Announcing Zach Ripka as COO

Gilbert & Cook Promote Zach Ripka to
Chief Operating Officer

November 8, 2024 – West Des Moines, Iowa – Gilbert & Cook is pleased to announce Zach Ripka’s promotion to Chief Operating Officer.

With over a decade in finance, Zach has become known for his commitment to helping clients achieve their financial goals. Formerly the firm’s Planning & Tax Strategist, he brings expertise in both accounting and financial planning, enabling clients to benefit from well-structured strategies.

Throughout his tenure, Zach has embodied Gilbert & Cook’s values, building strong relationships with clients and colleagues. “At Gilbert & Cook, we emphasize a unique experience centered on a team approach.” Zach shared. Known for his collaborative style, Zach has strengthened both client relationships and the firm’s culture of trust and collective success.

As COO, Zach will continue to champion teamwork and shared knowledge, expanding his collaborative approach across the organization. His previous role involved partnering with the Planning Department and Advisors to deliver tailored financial solutions; now, he’ll align leadership to advance the firm’s strategic vision and growth.

Zach is a Certified Public Accountant (CPA) and Certified Financial Planner™ practitioner, with further credentials as a Certified Exit Planning Advisor (CEPA) and Certified Divorce Financial Analyst (CDFA). These reflect his dedication to continuous learning, a core value at Gilbert & Cook. “I sought ways to better serve our clients by deepening my knowledge,” he explained. The CEPA supports succession planning for business owners, while the CDFA aids clients navigating divorce for long-term stability.

Zach’s promotion underscores his commitment to helping clients lead a life of abundance. The team looks forward to his leadership as he fosters a culture of growth and teamwork at Gilbert & Cook.

October 11, 2024 Medicare Event Recap

Understanding Medicare in 2025:
Key Changes and What You Need to Know

---

As the Annual Enrollment Period (AEP) for Medicare approaches, it’s crucial to be informed about the latest changes to make the best healthcare decisions. This year’s Medicare Educational Event provided insights into Medicare basics, the annual enrollment timeline, and essential updates for 2025. Here’s what you need to know.

Medicare Basics: An Overview

Medicare, the federal health insurance program primarily for those 65 and older, comprises different parts with distinct benefits:

1. Medicare Part A – Covers hospital services.

2. Medicare Part B – Covers medical services like doctor visits.

3. Medicare Part D – Assists with prescription drug costs, offered through private insurers.

For those new to Medicare, eligibility typically starts three months before turning 65 and extends three months after. Applying is simple through the Social Security website or at a local office.

Integrating Medicare with Your Financial Plan

A strong financial plan does more than help to secure your future; it also complements your Medicare choices. By planning for healthcare expenses early, you can optimize your Medicare options and reduce out-of-pocket costs. A well-structured financial strategy provides the resources to comfortably cover premiums, deductibles, and unexpected medical expenses, while helping you take full advantage of Medicare benefits.

Additionally, aligning your financial goals with healthcare needs ensures that even as costs shift over time, you’re prepared with an abundance-focused approach to your retirement and healthcare. Having open communication with your financial advisor about any medical expenses is helpful to your financial plan.

---

Options for Medicare Coverage

Medicare beneficiaries can either stick with Original Medicare or select a Medicare Advantage (Part C) plan, often bundled with additional benefits. The two primary routes for coverage are:

Original Medicare: This traditional setup allows adding a Part D drug plan and Medigap coverage to help with out-of-pocket costs.

Medicare Advantage (Part C): Combining Part A, Part B, and usually Part D, these plans often provide additional benefits like vision, dental, and OTC allowances.

Medicare Advantage plans vary based on location and can feature different network structures, such as HMO or PPO.

What’s New for 2025?

This year brings some major changes to Medicare’s prescription drug coverage:

1. Deductible Phase: Beneficiaries cover 100% of their drug costs until meeting a $590 deductible.

2. Initial Coverage Phase: After the deductible, beneficiaries pay 25% coinsurance on all covered prescriptions, up to a new out-of-pocket limit of $2,000.

3. Catastrophic Coverage: Beyond this limit, insurers and manufacturers cover the remaining costs.

These changes reduce the out-of-pocket maximum for drug costs, down significantly from $8,000 in previous years, meaning substantial savings for many Medicare recipients.

Preparing for the Annual Enrollment Period (AEP)

The AEP is an opportunity to review current Medicare Advantage and Prescription Drug Plans and switch if necessary. Here’s how to prepare:

1. Review the Annual Notice of Change (ANOC) from your current plan to understand specific updates in coverage or costs.

2. Compile Your Medication List, including doses and frequencies, to ensure your plan covers them effectively.

3. Set Up a Medicare.gov Account if you don’t have one, as it’s a helpful resource for managing benefits.

4. Monitor Formulary Updates to check if your medications are covered.

Key Takeaways for 2025

With the reduction in out-of-pocket thresholds, insurance companies are adjusting premiums and deductibles. Additionally, some plans and carriers are consolidating, which might qualify certain beneficiaries for a Special Enrollment Period, allowing plan changes outside of AEP.

Navigating Medicare’s changes can be complex, but with proper planning, you can find coverage suited to your needs. Staying informed about your options is essential, and reaching out to both your Medicare professional and your financial advisor can provide clarity. Working with your advisor on a tailored financial plan can help you be prepared for the costs and changes that may come, supporting your goals for retirement. For any questions or personalized guidance about Medicare, reach out to  Nichole Jordan from Capitol Benefits Group at (515) 514-1204 or Nichole@capitol-benefits.com. For any questions about your financial plan, please reach out to your advisor.

Strategist Spotlight - Zach Ripka

Meet Zach Ripka, CPA, CEPA, CFP®, CDFA®

With 10 years of experience in the finance sector, Zach combines his background in accounting with his passion for financial planning as Gilbert & Cook’s Planning & Tax Strategist. His dedication to helping clients achieve financial success stems from his desire to make a lasting, positive impact on their lives and futures.

"At Gilbert & Cook, we often talk about offering a unique experience, and it’s true. What sets us apart is our team approach. Clients don’t just work with one Advisor – they have access to an entire ensemble of professionals. You get the full support of our team, which is something unique for a financial firm.”

Zach is a part of the Planning Department at Gilbert & Cook, where they take a collaborative approach when designing a client’s financial plan. “Our department works well together because we each have different backgrounds in finance and unique focus areas. We continuously collaborate as a team to create comprehensive financial plans.”  In addition to working closely with his team, Zach partners closely with Advisors to ensure clients' goals are met. “We are always working together to make sure we understand what the client is looking for in a financial plan, as well as their short- and long-term goals.” As a Certified Public Accountant (CPA) and a Certified Financial Planner TM practitioner, Zach understands how tax and financial planning can be pivotal to an individual’s financial plan.  “Possessing the knowledge surrounding tax laws and financial planning opportunities is highly beneficial when putting together a comprehensive financial plan. It helps clients optimize their plan for long-term success.”

Quest to Grow and Improve is one of our core values, and Zach has fully embraced it. During his time at Gilbert & Cook, he has earned both the Certified Exit Planning Advisor (CEPA) designation and the Certified Divorce Financial Analyst (CDFA) certification. "I wanted to find ways to better serve our clients, so I focused on areas where I could deepen my knowledge. Working with many business owners, I realized I could offer more value by earning my CEPA designation, as it’s essential for them to understand how to plan for the sale or succession of their business. When it came to divorce planning, I saw a need to support clients even more, which led me to pursue the CDFA certification. It allows me to help clients and their attorneys understand how today’s financial decisions can impact their future stability."

Building genuine relationships with clients reflects Zach’s commitment to both personal growth and serving others. As one of our core values, Genuine Relationships is at the heart of who we are, and Zach fully embodies this in his approach. For him, learning about a client’s needs and goals goes beyond just designing a financial plan. As Zach puts it, “It’s about getting to know the client and really hearing them. You are building a real relationship with them and connecting on a personal level.” By doing so, he’s able to offer guidance that is not only strategic but deeply meaningful, especially when helping clients navigate complex tax challenges or business succession.

In all that he does, Zach remains dedicated to fostering growth, both personally and financially, for those he works with. His passion for helping others live a life of abundance drives his approach, and his genuine care for his clients creates lasting relationships.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark and the CERTIFIED FINANCIAL PLANNER™ certification mark logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Advisor Spotlight - Todd Henningsen

Meet Todd Henningsen, CFA, CFP®

With 15 years of experience in the investment and financial industry, Todd's journey began right out of college as a research analyst. Over time, he transitioned into advising individuals and families.

 "My fascination with finance sparked in my first college course, where I learned about the power of compound interest. This realization ignited my passion for helping others achieve their financial goals through strategic investing and advising." - Todd

Todd takes a holistic approach when meeting with clients and “At Gilbert & Cook, our process is centered on helping clients live their personal life of abundance. During our initial meeting, myself and other team members assess the client’s current financial situation together. We have the client identify their life and legacy goals, and create a tailored financial plan with recommendations to achieve these objectives.”

Fostering genuine relationships is one of our core values, and is fundamental to what Gilbert & Cook does. Todd believes that the building blocks to a good working relationship is getting to know one-another and keeping the channels of communication open. “Building and maintaining strong relationships with my clients is at the core of my job. The most rewarding aspect of what I do is witnessing clients’ confidence grow. Many come to us with a level of uncertainty surrounding their financial future. My goal is always to hear what they need to live their life of abundance and then work alongside each other to create that reality.”

With rewards always come challenges. Markets fluctuate and there is never a guarantee when investing. “ Even seasoned investors can experience anxiety during stressful times. However, these periods can also present unique opportunities for strategic investing and planning. My role is to educate clients during market fluctuations and then leverage these opportunities for the long-term benefit of each client.”

Todd is an advisor because he finds immense joy in helping others achieve their live a life of abundance. He values building genuine relationships with his clients which allows him to witness their personal and financial growth.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark and the CERTIFIED FINANCIAL PLANNER™ certification mark logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Event Highlights: Navigating the 2024 Economic Landscape

On July 10th, Gilbert & Cook hosted an insightful evening at The Monroe, to delve into the Market Update & 2024 Economic Outlook; with a special emphasis on the influence of this election year's political climate on the economy. Our distinguished panel included Dave Price, Political Expert and Award-Winning Journalist; Kate Gudgel, CFA and Senior Investment Strategist at Gilbert & Cook; and Todd Henningsen, CFA, CFP®, Financial Advisor at Gilbert & Cook.

Political Insights with Dave Price

Dave Price began the discussion with an in-depth analysis of the current political landscape; particularly focusing on the implications if President Biden were to step aside. He elaborated on the complexities of this scenario, noting, "If Biden steps aside, the simplest way to handle the financial aspect is turning to Kamala Harris, as ‘both names are on the check’. However, since the duo has already raised $100 Million from supporters; if they opt for someone else, it could get quite complicated politically and financially."

Dave also provided a detailed update on the polls, emphasizing the growing lead of Trump in battleground states. He highlighted the critical battleground states, including Wisconsin, Arizona, Georgia, Michigan, Pennsylvania, North Carolina, and Nevada, which will be pivotal in the upcoming election.

"Trump is consistently leading in head-to-head matchups, which has many Democrats nervous. However, we're sitting here in July and talking about a November election, so a lot could happen." he explained.

UPDATE: Since the event took place, President Biden has declined his nomination for the 2024 Election.

Market Analysis by Kate Gudgel, CFA

When considering the impact of political shifts on economic performance; it’s important to understand that when we look back at the historical data, the market is positive regardless of the political party that's in the White House. Consider other economic influences historically. In 2008, the great financial crisis provided systematic risk for both President Bush and President Obama. The global pandemic of 2020, impacted markets beyond the control of President Trump or President Biden.

Using historical data, we can see the market's resilience under various political leaderships. "The market has been positive under all six combinations of political control," Kate stated. It is important to focus on long-term investing goals rather than short-term political fluctuations.

"The stock market doesn’t live or die based on who’s in control of the White House or Congress. It’s driven by the fundamentals of companies and economic growth."  

While politics are top of mind this year, the market's performance is more influenced by long-term earnings trends and broad-based economic growth. The Gilbert & Cook team brings focus back on the fundamentals and using the data to make logical, reasonable investment decisions.

Although easier said than done, the data shows us that it is better to ignore short-term volatility around elections. Your financial priorities and long-term investment goals should be the most important factors in your investment decision making.

Tax Policy and Economic Forecast by Todd Henningsen, CFA, CFP®

Todd Henningsen provided an examination of potential changes in tax policy and their implications. The impending sunset of the Tax Cuts and Jobs Act in 2026, would result in significant changes to tax brackets and deductions. "If no new legislation is passed by 2026, we’ll see tax rates going up pretty much across the board," Todd explained.

Comparing the tax proposals of President Biden and former President Trump; Biden’s proposal includes increasing the top tax bracket and corporate tax rate, while Trump aims to extend the Tax Cuts and Jobs Act into 2033. Todd noted, "Extending the Tax Cuts and Jobs Act would add $3.5 trillion dollars to the country’s deficit over the next ten years, according to the Congressional Budget Office."

The Federal Reserve and Interest Rates

Historically the Fed has not stood on the sidelines during election years; but rather, continues its dual mandate to keep employment at the maximum level and continue price stability, all while keeping independence from politics. Rather, the Fed's policy decisions and actions during election years have been explained by economic events, as opposed to political party or policy.

Kate projected that the Fed might start cutting rates later this year, likely in September, based on current economic trends. “The Fed is very data dependent. They continue to balance their risks and will follow the data trends. And then with inflation trending lower, and the economy starting to slow down but not contracting yet - that has given them that confidence to hopefully start that new cycle.”

A softening job market has helped bring U.S. inflation down to 2.6%, close to the Federal Reserve's 2% goal. Without any large inflationary surprises, a cut in September seems likely as the Fed can maintain its restrictive policy by matching the drop in inflation with a cut in rates.

Legal Challenges, International Relations and Market Stability

Dave Price provided an update on former President Trump’s legal challenges and their potential impact on the election. He emphasized the importance of not letting political emotions drive investment decisions. "Market performance is more influenced by macroeconomic factors than election results," he stated.

The event concluded with a dynamic Q&A session, where attendees posed questions on various topics, including the impact of geopolitical tensions on the market and the future of U.S.-China relations. Kate Gudgel addressed these concerns, stating, "Geopolitical events cause short-term market volatility, but the long-term trend is driven by economic fundamentals and corporate earnings."

All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Gilbert & Cook does not provide tax or legal or accounting advice, and nothing contained in these materials should be taken as such. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. As always please remember investing involves risk and possible loss of principal capital and past performance does not guarantee future returns; please seek advice from a licensed professional. Gilbert & Cook is a Registered Investment Adviser. SEC Registration does not constitute an endorsement of Gilbert & Cook by the SEC nor does it indicate that Gilbert & Cook has attained a particular level of skill or ability. Advisory services are only offered to clients or prospective clients where Adviser and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Adviser unless a client service agreement is in place.

Medicare: Understanding the Basics and Making Informed Choices

A summarized recap from our June 6th Medicare Event presented by Capitol Benefits Group.

Navigating the world of Medicare can be overwhelming, but Medicare is an essential aspect of an individual’s financial plan.  Gilbert & Cook recently hosted an educational seminar entitled “Medicare 101: Understanding the Basics and Making Informed Choices.”   This article will recap the information shared at the seminar.

Medicare Part A, provides coverage for inpatient hospital stays, skilled nursing facility care, home health care, hospice care and drugs administered in a hospital or nursing facility. For the year 2024, the deductible for Part A is $1,632.  Individuals are responsible for paying this amount before Medicare coverage kicks in.

Medicare Part B provides coverage for doctor office visits, outpatient mental health care, outpatient hospital care, home health care and clinical lab services.​ In 2024, the deductible for Part B is $240.​ After meeting the deductible, individuals typically pay 20% of the cost for covered services.  

Medicare Part D provides coverage for prescription drugs.  Medicare Part D is offered by private companies.​ The coverage provided by a Medicare Part D plan, including the covered drug list, can change annually.  You should review your Medicare Part D coverage annually to ensure your plan still covers your prescriptions and meets your needs.

Medicare Supplements, also known as Medigap plans, are designed to fill the “gaps” in Medicare Parts A and B.​ Medicare Supplement plans are offered by private insurance companies and provide coverage for deductibles, coinsurance, and other out-of-pocket costs.  Medicare determines whether a service is covered, not the Supplement carrier.​

Medicare Advantage, also referred to as Part C, is an alternative to original Medicare (Medicare Parts A, B and D with a Medicare Supplement).​ Medicare Advantage plans are offered by private insurance companies and only cover services provided by in-network (HMO or PPO) physicians and facilities.  Many Medicare Advantage plans have a $0 monthly premium and include dental and vision benefits, over-the-counter allowances, and prescription drug coverage.  It's important to review the specific details of each plan, as deductibles and coinsurance can vary from county to county and change annually.  If you choose a Medicare Advantage plan, you will still enroll in Medicare Parts A and B, but the insurance company will manage your care and pay claims, not Medicare.

Medicare Part A has no monthly premium, as long as the individual or his/her spouse paid Medicare taxes for at least 10 years.​ The Medicare Part B premium for 2024 is $174.70 per month.    The premiums for Medicare Parts B and D are adjusted for individuals who earned more than $103,000 in 2022 filing single or married but separate), and for married individuals who earned more than $206,000 in 2022 filing jointly.  The income lookback window for Medicare Parts B and D adjustments is two years.

You apply for Medicare through the Social Security Administration (SSA).  Your Initial Enrollment Period (IEP) typically begins three months before you turn 65 and ends three months after your birthday month. The SSA provides online resources and the option to schedule an appointment with your local office for assistance.​

Online Resources: www.ssa.gov/medicare
Schedule with your local office: www.ssa.gov/locator/

Understanding the basics of Medicare will help you make informed decisions. Whether you choose original Medicare -- Medicare Parts A, B and D plus a Medicare Supplement – or a Medicare Advantage plan, it is important to review the available options and select the plan that best meets your individual needs.  Consider consulting with a Medicare insurance professional for guidance on your Medicare decisions.

June means it's time for your Mid-Year Financial Checklist

What should you be looking at in June?

A mid-year financial check-in is a crucial practice for maintaining and improving one’s financial health. Typically this process is helpful during the month of June so that you can do a thorough review of your finances, including income, expenses, savings, and investments, to ensure you are on track with your annual financial goals.

By taking the time to assess your financial situation mid-year, you can make necessary adjustments, correct any deviations, and reinforce positive habits that will help you achieve your long-term financial objectives. This proactive approach allows for a more manageable and less stressful end-of-year financial review.

Mid-Year Checklist

Budget Review

·        Compare actual income and expenses against your budget.

·        Identify categories where you overspent or underspent.

·        Adjust budget allocations as needed for the remaining months.

Income Assessment

·        Verify all sources of income for accuracy.

·        Consider any changes in income, such as bonuses, raises, or additional income streams.

·        Plan for any expected changes in income for the rest of the year.

Expense Analysis

·        Review all regular and recurring expenses.

·        Identify any new or unexpected expenses that have occurred.

Debt Management

·        List all outstanding debts, including credit cards, loans, and mortgages.

·        Check balances, interest rates, and monthly payments.

·        Explore options for refinancing or consolidating high-interest debt.

·        Develop or update a repayment plan to stay on track.

Credit Health Check

·        Obtain a copy of your credit report from all three major bureaus (Equifax, Experian, TransUnion).

·        Check for any errors or signs of identity theft.

·        Confirm all open accounts are accurate and hard inquiries were approved.

·        Review your credit score and take steps to improve it if necessary.

  Savings Review

·        Evaluate the balance of your emergency fund.

·        Ensure you have at least three to six months of living expenses saved.

·        Review if cash on hand is in a high-yield checking or savings account.

·        Determine if cash in excess of the emergency fund should be invested.

·        Confirm you are taking advantage of employer funded savings such as an employer retirement plan match or HSA match.

·        Review savings goals for short-term and long-term objectives.

·        Adjust savings plan to meet these goals by year-end.

Investment Portfolio Review

·        Assess the performance of your investments.

·        Review asset allocation and rebalance your portfolio if necessary.

·        Check for any changes in risk tolerance or investment strategy.

·        Consider increasing contributions to retirement accounts if possible.

Insurance Coverage

·        Review all insurance policies (health, auto, home, life, umbrella, disability, etc.).

·        Ensure coverage is adequate and up-to-date.

·        Compare policies to find better rates or coverage if needed.

Tax Planning

·        Review the first half of the year's income and tax withholdings.

·        Estimate your tax liability for the year.

·        Make any necessary adjustments to withholdings or estimated tax payments.

·        If you need to make estimates, determine if estimates should be based on the prior year safe harbor or current year estimated liability.

·        Review for strategic opportunities to utilize Roth IRA contributions or conversions.

Financial Goals Update

·        Review your financial goals set at the beginning of the year.

·        Assess progress towards each goal.

·        Adjust timelines or strategies for achieving these goals if needed.

Financial Documentation

·        Organize financial documents and statements.

·        Ensure important documents are accessible and securely stored.

·        Consider going paperless if it helps with organization.

  Meet with your Advisor

·        Schedule a meeting with your Advisor

·        Discuss any major life changes that could affect your financial plan.

·     Seek guidance on any complex financial decisions or adjustments.

This holistic review ensures that your financial plans remain adaptable to any changes that may arise throughout the rest of the year. Reminder to keep an open line of communication with your Advisor for any changes in your financial situation.

March Madness Lessons

Going into March Madness and selecting your bracket, there’s a few things to think about.

We all need a “Coach”

Great coaches excel in providing leadership, instilling confidence, and leveraging their team members' strengths and natural talents. While players execute moves on the court, it's the coach who devises and implements strategies to guide the team effectively.

Maintaining adherence to a plan poses challenges, especially when players face pressure from fans and sports writers to deliver standout performances. Hence, one of the paramount qualities of a competent coach is the ability to foster a trust-based relationship. Without trust, even the most well-crafted plan risks being disregarded.

Similar principles apply to your financial plan. There are many key players such as your advisor, investment manager, and financial services associate. The finest among them work together to assist their clients in maintaining confidence in their goal attainment, even amidst short-term market fluctuations that may suggest otherwise.

Should you rely on guess-work?

The idea behind March Madness — and much of the fun — is predicting how the tournament will unfold and which team will emerge as the winner. You can analyze past performances, or study point differentials, first round win percentages, and any number of other metrics. Ultimately, it’s a guessing game. The same holds true for the market.

Investors employ everything from past pricing history to sophisticated software in their quest to choose the big market winners. Your advisor, however, knows the goal isn’t predicting the next maven. It’s building and managing an investment portfolio that can address your specific goals, for you to live your life of abundance.

Picking the NCAA tournament champion may win you bragging rights or a few bucks from the office pool. But a financial professional's personalized guidance and focus on your long-range financial plan is what can get you working towards a winning investment strategy.

Facts over feelings 
Emotion-driven decisions can shadow both March Madness and investment markets. When there are fluctuations within the markets, investors receive heightened emotional responses. The NCAA tournament's drama mirrors market fluctuations, with intense moments and unexpected outcomes capturing attention. While the thrill of March Madness fades after the championship, emotional investment decisions can have lasting financial consequences. Financial advisors offer relief from daily market stress, guiding investors away from impulsive choices that deviate from their plans.

In both bracket predictions and investing, facts must outweigh feelings. Wishful thinking can often cloud your decision-making, leading to undesirable outcomes. Whether picking a tournament winner based on alma mater pride or following the crowd in investment trends, emotions can affect your judgment. Guidance from your advisor offers a rational approach, utilizing research and expertise. Your advisor is there to help you navigate complex financial landscapes with your best interests in mind.

Individual investors who depend solely on themselves face the potential of succumbing to emotional pitfalls similar to those experienced in March Madness brackets. In contrast, your Gilbert & Cook team can prioritize factual analysis over impulsive decisions, dissuading from following herd mentalities or emotional biases. By adopting a disciplined, evidence-based strategy, investors can minimize risks and effectively pursue long-term financial objectives under the guidance of your advisor.

Everyone can relate to a come-back

Of course, we do love to see an underdog win. The problem with that is underdog successes aren’t that common in the later rounds of the NCAA tournament. Remember that when you pick those teams for your bracket.

The same can be said for investing. It may be fun to select the under-dog investments, but they generally involve an increased level of risk. Work with your Gilbert & Cook Advisor to assess your risk tolerance. Assess this each year to keep you dialed into your goals.

Your financial well-being is no game

Regardless of who you pick to “take it all” for March Madness, life returns to normal the following day —no matter the outcome of the tournament. That championship game is just that: a game. That’s not the case with your financial well-being, it’s your future.

You really can’t do much to increase the odds of a perfect March Madness bracket. You can improve your chances of achieving your financial goals by working with your advisor to put together a thought-out plan to help get you on the winning path, to live a life of abundance®.

---

Gilbert & Cook is an SEC registered investment adviser.  SEC registration does not constitute an endorsement of Gilbert & Cook by the SEC nor does it indicate that Gilbert & Cook has attained a particular level of skill or ability.  This material prepared by Gilbert & Cook is for informational purposes only.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product.  Economies and markets fluctuate.  Actual economic or market events may turn out differently than anticipated.  Gilbert & Cook does not provide tax or legal advice, and nothing contained in these materials should be taken as tax or legal advice.  Past performance is no guarantee of future results.

Date Night 2.0

Date Night 2.0

Valentine's Day can prompt the importance of diversification, both in matters of love and finance. Whether partnered or single, engaging in a financial date night is a wise choice.

Upon entering the dining room, you are greeted by the delicate scent of a meticulously arranged floral centerpiece. Adjacent to a glass of your favorite wine rests an open box of finely curated chocolates. Held in hand are the freshly printed bank statements, signaling the commencement of a romantic financial date night.

Transparency and open communication are vital during these discussions with oneself and one's partner regarding finances. Initiate the conversation by posing thoughtful questions about financial objectives, aspirations, and apprehensions. This exchange cultivates and strengthens the bond between partners as they align their financial visions. Together you want to pursue common objectives, fostering a deeper understanding of oneself in the process.

Questions to Consider:

• What is your current sentiment toward your financial situation?

• Does your current financial status align with your initial expectations?

• What factors contribute to financial stress in your life?

The objective of the financial date night is to explore how financial resources can be optimized to facilitate a life of abundance.

Assessment of Account Balances:
Focus on the present state of finances without dwelling on past circumstances. Compile a brief overview of current account balances, including relevant account details and authentication requirements.

Savings Evaluation:
Determine your savings rate by considering anticipated earnings over the fiscal year. Assess contributions to retirement plans such as 401(k), 457, or IRA accounts, emphasizing simplicity in analysis.

Cash Flow Analysis:
Understand your net income and fixed expenses. Calculate the ratio of fixed expenses to net income, aiming for fixed expenses to remain below 60% of net income.

Goal Setting:
Having laid the groundwork, delineate a strategic direction for the future. Reflect on successes and areas necessitating adjustment to refine financial objectives.

Embracing a financial date night can strengthen your relationship surrounding your finances. Consider the benefits and feel free to make it fun. Cheers to health, love, and a life of abundance!

Preparing for Year End

Ready for 2024?

As the end of the 2023 approaches, we want to be reminded of last-minute items we need to finalize and the goals we want to complete. Here are some of those year-end items you may want to look over and review with your Gilbert & Cook Advisor.

Annual Exclusion Planning
Plan contributions to education accounts and make any desired cash gifts to family members. The annual federal gift tax exclusion allows you to give away up to $17,000 in 2023, meaning you can gift as much as $17,000 to as many individuals as you like this year. Such gifts do not count against the lifetime estate tax exemption amount as long as they stay beneath the annual federal gift tax exclusion threshold.

The end of the year is also a good time to review any trusts you have in place. Using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional who is familiar with the rules and regulations.

Charitable Giving
Individuals can donate cash, appreciated stock, or make donations via a qualified charitable distribution if they are 70 1/2 years old or older. A qualified charitable distribution is a distribution from your Individual Retirement Account (IRA) that can be excluded from income if donated to qualifying charities. The 2023 allowable amount is $100,0000 per taxpayer.

Please consult with your CPA and Advisor to determine if any of these strategies will benefit you.

Retirement strategy
If you aren't already, you may want to consider contributing the maximum to your retirement accounts and review any existing retirement accounts with your employer. If you are eligible to make any catch-up contributions, it may be a great time to also consider making that decision.
2023 limits for individuals:

• $22,500 for 401(k) with $7,500 catch-up provision for individuals 50 and over.

• $15,500 SIMPLE plans with $3,500 catch-up contribution for individuals 50 and over.

• $6,500 Roth IRA / IRA contribution; $1,000 catch-up contribution for individuals 50 and over. 1

Taxes
It's a good idea to consider checking in with your tax or legal professional before year end to discuss questions regarding large expenses or deductions. Think about any sales of property as well as both realized and unrealized losses and gains. Your Gilbert & Cook Advisor can work alongside your tax or legal professional to help provide this information and to also help plan for 2024.

Life Events
Here are some questions to ask yourself when evaluating any large life changes in the last year:
Did you happen to get married or divorced this year?
Did you move or change jobs?
Did you buy a home or business?
Was there a new addition to your family this year?
Did you receive an inheritance or a gift?

All these circumstances can have a financial impact on your life as well as the way you invest and plan for retirement and wind down your career or business. As always, your Gilbert & Cook team is here for you. Please talk to your Advisor if you have any questions regarding your financial situation.

Sources
1. IRS.gov, August 2023

Gilbert & Cook, Inc. is a Registered Investment Adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. This Newsletter is meant for informational purposes only. Advisory services are only offered to clients or prospective clients where Gilbert & Cook, Inc. and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Gilbert & Cook, Inc. unless a client services agreement is in place. Gilbert & Cook, Inc. does not offer tax or legal advice. Consult with an attorney for legal advice and a qualified tax professional for tax advice.

Medicare Open Enrollment

Medicare
Open Enrollment

Runs through December 7th
By: Wendy Stenberg, Advisor

Healthcare needs are an important part of any financial plan. Choosing a plan that best suits your health, lifestyle and budget can have a significant impact on your near-term and long-term health and financial well-being.

Is it time for a Medicare coverage checkup? 
With multiple options available, choosing the best plan can be difficult and daunting. If you ever ask yourself if you are in the right plan or getting the coverage that best suits your health and lifestyle, you may want to have a professional evaluate your current coverage. At Gilbert and Cook, we partner with local Medicare specialists who will meet with you in person to review your existing coverage and either make recommendations for changes or confirm you’re in the most appropriate plan.

The annual Medicare Open Enrollment Period is the time when people with Medicare can review their current coverage and make changes to their Medicare Advantage (Part C) or Medicare prescription drug coverage (Part D) plans. Medicare Open Enrollment runs from October 15 to December 7 each year. During this time, you can:

• Switch from one Medicare Advantage plan to another

• Switch from Medicare Advantage to Original Medicare

• Join a Medicare Advantage plan for the first time

• Switch from one Medicare Part D plan to another

• Join a Medicare Part D plan for the first time

Additional resources that can be helpful are the official Medicare website, and the State Health Insurance Assistance Programs (SHIPs) website.

What to Consider When Choosing a Medicare Advantage or Supplemental Plan
There are several factors to consider when choosing a Medicare Advantage or supplemental plan, such as:

• Your budget: Medicare Advantage and supplemental plan premiums can vary significantly, so it's important to find a plan that fits your budget.

• Your health needs: If you have certain health conditions, you may want to choose a plan that covers those conditions.

• Your preferences: Some plans offer additional benefits, such as coverage for foreign travel or preventive care.

Additional Considerations for Medicare Advantage Plans

• Network of providers: Many Medicare Advantage plans have a network of providers, which can help you save money on your care. Consider whether your preferred doctors and hospitals are in the plan's network.

• Prior authorization: Some Medicare Advantage plans require prior authorization for certain services, which means that you may need to get approval from your plan before you can get certain services.

Additional Considerations for Medicare Supplement Plans

• Standardized plans: Medicare Supplement plans are standardized, which means that they must offer the same basic benefits, regardless of which insurance company you buy them from. This makes it easier to compare plans and find the one that's right for you.

• Guaranteed issue rights: You have certain guaranteed issue rights when you buy a Medicare Supplement plan. This means that you cannot be denied coverage or charged a higher premium based on your health status.

How to Compare Medicare Advantage and Supplemental Plans

In addition to having an in-person appointment with a local Medicare specialist you can compare Medicare Advantage and supplemental plans online or by calling your State Health Insurance Assistance Program (SHIP). You can also use the Medicare Plan Finder tool on Medicare.gov to compare plans.

Please reach out to your Gilbert and Cook Advisor for more information. 

Gilbert & Cook, Inc. is a Registered Investment Adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. This Newsletter is meant for informational purposes only. Advisory services are only offered to clients or prospective clients where Gilbert & Cook, Inc. and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Gilbert & Cook, Inc. unless a client services agreement is in place. Gilbert & Cook, Inc. does not offer tax or legal advice. Consult with an attorney for legal advice and a qualified tax professional for tax advice.

2023 Mid-Year Event - Recap

---

On July 27th, 2023, Gilbert & Cook hosted a mid-year update event, hosting an interactive panelist discussion on financial headlines in the news. Our panel included Chris Cook, CPA, CFA, Chief Investment Strategist, Megan Rosenstiel, CFP®, CDFA®, AWMA®, ADPA®, LTCP​, Director of Advisory Services, and Zach Ripka, CFP®, CPA/PFS, CEPA, Planning & Tax Strategist. Let’s take a look back at some of the topics that have been hitting the headlines.

As discussed by our panelists, Megan Rosenstiel,and Zach Ripka, the sweeping legislation of the SECURE ACT 2.0 has dozens of significant provisions. These updated rules can seem cumbersome and you want to know and understand how these affect you.

First and foremost: Required Minimum Distributions
One of the most critical changes was the increase in the age at which owners of various retirement accounts MUST begin taking required minimum distributions (RMDs). Starting in 2033, RMDs must begin at age 75. If you turned age 72 before January 1, 2023, you must continue taking distributions under the prior rules. But if you are turning 72 in 2023 and have already scheduled your withdrawal, we may want to revisit your plan.

Zach went on to share how there have been revisions to the rules surrounding Roth accounts.  Starting in 2024, pending certain conditions, individuals can roll a 529 Education Savings Plan into a Roth IRA. If a child receives a scholarship, goes to a less expensive school, or doesn't go to school, the money can be repositioned into a retirement account.

Individuals will be able to roll over up to a total of $35,000 from 529 plans to a Roth IRA for the same beneficiary, provided 529 accounts have been held for at least 15 years. The annual rollover amounts will be subject to the annual Roth IRA contribution limit, but not the Roth IRA income limits. Any contributions to a 529 plan within the last 5 years (and the earnings on those contributions) are ineligible to be moved to a Roth IRA.

The new legislation aligns the rules for Roth 401(k)s and Roth 403(b)s with Roth Individual Retirement Account (IRA) rules. This means that starting in 2024, there is no longer a required minimum distribution from Roth accounts in employer retirement plans.

As it should be noted, previously, employer matching contributions were required to be deposited into each employee’s pre-tax account in the retirement plan. The new legislation allows employer matches to the Roth portion of the account for electing employees. However, this now makes any Roth Employer Match, taxable income to the employee.

Lastly, Zach went over some additional highlights that many found helpful. The maximum Qualified Charitable Distributions (QCDs) amount will start indexing for inflation in 2024. Currently, ​the maximum QCD amount is $100,000 per taxpayer. The limit applies on an individual basis, so for a married couple, each person who is at least 70½ years old can make a QCD as long as it remains under the limit (currently $100,000 per taxpayer per year). Individuals will also be able to make a one-time distribution of up to $50,000 to a charitable remainder trust or charitable gift annuity.

---

Our final panelist, Chris Cook, CPA, CFA, Chief Investment Strategist, gave us some insight into the current market while debunking some current headlines.

Headline: Worst Inflation in 20 Years
Reality: On a 4-yr rolling average, inflation is higher than we are used to, but not out of bounds from where we have been the last 30 years. What it is not, currently, is 1981, where the rolling, 4-year average inflation rate was nearly 11%. Inflation continues to cool and will eventually reach longer term trend levels.

In June of 2022, the Index reached the lowest point in over 50 years, indicating extreme consumer pessimism i.e. people just didn't feel good about things. However, in terms of economic data, this was not that bad of times. The unemployment rate was low, around 3.7%, and while interest rates were higher, they weren't as high as other inflationary periods in history. These low points typically represent opportunities for investors especially when economic data is positive or not as bad as we are being lead to believe in the news. Fast forward to today, with a strong stock market recovery, the outcome over the last 12 months has been consistent with previous sentiment bottoms. This is yet another reminder to stay the course as a long-term investor. The Gilbert & Cook Investment Team is constantly positioning portfolios for these opportunities and is ready to act when they arise.

---

Disclosure: The presentation on July 27th, 2023, was meant for informational purposes only. Services offered through Gilbert & Cook, Inc. a Registered Investment Adviser. Please note we cannot accept any type of market orders requested via email or voicemail. Advisory services are only offered to clients or prospective clients where Gilbert & Cook, Inc. and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Gilbert & Cook, Inc. unless a client service agreement is in place. Gilbert & Cook, Inc. does not offer tax or legal advice. Consult with an attorney for legal advice and a qualified tax professional for tax advice.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Welcome Todd Henningsen

It is with great pleasure that we introduce our newest addition
to the Gilbert & Cook team, Todd Henningsen CFA, CFP®.

At Gilbert & Cook, we take great pride in our commitment to providing our clients and their families with sophisticated strategies and genuine relationships, creating a truly unique experience. With the addition of Todd Henningsen to our team, we are confident in our ability to further enhance the exceptional service and support you have come to expect from us.

From the Cedar Valley area, Todd brings a wealth of experience and knowledge to Gilbert & Cook. He has been in the financial industry since 2009, advising clients from various backgrounds and helping them navigate complex financial landscapes. Todd's experience spans investment management, retirement planning, estate planning, and comprehensive wealth management strategies.

Active in his community, Todd is a member of the Financial Planning Association of Iowa, the CFA Society of Iowa and is the board chair of the Community Foundation of Northeast Iowa. He is a board member of the LORAL Trust and served as the past foundation chair of the Rotary club of the Cedar Valley.

Todd's passion for building strong client relationships and his commitment to delivering outstanding service align perfectly with the values and principles that Gilbert & Cook upholds. His addition to our team reinforces our dedication to excellence and ensures that we continue to provide our clients with the highest level of care.

Please join us in extending a warm welcome to Todd Henningsen as he embarks on this new chapter with Gilbert & Cook. We are thrilled to have him as part of our team and are confident that his skills and dedication will greatly contribute to empowering and enabling others to Live a Life of Abundance®.

Iowa Homestead Tax Exemption for Claimants 65 or Older

On May 4, 2023, Iowa Governor Kim Reynolds signed House File 718 into law, bringing a new tax break for some. The new legislation establishes a homestead tax exemption for individuals aged 65 or older. Eligible claimants can now apply for the exemption through the Iowa Department of Revenue, offering potential long-term benefits. This must be done by July 1, 2023.

---

Eligibility Criteria and Exemption Amounts

Under the Homestead Tax Exemption, eligible claimants must be 65 years of age or older by January 1 of the assessment year and must own the home they reside in. The legislation provides two tiers of exemption amounts, depending on the assessment year.

For the assessment year starting January 1, 2023, qualified individuals are eligible for a $3,250 reduction in the taxable value of their property. Starting from January 1, 2024, the exemption amount doubles to $6,500 of taxable value. It's important to note that the exemption directly impacts the taxable value of the property rather than offering an immediate reduction in property tax payments.

 Application Process

To apply for the homestead tax exemption, interested claimants must complete the amended Homestead Tax Credit Exemption (54-028) form provided by the Iowa Department of Revenue. The deadline for submitting applications is July 1, 2023, to your local assessor's office. If the exemption is granted, claimants can enjoy the benefits in subsequent years without needing to reapply, if they continue to meet the eligibility requirements.

If you meet the eligibility criteria, make sure to submit your application before the deadline of July 1, 2023, and stay informed about any future changes or updates issued by the Iowa Department of Revenue.

---

Gilbert & Cook, Inc. is a Registered Investment Adviser. This Newsletter is meant for informational purposes only. Advisory services are only offered to clients or prospective clients where Gilbert & Cook, Inc. and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Gilbert & Cook, Inc. unless a client services agreement is in place. Gilbert & Cook, Inc. does not offer tax or legal advice. Consult with an attorney for legal advice and a qualified tax professional for tax advice.

As seen in Fortune & Entrepreneur Magazines

Fortune & Entrepreneur Magazines honor Linda Cook as an Extraordinary Woman in Business!

Originally Published in February/March 2023 Issue (Original Copy)

Gilbert & Cook prepares individuals and families for life’s transitions. Empowering others to “Live a Life of Abundance.”

With all the cutting-edge technologies at their disposal, the advisors of Gilbert & Cook say their most valuable tool is their hearts.

“We listen generously and meet people where they are,” says Linda Cook, CFP®, who founded the nationally ranked private wealth management firm in 1993. “What I think is so great about meeting someone for the first time is learning about their situation and what they value most. We begin each relationship by helping our clients define what it means for them to ‘live their life of abundance’ and set priorities for their financial future.”

Gilbert & Cook’s reputation for deftly handling complicated situations makes it the firm of choice for high net worth and ultra high net worth families. Thirty years after its founding, the firm now has six partners and employs an in-house investment and planning team, creating sophisticated strategies to manage over $1 billion in assets.

The rapidly growing group of over 34 members includes advisors and analysts as well as tax and planning specialists. With a quest to grow and improve, the firm invests over $100,000 annually in continuing education for its team members, making it among the region’s most highly trained in the industry.

With significant wealth comes complexity, and it is important to have a trusted partner to help you face the tough decisions in complex situations. Gilbert & Cook advisors have become sounding boards and trusted confidantes for those selling a business, adjusting to retirement, receiving an inheritance, coping after a divorce, and experiencing other major life events.

CHOICES, CLARITY, CONFIDENCE

“We are focused on providing clarity through collaboration. We bring together different members of our team with a variety of experience and knowledge to a particular situation. We also work with CPAs, attorneys, and other professionals outside the firm,” says Linda Cook.

As an ensemble, the team at Gilbert & Cook provides clients the support they need throughout their entire financial journey. Multigenerational families with significant wealth can take advantage of the private family services available through the Gilbert & Cook Family Office. The family office provides wealth management services for families and businesses as well as lifestyle management services.

“It’s not about a product or just one solution. It’s about meeting people where they are and developing a strategy together that creates fi nancial security. We work to ensure you’re on the right track with constant monitoring, to help you live the life of abundance that you deserve.” —LINDA COOK

Gilbert & Cook is nationally recognized for excellence. It is among the few RIAs whose growth in assets qualifies it as one of “50 Growers Across America” by Citywire RIA. It has also been named among Financial Times’ Top Financial Advisors and was the winner of a Best Practices Award from InvestmentNews magazine.

---

Gilbert & Cook, Inc. is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Gilbert & Cook, Inc. and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Gilbert & Cook, Inc. unless a client services agreement is in place. Gilbert & Cook, Inc. does not offer tax or legal advice. Consult with an attorney for legal advice and a qualified tax professional for tax advice.

Third Party Ratings: Gilbert & Cook was announced as one of the top two “Growers Across America” in October 2021 and October 2022. CityWire RIA identifi es and selects the fastest growing RIAs in each state by analyzing Form ADV data reported to the Securities and Exchange Commission at the time of publication. Data for this publication is gathered by Discovery Data. No compensation was paid in exchange for inclusion in the “50 Growers Across America.”

The Financial Times 300 Top Registered Investment Advisers is an independent listing produced annually by Ignites Research, a division of Money-Media, Inc., on behalf of the Financial Times (July 2020). Areas of consideration include a 3-year growth rate (2016-19) of assets under management, the company’s age, industry certifications of key employees, SEC compliance record and online accessibility. Neither the RIA firms nor their employees pay a fee to the Financial Times in exchange for inclusion in the FT 300.

To identify the “Best Practices Award” winners, InvestmentNews Research created composite scores which examined rate of growth, profi tability, and productivity levels from 2018 to 2019 for all the participants in the InvestmentNews Financial Performance Study. Final firms were selected and awarded in November 2019. Gilbert & Cook did not pay a fee to participate or to receive recognition on this list.

Announcing Marlis Gilberts Retirement in our 30th Anniversary Year

Pictured Partners: Jerit Tripp, Megan Rosenstiel, Marlis Gilbert, Linda Cook, Chris Cook and Brandon Grimm

2023 brings us a mixture of joy, celebration, and frankly a little sadness. As we celebrate the 30th Anniversary of Gilbert & Cook, we also honor our Partner, Marlis Gilbert as she retires in February 2023.

Marlis Gilbert & Linda Cook turned their friendship and mutual admiration for each other’s work in the financial industry, into what is now a thriving private wealth management firm, managing over a billion dollars and serving individuals and families across the country.

Marlis earned the Certified Financial Planner (CFP®) in 1984, which was ground-breaking at the time. Her certificate from the College of Financial Planning was only the 1,848th in the nation.  “Financial planning strategies deeply interest me and I knew I needed to get as much education as I could to be in the right position to help others.” Marlis shared.

With Linda’s vision and Marlis’s passion for serving the community they realized the value they could bring by merging their strengths. The Gilbert & Cook ensemble that you see today, is what Linda and Marlis have planned and spent their careers developing and growing.

Linda adds, “What I absolutely love about Marlis is that she deeply cares about people and is so good at finding what matters most to them.”  As a firm, we have incorporated this value into the core of what we do – find out what matters most to people and work alongside them to create the financial means to support their life of abundance. Throughout this process, we create genuine relationships which last generations.

In the beginning, Linda and Marlis served clients side by side. This allowed them to see one another’s strengths, learn from each other, grow and refine their individual styles. As the business and team grew, the vision of becoming an ensemble became a reality. That has been the path to the firm we have today.

Over the past 30 years, Gilbert & Cook has grown to include in-house planning and investment teams. This depth of intellectual capital, provides the ability to surround clients with a unique experience and the strategies they need. What Marlis and Linda realized 30 years ago, is now at the heart of Gilbert & Cook… to recognize what each client needs, and tailor specialty services to meet them where they are. The firm is positioned to give current and future clients confidence that the team can provide sophisticated strategies to help clarify their complex situations.  

“You will often hear us tell clients, ‘Always be an expert in your own situation.’ There is a lot of financial noise out there, but what people really need to know and understand is what is relevant to them and their individual situation.” – Linda Cook

Throughout the past 30 years, Gilbert & Cook has worked alongside individuals and families to determine what it means for them to live a life of abundance and set financial priorities based on that definition. Today, each relationship begins with an Abundance exercise, helping them to create that vision.

“Through the years, I have seen the joy of that abundance in our clients’ lives over and over.  My life of abundance includes quality time with my husband and family, a healthy lifestyle through diet and exercise, some travel experiences, and a slower paced life in retirement. The Gilbert & Cook team will continue to help me live my life of abundance through this transition and whatever the future brings.” – Marlis Gilbert

While the team will miss seeing Marlis in person on a daily basis, we will continue to see her in the large and small touches she leaves with us throughout the firm. Marlis sets an example for everyone blessed to know her – in her professional life, in her personal life and now in her retirement life.  She has always been authentic and genuine and now she is modeling what it looks like to retire into her life of abundance in the way she has shown our clients throughout her career.

To celebrate Marlis’ retirement, the Gilbert & Cook team will honor her and our 30th Anniversary on April 13th at Glen Oaks Country Club.

Marlis, we are so grateful for you. You have made an immeasurable impact on the lives that you have touched. Congratulations on your very well-deserved retirement.

2022 Year in Review

2022 was definitely a year that we won’t soon forget. Through it all, we have plenty to celebrate. Here are some highlights from your Gilbert & Cook team!

SECURE ACT 2.0 - What you need to know

In the final days of 2022, Congress passed a new set of rules designed to make it easier to contribute to retirement plans and access those funds earmarked for retirement.

SECURE 2.0 builds upon its predecessor, the Setting Every Community Up for Retirement Enhancement (SECURE) Act, which was passed in 2019.

The sweeping legislation has dozens of significant provisions. To help see what changes may affect you, the major provisions of the new law are broken down into four sections below.

New Distribution Rules

The RMD age will rise to 73 in 2023. By far, one of the most critical changes was increasing the age at which owners of various retirement accounts MUST begin taking required minimum distributions (RMDs). Starting in 2033, RMDs must begin at age 75. If you turned age 72 before January 1, 2023, you must continue taking distributions under the prior rules. But if you are turning 72 in 2023 and have already scheduled your withdrawal, we may want to revisit your plan.1

Reduction in the RMD Excise Tax.  Previously a 50% excise tax was imposed if you missed taking an RMD by the deadline. Starting in 2023, if you miss an RMD for any reason, the penalty tax drops to 25%. If you fix the mistake promptly, the penalty may drop to 10%.2

New Accumulation Rules

401(k) and Employer-sponsored Plan Catch-Up Contributions. Starting January 1, 2025, employees aged 60 through 63 can make catch-up contributions equal to the greater of $10,000 (indexed annually for inflation) or 150% of the regular catch-up limit to workplace retirement plans. Also, the catch-up amount for people aged 50 and older in 2023 has increased to $7,500.  However, beginning in 2024, all catch-up contributions for those earning more than $145,000 in a particular year will have to be (taxable) Roth contributions.3 

Traditional and Roth Catch-Up Contributions. Currently, individuals aged 50 or older can make an additional catch-up contribution to a Traditional or Roth IRA up to $1,000 per year. In 2024, the $1,000 amount will be indexed for inflation on an annual basis.

Automatic Enrollment. Beginning in 2025, the Act requires employers in newly-established plans to enroll employees into workplace plans automatically at a 3% contribution rate. The contribution rate automatically increases by 1% per year until the employee is contributing at least 10%.  However, employees can choose to opt-out.4

Student Loan Matching. In 2024, companies can match employees’ student loan payments with retirement contributions. The rule change offers workers an opportunity to receive employer-funded retirement plan contributions while paying off their student loans.5

Revised Roth Rules

529 to a Roth. Starting in 2024, pending certain conditions, individuals can roll a 529 education savings plan into a Roth IRA. If your child gets a scholarship, goes to a less expensive school, or doesn't go to school, the money can get repositioned into a retirement account. Individuals will be able to roll over up to a total of $35,000 from 529 plans to a Roth IRA for the same beneficiary, provided 529 accounts have been held for at least 15 years. The annual rollover amounts will be subject to the annual Roth IRA contribution limit, but not the Roth IRA income limits. Any contributions to a 529 plan within the last 5 years (and the earnings on those contributions) are ineligible to be moved a Roth IRA.6

SIMPLE and SEP. From 2023 onward, employers can make Roth contributions to Savings Incentive Match Plans for Employees or Simplified Employee Pensions.7

Employer Matching Roth Contributions. Previously, employer matching contributions were required to be deposited into each employee’s pre-tax account in the retirement plan. The new legislation allows employer matches to the Roth portion of the account for electing employees.  Note, however, that electing a Roth match will subject the employee to taxation on the matching amount contributed to the plan by the employer.

Roth 401(k)s and Roth 403(b)s. The new legislation aligns the rules for Roth 401(k)s and Roth 403(b)s with Roth Individual Retirement Account (IRA) rules. Effective January 1, 2024, the legislation no longer requires minimum distributions from Roth Accounts in employer retirement plans.8

Act Highlights

Support for Small Businesses. Beginning January 1, 2023, the new law will increase the credit to help defray the administrative costs of setting up a retirement plan. The credit increases to 100% (from 50%) for businesses with less than 50 employees. By boosting this credit, lawmakers hope to remove one of the most significant barriers to small businesses offering a workplace plan.9

Qualified Charitable Donations (QCD). From 2023 onward, QCD donations will adjust for inflation. The limit applies on an individual basis, so for a married couple, each person who is at least 70½ years old can make a QCD as long as it remains under the limit (currently $100,000 per taxpayer per year).9  Individuals will also be able to make a one-time distribution of up to $50,000 to a charitable remainder trust or charitable gift annuity. 10

New Exceptions to the 10% early-withdrawal penalty. Generally, distributions from a retirement savings account before age 59½ are subject to an early withdrawal penalty unless an exception applies. The new legislation provides several new exceptions to the penalty, including terminal illness, domestic abuse, payment of long-term care insurance premiums, to recover from a federally declared disaster area, and an emergency personal expense.  

Retirement Savings Lost and Found. The Act intends to establish a searchable database for lost 401(k) plan accounts within two years of the legislation’s enactment.

Saver’s Credit transitioning to a Saver’s Match. Currently, low- and moderate-income taxpayers receive a credit up to $1,000 for retirement savings. Starting in 2027, the credit transitions into a match that will be contributed to the individual’s retirement account.

Other Highlights

There are several additional provisions in the new SECURE Act 2.0 legislation. A few examples include providing credits for enrolling military spouses immediately in employer plans, expansion of lifetime income products in retirement plans, improved retirement plan coverage for part-time workers, S-Corporation ESOP opportunities, and several other provisions.

The provisions listed above summarize only a portion of the Secure Act 2.0. The Gilbert & Cook Team looks forward to analyzing the impact the changes have on your financial situation to best understand how to assist you in Living a Life of Abundance. 

Also, retirement rules can change without notice, and there is no guarantee that the treatment of specific rules will remain the same. This article intends to give you a broad overview of SECURE 2.0. It is not intended as a substitute for real-life advice. If changes are appropriate, we will outline an approach and work with your tax and legal professionals, if applicable.

Sincerely,

Gilbert & Cook Team

---

The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced to provide information on a topic that may be of interest. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Citations:

1. Fidelity.com, December 23, 2022

2. Fidelity.com, December 22, 2022

3. Fidelity.com, December 22, 2022

4. Paychex.com, December 30, 2022

5. PlanSponsor.com, December 27, 2022

6. CNBC.com, December 23, 2022

7. Forbes.com, January 5, 2023

8. Forbes.com, January 5, 2023

9. Paychex.com, December 30, 2022

10. FidelityCharitable.org, December 29, 2022

Why is Life Insurance Important?

Life Insurance Misconceptions

By Reece Oleson, CFP®, RICP®, CEPA
Director of Financial Planning

Life Insurance is an important financial planning tool. Life Insurance benefits can be designed to meet many goals, such as replacing income, paying off debts, or fully funding college. Let’s talk about three common misconceptions about Life Insurance:

1.    I don’t need Life Insurance. 

If your spouse or children’s lifestyle today or in the future would be negatively impacted without your income, Life Insurance can provide additional assets to support their lifestyle.  

2.    Life Insurance is expensive. 

Term insurance is very cost-efficient. For example:

• A 20-year term policy with a $1,000,000 death benefit for a 40 year old man at standard rates is about $100/month.*

• A 20-year term policy with a $1,000,000 death benefit for a 40 year old woman at standard rates is about $80/month.*

At standard plus, preferred, or preferred plus rates, premiums are even cheaper!

3.    I already have Life Insurance through work, so that should be enough. 

Life insurance through employers is a good start, especially when you are younger, but isn’t generally enough to replace the insured’s income. Most employers only provide around $50,000 to 1 year’s salary of life insurance at no cost. 

Many employers do allow you to purchase additional coverage, and it may be easy to purchase as it often does not require underwriting. It is likely more expensive than term life purchased on your own, especially for older workers as most premiums increase as you age, and you may not be able to get enough coverage to meet your needs.  

Term life insurance is generally the most affordable life insurance option. It provides coverage when you need it and goes away when you no longer need it. 

The money you save by purchasing term insurance can be used toward your other goals, whether that is a purchase for today or saving for tomorrow! 

Contact Gilbert and Cook to analyze your life insurance needs & provide cost-efficient options to meet those needs.

*Source: TNBC term life insurance quotes for Iowa resident, 11/16/2022.

Wendy Stenberg joins Gilbert & Cook!

"I am thrilled to be joining the private wealth management firm of Gilbert & Cook where we are committed to helping people live more meaningful and fulfilling lives. We employ a process to crystalize goals, provide clarity, and instill confidence with our clients to help them to Live a Life of Abundance. At Gilbert and Cook, it’s more than just the numbers, it’s about living your best life." - Wendy

Wendy Stenberg joined Gilbert & Cook as an Advisor in November 2022. With over thirty years of experience, Wendy is a dedicated and experienced wealth management professional who is passionate about exceeding client expectations and building long-term meaningful relationships to help clients achieve personal goals and aspirations. 

In her new role, Wendy works in collaboration with other members of the Gilbert & Cook team to provide sophisticated strategies and service to her clients. Gilbert & Cook is thrilled and honored to welcome Wendy to the team. We are delighted that she has decided to lend her talents and experience to inspire abundance with our clients and Gilbert & Cook family.

Welcome Wendy!