Financial Planning Essentials: Retirement, Tax, and Estate Tips from Supriya Batra

As more women take control of their financial futures, well-rounded financial education is essential.

That’s why Bel Air partner Supriya Batra joined “Women & Money: The What, Why, and How of Financial Planning”, a panel presented by the Women in Institutional Investments Network (WIIIN).

Negin Sohrabi, Treasurer of WIIN, moderated the September event, which featured panelists Supriya and Judy Portnoy of Soffer Law Group. The event was attended by an engaged audience of investment professionals looking to demystify the essentials of financial planning.

Here’s a breakdown of Supriya’s key insights during the discussion.

When and Why Should You Hire a Financial Advisor?

Supriya emphasized that significant life changes—such as receiving an inheritance, accumulating substantial cash, or reaching a new financial milestone—are often the times when people consider hiring a financial advisor. She explained that selecting an advisor should depend on your specific financial priorities and the advisor’s experience handling the unique challenges you’re likely to face.

For example, clients in the $1 million to $5 million net worth range often focus on maximizing retirement savings, managing a liquid portfolio leaning on traditional asset classes, budgeting, purchasing a first home, and balancing debt versus equity when taking out a mortgage. On the other hand, individuals with $20 million or more in assets may focus on more complex estate planning strategies and incorporate alternative investments. These priorities should dictate the advisor search.

Retirement Planning: Understanding Income vs. Expenses

Supriya advised attendees to look at their projected expenses and income sources when planning their retirement. Significant expenses, such as home ownership, discretionary spending, and healthcare, need to be carefully planned for, especially as medical costs may increase significantly in retirement. On the income side, retirees typically draw from retirement accounts, Social Security benefits, and passive income sources such as real estate and investment portfolios.

Supriya also walked the audience through the various types of retirement accounts, such as pre-tax and post-tax accounts, emphasizing the benefits of tax-free growth provided by most retirement accounts. She encouraged participants to explore employer matching opportunities to maximize their retirement savings and seek guidance on how to allocate their investments within those accounts.

Tax Planning Strategies: A Holistic Approach

Taxes can be one of the most complicated areas of financial planning, but they also provide some of the greatest opportunities. Supriya discussed income tax planning strategies, including how to maximize contributions to retirement accounts and charitable donations. She also pointed out lesser-known opportunities, such as taking advantage of opportunity zones, Qualified Small Business Stock (QSBS), and certain insurance products that can offer favorable tax treatments.

Transferring Wealth: More Than Just Gift Giving

There are ways to financially support loved ones when transferring wealth without triggering gift taxes. Supriya and Judy discussed the annual gift tax exclusion, which allows individuals to give up to $18,000 per year per recipient without incurring gift tax.

Beyond the basic exclusion, Supriya noted that direct payments for tuition or medical expenses can be made without being subject to the gift tax if they are made directly to the educational or medical institution.

Supriya’s panel provided attendees with a comprehensive overview of financial planning, offering practical steps to prioritize tax, retirement, and estate considerations. Her insights are a valuable reminder to stay informed and diligent and seek professional guidance when needed.

Disclosure: Hightower Advisors do not provide tax or legal advice. This material was not intended or written to be used or presented to any entity as tax advice or tax information. Tax laws vary based on the client’s individual circumstances and can change at any time without notice. Clients are urged to consult their tax or legal advisor for related questions.