“Trust is earned, not given and our team works everyday to earn our client’s trust.”

Quarterly Considerations 12/31/2014

Plan Sponsors

A Way to Go – The good news…average 401(k) balances are up 80% since the downturn of 2008 to $101,650. The bad news…using the 4% rule for safe withdrawals, a balance of $101,650 will provide just over $4,000 per year in retirement.

DB Annual Update – Falling interest rates and new, lower mortality rates combined to drop pension funding levels by 9% in 2014, according to Towers Watson. 2014 also marked a big year of pension de-risking.

Non-Profit Organizations

Steady Tuition – Universities are forecasting that fiscal 2015 will be their weakest year of net tuition revenue growth in a decade. Nearly 50% of public universities and 40% of private institutions are unable to increase revenue at or above Moody’s 2% inflation rate.

Private Clients

Wealth Management Check-Up – Do you need help arranging your financial affairs in the New Year? Are you aware of the new contribution limits for retirement plans, changes to estate and tax laws, and comfortable with your life and P&C insurance coverages? These are just a few of the items we address in our annual comprehensive “Financial Planning Checklist & Considerations.” Please contact MPS LORIA for your copy of this important and useful document.

On a Roll(over) – A tightening of the “one-IRA rollover-every-12-months rule” takes effect in 2015. If you have multiple IRAs, it is important to understand the new regulations as there are some notable exceptions and stiff penalties. Please contact MPS LORIA to discuss your specific situation.

Executor Follies – An executor of a large estate distributed assets to heirs and left the estate with insufficient funds to fully pay what it owed to the IRS. This action makes the executor personally liable for depleting the estate and the courts upheld an IRS lien against other property the executor owned (Stiles, D.C., Pa.). If you are named an executor for someone, it is important to know your duties and responsibilities. Please contact MPS LORIA for a copy of our “Executor Checklist” to ensure you are well prepared.

Read more…

Contact Us