Where Tax & Retirement Planning Come Together

Retirement Lifestyle – What To Do

What To Do In Retirement Retirement is what you make it. It can be enriching and relaxing, or adventure-filled and invigorating! If you’re sitting and wondering what to do when retired and bored, it may be a relief to know that there are plenty of options out there....

Did Early Retirement Sneak Up on You?

Did Early Retirement Sneak Up on You? These are challenging times for so many people.  COVID-19 has forced millions of Americans into an early retirement that they were not anticipating.  Just last week the airline industry announced over 30,000 job cuts. So what are...

Give Your Children or Grandchildren a Very Special Gift

Give Your Children or Grandchildren a Very Special Gift I was recently approached by a prospect who wanted to put some money into an account for his two infant grandchildren.  His thought was to start with $10,000 each and that would cover him for birthday’s and...

Retirement Planning during COVID19

With Arizona’s COVID-19 cases spiking and another mandated shut down, you may be wondering what you should be doing with your retirement finances. We want you to know we are here and ready to help. We are trying to respect your space with the virus floating around to...

COVID-19 and Your 401(k)

The financial crisis that has come with COVID-19 has taken a significant toll on the balances of 401(k)s across the country. The uncertainty of how much this pandemic is going to effect the economy in the future has many people asking what they should be doing with...

Why Attend a Class on Social Security

For the past four years, we have been teaching a class about social security.  You might be asking yourself why it is so important to learn about your social security benefits prior to filing.  Let’s try to put the importance into context.  If your benefit was $2000 a...

How to establish a tax-free retirement

Taxes, Taxes, Taxes. None of us like to hear that word, especially in retirement, but it’s something we all accept.  Did you know it’s possible to enjoy a tax-free retirement?  Yes, you could spend 20-30 years of your retirement in a tax-free world, with...

What is the Stock Market Doing?

Did you see what happened to the stock market this week?  Was it up or was it down? More importantly, what effect did it have on your retirement savings? If you are like most people planning for a retirement of some sort, you probably do not know because you don’t...

What is Wrong with Mutual Funds?

    Mutual Funds with Marc Montini While reviewing a prospective client's existing portfolio, it is not unusual to see the portfolio filled with only mutual funds. Few people are aware that this may not be the best approach to asset management.  With that being said,...

Are you more rich than you thought?

How Rich or Poor Will You Be In Retirement? The most personal step is analyzing the assets that clients have accumulated throughout their careers. Most people humbly hand over the statements with a fear that they may not have saved enough to achieve retirement, or...

How to establish a tax-free retirement

Taxes, Taxes Taxes.  None of us like to hear that word, especially in retirement, but it’s something we all accept.  Did you know it’s possible to enjoy a tax-free retirement?  Yes, you could spend 20-30 years of your retirement in a tax-free world, with no withholdings needed and no tax bill on April 15th.  Accomplishing this feat just takes some planning with a firm dedicated to tax reduction strategies.  The earlier we can begin the planning process the better.   To accomplish this feat there are some things you need to know.  IRA distributions (from a 401(k), 403(b), or TSP) are all fully taxable and reportable income.  If those distributions range from $32,000 to $44,000, 50-85% of your social security will become taxable.  For example, if your IRA distributions were $45,000 and your combined social security benefits were $30,000, your taxable income would be $70,500 after the standard deduction (married filing jointly), you would owe tax on $46,500. With a little time and planning you can find the Roth IRA to be a very powerful tool.  Let’s look at the same income but reduce the IRA distributions to $20,000 and add $25,000 in Roth distributions, with the same social security benefits of $30,000.  In the scenario, none of the social security benefits are taxable, none of the Roth distributions are taxable, and only the $20,000 IRA distributions are taxable.  That income is completely offset with the standard deduction of $24,000.  That’s how you live a tax-free retirement. Click here for a no-cost consultation. Tax and Retirement planning go hand in hand.  You can’t do one without the other. So how do you get there?  First, it’s vital to establish a Roth IRA.  A Roth must be established for at least five years in order to receive the tax-free benefits.  Next, we want to research the viability of conversions from your traditional IRA into the Roth.  This is high-level of planning and should only be done with the help of a CPA or tax professional.   The process works like this.  Our financial advisors create an income plan for our clients that include a corresponding tax plan.  That tax plan tells us what your taxable income is going to be and what is the next tax bracket.  The difference is the maximum amount we would want to convert in that year.  Taking it a step further, our in-house CPA mocks up a complete tax return to help us choose the precise amount of withholdings we need to do in the conversion process to ensure you will not owe taxes come the next April 15th. Call our office today to schedule a no-cost consultation to see if a tax-free retirement is possible for you.  Call (480) 428-8005 or CLICK HERE to request your no-cost consultation.Written by Marc Montini, licensed fiduciary and IAR.

What is the Stock Market Doing?

Did you see what happened to the stock market this week?  Was it up or was it down?  More importantly, what effect did it have on your retirement savings? If you are like most people, you probably do not know because you don’t care to watch. Sometimes it can be a little scary.  This is very common, but why?  It’s your money and your future.  If you’re not willing to watch it and ensure it’s available when you need it, then make sure a licensed professional is watching for you.   Fear is the main motivator for a person’s lack of involvement with their portfolio.  Fear of not saving enough, fear of losing what you have, fear of just not knowing what you’re doing.What if your haven’t saved enough?  Wouldn’t it be best to know that now so you can get back on track? Lack of knowledge of the financial markets is to be expected.  I don’t know how to drive a semi-truck, insert a picc line, or develop a classroom curriculum, but I have trust and faith in professionals in those industries that do.   Partnering with a licensed fiduciary who is legally bound to work in your best interest can give you the peace of mind that someone is proactively ensuring you’re invested in the assets that are poised to do well during the current economic cycle. A licensed fiduciary doesn’t charge a commission or have an agenda.  A fiduciary will work with you to develop the game plan you need to prepare yourself for your eventual retirement. Click here to meet with a fiduciary. It’s not uncommon for a prospective client to tell me they never plan to retire.  That’s what I admire about working with baby-boomers; their unrelenting work ethic.  Unfortunately, life is never as consistent as we would like.  Job positions change or are downsized.  An unexpected health issue could arise for you or a loved one.  You can chose to continue to work, but with a customized retirement income plan in place, you now assume control and can choose to work on your terms. As a tax advisory firm, we specialize in building retirement income plans in the most tax efficient manner possible.  Image living a tax-free retirement!  It is possible, but it takes time to position your assets in a way so that you pay NO tax in the future.  Additionally, you could be currently paying unnecessary taxes from capital gains and dividend income simply because no one is watching your portfolio.  By combining the benefits of a tax advisory firm with a licensed fiduciary, we bring those two worlds together under one roof.  Our Tax Director is intimately involved in the planning process.  Remember tax and retirement planning go hand in hand.  You can’t do one without the other. Don’t put this off another day, month, or year.  You don’t need to be watching your portfolio, but you need to have confidence that an experienced, licensed professional is watching for you.  We welcome you to schedule a no cost consultation to meet with both our licensed fiduciary as well as our tax director. Click here to schedule a consultation. or call (480) 428-8005.Tell a friend.Let’s face it, retirement is a lot more fun when you can do it with friends.  You may be reading this as an existing client with Montini & Co, or you may only know us for the classes we teach and the low cost tax returns we offer.  Regardless, if you are losing sleep, it’s possible your friends are too.  Let us help put you and your friends at ease. Finally, real wealth is not necessarily made in the upswings in the markets. Real wealth is made in not taking a tremendous loss once the markets move from correction to recession.  Written by Marc Montini, IAR, and Managing Partner of Montini & Co Tax Advisory Group.

Montini&Co is a Registered Investment Advisory (RIA) firm with a simple, clear mission: to truly work directly for our clients. At Montini&Co, we provide comprehensive financial planning and investment management tailored to meet each client’s needs and goals.

Financial Freedom is Available to Those Who Learn About it and Work For it!

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11811 N Tatum Blvd #1090 Phoenix, AZ 85028

(480) 428-8005


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