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Tax And Financial Planning Are Not So Simple

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If you are like most people, you probably wouldn’t feel comfortable performing surgery to remove your spouse’s appendix. You probably would not fix the brakes on the family car. You probably would not risk tutoring your child to prepare for the SATs.

So why do people think they can create their own financial plan to make their money last the rest of their lives?

As an independent professional, it’s troubling to see consumers sold on believing they can strategically plan their own tax-smart strategy for building wealth. Financial and tax planning are not so simple.

Tax simplification, once a legislative priority, is a long-lost goal of lawmakers. Meanwhile, investing is harder. Interest rates are lower than ever in U.S. history and the pace of change has accelerated because of the internet. The last time inflation was this bad, eight-track players were in most cars, 40 years ago.

Navigating it all requires a strategic perspective on tax and personal financial planning news, uncommon knowledge.

For example, the IRS published new rules on January 10, 2022 in Notice 2022-6, making it easier to retire early, if you own a large IRA, 401(k) or other federally qualified account (FQA). It is an urgent and important strategic change in financial planning for pre-retirees in 2022! However, the topic has received no coverage in the financial press, as of this posting. A Google search for news about “IRC 72(t)” and “substantially equal periodic payments” returned no results about the new IRS rules. Zilch.

And, yet, if your IRA or 401(k) account holds more than $500,000 and you want to join The Great Resignation, this could be a life-changing IRS edict! But you need to be a financial professional to know about the new rules and how they affect your personal situation. Meanwhile, as if personal financial and tax planning are simple to implement, financial service giants are selling consumers on managing their money on their own and letting them sink or swim.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.


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This article was written by a professional financial journalist for Responsive Financial Group, Inc and is not intended as legal or investment advice.

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