RMR Wealth Builders, Inc.

🏠 As the spring housing market is now in full swing, U.S. homebuyers face a double challenge: rising home prices and high mortgage rates. According to Mansion Global, the median sale price rose 6.1% year-over-year through February 2024, the steepest increase since October 2022. Mortgage rates, on an upward trend since January 2022, remain high, per Freddie Mac. Redfin's 2023 report highlights the following trends: 🔹 Cities like Newark, Miami, Anaheim, and Warren have seen significant price increases. 🔹 Pending home sales are down 7.3% YoY, suggesting high costs are deterring buyers. The spring season traditionally brings more activity to the market, but the outlook is mixed. Stay updated on the latest real estate trends! 💡

💼 Understanding these concepts is essential for managing investments, assessing risk, and achieving financial goals. Use your knowledge of these terms to make informed decisions and navigate the complexities of personal finance and investing. SAVE this post for future reference!

Estate planning is a complex element of any financial plan. It requires an in-depth knowledge of trusts and the tax consequences of various approaches. And it’s an ever-evolving process that needs to be reviewed with some degree of frequency. We’ve played a lead role for many of our clients, working with their estate attorneys and CPAs, to build a plan that meets their goals for their lifetime and beyond. Through this work, we’ve seen quite a few common missteps that we thought we’d share: 10 common estate planning missteps: 1) Not having an estate plan is the most common estate planning mistake. Planning for what will occur after you’re gone is one of the most important things you can do to ensure your affairs are in order and your loved ones are taken care of when the time comes. 2) Not naming a Power of Attorney and Healthcare Proxy is problematic if you become incapacitated. You can choose the same person for both or designate one for financial decisions and the other for medical. These roles typically dissolve upon your passing. 3) Not updating your will for changes that can take place within a family or business structure, such as births, deaths, divorces, and new property acquisitions could mean you may not be leaving assets to those you intend. 4) Not planning for unexpected or long-term disability can often have devastating consequences on your personal and financial affairs. You need to determine ahead of time who will make financial, family, and healthcare decisions on your behalf. 5) Putting your child's name on the house may seem like a good idea as you get older, but by doing so, you are giving your child a hefty-sized taxable gift. There are better ways to accomplish what you are looking to do. 6) Choosing a spouse or child to handle your estate may not be the best choice. Someone not as personally invested may be better suited to objectively oversee the extensive duties and demands required of an executor, trustee, or guardian. 7) Not having a contingency plan can be an issue if the person named to serve as a power of attorney, guardian, or executor is unable or unwilling to serve, a guardianship proceeding would have the courts decide who’s in charge. 8) Not updating planning after major life events, such as moving to a new state, getting separated, divorced, or remarried, as well as the birth, death, or marriage of a beneficiary can all have significant impacts on ensuring your wishes are carried out. 9) Not making final arrangements could put an added burden on your loved ones. Planning in advance about your funeral or burial preferences can be a blessing for those you leave behind. You should also make your end-of-life care wishes known. 10) Not securing your estate plan documents could waste all your efforts if your heirs cannot find them. Putting the plan in a safety deposit box is not the best option because it can become complicated when your loved ones try to gain access after you’re gone.

The Fed has announced a pivot from a tight monetary policy to a more accommodating approach. Here's what you need to know: ▪️ Fed Chair Jerome Powell said in December that interest rates could be cut as much as three times this year, but he didn’t indicate when the cuts may start. ▪️ In December, he said no cuts until inflation is still heading toward the Fed’s 2% target. ▪️ During Congressional testimony in March, Powell reinforced his belief that the Fed would cut rates in 2024 but again wouldn’t commit to a time frame. ▪️ He also stressed that he wants to see more evidence that inflation is trending back to the Fed’s 2% target. The Fed Chair has indicated that the next move for rates will be lower. So, a pivot has taken place, but the follow-through with lower rates has yet to begin.

💼 A few years ago, there were ads from financial services companies asking, "What's your number?" #️⃣ The "number" represents the amount of money you need to retire comfortably. While this question may have been an effective way to spark conversations about retirement, we believe that it doesn't paint the complete picture. One of the most important parts of orchestrating your retirement income strategy is determining which assets to take and in which order. There is no one formula; every situation is unique, but there are some general guidelines that can help when creating a withdrawal strategy. For example, one approach to consider is withdrawing money from taxable accounts first, then tax-deferred, then tax-exempt. By using taxable money first, you can avoid paying taxes as long as possible with tax-deferred investments—and your tax-exempt accounts remain tax-exempt for a longer period. Ultimately, your decision will be influenced by a wide range of other considerations, including withdrawal fees, surrender charges, and other costs that may be associated with each specific account. However, when possible, consider using the power of tax deferral and tax exemption to your advantage. There's a lot to consider, but you don't need to figure this out on your own. With this post, we are pointing out some high-level concepts. It's not a replacement for real-life advice. Your tax, legal, and accounting professionals may also have some additional insights into the tax implications of certain withdrawal decisions. If you would like to review your current plans to make sure you’re on track, please send us a message. 🤝💼 

Mark your calendars for our insightful webinar on Estate Planning Essentials! Our knowledgeable panel will delve into the intricate world of wills, trusts, powers of attorney, and healthcare directives, providing actionable insights and strategies to help you secure your legacy and safeguard your loved ones' future. Don't miss out on this invaluable opportunity! https://lnkd.in/eqD3tvDJ

Unlock the essentials of estate planning with our upcoming webinar! Understand the fundamentals of wills, trusts, and more alongside our knowledgeable panel. Thursday, May 2nd, 2024 at 11:00 am EST Ready to secure your legacy? Reserve your spot now: https://lnkd.in/eqD3tvDJ

Discover the keys to effective estate planning in our upcoming webinar! Whether you're starting from scratch or refining your existing strategy, we've got you covered. Don't miss this opportunity to secure your legacy and protect your loved ones' future. Reserve your spot today! https://lnkd.in/eqD3tvDJ

Looking to navigate the complex world of taxes more effectively? Here are some important tax concepts to understand. 🔹 Understand your tax bracket Tax planning starts with understanding your tax bracket. The U.S. has a progressive tax system with seven federal income tax brackets ranging from 10% to 37%. Your taxable income determines your bracket, and understanding it helps in planning effectively. 🔹 Tax Deductions vs. Tax Credits Know the difference between tax deductions and tax credits. Deductions reduce your taxable income, while tax credits are a dollar-for-dollar reduction of the money you owe. Understanding these can help in creating effective tax strategies to lower your tax liability. 🔹 Standard Deduction vs. Itemized Deduction Deciding between itemizing and taking the standard deduction is crucial for tax planning as it significantly impacts your tax liability. The standard deduction, which is set by Congress and adjusted annually, offers a flat-dollar deduction simplifying tax preparation. Alternatively, itemizing entails listing individual deductions, typically utilized if your deductions exceed the standard deduction. Generally, taxpayers whose total itemized deductions are less than the standard deduction (based on their filing status) will benefit from taking the standard deduction. 🔹 Key Tax Deductions and Credits Be aware of popular tax deductions and credits available to taxpayers. From the child tax credit to mortgage interest deductions, understanding these can help in maximizing your tax savings and reducing your overall tax liability. If you use the services of a tax professional, be sure to let that person know of any deductions or credits that might fit your situation. 🔹 Adjust Your W-4 Withholding Tweak your W-4 withholding to align with your tax planning goals. Adjusting your withholding can help prevent a large tax bill at the end of the year or maximize your take-home pay throughout the year. Stay proactive in managing your tax obligations. Stay informed and proactive in managing your taxes to optimize your financial situation. Consult with a tax professional to tailor these strategies to your specific needs and goals.

Ready to take control of your estate plan? Join us for an educational webinar where we'll cover the essentials of estate planning - from wills to healthcare directives. Gain valuable insights and actionable steps to safeguard your family's future. Register now through the link: https://lnkd.in/eqD3tvDJ