Scott Thomas, ChFC®, CAP®, CKA®, RICP®

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511 N. Maitland Avenue
Maitland, FL 32751

Phone:

407-644-9411

Blog

One Time ROTH Contribution

Let's look at the power for time and earnings with and without taxes applied.Taxable account vereses ROTH IRA one time contribution over time. 
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True Fiduciary Means What?

I read a great article from Mindy Diamond of Diamond Consultants recently and she seems to really get the bigger picture of "Fiduciary World".  Many in the industry are trying to simply push a clean transparent product and say "I am a fiduciary."Mindy states there are five key characteristics:1) "The Ability to Serve Clients Needs First"2) "A Higher Level of Transparency"3) "A Clearer Payment Structure"4) "The Ability to Think and Act S
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Strategy to Unwind Non Qualified Annuity Efficiently

Strategy to Unwind Non Qualified Annuity EfficientlySo you bought an annuity many years ago and it has grown a lot maybe doubled or tripled in size and now creates a real tax problem if you cash it out.  Why? Because annuity will be taxed first on the last money earned.  Taxes are ordinary income rates not the lower capital gains rates. Another problem if you simply cash it out is the lump sum often pushes individual or a couple into higher income tax bracket and for those retired ofte
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Inverted Yield Curve

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Questions To Ask

Questions To AskQuestions to Ask a Financial Planner: Do you do comprehensive financial planning?Do you work for an insurance company, investment company, or a broker-dealer that manufactures insurance or investment products?Are you compensated by fees, commissions, or both? If fee, do you charge a flat fee or an hourly rate? If commission, does that offset the fees?What is your process and how many times will we meet?How many clients do you have?Do you think it is good to pay off my house by re
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Benefits of Working With A RICP

Benefits of working with an RICP®: Build a comprehensive retirement income plan that addresses income needs and other financial goals Choose your optimal retirement age Plan for the risks faced in retirement like the uncertainties of life expectancy, inflation, health status, and investment climate Make claiming decisions that maximize Social Security benefits Obtain health insurance coverage to supplement Medicare or provide coverage prior to Medicare eligibility Prepare for late-life need
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What Does Retirement Income Certified Professional Entail?

Required courses HS 353 Retirement Income Process, Strategies & Solutions: Upon completion of this course, the student will be able to: Understand the steps in creating an effective retirement income planIdentify retirement income needs, objectives, and goals by evaluating the client’s current situationDetermine how to choose the appropriate retirement income strategy for your clientsEvaluate income tax, estate issues, retirement risks, and other threats to an effective retirement inco
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New Rates From VA for 2019 Aid & Attendance

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Charitable Deduction

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Bunching Your Itemized Deductions

Bunching Itemized Deductions for Tax PlanningFacts indicate there will be fewer taxpayers itemizing their taxes due to larger standard deduction amount and other changes. About 33% itemized in 2017 and in 2018 forward only expected to be 16%.Many taxpayers will fall a little under the Standard Deduction aka SD amounts from their itemized deductions (mortgage interest + real estate & state taxes (limited $10K) +charitable gifts) so Single SD= $12,000 and married SD= $24,000.  If your age
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Choosing a Beneficiary for Your IRA or 401K

Choosing a Beneficiary for Your IRA or 401(k) Selecting beneficiaries for retirement benefits is different from choosing beneficiaries for other assets such as life insurance. With retirement benefits, you need to know the impact of income tax and estate tax laws in order to select the right beneficiaries. Although taxes shouldn't be the sole determining factor in naming your beneficiaries, ignoring the impact of taxes could lead you to make an incorrect choice. In addition, if you're m
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Marriage and Previous Credit Issues

I'm marrying someone with bad credit. How will this affect me? Answer: You are not responsible for your future spouse's bad credit or debt, unless you choose to take it on by getting a loan together to pay off the debt. However, your future spouse's credit problems can prevent you from getting credit as a couple after you're married. Even if you've had spotless credit, you may be turned down for credit cards or loans that you apply for together if your spouse has had seriou
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Merging Your Money When You Marry

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Charitable Silo Strategy for IRA Giving

Case Study of the Charitable SiloMarylou is 72 years young and generous person with roughly $800,000 in Individual Retirement Account. In addition she has two monthly income sources: State Pension $2,000 and Social Security $2,000.Currently the Required Minimum Distribution from IRA is $31,250 for 2018. Marylou usually gives $8,000 to $10,000 a year to her favorite charity. Due to higher standard deduction and being debt free and modest taxes she would not itemize or get a deduction for charitab
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Caring for Your Aging Parents

Caring for Your Aging Parents Caring for your aging parents is something you hope you can handle when the time comes, but it's the last thing you want to think about. Whether the time is now or somewhere down the road, there are steps that you can take to make your life (and theirs) a little easier. Some people live their entire lives with little or no assistance from family and friends, but today Americans are living longer than ever before. It's always better to be prepared. Mom? Dad
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What is Charitable Silo and How It Benefits You?

“Charitable Silo” May Be Perfectly Suited For Your Giving The Charitable Silo is designed for the generous individual that has reached the age 70 ½ and now facing Required Minimum Distributions from large Individual Retirement Account. This is not a donor advised fund.Maybe you have heard of Qualified Charitable Distributions from IRA and the advantages of tax neutral and meet the needs of RMD or required minimum distribution from IRA.  The Charitable Silo is unique
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Nonprofit Cash Mgt 2.0

Nonprofit Cash Management 2.0Cash Management 1.0 is covering the basics of alignment of income to expenses and tracking and mapping it. Budget basics are core to all responsible businesses.In 2.0 you have accumulated a cash nest egg with excess and now need to think about improving the return on your cash. Can you bypass the bank and go directly to government for fully back notes and bonds and do it efficiently and practically? It depends on few factors. First, are you at place where cash exceed
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Qualified Charitable Distribution From IRA-Not Always Easy

Not All IRA Custodians are Friendly About Qualified Charitable DistributionsThose individuals age 70 ½ and old can give directly from IRA to Qualified Charity and it counts towards their required minimum distribution aka RMD and it will not be counted in taxable income.   This can be significant strategy especially with higher Standard Deductions when calculating itemizing tax potential.  Couple has $5,000 in property taxes and likes to give $5,000 to annual to charity. The
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Private Foundation Quick Audit

Private Foundation Quick AuditRecently I was driving and noticed a new model Supercar with crazy over the top performance.  Inside was a very mature woman and it’s highly unlikely she would ever drive the car as fast as her age.  I then thought about another conversation with a family regarding their Private Foundation. Between their bankers, trustees, legal and accounting fees they consume about 2.5% of the total corpus each year.  They only give to qualified charities and
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The Other 92%

The Other 92%Did you know that only about 8% of assets in the United States is cash? So the other 92% is what? Not cash or stocks, bonds, real estate, annuities, mutual funds, IRA, 401K, life insurance, business interest.The picture here depicts that vast majority of nonprofits all gathered around the cash fishing hole and yet only 8% or less of assets reside here.  Cash can mean checking. savings, money markets accounts.The Other 92% presents unique opportunites and challenges that we love
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Did You Know Your Charitable Structure Could Be Changed?

You set up a community foundation account years ago and the family moved and can rollover from one community foundation to another community foundation or a donor advised fund.  Or you set up and donor advised fund or multiple donor advised funds and now would like to consolidate or move to better service model or lower cost platform.  You can move a Donor Advised Fund to another Donor Advised Fund or roll to community foundation.  If you set up private foundation you usually can
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Four Types of Pensions

Four Types of PensionsOrigin of pension1325–75; Middle English (< Old French pensïon) < Latin pēnsiōn- (stem of pēnsiō) a weighing out, hence, a paying out, installment paying, equivalent to pēns(us) (past participle of pendere to weigh out, pay by weight, equivalent to pend- verb stem + -tus past participle suffix, with dt > s) + -iōnFirst type is
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Two Hero's In Philanthropy Narrative

Two Hero’s In Philanthropy NarrativeScott Thomas, Chartered Advisor in PhilanthropyThere are two heroes in the story of philanthropy and all the other roles support the two heroes.  First hero is the “person or cause being served. “ Not the nonprofit organization or its staff and administration.  The second hero is the funder also known as donor and or volunteer.Nonprofit is at best pass through entity for funding and facilitating the services the persons or cause bei
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Universities and Hospitals tend to get the largest bequests. Why?

Several reasonable conclusions but not a single reason alone, rather overall stewardship of organization and its donor base.Applying excellence to organizations finances- proper accounting and best practices including cash management and investment committees.  Another area is systems around the donor communication and reporting.  Of course the emotional payback of business success or given another chance at life due to great health experience.  Some say the biggest reason is cons
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Want to Do Some Really Kind Planning For Your Family?

Think of deferred income tools like IRA and non-qualified annuities at the time of your death as Cancer.  Why?  Here is the painful truth about “income with respect to decedent” or IRD as tax people call it.  While the death taxes are huge now millions so few have to plan for death taxes anymore, however many have real issues with IRD.Here is problem illustrated and one possible solution.  Please seek out professional advice on this complex subject.Eileen buys $50
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Cut Out the Middle Man or Disintermediation

Disintermediation, in finance, is the withdrawal of funds from bank, to invest them directly. Generally, disintermediation is the process of removing middleman or intermediary from future transactions. Disintermediation is usually done to invest in instruments yielding a higher return. Buy US Treasury direct instead of getting lower rates on money market funds and savings.Example: $2,000,000 in cash invested with local banker and earns .15% the banks rate for cash savings and money market a
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What is a QLAC? Could This Strategy Work for You?

This a type of deferred income annuity (DIA) allowing a contract holder to purchase future lifetime income with a portion of their qualified account savings (401k, IRA, 403b etc.). The contract holder can exclude the value of that annuity from their annual required minimum distributions (RMD) calculation.Think of it as carving out up to 25% of IRA value or max $125,000 for an individual and they could elect to defer to any age up to age 85 and not required to include this money in the RMD calcul
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Have Your Advisors Told You About New Tax Law and Capital Gains?

Have Your Advisors Told You About New Tax Law and Capital Gains? It is possible for many to harvest some capital gains in 2018 at ZERO Tax.  The calculations did not work like this in 2017.  It is possible for individual to sell as much as $52,000 and pay zero tax.  It is possible for married couple to sell as much as $103,000 and pay zero tax.  Amounts above would start to be taxed at 15% for only the portion above the free limits. Higher levels taxed 20% plus 3.8%.&nbs
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Naming Charity as Beneficiary On IRA

In general, naming a charity as the primary beneficiary will not affect required distributions to you during your lifetime. However, after your death, having a charity named with other beneficiaries on the same asset could affect the tax-deferral possibilities of the noncharitable beneficiaries, depending on how soon after your death the charity receives its share of the benefits.One possible solution is to carve out the amount or percentage of the IRA to a separated account number and name 100%
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Quick Quiz: Private Foundation aka PF & Donor Advised Fund in 2018

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Why Your Nonprofit Board Needs A Fiduciary Advisor

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Check the background of this financial professional on FINRA's BrokerCheck