Estate Planning

Business-Owning Baby Boomers Need to Start Succession Planning

Published on: May 4, 2018 | By McCulloch & Miller, PLLC

With an estimated 10,000 Boomers retiring every day, members of this generation who own businesses should already have their succession plans in place.

Exit or succession planning is a lot more complicated than most business recognize. It takes a long time if it is to be done properly. A recent article from Moultrie News, “Securing retirement through engaging in business exit planning,” says that not all business-owning baby boomers are ready.

Many soon-to-be retirees are closely-held business owners who have created and operated very successful businesses for years, but they’re now considering what their next move will be.

What’s on the Mind of Gen-Xers: Not Retirement Planning

Published on: April 26, 2018 | By McCulloch & Miller, PLLC

A survey found that Gen Xers are less concerned about retirement planning than they are about other financial challenges.

Don’t forget that group that’s between the headline grabbing millennials and boomers: Generation Xers, Americans between ages 36-55. A survey from the IRA (Insured Retirement Institute) appears to have uncovered a significant knowledge gap in this group when it comes to personal finance.

Think Advisor’s recent article, “These 3 Threats Scare Gen Xers More Than Basic Retirement Costs: IRI” explains that the survey aimed to find out how Gen Xers are handling retirement planning. The analysts who summarized Gen Xers’ approach to retirement planning said “They’re (mostly) doing it wrong.”

Mortality Rates Might Make You Think Twice About Claiming Social Security

Published on: April 20, 2018 | By McCulloch & Miller, PLLC

They say that numbers don’t lie—and you definitely want to know about this data!

Before you decide to retire at age 62 and start taking Social Security benefits, you may want to dig a little deeper into the statistics, especially if you are a man.

“Your life might depend on your decision,” MarketWatch notes in its article, “Why early retirement can be a killer.” This is because there’s a significant increase in mortality among men who retire at 62 and begin receiving Social Security, according to a new study that recently was distributed by the National Bureau of Economic Research.

Are You Saving Enough for the High Cost of Assisted Living?

Published on: March 13, 2018 | By McCulloch & Miller, PLLC

If you haven’t been saving for retirement, maybe you’ll do better if you are focused on saving for assisted living. One well known survey, 2017 Genworth Cost of Care Survey, reports that you’ll need $1,517 a month for adult day health care. Those fees are only going in one direction—up!

Adult health day care is not inexpensive in our country. If all you need is adult day health care, consider yourself lucky. It’s a bargain at more than $1500 a month, compared to $3,750 for an assisted living facility, $3,994 for home care services, and $4,099 for home health aides.

If you want some privacy, the median cost is $7,148 for a semiprivate room at a nursing home and $8,121 for a private room. Will you be able afford it? Wealth Advisor poses this question in its recent article, “Have Clients Planned For Long-Term Care?”

Lucky Enough to Have an Employer Match?

Published on: March 12, 2018 | By McCulloch & Miller, PLLC

You’d think no one would want to turn down free money. Yet that’s exactly what many working Americans do!

One out of five Americans—20%—don’t take advantage of a terrific benefit: employee sponsored retirement savings accounts that include an employer match of some and sometimes all the employee’s contributions. Most workers do contribute more than enough to enjoy the benefits of their employer’s match, but what’s up with those 20%?

USA Today recently ran an article, “1 in 5 Americans are making a terrible 401(k) mistake” that says this may be one of the worst retirement mistakes you can make. While it may not look like a lot of money to ignore right now, you’d be surprised at the difference it can make when you retire.

Have the Discussion Now About Inheritance and Estate Plans

Published on: February 26, 2018 | By McCulloch & Miller, PLLC

This is easier in some families than others, but discussing your parent’s estate plan and assets while they can still have that conversation is important for millennials.

Think of it this way: you can have an awkward conversation with your parents now and everyone can get more comfortable with the discussion and the topic, or you can launch into a screaming match when Mom and Dad are gone, the family is grieving and there are no parents around to soothe embattled siblings.

No matter how you look at it, this conversation will be uncomfortable. This is because it’s based on one ominous certainty: that the people we love are going to die.

Add Digital Planning to Your Estate Planning Checklist

Published on: January 23, 2018 | By McCulloch & Miller, PLLC

With few exceptions, most of us are living digital lives. That includes basics like sharing family news on social media and storing photos in the cloud, as well as financial information. Your digital life needs to be part of your estate plan, now more than ever before.

Your executor and your heirs are likely to run into trouble if you don’t have a digital estate plan, advises a recent Morningstar article, “Do You Have a Plan for Your Digital 'Estate'?”

The article reminds us that not every aspect of an estate will be addressed quickly, even six months later. This includes questions about how to handle the files on the decedent’s computer or the stuff on his smartphone. His social media accounts may also still be up and running.

Who Pays Taxes When Mom and Dad Make a Generous Gift?

Published on: January 22, 2018 | By McCulloch & Miller, PLLC

First, say thank you. Then, learn more about the rules about paying taxes on a financial gift.

Couples whose families are generous enough to give them help towards buying their first home are often concerned with what, if any, tax liability may be created. Do they have to pay taxes on the gift? Do their parents or in-laws pay taxes?

The tax laws on gifts can be pretty confusing, says nj.com in an article, “Are taxes owed on gift from in-laws?”

Military Retirement Planning and The Big Decision in 2018

Published on: December 11, 2017 | By McCulloch & Miller, PLLC

For those who joined the military in recent years, a big decision is looming for their future. They have to make a choice next year between staying in the old retirement system or opting for the new one.

Figuring out whether or not to stay with the current military retirement system or choosing to join the new system may be a challenge, but you have an entire year to educate yourself as to which one is best suited for you and your family.

Kiplinger’s recent article, “The Big Pension Decision Military Service Members Must Make in 2018,” explains that if you joined the military from 2006 through 2017, then you have from January 1 to December 31, 2018, to decide whether to switch to the new “blended retirement system.”

Best Time to Start on a Succession Plan? The Day You Start Your Business

Published on: November 15, 2017 | By McCulloch & Miller, PLLC

It may sound whimsical, but the moment you open a business is also the time to start thinking about how you’ll exit the business, whether you intend to sell to a partner, leave the entire business to a family member or sell as soon as you come up with the next big idea.

One of the biggest mistakes made by entrepreneurs is failing to create a written plan for their long-term exit strategy. What they don’t understand is that by creating a succession plan, which includes ways to boost the value of the business years before you want to sell or retire, they’ll have a created a road map for a more successful business.

Springfield (MO) Business Journal’s recent article, “Starting a business? Plan your exit now,” advises that you begin with creating a culture of success with your employees, especially the key people. That means fostering an ownership mentality, so they see their critical role in the company’s long-term success and their role in helping that to continue in the future, long and short term.