A checklist of what may be very critical to your financial future
 

 1)                  Is your investment portfolio positioned for the current investment cycle.  We recommend an overall "Participate Yet Protect" strategy, as much as possible (investments can always have the risk of losses).  Or have you been left floundering in positions which you have been told will recover and that you should just hang in there?  Have you re-evaluated your risk tolerance levels to determine if your investment allocations reflect the current investment cycle? Does your advisor make recommendations based on independent analytical evaluations backed by 25+ years of experience?

2)                  Has your advisor discussed the impact of the zero percent capital gains tax rates for some taxpayers in the 10% and 15% tax brackets for 2008-2010? But because of the inclusion of the gains in determining the tax bracket some taxpayers could pay more than they did in prior years.

3)                  Have you discussed retirement planning, estimated family income needs if you, or your spouse, have an unexpected disability or death?  Is your life insurance reviewed periodically?  Do you have the right amount and type of coverage?  

4)                    If you hold investments in joint tenancy with your spouse, are you aware of the income tax disadvantages of this type of ownership vs. in AZ the income tax advantages of holding investments as "Community Property with Right of Survivorship"?

5)                  If you have parents still living, have you discussed Long-term care planning for them or yourself?  Do you know what your options are, or what type of plan if any, may be suitable for your families needs? A generation ago, you retired at 65 and died at 70 or so.  Today with medical advances many retirees enjoy a happy active lifestyle for 20 years or more after retirement.  The family risk used to be dying too soon. Today the larger risk is living too long and using up family assets.

6)                  If you seek to be responsible and protect your family from having long-term care costs wipe out family assets, has your advisor done side-by-side comparisons of different sponsor plans?   Has he showed you how worthless so called “tax qualified” plans really are when you understand the facts and how it is less likely to pay you benefits and has questionable tax benefits?

7)                  If you have a 401K retirement plan are you confident you have selected the best investment options?  If you seek other alternatives do you know if your plan allows for "in service" rollovers to your own IRA with many more investment options?  Are your beneficiaries set up properly?  If you are self-employed, or have only your spouse working for you, are you aware of the benefits of a "Solo K"?

8)                  Have you considered amending your Living Trust or will to reflect the estate tax exemption changes?  Do you know the advantages of a Living Trust? Have you considered a provision to "sprinkle" income to children and grandchildren to shift income to lower tax brackets?  Does your Trust permit the trustee to postpone distributions for good cause.  This provision may protect beneficiaries from creditors or divorced spouses.  Is the Marital Trust a "Qualified Terminal Income Preservation" (QTIP) trust so that a surviving spouse can not disinherit your children if for example she remarries?

9)                Does your Living Trust or will have the typical "A/B" Trust provision to maximize the estate tax marital deduction? If the estate tax law is not changed for 2010 and you die in 2010, your spouse may wind up with no inheritance. Everything could wind up in the hands of the children via the bypass or marital trust.  At least the marital trust should allow the spouse to use what she needs from the marital trust or she could have no access to any Trust funds.

Regarding trust provisions: We can discuss the tax ramifications and a broad overview, but we can not give legal advice.  Only a qualified trust attorney can make specific legal recommendations and draft the Trust Agreement with the provisions he recommends to you.
 

 We encourage you to ask yourself, does your current advisor discuss these issues with you and make proper recommendations regarding your individual situation. Would you like a second opinion? "FREE" with NO Obligation!

We Take Your Financial Future As Seriously as YOU SHOULD !
Large enough to serve yet small enough to care
Committed to Success Through Client Satisfaction

Securities are offered through Multi-Financial Securities Corp, Member FINRA/SIPC. Investment and tax advice is offered through Hutchison Investment Advisors, Inc, a Registered Investment Advisor. Multi-Financial Securities Corp. is not an affiliated company of Hutchison Investment Advisors, Inc., or Hutchison Financial Advisors.

CERTIFIED FINANCIAL PLANNER^TM and are certification marks owned by the Certified Financial Planning Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.

Updated 1/4/2010