The Watermark Group

Recently, our Watermark team had the privilege of spending the day with Outside The Box (OTB), a day-service and employment program supporting adults with intellectual and developmental disabilities.

Our group rolled up their sleeves to give OTB’s beautiful property a little makeover — taking down a pergola, pulling weeds, spreading mulch, and more. It was a rewarding day of teamwork, fresh air, and giving back to an organization that makes such a meaningful impact in our community. 🌱

We’re grateful for the opportunity to support OTB and encourage you to learn more about their mission here:
👉 https://otbonline.org/

The Watermark Group proudly supports the Central Indiana Police Foundation (CIPF), a key ally in fostering community and law enforcement relations. CIPF's mission to assist injured officers, provide essential resources, and build positive community partnerships aligns with our commitment to community safety and well-being.

Our involvement with CIPF's vital initiatives like "Code One" and "Invest in Blue" underscores our dedication to the safety and effectiveness of our police force. Join us in supporting these heroes in blue, as their service is integral to our community's prosperity.

As we celebrate Thanksgiving, The Watermark Group extends our heartfelt gratitude to our valued clients. Your trust and partnership are the cornerstones of our success. We hope this holiday season finds you surrounded by family and friends, sharing in the joy and warmth that embody the spirit of Thanksgiving!

What do you need to know about "Inherited IRAs"?
When leaving an IRA to beneficiaries as part of estate planning, there are important factors to consider to avoid unnecessary taxes and penalties:

- Spousal beneficiaries can roll over Inherited IRAs into their own names. Non-spouses cannot.

- Non-spouse beneficiaries must take required minimum distributions (RMDs) each year based on their life expectancy. Failing to take RMDs triggers 50% penalty on undistributed amount.

- Inherited IRA funds must be drained within 10 years for non-spouse beneficiaries, with some exceptions like minor children.

- Withdrawals from Inherited IRAs are taxed as ordinary income for non-spouse beneficiaries.

Watermark is here to guide you through the nuances of bequeathing IRAs. Proper planning allows you to leave a lasting legacy while optimizing your beneficiaries' options. Let us know if you have any Inherited IRA questions!

Weighing Your Pension Payment Options
When retiring, you likely have a big choice to make - take your pension as a lifetime annuity stream or opt for a one-time lump sum payment.

There are pros and cons to each approach. Here are some key considerations:

Monthly payments - Annuities provide guaranteed income for life, protecting you from the risk of outliving your money. Lump sums give you immediate control and flexibility.

Taxes - Lump sums are taxed all at once. Annuities spread taxes out over time, often into lower tax brackets.

Investment returns - Good returns on investing a lump sum could provide more income overall versus an annuity. But it depends on your investing acumen.

Benefits for survivors - Annuitants can select options that reduce monthly payments to cover a surviving spouse. Lump sums typically don't provide for income past death.

Fees and penalties - Some plans charge fees to select a lump sum. And most levy surrender penalties if you change your mind later.

There are many variables to weigh. As your advisors, we're here to walk through the implications in detail. Our goal is to help you select the most financially sound option aligned with your retirement goals and risk tolerance. Reach out to start the conversation!