Accumulating Wealth

Money Growing Over TIme

“Wealth is a planned result that requires

productive work and dedication.”

– H.W. Charles

Tax Diversification

If you’re an investor, chances are you’re porfolio is market-diversified. But are you tax-diversified? Your retirement probably depends more on the latter than the former, but you have to get started early.

During retirement, your largest bill won’t be food, housing, or even health care (that’s your second largest). Without wise planning, your largest bill (by far) will be taxes.

We have all been told that we’ll save taxes by investing in our IRA’s…but what they don’t tell you is that in retirement EVERY DOLLAR will be taxed in full. When you’re on a fixed income in retirement, you want as much control as you can get over how much tax you pay.

By carefully crafting your portfolio to include all kinds of tax situations, we can help give you the ability to live the lifestyle you want in retirement.

We consider our clients’ current and future potential tax situations, and work with their tax advisors to make sure we are putting the best plan in place. The earlier you start planning, the easier it is to be tax diversified – contact our office to get started!


Cost-Efficient Investing

How much are your investments really costing you?  Mutual funds and ETFs are not required to disclose all their costs to you.  You could be paying up to twice as much as you think.

If you have investments in the stock or bond market, chances are you are using mutual funds to appropriately diversify yourself.  While this is an important strategy, do you know what is going on inside of those funds?

Forbes Magazine estimated in 2011 that costs, taxes, and inefficiencies contribute an additional 2.5% – 3% annually, on top of the expense ratio. This can result in a 50% lower return over just 10 years.

At Rocky Mountain Financial Designs, we are dedicated to cost-efficient, tax-efficient investing. Our investment firm, Townsquare Capital, is revolutionizing the industry using a system known as Separately Managed Accounts (SMA), which employs strategies that cut out the middleman (the mutual fund) with all its fees and inefficiencies. By doing so, we can potentially increase your performance by 2% – 3% without changing the amount of risk you are taking.

If you’d like to “pop the hood” on your mutual fund to see exactly what you own, what the fees are, where the inefficiencies are and whether an SMA plan would be advantageous for you, schedule an initial consultation, or contact us to learn more about our account audit service that we offer new clients.


Super-Roth Strategy

Contributing to a Roth IRA can be a great strategy to save for retirement.  But there are a few restrictions that limit its effectiveness, such as contribution limits, income caps and early withdrawal penalties.

Fortunately, there is a strategy that can get you many of the benefits without the limitations of a traditional Roth, which we have dubbed the “Super Roth” strategy. It works the same as a Roth, in that you contribute after-tax dollars, it grows tax-free and comes back to you tax-free. There are NO contribution limits, NO income limits, and you can access about 80% of the value with no penalties.

This strategy is not for everyone, but having a tax-free asset is a critical part of a solid retirement plan.  Learn more today..