The New Three–Legged Stool: A Tax Efficient Approach to Retirement Planning

You've earned your money . . . Now here's how to keep it! "It's easy for anyone to believe the government protects its citizens' rights. But the truth is, in matters of taxes, once the IRS gets its hands on your money, you can kiss that money goodbye. You must act before that event takes place—and this book will help you do it. At the end of the day, it's what you and your family get to keep that counts." —Rick Rodgers, CFP, founder, Rodgers & Associates Most people dream of retirement as a relaxing, worry-free time in their lives. What many do not realize is that the IRS is also looking forward to the day you retire. Our complicated tax system can mean the government is entitled to a significant amount of your retirement assets—unless you protect them properly. Now, Rick Rodgers, founder of one of the country's top wealth management firms, helps you retain as much of your hard-earned retirement assets as possible. His unique Three-Legged Stool™ approach to financial security makes it both easy to understand how to achieve this retirement security and difficult to "lose balance"—that is, get off-track once you've established your plan. Leg One —tax-deferred savings strategies Leg Two —after-tax savings strategies Leg Three —tax-free savings strategies Plus, a closer look at: The all-important retirement distribution (R/D) factor Social Security Estate planning With real-life case studies, tips, and recommendations from Rodgers' own experiences as a Certified Financial Planner and Certified Retirement Counselor, this practical guide will help you establish a plan to build the retirement you and your family dream of—and deserve.

Introduction: The Un–Funniest Story Ever Told vii Why Would the IRS Steal Your Money? xiii Who Am I to Give You Advice? xv The Three–Legged Stool™ Approach to Financial Security xvi Chapter One: Leg One: Tax–Deferred Savings Strategies 1 The Main Tax–Deferred Accounts: A Refresher Course 1 Prevent the IRS From Touching Tax–Deferred Distributions 11 NUAs Keep the IRS Away From Tax–Deferred Stock Distributions 33 Chapter Two: Leg Two: After–Tax Savings Strategies 39 Transfer Highly Taxed Assets into Tax–Deferred Accounts 39 Begin to Build Your Investment Plan Around Asset Allocation 44 Five Steps to Reducing the Wrong Kind of Investment Risk 50 How to Invest in a Tax–Efficient Way 65 Implement a Zero Tax Bracket Approach 72 Chapter Three: Leg Three: Tax–Free Savings Strategies 79 Understanding Roth Accounts 79 Roth IRA Conversions: Better than Any Tax Break 85 Chapter Four: Distributions: Strike an Ideal Balance Among All of Your Accounts 93 The Retirement Distribution (R/D) Factor™ 93 How and When to Take Retirement Savings Distributions 97 Tips for Taking Early Retirement 114 Get Guidance From a Good Financial Advisor 126 Chapter Five: Understanding Social Security 137 Social Security: A History 137 How Your Benefits are Calcluated 140 When to Begin Taking Benefits 147 The Tax on Your Benefits—and How to Reduce It 150 Social Security Reform 157 Chapter Six: Keep the IRS Out of Your Estate 163 Five Reasons to Reexamine Your Estate Plan 163 Estate Tax Overview 165 Gift ing Strategies for Avoiding Estate Taxes 167 Estate Planning with a Roth IRA 177 Beneficiaries: Key to Any Solid Estate Plan 181 Appendix: How to Write a Personal Financial Plan 189 Part One: Establish Clear Advisor–Client Communication 190 Part Two: Create a Detailed Investment Plan 192 Glossary 197 About Rick Rodgers 201

Rick Rodgers, CFP®, CRPC®, CRC®, is founder and President of Rodgers & Associates. His career in the investment and financial advisory profession began in 1984 with one of the big six Wall Street firms. Twelve years later, he founded Rodgers & Associates as a way to concentrate on financial planning. His vision was to help families prepare for a worry-free retirement through the creation and conservation of their wealth. Today, as a leading retirement expert and personal wealth advisor to high-net-worth individuals, Rick provides integrated financial, tax, and investment strategies, retirement planning, executive compensation, and estate and charitable planning. Since 2010, Rick has become a regular guest on television programs nationwide. Producers and hosts alike praise Rick for his sharp wit and expert commentary on retirement planning and tax strategy. A committed Christian, Rick was a field representative for Larry Burkett's Christian Financial Concepts (now known as Crown Financial Ministries). Active in both his church and community, Rick has also volunteered as a mortgage counselor for Tabor Community Services. He currently serves on the finance committee of the United Way of Lancaster County and the advisory boards of SCORE Lancaster, The Ware Center, and The Mix at Arbor Place. Rick and his wife Jessy live in Lancaster, Pennsylvania. In addition to spending time with his seven grandchildren, Rick enjoys golfing and boating on the Chesapeake Bay.