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First Financial Consulting and Greg Welborn’s insights on tax strategies for retirees

The approach at First Financial Consulting challenges the conventional wisdom of focusing solely on gross returns

Photo by Tima Miroshnichenko on Pexels
Photo by Tima Miroshnichenko on Pexels

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In the realm of retirement planning, a common oversight is the focus on gross returns from investments, social security, or pensions, while neglecting the crucial aspect of taxation. This approach can lead to a skewed perception of financial readiness for retirement. First Financial Consulting, under the guidance of Greg Welborn, a principal at the firm, emphasizes the importance of considering the net amount — what retirees actually receive after taxes. Their philosophy is rooted in the belief that understanding and planning for tax implications is not just a detail, but a pivotal factor in the success of any retirement plan.

Greg Welborn, with his extensive experience in financial planning, underscores the necessity of integrating tax strategies into retirement planning. First Financial Consulting, based in Pasadena, CA, stands out for its commitment to providing 100% objective retirement planning and investment management services. These services are meticulously tailored to each client’s unique situation, needs, and goals, ensuring a personalized approach to financial planning.

The misleading nature of gross returns

The approach at First Financial Consulting challenges the conventional wisdom of focusing solely on gross returns. Greg Welborn and his team of experts understand that the figures on paper do not always translate into real-world financial security. They argue that by concentrating only on the gross amounts from various income sources in retirement, individuals risk a false sense of financial security. This oversight can lead to underestimating the impact of taxes, potentially derailing retirement plans.

The firm educates its clients on the significance of net returns — the actual amount available after accounting for taxes. This perspective is crucial, especially considering the varying tax implications of different income sources in retirement. For instance, withdrawals from certain retirement accounts might be taxed differently than social security benefits or pension income. First Financial Consulting’s approach involves a thorough analysis of these aspects to ensure that clients have a realistic understanding of their financial standing in retirement.

By shifting the focus from gross to net returns, First Financial Consulting not only aligns retirement expectations with reality but also opens avenues for strategic tax planning. This approach is a testament to their commitment to providing comprehensive and client-centric financial advice, setting them apart in the field of retirement planning.

First Financial Consulting, led by the experienced Greg Welborn, emphasizes the critical impact of tax rates on retirement projections. The firm illustrates this with a simple yet powerful example: if an individual’s tax rate is 10%, and tax planning is not factored into their retirement strategy, their financial projections could be inherently flawed by that same percentage. The discrepancy becomes even more pronounced at higher tax rates. For someone in the 50% tax bracket, the error in their retirement projections could be as substantial as 50%. This stark difference underscores the importance of accurate tax planning in retirement strategies, especially when incorporating tax strategies for high income earners

Delving into the realm of tax strategies for retirement, First Financial Consulting approaches this complex subject with a tailored strategy for each client. The firm recognizes that the tools and techniques effective in reducing tax liabilities vary greatly between individuals in their earning years and those in retirement. Greg Welborn and his team are adept at identifying and applying the right tax strategies at the right phase of a client’s life. This personalized approach ensures that clients can maximize their retirement income by minimizing their tax liabilities, thereby enhancing their financial security in their retirement years.

At First Financial Consulting, the approach to retirement planning is comprehensive and client-focused. The firm prides itself on providing 100% objective advice as a fee-only financial advisor. This means they do not sell any products or accept commissions, allowing them to focus solely on what is best for the client. This approach is evident in how they create financial plans that reflect each client’s specific situation, rather than relying on one-size-fits-all solutions.

The philosophy of comprehensive financial planning is deeply ingrained in the services offered by First Financial Consulting. The firm takes a holistic view of a client’s financial situation, understanding that each element of their finances is interconnected and impacts their overall financial health. This comprehensive approach involves developing a detailed plan that addresses all aspects of a client’s financial life, including investment management, retirement planning, tax strategies, and estate planning. By considering the totality of a client’s financial picture, First Financial Consulting is able to develop strategies that not only meet their current needs but also lay a solid foundation for a secure financial future.

Recent studies highlight the critical role of tax planning in retirement. For instance, a study by Science Direct emphasizes that annual tax planning significantly influences the use of retirement savings plans. Another research piece by the C.D. Howe Institute, suggests that simple changes to tax rules can notably improve retirement security. These studies underscore the importance of incorporating tax strategies into retirement planning, a principle strongly advocated by First Financial Consulting.

First Financial Consulting employs a range of tools and techniques for effective tax planning in retirement. These strategies are designed to save capital, earn investment income tax-efficiently, and strategically manage tax liabilities. A comprehensive guide by the Knowledge Bureau, outlines the importance of such approaches. Additionally, Charles Schwab’s article, How to Plan Ahead for Taxes in Retirement, provides insights into using accounts with varied tax treatments to control taxable income in retirement.

The integration of tax planning into overall retirement strategy is crucial for financial security. First Financial Consulting, led by Greg Welborn, excels in this area, offering tailored advice and comprehensive financial planning. The firm’s approach, backed by Welborn’s extensive experience and reinforced by recent studies, ensures that clients are well-prepared for the financial realities of retirement. By focusing on both the macro and micro aspects of finance, from investment strategies to tax planning, First Financial Consulting positions its clients for a secure and prosperous retirement.

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Jon Stojan is a professional writer based in Wisconsin. He guides editorial teams consisting of writers across the US to help them become more skilled and diverse writers. In his free time he enjoys spending time with his wife and children.

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