Category Archives: Financial Fact

Approaching the 2018 Midterm Elections as a Rational Investor

Americans will head to the polls in less than one week to vote for their preferred candidate in the United States midterm elections. No matter who controls the House or Senate both parties will no doubt spin their stories jockeying for a perceived mandate.  

The question going into Election Day is: “What are the issues at hand and what is a rational investor to do?”

 

 

“It’s the economy, stupid.” – James Carville, strategist for Bill Clinton’s 1992 presidential campaign 

 

 

Unlike the concerns surrounding Bill Clinton’s presidential campaign, the  issues of today may be in fact, non-issues. The headline unemployment rate has reached historic lows, consumer confidence is higher than before the dot-com bubble, interest rates may no longer be “accommodative” but are no worse than neutral, tax reform boosted paychecks, and the stock market is hitting new records. A frustrated electorate can be found voicing their opinions on every twitter feed and news program, but the economic fundamentals do not support a mass recall of our governing party.  

 

President Trump touted his polling numbers throughout his presidential campaign and has since maintained historically low approval ratings while in office according to ABC News’s  FiveThirtyEight running calculation. While unimpressive overall, there has been a remarkable consistency to the data indicating most Americans disapprove of his presidency. Disapproval as a descriptor may be misguided when judging a man and a president with such a uniquely colorful resume. However, the approval or disapproval of President Trump may not fully encapsulate how Americans will vote for House and Senate candidates of the same party. According to the Reuters/Ipsos polling data, President Trump may face disapproval from Americans who disagree with his character or leadership style but are likely to benefit from his positions on tax reform and deregulation.

 

A rational investor should reference recent examples of misinterpreted polling results as a word of caution – the 2016 presidential election, Brexit, and the unexpected success of Germany’s AFD electoral performance. There appears to be a growing disconnect between headline polling numbers and the eventual results. We may witness yet another departure from traditional polling expectations next week.

 

All 435 House seats are up for reelection this November. Pundits, too numerous to count, are predicting the House will swing left lead by Nancy Pelosi as the new majority leader. As of October 31, 2018, ABC News’s FiveThirtyEight estimates an 85.4% chance of Democrats winning control of the House. Further supporting these predictions are the micro-level shifts in demographics and voting districts that tend to favor Democrats this election season. 

 

The Senate is where things get interesting. Twenty-six of the 35 Senate seats up for grabs are held by Democrats, indicating that the odds favor a continuation — or increase– of Republican control of the upper body. 

 

Regardless of Tuesday’s outcome, corporate CEOs will return to work on Wednesday morning, and American consumers will begin their holiday shopping season. A rational investor should maintain a long-term investment horizon while rebalancing portfolios when market volatility skews the target allocation beyond an acceptable tolerance band.  

 

If you have any concerns or questions regarding the the impact of 2018 U.S. midterm elections on market activity, reach out to a member of the Willis Johnson & Associates team to schedule a conversation with one of our financial professionals.

 

Join Vice President Nick Johnson as he dives into an  in-depth review of recent market activity during our Market Update webinar. Click here to browse our upcoming webinar presentations and register today.

 


SOL_3311 (2)Tyler Baker, CFP®

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Tyler Baker is an associate wealth manager at Willis Johnson & Associates.Tyler enjoys guiding individuals and their families through the financial planning process, and he specializes in uncovering new opportunities that work to minimize client expenses, while increasing their savings.

 

Tyler graduated from the University of Georgia with two degrees, a Bachelor of Science in financial planning, and another in housing management and policy. 

 


 

Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions.

What Nick’s Reading | You Could Increase the Value of Your Shell 80 Point BRP Pension by More Than $200K by Retiring 31 Days Earlier

 

Most of our Shell clients do not realize that their pension can be impacted by interest rates. Specifically, their Shell 80 Point Benefit Restoration Plan (BRP) Pension.

 

For high income earners that have spent their entire careers at Shell, properly managing this impact may amount to saving hundreds of thousands of dollars—especially for those that are planning on retiring in the near term.

 

This article will walk you through how interest rates impact your Shell 80 Point Benefit Restoration Plan Pension payout and what you can do about it.

 

A Brief History of Interest Rates

Economists have been continually calling for interest rates to increase for nearly a decade and now, we are beginning to see this happen. 

 

As you may know, the Federal Funds Rate (FFR) for 2018 started at 1.42% on January 4, 2018 with three rate hikes so far, not including the additional rise in rates we will likely experience by the end of this year. The FFR reached 2.18% on October 16, 2018.

 

Likewise, on January 2, 2018, the 10-Year U.S. Treasury started the year off at 2.46% and increased to 3.16% by October 16, 2018. Compared to historic trends, we are at unprecedented low levels of rates.

 

Note, this does not mean rates will go up immediately. Economists have been wrong for a number of years, and just because we have seen a major movement in rates this year doesn’t mean they will keep going up next year. However, we do know that the rise in rates we have already experienced from September 2017 to September 2018 is going to impact the value of pension lump sums for our Shell clients retiring in the near future.

2018 Intere

 

Wait My Shell 80 Point Pension is an Annuity, Interest Rates Shouldn’t Affect Me!

 

Yes, your Shell 80 Point Pension is required to be paid out as an annuity. You cannot take it as a lump sum. Interest rates primarily affect lump sum pension payouts.

 

What you may be forgetting is the 80 Point Benefit Restoration Plan (BRP) Pension. If you are a highly compensated employee of Shell Oil and are on the 80 Point Shell Pension Plan, it is likely that Shell is making contributions to the Shell 80 Point BRP Pension on your behalf. When you retire, Shell pays a lump sum benefit to your BRP Pension approximately 90 days after your retirement date (6 months if you are considered a key employee). The Shell BRP Pension is immediately taxed at distribution. If you want to learn more about how to minimize taxes, read my article on Shell BRPs and taxes.

 

The Shell Benefit Restoration Plan Pension is a non-qualified pension plan, meaning it does not receive the same preferential tax benefits as your qualified pension.

 

For most retirees, this means the Shell BRP Pension is paid out within 90 days of retirement and immediately taxed. You cannot roll your BRP over into your 401(k) or IRA. You cannot elect to defer receiving proceeds from your BRP over time (unless you have an Old Money contribution, or made prior to benefit elections in 2007).

 

Changing Your Retirement Date May Save You More Than $200,000 in Taxes on Your Shell 80 Point BRP Pension Lump Sum Payout

 

November 30th Retirement Date

 

For this example, let’s assume the Shell employee meets the following criteria:

 

a) 60-year-old retiring November 30th

b) Pension starting on December 1st

c) Average Final Compensation is $600,000

d) Thirty years of service with Shell

e) The value of both the traditional 80 Point Pension and BRP Pension is worth $24,000/month

f) Netbenefits is showing a traditional 80 Point Pension of $11,000/month

g) Life Expectancy is 83.2 years

 

If we run the math on the above example, then the value of the lump sum BRP Pension is worth around $2,629,000.

 

Let’s briefly walk through how the math works to perform a rough calculation of the estimated value of the BRP Pension lump sum. Essentially, it comes down to basic time value of money. Since the lump sum is simply the present value of future estimated monthly BRP annuity payments, we need to calculate a summation of all future BRP theoretical annuity payments over the employee’s estimated life expectancy discounted by the applicable rate. 

 

PV = PMT1/(1+r)1 + PMT2/(1+r)2 … PMTN/(1+r)N.

 

Remember, as interest rates go up, the pension value will go down, and vice versa.

 

The Recent Changes in Segment Rates and Their Impact on Your Shell 80 Point BRP Pension Lump Sum Payout

 

You may have noticed that rates from September 2017 through August 2018 have risen significantly. The September 2017 rates will not be published until October 12, 2018, but we can estimate what they will be with a reasonable degree of accuracy.

 

Note, higher interest rates mean a lower value for your Shell 80 Point BRP Pension lump sum.

 

Segment Rates

December 31st Retirement Date

Let’s re-run the above example and change the Shell employee’s retirement date to be 31 days later than the previous example.

 

a) 60-year-old retiring December 31, 2018

b) Pension starting January 1, 2019

c) Average Final Compensation is $600,000

d) Thirty Years of Service with Shell

e) The value of both the traditional 80 Point Pension and BRP Pension is worth $24,000/month

f) Netbenefits is showing a traditional 80 Point Pension of $11,000/month

g) Life Expectancy is 83.2 years

 

If we re-run the example with a December 31, 2018 retirement date and a pension start date of January 1, 2019, then the value of the lump sum is worth approximately $2.4 million—that is a difference of around $229,000! Simply by retiring 31 days earlier, this Shell employee could save hundreds of thousands of dollars!

 

Who Can Benefit From This Shell 80 Point BRP Pension Strategy?

Those who should be considering this strategy are Shell employees who are planning to retire in the next 18 months, but are also able to retire at an earlier date. This strategy may not fit those taking voluntary severances as Shell may have requirements for their termination date, and the severance can be worth a substantial amount as well.

 

We are helping our Shell clients who are looking at retiring in the next 18 months to analyze their choices considering today’s rising rates so they can make the best election decision for their situation. Of course, taxes, other financial assets, personal goals, and financial needs all come into play. That’s why we perform a comprehensive assessment with our clients, instead of simply looking at one item.

 

If you are looking at retiring in two to five years, and are concerned about how rising rates may affect your lump sum pension, don’t over react. The value of your pension will increase by working longer and no one knows exactly how much rates are going to rise.

 

Please note, this a general education article illustrating some of the ways we help our clients make complex financial decisions. Before you make any decision, we recommend you work with a fiduciary financial advisor and seek confirmation about your pension benefits and choices from Shell HR. There are numerous employees at Shell who have varying pension rules due to acquisitions, obtaining U.S. citizenship, being on the APF pension plan instead of the 80 point, as well as additional factors. It is best to confirm how your retirement date affects your pension before making any decisions.

 

If you have questions about your Shell benefits and would like to get a second opinion, contact one of our advisors who specialize in helping Shell employees make the most of these retirement savings tools.

 

 


nickNick Johnson, CFA®, CFP®

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Nick Johnson believes that financial planning is more than numbers on a balance sheet and a standardized process. People are unique and should be treated as such.

 

As Vice President and Wealth Manager at Willis Johnson & Associates, his goal is to really get to know his clients, all the while providing a proactive approach to comprehensive wealth management.

 

 


 

 

Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions. 

Financial Fact | Estate Planning Essentials You May Not Know You’re Missing

When you are young and healthy, estate planning is often an overlooked part of the retirement planning process.  

However, it is an important piece of your retirement plan that you should be thinking about as you are building your asset base, getting married, starting to have children, or moving into retirement. 

 

You want to protect the people who are most important to you. Having a solid estate plan in place serves to provide for your loved ones when and if you are no longer around to do so. The following sections address the three most pressing questions people have about their estate plan: Where will my money go? How will it get there? What should I do if I want to leave money to charity?

 

Where Will My Money Go and How Will It Get There? : The Importance of Updating Beneficiaries and the Use of Testamentary Trusts for Your Estate Plan

 

For a majority of our clients, retirement accounts hold the bulk of their asset base. Such accounts may include their IRAs, Roth IRAs, 401(k)s, life insurance policies, annuities and more.

 

Beneficiary Designations

 

While many of an individual’s assets will be transferred at death by their will, a majority of their retirement accounts have beneficiary designations that guide how each asset will pass. If you do not have beneficiary designations in place, or these designations do not match what is outlined in your will, you or your family may encounter problems further down the road.

 

If your estate is fairly simple, you can use beneficiary designations to direct how your assets will be managed at your time of death. However, as you get older and accumulate more assets, it is essential to have a properly drafted will to guide when and how your assets will be distributed. This may require more in-depth estate planning and periodical reviews to ensure your legacy is protected and your money moves in the direction you intended.

 

It is important to note that certain assets will pass by beneficiary designations, regardless of provisions in your will.  For example, since life insurance policies are contracts between a policy owner and an insurance company, life insurance proceeds will be paid to the named beneficiary, even if your will says otherwise.  Neglecting necessary changes to beneficiary designations can often result in unnecessary costs to resolve disputes among family members, which can be avoided by early planning. Therefore, it’s critical to regularly consult with your attorney and financial professionals to confirm that your assets will be distributed in accordance with your wishes. 

 

Testamentary Trusts

 

A testamentary trust can help ensure your money moves to your beneficiaries when and how you want it to. If your will does not include testamentary trusts, your assets will pass to your beneficiaries directly. Those assets will be included in their estates and will be subject to creditors in the instance of a divorce or lawsuit.  Without the use of testamentary trusts, there is also no assurance that the assets will stay in the hands of your family.

 

Additionally, if your children are young adults when you pass, they may have immediate access to a large sum of money. Depending on your child’s money management skills, this may be a concern worth addressing. Testamentary trusts can allow for another person to manage your child’s assets until they the child reaches an age at which they may be better equipped to make wise financial decisions.

 

Consider that you have a child, age 18, and you have accumulated $1 million in your 401(k) and $1 million in life insurance benefits. What if you and your spouse passed away today? What would happen to your estate?  Your child is no longer a minor so they would inherit $2 million and have outright control over those funds.  While many 18-year-olds are quite responsible, it may be an overwhelming responsibility to manage that amount of money.  Setting up a trust for them in your will could allow for an older, more responsible adult to step in to control and protect the assets for the benefit of your child, until he or she is old enough to make those decisions for themselves. 

 

Such situations illustrate the importance of reviewing and updating your will, beneficiary designations, and additional supporting documents after any major life event (divorce, remarriage, birth of children, etc.), or any time you update your legal documents. 

 

What Should I Include In My Estate Plan If I Want To Leave Money To Charity?

 

In addition to helping family members, many people want to support charity with the assets they leave behind. In such cases, it is generally better to donate a qualified retirement plan to charity instead of a Roth IRA or after-tax account. Why? Because charitable organizations do not have to pay income taxes and you can save your tax-free accounts for your beneficiaries who do have to pay income taxes. You can also receive an estate tax deduction by donating to charity (if applicable). 

 

If you are charitably inclined and want to include charities in your will, be cautious of how you set up your estate plan. 

 

For example, consider that you name both a charity and your spouse/child as beneficiaries to an IRA account. If the retirement account is not split between beneficiaries in a timely manner, your loved ones may be forced to take their share of the retirement account out all at once instead of over their respective lifetimes. As a result, they will miss out on the tax-deferred status of an Inherited IRA and pay more taxes on the money you leave behind.

 

A well-drafted and coordinated estate plan is a crucial piece of a comprehensive financial plan.  You should review your wills and beneficiary designations a minimum of every 5 years, or anytime you have a major life event, to ensure that the estate you have worked so hard to build is protected for your loved ones. Take a second look at your estate plan with the help of a Willis Johnson & Associates advisor by scheduling a free consultation today.

 


alaxisAlexis Long, MBA, CFP®

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Alexis Long is a wealth manager at Willis Johnson & Associates. For Alexis, financial planning combines an interest in producing detail-oriented financial plans with a desire to help people obtain their goals, ranging from retiring early, paying for their grandchildren’s educations, buying a second home or leaving a legacy for their children. Understanding what is truly important to a client is key to good financial planning, along with providing solid technical advice.

 

Alexis earned her undergraduate degree in International Business from Texas Tech University and her Finance M.B.A. from the University of St. Thomas.

 


 

 

Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. We are not attorney’s or tax advisors therefore please be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed that may have legal of tax implications. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions.

Financial Fact | Will You Optimize Your Employee Benefits Elections This Fall? Here’s What You Should Consider BEFORE Open Enrollment

Published: September 14, 2018

Open enrollment is fast approaching for many of Houston’s corporate professionals and executives.

 

Employee benefits are an often overlooked piece of a corporate professional’s total compensation. However, if optimized properly, the benefits one elects can make a drastic difference in their cash flow and help mitigate their potential financial risks.

 

Employees at many major energy companies can make elections on a wide range of coverage such as life insurance for themselves and their spouse, short and long-term disability, and more. Many of our clients work for companies like BMC, Shell, Chevron, and Chevron Phillips and will be required to make the benefit elections during the open enrollment periods listed below:
• Chevron and Chevron Phillips: October 15 through October 26, 2018
• Shell: October 10 through October 24, 2018
• BMC Software: October 30 through November 10, 2018

 

Optimizing Your Employee Benefits Election: What You Should Consider Before Your Open Enrollment Term

 

Our firm seeks to help employees optimize their coverage by assessing their actual needs based on a number of factors. Too often, we see corporate professionals and executives rely on a basic rule of thumb to determine how much coverage they should purchase. They inevitably find themselves either under or over-insured. We find that a majority of the clients we begin working with are over-insured and are unknowingly spending money on unnecessary coverage.

 

What do we assess to determine the right amount of coverage for each client?
• Income
• Asset base
• Current health status
• Family health history
• And more depending on their unique situation

 

It’s necessary to take an in-depth look at these factors of an employee’s life to determine an appropriate level of coverage for their dynamic financial journey. A proactive financial advisor will use this assessment to build out a comprehensive cash flow analysis that models various disability and premature death scenarios. These models closely reflect the proper level of coverage needed to ensure an individual is not paying excess premiums while continuing to protect their loved ones in the case of an unforeseen incident.

 

An employee’s benefits elections occur once annually, and the coverage they choose will determine their respective premium payments. Once an employee makes the election, they are locked into their benefits plan until the next year’s election period.

 

Analyzing the coverage you need is not something that should be put off until the last minute as it’s a decision that will affect your net and gross pay for the year ahead.

 

Short-Term and Long-Term Disability Insurance: The Cost of Employee Benefits and How to Determine the Value of Your Options

 

Short and Long-Term Disability Insurance

Some premiums, such as short-term disability insurance are relatively cheap. However, we often find that the corporate professionals and executives we begin working with have a large enough asset base to support their financial needs in the event they cannot work for a brief period of time.

Although long-term disability insurance is accompanied by more expensive premium payments, it’s something we strongly recommend purchasing for our clients that have a longer period of time before retirement.

 

Life Insurance

Many of Houston’s corporate professionals and executives are provided with life insurance coverage that covers one to three times their base salary for free by their employer. We often see clients purchase additional insurance through their employer for themselves, their spouse, and even their children. We always tell clients to bear in mind that life insurance should be used as income replacement in the event they pass early, not an investment. In other words, it should be viewed in terms of maintaining your household’s standard of living when you’re no longer around to provide the income to do so.

 

Ask yourself what level of financial support your family will need to cover your household’s expenses without your contributed income. Such expenses may include your mortgage, a child’s college costs, your spouse’s current and future retirement needs, and more.

 

Again, it’s important to note that by being over-insured, you are giving up after-tax money that could otherwise be invested, used to buy a new car, put children through college, make home improvements, set aside for a rainy day fund, etc.

 

These are only a few examples of the common coverage missteps we have observed among corporate professionals and executives who complete their benefits elections without seeking a second opinion. If you have questions about your coverage options and needs, please reach out to our firm to schedule a free cash flow consultation before your company’s election season begins.

 

Related Articles:

Financial Fact | What You Need to Know About Medicare BEFORE You Turn 65
Financial Fact | What Shell Retirees Need to Know About the NEW Shell Medicare Advantage PPO Plan
Thoughts From Willis | What it Means to Have a Proactive Versus a Reactive Advisor
Thoughts From Willis | Are You Ready for the Big Game? How to Avoid Financial Planning Risks and a Nail-Biting Finish

 

 


person1Robert (Bobby) Cope, M.S.

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Robert (Bobby) Cope joined Willis Johnson & Associates as a financial paraplanner in May of 2017. For Bobby, entering the financial planning profession allows him to not only assist the associate wealth managers of the firm in daily operations but more importantly assisting client’s in many other facets of their lives. Bobby graduated Summa Cum Laude from the University of Alabama Honors College in May of 2017.

 

 

He completed a dual degree program that awarded him an M.S. in Human Environmental Sciences, with a concentration in Family Financial Planning and Counseling, as well as a B.S. in Human Environmental Sciences, with a concentration in Consumer Sciences. At Alabama, Bobby was a member of Delta Kappa Epsilon social fraternity, as well as many other groups and honor societies on campus.


 

Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold thro

Financial Fact | What You Need to Know About Medicare BEFORE You Turn 65

Published: August 16, 2018

You are about to celebrate your 65th birthday. You’ve heard from friends and colleagues that you need to sign up for Medicare… but what is Medicare? Who is eligible for Medicare, and what does it cover?

Medicare is federally provided health insurance available to U.S. citizens that are 65 years of age or older. In some cases, Medicare is provided to those with special needs. 

 

There are 4 available parts of Medicare:

 

Hospital Insurance (Part A) – Provides coverage for hospital stays, skilled nursing facilities, hospice care, or home health services.

Medical Insurance (Part B) – Provides coverage for doctor’s services, outpatient care, medical supplies, and preventive services.

Medicare Advantage Plans (Part C) – Part C provides both your Part A and Part B benefits. These are plans offered by private companies that contract with Medicare.  Some private companies offer this type of plan to their retired employees. (See the sections at the end of this article regarding the Shell Medicare Advantage PPO Plan)

Prescription Drug Coverage (Part D) – Adds drug coverage to Medicare plans.

Medicare Enrollment: What Do You Need to Do When You Turn 65?

When do I enroll in Medicare?

Your initial enrollment period begins 3 months before you turn 65 and ends 3 months after that birthday. 

 

Am I required to enroll in Medicare?

You are required to at least sign up for Medicare Part A.  You can sign up for Part B but you will pay a premium for Part B coverage. 

 

Can I enroll in Part A Medicare coverage when I turn 65 and sign up for Part B Medicare coverage at a later date?

You can turn down Part B coverage and sign up for it later but you may have to pay a late enrollment penalty. 

 

Who should turn down Part B Medicare coverage and when?

If you are still working upon turning 65 (or your spouse is still working) and you are covered by group health, you might turn down Part B coverage at that time. 

 

If I choose to postpone enrolling in Part B Medicare, how do I enroll at a later date?

You will be able to sign up for Part B later during a Special Enrollment period.  This gives you the option to sign up for Part B while you are still employed or you can sign up within an 8-month period after your group health coverage ends. 

Medicare Enrollment Costs: What Will Medicare Cost You Each Month?

 

Now that you know when you should sign up, you are probably wondering how much Medicare will cost you per month.

 

How much do Medicare Part A premiums cost?

Part A premiums can range between $0 to a maximum of $422 monthly, depending on your income and the amount of Medicare taxes you have paid in the past. 

 

How much do Medicare Part B premiums cost?

Part B premiums start at $134 monthly and increase based on your adjusted gross income.  A two-year lookback period will be applied to your income to determine your Part B premium. 

 

How much do Medicare Part C and D premiums cost?

Part C and D premiums will vary based on the type of plan you choose to sign up for from a private company.  There are also deductibles and co-pays for the various plans in addition to the monthly premium. 

 

When do I enroll in the Shell Medicare Advantage PPO Plan?

Medicare Advantage plans have specific enrollment periods. You will want to contact the Shell Benefits coordinator to determine when the next enrollment period is and what your premium for this plan will be.

 

Where do I enroll in Medicare? 

You can apply for Medicare online at here or find additional information about your specific situation on Medicare.gov

 

Is there anything I should consider before enrolling in Medicare?

Each person’s situation will be different depending on their coverage needs, income, and retiree benefits offered by their employer. That’s why cookie-cutter advice rarely works for our clients who have above average life goals and unique company benefits. Consult with a trusted advisor or contact a member of the Willis Johnson & Associates team to better understand your Medicare options.

 

 


alaxisAlexis Long, MBA, CFP®

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Alexis Long is a wealth manager at Willis Johnson & Associates. For Alexis, financial planning combines an interest in producing detail-oriented financial plans with a desire to help people obtain their goals, ranging from retiring early, paying for their grandchildren’s educations, buying a second home or leaving a legacy for their children. Understanding what is truly important to a client is key to good financial planning, along with providing solid technical advice.

 

Alexis earned her undergraduate degree in International Business from Texas Tech University and her Finance M.B.A. from the University of St. Thomas.


Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions. 

Financial Fact | What Shell Retirees Need to Know About the NEW Shell Medicare Advantage PPO Plan

Published: August 16, 2018

You are about to celebrate your 65th birthday. You’ve heard from friends and colleagues that you need to sign up for Medicare… but what is Medicare? Who is eligible for Medicare, and what does it cover?

Medicare is federally provided health insurance available to U.S. citizens that are 65 years of age or older. In some cases, Medicare is provided to those with special needs. 

 

There are 4 available parts of Medicare:

 

Hospital Insurance (Part A) – Provides coverage for hospital stays, skilled nursing facilities, hospice care, or home health services.

Medical Insurance (Part B) – Provides coverage for doctor’s services, outpatient care, medical supplies, and preventive services.

Medicare Advantage Plans (Part C) – Part C provides both your Part A and Part B benefits. These are plans offered by private companies that contract with Medicare.  Some private companies offer this type of plan to their retired employees. (See the sections at the end of this article regarding the Shell Medicare Advantage PPO Plan)

Prescription Drug Coverage (Part D) – Adds drug coverage to Medicare plans.

 

Medicare Enrollment: What Do You Need to Do When You Turn 65?

When do I enroll in Medicare?

Your initial enrollment period begins 3 months before you turn 65 and ends 3 months after that birthday. 

 

Am I required to enroll in Medicare?

You are required to at least sign up for Medicare Part A.  You can sign up for Part B but you will pay a premium for Part B coverage. 

 

Can I enroll in Part A Medicare coverage when I turn 65 and sign up for Part B Medicare coverage at a later date?

You can turn down Part B coverage and sign up for it later but you may have to pay a late enrollment penalty. 

 

Who should turn down Part B Medicare coverage and when?

If you are still working upon turning 65 (or your spouse is still working) and you are covered by group health, you might turn down Part B coverage at that time. 

 

If I choose to postpone enrolling in Part B Medicare, how do I enroll at a later date?

You will be able to sign up for Part B later during a Special Enrollment period.  This gives you the option to sign up for Part B while you are still employed or you can sign up within an 8-month period after your group health coverage ends. 

 

Medicare Enrollment Costs: What Will Medicare Cost You Each Month?

Now that you know when you should sign up, you are probably wondering how much Medicare will cost you per month.

 

How much do Medicare Part A premiums cost?

Part A premiums can range between $0 to a maximum of $422 monthly, depending on your income and the amount of Medicare taxes you have paid in the past. 

 

How much do Medicare Part B premiums cost?

Part B premiums start at $134 monthly and increase based on your adjusted gross income.  A two-year lookback period will be applied to your income to determine your Part B premium. 

 

How much do Medicare Part C and D premiums cost?

Part C and D premiums will vary based on the type of plan you choose to sign up for from a private company.  There are also deductibles and co-pays for the various plans in addition to the monthly premium. 

 

What Do Shell Employees Need to Know About the Shell Medicare Advantage PPO Plan?

Shell Medicare Advantage PPO Plan Shell recently began offering their Medicare-eligible employees a new Medicare Advantage PPO Plan through 1) UnitedHealthcare. This plan combines your Part A and Part B coverage into one plan (Part C Plan).

 

Am I eligible to participate in the Shell Medicare Advantage PPO Plan?

You must be enrolled in both Part A and Part B in order to be eligible for participation in the Shell Medicare Advantage PPO plan. A Part C Advantage plan will coordinate payment for medical needs between Part A and B and may offer additional coverage over and above what you receive through Medicare. Note, you cannot have a Medicare Advantage plan in conjunction with a Medigap policy (also known as a Medicare Supplement Plan). 

 

What Benefits Are Included in the Shell Medicare Advantage PPO Plan?

The chart on the right shows some of the benefits available through the Shell Advantage plan.

 

What Do The Shell Medicare Advantage PPO Benefits Mean For Shell Retirees?

1. You receive higher-level coverage with a lower monthly premium contribution

2. You will receive the same benefit level in-network or out-of-network

3. You can continue to see your current health care providers as long as they accept Medicare and the Shell Medicare Advantage PPO plan

 

When do I enroll in the Shell Medicare Advantage PPO Plan?

Medicare Advantage plans have specific enrollment periods. You will want to contact the Shell Benefits coordinator to determine when the next enrollment period is and what your premium for this plan will be.

 

Where do I enroll in Medicare? 

You can apply for Medicare online at here or find additional information about your specific situation on Medicare.gov

 

Is there anything I should consider before enrolling in Medicare?

Each person’s situation will be different depending on their coverage needs, income, and retiree benefits offered by their employer. That’s why cookie-cutter advice rarely works for our clients who have above average life goals and unique company benefits. Consult with a trusted advisor or contact a member of the Willis Johnson & Associates team to better understand your Medicare options.

 

 


alaxis

Alexis Long, MBA, CFP®

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Alexis Long is a wealth manager at Willis Johnson & Associates. For Alexis, financial planning combines an interest in producing detail-oriented financial plans with a desire to help people obtain their goals, ranging from retiring early, paying for their grandchildren’s educations, buying a second home or leaving a legacy for their children. Understanding what is truly important to a client is key to good financial planning, along with providing solid technical advice.

 

Alexis earned her undergraduate degree in International Business from Texas Tech University and her Finance M.B.A. from the University of St. Thomas.

 


Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions. 

Financial Fact | Top 4 U.S. Trade Partners and Trump’s Tariff Talk : What You Need to Know

Published: July 23, 2018

Did you know the United States’ network of major international trade relationships extends significantly beyond its partnership with China?

Given the recent headlines around trade tariffs, retaliatory tariffs, and potential trade wars, it is even more important for Americans to know which countries comprise our network of major trade partners and monitor these relationships.

 

According to a 2017 examination of data compiled by the U.S. Bureau of Economic Analysis, the European Union trading block is the largest source of U.S. exports, followed by Canada, Mexico, and China sequentially.

 

When looking at the dollar value of trade imports and exports, we found Canada and Mexico to be the United States’ two most prominent trading partners. Given their neighboring proximity to the U.S., this comes as no surprise.

 

Current Market Context: U.S. Trade Relations with the European Union, Canada, Mexico, and China

 

In 2017, the United States exported roughly $341 billion of goods and services to Canada, $276 billion of goods and services to Mexico, but only $188 billion in exports to China. Compared to China, Canada and Mexico are significantly more important markets for U.S. exports and these partners should be taken into account when assessing current trade news and market activity.

 

China is considered the bogeyman of U.S. trade, due to the fact that China imports more than $523 billion of goods and services to the U.S., a deficit of over $335 billion dollars in 2017.

 

This extreme trade imbalance is unique to the United States’ trade relationship with China and is not mirrored by U.S. relations with its other major trade partners.

 

Trump’s Tariff Talk and the Tension Around Trade Negotiations

 

During his presidential campaign, President Trump made aggressive trade threats to China but withheld a majority of this bold rhetoric when addressing Canada, Mexico, and the EU. Today, however, this reserve has been cast aside as the President continues to use harsh trade rhetoric when addressing the nation’s European and North American trading partners.

 

The first round of U.S. tariffs imposed $10 to $15 billion worth of tariffs on imported steel and aluminum. In response to the steel and aluminum tariffs imposed by the U.S., Canada introduced $13 billion in Canadian tariffs on American exports. Yes, tensions are high, but industry experts do not believe the tariffs between the U.S. and Canada will dramatically affect the economy of either country as they make up less than 5% of total U.S. exports.

 

As the scope of these tariffs continues to expand, they could potentially trigger a significant disruption in the global supply chain network. Therefore, as negotiations progress, it is crucial to monitor international trade discussions to better anticipate how they will impact the financial markets.

 

If you have any questions or concerns, please contact your advisor or a member of the Willis Johnson & Associates team for more information.

 


Jason Mishaw, Associate Wealth Managers,Jason Mishaw, MSF

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As an associate wealth manager at Willis Johnson & Associates, Jason Mishaw is actively involved in both the Financial Planning role and the Investment Management role. On the financial planning side, he helps to implement customized financial plans for WJA clients. On the Investment Management side, under the supervision of a Senior Wealth Manager, he assesses the financial goals of WJA clients and assists in creating a customized strategy to further those goals. Jason received a Master of Science in Finance at the University of Houston C.T. Bauer College of Business, a B.A. in economics and a B.S. in biochemistry and cell biology from Rice University.

 


Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions.

 

 

Financial Fact | 5 Budgeting and Tax Tips for Buying Your Vacation Home

Published: June 19, 2018

The summer travel season is in full swing and many of our clients are headed to their favorite destinations along the Florida coast, Colorado Rockies, or abroad.  I too just returned from a week-long vacation to St. Augustine, Florida. 

 

There’s something about the old-world charm of Spanish forts, mile-long beaches and slow southern setting that brings us back year after year.  Now, as I sit back at my desk, I can’t help but daydream about someday purchasing my own house a block from the beach just off Highway A1A.   

 

For those with similar aspirations to own your favorite getaway, I thought it would be timely to share five budgeting and tax tips to keep in mind before making the leap to ownership.

 

1)   Property Tax Deduction Limits for 2018 May Reduce Tax Savings on Your Second Home

Recent tax law changes have impacted the deductibility of property taxes. Previously, clients could deduct the full value of property taxes on their primary residence and vacation home(s) when itemizing their deductions.

 

Today, however, state, local, and property taxes are limited to a combined $10,000 of deductible value, which means you may not be saving as much as you think on taxes when buying your next home.

 

2)   Review the Mortgage Interest Deduction Limits for 2018 Before Buying Your Second Home

Tax law has also changed the math on mortgage interest deductibility.  Going forward, this limits mortgage interest deductions to the first $750,000 debt used to purchase a first or second residence.

 

Clients with an existing mortgage, or those looking for financing an excess of $750,000, may be unable to deduct the full value of their annual interest payments.

 

For example, a client who finances their vacation home with a $1 million mortgage at 5% interest could only deduct ¾ ($37,500) of the annual interest paid instead of the full $50,000.

 

3)   Profit from Selling Your Vacation Home is NOT Exempt from Capital Gains Tax

What if you grow tired of the maintenance and hassle of owning a second home and decide to sell? You should note that the sale of a second home is not afforded the same tax exemption available when selling your primary home.

 

For married couples filing jointly, $500,000 of gain (profit) on the sale of your primary residence is exempt from capital gains tax. However, any gains resulting from the sale of your vacation home do not qualify for the same exemption.

4)   Capital Gains from Rental Depreciation Are Subject to Marginal Rates When Sold

The tax rules that apply to rental properties are very different from those that apply to one’s personal residence. Many second homeowners choose to rent their vacation home to help pay the bills or supplement their existing income. The owner of a rental property can deduct depreciation on the home when filing their annual taxes, thus lowering the income tax payments on the rental income they receive.

 

However, it’s important to note that depreciation also lowers the adjusted cost basis of the property when the owner decides to sell, thus increasing their capital gain (and the taxes they pay) as a result. If you’re considering a purchasing a second home to serve as a rental property, you should first understand that the gains attributable to depreciation from renting your vacation home will be taxed at your marginal tax rate when sold. 

 

For example, if you purchased your vacation home for $1.2 million and the depreciation of your property amounted to $325,000, the adjusted cost basis of your home would be $875,000.

   
Purchase price $1,200,000
Depreciation $325,000
Adjusted Cost Basis $875,000
Sale Price $1,500,000


If you sold your secondary residence for $1.5 million, the recapture gain (taxed at marginal income tax rates) would be $325,000 and the realized gain (taxed at capital gains rates) will be $300,000.

 

5)   Second Home Repairs May Turn Your Vacation Home into a Nightmare Expense

While taxes are an important part of deciding if a second home is right for you, it’s even more important to consider the additional costs and time needed to maintain the home while you’re away.  The dream of owning a turn-key property can quickly become a nightmare if you’re constantly funding repairs and spending well-deserved vacation time keeping up with your new home.  To set expectations ahead of time, we recommend budgeting ten percent of the property value every year for repairs and maintenance.

 

How Do You Know if Purchasing a Second Home is Right for You?

Like all other aspects of financial planning, planning to buy a second home requires that you consider all aspects of your long-term financial plan across every stage of your retirement journey. However, this isn’t always easy to do considering the complexity of the recent tax law changes paired with the variability of financial planning from one person to the next.

 

Always remember that a one size fits all advice is likely to put you in an uncomfortable place later down the road, which is why you should always get a second opinion from a trusted advisor before making such a significant financial commitment.

 

If you’re considering the purchase of a second home but are unsure how it may affect your long-term financial plan, schedule a conversation with a Willis Johnson & Associates financial professional to learn more about what you should consider.

 


SOL_3311 (2)Tyler Baker, CFP®

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Tyler Baker is an associate wealth manager at Willis Johnson & Associates. Tyler enjoys guiding individuals and their families through the financial planning process, and he specializes in uncovering new opportunities that work to minimize client expenses while increasing their savings. Tyler graduated from the University of Georgia with two degrees, a Bachelor of Science in financial planning, and another in housing management and policy. 

 


Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions. 

Financial Fact | Non-Qualified Retirement Plan Tax Risks the Corporate Professional Should Avoid

Published: May 12, 2017

Republished: May 28, 2018

Without proper financial planning, you may be paying more taxes on your Non-Qualified Retirement Plan than necessary.

If you have a retirement savings plan with the words ‘Excess Compensation’, ‘Excess Benefit’, ‘Benefits Restoration’, or something similar in the title, you may have a non-qualified retirement plan.

 

What is a Non-Qualified Retirement Plan?

Employers establish non-qualified retirement plans to circumvent the IRC Section 415 limitations so that their high-income earning employees can save more for retirement. The IRS rule limits both you and your employer’s contribution to your 401(k) based on the first $275,000 of income for 2018. This means that you and your employer can only make contributions to your 401(k) based on the first $275,000 that you earn. When your income exceeds the $275,000 limit, neither you nor your employer can contribute any more money to your 401(k).
Large corporations often want to continue their matching benefit for employees who have income that exceeds this limitation. They do so by establishing a Non-Qualified Retirement plan and depositing the excess matching contributions there. These funds can be invested and grow until the employee’s retirement or departure from the company.

 

Non-Qualified Plan Tax Risks: Your Non-Qualified Retirement Plan Assets May be Forced Out as Taxable Income in the Year You Retire

If the employee makes no elections, these plans are often paid out as a lump sum very soon after retirement. Receiving all of the proceeds from the non-qualified plan in the year of retirement can cause a substantial portion of this payment be taxed at the highest marginal income tax rate. Without proper planning, you may be paying more taxes than necessary.
For example, if a client receives a $400,000 lump sum Non-Qualified payout instead of annuitizing it over a period of 10 years, they will be in the 35% Marginal Income Tax Bracket, assuming $100k of other income, either a pension, investments, etc. When annuitizing, they will be in the 22% marginal Income Tax Bracket.

 

 

What Should You Do When Managing Your Non-Qualified Retirement Plan?

 

Different companies have different rules regarding payout elections for their Non-Qualified Plans. For example, our Shell clients were required to have made their elections prior to 2009 in order to annuitize the payout of their Benefit Restoration Plan. We work with those of our clients that did not make their elections to time their retirement decision so we can strategically manage and disperse their various payouts and minimize their overall tax burden.

 

We find that other companies, such as BP Global, allow their employees to make the election for a payout of their Non-Qualified Retirement benefits at the beginning of each year. We proactively assess this payout decision with these clients to ensure a distribution plan to manage cash flow needs and minimize their tax impact.
With proper planning, these plans can be a very useful tool to help provide income in the first few years after retirement. If you have one of these plans, we recommend you speak with a professional advisor, like Willis Johnson & Associates, who specializes in helping corporate executives and professionals minimize taxes and maximize their company benefits. 

 

 


Jason Mishaw, Associate Wealth Managers,Jason Mishaw, MSF

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As an associate wealth manager at Willis Johnson & Associates, Jason Mishaw is actively involved in both the Financial Planning role and the Investment Management role. On the financial planning side, he helps to implement customized financial plans for WJA clients. On the Investment Management side, under the supervision of a Senior Wealth Manager, he assesses the financial goals of WJA clients and assists in creating a customized strategy to further those goals. Jason received a Master of Science in Finance at the University of Houston C.T. Bauer College of Business, a B.A. in economics and a B.S. in biochemistry and cell biology from Rice University.

 


 

 

Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions.

Financial Fact | Did You Know You Can Now Use a 529 Savings Plan for Private School Education Costs (K-12)?

Published: May 15, 2018

If you have (or want) children, you may already know about 529 savings plans, but did you know 529 qualified expenses now include private school education costs?

 

As of January 2018, private school tuition now falls under the 529 plan’s umbrella of qualified education expenses. Savings from a 529 account can be tapped to fund education-related expenses as early as a child’s kindergarten year, and continue to be used throughout the entirety of their primary, secondary, high school, college, and graduate school years.  
 

While our firm remains a heavy proponent of using 529 plans to pay for college tuition, we have expanded our focus to include using a 529 savings plan to assist with private school education costs. In this article, we will walk through the advantages of using a 529 plan to save for a child’s private school K-12 education, as well as the limits, restrictions, and discrepancies you should consider when determining your long-term savings strategy.

 

What to Consider When Using a 529 Plan for Private School Education (K-12) Expenses

A 529 savings plan works much like a Roth IRA and the new rules under the 2018 Tax Cuts & Jobs Act allow for greater flexibility when using a 529 savings plan. However, the changes may impact the way parents and grandparents incorporate the savings vehicle into their long-term financial plan. Now that the time between a 529’s initial funding and the date the assets are available for use has been shortened, families may need to reconsider how their current investment strategy will support their education savings goals.

 

Private school tuition has skyrocketed and is only predicted to increase over the next eighteen years. Today, the total cost of private school education (K-12) for a child entering kindergarten is approximately $182,868.

 

If a child is born today (2018), the total cost for their private school education will be approximately $239,001 once they are old enough to attend kindergarten. This is assuming an education inflation rate of 5.5% and that the child will enter kindergarten at age five.

 

That’s a $56,133 increase after only five years!

 

We recommend estimating the cost of sending your child/grandchild to a private institution for their primary, secondary, and high school years. Savingforcollege.com has a helpful online 529 Savings Calculator for Private K-12 Tuition you can use to estimate the costs associated with your unique situation, as well as how much you need to save in a 529 to be able to cover these costs. Please note that these are merely estimates and you should talk with your financial advisor to ensure your savings strategy aligns with your long-term financial plan before you take action.

 

Whether a 529 is used to fund college or private school tuition, the tax-free growth remains its most notable advantage. With that in mind, a number of families with young children may not have the means to simultaneously max out their retirement plan, cover living expenses, AND contribute to a child’s 529 savings account. This is where grandparents may be able to ease the future burden of education costs for their children and grandchildren.

 

The Power of Gifting for Grandparents: Understanding the 5-Year Election Limits of a 529 Plan for Private School Education (K-12) Expenses

The flexibility inherent to a 529 savings plan provides a valuable opportunity for grandparents to supplement their children’s future cash flow by gifting education savings to a 529 account for their grandchildren, and doing so while the grandchildren are still very young. In addition, the account can be transferred between relatives so that if a 529 is overfunded, the family’s investment does not go to waste.

 

Consider that you are the grandparent of a newborn child today (2018). You and your spouse want to help fund your grandchild’s private school education by contributing the maximum amount of funds possible to a 529 without being subject to gift tax on the investment. The 529 Plan’s 5-year election rule allows you to do just that! Couples can contribute up to $150,000 ($75,000 for an individual) per child to a 529 savings account and still qualify for the annual gift tax exclusion on the contributed funds.

 

For example, if you gift the maximum tax-free contribution of $150K ($75K for individuals) to your grandchild’s 529 today in 2018, the investment will total $266,939 by the time they’re old enough to attend kindergarten. This is assuming the child starts kindergarten at age five and the 529 contribution compounds at a rate of 7%.  

 

That’s $116,939 of growth in only five years!

 

By gifting to the 529 plan early on, you enable the compounded tax-free growth to be in full effect by the time your grandchild starts his/her private school education.

 

The tax-deductible contributions, tax-deferred compounding and flexibility to change the account beneficiary to another family member also position 529 accounts as a strategic estate-tax planning tool for grandparents. They can save for the future of their grandchild and shelter a large amount of assets from estate taxes, all while retaining control of the funds.

 

Limits to Using a 529 Plan for Private School Education (K-12) Expenses

 

One noteworthy difference between paying for private school and paying for college using a 529 is that while there is no cap on 529 withdrawals for qualified college expenses, a $10,000 cap exists for annual tax-free withdrawals from a 529 plan when funding private school expenses. You can still withdraw more than the $10,000 cap from a 529 account for private school costs, but you will pay taxes on any amount exceeding the limit for that tax year.

 

Some states have yet to conform to federal tax code. These states still allow families to fund pre-college private school education expenses, but the withdrawal may not share the same state-tax benefits as the over 30 U.S. states already offering a tax credit or deduction for contributing to a 529 plan. Review full list of states that consider k-12 tuition to be a qualified education expense under the 529 rules.

 

It’s important to note that parents and/or grandparents should generally avoid reducing their annual retirement plan contributions in order to contribute to a 529 savings plan. In most cases, we recommended maxing out your retirement savings accounts before contributing to a 529 plan. Why? Because you can still withdraw funds for education related expenses from after-tax accounts such as an IRA or Roth IRA penalty-free, even if you’re not 59 ½.  In addition, a 529 plan should align with your long-term financial strategy and you should avoid pulling cash from these accounts just because you can.

 

Nevertheless, if you have the cash flow to allow it, taking advantage of the new 529 rules can be a valuable way to support a child’s educational development from day one.

 

You should always approach saving with a concrete strategy, which is why you should speak with a trusted financial advisor to determine how a 529 savings plan can help maximize your contribution to the future of your children and/or grandchildren.

 

To discuss 529 plans further, feel free to contact us to schedule a meeting, or to speak to one of our financial professionals.

 


person1Robert (Bobby) Cope, M.S.

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Robert (Bobby) Cope joined Willis Johnson & Associates as a financial paraplanner in May of 2017. For Bobby, entering the financial planning profession allows him to not only assist the associate wealth managers of the firm in daily operations but more importantly assisting client’s in many other facets of their lives. Bobby graduated Summa Cum Laude from the University of Alabama Honors College in May of 2017.

 

He completed a dual degree program that awarded him an M.S. in Human Environmental Sciences, with a concentration in Family Financial Planning and Counseling, as well as a B.S. in Human Environmental Sciences, with a concentration in Consumer Sciences. At Alabama, Bobby was a member of Delta Kappa Epsilon social fraternity, as well as many other groups and honor societies on campus.

 
Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions. 

 

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