At Vesta CPA, we understand that financial clarity starts with answers you can trust. Our FAQ page brings together the most common questions our clients ask about tax planning, business advisory services, QuickBooks setup, retirement readiness, and upcoming tax law changes. Whether you’re a business owner preparing for growth or an individual focused on long-term financial security, our team of CPAs and advisors is here to guide you through each step. Explore the sections below to find insights on federal and Wisconsin tax payments, payroll and tip tax rules, business valuations, and financial strategies designed for Wisconsin professionals and entrepreneurs.
Our goal is to simplify complex tax and business topics so you can make confident, informed decisions all year long.
Still have questions? Our advisors are here to help with tax planning, business strategy, and retirement guidance. Contact Vesta CPA today.
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A Big Promise – With Real Limits
On July 4, 2025, President Trump signed the expansive One Big Beautiful Bill Act into law. Among its sweeping provisions is a high-profile commitment: the promise of “no tax on overtime.” But what does this new deduction truly mean?
Contrary to what the name suggests, this provision does not fully exempt overtime pay from federal taxes. Instead, it allows a tax deduction—above-the-line—for a portion of overtime wages, reducing taxable income rather than eliminating the tax entirely.
What’s Deductible (and What’s Not)
Only the premium portion of overtime pay qualifies – in other words, the “extra” half-time for hours worked beyond the standard weekly limit. For example, if your regular rate is $20/hour and your overtime rate is $30, the deductible portion is just the $10 premium per overtime hour. Also note that if overtime is paid based on daily hours worked, only the overtime pay related to hours worked in excess of a 40-hour week will qualify for the deduction.
The maximum deduction per year is:
These deductions apply only to federal income taxes. You’ll still owe Social Security and Medicare (FICA), and state or local taxes still apply. Wisconsin has introduced a bill to exempt overtime pay, but it has not been passed into law as of yet.
Eligibility: Who Qualifies – and Who Doesn’t
To claim the deduction, you must:
Income Caps & Phase-Outs
The benefit phases out based on Modified Adjusted Gross Income (MAGI):
When & How to Claim It
The deduction applies retroactively from January 1, 2025, and will remain in effect through 2028.
For tax year 2025, you’ll first claim this deduction when filing your return in 2026.
Starting in 2026, employers are expected to modify payroll withholding and W 2 reporting to reflect the deduction. For 2025, employers can use “reasonable methods” to estimate qualifying overtime. Form W-2 for 2025 will not be changed, so employers will need to provide eligible employees this supplemental information separately or in Box 14 on the W-2. Draft versions of the 2026 W-2 indicate new codes for Box 12 will be available to report this information in the future.
Notably, you cannot claim both “no tax on tips” and “no tax on overtime”- you must choose between them.
What Does This Mean for You?
This provision offers a meaningful tax break if you work overtime and meet the criteria. Here’s a quick overview:
If you’re regularly working overtime, this can reduce your federal tax bill which can be especially helpful in managing tax brackets or improving refund outlooks. Just be sure to track your qualifying overtime properly and consult your tax professional when filing.
While “no tax on overtime” sounds sweeping, it’s really a targeted deduction designed to soften the load on hardworking Americans, yet it comes with specific limitations, thresholds, and a clear sunset. Maximizing it requires awareness and savvy planning that our team of advisors would be happy to discuss with you. Connect with us today!
A Closer Look at the New Deduction
On July 4, 2025, the One Big Beautiful Bill Act became law, featuring a much buzzed about provision often dubbed “no tax on tips.” But rather than fully exempting gratuities from taxation, the law introduces a federal income tax deduction providing only a partial tax relief for qualifying workers.
How the Deduction Works
Real Impact: Who Wins?
Only about 2.6% of all tax filers are expected to benefit from the new overtime deduction, and many of them already owe little or nothing in federal income tax. In fact, a Yale Budget Lab analysis found that 37% of tipped workers already have incomes low enough that they owe no federal income tax.”
Estimates of the average savings from the overtime deduction vary. The Tax Policy Center projects about $1,370 per year, while other analyses suggest around $1,800 annually. The White House estimates an average increase in take-home pay of $1,675 a year.
Key Takeaways
While the new ‘no tax on tips’ deduction offers some relief, its impact is limited and highly dependent on income levels and job eligibility. If you’d like to understand how this provision could affect your personal situation – or to plan ahead for 2025 and beyond – connect with our team today. We’re here to help you navigate the details and maximize every opportunity available to you.
As 2025 progresses, sweeping tax legislation is advancing through Congress, poised to dramatically reshape the financial and tax landscape in 2026. These changes, aimed at modifying and extending key elements of the 2017 Tax Cuts and Jobs Act (TCJA), carry broad implications for individuals, families, and business owners.
Whether you’re building wealth, managing a business, or planning your estate, understanding and adapting to these evolving tax policies is essential. That’s where a CPA-led advisory firm like Vesta becomes an indispensable partner.
Understanding the Proposed 2026 Tax Changes
Here’s a breakdown of the most impactful provisions currently included in the proposed legislation:
Extension of Individual Tax Cuts
Expanded Targeted Tax Breaks: What You Should Know
In addition to broader tax rate adjustments, the new bill includes targeted tax relief for specific working groups and industries, signaling a policy shift aimed at boosting middle-class income and business investment:
These changes are not just tax-code tweaks—they could directly impact cash flow, staffing decisions, investment timing, and business growth strategies.
Why Work with a CPA-Led Advisory Firm Like Vesta?
Tax law changes this significant require more than just awareness—they demand proactive, strategic planning. Our CPA-led team helps you navigate the evolving landscape with personalized strategies, timely updates to estate and wealth plans, and informed investment and business decisions. Most importantly, we help ensure compliance while minimizing risk, so you can move forward with clarity and confidence. We are proud to serve markets across Fond du Lac, Sheboygan, Mequon, and Madison.
Take Action Now: Don’t Wait for the Law to Pass
The 2026 tax law changes are coming—and smart financial decisions start with early preparation. Proactively working with a CPA-led advisory firm gives you a head start on adjusting your financial strategy and maximizing the benefits of the coming changes.
Stay Informed with Trusted Resources:
IRS Newsroom – Official IRS updates
Tax Foundation: How 2026 Tax Brackets Would Change if the TCJA Expires
You may have heard of diversifying assets, but have you heard of tax diversification of your investments? Whether your goal for investing is saving for retirement, asset distribution, or simply turning a profit, everyone is looking toward a return. However, your return is only as good as the tax cost that comes with it, which is where investing tax-efficiently comes in.
TWO WAYS YOUR INVESTMENTS ARE LOST TO TAXES
There are two ways in which you can lose to taxes when investing: when the money is taxed upon withdrawal and when you lose the growth potential of investments taxed prior to withdrawal. This brings us to the two types of investment accounts that address each of these: taxable and tax-advantaged investment accounts. While tax-advantaged may sound more immediately appealing, there are different advantages of each account.
Taxable Accounts
The main advantage of taxable accounts for optimizing tax efficiency is realized in long-term investments. Because the investment funds are taxed prior to investing, you pay fewer taxes on capital gains over a longer period of time. They also offer tax advantages for your heirs, taxed at the value on the day you die, rather than their value at the date of sale. Additionally, you can use tax losses to reduce your taxable income for the year, called tax-loss harvesting.
Tax-Advantaged Accounts
With tax-advantaged accounts like an IRA or 401(K), the main advantage is that they have tax-free or tax-deferred growth, so you don’t lose the growth potential of the money to taxes.
TWO WAYS TO INVEST TAX-EFFICIENTLY
Ultimately, to invest tax-efficiently, it’s essential not just to consider the ROI but the tax efficiency of both the investment itself and the account you hold it in. As a general rule, compensating for less tax-efficient investments by putting them in tax-advantaged accounts and putting more tax-efficient investments in taxable accounts is the best way to optimize your investments.
However, it takes careful consideration of taxes incurred on investment income, capital gains, and dividends, the anticipated length of investment, and even your anticipated income bracket when you withdraw the funds, among other factors. If you’re feeling overwhelmed with how to optimize your investments, contact us to talk with one of our certified financial planners and let us be your trusted advisor in securing your future.
A diversified portfolio does not assure a profit or protect against loss in a declining market.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Financial Specialists LLC nor any of its representatives may give legal or tax advice.
Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty.
As the year wraps up, now’s the perfect time to refine your tax strategy. Year-end tax planning isn’t just another to-do—it’s your chance to optimize your business finances. By acting early, you can lower your tax bill, free up cash, and set your business up for growth in the new year.
We understand that every business is different- that’s why we create personalized plans tailored to your unique goals.
Focus on Tax Deductions and Credits
The end of the year is your last opportunity to claim deductions and credits that can reduce your taxes. Here are two key areas to explore:
Adjust Income and Expenses
The timing of your income and expenses can also affect how much you owe:
Maximize Depreciation
Year-end is a great time to review your assets. Using bonus depreciation or Section 179, you can write off the cost of equipment and technology purchases now, which reduces your taxable income.
Boost Retirement Contributions
Adding to retirement accounts like 401(k)s, SEP IRAs, Roth IRAs, or SIMPLE IRAs before year-end not only secures your future but also lowers your taxable income right away. It’s a win-win for your finances.
Ready to Start Tax Planning?
Time is running out to take advantage of these tax-saving opportunities. The sooner you act, the better prepared your business will be for the new year.
Need expert help? Contact Vesta today. Our team of advisors can craft a strategy that turns tax season into a strategic win for your business.
The One Big Beautiful Bill Act, signed into law on July 4, 2025, brings sweeping changes to the U.S. tax code, particularly for businesses of all sizes. Designed to stimulate investment, innovation, and domestic production, the bill includes a wide range of tax provisions aimed at reducing burdens on employers, pass-through entities, manufacturers, and startups.
Below is a detailed summary of the key business tax provisions in the act and what they may mean for your bottom line.
Capital Investment & Depreciation
Research & Experimental (R&E) Expenses
Qualified Business Income (QBI) Deduction—Section 199A
Business Interest Expense Limitations
Qualified Small Business Stock (QSBS)
Advanced Manufacturing Investment Credit
Charitable Contributions Deduction (Corporate)
Excess Business Loss Limitations (EBL)
Opportunity Zones & New Markets Incentives
Employer-Specific Tax Benefits
Clean Energy Tax Incentives & Green Programs
Other Noteworthy Provisions
Summary Table
| Area | Key Provision |
| Capital Expenditures | Permanent 100% expensing, higher Section 179 limits |
| R&E Costs | Immediate expensing; retroactivity for small businesses |
| Pass-Through Deduction | Permanent 20% QBI deduction with expanded phase-out thresholds and minimum |
| Interest on Business Loans | Favorable EBITDA-based interest deduction rules |
| QSBS | Expanded limits and tiered exemption based on holding period |
| Manufacturing Credits | Increased manufacturing investment credit to 35% |
| Charitable Giving | Deduction floors introduced for corporations and individuals |
| Business Losses | Permanent excess business loss limit with NOL carryover |
| Opportunity/New Markets | Permanent incentives, new rural opportunity funds, enhanced capital attraction |
| Employer Benefits | Permanent credits for FML leave, childcare, student loan assistance |
| Clean Energy | Removal or phase-out of prior green energy tax incentives |
| SALT Deduction | Cap increased to $40k temporarily |
| Reporting Thresholds | Higher thresholds for 1099-K and other income reporting |
The One Big Beautiful Bill Act marks one of the most significant overhauls to business taxation in recent years. From permanent expensing provisions to expanded credits and new deduction thresholds, these changes present both opportunities and complexities for business owners. Understanding how the Act affects your industry, structure, and future planning is critical to making the most of its benefits. Our CPA-led advisory team is here to help you navigate the new tax landscape with clarity and confidence. Connect with us today to discuss how these provisions may impact your business.
At Vesta CPA, we know that your business represents years of dedication, risk, and achievement. When it comes time to plan a transition – whether selling your business, passing it to the next generation, or exploring a merger—stress and uncertainty can quickly take center stage. A business valuation is one of the most powerful ways to reduce that stress and gain clarity on your path forward.
Business Transitions Can Be Overwhelming Without a Plan
A business transition involves complex financial, legal, and emotional considerations. Without a clear understanding of your company’s value, making informed decisions becomes challenging. That’s why many owners find the process stressful, particularly when faced with last-minute negotiations or tax implications they weren’t prepared for.
The Benefits of Early Business Transition Planning
The earlier you start planning, the better positioned you’ll be for a smooth transition. We recommend starting the valuation process 5 to 10 years before a potential transition. This approach gives you time to:
By planning ahead, you gain the flexibility to make thoughtful, proactive decisions that protect both your company and your legacy.
When Do You Need a Valuation?
A valuation isn’t just for selling your company. There are many key moments when understanding your business’s true value is critical:
How Our Holistic Approach Supports Business Owners
Our CPA-led Advisory team offers more than just a valuation report, we work closely with you to provide a comprehensive, strategic view of your business’s value by looking beyond the numbers to what drives and sustains that value over time.
Our holistic approach combines:
Let Our Team Help You Prepare For Transition – Whenever You’re Ready
Whether you’re years away from transitioning your business or facing an immediate need, the right team makes all the difference. With our Advisory and Wealth professionals by your side, you can navigate your transition with clarity and peace of mind.
Contact us today to learn how our business valuation services and transition planning can help you build, protect, and transfer your business’s true value. We are proud to serve Southeast Wisconsin, including Fond du Lac, Sheboygan, Greater Madison, Milwaukee’s North Shore, and the surrounding areas.
QuickBooks Online has become a go-to solution for small and mid-sized businesses seeking efficient, user-friendly accounting software. But maximizing its potential takes more than just a basic setup—it requires knowledge, customization, and expert support. We provide specialized assistance to help your business get the most out of QuickBooks Online, from resolving technical issues to integrating powerful third-party apps.
Why Choose QuickBooks Online for Your Business?
QuickBooks Online offers robust tools for managing your finances, including:
• Real-time access to financial data
• Automated bank feeds and transaction matching
• Invoicing, payroll, and tax tools
• Seamless mobile access
However, while it’s powerful, businesses often face challenges when setting it up, troubleshooting errors, or trying to connect it with other critical business tools. That’s where our QuickBooks expertise comes in.
Expert QuickBooks Online Support & Training
Our team provides comprehensive QuickBooks support designed to meet your business where it’s at. We help resolve technical issues quickly and effectively, troubleshoot software errors or integration challenges, and answer your QuickBooks-related questions with clarity and insight. We also offer tailored training for your staff to boost confidence and capability. Whether you’re just getting started or looking to optimize your existing setup, we ensure you’re leveraging the full power of QuickBooks for smarter financial management.
QuickBooks App Integrations That Streamline Your Business
Integrating third-party apps with QuickBooks Online boosts workflow efficiency. Our team helps connect your software with tools like payment processors (like Stripe and PayPal), inventory systems, and customer relationship management platforms. These integrations streamline data flow, reduce manual entry, and give you a clearer, real-time view of your business.
Why Work with Vesta for QuickBooks Online?
Our team of certified QuickBooks experts brings real-world business experience to the table, offering customized support tailored to your specific industry and needs. We provide dedicated assistance with both day-to-day usage and long-term strategy, all with a focus on making your accounting process easier, faster, and more insightful.
But our support doesn’t stop at your books. As a CPA-led advisory firm, we also offer integrated wealth and business advisory services to help you make smarter financial decisions beyond the numbers. From tax planning to long-term wealth strategy, we’re here to support your full financial picture.
Ready to Take Your QuickBooks Online Experience to the Next Level?
Let Vesta help you simplify your accounting, improve accuracy, and integrate your tech stack for maximum efficiency. Contact us today to learn more about our QuickBooks support and integration services.
Enhance Your Business with Expert Assurance Services
In today’s competitive business environment, financial transparency, risk management, and operational efficiency are critical for long-term success. We provide expert assurance services that go beyond compliance, delivering strategic insights that drive informed decision-making, enhance trust, and support sustainable growth.
Beyond Compliance: Unlocking Strategic Insights
Many businesses view assurance services as a regulatory necessity, but the true power lies in the insights they provide. A well-executed audit, review, compilation, or agreed-upon procedure can reveal financial strengths, identify inefficiencies, and uncover opportunities for improvement. By gaining a clear picture of your financial health, you can make proactive decisions that enhance profitability and operational excellence.
Building Trust with Stakeholders
Transparency is the foundation of strong business relationships. Whether you’re engaging with investors, lenders, or customers, independent assurance services enhance credibility and foster trust. Reliable financial statements demonstrate your commitment to integrity and accuracy, giving stakeholders the confidence to invest, lend, and collaborate with your business.
If you’re planning for a transition, business valuation, or potential sale, accurate financials provide a solid foundation for strategic decision-making.
Field Audits: A Hands-On Approach to Assurance
Our field audits offer an in-depth, on-site evaluation of key business areas to verify financial accuracy and operational efficiency. Through physical assessments of business processes, transactions, and controls, our field audits help uncover inefficiencies, detect fraud, and ensure compliance with financial and operational policies.
Key Areas Where Field Audits Provide Value
Identifying Risks Before They Become Problems
Every business faces risks, from financial misstatements to internal control weaknesses. Assurance services serve as an early warning system, helping identify vulnerabilities before they escalate into costly issues. Our field audits strengthen internal controls by detecting inefficiencies and weaknesses in financial reporting, allowing businesses to implement corrective actions proactively.
Driving Efficiency and Performance
Assurance services are more than compliance—they drive optimization. By analyzing financial processes, our assurance experts help businesses:
Assurance services act as a catalyst for continuous improvement, ensuring your business remains competitive and resilient.
A Proactive Approach to Business Success
We understand risk is real—and so is our expertise. Our assurance approach provides valuable insights that empower businesses to navigate challenges with confidence. By integrating traditional audits with field audits, we help businesses maintain financial integrity, reduce risk, and optimize performance.
Leverage the Power of Assurance with Vesta
Don’t view assurance services as an obligation—see them as an opportunity. Let’s discuss how Vesta can help you strengthen your business with expert audit and assurance solutions.
Running a business isn’t just about offering great products or services—it’s about understanding the data behind your success. Many entrepreneurs find financial statements overwhelming, but at Vesta CPA, we help businesses unlock actionable insights through our Management Reporting Services – financial analysis, KPI tracking, and Forecasting.
Financial Analysis: Clarity Through Visualization
If you’ve ever looked at a financial statement and felt lost, you’re not alone. Financial analysis takes complex data and presents it in an easy-to-understand format. Instead of staring at columns of numbers, we use visual reports and graphs to highlight key financial trends.
For example, if your sales fluctuate throughout the year, we can plot a graph comparing monthly performance over multiple years. This helps identify seasonal trends, so you can prepare for slow months and capitalize on peak periods. With data integration & automation, these reports ensure that you always have the most current data available to make decisions.
KPI Tracking: Measuring What Matters
Key Performance Indicators (KPIs) are the benchmarks that measure business success. Whether your goal is increasing revenue, improving profit margins, or controlling expenses, KPI tracking helps you stay on target. Our customizable reports for stakeholders ensure that everyone in your organization is aligned with the same objectives.
At Vesta CPA, we generate monthly, quarterly, or annual reports to help you monitor your progress. If you’re falling behind, we work with you to identify reasons—like seasonal dips, increased costs, or shifts in customer behavior—and develop strategies to get back on track. Our collaboration allows you to easily share these reports with your team, ensuring that everyone is on the same page.
Forecasting: Predicting the Future with Data
Wouldn’t it be great to predict your business’s future performance with confidence? That’s exactly what financial forecasting does. By analyzing past data and current trends, we project future revenue, expenses, and cash flow, providing you with clear visibility into your financial future.
For example, if last year’s advertising costs surged in March, we’ll ask: Was this a one-time expense, or should we budget for it again? By adjusting forecasts in real time, we help you stay financially prepared. The user-friendly interface of our forecasting tool makes it easy to visualize future trends and adjust your strategies accordingly.
Why Small Businesses Trust Vesta CPA
At Vesta CPA, we’re dedicated to providing reliable client support every step of the way, empowering you to focus on what matters most—growing your business. Our integrated approach, which includes accounting, wealth, and advisory, is built around clear alignment with your strategic goals, ensuring that every decision, strategy, and recommendation is designed to help you achieve long-term success. We’re here to support your vision and work alongside you to drive your business forward.
Real-time insights for smarter decision-making A dedicated team of advisors all under one roof Personalized strategies tailored to your business goals
Contact us today and let’s turn your numbers into opportunities!
While the number of workers who report being confident about their retirement is greater than ever, the number of workers who have actually calculated what they need for retirement is significantly less. While there are many ways people attempt to calculate the number, there isn’t a one-size-fits-all for retirement as each individual has unique factors to consider. So what factors should you consider when evaluating your retirement and making a plan for your future?
RETIREMENT AGE
The first step in planning for retirement is setting a goal for when you hope to retire. Also, keep in mind that 47% of workers are forced into early retirement, according to the Employee Benefit Research Institute. This percentage is primarily due to either their own health or that of a spouse or family member. Making a plan for retirement should include factoring in unexpected life events like this.
LIFE EXPECTANCY
While you can’t predict exactly how long you will spend in retirement, you can make an estimate based on your age, health, and demographic factors such as gender and family history.
FUTURE HEALTH-CARE NEEDS
With healthcare costs increasing eight times as fast as wages and most employers not offering healthcare benefits beyond retirement, healthcare should be a considerable factor in your retirement plans. While retirees qualify for Medicare at age 65, there are still out-of-pocket costs involved, including long-term care, which is not covered by Medicare at all. Long-term care alone can be a significant portion of your medical expenses and should be a substantial factor in your retirement planning.
LIFESTYLE
What do you plan on doing with all that free time? Do you plan on traveling, joining exclusive memberships or clubs, contributing to philanthropic endeavors, or pursuing certain hobbies? Planning for your ideal retirement means planning for the costs involved in what you hope to pursue in retirement.
DEBTWhile the percentage of people saying their retirement has been negatively impacted by debt has gone down, 70% of workers say their debt is negatively impacting their ability to save for retirement in the first place.
SOCIAL SECURITY
With the future of social security shaky, it is more important than ever to create a retirement plan that doesn’t revolve solely on a program that is surrounded by so much uncertainty. While Social Security currently provides the sole income of a reported 40% of American retirees, without significant reform, this may not be an option for generations moving forward.
INFLATION
So you’ve reached what you think is the magic number, only to realize you didn’t accommodate for inflation, and suddenly your retirement has lost significant value. When planned for, inflation is merely a factor of consideration; when not planned for, it can be devastating.
THE GRAND TOTAL
And the grand total is… it depends on what your factors are. The important thing is to come up with a goal, based on these key factors, and then develop a strategy to pursue it.
Often finding your “number” and quantifying your retirement factors can feel like an impossible task without the help of a trusted advisor. If you’re feeling overwhelmed, Contact us today to talk with one of our certified financial planners.
You may have heard of a “trust” before, but you might still be wondering what it is and what it can do for you. Quite simply, a trust is a legal arrangement in which a person, called a trustee, controls property given by a second person, a trustor, for the benefit of a third person, the beneficiary. The primary advantage of a living trust is being able to control your assets while avoiding many of the taxes, fees, and legal action imposed upon your passing. “How?” You may ask. Well, let’s dig in…
WHAT CAN I PUT IN A TRUST?
First things first, you’re probably wondering what you can even put in a trust. Well, the answer is basically anything that has value, from real estate to intellectual property. You name it; if it has value, you can put it in a trust.
WHAT HAPPENS TO MY ASSETS AFTER PLACING THEM IN A TRUST?
Once placed in a trust, you transfer your ownership to the trust. You no longer legally own your assets; however, as the trustee, you still retain complete control. Therefore, what happens to your assets after placing them in a trust is entirely up to you; buy, sell, give them away, do whatever you want. If you put your assets in a revocable living trust, specifically, you also can amend or revoke it altogether.
WHAT HAPPENS TO MY ASSETS AFTER I PASS?
They will be distributed directly to the beneficiaries named in the trust, avoiding probate (the legal process of proving a will), legal fees, and most estate taxes.
WHAT ARE THE BENEFITS OF A TRUST?
Avoid Probate
One of the primary advantages of a trust is the ability to avoid probate and have your assets distributed directly to your beneficiaries. Rather than put your heirs through the extensive legal process in which 2-7% of your estate could be lost to legal fees, your assets are distributed without the delay or expense of court proceedings.
Make Asset Distribution Clear
By delegating the distribution of your assets upon your death, your beneficiaries don’t have to go through processes to determine the value of assets or distribution.
Delegate Your Own Disability Trustee
Rather than relying on the court to appoint a guardian or conservator, if you become mentally incapacitated for any reason, you can delegate a disability trustee of your choosing to handle your estate.
Shelter Your Estate From Taxes
There are many tax shelters available through different trust provisions and strategies, talk with your financial planner to learn how you can leverage a trust for specific tax shelters, both during your life and after your passing.
Dictate Terms to Your Beneficiaries
If you want to control the circumstances under which your assets are distributed, a trust is a great solution. For example, if you want to protect a minor, you can dictate at what age they receive the monies. Or, if you are leaving your assets to someone of legal age, but they may be unable to manage their finances, you can give the trustee power to distribute funds as they see fit after your passing.
Protect Your Privacy
In the case you don’t have a trust, and your estate goes to probate, then your estate proceedings – often including a list of assets and their value, among other things – are made public. A trust, on the other hand, is a private document.
Navigating trusts and how they can be beneficial for you is not always simple without a trusted advisor if you want to learn more about what a trust can do for you contact us today to speak with one of our certified financial planners.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Financial Specialists LLC nor any of its representatives may give legal or tax advice.
It can be confusing to manage the assets in your retirement plan without any guidance, especially in times of financial uncertainty.
When it comes to investing, stocks have historically outperformed other investments over the long term, making them attractive for staying ahead of inflation. However, the stock market has the potential to be extremely volatile. So, are stocks a safe place for your retirement money? Or should you shift more into a money market fund offering a stable but lower return?
If you’re participating in an employer-sponsored retirement plan, you probably have the option of shifting the money in your plan from one fund to another. Here are a few guidelines to help you decide where your might look to place your investment:
Consider Keeping a Portion in Stocks
In spite of its volatility, the stock market may still be an appropriate place for your investment dollars, especially in long-term retirement planning. Since most retirement plans are funded by automatic payroll deductions, they achieve a concept known as dollar-cost averaging. Dollar-cost averaging is an investment strategy where the total amount to be invested is split across periodic purchases. Essentially, dollar-cost averaging can be an effective way for investors to accumulate shares to help meet long-term goals.
Diversify Your Investments
Diversification is a basic principle of investing. Spreading your holdings among several different investments (stocks, bonds, etc.) may lessen your potential loss in any one investment. When it comes to your retirement plan, you should diversify. But, keep in mind that diversification does not guarantee a profit or protect against investment loss; it is a method used to help manage investment risk.
Investigate Guaranteed Interest Contracts
A guaranteed interest contract offers a set rate of return for a specific period of time, and it is typically backed by an insurance company. Generally, these contracts are very safe, but they still depend on the security of the company that issues them.
Periodically Review Your Plan’s Performance
With your plan, it is likely that you have the ability to shift assets from one fund to another. Use these opportunities to review your plan’s performance, especially when the market or your life situation changes.
When it comes to managing your retirement plan, there is a lot to consider. The good news is you don’t have to manage it alone. Contact your local Vesta office in Fond du Lac, Sheboygan, and Plymouth for help with your retirement investments.
With the majority of Americans having less than $1,000 set aside for retirement, and almost half having nothing saved at all, the longstanding trend is to push off saving for retirement to meet shorter-term goals.
It’s easy to think that you will begin to save for retirement when you reach a more comfortable income level, but the longer you put it off, the harder it will be to accumulate the amount you need.
The Benefit of Saving Early
The rewards of starting to save early for retirement far outweigh the cost of waiting. By contributing even small amounts each month, you may be able to amass a great deal over the long term. One helpful method is to allocate a specific dollar amount or percentage of your salary every month and to pay yourself as though saving for retirement was a required expense.
The Cost of Waiting to Save
Here’s a hypothetical example of the cost of waiting. Two friends, Chris and Leslie, want to start saving for retirement. Chris starts saving $275 a month right away and continues to do so for ten years, after which he stops but lets his funds accumulate. Leslie waits ten years before starting to save, then starts saving the same amount every month. Both their accounts earn a consistent 8% rate of return. After 20 years, each would have contributed a total of $33,000 for retirement. However, Leslie would have accumulated $50,646, less than half, of the $112,415 Chris accumulated.*
Make Your Money Work for You
With a savings plan put into place now, you can put your money to work for you through compounding. Your contributions have the potential to earn interest, and so does your reinvested interest. Even small amounts can make a significant impact in the future. A good rule of thumb is to try and increase your contribution level by 1% or more each year as your salary grows.
Our Vesta team is here to help you set up a plan to save for your retirement. Don’t wait – contact our team today!
*This hypothetical example of mathematical compounding is used for illustrative purposes only and does not represent the performance of any specific investment. Rates of return will vary over time, particularly for long-term investments. Investments offering the potential for higher rates of return involve a higher degree of investment risk. Taxes, inflation, and fees were not considered. Actual results will vary.
A Roth conversion is a simple adjustment that turns your Traditional IRA into a Roth IRA. This conversion can provide long-term tax benefits. However, before you convert your IRA, it is important to understand if making the change is right for you.
Is a Roth IRA conversion right for you?
Though at the forefront, a Roth conversion seems like its benefits far outweigh any negative effects, there are a few factors to take into consideration to ensure it is the right move.
A conversion is right if:
A conversion might not be right if:
How can I make a Roth IRA conversion?
Once you know if a Roth conversion is right for you, ensure you have funds in an existing Traditional IRA. Then, contact the Huberty team to help you open a Roth IRA, make the conversion, and assist you in a plan to pay the taxes.
When should I make my Roth IRA conversion?
It is important to know that you don’t have to convert your entire Traditional IRA at once in the case that you can’t afford to pay the taxes in full. However, there are some strategies to ensure you are making the conversion at the right time. You should consider converting when:
There are numerous other factors to take into consideration when looking to make a Roth conversion, like workplace retirement plans and Medicare surtaxes. Work with our Wealth Management team to find the best option for you!
Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty. Converting from a traditional IRA to a Roth IRA is a taxable event. A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Financial Specialists LLC nor any of its representatives may give legal or tax advice.
