Medal Winning Savings!

You have probably heard the advice that you should maximize contributions to your employer’s retirement savings plan. Because it lowers your current income taxation by deferring pre-tax dollars to the plan and grows tax-deferred until distributed, you are encouraged to save to your employer plan (401k, 403b, etc.). Employers may also match a percentage of what you contribute. This can be a powerful way to save, but it should not be the ONLY way you save for retirement. The following medal-winning strategies might add flexibility, potential retirement tax savings and a more secure future to your retirement savings mix. Bronze Medal Winner The bronze medal winner for savings might seem too simple to have an impact but can add versatility and flexibility when trying to increase tax efficiency in retirement. Many people step into retirement with inadequate non-IRA savings.  This forces them to distribute fully taxable income from their employer plan/IRA each time they need cash and increases their tax liability. For those individuals with a mix of IRA and non-IRA savings, more control can be gained over taxation in Read on! →

Feeling like “the tax man cometh” too often?

With a recent notice from the IRS that the tax filing deadline has been pushed back to May 17th, you may be feeling a little off the hook for now. The pressure is off, at least for the moment.  However, while there is a momentary lull in the action, consider a few facts about taxation which might make you think about taxes differently. Historic Tax Rates While it’s easy to feel like you are paying too much in taxes, especially at this time of year, it’s important to put this in perspective. In 2021, the top marginal tax rate is 40.8%, which is a combination of the top marginal bracket of 37% and the 3.8% Medicare surtax for high earners. That sounds like a very high tax rate but consider that the historic average top marginal tax rate (1925-2026) is 57.5%, with rates in the 1950’s topping 90%.  The marginal tax rate considers the highest tax bracket you hit with your taxable income, while the effective tax rate is the percentage you are effectively paying when your income across all Read on! →

Choosing an Advisor in the Time of Covid-19

If the shelter-in-place restrictions were not enough to take you off balance, the March recession and changes to your ongoing employment likely tipped the scale for you. Given the many months this crisis has continued on and amid so many uncertainties, where should you turn and how do you go about choosing an advisor to partner with for the future? Can you even search for an advisor during Covid-19? Clearview Wealth Management is fully able to meet virtually with you to help determine if there is a mutual fit for your situation and if we have the expertise you need to help you meet your goals. Whatever is driving your search for an advisor, there are some important aspects which should be considered before making your decision. Because this is not a decision most people make more than a few times in their lives, consider the following to help you narrow down your search for the right person. Choosing the Right Advisor – A Clearview Case Study example of advisor characteristics you should consider NAPFA Advisor Comparison Tool  – A Read on! →

Retiring to Charlotte?

Cheryl Sherrard was quoted in a recent Financial Advisor magazine article entitled, “Retiring in Charlotte is all about location, location, location“.  The article mentions that Charlotte is ranked near the top of the 50 best metro areas for retirement, according to MagnifyMoney and Bankrate, but the specific area within Charlotte will determine whether you face sticker shock or a pleasant surprise.