How the Saxton’s Reduced Their Taxes!!!

The Saxtons had gotten into the dairy equipment industry in the early 1980’s.

William had started in with the service calls, and in a few years was repping locally for a dairy equipment manufacturer.

They had their tight moments – particularly in 2008 – but overall they did okay.


A few years ago, the Saxtons came in to speak with us.

They had handed the business off to their daughter and son-in-law and wanted to secure their overall plan.

They also wanted to see if they could do anything to reduce their taxes.


When we went through the DREAM Retirement Process, it became very clear that two of their major goals was traveling and charitable giving.

They wanted to go back to the “Old Country,” look up quite a few families, and see the places of origin for ancestors on both sides.

They also intended to leave each of the three kids (and eleven grandkids) in as good a financial place as possible.


Mr. and Mrs. Saxton said they thought they were comfortable with their income level, their risk, and their investments, but they agreed that we should run the risk numbers.

It turned out they were taking a bit more risk than necessary.

Even though their income was fine, they did have some losing and underperforming stocks.


The blueprint we created for them included a process to weed out the losers, adjust the risk level, and implement a process to manage and monitor their portfolio on an ongoing basis.


One of the underperforming funds was a stock that, they had sold it, would have given them a huge hit for capital gains.

It was over half of a million in one company – fairly risky by any standard.

Part of the Blueprint was to transfer that stock into a capital gains avoidance trust.


Within that trust, they were able to sell the stock without paying capital gains.

This gave them an income tax deduction of nearly $90,000, and it also guaranteed another $25,000 in income for their retirement.

They were happy about that.


When we took a closer look at their taxes, they found about what they expected: a quarter of their wealth would be going to the IRS in taxes upon their passing.

They rankle at the idea of the IRS getting an upwards of $500,000.


Another part of the legacy they wanted to pass on was the value of chariable giving.

They wanted their kids and grandkids to practice giving in a real way.

Most people have a plan to give to their kids than have their kids give it away.

But nobody gets any kind of tax break doing this.

The IRS will get virtually half of those retirement accounts in the hidden estate tax.


Instead of using this method, the Saxtons left their IRA’s to a family-controlled charity.

After their deaths, the people in the family-controlled charity will be able to make charitable gifts each year, carrying on the process of giving that their parents wanted.

And these gifts remain tax free.


Dad and Mom reinforced their value of giving back while saving taxes – one of the reasons they came to us in the first pace.


When their DREAM Blueprint was complete, the Saxtons were able to give upwards of $5 million to their kids and grandkids.

2 Million to charity

And NOTHING to the IRS.


They told us, “We really have confidence and clarity of mind now. We know that what we have in place will guarantee our wishes. am we’re free to do our traveling and retirement fun.”


They have greater peace of mind and complete freedom now.
They thought they were ok, and they truly were ok – but now they are more than okay.


They can live their DREAM Retirement with confidence and peace that they will also leave a legacy!


Michelle Bertram and Beverly Bertram are financial advisors living in Mineral Point WI and serving the surrounding communities. Michelle Bertram does financial planning for retirees along with business consulting. Beverly Bertram specializes in retirement planning and income planning for her clients. Michelle Bertram and Beverly Bertram are authors of the book, Creating You DREAM Retirement and creators of the DREAM Retirement Process.
Serving Madison WI, Verona WI, Mount Horeb WI, Barneveld WI, Dodgeville WI, Dubuque IA, Platteville WI, Lancaster WI, Cuba City WI, Fennimore WI, Darlington WI, Monroe WI, Spring Green WI, Black Earth WI and beyond.

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