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Estate Planning in Florida requires certain documentation. There are a handful of things that need to be sorted out before you can set things in stone to ensure that everything goes smoothly, but it can be a lot for a single person to keep track of, and not everyone may understand the terminology involved. That’s why Maggi Tax is here to let you know what documents are needed for estate planning and an explanation of what they are!

What Is Estate Planning? A Brief Summary

Things can happen that may put us in a situation where we’re unable to communicate our intentions when it comes to our assets or our own well-being. Whether it be from a sudden disability, an inability to speak freely, or the act of passing, there are a number of reasons that could cause you to relinquish control of your say in things. Estate planning prepares you for these outcomes by setting your wishes in place should any of these things occur.

Required Documents For Estate Planning

Estate planning involves a few types of documentation to ensure the results that you desire. Each of these papers covers your rights in their corresponding fields, and you can enjoy peace of mind by getting it all down in writing. Just keep in mind that it’s important to avoid common estate planning mistakes since you won’t be able to fix them after it’s too late.

Last Will And Testament

This is often seen as one of the most important documents you can sign. Your last will and testament will make sure that your assets go to the people you want them to go to as stated. This can also be used to designate specific people to be the guardian of your minor children. Without this document, there’s no guarantee that your wishes will be fulfilled after you pass.

Living Trust

How can you make sure that your possessions will be distributed how you wish? You can personally choose someone you know to be the trustee to handle all of your assets for you after you pass to give you greater peace of mind. You are also able to change who you designate to be your trustee as many times as you’d like for as long as you’re alive.

Power Of Attorney

If you are ever in a situation where you are unable to make important decisions yourself concerning your property, financial matters, and other assets, a power of attorney (POA) can make those decisions on your behalf. Of course, you would want someone that you can absolutely trust to handle such important matters. This document will establish who will be your POA should you ever need one.

Health Care Directives

Setting up your health care directives is almost like having a power of attorney but for medical concerns. You can state what types of treatment you do and do not want, what surgeries you approve of, whether or not you would like to donate your organs, and so on. Since this concerns something as personal as your own body, it’s important to have such matters clearly written.

Hire Maggi Tax For Estate Planning Services!

Need more experienced guidance with your estate planning? Call Maggi Tax at (727) 799-1701 to schedule a complimentary consultation before utilizing our professional estate planning services! We’ll make sure that your documents accurately state your wishes so you can rest easy.

Having a 401K can be a real lifesaver when it comes time to retire, but managing those funds isn’t always easy. Whether you’re facing one of life’s unexpected hardships or you’re choosing to make a change of your own volition, you may be considering rolling over your retirement fund into a new account. If it’s your first time, you might have a lot of questions. The financial experts at Maggi Tax will fill you in on everything you need to know about rolling over your 401K!

Why Would You Want To Roll Over Your 401K?

Oftentimes, people need to manage their retirement funds when they change professions or become unemployed. While keeping your old 401K with your previous employer is one of the many options you can choose when leaving a job, you might want to look into rolling it over instead just because of the potential benefits that can come from it. In fact, these benefits are why people choose to roll over their 401K even if their job status doesn’t change. Some of these perks relate to taxes or increased contributions. Whatever your reason may be, it’s important to know all of your options.

An Overview Of Your Rollover Choices

Your two options for rolling over your 401K include transferring it over to your newer 401K with your current employer or placing it into an IRA account. Each has its pros and cons, it’s all up to what your plans are and what’s easier for you!

Transferring Between 401Ks

One of the main reasons why you may want to simply transfer your old 401K to the one provided by your current employer is for convenience. After everything’s been processed, all you would need to do is carry on per usual as you did with your previous job. This is especially recommended if your current employer happens to offer a better contribution plan than what you had before. The only downside is that you don’t have direct control over the funds and there’s a penalty for pulling out your money early, but most people don’t mind these conditions.

Utilizing An IRA Account

Some people might find IRAs more attractive just based on the idea of having full control over your contributions. And if you look into Roth IRAs, your contributions may even be tax-free. Either way, managing an IRA account takes a lot of discipline since you would need to keep track of the investments yourself and stay consistent with your deposits. This can take up a lot of anyone’s time which is why it’s not the most popular choice.

Some Things To Keep In Mind

When rolling over your 401K, there are a few things you should be aware of to make sure things go smoothly. The most important, time-sensitive piece of advice is that you typically only have 60 days to redistribute your funds once you receive them. Also, it’s worth it to pay close attention to the specific requirements of each institution that you’re connecting with as one minor slip-up can cause a major setback. And lastly, you should inform yourself of the current IRS limits for retirement fund contributions.

Need Help With 401K Rollover Management? Call Maggi Tax!

Keeping track of your 401K can be overwhelming especially if you’re not quite sure of what to do. If you want everything to go smoothly to ensure a relaxing and easygoing retirement, call Maggi Tax today at (727) 799-1701 to schedule a complimentary consultation for our 401K rollover management services!

Have you thought about what will happen to your wealth and possessions after you pass? Almost everyone considers this at some point in their lives, but not many of them know the right way to go about it. Even if you have nothing to give, how can you start investing in the future? Don’t worry, the professional financial advisors at Maggi Tax are here to teach you about legacy planning and estate planning as two of the most effective ways to secure your assets and how you can get started!

Estate Planning: Distributing Physical Assets

When most people think about assigning their assets to various relatives and friends after death, the first thing that comes to mind is a last will and testament. This is a form of estate planning which covers all of your physical properties and wealth. This includes your home, money, and other personal items that you wish to pass down. This is the most common concept that people imagine in this scenario because it’s fairly simple to carry out. All it takes is the right legal paperwork and everything is taken care of from there.

Don’t Have Enough Wealth To Give Out? It’s Not Too Late To Start Investing!

Everyone wants to be able to have something to give when the time comes, but not everyone plans ahead or has the economic means to make an impact. But with professional financial assistance in estate planning, you can get on the right track and have a collection of funds to distribute!

Legacy Planning: Carrying On Your Ambitions

Estate planning may sound like the only type of plan that you’ll need as it already covers what’s most important, but you shouldn’t completely rule out the idea of legacy planning if you want to make sure that your intentions are carried through. While estate planning does take care of your assets, legacy planning has more to do with your morals and ideals. You can think of it as a way for your spirit to carry on through others by assigning responsibilities, whether it be the task of taking care of family members or being active in charity organizations.

Which One Is Better For Me?

Rather than thinking about whether estate or legacy planning is better for you, it helps to understand that these two concepts often work in tandem with one another. Most people are content with simply distributing property and funds through estate planning which is a great way to make sure that everything you own ends up in the right hands. However, legacy planning has to do with how your funds are used or distributed so that your ideals are carried on. In a way, legacy planning uses estate planning as a foundation. It takes the funds that you have established in your estate plan and uses them to fulfill the intentions stated in your legacy plan.

Start Planning With Maggi Tax!

Hiring an estate planner is essential in making sure that you have assets to pass down when the time comes. For expert financial advice in Florida, call Maggi Tax at (727) 799-1701 to schedule a complimentary consultation! We want to make you feel at ease by helping you invest enough funds to assist the ones you care about in the future.

In response to the rapid increase in the cost of living due to inflation, the IRS has decided to greatly expand the limit of the contributions you can make toward your retirement funds. Since inflation is here to stay, many people are worried about whether or not their savings will be enough to live off of by the time they need to use them in the future. By allowing you to invest more, you are able to better compensate for these higher costs during retirement. But what exactly are these new IRS limits for 2023? Maggi Tax has everything you need to know right here.

The New Limit For Your 401K

For employment-based 401K retirement funds, the increase is quite generous. Just last year, employees under 50 years of age had a limit of $20,500 while employees over 50 years old had a limit of $27,000. For the 2023 tax year, the IRS increased this limit to $22,500 for those under 50 and $30,000 for anyone over. To be more technical, that’s a spike of $2,500 and $3,000 respectively. When planning for retirement, every bit counts which is why people who are willing to contribute more are ecstatic to hear this news. But what if you have a different type of retirement fund than a 401K? Don’t worry, you weren’t forgotten.

The New Limit For IRAs and Roth IRAs

Whether you have Roth IRA funds or a traditional IRA account, all types are subject to the 2023 IRS increase. Just last year, the maximum was $6,000 for people under 50 and $7,000 for those over 50. Although not as significant as the 401K increase, the IRS has allowed an additional $500 to be added to the maximum amount of contributions for every account. That means new limits of $6,500 and $7,500 respectively. Regardless, this is still great news for those looking to donate more financial support to their future selves. A little-known fact is that you can actually have multiple retirement funds at the same time. But which one should you prioritize in response to these new limits? It may be worth it to review the differences between a 401K and a Roth IRA.

What Should I Do With This Information?

To get a better idea of the situation, the current inflation rate is around 6%. You may have noticed some of your favorite snack foods going up in price, or your grocery store totals may have been surprising you the last few trips. What can you do in response? If you have a 401K, you may want to take advantage of the recent increase. If your employer is matching your contributions, then you can capitalize on all that free money! Alternatively, you can just continue focusing on your Roth IRA for tax-free withdrawals as a sort of backup plan in case you need a bit of financial help before you reach the age of 59 ½. For the best advice, it’s always a good idea to visit your trusted financial advisor.

Schedule Your Free Consultation With Maggi Tax!

If you’re not sure what you should be doing with your retirement funds or need help adjusting your investments in response to inflation, contact Maggi Tax today at (727) 799-1701 to schedule your free consultation! We’ll help guide you and set you on the right track for healthy finances that will help you in the future.

It was all over the news, the Silicon Valley Bank (SVB) suffered a major collapse resulting in one of the largest bank failures in the history of the United States. That statement alone is enough to get anyone to rush over to the nearest ATM and pull out everything they have, but is the situation really as bad as it seems? The caring advisors at Maggi Tax are here to help you make sense of everything and teach you what the Silicon Valley Bank collapse could mean for the economy.

What Is SVB And Why Did It Collapse?

The SVB has been serving for roughly 30 years with little sign of slowing down. It had 17 branches with over 9 thousand business accounts including start-up ventures. By December 2022, not too long before the time of its collapse on March 10 of 2023, the bank had over $200 billion in assets. But if it was holding so much money under its roof, what caused it to go under? Some would say that it was a terrible combination of paranoia and wrong decisions.

Beginning During the Pandemic

The scare of the 2020 pandemic caused a large spike in deposits at SVB. The potential consequences may not have seemed so obvious back then, but banks were struggling to keep up with matching the amount that they could give back to their borrowers. The following year, the rate of deposits increased even more. Eventually, SVB made a decision regarding the money that they were unable to lend out.

Their Investment In Securities

The SVB decided to put money into U.S. Treasury securities that were designed to be a safe investment. However, interest rates shot up consistently during the past couple of years to the point where those “safe” investments plummeted in value. The bank saw a loss of $1.8 billion dollars, and as you can imagine, more of their clients started pulling from their accounts out of fear. The rest is history.

How The FDIC Took Care OF It

Thankfully, not all hope is lost for those who had accounts with SVB. The Federal Deposit Insurance Corporation (FDIC) took over the bank in just a matter of days and renamed the franchise the Deposit Insurance National Bank of Santa Clara. With this new ownership, assets are more or less safe, but that depends on what your personal account looks like. Any account with assets under $250,000 is completely insured. However, over 9,000 of SVB’s clientele involved businesses both large and start-up-sized. Many of these businesses held accounts over that limit, and so they’ll be given a “Receiver’s Certificate” by the FDIC to be used as a sort of token for getting a portion of their uninsured money back at a later time.

Should I Be Worried For The Future?

This whole occurrence may have dominated headlines for a good couple of days, but in reality, the SVB only accounted for less than one percent of all banking assets in the United States. Their failure is unlikely to spread to other banks and isn’t showing any signs of greatly affecting the country’s overall economy. Since the previous major collapse in 2008, most banks have accounted for such losses to happen again. SVB was just an odd case.

Need Help With Your Investments? Call Maggi Tax!

You could say that this whole ordeal was partly due to an investment gone wrong. If you don’t want the same thing happening to you, call Maggi Tax today at (727) 799-1701 to ask about our investment planning services! We will give you advice based on your personal needs while accounting for potential risks so you can invest safely.

The short answer is no, 401Ks are generally protected from instances of bankruptcy. You have certain laws to thank for that, and it helps to live in a state that supports these acts like Florida (among many others). But how is your retirement fund protected, are there any exceptions, and what can you do in the face of bankruptcy? Maggi Tax has everything you need to know.

The Employee Retirement Income Security Act

Also known as ERISA, this act ensures that your 401K, as well as many other types of retirement funds, are considered exempt. Should you ever need to file a bankruptcy, you are not obligated to include your 401K whether you proceed with a Chapter 7 or Chapter 13 bankruptcy. To be more specific, creditors looking to collect won’t be able to touch your retirement savings under Chapter 7, and it won’t even be seen as a viable asset under Chapter 13. But don’t get your hopes up too high just yet. Despite ERISA, there are certain exceptions to the rule that could cause you to lose your 401K regardless.

Exceptions to ERISA Protection

Under certain circumstances, your retirement account may still be accessed. Some of these reasons may feel out of your control, such as having to give up a percentage of your 401K to a spouse or dependent under a qualified domestic relations order which can arise from instances of divorce. Other uncommon stipulations include owing federal income tax or having unpaid fines or penalties due to federal crimes. But as long as you’re staying on top of your taxes and you’re not a criminal who’s facing charges, you likely have nothing to worry about.

How Do Bankruptcies Happen In the First Place?

Most of the time, improper or irresponsible handling of finances can be enough to file for bankruptcy. Imagine having too many bills or having a great deal of borrowed money to pay back. Those who are barely scraping by might be unfortunate enough to lose their job or face a large decrease in their income, making it impossible to keep up with minimum payments. Sometimes, so much as a hefty medical bill or an unfortunate accident resulting in costly repairs can be enough to tip the scale. This is why proper income planning is important, and sticking to it is even more crucial. With the right advisory, you could be paying your bills while keeping a healthy retirement fund.

Ways To Protect Your 401K

When people feel under pressure, they may be tempted to pull from their retirement fund early to put towards the money they owe. Doing so much as paying credit card debt with retirement funds can throw off your total earnings since 401Ks and other retirement accounts are designed to compound over time depending on the amount currently in your savings. This should only be considered as a last resort, if at all. The best thing you can do is to speak with a financial advisor for expert guidance in the right direction.

Need Financial Guidance? Contact Maggi Tax Today!

Planning for your retirement while sorting out your finances can be tricky, but Maggi Tax is here to help! Call (727) 799-1701 to schedule a complimentary consultation and we’ll get you started on a plan that’s best for your needs.

Have more credit card debt than what you’re comfortable with? You may have considered all your options, including pulling from your 401K or Roth IRA. Since you contribute to it regularly, you should make it back in no time flat, right? While many people end up going through with this option, most of them quickly regret it later. Before you go through with anything, let the professionals at Maggi Tax teach you the consequences of paying your credit card debt with retirement funds.

What Happens When You Pull From Your 401K Early

The consequences of pulling from your 401K before you reach the age of 59 ½ can have long-term effects on your financial health and retirement. This is because taking withdrawals while you’re any younger than the required age will likely result in fees of 10% subtracted from the total amount that you’re wanting to take out. Oftentimes, the fee itself is so high that it’s not worth the extra cost. Since your contributions compound over time, it’s best to keep your savings at the highest amount possible. Taking out so much as a few hundred dollars can result in thousands of lost savings over time. But what else can you do to pay your credit card debt while still planning for your retirement?

Alternative Methods For A Happier Retirement

Withdrawing from your retirement fund should only be seen as a last resort, and oftentimes, there are many other solutions available so you shouldn’t even need to tap into that final option anyway. Take a look at these alternative ways to decrease your credit card debt in a way that won’t be nearly as harmful to your future funds.

Take Out A Loan From Your 401K

Most people don’t realize this, but you can actually borrow from your 401K without facing withdrawal fees. As long as you pay it back within 5 years, borrowing from your 401K won’t affect your credit score because no credit check is required. You can tap into your retirement funds while circumventing the 10% fee, and the interest will likely be much lower than receiving a loan from most other lenders.

Temporarily Halt Your Contributions

Another trick that many employees aren’t aware of is that you can choose to temporarily stop your contributions so you can receive those funds in your paycheck to use however you wish. Choosing this method and using the money that would have gone towards your 401K contributions or Roth IRA to pay off your credit card debt faster can prove to be an easier and safer solution. Of course, you can go back to your regular contributions whenever you’re ready to do so.

Before Anything, Speak With A Financial Advisor

Even if any of these alternative solutions sounds ideal to you, it may still be in your best interest to meet with a qualified financial advisor. Since it’s in their profession, they may be able to see an even better solution that you haven’t yet considered. Your advisor could even evaluate your income to devise a strategic plan in helping you meet your goal with the way things are now. Sometimes, all it takes is a different mindset or point of view from a professional! For long-term goals, you can meet with your trusted advisor on a regular basis to ensure that you’re on the right track, even if it’s just an annual visit.

Let Maggi Tax Help You With Your Financial Goals!

If you would like to seek assistance from a qualified financial advisor, schedule a consultation with a professional from Maggi Tax today by calling (727) 799-1701! We will gladly help you in any way we can to help you find the best path for paying off your credit card debt while securing your retirement fund.

If you’ve ever worked for a company, you’ve probably started planning for retirement under your employer. More professionally known as a 401K, these savings plans are a great way to prepare for your senior years. Many individuals stick with the same employer until they retire, but those who leave their job might wonder what to do with their 401K after they’re no longer with the company. Maggi Tax is here to show you your options!

Transfer Your 401K Over to Your New Employer

It’s common for people to leave their current job in favor of a new one. Most reasons for seeking a new position include an increased income, greater benefits, or simply a change of scenery. People may also seek a replacement job after being let go from their previous one. Whatever the reason, it’s entirely possible (and oftentimes advised) to transfer, or roll over, your 401K from your previous employer to your current one. That way, you can continue making contributions automatically through your paychecks and maximize your resulting savings.

Roll the Money In Your 401K Into An IRA Account

Those who are unable or unwilling to pursue a new job after leaving their previous one have the option of rolling over their 401K into an IRA or a Roth IRA account. People commonly go this route if they had been laid off by their past employer or if their new employer does not support a retirement plan. Both types of savings plans work in the same way, with one of the main differences between a 401K and a Roth IRA having to do with taxes. 401K contributions are taken before tax while Roth IRA contributions are made after taxes.

Leave Your Savings With Your Previous Employer

If your 401K contributions under your past employer come out to a total of $5,000 or higher, you have the option of leaving it where it is. Some people choose to do this because they don’t know how else to handle their savings. Although your 401K may be safe this way, you won’t be able to make any further contributions (even out of your own pocket) thus stopping you from reaching your maximum potential.

Cash It Out For Instant Money (With Consequences)

Many people are tempted to pull out their 401K savings after they leave their job to pay off debt or place a down payment on a house. After all, it’s your money so you’re entitled to it whenever you want to use it, right? That may technically be true, but this is strongly inadvisable because withdrawing from your retirement fund before you reach the age of 59 ½ can result in a 10% fee. If you still want to move on with this option, it should at least be for a very good reason. Before you start, you may want to talk with a financial advisor about finding the best approach to this method.

Not Sure What to Do With Your 401K? Ask Maggi Tax!

As you can see, there are many ways to handle your 401K after you leave your job. In order to play it safe and make the most out of your funds, it’s best to speak with an experienced financial advisor to help you find the best possible route. Call Maggi Tax today at (727) 799-1701 to ask about scheduling a complimentary consultation!

Hiring a financial advisor to assist you with various aspects of your finances such as budgeting your income, planning out taxes, and investing in the future is a great way to help you find a clear goal and stick with it. But what exactly should you be discussing during your meetings? The experts at Maggi Tax are here with a few questions that you can ask your financial advisor in 2023!

Am I Still On Track With My Financial Goals?

Visiting your financial advisor somewhat frequently, or even annually, can help show you a great measure of how far you’ve come along with your financial goals. Whether you’re seeking to pay off your debts or save up enough money for a house, it can be easy to lose sight of your goals in favor of unnecessary spending. What started off as a one-time occurrence may have gotten a little out of hand to the point where you need a reminder of what you need to do to achieve your larger, more important vision. On the contrary, it can be exciting to hear that you’ve been doing well by sticking to your original plan!

How Can I Prepare For My Taxes?

Many taxpayers go for their annual appointment during tax season and are left either pleasantly surprised by how much they’ll be getting back or in complete disbelief by how much they owe. Leaving things a mystery until the time comes can be very stressful especially if you already have other financial obligations. However, a financial advisor can help you in time for the next tax season and can even assist you with tax strategies and preparations for retirement.

Do You Know What I Should Invest In?

Everyone knows that investments are a great way to place your money into something that can grow in value, or at least secure your assets. Some people take a shot in the dark and hope for the best, but that’s not very advisable since it leaves you with little control over the situation. If you have extra income that you don’t know what to do with, feel free to ask your financial advisor about proper investment planning. They’ll be able to help you make a smarter decision that’s more likely to come out positive.

What Changes Should I Make to My Financial Plans?

Another reason to meet up with your financial advisor somewhat often is because you never know what changes will happen in your life that will require an adjustment to your original plan. A change in job status, whether it be good or bad, can have a drastic effect on your current income and budgeting goals. Getting married or having a child are also valid reasons for re-evaluating your finances since you’ll need to factor in more essential expenditures.

Consult the Financial Experts at Maggi Tax!

Have you met with a financial advisor yet to help you make plans for 2023? Make an appointment with Maggi Tax today by calling (727) 799-1701! We’ll gladly sit down with you and carefully evaluate everything to help you come up with the best possible financial plan suited to your personal income and goals.

Are you wondering how to make a spending freeze that works? A spending freeze is aimed at teaching people how to spend responsibly. It involves people going long periods without spending money on unnecessary items.

Have you lately been buying many things you don’t need? Are you worried about your spending and finance management skills? A spending freeze can help you reset those old habits that have been bothering you. But simply refusing to buy anything might not work.

Defining a Spending Freeze

A spending freeze, much like the name suggests, involves freezing your spending for a while. You can set your own rules and restrictions. However, the basic idea is to only spend on necessities till you get back on track.

Some restricted activities may include eating or ordering from outside, engaging in activities that count as entertainment, or spending on wants. However, this doesn’t mean you stop spending on your needs.

The Positive Effects of a Spending Freeze

When understanding how to make a spending freeze that works, you must consider the many advantages:

  • A spending freeze can help you immediately save money on unnecessary things.
  • It can also allow you to pay off debt and focus on bigger goals.
  • The freeze can help you pause and reset, leading you to realize your spending triggers and unhealthy activities.
  • You can also get in touch with your emotions and devise ways to avoid spending when you aren’t thinking rationally.

How to Make a Spending Freeze that Works

  1. The Time: Try not to do the spending freeze around the holidays. This can discourage you from this healthy exercise as you may break and indulge in gifts for your friends. While this is a healthy activity, it may come in the way of your exercise.
  2. The Purchase: It is essential to decide what is necessary for you and what you would consider a want. Putting these items in different boxes can be hard, so perhaps talking to a friend is best.
  3. The Plan: Without a plan, it is easy to falter and get back into those old habits. Once you create a budget, you can stick to it and avoid spending more than you need to on your expenses.
  4. The Accountability: To reap the full benefits of a spending freeze, you can try trusting an accountability partner. This can be a friend or a family member who can keep you on track and away from distractions.

Time to Begin!

The time to begin that spending freeze is as early as possible. If you regularly encounter issues with saving and organizing finances, a spending freeze can help you realize its importance.

Experienced financial advisors at Maggi Tax can give you a sound understanding of your spending patterns and how to get to better financial management. Call (727) 799-1701 for your first consultation and choose financial health today! After all, the future depends on it!



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