Clients often think of calling their advisor regarding their investments. However, there are several other reasons and times you should contact them. This week, we’ll explore the reasons and milestone ages that should prompt you to reach out if your advisor doesn’t already proactively do this for you.
1. Experiencing any significant life events
Anytime you have a birth, death, divorce, remarriage, or a major illness, you should discuss what the implications will be on beneficiary forms, taxes, and planning ideas.
2. Preparing for Social Security or Medicare
When to collect SS benefits can be a far bigger decision than you might expect. The difference is that payouts at different ages can have a dramatic effect on your family’s lifetime benefits. For Medicare, there is a two-year lookback for the determination of your Part B premium (IRMAA). Planning now can potentially reduce those premiums.
3. Receiving an inheritance of a large gift, changing your will, or establishing a trust
All of these can have a major impact on your overall plan.
4. Changing jobs or moving to a new state
Changing jobs requires looking at your rollover options and beneficiary updates. Moving can change your tax liabilities, such as moving to a state with higher or lower (even no) state tax rates.
Age milestones that should prompt a call to your advisor include:
1. Age 21: Minors’ UTMA/UGMA custodial accounts are retitled into the child’s name. It is also the year that an eligible designated beneficiary of an IRA can stretch an inherited IRA, and they must now follow the 10-year rule if they inherited after the SECURE Act was adopted.
2. Age 50: Contact an advisor for catch-up contributions and 10% penalty exceptions for public safety employees in retirement plans.
3. Age 55: There is a 10% penalty exception for retirement plans.
4. Age 59 ½: This is the age for 10% penalty-free withdrawals.
5. Age 62: This is the last year to do a Roth IRA conversion that won’t affect your Medicare Part B premium at age 65 (IRMAA).
6. Age 65: This milestone qualifies you for Medicare.
7. Age 70 ½: You can begin to make Qualified Charitable Distributions from your IRA.
8. Age 73: You must begin taking Required Minimum Distributions (RMDs) if you were born between 1951 and 1959.
9. Age 75: You must begin taking RMDs if you were born in 1960 or later.
As you can see, this list is extensive and involves many conversations beyond just checking in on your investments. By following this timeline, you can potentially plan for each milestone, possibly reduce future taxes and better manage your overall financial plan.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Reich Asset Management, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. To view form CRS visit https://bit.ly/KF-Disclosures.
Eric is President and founder of Reich Asset Management, LLC. He relies on his 25 years of experience to help clients have an enjoyable retirement. He is a Certified Financial Planner™ and Certified Investment Management AnalystSM (CIMA®) and has earned his Chartered Life Underwriter® (CLU®) and Chartered Financial Consultant® (ChFC®) designations.



