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Case Study: Tailored Wealth Management Solution for the Golden Years

At Snyder Wealth Group, we appreciate that every individual, every family, is unique, and so are their financial situations and goals. Our integrated approach to wealth management ensures that your personal circumstances receive the utmost consideration. This case study offers a glimpse into how we make this a reality.

The Challenge

A husband and wife were preparing to transition into a retirement community with an assisted living facility and needed guidance on a crucial tax-related decision. They had three options to consider for medical tax deductions: electing to receive a one-time 70% deduction on the entry fee, a 56% deduction on the annual maintenance fees, or a split with an upfront deduction of 30% of the entry fee and 30% of the annual fees.

Our client’s initial basic calculation suggested that choosing the 56% annual deduction would accumulate the most deductions over time. However, this approach didn’t take into account the couple’s personal circumstances and financial circumstances. Fortunately, our client realized that they should run the options by us and they asked us to confirm their math.

The Snyder Approach

This couple had both enjoyed successful careers and were now collecting substantial pensions. In addition, they had an IRA with substantial annual required minimum distributions (RMDs) that they didn’t currently need but were required to take as taxable income, pushing them into a higher tax bracket.

We went through a careful and thorough analysis of the complexities of the medical deduction, how it interacts with their income, and what other tax planning opportunities may be created. We involved the client’s accountant and were able to confirm our analysis. It turned out that option one was by far the best because it allowed us to make a significant Tax-Free Roth Conversion. This strategy allowed the couple to utilize the hefty upfront deduction to offset the conversion of their traditional IRA into a Roth IRA, eliminating the need for RMDs and giving them the freedom to withdraw tax-free funds when needed.

Our approach continues beyond the internal consultation. In this case, we actively collaborated with the couple’s accountant, who agreed with our strategy. This external coordination is a hallmark of our services; we often work hand in hand with our client’s estate attorneys, tax preparers, and other professionals, fostering a cohesive financial management team.

This proactive and coordinated approach served the couple during their lifetime and provided substantial benefits to their heirs. Upon their passing, the tax-free inheritance from the Roth IRA would prevent their children from being pushed into a higher tax bracket – a fate they would have faced had the money stayed in a traditional IRA.

Through this strategy, we saved the couple over $100,000, demonstrating the power of our personalized and integrated wealth management approach.

The Outcome

This case study serves as a testament to Snyder Wealth Group’s commitment to understanding and adapting to each client’s unique circumstances. The financial decision that was best for this couple might not be the best for another client in a similar situation. At Snyder Wealth Group, we prioritize understanding your individual situation and aligning our recommendations with your needs, goals, and the expert advice of your trusted professionals.

Whether navigating complex financial landscapes, planning for retirement, making a significant life transition, or securing your legacy for future generations, Snyder Wealth Group offers a personalized and comprehensive approach. Our commitment is to help you make the most of your wealth, in concert with your chosen team of professionals. Trust us to guide you in achieving your financial goals.

Case studies presented are not indicative of all client experiences with Snyder Wealth group. Each client has unique circumstances and the case studies presented are only meant to illustrate common errors individuals make when handling their investments. Case studies presented should not be interpreted as a guarantee of future performance or success.

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