Planning Matters Radio

There are so many benefits to rolling your 401(k) into an IRA. But turns out, according to Vanguard, nearly one-third of investors who rolled their 401(k) into an IRA were still sitting in cash seven years later; they never invested their retirement savings! As Peter with Richon Planning and Erin Kennedy discuss, these investors are missing out on billions in investment gains! This problem is most pronounced among investors who've changed jobs and younger investors. While cash has a place in most portfolios, researchers estimate that the long-term benefit of investing in a target date fund (versus staying in cash) upon rollover is equivalent to an increase of at least $130,000 in retirement wealth at age 65. If you'd like to read the Vanguard white paper, please click here (https://digital-assets.vanguard.com/corp/public-policy/policy-research/improving_retirement_outcomes_by_default_the_case_for_an_ira_qdia.pdf) <--- hyperlink And if you have any questions about how to invest or individual retirement account, please call Peter at (919) 300 5886 or visit www.RichonPlanning.com #TargetDateFund #Retirement #RetirementSavings #401k #IRA #FinancialAdvisor

Get ready to pay Capital Gains Tax when you sell an asset, including stocks or real estate, for a profit. It's a good problem to have! But as Peter Richon with Richon Planning explains to Erin Kennedy, there are some strategies that can help you avoid or minimize capital gains tax, including:

1. Paying the Tax Now in a Low Tax Rate Environment
2. Donor-Advised Funds (DAFs)
3. Tax-Loss Harvesting
4. Holding Periods
5. Charitable Remainder Trusts (CRTs)

Each of these strategies comes with its own rules and potential pitfalls, so it's essential to consult a tax advisor or financial advisor to tailor the approach to your unique goals and current financial situation. If you'd like to see whether these strategies could minimize your Capital Gains Tax, please feel free to give Peter a call at (919) 300 - 5886 or visit www.RichonPlanning.com

#WealthPlanning #FinancialAdvisor #CapitalGains #TaxPlanning #TaxStrategies

Recently, on his popular show, a well-known, "financial expert" dismissed the common advice to withdraw only 4% of your retirement savings annually as "moronic," advocating instead for an 8% withdrawal rate. In this video, Peter Richon with Richon Planning and Erin Kennedy talk through whether and when an 8% withdrawal rate makes sense.

Here's the answer: yes, it might make sense. But it all depends on the individual person.

Finding the correct withdrawal rate will vary from person to person. To find that number, you need to account for life expectancy, spending habits, and market conditions. Finding that number will ensure your savings will last throughout your retirement while allowing you to maintain your desired lifestyle.

If you'd like to find your own unique, personalized withdrawal rate (keeping in mind that the rate should be revisited annually), please give Peter a call at (919) 300 - 5886 or visit www.RichonPlanning.com

#DaveRamsey #WithdrawalRate #Retirement #FinancialAdvisor

The older you are when you divorce, the less time you have to recover financially. And get this, one quarter of people getting divorced is now over 50! In fact, it's so common, it's been dubbed: grey divorce. In this video, Peter with Richon Planning and Erin Kennedy walk through 5 key action steps to get your financial life back on track. Those steps are:

1. Assess Your New Financial Situation
2. Revise Estate Plans and Beneficiaries
3. Check Your Social Security Benefits
4. Use the Catch-Up Rules for Retirement Saving
5. Outline Your New Financial Goals

If you'd like to talk through your new financial goals and how to achieve them, please reach out to Peter for a free consultation. You can call him at (919) 300 - 5886 or visit www.RichonPlanning.com

#GreyDivorce #FinancialPlanning #Divorce #Retirement #SocialSecurity

Navigating the "financial talk" with aging parents can be a sensitive yet crucial conversation. In this video, Peter Richon with Richon Planning and Erin Kennedy talk through when you need to have this talk with your parents and what topics you need to discuss, including your parents':

-Current Financial Status and Income

-Long-Term Care

-Estate Planning

Knowing that your parents have a plan for the unexpected will bring peace of mind for both generations. Keep in mind, this conversation is an opportunity to ensure their well-being and financial security in later years. If you'd like help getting the ball rolling, please reach out to Peter by calling (919) 300 -5886 or visit www.RichonPlanning.com

#WealthManagement #Retirement #AgingParents #FinancialAdvisor #EstatePlanning

There are 5 key areas most people in their 30s and 40s miss when it comes to financial planning. In this video, Peter Richon with Richon Planning and Erin Kennedy discuss how to avoid those pitfalls, and Peter breaks down the steps you need to take now to set yourself up for financial success:

1. Bank Savings/Emergency Fund: liquidity is key! And it will ensure you don't have to borrow money at high interest rates

2. Life Insurance: protect yourself and your family in case the worst happens

3. Open and Invest in a Roth: take advantage of today's historically low tax rate and your lower earning years

4. Brokerage Accounts: having another bucket of money that can grow will protect your wealth and give you more options

5. Consider 529s: tax advantaged and very flexible. These accounts have several benefits, even if your kid doesn't go to college!

If you'd like to learn more about holistic financial planning (that takes your whole family into account) and building wealth, please reach out to Peter by calling (919) 300-5886 or visit www.RichonPlanning.com

#WealthManagement #FinancialAdvisor #Taxes #FIRE #FinancialMistakes

Inflation is the natural enemy of retirement savings, but there are strategies you can put in place to guard your nest egg from spiking consumer prices — and they may even allow you to use those higher costs to your advantage.

According to Peter with Richon Planning and Erin Kennedy, you should:

Keep Investing: time in the market is often your best inflation hedge Maximize Your Social Security: and keep in mind, you don't miss out on the COLA if you delay claiming

Rethink Your Expenses: put simply, save more money.

Working with a financial advisor can help implement these strategies, a professional can also help you research your budget, shop around for insurance companies, do better tax planning, and dig up other opportunities for savings. To speak with Peter about your best inflation hedge, give him a call at (919) 300-5886 or visit www.RichonPlanning.com

#SocialSecurity #Taxes #Inflation #Investing #WealthManagement

Required Minimum Distributions... whether you need the income or not, the government will force you to take those distributions so they can collect the taxes, but as Peter with Richon Planning explains to Erin Kennedy, proactive planning means you control your tax liability.

Here are Peter's quick tips to optimize your RMDs:

1.Roth Conversions

2.Plan for Strategic Withdrawals

3.Delay Taking Social Security

If you'd like to speak with Peter about how you can better control your tax liability, please give him a call at (919) 300-5886 or visit www.RichonPlanning.com #WealthManagement #Taxes #SocialSecurity #RothConversions #FinancialAdvisor

For several months now, The Fed has decided to leave interest rates unchanged. For the most part, this isn't great news for borrowers, but as Peter Richon with Richon Planning explains to Erin Kennedy, it may offer some unique opportunities for savers. High interest rates offer unique opportunities when investing in high-yield bonds or money market accounts. You may also want to consider an annuity, which can provide a stable stream of income especially during periods of high-interest rates. If you'd like to talk to Peter about turning these high interest rates into opportunities, please feel free to give him a call at (919) 300 - 5886 or visit www.RichonPlanning.com #WealthManagement #InterestRates #GoodDebtBadDebt #FinancialAdvisor

To design your ideal retirement, you need to start with a few specific questions... and if you're married, make sure you do this exercise together! In this video, Peter Richon with Richon Planning and Erin Kennedy walk through what you should consider when answering these vital questions:

1. When do you want to retire?

2. Where do you want to live when you're retired?

3. How is your health?

4. How much could your Social Security benefits be?

5. Do you have a financial plan?

Because retirement is so much more than just a number in your bank account, working with a financial professional can help you define and build your ideal retirement. If you'd like to talk through your unique goals and objectives in retirement, please give Peter a call at (919) 300-5886 or visit www.RichonPlanning.com

#WealthManagement #Retirement #SocialSecurity #FinancialAdvisor