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(502) 426-0000 ∙ www.Roberts.cpa 201 Townepark Circle, Ste B-1 Louisville, KY 40243 163 Dennis Drive Lexington, KY 40503 Wealth Without Worry Smart Money Monthly A PATH TO FUTURE FINANCIAL FREEDOM It feels like the months are slipping by in a flash. July 2025
To illustrate my point, let’s look at retirement. Many overlook or don't fully understand how expensive their taxes can be once they leave the workforce. Next to health care costs, the taxes you’ll pay in your golden years will be one of your most significant expenses — and they can change much quicker than you may realize. Considering your current and future cash flow is one of the best ways to protect yourself — and your spouse — as you age. Your Social Security benefits or pension income may put you in a higher tax bracket, or your financial standing may change considerably if your spouse passes away. None of us has the luxury of knowing exactly how our future will play out, so considering as many scenarios as possible — including the difficult subject of losing a loved one — is key to protecting yourself from financial burdens that could creep up and cause you headaches or worse. The more you plan to ensure economic security in the event of an unfortunate situation, the less devastating that scenario will be. Social Security is another critical factor to consider. Although most folks elect to receive benefits between the ages of 66 and 67, an additional 8% is applied annually to benefits delayed up to 70. This could mean an extra 24% if you wait three years to collect your benefits. Whether putting off Social Security is the right choice for you depends on your anticipated cash flow and financial needs. Again, you can’t formulate a proper plan for tomorrow unless you know where you are today . Our days are bright and sunny now, but the chill of winter and the close of another 12 months will be here before we know it. If this article has caused you to pause and consider the years ahead, or if you have more immediate concerns about filing properly by next April, please contact me as soon as possible so we can build a better foundation for stability and success. By all means, enjoy the relaxing days of
Somehow, we’ve already reached the halfway point of 2025. This time of year typically allows many of us to relax and enjoy the nice weather and summer travel. For me, summer is an opportunity to slow down a little after the hustle and bustle of the most recent tax season. No matter how you spend the next several weeks, I hope you have a great time, especially since some critical life decisions may be around the corner. With July kicking off with Independence Day celebrations, now is the time to view the second half of the year as a potential turning point in your path toward financial freedom. It’s never too early to become more mindful of your money and prepare for what's to come over the next six months and into 2026, but you always risk hitting the ground too late to address changes and risks to your bottom line. Before your schedules get busy again with the arrival of fall and the year-end holiday season, take a close look at where your finances currently stand and what they may look like by the end of December. Are you living paycheck to paycheck? How healthy are your savings and investments? Will you reach retirement age
within the next few months? These are just a few questions you should ask yourself sooner rather than later.
summer, but don’t overlook the importance of setting the stage for that same peace of mind down the road. —Kevin Roberts
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MOVES BEYOND TODAY’S MONEY SECURE STEPS TO A SAFE RETIREMENT
There’s often more to retirement planning than meets the eye, especially regarding taxes. Although many people believe saving money for their golden years is the primary path to a secure retirement, tax planning and health care considerations play significant roles in the strength of one's later years and subsequent legacy. Here are two essential aspects of proper retirement The most significant risk to successful estate and retirement planning is not starting the process early enough. To ensure the smoothest transition possible, experts recommend engaging in tax planning no later than five years before you intend to retire. Getting a lengthy headstart will enable you to determine ways to make pretax funds work for you in tax- advantaged accounts. If you anticipate reaching a higher tax bracket in retirement, converting to a Roth IRA — in which you can grow post-tax funds toward your retirement and withdraw them tax-free after you reach 59.5 years old and have had and estate planning that many often overlook. The Right Financial Tune-Up Time Frame Chart-Dropping Cash Crashes Although selling millions of albums would be a dream come true for most working musicians in 2025, it could be seen as a colossal failure for some of the world’s most successful performers, particularly when a music icon follows up their greatest success with their biggest bomb. Here are two tales from the music world that prove lightning rarely strikes twice for even the biggest stars. GARTH GOES WRONG There was a time when anything country superstar Garth Brooks touched turned to platinum. The most successful recording artist since The Beatles, he has sold more than 150 million albums worldwide. By 1999, he was on top of the world … but got bored. Looking for a new form of creative expression, he took on the persona of a fictional rocker, Chris Gaines. Brooks believed in his alter ego enough to spend a whopping $5 million to record an album called “The Life of Chris Gaines.” Although he was easily the most popular country artist on the planet at the time, his legions of fans weren’t willing to accept their hero pretending to be someone else. Ultimately, the Chris Gaines album sold only around 2 million copies, prompting Brooks to remove his rocker wig and replace it with his cowboy hat. Sour Notes
the account for five years — may be a viable option to protect yourself and what you intend to provide to your heirs. However, prepare for the likelihood that putting too much money into a Roth conversion may lead you toward a higher tax bracket once retirement comes, so careful planning with professional assistance is advised. With taxes expected to rise in 2026 and beyond, it’s also prudent to work with a financial planner to implement strategies to reduce your financial obligations in retirement, including the amount taxed on your Social Security benefits. A Plan for Health Care Hurdles Unfortunately, reaching retirement age often means experiencing new health issues that could substantially impact your income. It is critical to consider how any changes to your retirement income may affect Medicare premiums or increase the chance of incurring penalties. Charting a financially secure future takes skill, focus, and tremendous care. What may work for someone else financially may not be the best solution for you. Consult a financial professional before implementing any plan that could drastically alter your comfort and security.
THE MAC FALLS FLAT Fewer bands have embraced the stereotypical excesses of rock ‘n’ roll more than Fleetwood Mac. When the group’s classic 1977 album “Rumours” sold 20 million copies, its members suddenly found themselves living large with plenty of riches — and, in some cases, reckless lifestyle choices — that often come with chart-topping success. When it came time to record their next album, the band spent more than $1 million to create “Tusk,” a double album that immediately turned off casual fans with its higher-than-average retail price. Ultimately, it sold only 20% of its predecessor, proving that bigger isn’t necessarily better.
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Crooks, Cons, and Clickbait In today’s high-tech times, phishing schemes reign supreme. All it takes to go broke is the click of the wrong key. So, before responding to that unexpected call, text, or email informing you of a tax bill you need to pay today, read this article to learn the truth behind these common swindles and how you can First and foremost, beware of any supposed communication from the IRS that requests immediate action. A sense of urgency is a common tactic thieves use to get victims to agree to specific terms or click a link promptly without much consideration. Some examples of this high-pressure “pay now or else” approach include threats of deportation or arrest — all of which are bogus. When you receive such a communication via email, closely check the sender’s email address or any website address included in the email body. If that website or email address contains misspellings or is longer than a typical one, it’s a safe bet it didn’t come from an honest source. And whatever you do, don’t click on any links! Senior Security at Risk Unfortunately, people aged 65 or older are typically the most targeted demographic for tax scammers. The IRS has seen a rise in fraudsters posing as agents or other government officials in recent years, with these thieves often pressuring senior citizens to make tax payments through gift cards or other unconventional methods. These scammers often spoof caller IDs to appear legitimate to their intended victims. In addition to posing as representatives from the IRS, they may falsely claim to be with Medicare or the Social Security Administration. The IRS never initiates contact via email, text, or social media regarding tax debts or refunds. If you receive a phone message regarding your taxes, don’t return it using the number provided in that message or the one displayed on the caller ID. To verify the legitimacy of a call, contact IRS customer service at (800) 829-1040 or, for the hearing impaired, TTY/TDD (800) 829-4059. Additionally, you can set up an online account at IRS.gov to track all up-to-date, verifiable information on your current tax situation. avoid losing your cash to criminals. How Scammers Steal from You Tips for Spotting a Fraud
Inspired by HalfBakedHarvest.com
Cheesy Tomato-Basil Stuffed Chicken
INGREDIENTS
• 4–6 boneless, skinless chicken breasts • 1/2 cup basil pesto • 1 cup shredded mozzarella cheese • 1/3 cup oil-packed sun- dried tomatoes, drained, oil reserved • 2–3 tbsp sun-dried tomato oil
• 2 cups cherry tomatoes, divided • 2 cloves garlic, smashed • 2 tbsp balsamic vinegar • Chili flakes, to taste • 1/4 cup fresh basil, chopped • 1 tbsp fresh thyme leaves • Salt and pepper, to taste
DIRECTIONS
1. Preheat oven to 425 F. 2. Slice chicken down the middle horizontally (not cutting all the way through). 3. Spread pesto inside filleted chicken, then stuff with cheese and tomatoes before closing chicken, covering filling. 4. Place chicken in a large oven-safe skillet. Drizzle with oil. 5. Set the skillet over medium heat; cook 5 minutes. 6. Add 1 1/2 cups tomatoes, garlic, balsamic vinegar, and season with chili flakes. Cook 2–3 minutes, then remove from heat. 7. Bake in oven for 7–10 minutes until chicken is cooked through and tomatoes burst. 8. Toss remaining 1/2 cup tomatoes with basil, thyme, salt, and pepper. 9. Serve the chicken topped with fresh tomatoes.
SUDOKU
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INSIDE THIS ISSUE 1 Today’s Tactics, Tomorrow’s Triumph 2 Ways to Win the Retirement Race Riffs, Riches, and Ruin 3 Tax Time Trickery Cheesy Tomato-Basil Stuffed Chicken 4 Secrets to Spousal Stability
MAXIMIZED MARITAL MAGIC THE ART OF UNLIMITED DEDUCTIONS
Devising the best estate plan to provide for those dearest to you can be emotionally and logistically challenging, even under the clearest circumstances. However, this process can be even more difficult due to the critical terms, conditions, and laws that could determine the strength or weakness of how your wishes are carried out upon your passing. To make things a little easier, here are the basics about the “unlimited marital deduction” and how it influences what one spouse The unlimited marital deduction enables a spouse to transfer unlimited assets to another tax-free. You derive this deduction by subtracting the total amount of assets from the gross estate, which must be distributed according to a will. Estate taxes on transferred assets are delayed until the recipient spouse’s death. The spouses must be legally married U.S. citizens to qualify for this deduction. receives from another. TAX-FREE TRANSFERS
SAFEGUARDING A SUSTAINED LEGACY If an individual wishes to have a say in what happens to their assets after their surviving spouse passes, they can set up an irrevocable Qualified Terminable Interest Property (QTIP) Trust that will still provide for the surviving spouse but outline beneficiaries upon their death. Because this trust is irrevocable, it can't be altered by anyone, including the surviving spouse. CITIZENSHIP EXCEPTIONS Although establishing the unlimited marital deduction is straightforward for American citizens, pursuing similar options for non-citizen spouses is more complex but not impossible. First, a U.S. citizen can gift money to their non-U.S. citizen spouse. In 2024, the maximum amount not subject to gift taxes was $185,000. Another option would be to establish a Qualified Domestic Trust (QDOT), which allows the non-citizen spouse to take advantage of the unlimited marital deduction so long as they are
the sole beneficiary and at least one trustee is a U.S. citizen or an American corporation. Naturally, the conditions outlined in this brief overview are subject to a host of what-ifs that may affect the specific outcome of your situation. Working with skilled financial planners familiar with these nuances is essential to secure your spouse’s well-being and satisfy tax obligations when the time comes to implement your estate plan.
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