House a fee only fiduciarywith offices right in Middleton telephone number
six oh eight five zero one fifteenforty nine. That's six So wait,
five zero one fifteen forty nine,Tracy, how you doing this morning?
I'm doing great, how are youshot? I'm doing really well, and
it's great to see when we areat that time of year. And I

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kind of knew when when thought,okay, we're into November, getting late
towards the year into the December monthsas well, I thought, what would
be an important thing to talk aboutright now? And I thought, you
know, year end investment in planningis probably a prime thing, and that
is exactly what we're going to talkabout and Tracy, before we kind of
get to this week's conversation, it'skind of an overview. This is something

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obviously for you you do this,you're planning day in and day out,
But for a lot of us,you know, these year end type things,
these are big markers, and theseare important times, aren't they kind
of benchmarks to kind of gauge howwe've been doing and kind of looking forward,
isn't it. Yeah, it's justa great time to do kind of
a reset seon and figure out,Okay, are there some good tax planning

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tips that I should be installing fornext year or even before the end of
this year, And you know,how is my retirement on track? What's
my financial plan looking like? Andjust basically touching base with the people that
you know are in your financial world, so your accountant or tax person,
your investment advisor, and ask them, you know, at this time of
year, should I be thinking aboutanything like roth conversions, differring income,

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doing some gifting. Maybe you havesome ideas you already have in your mind
of things that you want to takecare of or things that we talked about
earlier in the year. So youjust want to touch base with people and
say, you know, okay,is there anything I should be thinking about
investment wise or tax wise, taxloss, harvesting, anything like that you
know comes to mind, and justtouching touching base is always a good idea.

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But before we get to the secondthing about retirement couts, I gotta
ask you that on that first point, is this kind of I know,
obviously there's some clients that you meetwith quite regularly, got a good relationship
with, and you guys talk often. Are there some clients that you have
that just maybe once a year kindof check in and say hey, Tracy,
how are things going, and kindof this time of year saying are
there things we need to be discussing? Is are there just kind of different

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different approach for different people. Oh, there definitely is. And you know,
people get busy, so sometimes theyforget Oh we talked about a Roth
conversion or something like that. ButI have you on my list, so
I'm reaching out to you and saying, hey, this is what you know.
We've got you on this list,and are you still interested? And
have you talked to your tax person? And one person said, yeah,
I talked to my tax person andthey said it was a great idea.

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And I said, okay, wellwhat was the number? Oh I don't
know, So I said, okay, let me look at your taxes.
And you have to kind of doit now because the custodians get so busy
this time of the year. Soif you're, you know, working with
somebody, you need to get inin there and make sure that you get
your form signed and you get thestuff done that you want done before the

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end of the year. Tracy's gotyou on her list and she's checking it
twice, that is for sure.Talking this morning with certified financial planner Tracy
Aton right here thirteen ten wuib A. The website Tanton investment House dot com.
That's t A N t O Ninvestment House dot com. The telephone
number six eight five zero one,fifteen forty nine. That's six so eight
five zero one fifteen forty nine.Today is a great day to start that

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conversation with Tracy and the team atTaantoninvestment House dot com. So what about
adding to retirement accounts? Is thata good idea some people should be thinking
about right now? Tracy, Well, yeah, it's always to me a
good idea to take a look atwhat are your options? Right? So
it's this is timmy hear you thinkabout should you increase your contributions and perhaps
maybe maximize your contribution to a fourto one K or a four oh through

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B or a federal thrift savings plans. There's lots of options out there for
depending on who you if you're selfemployed or if you work for somebody else,
and look at to see, wellis it pre tax or post tax?
That's another big thing to consider,you know, maybe the wroth or
a combination. I always try totell people, you know, sometimes a
combination it looks just is the bestbecause you get pre tax money, but

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then you get you get tax savingtoday and you get a pet on the
bet, but then you also getlater okay, tax rates are so low
right now, know what can whatwill they be later? So it's also
getting money sheltered that won't be taxedlater. So you know, I would
just say you might and even youmight be in this situation Tooshawn where you're

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getting a bonus. Maybe you wantto shelter some of that, or maybe
you have just too much, toomany dollars in your savings account right now,
think about what you need as emergency, what you don't need, and
then put those other dollars to whatevergoals that you have. It might not
be retirement, maybe it's a broker'saccount, but take a look and say,
okay, what dollars I'm trying togear for retirement? Am I on

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track for retirement? Look at yourfinancial plan, get those things updated,
I would suggest, And then Iwould just say, you know, look
at if you can maximize your fourto one case. And that's not for
everybody, but if you're interested intrying to maybe do a catch up.
You know, for twenty twenty three, it was twenty four thousand, but

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it's and it will not be increasingfor twenty twenty four. But workers who
are fift year older and twenty fourtwenty twenty four can contribute an additional seventy
five hundred, so you're up tolike thirty grand that you can contribute.
So again, make sure contact yourfour A one K administrator or human resources
department and just find out if youcan maximize it and how to do that

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and take the steps that you cando it, so you're on track,
you know, starting in January,and then just again I just suggest,
you know, take a look atthat Roth four O one K option.
I really think it's it's it's underappreciated, and I think I think a lot
of people could benefit from putting inmoney after tax and having those dollars grow

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and then take it out at alater point, you know. And sometimes
it's not for you, maybe it'sfor the kids or other beneficiaries. But
it's a really nice option. Itis a great option, and if you
have questions about it, don't foryou can always chat with Tracy. All
I got to do is schedule appointmentright online at Tanton investment House dot com.
It's t A N t O Ninvestment House dot com. Also done

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a couple of shows talking about someof the great benefits of that foth Wroth
four oh one K and some ofthe great reasons why you might want to
consider it. You can listen backto those as well at Tantoninvestment House dot
com or pick up phone making appointmentsix soh eight five zero one fifteen forty
nine. That's six SO eight fivezero one fifteen forty nine. What about
those traditional or wroth iray accounts?Adding some money there, Tracy, Yeah,

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you have until April tax filing deadlineto make contributions to iras and roth
irays, and the maximum is seventhousand to eight thousand for twenty twenty four,
depending if you're age fifty or older. It can also be one hundred
percent of employment compensation, whichever isless. So AGI income phase outranges for

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traditional iras or seventy seven to eightyseven thousand for singles and one hundred and
twenty three to one hundred and fortythree eight thousand for married people. So
for roth iray it's one hundred andforty six thousand and one sixty one for
single and two thirty to two fortyfor married people. So if that's all
confusing, just remember just talk toyour tax person and say can I contribute
to a roth and what is themaximum and they'll set you up talking this

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morning with certified financial planner Tracy Antonright here on thirteen ten WYBA. Don't
forget get to know Tracy in theteam, the website Tanton investment House dot
com. That's t A N tO N investment House dot com. The
telp number six oh eight five zeroone, fifteen forty nine. That's six
soh eight five zero one, fifteenforty nine. What about folks that are
self employed? I know it's especiallybusy time a year for them, but

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it's a good time also to bethinking about about their planning and of course
their their accounts. Yeah, Sean, there are such good options for those
who are self employed. One optionis the Solo four oh one K.
It's also called an Individual four ohone K, and you need to sign
the documents by twelve thirty one,although you have until April fifteenth, at

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twenty twenty four deadline to contribute andtake a text deduction for twenty twenty three,
you can contribute up to twenty threethousand again for those and for those
over fifty to a SOLO four oneK minus any contribution you've made to your
employer is four one K for theyear. But the beautiful thing is you
can also contribute up to twenty fivepercent of your net self employment income to

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the plan. So contributions to thesolo for one K plan can total like
sixty six twenty twenty four, butthey cannot exceed your self employed income for
that year. So again, whois this for. This is for the
individual solo practitioner you know, doesn'thave any employees. I think they can
have a smouse spouse, but that'sit, and you know you'll be able

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to contribute the maximum into this andit's a pretty easy plan to establish.
Typically you don't need a third partyadministrator for But there are other plans out
there too, like simple IRA plansthat are really great for the small employer.
I've set up a lot of thosetypes of plans. They're really good
and you don't need a lot ofadministration and there's not a lot of administrative

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administration costs to that, so they'rereally great. And you can do a
regular a traditional IRA or a WROTHsimple as well. So I would look
into that if you're self employed andyou don't have a plan for your employees
or yourself yet, take a look, there's some good options out there.
And if all else fails and youdon't want to set up a plan for

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the employees because you know it's justtoo much and just starting out or whatever
the circumstances are, then look intojust doing an IRA or roth IRA for
yourself. And then beyond that,look into putting money in brokerage accounts.
You get capital gains rates now,and that's lower than your income text rate,
so those are always a good option. Really neat stuff this morning,

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as we talked with certified financial plannerTracy Anton. Great day to be thinking
about starting that conversation, and Tracymakes it real easy to do. All
I gotta do is head on overto the website Tanton investment House dot com.
That's t A N t O Ninvestment House dot com. From there,
you can schedule appointment at a timeand a date that's convenient to you.
You can also pick up the phonegive Tracy a call telephone number six

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oh eight five zero one fifteen fortynine. That's six oh eight five zero
one fifteen. We'll talk about somegreat things like WROTH conversions and other types
of accounts. We'll get those detailsfrom Tracy as we continue our conversation about
year end investment in planning strategy.Will do all of that next as straight
Talk from the House continues right hereon thirteen ten, double U I B
A. This is straight talk fromthe housemist the five financial planner Tracy Andton

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here on thirteen ten, double UI B A. Learn more about Tracy
and the team on the website.It's always a great dat to start that
conversation. Tanton Investment House dot com. That's T A N T O N
Investment House dot com teleph NUMBERT theoffice right in Middleton, six oh eight
five zero one, fifteen four nine. That's six oh eight five zero one
fifteen four nine, talking this weekwith Tracy about year end investment in planning

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strategies and Tracy, we left offthat last thing, but I mentioned ROTH
conversions and oh my goodness, whata great option for folks and definitely something
people should should take up to advance, take at least to look at just
because of where we are with thingscorrect. Yeah, well, tax bracket's
changing, it's a great time tolook at whether converting some of your IRA

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or WROTH makes sense. You arelikely aware of where your income will be
for the year. So that's agood thing and you'll be able to know
potentially how much to convert to aROTH ira pay the tax and then not
get bumped into the next tax bracket. So it's a really great time to
take a look and say, doI have anything extra in this twelve percent
bracket or not. Some people arelooking even at the twenty two percent bracket

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and saying, hey, I'm okaypaying twenty two percent, but remember you
have to pay the state tax too, So it can be a great option
for some. Sometimes people have thingschanging in their life where they don't have
the income for a year, youknow, say something happened, they took
some time off. You know,that's a nice time to also look at
ROTH conversions. So as they're talkingthis morning with certified financial planner Tracy on

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here on thirteen ten WIBA, andyou're thinking, of course about year end
investment in planning strategy, it's agreat time to start that conversation and tracing
the team. They make it soeasy to do. I got to do
this on over the website Tanton investmentHouse dot com. That's t A N
t O N Investment House dot com. Telephon number six oh eight five zero
one fifteen four nine. That's sixoh eight five zero one fifteen four nine.

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And talking this morning, of coursewith certified financial planner Tracy Anton and
Tracy, who does we're talking aboutthat Roth conversion. Who does that conversion
make the most sense for those whothink their taxes are lowered this year than
they will be in future years.Maybe you change jobs and had lower income
this year but expected to go upnext year, or young or you're a
young person and you think it's ahighly likely your income will be higher down

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the road. Basically, you wantto pay the tax today and you have
those dollars growing for you tax free, and one thing, Yeah, that's
basically it. I mean, it'syou know, if you want to get
and get dollars in after tax,that's what you do. You put money
in wrath. And what's so greatabout that is then hopefully you know later

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when the tax brackets, no matterwhat they are, it doesn't affect you.
And I personally think Sean again,it's a good balance because so many
people I see, they have somany dollars that's pre tax, and it
gets to be a problem because youknow their r and DS are really high,
and so they're limited in their taxability of what they can do.

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I always think a brokerage account isalso a really nice option. What about
can you want to do a conversion? If you do that, make that,
make that or is that not apossibility? No, you can't really
recharacterize your wrath anyway anymore. Youused to be able to, but you
can't. Now. Okay, whatdo you What is it that you like
about wroth accounts, Tracy Well,I like the idea of an account that

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is not taxed at all, sothey can always change the rules. But
it's likely that if you have moneyin a wroth iry you will be grandfathered
into a new tax rule. Sobasically having money growing tax freeze seems really
appealing to me, since it's likelyyour taxes will be going up over time.
You know, we have a lotof debt, so you know,

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they get to change taxes and say, well, now you're paying this amount,
and with the wrath you can say, well, no, I've already
paid the taxes on that. Ialso like the idea that roth accounts are
not subject to require minimum distributions,so therefore you know, again you're more
in control of your money when youwant to take the money, and you
know, and it also allows itfor compounding. The other really cool thing

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about it too, is that yourbeneficiaries don't have any tax. So I
was just talking to a woman whohad she had three accounts by design.
You know, we had been doingwroth conversions for about fifty thousand every year
for the last five years. Soshe has a sizeable money in her wrath.
But she has a brokerage account aswell and pre tax and I said
to her, you know, twothirds of your money if you pass away,

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your kids don't have any tax herebecause your brokerage account rises to the
your date of death, and aswell as the wroth has no tax,
so they only have to pay taxeson your IRA. She goes, oh
my god, I didn't even knowthat. I didn't think about it.
So I was like, well,there's good news. That is some great
great news. Speak of great news, Tracy. What if you have some

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kiddos that have earned income, isthere anything they need to know about about
iras roth iras well? Roth iraysare a great option for those children or
young adults who can show earned income. If you can contribute, you know,
six thousand, say four year forforty years at eight percent growth,
they would have over one point sixmillion in their account. You know,
I'd be forty years later, butthat's still pretty darn impressive at eight percent

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growth. So you know, Ilove the roths for the kids. Lots
of options there as well. So, but you have to have earned income.
That's the key there. You know, you have to be show income
and it can't be investment income.Important nuances there, that is absolutely for
sure. Don't forget about the websiteTanton investment House dot com. That's t

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A N t O N investment Housedot com. I telephon number six oh
eight five zero one fifteen forty nine. That's six oh eight five zero one
fifteen. Before we wrap up thisweek, Tracy, I know we're probably
gonna do a part two on thisbecause there's just so much great information you
have to share. But before wedo wrap up this week, what are
some of the things you should doregarding your investment portfolio as we round out

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the year. Well, Sean,it's always a good idea to meet at
least once a year with your investmentadvisor and review your asset allocation. How
much do you have in stocks,bonds, and cash in your portfolio,
you know, and have things changedfor you in your life? And are
you planning on retiring soon? Haveyou received an inheritance that you need to
reconsider your overall allocation? Or isyou put a lot of money in you

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know, CDs and money markets thatare paying high interest, but you forget
that that also changes your asset allocation. You know. Basically, is it
been a few years since you've lookedat your portfolio? And when I mean
look, I mean not just theinvestments maybe that you have with your advisor,
but also the four oh one kmake sure that you are in a
good spot because you know, they'retalking recession, but then they're talking mild

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recession, and then after that whatthey're saying from you know, not everybody,
but some sources, they're saying marketscould look pretty good after that.
So if that's the case, doyou have the allocation that you want?
Can you handle the recession if wehave a slight pullback, which most people
think there might be, right,But then beyond that, are you in
the allocation in the next five yearsthat you want to be in? So

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I think I would just you know, focus and make sure you don't have
too much in growth stocks. Againthey're a little bit more expensive. Yes,
they outperform value this year, butyou know, I would just take
a look and say, you know, do you have the right allocation and
are you comfortable? Are you aggressiveenough and conservative enough? Where are you
at? And then what kind ofdistribution rate can you expect? The other
last thing I'd say is tax lostharvesting on that brokera's account. You might

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you might be able to do someof that as well. So take a
look, get get with your advisorand before you're in what an important conversation.
We're going to continue this as well, pick it up on a future
program. Don't forget about the websiteTantoninvestment House dot com. If any part
today show, you can always listenback online this in previous programs. You
need to know Tracy and the teamat the website, as well as scheduling

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appointment at a time and a datethat's convenient to you. The website Tanton
Investment House dot com. That's tA N T O N investment House dot
com and the telephone number six oheight five zero one fifteen forty nine.
That's six SOH eight five zero onefifteen forty nine. Tracy, it's always
great chatting with you. You enjoythis beautiful day. Thanks Sean, you
too. Take care,