[ Podcast ] Tax Planning on the Journey to Retirement with Nancy Waring
Join Chip Munn, CEO of Signature Wealth Group and Senior Wealth Advisor with RJFS as he interviews Nancy Waring, CPA, and President of Waring & Associates in Florence, South Carolina.
Nancy is a 1975 Auburn University graduate, receiving a Bachelor of Science in Accounting with a minor in Spanish. Nancy merged with a friend and mentor in 2007, creating Waring and Associates, CPA’s PA. Nancy is a member of the American Institute of CPAs, South Carolina Association of CPAs, Pee Dee Chapter of CPAs, and the Florence Breakfast Rotary Club, as well as former Chairman of the Taxation Committee of the South Carolina Association of CPAs. Nancy has been practicing for over 40 years in the Pee Dee area, consistently growing her expertise while going through its consistent industry evolutions for more than four decades.
Nancy and her husband, Larry, know a little something about some of the financial complications that can come with retirement. Larry worked for Duke Energy for many years, and one year Duke came out with a newly formed (and generous) severance package. Together, he and Nancy decided that, though he anticipated a few more years, maybe now was the time for him to retire a little early. However, the difference in the Medicare premium they then had to pay out of pocket following his retirement was far more considerable, without the help of any employer contributions. Medicare premiums are income-based (going back two years on your previously reported cumulative income) in a graduated-rate.
Situations like these are the reason it’s so important to work with a group of financial professionals. Nancy, being an industry professional, was able to anticipate and account for these changes to their obligations; however, for many families considering retirement, this may have come as more of a harsh (and costly) surprise.
Taxes are complicated and they can be much further complicated by retirement. Though there are complexities to ensuring your taxes are correctly anticipated and paid, it also provides opportunities to be creative to maximize the provided flexibility. Planning is the most critical component from a tax-responsibility perspective, and it can require some necessary shifts to account for the changes seen in early retirement. However, after a few years of adjustments and understanding how it will work with your new income sources, individuals usually begin to feel more informed.
Tax planning is most effective when it is proactive. If you are in transition or making a major life shift and you are wondering how it’s all going to work out, it’s best to set up a meeting to discuss the implications before making any final decisions. Some things in life that you decide you may be ready for can also be incredibly impactful on your tax obligations, such as the sale or purchase of a home, major changes in employment, inheritance, or even family structure changes. It’s best to connect with your tax professional well in advance to ensure that you are saving yourself the most money possible in these transactions. Your professional can help you run different scenarios and discover which option may be the best for you before the signature is dry on the page. Often once these significant changes are made, there is very little your tax professional can due retroactively to save you the bundle they may have been able to before you signed on the dotted line.
Tune in to episode six of The Retirement Remix now to hear Chip and Nancy discuss topics such as:
- From a tax perspective, what are some of the most critical steps that must be taken on a journey towards retirement?
- What it means that our tax system is ‘progressive’ and how can that impact retirement.
- How to manage the increase of streams of income in retirement that may not be withholding taxes as your W4 does from typical W2 income.
- What are the two biggest questions you should be asking about Social Security?
- Some of the most important responsibilities of a client of an accountant, and the role you play in your proper tax planning.
The goal of The Retirement Remix Podcast is to engage in real conversations with real people about how we actually retire.
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*Any opinions are those of Nancy Waring and Chip Munn and not necessarily those of Raymond James. This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.
Source: Chip Munn, Award Winning Advisor https://onwallstreet.financial-planning.com/slideshow/top-10-regional-advisors-under-40 *Each year On Wall Street ranks the highest-producing advisers in wealth management who are under 40. Several hundred candidates were considered and 10 were chosen to receive the award. Finalists had to be no older than 39 as of Dec. 31, 2015 and be employed at a major, leading regional brokerage firm. Trailing 12-month production as of 9/30/15 is then used to compile the ranking. AUM may also be taken into account. The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of advisor’s future performance. Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award/rating. On Wall Street is not affiliated with Raymond James.
