Everyone's most favorite retirement account, the 401(k), is a great way to save, but it is just a tool, not a strategy. As Peter with Richon Planning explains to Erin Kennedy, without proper planning, you could face unexpected taxes, income gaps, and market risk.

There's a reason 401ks are known as tax time bombs: beyond being tax-deferred (which means you will pay taxes at an unknown and probably higher rate in the future), the Required Minimum Distributions can push you into a higher tax bracket in retirement.

We are living in a historically low tax rate right now, and taxes are set to increase at the end of 2025. If you'd like to work with Peter to create tax-free income in retirement, please call (919) 300-5886 or visit www.RichonPlanning.com

Roth Conversions can be one of the best strategies to create tax-free income in retirement. And those accounts can grow tax-free indefinitely because they don't have required minimum distributions. In this video, Peter with Richon Planning and Erin Kennedy talk through the pros and the cons of converting your tax deferred accounts to Roth accounts while you're still working.

Keep in mind, when you convert those funds, you'll need to pay the taxes upfront, and it's best if you can pay that bill in cash (pro: if you're working, you may have more financial flexibility). But keep in mind, those dollars are also counted as taxable income, which, without proper planning, could push you into a higher tax bracket.

There is no cookie-cutter answer to this question; the answer will depend on your current tax bracket, your projected future tax bracket, and your unique financial circumstances. If you'd like to crunch the numbers with Peter, please call (919) 300 - 5886 or visit www.RichonPlanning.com

According to @Vanguard's "Advisor’s Alpha" study, a good financial advisor can add about 3% in net returns *per year* through behavioral coaching, asset allocation, rebalancing, and tax planning. In this video, Peter with Richon Planning and Erin Kennedy discuss, in detail, the reasons behind that performance gap. DIY investors often underperform the market because they tend to react emotionally to market movement versus sticking to a risk appropriate financial plan. For more information, please read this study by @DALBAR titled Investor Behavior Continues to Hinder Returns. hyperlink https://www.dalbar.com/Portals/dalbar/Cache/News/PressReleases/QAIB2024_PR.pdf A good financial advisor should provide concrete value to clients, beyond just portfolio returns. If you'd like to have a no obligation chat with Peter to determine if you could benefit from having a personalized financial plan, give him a call at (919) 300-5886 or visit www.RichonPlanning.com

Before you retire, there are very specific questions you should ask your advisor. In this video Peter with Richon Planning and Erin Kennedy talk through those questions, which, when answered, can give you a much clearer picture as to whether you are really ready to retire. Those questions are:

1. Am I financially ready to retire? 

2. What income sources will I rely on in retirement?

3. How can I minimize taxes on my retirement income?

4. What adjustments should I make to my investment portfolio?

5. Do I have enough saved to account for inflation and unexpected expenses?

6. Do I have a plan for long term care?

And keep in mind, if your advisor can't answer these questions, it might be time for a new advisor. If you feel like you're ready to retire, but would like to talk it through with a professional, please give Peter a call at (919) 300-5886 or visit www.RichonPlanning.com

Taxes don’t disappear in retirement. In fact, understanding tax implications becomes even more important when you're retired. In this video, Peter with Richon Planning and Erin Kennedy talk through the 4 tax questions you should ask your financial advisor before retiring, including:

1. How will my tax situation change once I retire? 

2. Are there strategies to reduce my tax liability in retirement?

3. Should I consider a Roth conversion before I stop working?

4. What are the tax implications of withdrawing from my various accounts?

If you'd like to learn if you're tax-ready for retirement, please give Peter a call at (919) 300-5886 or visit www.RichonPlanning.com

Investing can seem complex and confusing, and you may wonder whether you're doing all you can to achieve your goals. In this video, Peter with Richon Planning and Erin Kennedy talk through 5 mistakes you might be making and how to turn things around. Here are those mistakes:

1. Getting out when the going gets tough 

2. Taking on too much (or too little) risk

3. Not rebalancing your portfolio regularly

4. Paying too much in taxes

5. Not seeking professional advice

As for that last mistake, ask yourself: Do I have the skills to do this? Do I have the time to do this? And, maybe most importantly, do I want to do this? If the answer is 'no' to any or all of those, it may be worth asking for some advice. If you'd like a second opinion on your plan, or to find out if you're on track, please call Peter at (919) 300-5886 or visit www.RichonPlanning.com

A new bill, called the Social Security Fairness Act, was just signed into law and will increase payments for nearly 3 million current and former public employees. As Peter with Richon Planning explains to Erin Kennedy, the law repeals the Windfall Elimination Provision and the Government Pension Offset, which limited benefits for recipients with other pensions.

That means teachers, firefighters and police officers, among other public-sector occupations, will soon receive benefits in the full amount.

If you think you may be eligible for the Social Security Fairness Act benefits, please reach out to Peter to talk through the changes you can expect. You can set up a complimentary appointment by calling (919) 300-5886 or visit www.RichonPlanning.com

Join Peter Richon on Dash Town - highlighting local businesses making an impact in Fuquay! Today, we visit with Colton Owczarzak, owner of Iron Varsity, a physical therapy and sports performance business dedicated to helping athletes move, recover, and perform at their best.

Colton holds a Doctorate in Physical Therapy from High Point University and a Bachelor’s in Exercise Physiology from California State University - Chico. His experience includes working at EXOS, where he provided care for NFL, NBA, and MLB athletes, as well as time at Cincinnati Children's Hospital, specializing in orthopedic rehab for young athletes. As the former Director of Clinical Services at Youngs PT and Sport Performance, he worked with athletes of all levels to improve movement and recovery.

At Iron Varsity, Colton uses his experience to help athletes build strength, recover from injuries, and perform at their best. To learn more or schedule an appointment, you can reach him at [email protected] or call (919) 285-4596.

It's that time of year, time to get ready for tax day. Yes, it's stressful, but as Peter with Richon Planning explains to Erin Kennedy, with a little bit of preparation, it doesn't have to be.

 To set yourself up for success and a stress-free filing, Peter outlines:

-The steps you should take now to ensure you’re fully prepared for tax season

-How to avoid common tax filing mistakes

-How to maximize deductions and credits

If you'd like help getting prepared for tax day, or if you'd like a second set of eyes on your return before you file, please feel free to reach out to Peter by calling (919) 300-5886 or visit www.RichonPlanning.com

Annuity sales set new records in 2024. In the first nine months of the year, we saw a 23% increase to $331.2 billion! In this video, Peter with Richon Planning and Erin Kennedy walk through why annuity sales have seen a huge jump in sales, and they discuss whether the Fed's decision to lower interest rates will affect their returns.

People often turn to annuities to create sustainable income in retirement. If you'd like to learn more about annuities, how they're taxed, and whether they make sense as part of your financial plan, or if you'd like a second opinion about an annuity you recently bought, please reach out to Peter by calling (919) 300 - 5886 or visit www.RichonPlanning.com