Question 1

What services does Proper Planning offer?

Accepted Answer

Proper Planning provides comprehensive financial planning and wealth management for individuals, families, and business owners in the Kansas City metro area. Core services include holistic wealth management, retirement planning, tax strategy, estate and legacy planning support, business succession planning, and employer-sponsored retirement plans including 401k plans. Services are coordinated into one integrated plan rather than offered separately.

Question 2

Are you a fiduciary, and how are you compensated?

Accepted Answer

Yes. Proper Planning operates as a fiduciary, legally and ethically obligated to act in clients' best interest. Advisory services are offered through LPL Financial, a registered investment adviser and member of FINRA/SIPC. Compensation is based on a transparent, asset-based fee structure with no hidden commissions or surprise invoices.

Question 3

What do the ChFC, CRPC, and CRPS designations mean?

Accepted Answer

These are professional designations earned through the College for Financial Planning. ChFC (Chartered Financial Consultant) covers advanced financial planning including tax, retirement, estate, and insurance planning. CRPC (Chartered Retirement Planning Counselor) focuses on retirement income planning and Social Security optimization. CRPS (Chartered Retirement Plans Specialist) covers employer-sponsored retirement plan design and compliance for business owners.

Question 4

What does the first meeting look like?

Accepted Answer

The first meeting is a complimentary, no-obligation consultation focused on understanding your goals, concerns, and financial picture. If both sides decide to work together, the next step is a deeper discovery process including financial document gathering, tax return analysis, and building a visual financial plan. Meetings are available at two Overland Park offices or remotely.

Question 5

How can high-income earners reduce their tax burden legally?

Accepted Answer

Effective tax planning for high-income earners involves coordinating multiple strategies including Roth conversions, tax-loss harvesting, charitable giving through donor-advised funds or charitable remainder trusts, maximizing retirement account contributions, and strategic income timing. The right combination depends on income sources, filing status, state of residence, and retirement timeline.

Question 6

What is the AMT, and could it actually work in my favor?

Accepted Answer

The alternative minimum tax uses a parallel calculation with a flatter rate structure. In years when you are already subject to the AMT, certain types of income or deductions may have reduced tax impact, creating opportunities to accelerate income, exercise incentive stock options, or adjust deduction timing at a lower marginal cost. The AMT can also generate credits that carry forward to reduce future tax liability.

Question 7

How should dual-income couples think about the marriage tax penalty?

Accepted Answer

High-income dual-income couples often face higher effective tax rates due to bracket compression, reduced Net Investment Income Tax thresholds, the SALT cap applying per return rather than per person, and AMT threshold differences. Planning strategies include optimizing retirement contributions across both spouses' plans, timing Roth conversions, coordinating charitable giving, and evaluating state tax implications.

Question 8

When does a Roth conversion make sense, and when doesn't it?

Accepted Answer

Roth conversions tend to make sense when income is temporarily lower, future tax rates are expected to be higher, or the goal is reducing future required minimum distributions. They may not make sense during peak earning years, if funds are needed within five years, if the conversion triggers higher Medicare premiums, or if there is no cash available outside retirement accounts to pay the tax.

Question 9

When should I start taking Social Security?

Accepted Answer

Social Security can be claimed as early as 62 at a reduced benefit or delayed to 70 for roughly 8% more per year past full retirement age. The optimal timing depends on health, other income sources, spousal and survivor benefit strategies, tax implications, and Medicare premium impacts. Modeling multiple scenarios in the context of a full financial plan typically reveals the best approach.

Question 10

How much can I safely withdraw from my portfolio in retirement?

Accepted Answer

The 4% rule is a starting point but has limitations. A dynamic withdrawal strategy that adjusts based on portfolio performance, spending needs, tax considerations, and other income sources is more realistic. This includes managing which accounts to withdraw from in which years to optimize tax brackets and sustain the portfolio across different market scenarios.

Question 11

What should I do with my 401k when I retire or change jobs?

Accepted Answer

Options include leaving funds in the former employer plan, rolling to a new employer plan, rolling to an IRA, or cashing out. The best choice depends on investment options, fees, tax planning flexibility, and creditor protection rules, which differ between Kansas and Missouri. An IRA rollover typically offers more investment choices and easier Roth conversion planning.

Question 12

How do required minimum distributions work, and how can I plan around them?

Accepted Answer

RMDs require minimum annual withdrawals from tax-deferred retirement accounts starting at age 73 (moving to 75 in 2033). Large RMDs can push retirees into higher tax brackets and increase Medicare premiums. Planning strategies include Roth conversions before RMDs begin and qualified charitable distributions of up to $105,000 per year directly from an IRA to charity.

Question 13

What financial moves should I make in the years right before retirement?

Accepted Answer

The five years before and after retirement are critical for stress-testing the portfolio for sequence-of-returns risk, mapping out income sources and withdrawal sequences, executing Roth conversions during lower-income years, reviewing estate documents, and building a realistic spending plan. Decisions made during this window can have lasting impacts on tax liability and income security.

Question 14

How do I plan for healthcare costs between retirement and Medicare eligibility?

Accepted Answer

Early retirees face a healthcare coverage gap before Medicare begins at 65. Options include COBRA, ACA marketplace plans, spousal coverage, or health sharing ministries. ACA premium subsidies are based on modified adjusted gross income, creating a direct connection between retirement withdrawal strategy and healthcare costs that requires coordinated planning.

Question 15

Do I need an estate plan even if I'm not wealthy?

Accepted Answer

Yes. Estate planning ensures your wishes are followed and your family is protected regardless of net worth. At minimum, every adult should have a will, durable power of attorney, healthcare directive, and current beneficiary designations. Without these, state intestacy laws dictate distribution, which rarely matches family intentions. For larger estates, planning scales to include trusts, gifting strategies, and tax-efficient wealth transfer.

Question 16

What is the difference between a revocable and irrevocable trust, and which do I need?

Accepted Answer

A revocable living trust avoids probate and provides management continuity while allowing full control during your lifetime, but offers no tax or creditor protection benefits. An irrevocable trust removes assets from your taxable estate and may provide creditor protection and Medicaid planning benefits, but requires giving up control. Most families start with a revocable trust and add irrevocable structures only for specific estate tax, asset protection, or charitable goals.

Question 17

How do you approach portfolio construction and investment management?

Accepted Answer

Proper Planning builds diversified, evidence-based portfolios driven by each client's financial plan, tax situation, time horizon, and risk tolerance. The approach emphasizes low-cost investments, systematic rebalancing, tax-efficient asset location, and coordination of withdrawals to manage tax brackets. Every portfolio decision ties back to the client's broader financial plan and goals.

Question 18

Should I be worried about the current market environment and my portfolio?

Accepted Answer

Market disruptions are a recurring feature of investing, not anomalies. Proper Planning positions portfolios for uncertainty before it arrives through diversification, adequate liquidity, downside stress testing, and flexible withdrawal strategies. Adjustments are made based on long-term plan objectives rather than short-term headlines.

Frequently Asked Questions (FAQs)

What services do you offer?

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Are you a fiduciary?

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What credentials does your team hold?

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What does the first meeting look like?

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