The Foundational Financial Plan™

The Foundational Financial Plan™

Today we discuss the idea of a foundational financial plan and explain why it is essential for anyone preparing for retirement or managing long term wealth. This is a comprehensive system that brings together multiple areas of financial life into one coordinated strategy. Without a clear plan, people are often guessing about their future instead of making informed decisions. At Hosler Wealth Management, the plan is broken down into 7 areas: 1. Retirement Income Plan 2. Tax Planning and Roth Conversion 3. Estate, Legacy, and Beneficiary Planning 4. Social Security Strategies 5. Insurance Planning 6. Risk Analysis 7. Investment Plan We start by breaking down the first component, which is a dynamic retirement income plan powered by advanced financial planning software. Tools like Monte Carlo simulations run thousands of scenarios to estimate the probability of success. This allows us to adjust for real world variables like inflation, taxes, and market volatility. This replaces outdated methods like spreadsheets and gives clients clarity when making decisions such as increasing spending or buying a second home. We then move into tax planning and Roth conversion strategies, challenging the traditional belief that tax deferred accounts are always the best option. Future tax rates may be higher and that proactive planning today can help move assets into tax free environments. Strategic use of current tax brackets can improve long term outcomes. Next, we cover estate planning and beneficiary strategies, explaining the importance of avoiding probate, properly titling assets, and ensuring documents like trusts and powers of attorney are in place. We also discuss how new technology and AI tools can review estate documents for errors and gaps, improving efficiency and accuracy. We highlight the importance of proper trust funding and tax advantages like step up in cost basis. Social security planning: thousands of claiming strategies exist and decisions should consider both financial outcomes and personal health factors. Timing and coordination with other income sources are critical. We then address insurance planning, focusing on long-term care and newer asset-based strategies that provide more stability. Life insurance can be a tool for creating tax free income in retirement. Finally, we explain risk analysis and investment planning. Modern tools assign a numerical risk score and align portfolios accordingly. We outline a bucket strategy that separates short term income needs from long-term growth investments, helping clients manage risk while still pursuing returns. Having this full plan in place provides confidence and peace of mind because clients can clearly see their financial future and make informed decisions. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k [https://amzn.to/4msRo2k] ⏱️ Chapters & Timestamps (00:00) Intro (00:21) What a “Real” Financial Plan Should Include (02:46) Why Excel Can’t Plan Your Retirement (03:35) The Power of “What If” Planning (04:22) Can You Actually Spend More in Retirement? (05:22) The Tax Trap That Could Cost You Thousands (06:43) Estate Planning Mistakes That Hurt Families (07:01) The Documents Everyone Needs (But Most Don’t Have) (09:21) How AI Is Changing Estate Planning (09:32) The Most Common (and Costly) Trust Mistake (11:17) Social Security Strategies Nobody Talks About (14:58) Are You Taking the Wrong Amount of Risk? (17:04) Why Planning = Peace of Mind (18:00) How to Get Help from Hosler Wealth Management For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ [https://www.hoslerwm.com/] Contact Our Team:  https://hoslerwm.com/contact-us/ [https://hoslerwm.com/contact-us/] Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ [https://hoslerwm.com/protectingwealthpodcast/] Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/ [https://www.hoslerwm.com/disclosures/] Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved.    Produced by JAG Podcast Productions - www.jagpodcastproductions.com [http://www.jagpodcastproductions.com].  #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

Grandparents, Be Very Careful When Opening Trump Accounts!

In this episode of Protecting and Preserving Wealth, we talk about the new Trump accounts and why grandparents need to be careful before trying to open one for a grandchild. The team is excited about the concept because these accounts could help young people learn about investing early, build long-term wealth, and become more financially aware. But the main warning is clear: grandparents should not rush to open these accounts themselves. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k ⏱️ Chapters & Timestamps (00:00) Intro (00:34) Why Bruce likes the idea of Trump accounts (01:17) Why grandparents need to be careful (02:17) Who can open accounts for children born after January 1, 2025 (03:30) Rules for children born before January 1, 2025 (04:15) Penalty of perjury concerns (06:40) What grandparents should do instead (08:01) Using Trump accounts to start family financial conversations (09:18) Tax planning opportunity with Roth conversions (10:45) Teaching children not to spend the account (12:09) How to contact Hosler Wealth Management   Bruce explains that while grandparents may be eager to help, the proposed rules create a specific order for who can establish a Trump account. For children born on or after January 1, 2025, parents or legal guardians are generally the ones who should open the account. A grandparent may only be able to open one if the child is their dependent or they are the legal guardian. For children born before January 1, 2025, grandparents are even further down the line. A legal guardian, parent, or adult sibling would generally have priority before a grandparent could step in. The concern is that the form may not clearly warn grandparents about what they are certifying. If a grandparent opens the account when someone with higher authority is available, they may be making a statement under penalty of perjury. That is why Bruce urges listeners to wait for clearer IRS guidance before taking action. The practical message is simple. Parents should open the account after July 4, 2026, and grandparents can help by contributing. The team discusses the possibility of contributing up to $5,000 a year and using broad stock market indexes such as the S&P 500 or NASDAQ 100. They also emphasize that the account can create a powerful opportunity for long-term growth. Bruce closes by explaining the tax planning angle. If the account grows until the child turns 18 and then converts into a traditional IRA, there may be a window when the young adult is in a low tax bracket. That could create an opportunity to convert the account to a Roth IRA and let the money grow tax-free for decades. The key is teaching the child to treat the account as retirement money, not spending money. The broader takeaway is that Trump accounts may become a useful wealth-building tool, but families should understand the rules before acting. They should also use the topic as a chance to talk across generations about saving, investing, taxes, and long-term financial planning. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ [https://www.hoslerwm.com/] Contact Our Team:  https://hoslerwm.com/contact-us/ [https://hoslerwm.com/contact-us/] Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ [https://hoslerwm.com/protectingwealthpodcast/] Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/ [https://www.hoslerwm.com/disclosures/] Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved.    Produced by JAG Podcast Productions - www.jagpodcastproductions.com [http://www.jagpodcastproductions.com].  #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

The Widow's Penalty Part 2

In Episode 85 of Protecting and Preserving Wealth, we continue the conversation about the widow’s penalty and how it can affect a surviving spouse after the death of a husband. The key issue is not that the widow’s income necessarily increases. It is that her tax status changes. While married, a couple can file jointly and benefit from wider tax brackets. After the year of death, the surviving spouse usually files as single. That can push the same income into higher tax brackets and create a larger tax burden over the rest of her life. The episode also points out that the surviving spouse may lose deductions tied to the deceased spouse, including the senior deduction discussed under the One Big Beautiful Bill. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k [https://amzn.to/4msRo2k] ⏱️ Chapters & Timestamps (00:00) Welcome + what Part 2 covers (00:27) Why taxes jump after MFJ becomes Single (03:12) RMD timing: ages + year-of-death deadline (05:00) Surviving spouse IRA options (rollover/retitle) (05:50) Under 59½: avoid the 10% penalty (08:02) Successor beneficiary inherited IRA rules (09:30) Avoid the “year 10” tax hit (10:38) IRMAA: Medicare surcharge + two-year delay (12:37) Year-of-death Roth conversion window (14:38) Contact info + wrap-up We also talk about required minimum distributions. If the deceased spouse had reached the required beginning date and had not yet taken the RMD for the year of death, the surviving spouse needs to make sure it is taken by December 31. If that gets missed, there may be a way to avoid the penalty by correcting it under the newer automatic waiver rules, but it can still create extra stress and tax planning issues. One practical strategy is to take RMDs early in the year so this problem is already handled before a death occurs. The episode then turns to IRA options for a surviving spouse. A widow can roll the IRA into her own IRA, treat the IRA as her own, or, in some cases, keep the funds in an inherited IRA. That last option is especially important for younger widows under age 59 and a half. If she moves the account into her own name and takes distributions, she may face the 10% early withdrawal penalty. If she keeps it as an inherited IRA and remains the beneficiary, distributions can avoid that penalty. We also cover successor beneficiary rules. If the husband had inherited an IRA and then dies, the widow may have to continue the existing distribution schedule. That can include the 10 year rule for inherited IRAs. Waiting until the final year to empty the account could create a major taxable event, so spreading distributions over several years may be a better plan. Finally, we look at IRMAA and Roth conversions. A widow may face Medicare premium surcharges if her income crosses certain limits, and those surcharges usually show up on a two year delay. One major planning opportunity may come in the year the spouse dies, because the surviving spouse can still file married filing jointly for that year. That may create a chance to do a large Roth conversion before future years are taxed under single brackets. The message is clear: tax planning after the loss of a spouse is complex, and professional guidance can make a major difference. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ [https://www.hoslerwm.com/] Contact Our Team:  https://hoslerwm.com/contact-us/ [https://hoslerwm.com/contact-us/] Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ [https://hoslerwm.com/protectingwealthpodcast/] Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/ [https://www.hoslerwm.com/disclosures/] Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved.    Produced by JAG Podcast Productions - www.jagpodcastproductions.com [http://www.jagpodcastproductions.com].  #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

The Widow's Penalty: Part 1 of 2

In this episode, we introduce the concept of "the widow’s penalty" and explain why it is one of the most important, yet often overlooked, risks in retirement and estate planning. We focus primarily on taxes, income loss, and preparedness for surviving spouses, who are most often women. We begin by explaining that while couples are alive and filing taxes as married filing jointly, they benefit from significantly wider tax brackets. For example, we discuss how the 24% federal tax bracket allows married couples to earn far more income than single filers before moving into higher tax territory. When one spouse dies, the surviving spouse is forced into single filing status, which can effectively double their tax burden on the same level of income. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k [https://amzn.to/4msRo2k] ⏱️ Chapters & Timestamps (00:00) Intro + What Is the Widow’s Penalty (00:32) Taxes: MFJ vs Single Brackets Explained (03:20) Stats, Blind Spots & Spouse Engagement (06:49) Year-of-Death Planning Window Strategies (08:32) Social Security Loss & IRA Tax Snowball We emphasize that this tax shift often happens at the same time a widow is losing income. Social Security benefits drop from two checks to one, even though the survivor keeps the higher of the two benefits. This reduction in household income frequently pushes widows to withdraw more money from tax-deferred retirement accounts, which increases taxable income further. We explain how this can snowball into higher taxes year after year, accelerating the depletion of retirement assets. We also discuss key statistics that reinforce why this planning matters. Most spousal heirs are women, and widows often outlive their husbands by four to twelve years. Despite this, many women defer long-term financial decisions during marriage, and nearly all widows later regret not being more involved earlier. We stress the importance of both spouses understanding what they own, why they own it, and how their plan is designed to answer the most important question: “Am I going to be okay?” We explore planning strategies that can reduce the widow’s penalty, including Roth IRA conversions while both spouses are alive and in favorable tax brackets. We explain how tax-free Roth income can replace lost Social Security or pension income without increasing taxes. We also highlight planning opportunities in the year of death, such as still being able to file jointly, performing large Roth conversions, and stacking deductions through donor-advised funds. Finally, we discuss the role of life insurance and chronic care riders. We explain that life insurance death benefits are tax-free, do not impact Social Security taxation, and can provide critical income replacement. Chronic care riders can give surviving spouses independence and security by providing funds for long-term care without burdening children or draining other assets. We conclude by reinforcing that proactive, holistic planning is essential to protecting surviving spouses from financial stress and uncertainty. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ [https://www.hoslerwm.com/] Contact Our Team:  https://hoslerwm.com/contact-us/ [https://hoslerwm.com/contact-us/] Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ [https://hoslerwm.com/protectingwealthpodcast/] Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/ [https://www.hoslerwm.com/disclosures/] Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved.    Produced by JAG Podcast Productions - www.jagpodcastproductions.com [http://www.jagpodcastproductions.com].  #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

Joint Accounts in Estate Planning: Key Mistakes Families Make

In this episode of Protecting & Preserving Wealth, we focus on estate planning—specifically, how often it is overlooked or improperly handled, and how good intentions can still lead to serious financial, tax, and family consequences. We walk through a real-life case involving a family that believed they had things mostly in order, only to discover after a parent’s death that the lack of proper planning created irreversible problems. 📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://amzn.to/4msRo2k [https://amzn.to/4msRo2k] ⏱️ Chapters & Timestamps (00:00) Intro (01:00) Real-life family estate planning scenario (02:15) Joint tenancy and unintended disinheritance (03:50) Gift tax and family conflict risks (04:45) Step-up in basis and tax consequences explained (06:30) Million-dollar tax mistake breakdown (09:40) How common estate planning failures really are (11:00) Outdated plans and digital asset issues (12:00) How to contact Hosler Wealth Management We discuss a situation where a mother passed away without a will or trust, meaning she died intestate. One of her largest assets was a brokerage account held in joint tenancy with one of her children. While the account was likely structured this way to make things easier and avoid probate, the result was that the surviving joint owner automatically inherited the account outright. This unintentionally disinherited the other siblings, regardless of the mother’s likely wishes. We explain how this setup not only caused family tension, but also created significant tax consequences. Because the account was jointly owned, only half of the assets received a step-up in cost basis at death. The other half retained a very low original cost basis. With the stock having grown dramatically in value, this resulted in millions of dollars of unrealized gains and roughly one million dollars in avoidable capital gains taxes. We emphasize that if the account had been held solely in the mother’s name or inside a revocable living trust, the entire balance would have received a full step-up in basis, potentially eliminating capital gains taxes altogether. We also explain the gift tax issue that arises when the surviving sibling tries to “do the right thing” and distribute assets to the others. Those gifts may require filing gift tax returns and using up part of her lifetime exemption, potentially harming her own long-term estate plan. Beyond taxes, we highlight how these situations create confusion, resentment, and conflict among family members that can last for years. We zoom out to show how common this problem really is. Roughly 60% of Americans have no estate plan at all, and nearly 70% of existing plans are outdated. We also discuss newer issues like digital assets, which many older estate plans fail to address. Estate planning is not a one-time task—it must be reviewed and updated as laws, technology, and family circumstances change. Our core message is simple: estate planning is not about perfection, it’s about clarity. A proactive review with a trusted advisor can prevent massive tax bills and protect family harmony. For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit us online at https://www.hoslerwm.com/ [https://www.hoslerwm.com/] Contact Our Team:  https://hoslerwm.com/contact-us/ [https://hoslerwm.com/contact-us/] Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342. For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/ [https://hoslerwm.com/protectingwealthpodcast/] Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/ [https://www.hoslerwm.com/disclosures/] Copyright © 2022-2026 Hosler Wealth Management | All Rights Reserved.    Produced by JAG Podcast Productions - www.jagpodcastproductions.com [http://www.jagpodcastproductions.com].  #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler