Financial Transitions, Inc.
Retirement and IRMAA specialists
Get to know us
Three principles are at the forefront of our retirement planning designs:
Maximize Income
Have an Estate Plan
Our Design Considerations: IRMAA, Social Security, and Medicare
IRMAA represents an increase to Medicare Part B and Part D standard monthly premiums and is determined by the Social Security Administration. Singles who have income of $103,000 or less, and couples who have income of $206,000 or less, do not pay an IRMAA premium. Notably, this is taxable income which is not limited to wages. Individuals or couples with wages less than these thresholds may still be affected by IRMAA.
Medicare Part B is taken directly from your Social Security benefit, so you may not understand the magnitude of the costs until you reach the point where you haven't received a Social Security check, but instead, the government requests a check from you to continue your Medicare coverage. There is no zero-floor with IRMAA: your entire Social Security benefit, plus some, can be taken to pay for your Medicare coverage. The worst part? You cannot opt-out of Medicare if you want to receive your Social Security lifetime benefit.
Your Social Security benefit is locked in, Medicare costs and out of pocket expenses are not. They are guaranteed to inflate unless something drastically and constitutionally changes regarding the healthcare system in the USA.
Our Design Considerations: “The Fragile Decade”
The "Fragile Decade" is the five years before retirement and the first five years of retirement. These years are 'fragile' particularly because the market is fickle.
For traditional retirement accounts, there are minimum amounts that must be withdrawn after a certain age (RMDs), regardless of if you need the money or not. With this requirement, you lose the ability to time distributions to solely favorable times in the stock market. When the market is down and distributions are taken from a retirement account, the potential to bounce back is lost—something that people in old age don’t expect as they've lived through and fully recovered from many down markets. The difference is, once you are subject to RMDs, you are forced into the distribution phase of retirement, much different than the accumulation phase that you are used to.
About Us
The owner of Financial Transitions, Inc. has served clients throughout Omaha and surrounding areas for 50 years. We are a service-focused, full-spectrum financial advisory firm that operates with the belief that authenticity and integrity form the most fulfilling advisor-client relationships for both parties.
Areas of Service
- Retirement account management
- Social Security claiming strategizing
- Tax management
- Wealth transfer
- Fixed and Variable annuities
- Life insurance
- Long-term care planning
- Disability income insurance
With how long we have been in business, time and time again we've seen our clients financial aspirations become a reality, and we'd like to offer the same peace of mind to everyone. Tell us what you want your future to look like, then we'll transparently tell you if we can make it happen, and how. More times than not, people discover that their ideal financial future is more than feasible with the guidance of experts.
With today's conglomeration of financial options, it is more important than ever to be served by an unbiased advisor. In fact, we have no obligation to any company (disclosure 4). This independence opens our client up to truly the best options for their needs, chosen from a broad variety of products provided by only highly rated companies. In addition to this, we are legally bound by stricter suitability guidelines than those of broker-dealers. At all times, we have a fiduciary duty to place the best interest of the client above our own.
Meet the Founder
Don proudly holds his Certified Financial Planner (CFP®) designation, a highly respected recognition in the industry. In addition, he has the IRMAA Certified Planner (IRMAACP) designation, which is the only FINRA recognized certification concerning IRMAA. As of 2023, there are less than 100 people across the country who hold this designation.
In the past decade, Don has specifically become engrossed with retirement planning as he believes that most advisors in the financial industry do their clients an irreparable misjustice by continuously and mistakenly emphasizing rate of return and growth as primary goals when nearing retirement. Don's foremost concerns for tax management, controlling health care expenses, and planning for net income, exposes the biggest blind spots of other advisors with tunnel vision on growth and return; what is all that growth and return worth to clients if it’s all squandered by the ordinary income tax and the risk of sequentially negative returns in retirement?
Donald Mundy, CFP®
founder and president
Financial education is integral to who we are.
Don is dedicated to giving back what he has learned throughout his career and pursuing his top priority: financial education. He hosts no-charge public workshops on various financial topics. His mission is to equip individuals and families with financial knowledge in order to enjoy higher standards of living and prepare more wisely for retirement. Times are getting harder, but Don constantly studies methods and strategies that allow people to live comfortably in spite of the increasing difficulties of modern-day America.
Don has attracted more than 700 attendees between all of his workshops over the past decade.
Current Workshop
This workshop is aimed specifically toward people (singles and couples) who have substantial amounts in qualified accounts such as 401ks, 403bs, Traditional IRAs, TSPs. Additionally, we have noticed that IRMAA particularly affects those with pensions. Even if your income is not necessarily high now, you may be affected by IRMAA once RMDs and defined benefits begin. Ages 50+ will benefit most from this workshop. If you're unsure if this workshop will benefit you, feel free to call us prior to signing up.
IRMAA: The “Hidden” Tax in Retirement
Disclosures
1) Financial Transitions, Inc. does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.
2) Not associated with or endorsed by the Social Security Administration or any other government agency.
3) Fixed Annuities are long term insurance contacts and there is a surrender charge imposed generally during the first 5 to 7 years that you own the annuity contract. Withdrawals prior to age 59-1/2 may result in a 10% IRS tax penalty, in addition to any ordinary income tax. Any guarantees of the annuity are backed by the financial strength of the underlying insurance company. Please consider the investment objectives, risks, charges, and expenses carefully before investing in Variable Annuities. The prospectus, which contains this and other information about the variable annuity contract and the underlying investment options, can be obtained from the insurance company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest. The investment return and principal value of the variable annuity investment options are not guaranteed. Variable annuity sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the annuity is surrendered.
4) Securities and Investment Advisory Services offered through Brokers International Financial Services, LLC. Member SIPC. Brokers International Financial Services, LLC is not an affiliated company.
Sign Up for a Workshop
Contact Us
402-359-1900
15808 W Dodge Rd Ste 200C, Omaha, NE 68118
don.mundy@financialtransitions.net
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