taxes

Hidden Tax Benefits of Long-term Care Planning

By Tom Strangstalien, Insurance Advisor

We’re well into the tax season, filing our returns for 2024 and planning for the 2025 tax year, and this is a perfect time to explore the hidden tax advantages offered by diligent long-term care planning.

Some things to consider:

  • Did you know tax-qualified long-term care policies are tax deductible?
  • Do you have funds accumulated in your Health Savings Account that you’re not sure what to do with?
  • Did you know that you can pay premiums for a tax-qualified long-term care insurance policy with your HSA funds?
  • Did you know that any benefits paid out by a qualified long-term care insurance policy are not taxable as income?
  • Are you looking for more tax deductions?

Tax-qualified long-term care insurance premiums can be combined with other medical expenses and be deductible for those who itemize their returns. The sum of medical expenses must exceed 7.5% of one’s adjustable gross income to be deductible. If this is not the case, the premiums alone can be deductible. There are limits on the amount of the premiums that are deductible, based on a taxpayer’s age and adjustable gross income. For this tax year (2024), anyone over the age of 70 can deduct up to $5,880 on their federal tax return. A taxpayer can deduct premiums as medical expenses OR deduct the premiums alone – not both.

To be considered qualified, these policies must adhere to the guidelines established by the Health Insurance Portability and Accountability Act (HIPAA) of 1996. This means they must provide coverage for medically necessary care for individuals who are chronically ill and unable to perform at least two activities of daily living such as bathing, dressing, or eating, or who require supervision due to cognitive impairments.

2024 Qualified Long-Term Care Insurance Premium Deduction Limits 

Long-term care insurance premiums can also be deducted on your state tax return. Each state varies with the qualifications and limits that are deductible, so you should consult a financial advisor or tax professional in your state.

If you have accumulated funds in your health savings account, purchasing long-term care protection can be a smart place to use these funds. Not only are you purchasing long-term care insurance with “pre-tax” dollars, any benefits received by the policy will be tax free! It is important to know that if HSA funds are used to pay premiums, these premiums are not eligible to be deductible on your federal or state tax return as mentioned above.

Benefits received by a qualified long-term care policy are not taxable as income. This can also be the case with the increasingly popular “hybrid life insurance policies” that contain long-term care insurance benefits. These hybrid policies can be viewed as a win-win-win and there are many plans available. These policies offer a life insurance amount that is income tax free upon death, an accelerated long-term care benefit where benefits are not taxed as income (subject to the IRS 2025 per diem daily benefit of $420), and a cash value component where cash value amounts of the contract accumulate on a tax deferred basis.

I’m a big fan of the hybrid life insurance policies that offer long-term care benefits. In many cases where I have assisted in long-term care insurance planning, we have utilized an “indexed universal life” policy. Let’s consider the purchase of a $1,000,000 contract. One of three things can happen. If the policy is used for long- term care expenses, most of the policy amount can be used to pay the expenses tax free. When the policyholder passes away, the designated beneficiary will receive the unused portion of the $1,000,000 on an income tax free basis. Lastly, you can choose to access the cash value of the contract if needed in the form of a withdrawal or loan (tax treatment will vary based on many factors). The return on the funds in the cash value account is contingent on the performance of selected stock market indexes. A better alternative to self-funding long-term care? In many cases a resounding yes!

There are numerous tools and options available for long-term care planning. If you want to explore your personal long-term care plan to determine your best course of action, do not hesitate to reach out to the WisMed Assure team at insurance@wismedassure.org, or call 608.442.3810. 

Picture of Tom Strangstalien

Tom Strangstalien

Insurance Advisor

Reach out to me to learn more. You can contact me at tom.strangstalien@wismedassure.org or 608.442.3730.

Send me an email!
Picture of Tom Strangstalien

Tom Strangstalien

Insurance Advisor

Reach out to me to learn more. You can contact me at tom.strangstalien@wismedassure.org or 608.442.3730.

Send me an email!

Note: This article is for informational purposes only and should not be considered as insurance advice related to your specific policy or situation. Please consult with a qualified insurance advisor or professional before making any policy decisionsFull disclaimer and contact information.

Last-Minute Money Moves for 2024 Taxes

By Mark Ziety, CFP®, AIF®, Financial Advisor, WisMed Financial

As the April 15 tax deadline approaches, physicians still have opportunities to adjust and improve their 2024 tax returns.

Contribute to a Health Savings Account

If you have a high-deductible health plan (HDHP), you may be eligible to contribute to a Health Savings Account (HSA). For 2024, the contribution limits are $4,150 for individuals and $8,300 for families. Contributions can be made until the tax filing deadline. Just remember to reduce your contribution by the amount your employer contributed. HSA contributions are tax-deductible, growth is tax deferred, and withdrawals used for qualified medical expenses are tax-free. This triple tax advantage makes HSAs a powerful tool for health care costs and reducing your tax burden. As a bonus, after age 65 you can use the HSA penalty free for non-health care spending too; you’ll just pay income tax on the withdrawals.

Max Out Your IRA Contributions

The IRS allows you to make contributions to your Individual Retirement Account (IRA) for the 2024 tax year until the filing deadline (April 15, 2025). If you haven’t hit the maximum contribution limits yet ($7,000 for those under 50 and $8,000 for those 50 and older or your earned income if less), this is a great way to reduce your taxable income while boosting your retirement savings. However, most physicians with access to employer retirement plans will find they cannot deduct the IRA contribution if their modified adjusted gross income (MAGI) exceeds $77,000 single or $123,000 married filing joint. If that’s your case, use the next strategy: the backdoor Roth IRA instead.

Backdoor Roth IRA Contributions

For higher-income earners, consider one of the most beneficial tax strategies: the backdoor Roth contribution. You can contribute to a traditional IRA by April 15 for 2024 (whether deductible or not) and then convert those funds to a Roth IRA. This move allows you to get money into a Roth IRA where your earnings will grow tax-free in the future. See the full Backdoor Roth IRA article for more.

Self-Employed Income? Max Your Retirement Contributions

If you’re self-employed or have 1099 income, you still have time to contribute to a SEP IRA or individual 401(k) for 2024. These plans allow for higher contribution limits compared to other retirement plans, and contributions are tax-deductible. You can contribute up to 25% of your income or $66,000 (whichever is less) into either plan, and the deadline to set up and contribute is the same as your tax filing deadline, including any extensions.

Contribute to a Wisconsin Edvest 529 Plan

Wisconsin taxpayers can deduct Edvest contributions up to $5,000 per beneficiary from their state income tax return. If you make the contribution for 2024 by April 15, 2025, be sure to request that Edvest code for last year. Tip! The tax deduction is per beneficiary and the beneficiary can be anyone in the family. Savvy savers open multiple accounts and name each member of the family as a beneficiary, including parents, to maximize the tax deduction. When the child is ready for college, simply change the beneficiary.

These last-minute moves, before filing your 2024 tax return, can help you reduce your tax bill and position yourself for financial success in the coming year. For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

Mark Ziety, CFP®, AIF®

WisMed Financial, Inc. part of the Wisconsin Medical Society

Picture of Mark Ziety, CFP®, AIF®

Mark Ziety, CFP®, AIF®

Executive Director of WisMed Financial
Certified Financial Planner™ Professional

Reach out to me to learn more. You can contact me at mark.ziety@wismedfinancial.org or 608.442.3750.

Book an appointment with me!
Picture of Mark Ziety, CFP®, AIF®

Mark Ziety, CFP®, AIF®

Executive Director of WisMed Financial
Certified Financial Planner™ Professional

Reach out to me to learn more. You can contact me at mark.ziety@wismedfinancial.org or 608.442.3750.

Book an appointment with me!

Note: This article is for informational purposes only and should not be considered as financial or tax advice. Please consult with a qualified financial advisor or tax professional before making any financial decisions. Full disclosures.

2025 Volume 1

Working with WisMed Assure Helps Keep Medical Malpractice Rates Low in Wisconsin

By Shawna Bertalot, CIC, ACI, WisMed Assure President

Clipboard with documents about medical malpractice and gavel.

Some good news for Wisconsin Physicians, Certified Registered Nurse Anesthetists (CRNA), and the hospitals and clinics that employ them. At the last meeting of The Board of Governors of the Injured Patients and Families Compensation Fund (IPFCF) in December 2024, the Actuarial Committee made the recommendation to keep rates the same for the IPFCF’s Fiscal Year July 1, 2025 to July 1, 2026. 

Read more…


Last-Minute Money Moves for 2024 Taxes

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

Road sign that reads 'Smart Money next exit'

As the April 15 tax deadline approaches, physicians still have opportunities to adjust and improve their 2024 tax returns.

Contribute to a Health Savings Account If you have a high-deductible health plan (HDHP), you may be eligible to contribute to a Health Savings Account (HSA). For 2024, the contribution limits are $4,150 for individuals and $8,300 for families. Contributions can be made until the tax filing deadline.

Read more…


Hidden Tax Benefits of Long-term Care Planning

Documents on table for the premise of calculating the amount needed for retirement and Long Term Health Care.

By Tom Strangstalien, Insurance Advisor

We’re well into the tax season, filing our returns for 2024 and planning for the 2025 tax year, and this is a perfect time to explore the hidden tax advantages offered by diligent long-term care planning.

Read more…


Tenants Improvements and Betterments, Is Your Clinic Properly Insured?

Clinic renovation

By Laura Weber, Senior Large Account Director

If you rent space for your office, clinic, or even just for storage, it’s important to understand per the lease terms which party (lessee versus lessor) is responsible for covering property at the location. The agreement with the building owner should specify:  if a property damage occurs at the rented location, who is responsible for securing insurance to cover walls, flooring, permanent fixtures, including any updates you may have made to the property whether fixed or removable.

Read more…


WisMed Assure Implements Employee Navigator to Enhance Benefits Administration

Person presents employee benefits options on a digital interface.

By Martin Hurst, Insurance Service Representative

WisMed Assure is taking a significant step in modernizing benefits administration for our employee benefits clients by implementing Employee Navigator (a leading benefits management platform designed to streamline enrollment, improve efficiency, and enhance overall experience for both employers and employees). This cloud-based platform serves as a central hub for benefits management, integrating with insurance carriers, payroll systems, and HR software to create a seamless and efficient process.

Read more…


Good Samaritan Law

By Jensen Peck, Business and Professional Insurance Executive

person helping jogger in distress

Good Samaritan Laws in Wisconsin are vital for protecting physicians who provide emergency care outside of a clinical setting. These laws encourage medical professionals to offer immediate assistance in emergencies without the fear of legal recourse, allowing medical professionals to extend their care beyond hospitals and clinics. However, it is important to be aware of when the law protects you and when it may not apply.

Read more…


Investing in Private Equity: A Pre-IPO Opportunity

By Mark Ziety, CFP®, AIF®, Financial Advisor, WisMed Financial

Private equity offers a unique opportunity to invest in promising companies before they go public. Unlike publicly traded stocks, which are bought and sold on stock exchanges, private equity investments are made in privately held companies.

How Does Private Equity Work?

Private equity firms raise capital from investors, including individuals, institutions, and pension funds. They use this capital to invest in privately held companies through strategies such as:

  • Acquiring existing businesses
  • Funding expansion
  • Restructuring underperforming companies

Why Invest in Private Equity Before an IPO?

  • Potential for Higher Returns: Private equity firms often target high-growth companies. If these companies succeed, their value can increase significantly before an IPO, potentially yielding substantial returns for early investors.
  • Reduced Market Volatility: Unlike publicly traded stocks, private equity investments are not subject to daily market fluctuations, providing a more stable investment environment.
  • Exclusive Investment Opportunities: Private equity firms often have access to investment opportunities that are not available to the general public.

How to Invest in Private Equity

  • Direct Investment: Some private equity firms accept direct investments from individuals. However, this typically requires a substantial minimum investment and may not be accessible to all investors.
  • Private Equity Funds: Many investment firms offer private equity funds that pool capital from multiple investors. These funds provide diversification and are managed by professionals, making them a more accessible option for many investors.
  • Venture Capital Funds: Venture capital funds are a subset of private equity that focuses on investing in early-stage companies. While they often involve higher risk, they can also offer significant growth potential.

Important Considerations

  • Liquidity: Private equity investments can be illiquid, meaning it may be difficult to sell your investment before the company goes public or has another liquidity event.
  • Risk: Private equity investments carry higher risk compared to publicly traded stocks. There is no guarantee of success, and the potential for loss is greater.
  • Fees: Private equity firms typically charge management fees and performance fees, which can impact your overall returns. It’s important to understand these fees before investing.
  • Tax Implications: Consult with a tax advisor to understand the potential tax implications of private equity investments.

Investing in private equity before an IPO can offer significant rewards, but it’s essential to be aware of the associated risks and benefits. Conduct thorough due diligence on private equity firms and their investment strategies. Consider diversifying your portfolio by investing in multiple funds. And always consult with a qualified financial advisor to make informed decisions. Want more investing tips? See the 7 ways to improve investment performance.

For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

Mark Ziety, CFP®, AIF®

WisMed Financial, Inc. part of the Wisconsin Medical Society

Note: This article is for informational purposes only and should not be considered as financial or tax advice. Please consult with a qualified financial advisor or tax professional before making any financial decisions. Full disclosures.

Essential Estate Planning Documents in Wisconsin

By Mark Ziety, CFP®, AIF®, Financial Advisor, WisMed Financial

Planning your estate isn’t just about paperwork; it’s about giving your loved ones peace of mind. Here’s a breakdown of key documents in a Wisconsin estate plan:

  • Last Will and Testament: This document directs how your assets are distributed and names guardians for minor children. It goes through probate court, so consider a trust to keep your affairs private and for faster distribution.
  • Revocable Living Trust: A trust offers flexibility and privacy, allowing assets to avoid probate and pass smoothly to beneficiaries. It can also include legal protections for your assets. While you’ll still need a will, it can simply state that assets transfer to the trust.
  • Powers of Attorney: Grant someone you trust the authority to make decisions on your behalf. There are separate powers of attorney for finances and health care. Consider a “springing” power of attorney that takes effect only when you’re incapacitated.
  • Advance Directive (Living Will): This document outlines your preferences for medical care if you can’t communicate them. It guides your health care providers and loved ones, especially regarding end-of-life decisions.
  • Beneficiary Designations and Titling: Assets like life insurance and retirement accounts typically go directly to designated beneficiaries, bypassing your will or trust. Ensure your beneficiaries are up to date and follow the language your attorney provides such as naming your trust as beneficiary rather than a person. Your attorney may also recommend changing the title of some assets to your trust.
  • Guardianship Designations: Choose a guardian for your minor children in your will. Discuss this responsibility with them beforehand to ensure they’re willing and able.
  • Community Property Agreement (if married): Wisconsin law treats certain marital assets as “community property.” This agreement clarifies which assets fall under this category and allows for potential tax benefits and easier transfers to trust.
  • Letter of Instruction (Optional): While not legally binding, this letter provides guidance to your executor or trustee regarding your wishes, funeral arrangements, and other important details. Including a list of assets and liabilities can further streamline the process.

Remember: Estate planning, like taxes, retirement savings, investments, and insurance, is one of the important components in a proper financial plan. Find additional estate planning resources here.

For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

Mark Ziety, CFP®, AIF®

WisMed Financial, Inc. part of the Wisconsin Medical Society

Note: This article is for informational purposes only and should not be considered as financial or tax advice. Please consult with a qualified financial advisor or tax professional before making any financial decisions. Full disclosures.

Life, Death and Taxes

By Lisa Koerner, Insurance Advisor

If you are looking for some creative ways to avoid paying taxes, don’t overlook the benefits of life insurance. There are several different types of life insurance policies that serve different objectives, the greatest is a tax-free death benefit for your beneficiaries. Also, the death benefit does not go through probate, so only your beneficiaries can receive the money. There are a few things to look for when searching for the right life insurance.

When choosing life insurance programs, term life policies are typically the most popular. Term policies offer a larger death benefit for a smaller premium, however, the rates are only locked in for a certain number of years and don’t provide any cash return if you outlive the term or cancel the policy.

The advantage of a permanent policy is that it can build cash value in the policy that you can access tax-free while you are living and still provide a tax-free death benefit for your beneficiaries.

Universal life plans offer more flexibility but are also driven by interest rates. When setting up this policy, it is very important to work with your agent to make sure it is properly funded in the beginning to avoid the need to put more money into it later on.

Whole life policies can also be a good option for cash value growth, but there are things to look for here as well. If you choose a policy that has dividend options, you can set up the policy to allow you to access the dividends tax-free in the future without worrying about having a loan on the policy that could affect how the policy pays out. The biggest thing to be aware of with cash value policies is that if you take out more money than what you put in, the gains would be considered taxable income.

To learn more, reach out to Lisa Koerner or the WisMed Assure team at insurance@wismedassure.org, complete this quick online form or call 608.442.3810 for help with your insurance needs.

Note: This article is for informational purposes only and should not be considered as insurance advice related to your specific policy or situation. Please consult with a qualified insurance advisor or professional before making any policy decisions. Full disclaimer and contact information.

Disability and Life Insurance Taxation

By Chris Noffke, GBDS, CSFS, Vice President of Employee Benefits

Chris Noffke

Taxation of benefits is a unique and important topic. Many groups I work with want to make sure their employees are not taxed for an employer paid life insurance benefit and other clients want to ensure that if an employee becomes disabled, they do not have to pay taxes on their already reduced income. Making sure these benefits are set up correctly, both by the insurance carriers and in your payroll service, is vital to tax-free benefits for employees.

Life insurance

Life insurance is the easier of the benefits to establish correctly. If an employer provides up to a $50,000 benefit to each employee, then this benefit and premiums paid for it can be excluded from an insured employee’s taxable wages. If you offer coverage to employees for a benefit over $50,000 and it is employer paid, you are required to tax premiums for the amount above $50,000.  

Disability insurance

A bigger discussion happens regarding disability insurances (both Long-term and Short-term). When an employee or owner/partner is out of work due to a disability, they will receive only a fraction of their pre-disability earnings, the average benefit being 60% of pre-disability earnings. If an employer is paying 100% of the disability premiums, the employer can decide to offer these benefits as a “gross-up” to employees. A gross-up is structuring the premiums paid by the employer to be a taxable benefit on the employee payroll. The benefits received by the disabled employee (disability income) will then be tax deferred. The rule is direct, if employees are paying payroll taxes on the premiums that the employer is paying, the benefit will be tax free – however – it is very important that the payroll taxes begin prior to the benefits being received.

When premiums are split between the employer and employee, we need to make sure there are a few rules followed. If a benefit has a premium contribution of 50% paid by the employer and 50% paid by the employee, the setup will determine if the benefit is partially or fully taxable. If in this situation the employee pays their premiums pre-tax and there is no gross-up for the amount the employer pays, this full benefit will be taxable income. Another example is if the employer pays 50% of the benefit (not grossed-up) and the employee is paying for 50% of the benefit with post-tax dollars, then when the employee receives this disability income benefit, 50% of the benefit will be taxable. So, to make the full benefit tax deferred, you need to have the employer premiums paid be grossed-up and the employee portion needs to be paid with post-tax deductions.

This can get a bit confusing, and I would love to talk if you have any questions. Please email me at chris.noffke@wismedassure.org or call 608.442.3734.

Note: This article is for informational purposes only and should not be considered as insurance advice related to your specific policy or situation. Please consult with a qualified insurance advisor or professional before making any policy decisions. Full disclaimer and contact information.

Don’t Let Taxes Take a Bite Out of Your Finances: Common Errors to Avoid

By Mark Ziety, CFP®, AIF®, Financial Advisor, WisMed Financial

Investing is a smart way to grow your wealth, and keeping more of it from taxes is even smarter. Let’s explore some common tax mistakes investors make and how to avoid them:

  • Right Investment, Wrong Account: Investment growth, dividends and interest can be taxed as ordinary income, short or long-term capital gains or tax-free. Similarly, investment accounts are treated as tax deferred, taxable or tax-free. Holding tax efficient and inefficient investments in the right accounts can improve net returns.
  • Short-Term Gains Trap: Selling an investment held less than a year triggers short-term capital gains taxes, typically at your ordinary income tax rate. This can be much higher than the long-term capital gains tax for assets held over a year. Consider waiting to sell until you hit that long-term mark.
  • Neglecting Tax-Advantaged Accounts: Contributing to IRAs, 401(k)s and other tax-advantaged accounts, like a health savings account, allows your investments to grow tax-deferred or tax-free until withdrawal. This can significantly boost your returns in the long run.
  • Letting Losses Linger: Selling investments at a loss can offset capital gains and reduce your tax bill. This is called tax-loss harvesting. Don’t miss opportunities to claim these deductions! However, be mindful of the wash-sale rule, which limits claiming losses if you repurchase a similar investment within 30 days before or after selling.
  • Forgetting IRA Contributions: Investment companies typically don’t send the supporting tax document 5498 until May each year (because investors have until April 15 to make their IRA contribution for the prior year). This leads many investors to forget to record their IRA contribution on their tax return.

Wisconsin Specifics:

  • Missing Long-Term Care Premiums: Wisconsin allows a deduction for qualified long-term care insurance premiums on the state income tax return, even if you don’t claim an itemized deduction on the federal return. Plus, you won’t necessarily get a supporting tax document from your insurance company, so this is easy to miss.
  • Missing Edvest Contributions: Wisconsin residents contributing to an Edvest college savings plan may qualify for a state tax deduction on contributions. This is another one that’s easy to miss; there’s no supporting tax document sent out by Edvest.

Please note, this is not professional tax advice. For specific guidance on your situation, consult a tax professional. By being aware of these common pitfalls, you can keep more of your hard-earned investment returns come tax time, especially when considering Wisconsin’s unique tax landscape.

For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

Mark Ziety, CFP®, AIF®

WisMed Financial, Inc. part of the Wisconsin Medical Society

Note: This article is for informational purposes only and should not be considered as financial or tax advice. Please consult with a qualified financial advisor or tax professional before making any financial decisions. Full disclosures.

2024 Volume 1

Don’t Let Taxes Take a Bite Out of Your Finances: Common Errors to Avoid

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

Crumpled tax form with money, calculator and notepad on the table.

Investing is a smart way to grow your wealth, and keeping more of it from taxes is even smarter.  Let’s explore some common tax mistakes investors make and how to avoid them.

Read more…


Change Healthcare™ Attack Highlights Often Overlooked Cyber Insurance Coverage

illustration of umbrella protecting computer screen from an attack

By Shawna Bertalot, CIC, ACI, WisMed Assure President

Many health care practices rely on a third party for access to their EMR and for billing. This creates a “contingent” or “dependent” risk. The February 21 cyberattack on Change Healthcare changed the world for many patients and health care providers.

Read more…


Disability and Life Insurance Taxation

Tax payment concept. State Government taxation, calculation of tax return. Blank tax form, calendar, magnifier, money, notebook, calculator, coins, glasses, watches, documents, computer.

By Chris Noffke, GBDS, CSFS, Vice President of Employee Benefits

Taxation of benefits is a unique and important topic. Many groups I work with want to make sure their employees are not taxed for an employer paid life insurance benefit and other clients want to ensure that if an employee becomes disabled, they do not have to pay taxes on their already reduced income.

Read more…


Tornadoes Can Strike in Seconds. Are You Ready?

photo of tornado

By The Hartford

Tornado season is upon us and could bring more storms in the months ahead. In fact, the U.S. experiences the most tornadoes of anywhere in the world.

Read more…


Tax Treatment of Long-term Care Insurance a Game Changer

Nurses, doctor and caregivers in nursing home take care of old men and women. Volunteers help aged people at home and hospital.

By Tom Strangstalien, Insurance Advisor

We put my dad into a nursing home on Monday. My mom had been his caretaker since he was diagnosed with a somewhat rare neurological disorder. My mom has been superwoman, a real- life example of a family member caring for a loved one.

Read More…


Your Medicare Update

Open Enrollment concept.

By Mary Krueger, Medicare Specialist

It’s early 2024 and its already time to explore Medicare options for 2025. Many Medicare enrollees want to look at what is suitable for their needs in the Medicare market. If you have started looking for yourself or someone else, there are many different ways to procure coverage.

Read More…


Life, Death and Taxes

Photo of a grandfather and his granddaughter loving autumn. Throwing leaves in the air.

By Lisa Koerner, Insurance Advisor

If you are looking for some creative ways to avoid paying taxes, don’t overlook the benefits of Life Insurance. There are several different types of life insurance policies to serve several different objectives, the greatest being a tax-free death benefit for your beneficiaries.

Read More…


Consolidation leads to $600,000 student loan forgiveness – a case study

By Mark Ziety, CFP®, AIF®, Financial Advisor, WisMed Financial

Good financial planners do much more than help with investments. They look at the entire financial picture, which includes debts too. Today’s case study shows how a unique rule, available until December 31, is facilitating more than $600,000 in student loan forgiveness.

First, the rule

When consolidating federal student loans, according to the FAQ section on the Federal Student Aid website, “Assuming your repayment history overlaps for each loan, the consolidation loan will be credited with the longest amount of time in repayment of the loans that were consolidated.”

How we applied the rule

A resident physician is a career changer with more than $600,000 of student loan debt. Some of the debt was from undergrad loans from the early 2010s before she changed careers to become a physician. By consolidating her old and most recent loans together, her new consolidation loan will use the payment count of her oldest loans.

The $600,000 loan forgiveness benefit

Those who work for a non-profit, government or other qualifying employer can have any remaining balance of their student loans forgiven after making 120 qualifying monthly payments through the Public Service Loan Forgiveness program. And the loan forgiveness is tax free! Since this borrower will have 120 qualifying payments on the oldest loans, her consolidation loan will also be credited with 120 qualifying payments, and her entire loan balance will be forgiven!

The rule changes in 2024

Next year, a consolidation loan will have a pro-rated payment count based on the payment count of the loans being consolidated. That makes 2023 an ideal time to review your loans to see if a consolidation would benefit you too.

For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

Mark Ziety, CFP®, AIF®

WisMed Financial, Inc. part of the Wisconsin Medical Society

Note: This article is for informational purposes only and should not be considered as financial or tax advice. Please consult with a qualified financial advisor or tax professional before making any financial decisions. Full disclosures.