4 minute read
PUBLISHER’S LETTER
from Heights Magazine
Publisher’s letter The Great “Wild West”
s a Texan, I enjoy the “Wild West” mentality that leaves us devoid of so many rules and regulations that can stifle business growth. However, that “can do, will do” entrepreneurial business-friendly climate has its drawbacks. Most of us found out the hard way (with the exception of a few supposed leaders) while shivering in the cold and thirsty. Many were not that fortunate.
The low and no state income taxes have fueled growth and prosperity in Texas as we see from our record real estate sales year after year. People and companies have been relocating to Houston and the Lone Star State in record numbers for decades due to the job opportunities, relatively low cost of living, and no state income tax. Texas’s most recent prize catch was attracting the forward-thinking entrepreneur, Elon Musk of Tesla fame.
As Chinese culture taught us, with the “yin” goes the “yang”, as the world watched the steep price of a laissez-faire attitude toward regulation. It appears some things need regulation and independent accountability. Not agencies handpicked by a Governor but truly independent regulatory oversight. That is not what we have with our PUC (Public Utility Commission ) or ERCOT (Electric Reliability Council Of Texas). Many of the people running those groups have resigned as the fall guys. However, the blame is squarely on our state government for not winterizing our power plants. There was plenty of notice that this could happen and being on our own separate grid backfired as El Paso who is on a national power grid had zero power outages. Some 500,000 Texans, still weeks later as of this writing, are without drinkable water. Some 30 were left dead here and over 80 in our state capitol.
This lack of regulation, low taxes, and nozoning laws has served us well in most instances, with some notable exceptions. While the “wild west” mentality has spurred our growth it has also created communities with strip clubs, churches, and schools in the same neighborhood. Now we see the problems of short-sightedness and budget shortfalls that affect many key areas including police, fire, and schools. Oh and the power grid.
LOUISIANA CRAWFISH SEASON IS HERE!
4302 RICHMOND AVE HOUSTON, TX 77027
WORTHWHILE CONVERSATIONS
Chairman & CEO, J. Harold Williams, CPA/PFS, CFP®, discusses the importance of a wellcoordinated retirement plan to navigate the rules of Required Minimum Distributions and maximize after-tax cash flow with Wealth Advisor, Lantz Bowman, CFP® .
“MAXIMUM CONFUSION?” – WHAT ARE WE TALKING ABOUT HERE?
The IRS specifies Required Minimum Distributions, or “RMDs”, that you must withdraw from IRAs, 401(k)s, and other retirement accounts at certain ages. People seem to know these rules exist and that penalties for mistakes are hefty, but most don’t know the details. In 50 years of talking with families, we’ve observed that many people worry significantly about this area of their planning.
WHAT KIND OF DETAILS?
We hear many questions…I’m turning 72 (the new updated magic age); When must I take my first required minimum distribution? Should I delay my first distribution to year 2, as allowed by the rules? Do I have to wait until the day I’m actually 72 to start my distributions? Can I wait until I’m 72 to take distributions from an inherited IRA account? I’m still working past 72 and in a 401(k) plan – do I have to withdraw money from it? Can I roll over my RMD amount into a Roth IRA after paying the required taxes?
WOW, THIS IS STARTING TO SOUND LIKE A “MINEFIELD”…
It CAN be complicated. The key is to do the necessary homework, because these RMDs are just one piece of the retirement puzzle, and should be part of a well-coordinated plan. Our Wealth Planning Committee is a group of attorneys, CPAs, MBAs, and other professionals who meet regularly. They discuss and analyze how to meet RMDs while maximizing a family’s after-tax cash flow. Committee Chairman, Phillip Hamman, CFA, CFP®, likes to say, “The RMD rules ARE complicated, but they offer excellent planning opportunities.” Families unable to invest the time for homework should seek help.
ANYTHING TO WATCH OUT FOR?
Most important: Seek independent and unbiased advice from an advisor obligated to act as your fiduciary, rather than someone with an agenda to sell financial products. This fiduciary business model is what we follow at Linscomb & Williams. We are ready to sit down for a nocost, no-obligation, exploratory conversation either virtually or at our office. Imagine the peace of mind from eliminating confusion about this and other important areas of your finances.
For more information, or a copy of our Form ADV, Part II, with all of our disclosures, call Grant Williams at 713 840 1000 or visit www.linscomb-williams.com.
