As we meet with clients this fall, we’re looking at decisions that need attention before December and how well each plan would hold up if life changed. For many Northern Michigan families, that means considering retirement income, investments, and taxes alongside properties, business interests, and family responsibilities.
One important part of that review is understanding how a plan built for two would work for one. Losing a spouse can affect income, taxes, Medicare costs, and access to assets, even when a family has substantial wealth. Preparing ahead can help make those decisions more manageable during a difficult time.
Our featured article, “What Happens to Your Financial Plan When One Spouse Is Gone?”, appeared in the October edition of the Traverse City Business News. It explains the financial changes couples should prepare for and offers 5 questions to help start the conversation.
Whether you share financial responsibilities or manage them on your own, you should have a team you can turn to as circumstances change. Our role is to guide the decisions, coordinate with your other professionals, and handle the details so you can spend more time enjoying life.
~ The Team at Black Walnut Wealth Management
Would Your Financial Plan Still Work for One?
A surviving spouse may face lower household income while paying higher taxes or Medicare premiums. Investments and property can also create challenges if cash isn’t readily available.
In this article, we explain what can change and then offer 5 questions to help you prepare.
WHAT WE'RE WATCHING
Using AI for Financial Questions
AI tools can help explain financial terms, summarize information, and prepare questions for a planning meeting. The challenge comes when a general explanation sounds like advice tailored to your circumstances.
For example, a suggestion to convert IRA assets to a Roth may overlook your other taxable income, potential Medicare premium increases, or charitable-giving plans. Evaluating the suggestion means looking at those details together.
If you use AI to explore financial topics:
- Verify sources and dates, especially for tax rules
- Keep account numbers and sensitive personal information out of prompts
- Share suggestions with us — we’ll check their accuracy and evaluate whether they fit your plan
PLANNING TIP OF THE MONTH
Putting Your Year-End Decisions in Order
October gives us time to review year-end opportunities, recommend appropriate steps, and coordinate with your tax professional before December deadlines. We look at these decisions together so you don’t have to manage each piece separately.
We consider any tax planning opportunities such as tax loss harvesting, additional IRA distributions, or Roth conversion. Depending on your circumstances, our review includes:
- Retirement savings and withdrawals: Review projected income, remaining workplace retirement contributions, and whether a Roth conversion fits your plan.
- Charitable and family gifts: Finalize which assets to give, evaluate how gifts affect your plan, and help arrange transfers.
- Investments and cash: Address concentrated holdings, evaluate taxes before selling, and maintain cash for upcoming expenses.
- Beneficiaries: Review designations with you and coordinate any updates needed to reflect your wishes and estate plan.
Your part is to keep us informed about changes or plans we should account for. We’ll explain our recommendations, confirm your preferences, and coordinate the next steps.
TAX-SMART STRATEGY
Looking Ahead to Your 2026 Tax Bill
A year-end tax projection helps estimate what you may owe while there’s still time to act. Investment gains, retirement withdrawals, business income, or a property sale can all affect the outcome.
We coordinate with your tax professional to compare projected taxes with withholding and estimated payments, identify potential shortfalls, and recommend appropriate adjustments. We also evaluate how planned withdrawals, investment sales, and charitable gifts fit into the picture.
If you’ve received unexpected income or anticipate a large transaction before December, please let us know. We’ll work through the planning details with you and your tax professional so you don’t have to coordinate them on your own.
UPCOMING COMMUNITY EVENTS
- October 16
- October 17
- Peak2Peak Mountain Bike Classic – Thompsonville
- October 31
- November 1
- Daylight Saving Time ends
- November 3
- Election Day
- November 11
- Veterans Day
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 is very friendly and are interested about what's going on in my life. I value their friendship and trust their guidance." ~ Chris T.
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.
