6 Tips to Making the Most of Your Inheritance

Recently, a friend came to me and asked what she should do with her inheritance. She received a very large sum and was feeling overwhelmed.  Having recently lost her father, she was now grieving for the loss of both of her parents. She vacillated between wanting to spend some of the money and then feelings of guilt for having received so much money to begin with.  

Online Scam Awareness & How to Protect Yourself

My grandfather fell victim to a “boiler room” confidence scam.  The “stock-broker” called him up, pitched him a stock, which he bought, a few months later, after the stock was worthless, he sent my grandpa some paperwork and said, fill out this paperwork and you’ll get your money back.  Sure enough, grandpa filled out the paperwork, and a few weeks later a check arrived for the full amount of the investment he lost.  The man who handled this transaction garnered immediate trust from my grandpa.  A few weeks later, he called and said, I can’t work for this disreputable firm, I’m going out on my own. He then offered to “let” my grandpa invest in his newly formed brokerage firm, and my grandpa didn’t hesitate.  At this point, he completely trusted this man and invested a significant amount of money.   

Establishing an “Adventure Fund”

The importance of having money set aside is undeniable.  In this article, I am not talking about a savings account per se, but instead, and emergency, or better yet, an "Adventure Fund."  You can easily combine this adventure fund with your regular saving account, or keep it separate, depending on which method works for you and your family.

72 is the New Age for Required Minimum Distributions

As we head into 2022, it's crucial to know the new rules for required minimum distributions. If you're unsure of what RMDs entail, we'll go into greater detail in this article.  To start, let's specify what a required minimum distribution is for those that may not be familiar with the term. An RMD refers to the amount of money a person has to withdraw annually from their tax-deferred retirement account, and RMD's apply to those who are turning 72 this year or older.

Celebrating 10 years at TruNorth Wealth!

We're incredibly excited to be celebrating 10 years of business here at TruNorth Wealth Management! I’d like to say Thank You to everyone we’ve engaged with over these past 10 years. Becoming a Certified Financial Planning Professional has been my dream since I was 12 years old and I’m so proud to have founded TruNorth Wealth Management and been a part of all of your lives.

New Increases to IRA & 401(k) Contribution Limits in 2022

For 2022 you are able to increase your IRA contribution to $6,000 per year and if you’re over 50, then the amount is increased to $7,000 per year.  For 401(k) savings plans, the amount is raised to $20,500 per year and if you’re over 50, it’s been raised to $27,000 per year.  This small increase may not seem like a lot, but it really adds up over time.

Gifting Options for 2022 - A Guide

Though the terms and overall process can seem overwhelming, gifting remains a fantastic opportunity to assist your loved ones financially. As we close out one year and welcome another, the desire to give that comes along with the Christmas season raises questions regarding gifting for many families and individuals.

The bottom line? Gifting is a fantastic option for many people. Before you jump into it, you'll want to ensure that you completely understand your reasons for gifting, that it fully aligns with your personal values and your gifting limits, whether transferring wealth from one generation to the next or helping out financially.

Developing a strategy can feel like a lot when you've decided to gift, especially concerning gifting limits, how much, and when to give. Gifting, when done correctly, can be a fantastic way to prepare your loved ones to maintain expenses and finances in the future.

Financial Planning for Empty Nesters

Congratulations are in order! 

You planned, saved money for education expenses, and now your child is off to college. But as you settle into your “empty nest,” you might be wondering, now what?  It’s time to figure out how to adapt to your child’s new independence while keeping your family on a steady course financially.

Here, we’ll focus on some common financial planning issues encountered by empty nesters (or those soon to be!).  From finding new ways to save to considering powers of attorney, learn how to navigate this exciting transition while planning for the next phase of life.


Important Planning Strategies for IRA Beneficiaries

Watch out for taxes when withdrawing from an IRA you inherited – important planning strategies for IRA Beneficiaries.

When you inherit an IRA, you are responsible for paying the income taxes on the amount of money you withdraw from the IRA.  The amount of money you withdraw will be added to your ordinary income and taxed at your highest marginal tax rate.  Please be careful before cashing in a $300,000 Inherited IRA to make a large purchase – your taxes could easily be over $100,000.