News

Nolen Bailey of CPS Investment Advisors has now received the top two designations in 401(k) planning. Nolen now possess the following designations:

CRPS – Chartered Retirement Plan Specialist (through the College for Financial Planning)

ARPC – Accredited Retirement Plan Consultant (through the Society for Professional Asset-Managers and Record Keepers)

Chas P. Smith honored T. Boone Pickens with a degree from Florida Southern College for entrepreneurship and philanthropy in September of 2014. T. Boone Pickens spoke and answered questions from a panel of students.

Quarter One, 2015 Newsletter

Posted on January 20, 2015 in

Retirement Distribution Pitfalls: Not Reinvesting RMDs You Don’t Need

Accumulation is a key facet of reaching your retirement goals. However, we tend to see far less about portfolio drawdown, or decumulation—the logistics of managing a portfolio from which you’re simultaneously extracting living expenses during retirement. This can be even more complicated than accumulating assets.

Pitfall: One of the big mistakes of retirement distribution can be not reinvesting RMDs you don’t need. Retirees may experience a situation where the amount they must withdraw from 401(k)s and IRAs for required minimum distributions can take them over their desired distribution threshold. The RMD rules require that people initially withdraw less than 4% of assets at age 70 1/2, but distributions can quickly step up into the 5%, 6%, and 7% range. (more…)

New IRS guidance on 401(k) rollovers

Good news: If you have after-tax money in your traditional 401(k), 403(b), or other workplace retirement savings account, you can roll it over to a Roth IRA without paying taxes, as long as certain rules are met. A recent clarification from the IRS confirmed this. Previously, the rules weren’t entirely clear. Now it is clear that you can roll after-tax money to a Roth IRA and pretax money to a traditional IRA and avoid creating taxable income. There is one catch: The after-tax and pretax balances must be rolled over at the same time, and in the same proportions as in the 401(k). (more…)

By CHAS P. SMITH, CPA/PFS

Excerpts Published Thursday, November 20, 2014 by Lakeland Ledger

BEGIN WITH A BASIC NEEDS ANALYSIS

The amount of coverage you may need can depend on many factors including the number of dependents relying on your salary, outstanding debt, future debt, or a future need such as education for your children.    You want to make sure the coverage is adequate to cover these items in the event of an unexpected death.  Along with proper dollar coverage, certain riders may be added to better assist in planning for uncertainties in life.    Once the coverage amount is determined the next step is to decide on buying term versus permanent insurance and what your budget can afford.  Term life insurance is substantially less expensive but the death benefit expires at the end of the term, 5, 10, 20 or 30 years.  Permanent insurance, often referred to as whole life, is more expensive but often provides a cash value and is often fully paid at the end of a period with no further premiums due.  A qualified advisor should provide a comparison of the various of the types of coverage and the related cost of each. (more…)

CPS 4th Quarter Newsletter

Posted on November 7, 2014 in

CPS Q4 2014 Newsletter

Welcome to our Quarterly Newsletter! We hope you find the information useful and enlightening.  This month, we will discuss stable consumption trends, proper estate planning and longevity, and the likelihood of high inflation.

 

Feel free to share this newsletter with interested friends. We thank you for your kind referrals.

By CHAS P. SMITH, CPA/PFS and Derek Oxford

Excerpts Published Thursday, November 6, 2014 by Lakeland Ledger

If your investment pile of assets is not sufficient to replace the income stream of the bread winner in the family then life insurance is an inexpensive way to replace that lost income.    However, the amount of life insurance may not be just to replace your annual salary but also the potential earnings of the non-working spouse who chooses to stay home and care for the children.  In large estates, life insurance is often used to pay for estate taxes.  Each person or family has certain goals in mind where life insurance can play an important role.

HOW DOES LIFE INSURANCE WORK?

Life insurance provides payment at death, but does not provide a benefit for the insured while alive, except peace of mind.    Because life insurance is typically paid for with after tax dollars, benefits received from a policy are usually free of income taxes to the beneficiary.  (more…)

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