As summer begins to wind down across Northern Michigan, the pace starts to shift. Visitors head home, students return to school, and busy days on the water gradually give way to quieter routines.
This time of year can also create space to step back and look at the bigger financial picture. For families approaching or already in retirement, that may include reviewing how wealth is structured and whether the assets that helped build it still support the flexibility they need today.
For many successful families, a business, property, family land, rental portfolio, or concentrated investment has played a major role in creating wealth. Over time, however, having too much tied to one asset can affect retirement income, liquidity, taxes, estate planning, and family decisions.
That’s the focus of this month’s featured article, “Is Too Much of Your Wealth Riding on One Asset?” Originally featured in the August edition of the Traverse City Business News, the article explores how a concentrated asset can affect your financial plan and the decisions you make over time.
We hope you and your family enjoy the remaining days of summer and a smooth transition into the season ahead.
~ The Team at Black Walnut Wealth Management
Is Too Much of Your Wealth Riding on One Asset?
For many families, a concentrated asset is simply the result of years of successful ownership, investing, or business growth. The question is how that asset should fit into the plan as circumstances evolve.
In the article, Eric looks at four areas worth considering: concentration, liquidity, tax impact, and family readiness. He also explores why addressing those questions before a sale, transfer, or other major decision can leave families with more options.
WHAT WE'RE WATCHING
Keeping Perspective
There’s always something happening in the world that can create uncertainty, from geopolitical conflicts and natural disasters to changing interest rates and inflation.
We’re watching those developments closely, along with upcoming economic events such as the Federal Reserve’s Jackson Hole symposium later this month and the September Fed meeting. These can shape expectations around inflation, interest rates, and markets.
Our role is to help filter the noise, evaluate what actually matters to your financial plan, and make adjustments when appropriate. We’ll continue monitoring the environment so you can stay focused on the bigger picture and your long-term goals.
PLANNING TIP OF THE MONTH
Estate Plans Should Evolve as Life Changes
August is Make-A-Will Month, a good reminder that estate planning documents shouldn’t be something you complete once and forget about. Changes in family circumstances, assets, tax laws, beneficiaries, or personal wishes can all affect whether your plan still reflects what you want.
As part of our ongoing planning process, we help clients review how their wills, trusts, beneficiary designations, and broader estate strategy align with their financial plan and family’s specific needs. We also help coordinate with estate planning attorneys and other professionals so those plans can stay current as life changes.
If it’s been a while since you’ve reviewed your estate documents, this is a good month to take another look.
TAX-SMART STRATEGY
A Coordinated Approach to Retirement Income
In retirement, generating cash for spending isn’t always as simple as deciding how much to withdraw. Taking money from a taxable account, traditional IRA, Roth IRA, or other source can affect your tax bill differently and may also influence Medicare costs through IRMAA, the income-related adjustment added to Medicare Part B and Part D premiums for higher-income households.
That’s why we look at retirement income as part of a coordinated strategy. By considering taxes, investment gains, required distributions, IRMAA thresholds, and future income needs together, we can help determine which accounts to use and when, including how income decisions today could affect Medicare costs in future years.
The goal is to create the income you need today while reducing taxes in the years ahead.
UPCOMING COMMUNITY EVENTS
- August 19-23
- August 27-30
- September 7 – Labor Day
- September 11
- September 11-12
- September 12-13
REVIEWS & RECOMMENDATIONS
Help Others Find a Financial Partner They Can Trust
We’re grateful for the feedback we receive from clients. Here’s one that made our day:
"Everyone on the team is professional, courteous, and engaging. My questions are heard and answered thoughtfully and thoroughly." ~ Noreen S.
This testimonial was provided by a current client of our firm. We did not provide any compensation in exchange for this testimonial. Because the individual is a current client, their experience and opinions may be influenced by their ongoing relationship with our firm. Clients’ experiences may not be representative of all clients, and results are not guaranteed.
