Tuesday, February 25th
February 28th – Jensen’s and PLOC Wine tasting. 5:00 – 7:00 pm, at the Point Loma Assembly, 3035 Talbot Street, tickets are $25pp and available at the Jensen’s market or by clicking here
March 10th – PLOC Oratorical Contest, 7:00 am, San Diego Yacht Club
March 16th – PLOC Board of Directors meeting at 5:00 pm, Members Dinner at 6:00 pm, location to be announced
May 2nd – The Golden Grand presents: “Tropical Paradise”, from 5:00 – 11:00 pm, at the Bali Hai Restaurant, 2230 Shelter Island Drive, for more information click here
This morning we were educated and entertained by one of our own. PLOC Member Jesse Sikorski gave us a birds eye view of the recent legal changes to how and when you must utilize your IRA plans. Luckily for us, this is an area of expertise for Jesse! Born and raised in New York, Jesse displayed his skills on the baseball diamond and in the classroom at John Hopkins University in Maryland. He then revealed the true value of a college education by moving to San Diego! For the past 6 years, Jesse has been working as a Financial Advisor at the investment firm of Edward Jones. “The relationships that I have with my clients are collaborative partnerships, where I help them outline a strategy, build a portfolio of investments, and provide on-going management,” he told us.
The majority of the America’s wealth belong to people who may be considered Baby Boomers. This age group is generally defined as those born between 1946 and 1967 (or those 53 -74 in age). This means a tremendous amount of wealth will be moving from the Baby Boomer generation to their heirs over the next 20 years or so. The US Government has taken a look at this wealth bubble and decided with the rules in place, that much of this wealth transfer could be passed along without any tax payments coming their way. They decided this would be an opportunity lost for the government and needed to do something.
Recent changes to the rules governing Individual Retirement Accounts (IRAs) may have a significant impact on many Baby Boomers and their heirs. Generally speaking, the rules pushed back the date at which the account holder must start taking distributions (from 70.5 yrs to 72 yrs). This was a good thing. But, the government also changed the rules governing the distributions from those IRA holdings, upon the death of the account holder. When the holder of an IRA account passes and the heir to the account is not his or her spouse, there is now a 10 year time frame for the TOTAL AMOUNT of the IRA account to be withdrawn (and hence taxes to be paid). This can have significant impacts to the heir and their tax liabilities.
Jesse shared several ideas with our members on how they could reduce these potential tax liabilities. He also discussed the impact of the changes on the surviving spouse (who is also an heir). He has similar strategies that can be employed by the surviving spouse to reduce tax liabilities on any remaining IRA account balances that would pass to subsequent heirs. Jesse was peppered by members with questions and provided good feedback. But, as with many investment and taxing issues, the best strategy will be an individual strategy, meeting the needs of the investor and their current/future goals. To that end, Jesse is offering complimentary portfolio reviews by calling him at 619-461-0100. Thanks Jesse!