If you are like most people, you probably wouldn’t feel comfortable performing surgery to remove your spouse’s appendix. You probably would not fix the brakes on the family car. You probably would not risk tutoring your child to prepare for the SATs.
So why do people think they can create their own financial plan to make their money last the rest of their lives?
As an independent professional, it’s troubling to see consumers sold on believing they can strategically plan their own tax-smart strategy for building wealth. Financial and tax planning are not so simple.
Tax simplification, once a legislative priority, is a long-lost goal of lawmakers. Meanwhile, investing is harder. Interest rates are lower than ever in U.S. history and the pace of change has accelerated because of the internet. The last time inflation was this bad, eight-track players were in most cars, 40 years ago.
Navigating it all requires a strategic perspective on tax and personal financial planning news, uncommon knowledge.
For example, the IRS published new rules on January 10, 2022 in Notice 2022-6, making it easier to retire early, if you own a large IRA, 401(k) or other federally qualified account (FQA). It is an urgent and important strategic change in financial planning for pre-retirees in 2022! However, the topic has received no coverage in the financial press, as of this posting. A Google search for news about “IRC 72(t)” and “substantially equal periodic payments” returned no results about the new IRS rules. Zilch.
And, yet, if your IRA or 401(k) account holds more than $500,000 and you want to join The Great Resignation, this could be a life-changing IRS edict! But you need to be a financial professional to know about the new rules and how they affect your personal situation. Meanwhile, as if personal financial and tax planning are simple to implement, financial service giants are selling consumers on managing their money on their own and letting them sink or swim.
Financial Services for Real People
Founded for the benefit of clients, Prism Capital Management is an independent Seattle and Skagit-based firm with a deep commitment to providing guidance that is free of conflicts of interest, based solely on the sum of our experience and expertise. We are committed to putting client interests first and to stewarding both wealth and wellbeing for those we serve. We have a singular measure of success: the results we get for our clients.
As an Investment Advisor, we have a fiduciary duty to act in YOUR best interest. From planning to investment management to advice on buying a car, we are your financial life partners.