We are a full-service financial firm committed to helping people pursue their financial goals. We offer a wide range of financial products and services to individuals and business owners. We believe you will be better able to identify your goals and make sound decisions to help reach them by our providing sound financial information.Through its associations and relationships with other industry professionals ( other CPAs, CFPs, insurance specialists, elder care attorneys, etc.) Applewood Asset Management (AAM) assists all types of investors through its fee based asset management services. AAM utilizes well known, low cost, and highly regarded account custodians.
Applewood Asset Management (AAM) utilizes, hires, or retains various consultants, analysts, and research sources for opinions, and asset allocation strategies and direction. AAM uses sources such as Barrons, Morningstar, Value Line, Zacks, and various private newsletters, blogs, and research-oriented publications. AAM also utilizes the services, for most clients, of managed money programs such as, or similar to, those offered by Formula Folios. AAM focuses on retirement account distribution planning and its implications, particularly through seminars on “Required Minimum Distributions (RMDs)” and income and legacy planning. AAM has accounts solely devoted to growth of capital, but more often devoted to income generation, preservation of capital, and growth plus income portfolios.
RETIREMENT PLAN DISTRIBUTION EXPERTS
Unlike the vast majority of our competition, who still focus solely on asset management for accumulation purposes, Applewood Asset Management, LLC focuses on the often confusing and complicated retirement plan distribution rules and implications. Many retirees are surprised to learn that it is “easier” to work on the accumulation side of the retirement mountain, so to speak, over a 30-40 year period, than it is to navigate down the distribution side of the mountain. For example, did you know that withdrawals or distributions from all retirement plans* are taxed as ordinary income, and receive no favorable dividend or capital gains tax treatment, regardless of how long you may have help the investment. Also, these distributions can affect your income tax bracket, and the taxation of your Social Security benefits, and the amount you pay for Medicare premiums. When you turn 70 ½, you must begin to take money out of your retirement accounts, whether you need it, or want it. These mandatory withdrawals are called “Required Minimum Distributions”, or “RMDs.” In addition to the above mentioned tax effects, RMDs can even lead to running out of money if proper planning is not done. Also, the penalties for making mistakes with your RMDs are severe, so it is advisable to consult professionals who specialize in this field. Louis Terrero is writing a book about the confusing issue of RMDs, with two colleagues-a CFP and a tax attorney-both of whom are also experts in the RMD arena. The book is due out in the next few months.
As mentioned above, AAM sponsors professional dinner seminars , often with financial planners and/or attorneys as guest speakers, on the subject of required minimum distributions, which can often be confusing for many retirees. Here are some interesting and alarming facts on the RMD phenomenon:
AN RMD TIDAL WAVE WHICH STARTED ON 7/1/16…
Some facts and implications…
- 78 million baby boomers
- Front end of the wave turned 70 1/2 in the summer of 2016.
- A certain percentage have retirement accounts
- All retirement accounts will be subject to RMD rules and time frames**
- Increasing revenue stream to government for next 18 yrs!
- Will help keep Social Security and Medicare going
- Can affect your Social Security and Medicare premiums
- Can cause you to “run out of money” without proper planning!
- Can cause you to accidently disinherit your intended beneficiaries!
- Different retirement accounts have different rules!!
As of July 1, 2016, the very front end of the roughly 78 million person baby boomer generation began to turn 70 1/2, and therefore face the strict rules and timeframes of the required minimum distribution process, which is applicable to all of their retirement account assets ( except Roth IRAs). AAM believes that due to the confusing nature of the rules and regulations and time frames associated with the RMD process, and its implications for taxes, income needs, and legacy planning for the well to do retiree, a team of experienced and expert professionals who are well acquainted with the entire RMD process and its consequences, is critical for these retirees.
Please call us at (732) 984-9001 if you have any questions about the types of investments or 
services we provide. Our firm has a relationship with a variety of financial services companies, so if we don’t have a product or service, we know a group that does.
* * Only ROTH IRAs escape the RMD rules and timeframes and penalties, but inherited ROTH IRAs do not!