Annual Tax Opportunities vs Comprehensive Income Planning
Income InSight is designed for future-focused income planning. As a result, it involves more client financial data. It also involves some modeling assumptions and requires expectations to be made regarding the future. The modeling includes sources of income, portfolio (qualified and non-qualified) information, risk assessment questions, tax data and more to develop a base case for income planning. That information can then be stress-tested under various assumptions for the future. Asset harvesting such as the timing of the Roth conversions can also be modeled for discussion with the client. In total, Income InSight is a comprehensive planning mechanism for those looking to create an income model for their clients in or approaching retirement.
Tax Clarity software is designed to consider current year factual tax data from client tax returns to find the effective marginal tax rate, or tax on the next dollar of income, paid by the client. It provides a more granular data drill-down into the return while allowing for comparative scenarios to be calculated against the base case. Those scenarios can calculate the impact, for example, of current year Roth conversions or harvesting of capital gains, and how those decisions will hit the return in terms of tax consequences and the effective marginal tax rate.
- Focused income planning for the future
- Assessments of income sources (Social Security Timing, OI, SSBI/QBT, pensions, etc.)
- Incorporation of client portfolios (Q, NQ, Roth, JT Ten, etc.)
- Stress test functionality (i.e., long-term care, early death, down market)
- Current year Tax Map
- Account harvesting retirement analysis
- Annual tax assessments
- Simplicity - based on factual tax data inputs
- Drawdown detail of data inputs and outputs
- Comparative scenario analysis
- Identification of marginal tax rates and Medicare thresholds
- Ordinary income and capital gains Tax Maps