| | Financial and Retirement Planning for Southwest Michigan | | |
Welcome to our news!
In each edition of our newsletter, we'll share some tips, some educational content, a team bio, and links to our free Retirement Resources. You can reach us at any of the buttons above and we hope you find this content helpful!
| | The New Senior "Bonus" Deduction | |
Itemized vs. Standard Deduction & New 2026 Thresholds
Are you leaving $6,000 on the table?
With the standard deduction rising in 2026 to $32,200 for married couples and $16,100 for individuals, many Southwest Michigan retirees assume itemizing is a thing of the past.
However, under the new OBBBA tax laws, adults age 65+ may now be eligible for an additional $6,000 "bonus" deduction.
As a fiduciary, Chuck Henrich’s role is to ensure you aren't just following a template, but choosing the path that keeps more of your hard-earned money in your pocket.
The Strategy: We look at your medical expenses, charitable gifts, and the newly expanded $40,000 SALT limit to see if itemizing now beats the standard deduction.
Call Chuck at (269) 323-7964 to run your 2026 tax projection.
| | Stop Letting the IRS Dictate Your Retirement | | |
The "Tax Window"
With the 2026 tax brackets still near historic lows, now is the time to act. A Roth Conversion lets you pay taxes at today's known rates so you can enjoy 100% tax-free income later—no matter how high rates climb in the future.
The 2026 Advantage: The standard deduction has increased to $32,200 (MFJ), giving you more room to convert without jumping into a higher bracket.
Don't wait for your RMDs to force a massive tax bill at age 73 or age 75. Lock in your tax rate now.
Call Chuck at (269) 323-7964 with any questions you have or learn more about taxes in reitrement here.
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Is Your Retirement Plan Health-Proof?
Comprehensive Healthcare Planning
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One of the greatest risks to a successful retirement isn't a market crash—it’s the rising cost of healthcare. Studies show that a 65-year-old couple retiring in 2026 may need over $315,000 just to cover medical expenses throughout their retirement years.
How we solve the healthcare puzzle at Southwest Michigan Financial:
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Medicare Navigation: We help you weigh the pros and cons of Medicare Advantage vs. Medigap options based on your preferred doctors, prescription medications and travel plans.
- HSA Optimization: If you’re still working, we’ll show you how to use a Health Savings Account as a powerful, triple-tax-advantaged retirement bucket.
- The "Distribution" Factor: Chuck Henrich focuses on how to pay for these costs using the most tax-efficient methods and accounts, protecting your principal from unnecessary erosion.
As your fiduciary, our duty is to look beyond your portfolio and ensure your lifestyle is protected from the "hidden" expenses of aging.
🔗 Read our full guide on managing these costs here.
Ready to hit your max? Call us with any questions you have at (269) 323-7964.
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The Holding Period Payoff
Short-term vs. Long-term Capital Gains
Why "Patience" is a Tax Strategy.
The difference between selling an investment on day 365 vs. day 366 could be thousands of dollars.
- Short-term gains: Taxed at your ordinary income rate (up to 37% in 2026).
- Long-term gains: Taxed at much lower rates (0%, 15%, or 20%).
For 2026, a married couple can have taxable income up to $98,900 and potentially pay 0% on their long-term capital gains! Chuck Henrich uses "Tax-Loss Harvesting" and strategic holding periods to ensure you aren't overpaying for your success.
Our Duty: As fiduciaries, we are legally bound to put your interests first—which means helping you keep more of your financial gains.
📞 Schedule your February Tax Strategy call. Email Chuck here.
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Tax Support for the "Sandwich Generation"
Healthcare and Caregiver Deductions
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Caring for a loved one? The IRS might be able to help.
Many of our clients in Kalamazoo and Battle Creek are part of the "sandwich generation"—balancing their own retirement while caring for aging parents.
New for 2026:
- Caregiver Flexibility: You may be able to claim a parent as a dependent if you provide more than half of their support, opening up the Credit for Other Dependents.
- Medical Deductions: If you itemize, you can deduct medical expenses for yourself and your dependents that exceed 7.5% of your AGI.
- LTC Benefits: Under SECURE 2.0, certain retirement plans now allow penalty-free distributions of up to $2,500 for qualified long-term care insurance premiums.
As your fiduciary partner, Chuck helps you navigate these sensitive financial shifts with expert care.
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The Global Investor’s Edge
Overseas Investments & Tax Treaties:Diversified or Double-Taxed?
Investing internationally is a great way to diversify, but it comes with a complex "alphabet soup" of IRS requirements like FBAR and FATCA.
In 2026, the Foreign Earned Income Exclusion has risen to $132,900, and the Foreign Tax Credit remains a vital tool to avoid being taxed twice on the same dollar. Chuck Henrich specializes in coordinating these global pieces so your international portfolio works for you, not against your tax return.
Chuck’s Fiduciary Promise: We don’t just look at the returns; we look at the net after-tax result.
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Resources
Watch Our Retirement Videos
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Meet the Team at SWMI Financial
Chuck Henrich, Independent Investment Adviser & Fiduciary, has been a Registered Investment Advisor holding a Series 65 securities registration for 14 years.
Chuck acts as a fiduciary - dedicated to the financial and social issues facing today’s retirees and prioritizes continuous education with both Income Planning and Tax Planning Certifications.
Chuck resides in Battle Creek, Michigan with his wife of 37 years, Jennifer.
Learn more about working with a Fiduciary Advisor. Call us with any questions you have at (269) 323-7964.
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Retirement 101 is a hands-on, in-depth class looking into the many nuances of retirement financial planning.
We don’t waste your time reviewing basic principles, we focus our time on identifying and solving the important problem areas you need to understand to build a successful retirement plan. We review practical examples and allow you the opportunity to ask specific questions. Sign up early, seating is limited!
Upcoming Retirement 101 Classes:
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February 24 or February 26, 6 p.m.: Kalamazoo Valley Community College, Groves Campus, 7107 Elm Valley Drive, Kalamazoo
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March 10 or March 12, 6 p.m.: Albion College, Norris Hall, 611 E. Porter Street, Albion
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Our Company
Charles R. Henrich offers investment advisor services through Southwest Michigan Wealth Management, LLC, a Registered Investment Advisor in the state of Michigan. Insurance products and services are offered through Southwest Michigan Financial, LLC. The aforementioned are affiliated companies. Southwest Michigan Wealth Management, LLC and its advisors do not render tax, legal, or accounting advice. Southwest Michigan Wealth Management, LLC and Southwest Michigan Financial, LLC are not affiliated with or endorsed by the Social Security Administration or any government agency.
This email is being sent on behalf of an Investment Advisor Representative. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the name addressee, you are not authorized to read, print, retain, copy, or disseminate this email or any part of it. If you have received this email in error, please notify the sender immediately by email or fax, and destroy all copies of this communication.
Contact Us | Disclaimer | Privacy Policy
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Kalamazoo Office
Southwest Michigan Financial, LLC
4341 S Westnedge Ave, Ste. 1201
Kalamazoo, MI 49008
Phone: (269) 323-7964
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Marshall Office
Southwest Michigan Financial, LLC
830 W Michigan Ave
Marshall, MI 49068
Phone: (269) 323-7964
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