Money Considerations When Becoming a Caregiver for Aging Parents

As Americans live longer, more adult children are stepping into a new and emotionally complex role: caregiver for aging parents. While this caregiving journey is often rooted in love and duty, it comes with significant financial, legal, and emotional challenges—many of which families are unprepared to navigate.

 

At Gatewood Wealth Solutions, we help families prepare for life’s key moments. Becoming a caregiver is one of those moments, and having the right plan in place can help you support your parents without jeopardizing your own financial well-being or confidence.

The Situation Many Couples Face

The typical scenario starts subtly. One parent begins needing help with errands, then medications, then transportation. Eventually, the need grows to include daily support—bathing, dressing, managing bills—or even full-time care.

For couples in their 40s, 50s, or 60s, this can be a difficult balancing act. They may still be working full-time, saving for retirement, or even supporting children in college. When caregiving duties grow, it creates stress, financial strain, and difficult decisions:

 

These are deeply personal—and deeply financial—questions.

Financial Considerations for Caregiving

Caring for a parent can quickly become a financial responsibility. Common costs include:

 

Medicare Vs. Medicaid: What They Cover (and what they don’t)

Medicare is health insurance primarily for those 65 and older. It covers hospital care, doctor visits, and short-term rehabilitation—but NOT long-term custodial care such as help with bathing, dressing, or eating.

 

Medicaid, on the other hand, is a needs-based program that can cover long-term care in a facility or at home—but only for individuals with very limited income and assets.

 

Coordination Between the Two:

In some cases, individuals can qualify for both Medicare and Medicaid (known as “dual eligibility”), but coordinating these benefits is complex and often requires professional guidance. Timing, asset structuring, and proper documentation are key to avoiding disqualification or delays in coverage.

Legal and Estate Planning Issues to Address

When you step into a caregiving role, you also step into a world of legal responsibilities. The following should be reviewed or created:

 

Gatewood can work alongside estate attorneys to help ensure the proper legal structures are in place and coordinate with elder law specialists when necessary.

Emotional and Lifestyle Strain

Many caregivers experience:

 

We often remind families: you cannot pour from an empty cup. Planning ahead financially and legally can ease the stress and allow more energy for the emotional and relational aspects of caregiving.

Resources for Caregivers

You’re not alone in this journey. Here are a few reputable resources:

 

How Gatewood Can Help

At Gatewood, we guide families through the complexities of caregiving—from financial planning to legal coordination to emotional support strategies. We:

 

A Final Thought

You may never feel fully ready to become a caregiver—but with thoughtful preparation and the right support, you can approach it with confidence, clarity, and compassion.

If you’re facing—or anticipating—the responsibility of caring for an aging parent, let’s have a conversation. We’re here to help you prepare financially and emotionally for one of life’s most important roles.

 


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Important Disclosures:

This material was created for educational and informational purposes only and is not intended as tax, legal or investment advice.  For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither LPL Financial nor any of its representatives may give legal or tax advice.

How One Business Owner Saved Over $12K by Electing S-Corp Status

When Mike started his consulting business, he did what many new entrepreneurs do—he operated as a sole proprietor. It was simple, required no formal setup, and allowed him to focus on building his client base.

But two years in, with business booming and $200,000 in net income on the books, Mike’s CPA asked a pivotal question:

“Have you thought about electing to be taxed as an S-corporation?”

Mike had heard the term before but didn’t quite understand how it worked—or why it mattered. What followed was an analysis that changed the way Mike ran his business and saved him thousands of dollars every year.

The Tax Breakdown: Sole Proprietor vs. S-Corp

As a sole proprietor, Mike was paying self-employment tax on every dollar of his $200,000 net income. That meant:

 

Ouch.

But under an S-Corp structure, things look different. Mike would pay himself a reasonable salary (let’s say $96,000) and take the rest of the profit ($104,000) as a distribution, which isn’t subject to self-employment taxes.

Here’s how the S-Corp scenario plays out:

 

The Cost of Making the Switch

Of course, S-corporation status comes with a few additional administrative requirements:

Even after subtracting these estimated costs, Mike stood to save between $12,212 and $14,212 per year.

 

Bonus Tax Benefit: State Income Tax Deduction

But that’s not all. Because S-corps are pass-through entities, Mike also became eligible for Missouri’s pass-through entity tax election, allowing state taxes to be paid at the business level—rather than being limited to the $10,000 SALT deduction cap on his personal return.

This strategy gave Mike additional federal tax savings, since he could now fully deduct state taxes paid by the S-corp.

 

Other Advantages of Being an S-Corporation

Beyond tax savings, Mike discovered several practical and strategic benefits:

 

Additional Considerations When Converting to an S-Corporation

Fringe Benefits May Be Less Favorable
S-corporation owners who hold more than 2% of the company are treated differently than sole proprietors or C-corporation owners when it comes to fringe benefits.

 

Reasonable Compensation Is Required

The IRS requires that S-Corp shareholder-employees pay themselves a reasonable wage before taking distributions. This is a common IRS audit focus.

Tip: A reasonable salary should be based on industry standards, the services performed, and the time spent working in the business. In our earlier example, $96,000 appears reasonable—but this figure should be justified and documented.

 

State Tax Workaround – SALT Cap (PTE Election)

Some states, including Missouri, allow Pass-Through Entity (PTE) tax elections, which can help bypass the federal $10,000 cap on state and local tax (SALT) deductions.

However, this strategy comes with caveats:

 

Tracking Basis and Distribution Rules

S-Corp shareholders must carefully track their basis (i.e., their investment in the company).

 

Timeline for Electing S-Corp Status

To be effective for the current tax year, you must file Form 2553 by March 15.

 

Exit Strategy and Flexibility

S-Corp status is relatively easy to revoke if your situation changes. However, once revoked, you generally cannot re-elect S-Corp status for five years without IRS approval.

 

Bottom Line: Is It Time to Make the Switch?

For Mike, the math was simple: Save over $12,000 a year, protect personal assets, and run a more structured, scalable business.

If you’re earning over $50,000–$60,000 in annual net income, talk to your CPA or financial advisor about whether electing S-Corp status could be right for you. With the right structure and planning, you may save thousands each year in taxes—while building a more scalable and protected business. For many small business owners, this single decision can meaningfully boost profitability and financial efficiency—without changing the work you do.

Want to explore whether switching to an S-Corp could save you thousands too? Let’s talk.


Schedule a Meeting

 

Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.

This is a hypothetical example and is not representative of any specific situation. Your results will vary.

Major Tax Bill Clears the House — Here’s What It Could Mean for You

On May 22, 2025, the U.S. House of Representatives narrowly passed a nearly $4 trillion tax bill known as the “One Big Beautiful Bill” by a 215-214 vote. The legislation includes the most significant tax changes proposed since 2017, including permanent extensions of key provisions from the Tax Cuts and Jobs Act (TCJA), new deductions, and revised rules for both individuals and businesses.

While this is a major step, it is not yet law. The bill now heads to the Senate, where changes are likely. The administration has signaled an interest in seeing legislation finalized by July 4, though many expect the timeline may extend into August or beyond, depending on the pace of negotiations.

Here’s what you need to know — and what we’re doing to help you prepare.

Key Highlights from the House Bill

For Individuals:

 

Estate Planning Updates:

 

For Business Owners:

 

Other Notables:

 

What Happens Next?

The Senate is expected to take up the bill in June, possibly bypassing committee review in favor of direct negotiations. Any significant changes made by the Senate would require another vote in the House before the bill can be enacted. While many core elements of the bill enjoy broad Republican support, there are competing priorities among Senate members — particularly around energy credits, international taxation, and the scope of permanent provisions.

How Gatewood Is Preparing Our Clients

With major tax changes on the horizon and year-end planning season approaching, timing and strategy will be critical. At Gatewood Wealth Solutions, we’re preparing our clients for all possible outcomes — and we’re starting now.

Here’s how we’re helping:

You don’t need to wait for the final vote to start planning. Strategic action today can create lasting benefits regardless of how the final bill takes shape.

If you’re ready to review your plan or want to understand how this legislation could impact your financial goals, let’s talk. We’re here to guide you through it — with clarity, strategy, and purpose.


Schedule a Meeting

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.

Still Working, Still Planning: Why In-Service Distributions Can Be a Game Changer

For high-earning professionals, retirement isn’t a date—it’s a strategy. And one of the most overlooked ways to take control of that strategy, even while you’re still working, is through an in-service distribution (ISD).

We’re often asked this question:

 “Can I move my 401(k) into an IRA while I’m still working—so I can take full advantage of active, personalized portfolio management?”

In many cases, the answer is yes. And when done strategically, it can unlock greater control, tax advantages, and long-term flexibility.

Let’s explore how in-service distributions work—and when they make sense as part of a bigger-picture plan for your future.

What You Gain with an In-Service Distribution?

An in-service distribution allows you to move all or part of your 401(k), 403(b), or pension assets into an IRA—without leaving your job. As long as the transfer is done as a direct rollover, your funds retain their tax-deferred status and the transaction is not taxable.

The IRS permits in-service distributions from:

 

But just because you can, doesn’t always mean you should—yet for many executives, this move creates flexibility, personalization, and greater alignment with long-term goals.

A Tale of Two Executives

Consider the stories of Michael and Susan, both successful professionals at different stages in their careers:

MICHAEL, age 59½, is a senior vice president who has spent 25 years with his company. He’s still passionate about his work but is beginning to think about his long-term financial independence. His 401(k) has grown substantially, but he feels limited by the investment options in the plan.

Because his plan allows for in-service distributions at 59½, Michael transfers a portion of his account into an IRA, enabling Gatewood’s investment team to tailor his strategy, diversify his portfolio, and begin creating a tax-smart income plan for future retirement.

 

SUSAN, age 67, is a chief operating officer who planned to retire at 65 but has decided to continue working for a few more years. She wants to avoid unnecessary risk and better align her retirement assets with her estate plan.

Her company’s retirement plan permits in-service distributions after age 65, and she uses the opportunity to roll assets into a professionally managed IRA. This move gives her more flexibility in charitable giving, Required Minimum Distribution (RMD) planning, and tax-efficient withdrawals—while continuing to contribute to her 401(k).

Questions to Consider Before Making an In-Service Distribution

 

If you answered “yes” to more than one of these questions, an in-service distribution may be a valuable next step.

The Strategic Advantages & Smart Tradeoffs

The Advantages

Rolling assets into a Gatewood-managed IRA opens the door to a more expansive investment toolkit. Gone are the one-size-fits-all fund menus. Instead, you gain access to custom portfolios built with individual securities, ETFs, and even alternative investments—crafted around your objectives.

You also unlock:

 

*Note: Gatewood helps ensure that rollovers retain their ERISA-level protections by correctly classifying and documenting IRA rollovers.

Important Considerations

While an in-service distribution provides significant advantages, there are tradeoffs to be aware of:

 

When Your Current Plan May Be Good Enough (For Now)

If your employer’s plan offers strong investment options, low costs, and you’re not yet focused on tax strategy or estate planning, staying the course may be appropriate—at least for now.

But if you’ve outgrown the plan’s limits, and want more alignment with your total financial life, then an in-service rollover may offer the clarity, control, and customization you deserve.

Why Gatewood for In-Service Distribution Management?

At Gatewood Wealth Solutions, we don’t just manage investments—we guide families through life’s most important financial transitions. Our in-service distribution process reflects that philosophy.

With us, you gain:

 

Final Thought: It’s Not About Leaving Your Job. It’s About Taking Control.

Taking an in-service distribution isn’t about leaving your employer—it’s about taking control of your financial future.

If you’re ready for more flexibility, more strategy, and more confidence in your retirement plan, let’s start the conversation.

Your future self will thank you.


Schedule a Meeting

 

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.  No strategy assures success or protects against loss.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

 

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC

¹A plan participant leaving an employer typically has four options (and may engage in a combination of these options): 1. Leave the money in their former employer’s plan, if permitted; 2. Roll over the assets to their new employer’s plan, if one is available and rollovers are permitted; 3. Roll over to an IRA; or 4. Cash out the account value (38-LPL) show less

A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply. Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

The 9 Essentials Every Thoughtful Estate Plan Should Include

The Unfinished Plan

David and Michelle are in their early 50’s, juggling successful careers, two teenagers, and aging parents who are starting to need more care. Like many, they meant to revisit their estate plan, but life got in the way. Their will is nearly a decade old. Their home is titled only in Michelle’s name. And their IRA beneficiaries haven’t been reviewed since David switched jobs.

They know planning is important. But between work and family, it’s hard to make the time.

Then imagine a sudden accident. Would Michelle be able to access David’s accounts or make medical decisions? Would their kids be placed with the right guardians? Without updated documents, their family could be left in legal limbo during one of the most difficult times.

What Is Estate Planning Really About?

Estate planning isn’t just for the wealthy. It’s for anyone who wants to protect the people they love and leave behind clarity instead of chaos. It involves deciding who will manage your assets, how they’ll be distributed, and who will make decisions if you can’t.

More than anything, it’s an act of care.

  1. Understand Probate and How to Avoid It

 

Probate is a public, court-supervised process for settling estates. It can be expensive and slow. Tools like revocable trusts, joint account titling, and beneficiary designations can reduce or eliminate the need for probate.

  1. Create or Update Your Will

 

Your will names guardians for minor children and explains how you want your assets distributed. While it doesn’t avoid probate, it gives clear instructions and can help reduce family conflict.

  1. Check Your Beneficiaries and Account Titles

 

IRAs, 401(k)s, insurance policies, and even bank accounts can have named beneficiaries or be set up as transfer-on-death (TOD). Review these regularly—especially after marriage, divorce, or the birth of a child.

Gatewood Guidance: These designations often override your will. We help ensure your titling and beneficiaries reflect your current wishes.

  1. Consider a Revocable Living Trust

 

A living trust can help manage assets during life and transfer them privately after death, avoiding probate. It’s ideal for blended families, out-of-state property, or complex estates.

  1. Establish Powers of Attorney and Healthcare Directives

 

Appoint someone you trust to make financial and medical decisions if you’re incapacitated. Documents include:

 

Don’t forget your family: If you have aging parents or unmarried adult children, help them get these documents in place. Without them, you may not have legal authority in an emergency.

  1. Have the Conversation

 

Talking about your estate plan with family can feel awkward. But it’s one of the most valuable things you can do. It sets expectations, reduces conflict, and ensures your intentions are understood.

Tips for a Better Conversation:

 

Gatewood Wisdom: A well-prepared family is the best legacy you can leave.

  1. Be Strategic About Taxes

 

Smart estate planning can help reduce taxes and preserve wealth:

 

We collaborate with your CPA and estate attorney to build an integrated, tax-efficient strategy.

  1. Keep It Current

 

Review your plan every three years or when life changes. New job? Move? Grandchild born? These events should prompt an update.

  1. Get Organized

     

FREE CONTENT DOWNLOAD The Core Estate Planning Checklist The Essential Details Every Thoughtful Estate Plan Should Include   

 

David & Michelle’s Confidence & Relief

Six months later, David and Michelle are finally caught up. Their wills are updated. A trust is in place. Healthcare documents signed. Guardians named. They’ve even had heartfelt conversations with their kids.

They feel confident and relieved. They know their family is protected, their wishes documented, and their legacy secured.

Let’s Start the Conversation

You’ve worked hard, made thoughtful decisions, and provided for the people you love. But when it comes to estate planning, even the most successful families can feel uncertain or overwhelmed.

At Gatewood Wealth Solutions, we believe estate planning isn’t just about documents—it’s about honoring your life, your values, and the people who matter most. Whether you’re starting fresh or updating an old plan, we walk beside you—coordinating with your attorney and tax team to bring everything into alignment.

It’s not just about avoiding problems. It’s about creating clarity, reducing burdens, and knowing your family will be cared for the way you intend.

Let’s build something lasting—together.

Reach out today to schedule your estate planning conversation.

 

 

Important Disclosures:

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor

Inheriting Money, Property, or Investments? Here’s What to Do Next

Receiving an inheritance can be a powerful and emotional moment. Whether it follows the loss of a parent, grandparent, or another loved one, it often comes with a mix of gratitude, responsibility, and uncertainty. In many cases, these inherited assets are not held in trust or managed by a trustee—they come to you directly through beneficiary designations, account titling, or the probate process.

At Gatewood Wealth Solutions, we guide clients through these transitions with the thoughtful planning and care they deserve.

Here’s what you need to know if you’ve recently been notified that you’re inheriting assets—and how to make confident, well-informed decisions that align with your long-term goals.

Types of Assets You Might Inherit

Depending on your loved one’s estate, you might inherit:

 

Inherited Assets not Held in a Trust May Pass to Heirs in One of Two Primary Ways:

By Operation of Law:

This includes assets that transfer directly to a named individual through mechanisms like beneficiary designations, joint ownership with rights of survivorship, or titling such as Transfer on Death (TOD) or Payable on Death (POD).

Common examples include retirement accounts, life insurance policies, jointly owned bank or brokerage accounts, and certain real estate titles. These assets typically bypass probate and go directly to the named beneficiary.

Through the Probate Process:

If an asset was not titled properly or did not have a valid or current beneficiary designation, it becomes part of the decedent’s estate and must go through probate.

This legal process involves court oversight and can delay distribution while ensuring debts and taxes are settled. Probate assets often include solely owned property, untitled personal items, or accounts where no beneficiary was named.

Each type of inherited asset comes with its own set of rules—governing how it transfers, when it must be distributed, and what taxes may apply.

From the timing of IRA distributions to the tax treatment of inherited property or investment accounts, it’s essential to understand the unique requirements and implications of each asset you receive.

STORY #1: Inheriting a Home Through Probate 

David, age 38, inherited his mother’s $300,000 home in St. Louis after her passing. The home had no beneficiary deed, so it did not transfer automatically upon death. Instead, it passed to David through probate, according to the terms of his mother’s will, which named him as the sole beneficiary of the property.

The house was fully paid off and had been her primary residence. David lived across the country and wasn’t interested in relocating. Emotionally attached but financially uncertain, he faced several key decisions: Should he keep the home? Rent it out? Or sell it?

Challenges: 

 

Solution:

With no beneficiary deed in place, the home passed through probate according to David’s mother’s will. As an out-of-state beneficiary, David needed help understanding his responsibilities and evaluating whether to keep, rent, or sell the property.

Gatewood helped David by:

 

Ultimately, David chose to sell the home and invest the proceeds in a diversified portfolio aligned with his long-term goals.

STORY #2: Inheriting Financial Accounts with Beneficiary Designations

Julie, age 52, inherited the bulk of her father’s estate through direct beneficiary designations. She was named on each account as the Payable on Death (POD) or Transfer on Death (TOD) recipient, allowing her to bypass probate and take direct ownership of the assets.

Her inheritance included:

 

While the process of receiving the assets was relatively straightforward, Julie wasn’t sure where to begin—and she recognized that timing and tax decisions could have long-term implications for her wealth.

Challenges:

 

Solution:

Gatewood worked closely with Julie to help her gain clarity and confidence. We:

 

With a clear, personalized plan in place, Julie could move forward with confidence—using the inheritance to strengthen her financial foundation and accelerate her path to independence.

Key Questions to Ask Yourself

Inheriting assets can be overwhelming—especially when you’re navigating grief, unfamiliar paperwork, and looming decisions. Asking the right questions early can help you stay focused, intentional, and in control:

 

Common Issues & Smart Action Steps by Asset Type

Inherited Home

 

IRA or Retirement Plan 

 

Bank Accounts

 

Investment Accounts or Stock Certificates

 

Life Insurance & Annuities

 

Vehicles & Personal Property

 

Other Real Estate

 

Business Interests

 

Why Work with Gatewood—and an Estate Attorney

Inheriting assets is rarely simple. There are legal steps to follow, tax traps to avoid, and emotional decisions to make. But you don’t have to navigate it alone.

At Gatewood Wealth Solutions, we offer the clarity and expertise to help you:

 

This is about more than just what you’ve received. It’s about honoring a legacy, avoiding missteps, and building a future that reflects your values.

Let’s start with a conversation.

Because Wealth with Purpose starts with wisdom in moments like these.


Schedule a Meeting

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.  No strategy assures success or protects against loss.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC

5 Things to Review at Age 50 to Stay Retirement Ready

As you enter your 50’s, retirement is no longer a distant dream—it’s a fast-approaching reality. For couples like David and Lisa, both busy professionals juggling demanding careers, aging parents, and two kids in college, the pressure is real. Between tuition bills, thoughts of future weddings, and a desire to retire early (or at least have the option), they’ve started asking the big questions: Are we on track? Can we afford to retire when we want to? What happens if we can’t work as long as we thought?

If this sounds like you, you’re not alone. Your 50’s are a critical decade for aligning your wealth with your future goals. Here are five key areas to review now to make sure your retirement plan stays on course:

1. Supercharge Your Retirement Savings

Now’s the time to take full advantage of catch-up contributions. In 2025, individuals age 50 and older can make a catch-up contribution of $7,500 to their 401(k), bringing their total annual limit to $31,000.

For those ages 60 to 63, an additional special catch-up of $3,750 is available, allowing a maximum contribution of up to $34,750.

David and Lisa maxed out their workplace plans and reviewed whether Roth or traditional contributions made more sense based on their tax situation.

Also consider:

 

2. Evaluate Your Investment Allocation

The portfolio that got you here might not be the one to get you through retirement. You’re close enough to retirement that preserving wealth matters—but far enough away that you still need growth.

Make sure your investment strategy reflects your time horizon, risk tolerance, and future income needs. Lisa and David worked with their advisor to assess:

 

3. Review Your Retirement Timeline and Income Plan

What if you want to retire at 60? Or take a step back at 58? It’s time to explore your options.

Your 50’s are the perfect time to start modeling different retirement ages and income strategies. At Gatewood, we walk clients through scenarios that answer:

 

And don’t forget Social Security—understanding your optimal claiming strategy can make a significant difference over time.

4. Don’t Overlook Healthcare and Long-Term Care Planning

If you retire before age 65, how will you handle healthcare costs? This is one of the biggest surprises for early retirees. Lisa and David ran a cost analysis to see what COBRA, ACA plans, or a health sharing ministry might cost if they retired early.

Also consider:

 

5. Revisit Your Estate and Family Planning

Your wealth isn’t just for retirement—it’s part of your legacy. In your 50’s, it’s time to update your estate documents, revisit beneficiaries, and plan for future family milestones.

Lisa and David:

 

This is also a great time to open up conversations with your kids about money, values, and your plans.

Bonus: Get a Professional Second Opinion

A lot can change in your 50’s—and it’s easy to overlook opportunities or risks. A financial planning team can help you:

 

David and Lisa left their meeting feeling confident—not because they had all the answers, but because they had a plan.

So, whether you’re thinking about retiring early, catching up on savings, or just want to make sure you’re on track, now is the time to pause, plan, and prepare.

Let’s make sure the next chapter of your life is everything you’ve worked for—and more.

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities may be required to effect some of the strategies. Investing involves risks including possible loss of principal.

There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and asset allocation do not protect against market risk.

The information provided here is general in nature. It is not intended, nor should it be construed, as legal or tax advice.  To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

A plan participant leaving an employer typically has four options (and may engage in a combination of these options): 1. Leave the money in their former employer’s plan, if permitted; 2. Roll over the assets to their new employer’s plan, if one is available and

Living Well, Giving Well: Legacy Planning Insights

A Story of Reflection, Purpose, and Partnership

James and Evelyn, both in their early 70s, had spent the last few decades building a life they were proud of. They raised three children, enjoyed meaningful careers, and were now entering retirement with a sense of freedom—and a growing list of questions.

As they sipped coffee one morning overlooking their garden, their conversations increasingly turned to what came next—not just in terms of travel or hobbies, but how they wanted to be remembered. James had just received a letter about his required minimum distributions (RMD’s), and Evelyn had been reading about qualified charitable distributions (QCD’s). Both had been organizing old files and revisiting their estate plan.

“It’s not just about what we leave behind,” Evelyn said, “it’s about the impact we can make while we’re still here.”

Their story is one we often hear—a couple with more time to focus on family, travel, and passions, while also considering how to align their wealth with their values and legacy. Whether you’re looking to simplify, share, or steward your wealth more intentionally, your 70’s are an ideal time to revisit your financial plan. Here are five areas to focus on to live—and give—with greater purpose.

1. Intentional Giving During Your Lifetime

Giving isn’t just about what happens after you’re gone. Many couples like James and Evelyn find joy in witnessing the impact of their generosity now.

Consider:

 

2. Required Minimum Distributions (RMD’s)

RMD’s are the IRS’s way of ensuring that tax-deferred retirement savings are eventually taxed. Starting at age 73 (or 75 for those born in 1960 or later), you’re required to withdraw a minimum amount annually from accounts like IRA’s and 401(k)’s.

At Gatewood, we help ensure your RMD strategy supports both your lifestyle and your legacy. For James and Evelyn, this meant setting aside what they needed for living expenses, donating through QCD’s, and reinvesting any surplus to align with their future goals.

3. Review and Refresh Your Estate Plan

Your estate plan is your voice for the future. By your 70’s, it’s critical to ensure:

 

We recommend a full estate plan review every three years—or sooner if there’s been a major change in your family, finances, or goals.

4. Simplify and Organize for Your Heirs

Part of good legacy planning is making life easier for your loved ones when the time comes. James and Evelyn decided to:

 

These steps aren’t just practical—they’re a profound expression of care.

5. Live Fully, With Purpose

Legacy is about more than money—it’s about how you live, what you value, and how you share that with others.

James and Evelyn chose to:

 

They realized that living well now is one of the most meaningful legacies they could offer.

Let’s Build Your Living Legacy

At Gatewood, our goal is to help clients go beyond the numbers to live and give with purpose. Whether you need help structuring gifts, updating your estate plan, or simply organizing your financial life, we’re here to guide you.

Your legacy doesn’t start after you’re gone—it begins with how you live today.

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities may be required to effect some of the strategies. Investing involves risks including possible loss of principal.

There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification

and asset allocation do not protect against market risk.

The information provided here is general in nature. It is not intended, nor should it be construed, as legal or tax advice.  To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

Tax Planning Checklist for Filing by April 15, 2025

The Tax Season Rush: A Stressful Time for Busy Professionals

 

As the April 15 tax filing deadline approaches, many professionals, executives, and business owners find themselves overwhelmed. Between managing high-stakes projects, running businesses, traveling for work, and making time for family and social commitments, tax preparation often takes a backseat.

 

For many, tax season is a scramble—hunting for W-2s, 1099s, business expense records, and charitable donation receipts, all while trying to juggle their already packed schedules. Instead of being proactive about tax strategies, they often find themselves reacting to their tax bill after the fact, missing valuable opportunities to reduce their tax burden.

 

The reality is that taxes are one of the biggest expenses professionals and business owners face—and just like any other expense, they should be strategically managed. The good news? There’s still time to make impactful tax moves before the filing deadline.

 

Last-Minute Tax Moves to Reduce Your 2024 Tax Bill

 

While most tax-saving strategies had to be completed by December 31, 2024, there are still important actions you can take to reduce your tax liability before filing.

 

1. Contribute to Retirement Accounts (If Eligible)

 

✔ Traditional IRA Contributions (Deadline: April 15, 2025)

 

✔ SEP IRA Contributions (For Self-Employed Individuals) (Deadline: Tax Filing, Including Extensions)

 

✔ HSA Contributions (If Enrolled in a High-Deductible Health Plan) (Deadline: April 15, 2025)

 

2. Maximize Tax Deductions & Credits

 

✔ Review Charitable Contributions

 

✔ Determine if You Qualify for the Child Tax Credit

 

✔ Claim Education-Related Tax Credits

 

✔ Check for Home Energy Efficiency Credits

 

✔ Deduct Student Loan Interest

 

3. Optimize Capital Gains & Losses

 

✔ Use Prior-Year Capital Loss Carry-forwards

 

✔ Confirm Tax Treatment of Any 2024 Investment Sales

 

✔ Review Estimated Tax Payments (If Self-Employed or Have Large Investments)

 

4. Ensure Business Owners Take Advantage of Last-Minute Deductions

 

✔ Fund a SEP IRA (Deadline: April 15 or Tax Filing with Extensions)

 

✔ Confirm Deductible Business Expenses

 

✔ Take Advantage of QBI Deduction (If Eligible)

 

✔ Finalize Payroll and Employee Benefit Contributions

 

What to Gather for Your Tax Preparer or Financial Advisor

 

Pulling together the right tax documents ensures an accurate and efficient tax filing. Use this checklist to organize your records before meeting with your CPA, tax preparer, or financial advisor.

 

Personal Information

 

✔ Full Legal Names & Social Security Numbers for all dependents
✔ Filing Status: Single, Married, Head of Household
✔ Bank Information: For direct deposit refunds

 

Income-Related Documents

 

✔ W-2s from all employers
✔ 1099s (for self-employed, contract work, rental income, dividends, or investment income)
✔ K-1 Forms (for income from partnerships, S-corps, or trusts)
✔ Rental Property Income (if applicable)
✔ 1099-INT/1099-DIV (for interest and dividend income)
✔ 1099-B (for stock sales or investment transactions)
✔ Alimony Received (if applicable)

 

Deductions & Credits

 

✔ IRA Contributions (Traditional, Roth, SEP, SIMPLE IRA)
✔ HSA Contributions & Distributions
✔ Medical Expenses (if itemizing deductions)
✔ Mortgage Interest & Property Tax Statements (1098)
✔ Charitable Contribution Receipts
✔ Student Loan Interest (Form 1098-E)
✔ Education Expenses (Form 1098-T for tuition credits)
✔ Childcare Expenses (Name, Address, and EIN of Provider)
✔ Moving Expenses (if Military)

 

Business Owners & Self-Employed Tax Documents

 

✔ Profit & Loss Statement for 2024
✔ Business Expense Receipts (home office, vehicle mileage, travel, meals, equipment)
✔ Payroll & Employee Benefits Records
✔ Retirement Plan Contributions (Solo 401(k), SEP IRA, SIMPLE IRA)
✔ Estimated Tax Payments Made in 2024

 

Investment & Real Estate Tax Documents

 

✔ 1099-R for Retirement Distributions
✔ 1099-Q for 529 Plan Distributions
✔ 1099-S (if you sold a home or rental property)
✔ Schedule K-1 (if you’re a partner in a business or receive trust income)
✔ Cost Basis & Sale Proceeds for Any Investments Sold
✔ Rental Property Income & Expenses

 

Final Steps Before Filing

 

✔ Confirm Your Estimated or Final Tax Payment (If Owed)
✔ Check for Any Carry-forward Losses or Unused Deductions
✔ Consider Filing an Extension (If Needed)

 

Don’t Wait—Plan Now to Reduce Your Tax Bill!

 

The weeks leading up to April 15, 2025 are crucial for filing accurately, claiming deductions, and minimizing taxes owed. The earlier you gather documents and meet with your advisor, the better positioned you are to reduce your tax burden and avoid last-minute surprises.

 

Need help navigating tax strategies or making final contributions before filing? Contact Gatewood Wealth Solutions today for a customized tax planning review!

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal. No strategy assures success or protects against loss.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC

Love Your Financial Future:  A Valentine’s Day Guide to Aligning Your Goals

Align Your Goals, Strengthen Your Bond, Love Your Financial Future. 

Valentine’s Day isn’t just about flowers, chocolates, and dinner reservations—it’s about celebrating love and partnership. This year, why not take the opportunity to strengthen your bond by aligning your financial goals as a couple? Financial planning may not sound romantic, but building a shared vision for the future is one of the most meaningful ways to show your love and commitment. 

At Gatewood Wealth Solutions, we believe that love and money go hand in hand. Whether you’re navigating financial discussions or preparing for life’s biggest milestones, aligning your goals is essential to loving your financial future. 

FREE CONTENT DOWNLOAD Align Your Retirement Goals as a Couple A Step-by-Step Guide to Financial Confidence   

 

 

Aligning Your Goals: The Foundation of a Strong Bond 

Why Financial Alignment Matters 

Just like trust and communication, financial alignment is key to a healthy relationship. When couples work together to establish shared goals—whether it’s saving for a dream vacation, paying off debt, or planning for retirement—they create a foundation of understanding and partnership that strengthens their bond.

How to Get on the Same Page 

  1. Plan a Money Date Night: Use Valentine’s Day as an excuse to schedule a money date. Over dinner or a glass of wine, discuss your financial dreams and challenges. 
  2. Set Shared Goals: Identify your top priorities as a couple. Do you want to buy a home, save for retirement, or travel more? 
  3. Create a Vision Board: Visualizing your shared goals can make them feel more tangible and exciting. 

 

Navigating Financial Discussions with Love 

Overcoming Money Differences 

Every couple brings unique financial habits and experiences to the relationship. While one partner might be a saver, the other could be more of a spender. Instead of letting these differences create tension, use them as opportunities to grow together. 

  1. Practice Empathy: Take the time to understand your partner’s money mindset and what shaped their habits. 
  2. Set Nonjudgmental Boundaries: Agree on spending limits or savings goals without criticizing each other’s choices. 
  3. Communicate Regularly: Make financial discussions a regular part of your relationship, not just a one-time event. 

Handling Tough Conversations 

Preparing for Life’s Key Milestones Together 

Every stage of life brings unique opportunities and challenges, and planning for these milestones together can bring you closer as a couple. 

Buying a Home 

Starting a Family 

Planning for Retirement 

Confidence in Wealth Activation and Enjoyment 

Valentine’s Day is a time to celebrate love, but it’s also an opportunity to reflect on the future you’re building together. Transitioning from wealth accumulation to wealth activation, confidently spending down your investments during retirement, requires careful planning. That’s where Gatewood Wealth Solutions can help. 

Our Team Is Your Team 

Enjoying the Life You Build Together 

With a clear financial plan, you can embrace life’s key moments confidently. Whether it’s traveling the world, celebrating milestones, or simply enjoying everyday moments, your wealth plan ensures you can live with purpose and intention.

This Valentine’s Day, Commit to Your Financial Future 

Love is about building a life together, and your financial future is a big part of that. This Valentine’s Day, make a pledge to align your goals, strengthen your bond, and love your financial future. Whether it’s discussing your dreams, tackling tough money conversations, or preparing for life’s milestones, each step brings you closer to the life you envision together. 

 

 

Important Disclosures: 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. 

Investing involves risk including loss of principal. No strategy assures success or protects against loss. 

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. 

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. 

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC 

Testimonials

"Our relationship with Gatewood Wealth Solutions has evolved over the years right along with our family.  From building and protecting our wealth to retirement and estate planning, Gatewood has guided us and enabled our objectives. It’s assuring to know skilled professionals we trust are working with us to optimize what we have worked for all our lives. "

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Dr. Boyd C.
Retired Corporate Executive 11.13.23

"My wife and I have had the benefit of working with John Gatewood for over thirty-five years. Initially, John worked with us planning our personal and business life insurance needs. As his service offerings expanded, we took advantage of his expertise to help us with our family's financial planning. We could not be more pleased than what we are with the plan the Gatewood Wealth Solutions team developed for us. The team members are well-trained, intelligent, friendly, enthusiastic, and very good listeners. We have two scheduled reviews of the plan every year with one of the principals and at least…"

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Steve W.
Retired Business Owner 10.16.23

"My wife and I have known and worked with John Gatewood and his team for nearly a decade.  The values-driven team of Gatewood Wealth Solutions is motivated, caring, highly competent and personally fueled by character and integrity.  I recommended Gatewood to friends and family - including my children - because their deep desire to help clients 'give purpose to their wealth' gives us all the opportunity to better serve our families and communities."

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Dave M.
Corporate Executive 09.19.23

"Navigating the complexities of my corporate life was already a challenge, but when my husband passed away, it felt like an insurmountable mountain of emotions and paperwork. The team at Gatewood Wealth Solutions stepped in with compassion, efficiency, and expertise, guiding me through the entire estate settlement process. Their unwavering support made a world of difference during such a challenging time. I am profoundly grateful for all they've done and continue to do for me. Their services are truly unparalleled, and I wholeheartedly trust and recommend them."

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Carol S.
Corporate Executive 09.20.23

"My wife and I became a client of Gatewood Wealth Solutions twelve years ago on the recommendation of a friend who was also a Gatewood client, and I am very glad that we did. Until that time, I had managed our 401(k) and investments, but with retirement on the horizon, we felt it important to get professional help for retirement planning and investment management. The Gatewood team developed an integrated financial and retirement plan that we refined together. It was based on information such as our current financial position, desired retirement date and lifestyle, anticipated job and retirement income, expenses,…"

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Phil P.
Retired Corporate Executive 09.20.23

"I have worked with Gatewood Wealth Solutions since its inception and could not speak more highly of my experience. Gatewood Wealth Solutions provides comprehensive wealth management services for my family in a very sophisticated way. Their planning services are comprehensive and consider all assets of our family, not just what they manage. This is important for our family since we have a real estate business which must be considered in our planning. They also help us with our estate and tax planning each year. Their service is exceptional and is proactive and not reactive. I have referred members of my…"

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Tim M.
Partner/Attorney 09.22.23

"I’ve been with Gatewood Wealth Solutions and its predecessor for 21 years as our financial advisors. I first met John Gatewood in 2002 when I purchased a life insurance policy from him when he was with Northwestern Mutual. Shortly after having additional discussions with John, we started using them as our only financial advisors. They continued over the years to more than perform above my expectations and also started to bring in additional talent within their organization in order expand and meet client’s expectations. Since they’ve organized as Gatewood Wealth Solution and separated from Northwestern Mutual, they’ve continued to add…"

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Joe H.
Retired Corporate Executive 09.25.23

"I have been with Gatewood Wealth Solution for seven years, and I would highly recommend them for wealth management services.  They are a very efficient, effective, knowledgeable team that provides highly personalized, client-centered services.  If I didn't know better, I would think that I am their only client!  They have an excellent working relationship with a highly respected law firm that provides assistance with trusts and estate planning.  They also have an excellent working relationship with a tax accounting firm.  All of this so that all aspects of my financial planning needs are seamlessly coordinated. Their quarterly meetings are well…"

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Susan H.
Corporate Executive 09.26.23

"Partnering with Gatewood Wealth Solutions has been one of the best decisions we have made in the last five years. I have met with numerous financial planners who’ve all come to me with similar ideas and recommendations that don’t seem to prove that they are thinking outside the box for me individually. But when Gatewood came to me with their plan it was strategically designed with so many aspects taken into consideration that I was surprised at how uniquely competent and professional they were. They brought me many ideas and recommendations that would not bring them profit. They brought me…"

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Scott & Johanna S.
Business Owners 09.28.23

"Gatewood Wealth Solutions gives me confidence that my retirement savings are being monitored and managed with MY best interest in mind. All of the staff is welcoming, friendly and respectful. They have comprehensive knowledge of long-term financial planning, estate planning and tax planning. I have been with Gatewood for many years and hope to be with them for many more years to come."

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Gary B.
Corporate Executive 09.27.23

"I have known John Gatewood, the founder of Gatewood Wealth Solutions, for many years. We became friends well before we talked about business, and it was a natural decision to turn to John for help with our affairs when I needed it because I had grown to know and trust him. It really is true that John and his team at Gatewood Wealth Solutions are completely focused on helping ordinary families like ours to become financially independent. The family part especially means something: One day my 20-something son called to ask if I thought our group would be willing to…"

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Steve K.
Retired Corporate Executive 09.27.23

Testimonials Disclosure

The statements provided are testimonials by clients of the financial professional. The clients listed have not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success.

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