Author - Eric J. McClain, CFP®

1
Tax Alpha: How to save on taxes with multi-year tax planning
2
50 Shades of 529’s: What College Plan Dominates?
3
Retirement Account Rollover Options
4
What Is A Lump Sum Pension Rollover?
5
What Is An Annuity?

Tax Alpha: How to save on taxes with multi-year tax planning

Eric’s Note: Be sure to read part two for additional tax planning ideas
Originally published at www.mcclainlovejoy.com: http://wp.me/p31Bd2-zb

Alpha refers to the extra return that an active investment manager adds beyond what you’d normally receive by using prudent asset class investments, re-balancing periodically, and staying globally diversified. In other words, it’s the possible extra return (or loss…) that’s achievable when you reach beyond prudent investing. As you’ve probably guessed, we advocate an evidenced based, prudent approach to money management.

However, we do think that strategic tax planning can produce “Tax-Alpha” for a portfolio. By keeping more of your money out

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50 Shades of 529’s: What College Plan Dominates?

Eric’s Note: Tax benefits are specific to Alabama. Originally published at www.mcclainlovejoy.com: http://wp.me/p31Bd2-w9

Does the thought of a $100,000 college bill for one kid leave you feeling out of control? You can use a 529 college savings plan to save and pay for college in a tax preferential way

529  is tax code section which enables states to setup and offer college savings accounts. They come in two flavors–Prepaid Tuition plans, which we generally suggest you  avoid.

Ccontributory plans or 529 college savings accounts which operate like a 401k/403b retirement plans with contributions dedicated to a single goal: paying …

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Retirement Account Rollover Options

Where can my retirement account go when I retire or change jobs? For the most part, when you retire or otherwise end your employment you may direct transfer or direct rollover your retirement account(s) to a new IRA account established at a qualified custodian. Here are some special situations that come up where you may separate accounts to receive the transfer.

Simple IRA

Small businesses can establish a SIMPLE IRA retirement plan. It’s similar to a 401k with but with much simpler and therefore less costly record-keeping and administrative requirements. In the SIMPLE plan you have your own individual account. …

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What Is A Lump Sum Pension Rollover?

Retirement is near and now you must decide what to do with your 401k retirement plan and pension benefit accounts. The 401k can directly transfer into an IRA rollover account. There you may establish a monthly paycheck, complete with tax withholdings which are automatically sent to the IRS and state tax agencies.

You have the same option with your pension benefit!

Rather than beginning monthly payments from your pension, you may elect to take a lump-sum distribution sometimes identified simply as the lump-sum. Under many investment scenarios, you may have more retirement income and leave more to your heirs by …

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What Is An Annuity?

In the financial world, the word annuity may have various and often similar meanings. Below I’ll discuss each and how they may fit in your financial plan.

An annuity is simply a payment at regular intervals, such as monthly payment from your pension plan. Social Security can also be thought of as an annuity, especially when creating a lifetime retirement income plan. Monthly withdrawals from investment and retirement (IRA, 401k, 403b) accounts are yet another form of an annuity which you establish and control.

The second common meaning for annuity is in reference to the wrapper for the underlying investments. …

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