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The New Three-Legged Stool: A Tax Efficient Approach to Retirement Planning

The New Three-Legged Stool: A Tax Efficient Approach to Retirement Planning

Rick Rodgers

ISBN: 978-1-592-80363-7

Jul 2009

232 pages

Select type: Hardcover


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Most people dream of retirement as a relaxing, worry-free time in their lives. What many do not realize is that the IRS is also looking forward to the day you retire. Our complicated tax system can mean the government is entitled to a significant amount of your retirement assets-unless you protect them properly.

Now, Rick Rodgers, founder of one of the country's top wealth managers, helps you retain as much of your hard-earned retirement assets as possible. His unique Three-Legged Stool approach to financial security makes it both easy to understand how to achieve this retirement security and difficult to ""lose balance""-that is, to get off-track once you've established your plan.

Rodgers will show you how to balance between the three ""legs,"" or components, you will need to create the most tax-effective financial structure.

  • Leg One, Tax-Deferred Savings Strategies
  • Leg Two, After-Tax Savings Strategies
  • Leg Three, Tax-Free Savings Strategies

Plus, a closer look at

  • the all-important Retirement Distribution (R/D) Factor
  • Social Security
  • Estate planning

With real-life case studies, tips, and recommendations from Rodgers' own experiences as a Certified Financial Planner and Certified Retirement Counselor, this guide will help you establish a plan to build the retirement you and your family have always dreamed of-and deserve.

Introduction: The Un-Funniest Story Ever Told vii

Why Would the IRS Steal Your Money? xiii

Who Am I to Give You Advice? xv

The Three-Legged Stool™ Approach to Financial Security xvi

Chapter One: Leg One: Tax-Deferred Savings Strategies 1

The Main Tax-Deferred Accounts: A Refresher Course 1

Prevent the IRS From Touching Tax-Deferred Distributions 11

NUAs Keep the IRS Away From Tax-Deferred Stock Distributions 33

Chapter Two: Leg Two: After-Tax Savings Strategies 39

Transfer Highly Taxed Assets into Tax-Deferred Accounts 39

Begin to Build Your Investment Plan Around Asset Allocation 44

Five Steps to Reducing the Wrong Kind of Investment Risk 50

How to Invest in a Tax-Efficient Way 65

Implement a Zero Tax Bracket Approach 72

Chapter Three: Leg Three: Tax-Free Savings Strategies 79

Understanding Roth Accounts 79

Roth IRA Conversions: Better than Any Tax Break 85

Chapter Four: Distributions: Strike an Ideal Balance Among All of Your Accounts 93

The Retirement Distribution (R/D) Factor™ 93

How and When to Take Retirement Savings Distributions 97

Tips for Taking Early Retirement 114

Get Guidance From a Good Financial Advisor 126

Chapter Five: Understanding Social Security 137

Social Security: A History 137

How Your Benefits are Calcluated 140

When to Begin Taking Benefits 147

The Tax on Your Benefits—and How to Reduce It 150

Social Security Reform 157

Chapter Six: Keep the IRS Out of Your Estate 163

Five Reasons to Reexamine Your Estate Plan 163

Estate Tax Overview 165

Gift ing Strategies for Avoiding Estate Taxes 167

Estate Planning with a Roth IRA 177

Beneficiaries: Key to Any Solid Estate Plan 181

Appendix: How to Write a Personal Financial Plan 189

Part One: Establish Clear Advisor-Client Communication 190

Part Two: Create a Detailed Investment Plan 192

Glossary 197

About Rick Rodgers 201