Protecting & Preserving Wealth

Bruce Hosler

In the Protecting & Preserving Wealth podcast, Bruce Hosler discusses and provides timely answers to important topics for our listeners: • Tax Reduction Strategies • Financial & Estate Planning • Investment Management • Retirement Planning • Insurance Strategies • Business Owner Exit-Planning Strategies • Current Events and their Market Effects We started the podcast because a number of clients have questions, and this is a way for us to give them a venue to listen to different answers on all the things they're concerned about today. First and foremost, foundationally, for most people, taxes are a very important thing. We always start with taxes and then we go from there and work on financial planning issues like retirement. Am I going to have enough? How am I going to leave my stuff to my legacy, to my kids and family? In estate planning, we include asset management because everybody wants to know where their money's invested and how safe and how protected it can be. And how can it grow in the face of this inflation that we're facing today. And finally, we use insurance strategies to make sure that when the moment of truth arrives, everything's okay for the family. Throughout this podcast, we're going to meet the Hosler team and how each of them plays a role in securing your financial future. Hosler Wealth Management, LLC can be reached in their Prescott office at (928) 778-7666, in their Scottsdale office at (480) 994-7342, or on the web at https://www.hoslerwm.com/. Securities and advisory services offered through Commonwealth Financial Network®, Member www.FINRA.org/www.SIPC.org, a Registered Investment Adviser. 700 S. Montezuma Street, Prescott, AZ 86303. Phone: 928.778.7666. The Financial Advisors associated with this Podcast may discuss and/or transact business only with residents in states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state. Please check Broker Check for a list of current registrations. Information presented on this site is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any product or security. Fixed insurance products and services are separate from and not offered through Commonwealth. Tax preparation and accounting services offered by Hosler Wealth Management, LLC are separate and unrelated to Commonwealth. Commonwealth Financial Network® does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation. Forward-looking commentary should not be misconstrued as investment or financial advice. The advisor associated with this podcast does not monitor for comments and any comments should be given directly to the office at the contact information specified. Investments are not FDIC- or NCUA-insured, are not guaranteed by a bank/financial institution, and are subject to risks, including possible loss of the principal invested. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding Federal or State tax penalties or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. The accuracy, completeness, and timeliness of the information contained in this podcast cannot be guaranteed. Accordingly, Hosler Wealth Management, LLC does not warranty, guarantee, or make any representations or assume any liability with regard to financial results based on the use of the information in this podcast. Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia Protecting & Preserving Wealth (podcast) is owned and produced by Hosler Wealth Management, LLC Prescott Office: 700 S Montezuma St Prescott, AZ 86303 Tel. (928) 778-7666 Scottsdale Office: 7400 E Pinnacle Peak Rd Suite #100 Scottsdale, AZ 85255 Tel. (480) 994-7342 #HoslerWealthManagement #Protecting&PreservingWealthPodcast #BruceHosler #ProtectingWealthPodcast © 2022 - 2023 Hosler Wealth Management, LLC, All Rights Reserved. read less
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Episodes

Tax Questions When Exit Planning For Your Business
Feb 21 2024
Tax Questions When Exit Planning For Your Business
Today,  Bruce and Jason Hosler of Hosler Wealth Management dive into the complexities of exit planning and tax issues related to selling a business. We kick off discussing the importance of understanding a business's structure when preparing for a sale. The structure, whether it's a sole proprietorship, partnership, LLC, S-corporation, or C-corporation, significantly impacts tax implications. We note that some business owners even change their structure before a sale for better tax treatment.There are differences between selling business assets and selling stock. Selling assets involves transferring individual business components, while selling stock means transferring ownership of the entire entity. This choice affects tax payments and liabilities. Asset sales might allow for a step-up in basis, reducing capital gains taxes, whereas stock sales can involve fewer transactional steps.We then explore how to determine a business's fair market value before a sale. It's industry-dependent, often involving multiples of EBITDA or gross revenues. It's important to engage a professional firm for valuation, considering factors like hiring family members or owning vehicles through the business.Next, we delve into capital gains tax rates and their application to business sales. These rates vary based on income, with different thresholds affecting the percentage of capital gains tax. We discuss the benefits of installment sales in managing these taxes, spreading out capital gain recognition over several years.The net investment income tax (NIIT) also comes up, a 3.8% tax on certain investment incomes, including capital gains, applicable above specific income thresholds. We touch on Section 1202, beneficial for C-corporation stockholders, potentially excluding a significant portion of gains from taxes.We cover the concept of installment sales, useful for business sellers who don't need all the money upfront. This can keep capital gains tax at a lower rate. We also discuss deducting business expenses related to the sale, like valuation, legal fees, and brokerage commissions.Depreciation recapture is another critical topic. When businesses sell assets like real estate or equipment, the IRS requires recapturing previously claimed depreciation, often taxed at 25%. This can be a surprise for many business owners.State-level taxes are crucial too, as they vary widely. For instance, California has specific capital gains taxes and withholding requirements for real estate sales. We also explore selling a business to an employee stock ownership plan (ESOP), which can be tax-advantageous for both the seller and the employees.Section 1031 exchanges are relevant for real estate assets within a business sale, allowing deferral of capital gains tax when exchanging like-kind properties. We stress the importance of due diligence in identifying potential tax liabilities before a sale and the role of careful planning in addressing employee benefits during the sale process.Finally, we discuss the factors influencing the form of payment for a business sale, such as cash, stock, or a combination. The choice can significantly impact the sale price and the seller's financial needs. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
2024 Election Year Market Outlook
Feb 7 2024
2024 Election Year Market Outlook
Today we have a comprehensive discussion with Bruce Hosler and Alex Koury of Hosler Wealth Management about the market outlook for 2024. We're now into a Presidential election year, and Alex addresses the common concern about the impact of presidential elections on market performance. Historically, the market has averaged an 11.6% return during election years, regardless of the winning party. This trend suggests that the political landscape may not be as influential on market performance as often perceived.But Bruce cautions against expecting a smooth market ride in 2024, despite the historical data. He highlights the unpredictability of the market, especially considering the significant influence of the 'Magnificent Seven' stocks. These stocks have driven a large portion of the S&P 500's growth but also pose a risk of correction. This underscores the need for investor preparedness for potential market volatility.While the S&P 500 saw a 24% increase in 2023, again, this was largely due to the 'Magnificent Seven.' For a similar rally in 2024, a broader range of stocks would need to contribute to market gains. He also emphasizes the importance of being aware of market risks, including the potential impacts of Federal Reserve policies and global events.Bruce Hosler then shifts to other investment opportunities beyond the 'Magnificent Seven,' suggesting a need for diversification. He discusses the impact of Federal Reserve policies on interest rates and the implications for various sectors, including small caps and companies affected by interest rate changes. He also stresses the importance of a diversified portfolio and a long-term investment strategy, using examples like Microsoft and Costco to illustrate potential opportunities outside the dominant stocks.The conversation then turns to broader economic considerations. Bruce Hosler discusses the housing market, consumer spending, and employment trends, suggesting cautious optimism for the economy in 2024. He notes the potential for a mild recession but does not foresee a severe downturn unless triggered by significant geopolitical events.Finally, we emphasize the importance of strategic investment planning. Investors should assess their financial goals and risk tolerance and not miss out on potential market opportunities due to fear or uncertainty. Have a financial plan that aligns with your investment timeline and risk profile. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
2024 Interest Rate Outlook
Jan 17 2024
2024 Interest Rate Outlook
Today, Bruce and Jason Hosler delve into the financial landscape of 2024, focusing on the pivotal role of interest rates, the ongoing impact of inflation, and the potential influence of the presidential election on the economy.The Federal Reserve had significant influence on the financial events of 2023, particularly through historic rate increases and a subsequent pause. We collectively foresee this trend continuing to shape the markets in 2024. We recognize that the market's recent fluctuations are largely a result of the COVID-19 pandemic and the government's response, which included aggressive measures to combat rising inflation.We explore the possibility of the Fed reducing interest rates in 2024. While the Fed has indicated potential rate cuts, the bond market anticipates more substantial reductions than what the Fed currently projects. This suggests that the market is expecting a 'soft landing' strategy from the Fed, aiming to control inflation without leading to a recession.A recession in 2024 is a possibility, contingent on specific adverse events such as a resurgence in inflation or escalating geopolitical tensions. There's a wide range of predictions among analysts regarding the Fed's actions and the potential for a recession, reflecting the current climate of uncertainty in the financial markets.Of course, 2024 is a Presidential election year. The Fed, despite its efforts to remain politically neutral, faces pressure to maintain a stable economy during an election year. There is a complex relationship between political parties and economic performance. Incumbents, regardless of their party, are vulnerable to public dissatisfaction in times of economic downturn.Inflation remains a primary concern for us. We observe that despite a decrease in the inflation rate, the cost of living remains high for most Americans. Bruce and Jon cite McDonalds and Burger King, respectively, as examples.We also touch upon the oil market, noting a recent decrease in prices and the potential impact of Middle Eastern geopolitics on global oil prices. This could influence the Fed's interest rate decisions if it leads to increased inflation.For short-term interest rates, we predict that a decrease in these rates could prompt investors to seek higher yields elsewhere, potentially increasing market volatility. We anticipate a swift shift in investor behavior as returns on safer investments like money market accounts diminish. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
The US Debt Clock - And What It Can Tell You
Jan 3 2024
The US Debt Clock - And What It Can Tell You
Today, Bruce Hosler and Jon Gay dive into the financial realities of the United States, focusing on the website USDebtClock.org. This website offers real-time data on national finances, including our ever-increasing national debt. As of this podcast, the U.S. national debt is at about $33.7 trillion, a steep increase from $27 trillion just three years ago.We also discuss the significance of debt-to-GDP ratio. Currently, the U.S. debt-to-GDP ratio stands at an alarming 124.42%, which is far higher than it has been in past years. This ratio is concerning for several reasons, especially considering that federal spending continues to increase, contributing to a budget deficit of approximately $1.85 trillion.The rising interest on the national debt is another red flag. At present, interest payments on the debt are about $673 billion per year, a number that could soon surpass our national defense spending. In fact, projections for 2027 show interest payments on the debt could exceed $3 trillion.Aside from the national debt and budget deficit, we also address some of the most significant budget items in the U.S., such as Medicare/Medicaid, Social Security, and Defense spending. The Medicare Trust Fund, for example, is set to run out of money by 2028, which would require hard decisions on benefits cuts or tax increases.What does all this mean for you? Americans should prepare for fiscal difficulties in the next five years.  Tax increases may be on the horizon, especially when the Tax Cuts and Jobs Act expires in 2025. We offer advice for listeners on how to protect themselves from these looming challenges.Resources:US Debt Clock: https://usdebtclock.org/Increase in Baby Boomers Article:https://www.investors.com/etfs-and-funds/retirement/retirement-planning-reckoning-arrives-as-baby-boomer-generation-hits-peak-65/#:~:text=According%20to%20the%20U.S.%20Census,will%20be%2065%20or%20older For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
The S&P in 2023 and The 'Magnificent Seven'
Dec 20 2023
The S&P in 2023 and The 'Magnificent Seven'
Today, Bruce and Alex Koury talk about the S&P 500's present situation and potential future growth, emphasizing the role that specific stocks and more general investment strategies play in these turbulent times.Alex begins by outlining the S&P 500's incredible 2023 performance, powered mainly by seven stocks—dubbed the 'Magnificent 7.'   These are IT behemoths like Apple, Amazon, Meta, Google, Microsoft, NVIDIA, and Tesla, who together accounted for 80% of the index's returns. At the same time, the 493 stocks that were left were essentially unchanged. This concentration calls into question the durability of such growth and the possible consequences of excessive reliance on a small number of well-performing firms.Bruce highlights how AI is driving these tech firms, and he recommends that investors should be cautious about the anticipated downturn in the market, even though they might still perform well in 2024. Bruce draws attention to the risk of recency bias, which occurs when investors assume that the future will look like the recent past and may fail to see other investing opportunities.What about financial tactics in light of inflation and varying interest rates?  Bruce draws attention to the recent decline in the 10-year Treasury yield and speculate that there may be opportunities to purchase fixed-income securities, especially bond mutual funds trading below par.  He also discuss how the Federal Reserve's interest rate policy may impact money market funds and CDs.  Bruce also counsel listeners to incorporate diversification and long-term planning into their investment plans.Alex cautions listeners not to fall victim to recency bias and the hype surrounding AI and tech stocks. Even though these stocks have done well, it is still worthwhile to investigate other industries and prospects. In addition, he stresses the value of having liquidity and getting ready for possible market turmoil in 2024.As the episode ends, Alex and Bruce stress the value of diversification—not just in terms of asset classes but also in taking into account industries other than the tech stocks that have been performing exceptionally well. They also discuss the possibilities of annuities and fixed-income investments in the current economic environment. They remind listeners that, particularly in the face of persistent inflation, a balanced approach to investing is necessary, one that considers both short-term income requirements and long-term gainn. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
The Corporate Transparency Act - What You Need to Know
Dec 13 2023
The Corporate Transparency Act - What You Need to Know
Bruce and Jason Hosler discuss the Corporate Transparency Act (CTA) implications for small business owners. The CTA, a new regulation set by the Treasury Department's lesser-known division, The Financial Crimes Enforcement Network (FinCEN), mandates that most small businesses disclose comprehensive information about their beneficial owners. This mandate includes personal and contact details, requiring a new application process starting January 1st, 2024.Bruce elaborates on the Beneficial Ownership Information (BOI) regulations, which define a beneficial owner as anyone who either directly or indirectly exercises substantial control over a company or owns at least 25% of its shares. For sole member LLCs, like Jon's, our co-host, only the member's information is needed, not their spouse's. However, there are concerns about the security and accessibility of this information, as it will be available to various government agencies for national security and law enforcement purposes.The conversation also touches on the genesis of the CTA, rooted in the government's efforts to combat money laundering. However, the broad scope of the act means that even small businesses are required to comply, with significant penalties for non-compliance, including a $500 daily fine and potential jail time. Businesses can start reporting on January 1, 2024, but those established in 2024 will have only 90 days post-formation to file their initial report. Businesses that began prior to January 1st, 2024, will have until January 1, 2025, to file.Bruce advises businesses to start preparing now by identifying beneficial owners, designating a compliance officer, updating legal records, familiarizing themselves with the reporting form, seeking professional help, and staying informed about legal changes. Jason adds that businesses should consider forming new entities before 2024, closing inactive ones, avoiding filing in states promoting anonymity, and incorporating CTA considerations into business transactions.Jason says that owners should close any businesses that are no longer in operation, and if you're thinking of opening a business in 2024, doing so before the end of 2023 will give you until the end of 2024 to file your BOI reports.Finally, a reminder: This episode was recorded on November 29, 2023. The information discussed is subject to change, and listeners should stay updated, especially with potential tax updates at the end of the year. We will update this information as it comes in, especially in the first quarter of 2024.Resources mentioned in today's episode:Financial Crimes Enforcement Network (FINCEN) Website: https://fincen.gov/Beneficial Ownership Information (BOI) Page: https://fincen.gov/boi For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Use the Buckets of Money strategy for retirement income
Dec 6 2023
Use the Buckets of Money strategy for retirement income
In this episode of the "Protecting and Preserving Wealth" podcast, host Bruce Hosler and Jon Gay dive deep into the Buckets of Money strategy for retirement income. Amidst a backdrop of stock market volatility, geopolitical tensions, and inflation, Bruce presents the Buckets of Money strategy as a safeguard against Sequence of Return Risk—a serious risk retirees face when market downturns coincide with the early years of retirement.Bruce breaks down the strategy into four distinct "buckets," each designed for a different period of one's retirement. The first bucket covers years 1-5 and is heavily oriented towards conservative fixed-income investments. Buckets two, three, and four progressively invest in riskier assets, aligned with the time when you'll need the money from those buckets. This  design approach is to protect you against short-term market fluctuations while also providing an avenue for long-term growth to combat inflation.One highlight of the episode is the concept of dividing one's IRA into two parts: an "income IRA" and a "growth IRA." This demarcation adds clarity, helping clients understand from which account they'll  draw their immediate income and which one is for future growth.  Such segmentation also acts as a psychological safety net, discouraging panic selling during market downturns.  As for the question on everyone's mind—what about taxes?—Bruce shares insights from his upcoming book, Moving to Tax-Free™.  Predicting that tax rates could double in the next decade, he emphasizes the value of tax-free accounts like Roth IRAs. These should generally fall into buckets three or four, maximizing their potential as a hedge against future tax hikes. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
What Did You Learn About Money Growing Up?
Nov 15 2023
What Did You Learn About Money Growing Up?
In this episode of the Protecting and Preserving Wealth Podcast, Jon Gay and Bruce Hosler discuss the importance of early financial lessons and their lasting impact. Bruce begins client relationships by asking them clients about their childhood money experiences, highlighting how these early lessons shape our financial behaviors.Today, we explore how different family dynamics influence financial attitudes. Some families openly discuss money, while others keep it private. Jon shares his middle-class upbringing and how it influenced his budgeting approach, with his wife taking on a key financial role.Bruce, drawing from his experience as a Boy Scout leader; explains the difference between saving and investing, emphasizing the importance of these distinctions for financial decision-making. He stresses the need to teach children and grandchildren about money from an early age.The hosts encourage learning from financial mistakes and providing opportunities for young adults to make their own decisions, both wise and unwise. Encouraging young adults to secure an education and navigating the changing landscape of taxes.This episode is a valuable resource for understanding how childhood financial lessons impact future financial choices. Bruce invites clients, prospective clients, and their families to seek guidance from Hosler Wealth Management to help your children or grandchildren form healthy financial habits sooner rather than later. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Having a Will is Not a Complete Estate Plan
Nov 1 2023
Having a Will is Not a Complete Estate Plan
In this episode of the Protecting and Preserving Wealth Podcast, host Bruce Hosler and Jon dive into the crucial topic of why having a will is only a partial estate plan - exploring the significance of beneficiary forms and their power in estate planning.We begin by explaining the importance of beneficiary forms, emphasizing that they can override the instructions in your will or trust. Bruce highlights the various types of accounts that require beneficiary forms, such as 401(k)s, pension plans, IRAs, annuities, and life insurance policies.You will hear Bruce cover the concept of cascading beneficiaries, where you can designate primary, secondary, and even tertiary beneficiaries. Bruce provides a practical example of how this can be used to ensure your assets are distributed as per your wishes, even in complex family situations.Common problems arise when beneficiary forms are not updated, such as in the case of divorce or the death of a spouse. Bruce explains the legal implications and the importance of keeping these forms current. We stress the importance of coordinating your beneficiary forms with your overall estate planning documents, including wills and trusts. to avoid potential disputes and unintended consequences. In conclusion, Bruce emphasizes the ease and importance of keeping beneficiary forms up to date. I talk about the 'second opinion' service offered by Hosler Wealth Management to help prospective clients navigate their estate planning and beneficiary designations.Remember, estate planning is about ensuring your legacy is passed on as you intend, and understanding the power of beneficiary forms is a crucial step in achieving this goal. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Switching Social Security Benefits
Oct 18 2023
Switching Social Security Benefits
Today, Jon Gay, Bruce Hosler, and Jason Hosler from Hosler Wealth Management discuss various aspects of Social Security benefits and switching strategies. They start by explaining the concept of switching benefits, which allows individuals to switch to a new benefit when they become entitled, especially if it is higher than their current benefit. They emphasize that the Social Security Administration doesn't always notify people about switching opportunities, so individuals may not be aware of higher benefits available to them. You will hear an example of an expert who received a misleading letter from the Social Security Administration, highlighting the importance of understanding the rules. The conversation goes into strategies for determining the best time to file for Social Security benefits, considering factors like health, life expectancy, and spousal benefits. Stressing the importance of using Social Security benefit planning software to explore various options and select the best strategy for each individual's situation.They also discuss the advantages of filing for benefits online and provide advice on how to communicate your intentions clearly when dealing with Social Security offices. Not all Social Security workers have experience handling complex cases, so keeping the process simple can be beneficial.Several switching opportunities are highlighted, including spousal add-ons, divorced spouse add-ons, and survivor benefits. These strategies can significantly increase the amount individuals receive in Social Security benefits. Still, they often require careful planning and knowledge of the rules. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Estate Planning
Oct 4 2023
Estate Planning
Today, Bruce and Jon are joined by Alex Koury, a wealth advisor with Hosler Wealth Management from the Scottsdale office, speaking about Estate Planning in this episode.  We delve into the critical topic of estate planning in a clear and straightforward manner.  Bruce begins by emphasizing the essential role of a Will, especially for parents with minor children.  A Will determines who will care for the kids in unforeseen circumstances, avoiding potential family disputes.The conversation then shifts to the significance of beneficiary designations.  These designations play a pivotal role in asset distribution, particularly for accounts like IRAs and life insurance, often taking precedence over what's outlined in a Will.Bruce and Alex also shed light on recent changes affecting IRAs, notably the SECURE Act of 2019, which has altered the rules regarding IRA distributions. This change has significant implications for how these accounts are passed on to heirs.Another key aspect discussed is the evolving role of life insurance in estate planning. Given recent tax law changes, life insurance is gaining popularity as a tax-efficient tool for wealth transfer. It's not just for the very wealthy anymore.Alex stresses the importance of regular updates to estate planning documents to keep them aligned with life changes, warning against common mistakes, such as assuming estate planning is unnecessary or neglecting document updates, which can lead to unintended consequences.Lastly, we cover planning for incapacity, focusing on durable financial and medical powers of attorney. These legal instruments ensure that someone can make critical financial and healthcare decisions on your behalf if you're unable to do so.Please seek professional guidance for your estate planning needs. Ultimately, estate planning is about securing one's legacy and ensuring the well-being of loved ones, making it a vital but often overlooked aspect of financial planning. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
529 Plan Update for 2023
Sep 6 2023
529 Plan Update for 2023
In this episode of "Protecting and Preserving Wealth," Bruce and Jon dive into a comprehensive discussion about the intricacies and nuances of 529 plans. These plans, designed to aid in saving for educational expenses, offer a range of benefits that extend beyond traditional college savings.We highlight the potential tax advantages of 529 plans, one of which is an appealing opportunity for grandparents and parents to contribute and receive a tax deduction.  Additionally, distributions are tax and penalty-free for qualified educational expenses. The discussion delves into the array of expenses that qualify for these distributions, including college-related costs such as tuition, books, and fees and additional expenses such as computers, internet access, and even K-12 education.They clarify that the earnings on 529 plans used for non-qualified expenses are subject to income tax and a 10% penalty, but the original contributions are not. However, due to the flexibility of these plans, you should rarely have to pay these penalties.  Expanding also on the rules and regulations surrounding 529 plans, such as rollover limitations, investment changes, and beneficiary changes. And examining the recent Secure Act 2.0 reveals new opportunities for 529 plans, for example, the potential to rollover to a Roth IRA for beneficiaries.Listen in and join Bruce and Jon in this conversation, where Bruce underscores the versatility and advantages of 529 plans catering to various educational and financial scenarios.  For those seeking more information or personalized guidance, Hosler Wealth Management can be contacted through their website at https://hoslerwm.com or by phone at 480-994-7342 (Scottsdale) or 928-778-7666 (Prescott). The episode offers a comprehensive exploration of 529 plans, revealing their potential to shape a secure educational future. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Stop Contributing to IRAs and 401Ks
Aug 23 2023
Stop Contributing to IRAs and 401Ks
In this episode of "Protecting and Preserving Wealth," Bruce and Jon discuss a counterintuitive approach: discontinuing contributions to traditional IRAs and 401ks. Drawing insights from IRA distribution expert Ed Slott, I challenge established retirement planning conventions. Slott is a recognized authority in IRA planning, is a professional speaker, best-selling author, and well-regarded by The Wall Street Journal and USA Today. Slott's premise questions the conventional advice of maximizing contributions to tax-deferred accounts. His article in Investment News presents an alternative perspective, suggesting that lower retirement tax rates are not guaranteed. Instead, he argues that deferred withdrawals can lead to higher tax bills during required minimum distributions for those with substantial IRAs.We delve into the implications of Slott's views, emphasizing the value of capitalizing on current lower tax rates. Slott's strategy recommends proactively reducing IRA balances through strategic withdrawals, aligning with lower tax rate periods for wealth transfer. Further discussion of The Secure Act 2.0's 10-year rule for beneficiaries prompts a reevaluation of wealth transfer strategies.Throughout the episode, the focus remains on strategic tax planning, highlighting the potential of Roth accounts and Qualified Charitable Distributions (QCDs) to optimize retirement income and minimize tax burdens.The episode concludes by encouraging listeners to contemplate Slott's insights as a catalyst for informed financial planning and seek advice from professionals.Link to Ed Slott's article: https://www.investmentnews.com/stop-contributing-to-iras-and-401ks-240215 For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
What Happens To My Trust When I Die?
Aug 9 2023
What Happens To My Trust When I Die?
Many of our listeners have established a trust for their assets upon passing. And while nobody wants to think about their mortality, today I explain what happens to that trust when you pass.The first thing that happens is that your living revocable trust becomes an irrevocable trust, and your successor trustee is now in charge of it. Also, the trust will need its own tax ID number and have a return filed for it and any of its income for as long as the trust remains intact. In the event of the passing of a spouse, the surviving spouse or trustee will need to file separate returns for themselves and the trust. I also explain how the estate tax exemption can come into play here.It's imperative to designate a contingent successor trustee. What if your spouse passes or can't successfully administer the trust? You'll want to have someone appointed who can step in.Bruce explains some of the pros and cons of trusts. Trust taxable income hits the highest 35% tax bracket. But income distributed to beneficiaries is taxed at their personal tax rates. And while there's a cost to maintaining a trust, assets in a trust are some of the most protected in our tax code. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Should I Take the Standard Tax Deduction or Itemize?
Jul 26 2023
Should I Take the Standard Tax Deduction or Itemize?
It's a question many taxpayers ask themselves each year.  Should I itemize my deductions, or should I take the standard?  Of course, every situation is different.  But today, I break down some factors that can affect this decision.Since the Tax Cuts and Jobs Act (TCJA) of 2017, there are six main areas where you can claim itemized deductions.  Today, I will focus on four:Medical and Dental ExpensesState and Local Tax (SALT)Mortgage InterestCharitable DonationsMedical and Dental - The catch here is that federally, only expenses exceeding 7.5% of your AGI can be deducted.  In other words, if you made $100,000 last year, you can only deduct these expenses after the $7,500 threshold.  It should be noted, however, that for our Arizona listeners, medical expenses are 100% tax deductible on your state return.State and Local Tax (SALT) - This was limited to $10,000 by the Tax Cuts and Jobs Act, which will sunset in December of 2025 if Congress does not act to extend it.Mortgage Interest - This only applies if a loan was taken out to purchase or improve a home, must be secured against the property, and can only qualify for a primary residence and secondary home (2 total).Charitable Donations - Many of our listeners are charitably inclined and like to give to their church, alma mater, or other institution.  If a gift is large enough, you may want to consider an itemized deduction.It makes sense to itemize your deductions only if the total exceeds the standard deduction amount.  For 2023 that number is $13,850 for single filers and $27,700 if filing jointly.  To see if you itemized in previous years, look for a Schedule A and an itemized deduction amount on line 12 of your 2022 return.Essentially, there are two types of taxpayers: those who will get the most benefit from the standard deduction and those who will need to evaluate this every year. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Secure Act 2.0 Mandates Roth Catch-up Contributions in 2024
Jul 12 2023
Secure Act 2.0 Mandates Roth Catch-up Contributions in 2024
Congress has passed the SECURE Act 2.0. Among the many retirement plan changes are new catch-up contribution requirements. Alex Koury from Hosler Wealth Management joins Bruce today to explain.As you may know, employees aged 50 and over can make "catch-up" contributions to their plans to save more for retirement. Until 2023, these additional contributions could go into the tax-deferred side of a 401(k) plan and be taken as a tax deduction.However, beginning in 2024, highly compensated individuals' catch-up contributions may only go into Roth or after-tax plans. Now, the benefit to the retiree is that money will grow tax-free; the taxes are paid on the way in, not the way out. But here's the caveat, this can result in a significant swing in your 2024 taxes. For example, a $7,500 catch-up contribution will now be taxed instead of a tax deduction. That's a $15,000 swing. At 23% (federal + state), that could increase your tax bill by $3,450!We believe that despite this "short-term pain," there is "long-term gain." With the Tax Cuts and Jobs Act set to expire in 2026, the likelihood of taxes increasing is high. Having already paid the taxes on this money could save you in the long run. We don't want to see you with a nasty surprise on next year's taxes! For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Avoiding Probate Problems
Jun 28 2023
Avoiding Probate Problems
Upon your passing, your estate could end up in probate. All your affairs will become public record, there can be delays on the paperwork, and there will, of course, be attorneys' fees. Jason Hosler rejoins us today to talk about avoiding probate.First, review all your beneficiary designations for all your bank and brokerage accounts. These designations are Payable on Death (POD) for bank accounts and Transfer on Death (TOD) for brokerage accounts. You want a primary, secondary, and tertiary beneficiary for each. And make sure everything is clearly documented!In community property states, including Arizona, you can leave real estate to your spouse with a full step-up in basis, meaning they don't have to recognize or pay capital gains tax on the property. But beware of the trap of retitling a home to your children - Jason explains the pitfalls here.A living trust can also be an essential tool - not when you die, but when you don't. Examples of this include any health incident or incapacitation that prevents you from running your own affairs.Probate isn't all bad. I explain some situations where probate may be the appropriate tool for your estate.We wrap up by discussing digital assets. So much of our lives are now online. With that comes a whole new realm of access and documentation you must be aware of. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Leaving an Inheritance to Your Kids
Jun 7 2023
Leaving an Inheritance to Your Kids
Deciding what to leave to your children - and how to do it - is a challenging topic to bring up. But it's crucially important to take care of this now while you are still able. Some parents want to spend down their life savings and enjoy their retirement. Others pinch every penny so they can leave a larger inheritance behind. And for those leaving an inheritance, some choose to leave it in the form of a lump sum. Others prefer to leave an income stream that can't be easily spent.However, one thing that's easy to agree on is wanting to leave as little a tax burden on your heirs as possible. Today, I will talk about how to pay a little more now in order to cut your kids' tax burden when you're gone.Also, I will walk you through the non-trust estate planning documents that must be kept current.Retirement account (IRA, 401K, etc. . .) beneficiary designations.TOD, and POD designations on bank and brokerage accounts where appropriate.Titling of assets correctly. (Real estate, cars, collections)Lists of personal belongings with assignments of your wishes (guns, gold, silver, jewelry, collections, and artwork)Life insurance beneficiary designations.A current-net worth statementOne of the most important things to do is clearly communicate your wishes with your family. This communication should be in writing and could also be shared during a family reunion or even on a Zoom call!We also cover some tricky topics - what if you have children or grandchildren you're estranged from? Or what if you have a child that may need more of a financial "hand" than a sibling? Equal is not always fair, and vice versa!Also, consider who has the right mindset and acumen to execute your estate. Successor trustees and beneficiaries are two very different things! For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
Income Taxes in 2023
Apr 19 2023
Income Taxes in 2023
As a tax accountant, Bruce Hosler is certainly in his busy season, as he and his team of tax professionals, CPAs, and Enrolled agents are hard at work on the tax returns of Hosler Wealth Management's clients.Bruce's goal is always to move clients to "tax-free" vehicles, meaning repositioning or converting taxable and tax-deferred assets to tax-free vehicles like Roth IRA and 401(k) plans, life insurance retirement plans, and more.Some events, like a Roth conversion, or the sale of property or securities, can be a taxable event, which is important to plan for. Thanks to some sophisticated software, Hosler Wealth Management helps clients plan for the tax bracket they are shooting for. Because the Tax Cuts and Jobs Act of 2017 is still in effect, taxes are historically low.  Bruce talks about what he think the "ideal" tax bracket to be in right now is, and why.Also, be careful about "when" you do Roth conversions - Bruce explains why timing is essential in doing Roth conversions and the major tax implications they can have. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler
The Roth 401(k)
Apr 5 2023
The Roth 401(k)
You may be familiar with a traditional 401(k) retirement plan, but today Bruce Hosler of Hosler Wealth Management will explain how a Roth 401(k) works, how it's different, and the benefits associated with it.In a traditional 401(k), the contributed funds are tax-deferred. Participants don't pay taxes on the way in; that money doesn't count toward their annual taxable income. Many clients love this.However, you do have to pay taxes on the way out.  That can be in the form of required minimum distributions or RMD's. Those earnings count toward your taxable income in retirement, and they could push you over the threshold to have your social security benefits taxed at a higher rate! Bruce breaks down those numbers.Conversely, with a Roth 401(k), taxes are paid at the time of contribution, the funds grow tax free, and they don't count as taxable income when withdrawn.   So, they themselves can never cause your social security benefits to become taxable.  And the annual contribution limits are the same as a traditional 401(k)!Further, the SECURE Act 2.0, passed in December of 2022, allows for matching contributions to Roth 401(k)s, and they are no longer subject to required minimum distributions.Bruce explains why he's a fan of the Roth 401(k), including the ability to save money tax free, the ability to help avoid taxes on social security benefits, flexibility in retirement, and a "bastion of safety" against potentially higher taxes. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmediaCopyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler