Resources

Why Do You Need a Will?

It may not sound enticing, but creating a will puts power in your hands. Provided by Lake Hills Wealth Management   According to the global analytics firm Gallup, only about 44% of Americans have created a will. This finding may not surprise you. After all, no one wants to be reminded of their mortality or dwell on what might happen upon their death, so writing a last will and testament is seldom prioritized on the to-do list of a Millennial or Gen Xer. What may surprise you, though, is the statistic cited by personal finance website The Balance: around 35% of Americans aged 65 and older lack wills.1,2 A will is an instrument of power. By creating one, you gain control over the distribution of your assets. If you die without one, the state decides what becomes of your property, with no regard to your priorities. A will is a legal document by which an individual or a couple (known as “testator”) identifies their wishes regarding the distribution of their assets after death. A will can typically be broken down into four parts: *Executors: Most wills begin by naming an executor. Executors are responsible for carrying out the wishes outlined

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A Retirement Fact Sheet

Some specifics about the “second act.”  Provided by Lake Hills Wealth Management Does your vision of retirement align with the facts? Here are some noteworthy financial and lifestyle facts about life after 50 that might surprise you. Up to 85% of a retiree’s Social Security income can be taxed. Some retirees are taken aback when they discover this. In addition to the Internal Revenue Service, 13 states levy taxes on some or all Social Security retirement benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia. (It is worth mentioning that the I.R.S. offers free tax advice to people 60 and older through its Tax Counseling for the Elderly program.)1 Retirees get a slightly larger standard deduction on their federal taxes. Actually, this is true for all taxpayers aged 65 and older, whether they are retired or not. Right now, the standard deduction for an individual taxpayer in this age bracket is $13,600, compared to $12,000 for those 64 or younger.2 Retirees can still use IRAs to save for retirement. There is no age limit for contributing to a Roth IRA, just an inflation-adjusted income limit. So, a retiree can keep

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Section 199A Business Tax Deductions

A deduction intended for pass-through business owners Provided by Lake Hills Wealth Management Many households, businesses, and other organizations are arranging their documents for the coming tax season. The changes to the tax code have inspired a great deal of discussion, confusion, and clarification. Something you might want to know, as a business owner. There’s a tax cut that many may not be aware of, but it’s new for 2018 and worth some consideration. When the Tax Cuts and Jobs Act (TCJA) was signed into law, late 2017, the 199A deduction came into being. This section allows a limited tax deduction of up to 20% of qualified business income for owners of pass-through businesses – S corporations, partnerships, and limited liability companies (LLC). The 199A deduction does not apply to a regular corporation, however.1,2 Remember, the tax law changes listed here are for informational purposes only and are not a replacement for real-life advice. Make sure to consult your tax, legal, or accounting professional before modifying your tax strategy. Like many other deductions, there are phase out ranges in place. For those filing jointly, the phase-out range is $315,000 to $415,000; for single filers, $157,500 to $207,500. The same ranges

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