Iain McLeod FPFS TEP’s Post

With the news about pensions in the Budget recently it’s important to remember the points in Iain’s post below & to make sure you receive expert advice. #budget #financialplanning #tax

As always, my colleague Iain McLeod FPFS TEP speaking sooth. If you're worried/confused - I don't blame you! The next actions are: 1. Speak to a Financial Planner 💪 2. Make sure they understand your situation 👍 3. Work with them to make a plan based on the new rules (once we have all the facts) ☑ 4. Actually action the plan (many people never get to this part!) ✅✅ ✅ 5. Have a cuppa, and get on with your life ☕

Do you think enjoying #retirement is more important than leaving an #inheritance? Our latest Life Well Spent #research has found that attitudes are changing: 💸While most people over 50 still prioritise leaving an inheritance over spending in retirement... 👛...adult children would prefer parents to spend their money – even if it means no inheritance for them. With people living longer, more funds are needed to fund retirement, and children are more likely to already be financially stable by the time they would inherit. https://lnkd.in/dAi9E75A

🚨 Planning Your Future? Let's Talk Inheritance Insights with Brenda Hiscock! 🚨 In the Toronto Star, Srivindhya Kolluru talks with our very own Brenda Hiscock about the risks of banking on inheritances for retirement. Brenda advises the importance of early and open discussions about inheritances. 👉 Read more about why you should think twice about funding your retirement with an expected inheritance and get expert tips from Brenda Hiscock on how to approach this delicate topic: https://lnkd.in/epJwSy8C #FinancialPlanning #Retirement #Inheritance #AdviceOnlyFinancialPlanning #FeeOnlyFinancialPlanning

Am excellent article from Heather Dunne Parity of Income v Equality of Capital Value Insights / By Heather Dunne The first step is to decide whether the apportionment should be based on The Income available or the Capital Value of the pensions The Pension Advisory Group (PAG) Guidance is clearly supported by the Judge in the following case, who was the Co-Chair of PAG. W v H (divorce financial remedies) [2020] EWFC B10 In this case, HHJ Hess concluded that: In a needs case, where the parties are ‘nearing retirement’ and defined benefit schemes are involved, equal sharing of pension income is more likely to be appropriate than sharing of capital. You should include all pensions accrued prior to the marriage. ‘It is difficult to see that excluding any portion of the pension has justification’. Offsetting should be avoided where possible.... #pensions #divorce

With inheritance rules rumoured to change in the upcoming Budget, it’s interesting to see what SunLife’s latest #research reveals about how Brits feel about this hot topic. As it turns out, most of those set to inherit would prefer their parents to spend on enjoying retirement, even if it meant no inheritance. But on the flip side, people over 50 still prioritise leaving an inheritance. That means that they could be discounting options like equity release, in an effort to preserve an inheritance their loved ones might not need or expect. https://lnkd.in/dvvr4fPi #research #report #inheritance #equityrelease #retirement #retirementplanning #laterlife #LifeWellSpent2024

🚨 Major Alert for UK Pension Holders: New Inheritance Tax Rules Coming in 2027 The UK government has just announced a significant change that will affect how we think about pension inheritance. Chancellor Rachel Reeves has unveiled plans to subject pensions to inheritance tax starting April 2027, which could dramatically impact retirement planning strategies. Key Points to Consider: • The Treasury expects to raise £1.5 billion annually by 2030 • Unused pension pots of those over 75 will now be subject to both inheritance tax AND income tax • This could create effective tax rates of up to 64% for some beneficiaries • Implementation is set for April 2027, giving families time to adjust their planning Let me break this down with a real-world example: Sarah has a pension pot worth £500,000 when she passes away. Under current rules, her children would only pay income tax on the inherited pension (if Sarah was over 75). Under the new rules: 1. First, 40% inheritance tax = £200,000 2. Then, income tax at 40% (if they're higher-rate taxpayers) on the remaining £300,000 = £120,000 3. Total tax bill = £320,000 (64% effective tax rate) 4. Final amount received by beneficiaries = £180,000 This is a wake-up call for anyone using pensions as part of their inheritance planning strategy. While we have until 2027, the time to start reviewing and potentially restructuring retirement and estate plans is now. What are your thoughts on this significant change? How will this affect your retirement planning strategy? #FinancialPlanning #PensionReform #UKFinance #InheritanceTax #RetirementPlanning #WealthManagement

While 67% of families want to leave an inheritance, over a third are unsure if they’ll be able to. A report by New York Life found that 15% of American adults expect to receive an inheritance within the next decade. Learn more about these trends and how they shape retirement decisions. #RetirementPlanning #Inheritance #TeamNYL Share Article

🔍 **Can I Take Money Out of a 403(b) Without Penalty?** Understanding how to withdraw funds from your 403(b) without incurring taxes or penalties is crucial for your retirement planning. Here’s a summary of the IRS rules and some key exceptions that may allow you to make penalty-free withdrawals: 1️⃣ **Age 59½ or Older**: Withdraw without penalty, but regular income taxes still apply. 2️⃣ **Separation from Service After Age 55**: If you leave your job at 55 or older, you can access funds penalty-free. For public safety employees, this drops to age 50. 3️⃣ **Substantially Equal Periodic Payments (SEPP)**: Withdrawals based on your life expectancy can be penalty-free, but must continue for at least five years or until age 59½. 4️⃣ **Disability**: Permanent disability allows you to withdraw without penalties. 5️⃣ **Death**: Beneficiaries can access funds penalty-free upon the account holder's death, though income tax may still apply. 6️⃣ **Qualified Medical Expenses**: Withdrawals for unreimbursed medical costs exceeding 7.5% of AGI can be done without penalty. 7️⃣ **Qualified Domestic Relations Orders (QDROs)**: In divorce cases, court orders can allow an ex-spouse to access funds without penalty. 8️⃣ **Certain Expenses for First-Time Home Purchase or College**: While less common for 403(b)s, some withdrawals for these purposes may not incur penalties. 💼 At **Georgia Safe Retirement Planners**, we specialize in helping you navigate these rules and develop effective withdrawal strategies to maximize your retirement income while minimizing penalties. With over 15 years of experience, we provide tailored advice to meet your needs. 🗓️ **Get Started:** 1. Schedule a **Free Consultation**. 2. Develop a **Personalized Strategy**. 3. **Implement Your Plan** to make penalty-free withdrawals. Ready to explore your options? Contact us today for your free consultation! 👉 Learn more: [Can I Take Money Out of a 403(b) Without Penalty?](https://lnkd.in/eKbA8Bc7)

The Financial Post asked me to review the finances of a married couple in their 60s who are winding down their successful Ottawa-based consulting business and operating company. They want to shift to a two or three-day workweek and take summers off, and they are trying to determine where to invest their money, so they can keep their comfortable lifestyle during retirement. In the article you’ll learn: • How should they set up their retirement income? • How much should they pay themselves in dividends from their corporation? • Why Clarissa should delay CPP to age 70, but Bill was right to start it at age 65. • Should they contribute to their RRSPs and TFSAs, since they are semi-retired? • Why they need a 6%/year return to support their $250,000/year lifestyle. • How to invest with their different mindsets about risk. • When should they transfer the title of their daughter’s home to her? • Why they should not give their kids some of their inheritance now. • The financial strategies and investment ideas that I recommend. 👉 https://lnkd.in/dFXpUzpw #UnconventionalWisdom