Transcript:
Hi, I’m Jeremy Riggs, certified financial planner at Base Wealth Management. A couple came in with a statement showing about 90% of their savings in a money market fund. Their ask was straightforward. Steady income, less drag from taxes. So, we built a three bucket plan.
First, short-term municipal cash for the next trips, near-term bills, keep it liquid, generally with federal tax advantages.
The second bucket was their core income. Dividend focused ETF sized to the spending need and targeting around a 5% yield. Yields move, markets move. So, we right-sized it instead of stretching.
If the market drops 20% tomorrow, do you know what that could do to your portfolio and how you’d feel about it? If you’re not sure, click the link below to schedule a portfolio risk review. We’ll take a straightforward look at what you own and see if the amount of risk you’re taking still fits your timeline and goals. Now, back to the video.
Third, long-term growth inside of Roth, so qualified withdrawals can be tax-free and compounding isn’t taxed along the way. The result was an income plan that supports today’s lifestyle and keeps an eye on the future long-term care costs. Our estimate showed potential federal tax savings of about 17% on each distributed dollar versus the original setup. Your numbers will differ, but the structure matters.
Cash is a tool, not a destination. If you’re holding a lot of idle cash, let’s put a real framework around it.
