Jeff Thompson

Retirement, Investing, Insurance
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“Jeff Thompson, Managing Partner of JFThompson Wealth Management, is devoted to understanding each client's individual situation and providing them with quality information, products and services to help them reach all their financial goals.”
Firm:

JFThompson Wealth Management

Job Title:

Managing Partner, Financial Planner

Biography:

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Jeff Thompson has over 22 years of financial services experience, previously serving as the Managing Partner of Flagship Financial Partners, Larsen Thompson Wealth Management and as a financial consultant with Merrill Lynch. Jeff handles all client investment, insurance, wealth preservation and wealth building strategies for the firm. He is also known as The Retirement Jock, a financial/sports personality whose podcasts can be found on the jftwm.com website.

JFThompson Wealth Management has over 22 years of experience within the financial planning, investment advisory and insurance industry. With the diversity of education, industry and business, JFThompson Wealth Management has the foundation to provide unbiased advice to their clientele.

Jeff focuses on creating investment and financial plans that are geared towards retirement planning for pre-retirees and retirees that provides guaranteed inflation-adjusted income for life, while mitigating the risk of the market, longevity, inflation, taxation, etc.

With so many options available to those looking to grow and protect hard-earned assets, cutting through the clutter and finding the right solutions can be a challenge. Jeff understands these unique challenges and is driven to craft personalized, results-focused financial strategies for his clients.

Education:

University of Minnesota- Twin Cities

Assets Under Management:

$45 million

CRD Number:

2732245

Disclaimer:

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Investment Advisory Services provided by Leyenda Capital Partners LLC. Leyenda Capital Partners LLC is a State Registered Investor Advisor firm in the State of Colorado. Leyenda Capital Partners LLC dba JFThompson Wealth Management are affiliated entities.

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    Financial Planning, Retirement, IRAs
What are my options to avoid the pitfall of tax deferring IRAs?
55% of people found this answer helpful

Let's assume your qualified accounts grow at a modest 5% until you hit that magic age of 70 1/2, where you qualify to be the IRS' best friend, and as you know you are required to start taking RMD (Required Minimum Distribution). As you may have calculated your first year RMD will be around $85,000, which will be taxed as ordinary income when added to your Pension income. Then you will have 85% of your Social Security income taxed at your new, and higher bracket. That is the bad news! Now, let's look at strategies... Sure a Roth Conversion of a chunk of that qualified money, maybe 35% or more of the balance spread out over the next five years, might make sense, but paying the income tax on the Roth Conversion will throw you into another higher tax bracket. The IRS will have you coming and going and you will be put on their Christmas card list on top of it all. To add to the pain, the better your accounts do, and the older you get, the more the IRS wants you to take to satisfy your RMD so by the time you hit 80 years old you will most likely be taking over $120,000+ to satisfy your RMD. So, let’s look at your list of other options: (1) A Dynasty IRA trust is an option but this is designed to benefit charities of your choice; (2) as a Financial Advisor I love annuities, but without doing a Roth Conversion you won't solve any of your RMD issues, and you will lock up that money for years; (3) gifting to your heirs you are limited each year to how much you can gift, which will still cause a tax liability so unfortunately that strategy won't have much beneficial impact for you. So, let's talk about Life Insurance, specifically Universal Index Life. The strategy is to take that arbitrary 35% of your qualified money, which in this example would be $700,000. You take a five year distribution from that number, which is $140,000 a year for those five years and buy an UIL (you will have to pay the tax, but don't worry). Then the following year you take a tax-free loan from the UIL policy to pay the tax, and you do this for five years, then watch what happens to the amount of your RMD. You will be quite surprised by how much you have reduced your overall tax liability going forward and two things will significantly occur for you; (1) not only will your RMD be reduced but (2), you will have a tax free death benefit that will pass on tax free to your heirs and/or charity, and, in addition, as a bonus, you will have access to tax free income if you choose to buy another car, go on a great vacation, gift to your heirs, etc. Again, all tax free. Always remember, it is better to 'pay tax on the seed, than to pay tax on the crop'.

 

July 2017
    401(k), Asset Allocation, Life Insurance
Should I continue to max out my 401(k) contributions or diversify with a whole life insurance policy?
47% of people found this answer helpful
July 2017
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What should I be looking for in a qualified advisor as I am approaching retirement?
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    401(k), IRAs, Taxes
How much do I have to pay in taxes when transferring to a Roth IRA?
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September 2017
    Debt, Retirement, IRAs
Should I cash out my IRA if I want to pay off my mortgage?
33% of people found this answer helpful
July 2017