Larz Macfarlane, Wealth Advisor
Small Milestones
This winter marks a small milestone for our family: it’s our first one in our new home since Carson recruited us away from Phoenix.
When we moved, we braced ourselves for snow. Serious snow. The kind that justifies new coats, winter getaways to the tropics, and a debate about whether to buy a snowblower. Instead, we’ve been met with something far milder. Cold mornings, crisp blue skies, and just enough winter to keep things interesting.
That said, Ashlee and I are still very clearly not acclimated.
When temperatures drop into the teens, we exchange a look that says, “We used to live somewhere with palm trees.” The kids, on the other hand, seem completely unbothered. They treat winter like an invitation — to climb rocks, explore trails, and sit happily on cold stone as if that’s a perfectly normal way to spend an afternoon. They still shriek every morning there’s “snow” (frost) on the grass outside the dining room window and bound outside in their bare feet and pajamas.
One of my favorite moments so far is captured in a photo of our girls perched on boulders during a winter hike. They look small against the landscape, bundled up and entirely content. Meanwhile, Ashlee and I are quietly checking extremities and wondering if we should have packed an extra layer, despite the glaring absence of snow or ice.
Another photo shows me holding our youngest, wrapped in pink and looking far more prepared for winter than I am. She’s calm, warm, and unimpressed by the cold, which feels about right. The kids are adapting faster than we are, and they’re doing it with a lot more grace.
There’s something meaningful about settling into a home through a full season. Learning how the light moves across the yard in winter. Discovering which rooms warm up first and which ones don’t. Watching your family begin to root itself, slowly and naturally, in a new place.
We may still feel like winter amateurs, but this already feels like home… cold fingers, blue skies, bundled kids, and all. Stay warm!
March: where weather forecasts take wild guesses!
— Author Unknown
Landon DeCoursey, Associate Wealth Advisor
A Simple Story About RMDs and QCDs and Getting the Order Right
Meet Bob and Susan Pennypincher. Bob just turned 73 which means he officially entered a new phase of retirement planning Required Minimum Distributions (RMD). The IRS now requires Bob to begin taking withdrawals from his Traditional IRA every year whether he needs the money or not.
Bob was surprised, “I’ve been careful not to touch that account. Why now?” The answer is simple; those dollars were never taxed. RMDs are how the IRS finally collects.
So, Bob plans to take his RMD later in the year and deposit it into his checking account until Susan raises a question, “When should we donate to our church and the food bank this year?”
The Pennypincher’s decide to consult with their wealth advisor and that is when they learn more details about Qualified Charitable Distributions (QCD).
Because Bob is over age 70½ he can donate directly from his IRA to qualified charities. When done correctly the distribution counts toward his RMD, the money never shows up as taxable income, and it may help reduce taxes on Social Security and Medicare premiums.
Sounds perfect right? But timing matters…
If Bob takes his RMD first and then gives it to charity the withdrawal is taxable and the opportunity is lost. Once an RMD hits Bob’s bank account it cannot be undone.
So instead, Bob works with his advisor to calculate his RMD, send part or all of it directly to charities as a QCD and withdraw only what he actually needs for spending.
Same generosity.
Same RMD satisfied.
Lower taxable income.
The lesson Bob learned, and many retirees do not until it is too late, is this: With RMDs and QCDs the order matters!
For more details, refer to this document from the Carson Tax Solutions team.
