ASSUMPTIONS Assume that the entrepreneurs and the professionals have access to employer sponsored retirement plans and that independent workers do not have access (Artist, Construction Worker, etc ) Remember to take into account the tax rate of the client at retirement Will it be similar to the marginal tax rate while they were working Assume that your clients Adjusted Gross Income (AGI) is 60 of the income reported in the profiles I am sure some clients can push that down, but this is not a tax course CLIENT INFORMATION Client Age 22 Marital Status Married Number of children at home 0 Occupation HR Staff Income 50,000 Income Growth High Monthly Discretionary Spending 750 Risk Guideline Would Sell in a falling market Goal of Investment Save for graduate school Investment Horizon 4 years Student loans 80,000 Individual loans 0 Joint Mortgage 120,000 Joint loans 32,000 Joint assets 150,000 Business assets 10,000 QUESTIONS TO ANSWER Can the client use a tax deferred account If so, what is the best account type for the client If they cannot use a TDA, what is their best alternative How should your client handle longevity and medical risk Should your clients do a Roth IRA conversion Are your clients eligible for a Savers Credit The amount Will the client be liable for the AMT If so, what will you suggest they do to minimize it

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Posted on Sep 20, 2024

ASSUMPTIONS: Assume that the entrepreneurs and the professionals have access to employer sponsored retirement plans and that independent workers do not have access (Artist, Construction

ASSUMPTIONS:

Assume that the entrepreneurs and the professionals have access to employer sponsored retirement plans and that independent workers do not have access (Artist, Construction Worker, etc.). Remember to take into account the tax rate of the client at retirement. Will it be similar to the marginal tax rate while they were working? Assume that your clients Adjusted Gross Income (AGI) is 60% of the income reported in the profiles. I am sure some clients can push that down, but this is not a tax course.

CLIENT INFORMATION"

Client Age: 22
Marital Status: Married
Number of children at home: 0
Occupation: HR Staff
Income: 50,000
Income Growth: High
Monthly Discretionary Spending: 750
Risk Guideline: Would Sell in a falling market
Goal of Investment: Save for graduate school
Investment Horizon: 4 years
Student loans: 80,000
Individual loans: 0
Joint Mortgage: 120,000
Joint loans: 32,000
Joint assets: 150,000
Business assets: 10,000

QUESTIONS TO ANSWER:

Can the client use a tax deferred account?
If so, what is the best account type for the client?
If they cannot use a TDA, what is their best alternative?
How should your client handle longevity and medical risk?
Should your clients do a Roth IRA conversion?
Are your clients eligible for a Savers Credit? The amount?
Will the client be liable for the AMT? If so, what will you suggest they do to minimize it?