Do You Need a Financial Planner?

financial planning

By Krista McBeath, McBeath Financial Group

Some people may feel confident they know enough regarding the dos and don’ts of the financial world; they may feel they don’t need any help. Their investments are diversified, they believe they have saved enough for retirement, and that’s all they need to know, right? Unfortunately, not.

There is much more to financial planning than one may think. One of the more important topics that come to mind is tax planning! Do you know what your tax rate will be when you retire? How about once you start required minimum distributions at age 72? Is there something you can do to avoid Medicare surcharges? Do you know which accounts to withdraw from first? Estate planning is another item that people forget about! Do you know the federal and state estate tax threshold? Could your heirs owe estate tax at your death? Have you added payable on death designations to all your accounts? Do you have a Will and Power of Attorney? Could a trust benefit you?

These are all factors that should be included in comprehensive financial planning that individuals may not think about on their own. When it comes to planning, it’s important to work with a financial planner who will take a holistic, all-inclusive approach to financial planning. Not only must a planner review your income, expenses, tax returns, and investment allocations, but they must also analyze the result of how all these factors fit together today and throughout your lifetime. 

For instance, at McBeath Financial Group, we utilize a combination of our advanced planning software and experienced advisors to provide detailed projections. These enable more informed and confident decisions for tax planning and estate planning. 

One area that many financial planning clients benefit from is a Roth conversion strategy. When done correctly, a client may realize a significant gain over their lifetime. At McBeath Financial Group, we use our software and expertise not only to calculate the strategy but also to show the projected cumulative impact on portfolio values.

The Roth Conversion strategy is very complex and involves reviewing tax reports for each year. We also must determine which inflation-adjusted tax bracket is most beneficial to max out. Only then can we calculate the conversion amount and choose the most beneficial way to pay the taxes. Finally, after we build this strategy into our planning software, we review our approach in detail by analyzing the effect on a client’s cash flow, income tax rate, estate plan, and Medicare surcharges- an important detail that is frequently overlooked. 

Many individuals are unaware of how big an impact that additional Medicare premium costs can have on a plan. With taxable income increasing throughout retirement due to Required Minimum Distributions, along with inflation adjustments to the premiums over the years, these surcharges may be more than $30,000 per year by the end of a plan for a married couple. But good news, there are often ways to minimize this with strategic tax planning!

Sound complicated? Let MFG do the work! Through the planning process and our investment advisory relationship, we review plans annually and implement the Roth conversion strategy. By reviewing the details with our clients, we make sure they fully understand the impact before we implement it. We also use an advanced tax program to simulate the tax return and calculate the tax due in the year the conversion occurs. 

Scenarios like this are just one reason an investment advisory relationship could benefit you. We truly care about our clients and take the extra steps to find solutions to improve their financial picture. Our relationship includes meetings at least annually to make updates to their plan and catch up on life. We love the relationship we build with our clients; this is the reason behind WHY we do all of this in the first place. 

Even if you call yourself  “financially savvy” and don’t believe you need a financial planner, think again. There is so much more to financial planning than you ever thought possible!

Krista McBeath, author of The Generational Wealth System, is an Investment Advisor, Chartered Financial Consultant, a Licensed Insurance Advisor, and a Fiduciary. As an experienced tax advisor, she specializes in financial planning, investments, and insurance. Phone 309-808-2224 or email [email protected] for appointment information.

Advisory services are offered through Landmark Wealth Management Inc, dba McBeath Financial Group, an Illinois Registered Investment Advisor firm. Insurance products and services are offered through McBeath Tax and Financial Services, LLC. McBeath Financial Group and McBeath Tax and Financial Services, LLC. are affiliated.


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