Certified Financial Group

by Kevin Fritz

“It’s not what you make, it’s what you keep.”

There could not be more sage advice for managing your money, especially in retirement. Gary Abely, a Certified Financial Planner at Certified Financial Group in Altamonte Springs, not only wants to keep your nest egg intact, he also wants you to avoid extra taxes and fees as you live out the next phase of life.

Certified Financial Group, now in its 47th year of serving our community, is home to 16 Certified Financial Planners under one roof delivering retirement planning and investment management. Gary, a financial planning professional since 1990, says there are prudent ways to reduce taxes in retirement through proven tax-efficient distribution strategies.

A major topic of discussion as of late, especially with record numbers entering retirement, is IRMAA (Income-Related Monthly Adjustment Amount), which is extra money paid through added Medicare fees by the wealthiest retirees. The fees were established in 2003 as part of the Medicare Modernization Act to better fund Medicare and keep it solvent.

“The IRMAA cliff can hit pretty hard,” says Gary, noting the cliff moniker comes from the fact that having your annual retirement income rise just one dollar over a set threshold triggers IRMAA, which increases your monthly Medicare premium on Part B and, if applicable, Part D. You pay more for the same benefits based on your modified adjusted gross income.

The key to staying away from the added fees is being cautious when accessing retirement savings. Taking money out for a new car or air-conditioning unit, for example, can not only trigger a tax payment on the withdrawal but could also put you over the IRMAA threshold.

“Plan your big-ticket items,” advises Gary. “Don’t bury yourself in a higher bracket.”

In essence, the best way to keep more of what you make is through careful tax planning. In addition, asset location (selecting which account to hold bonds, cash, and stock mutual funds) as well as an intentional retirement withdrawal strategy will go a long way to keeping more of your money. Check with a Certified Financial Planner, and Certified Financial Group is the best place to find one.