Planning Matters Radio

The passage of SECURE Act 2.0 changed a lot when it comes to saving for retirement. And we've just received some clarifications from the IRS about catch up contributions. In is video, Peter with Richon Planning and Erin Kennedy break down the changes that could affect you.

Despite previous guidance, if you are looking to make a catch-up contribution in 2024, there won't be any changes. However, starting in 2026, those catch-up contributions will have to be made in your Roth account.

Here's what you need to know: if you're at least 50 years old or older, no matter your income level, you can continue to make catch-up contributions on a pre-tax basis through your employer-sponsored retirement plan. However, in 2026, those contributions will have to be made on a Roth basis if your income meets or exceeds $145,000.00.

Also, if you are a high-income earner who's maxing out your retirement accounts, you may inadvertently be missing out on some of your employer match. However, determining whether you are missing out comes down to crunching the numbers in your specific plan.

If you'd like to find out whether you're missing out on that match, or if you'd like to talk through these changes brought about by the SECURE Act, please reach out to Peter by calling (919) 300-5886 or visit www.RichonPlanning.com

A financially secure and happy retirement doesn't just happen; it takes planning and some modifications as you get older. In this video, Peter with Richon Planning and Erin Kennedy walk through some mistakes:

1. Not Having a Plan
2. Forgetting about Inflation
3. Not Creating any Tax-Free Income
4. Investing too Conservatively
5. Taking on too much Risk as You near Retirement

If you'd like to speak with a fiduciary advisor about creating a financial plan that is uniquely tailored to your financial goals, please give Peter a call at (919) 300-5886 or set up a complimentary consultation by visiting www.RichonPlanning.com

For the first time since 1973, investors are putting a lot of their money in S&P 500 index funds or in mutual funds that use the S&P 500 as a benchmark. Most investors probably don't know that about 80% of the gains we've seen this year are due to the performance of only 10 companies! In other words, you may have a lot of money tied up in just a few stocks, which could mean you're taking on more risk than you know.

In this video, Peter with Richon Planning and Erin Kennedy talk through the reasons behind this new trend and how to make sure your investments are properly diversified. To manage that potential volatility, Peter recommends you:

-Reduce concentration

-Consider Hedged equities or Buffered ETFs

-Consider Structured Notes

If you would like to take a deep dive into your portfolio to make sure you're properly diversified and not taking on too much risk, please reach out to Peter by calling (919) 300-5886 or visit www.RichonPlanning.com

It's been a long time since we've seen inflation-adjusted interest rates above zero. Since the Fed began hiking interest rates, investors can once again earn attractive returns on cash. But as Peter with Richon Planning explains to Erin Kennedy, you may be earning less money than you think after accounting for inflation and taxes.

Instead of socking your money away in CDs, treasuries, or Money Market accounts, Peter suggests you consider Buffered ETFs, which can offer full principal protection. Also, unlike cash and cash alternatives, Buffered ETFs don't generate taxable interest. Instead, you get much more favorable capital gains treatment and only pay taxes when you decide to sell.

If you'd like to talk to Peter to determine your best cash alternative, feel free to call (919) 300-5886 or visit www.RichonPlanning.com

The third quarter of 2023 saw record growth in annuity sales: $89.4 billion! That's an 11% jump over the same quarter last year. Here's one reason why: recent interest rate hikes. When interest rates rise, that often means better returns on annuities, especially for fixed and fixed index annuities. Peter with Richon Planning explains the correlation to Erin Kennedy, while outlining why annuities could make sense as part of your larger financial plan.

Annuities function as a private pension. They can provide guaranteed income for the rest of your life. Creating a private pension has become increasingly important because the percentage of workers in the private sector who have a pension is now 4%, down from 60% in the early 80%s.

If you'd like to find out how recent interest rate hikes have affected annuities, or to find out if one makes sense for you, please reach out to Peter by calling (919) 300-5886 or schedule an appointment at www.RichonPlanning.com

The 3.2% cost of living adjustment reflects another year of high inflation. However, we now know we'll be paying almost 6% more for Medicare Part B! That doesn't mean you'll see a smaller SS check in January, but if you're wondering how this will affect you, Peter with Richon Planning and Erin Kennedy walk through these questions:

-Does the COLA affect when we should claim our Social Security benefits? 

-How does this jump in the cost of Medicare Part B affect my Social Security check?

-Does this COLA increase affect the program's insolvency?

If you have any questions about when you should claim Social Security or how to pay for Medicare, please reach out to Peter for a complimentary consultation by calling (919) 300-5886 or visit www.RichonPlanning.com

#COLA #SocialSecurity #IRMAA #WealthManagement #Taxes #TaxPlanning

The IRS recently announced that we'll be able to sock away a lot more money for retirement starting in 2024. These increases are in line with an increased cost of living. In this video, Peter with Richon Planning and Erin Kennedy break down those changes, and Peter explains how to prioritize your retirement savings.

If you'd like to talk through how to prioritize saving for your retirement, or if you'd like to find out if you're properly tax-diversified, please feel free to reach out to Peter by calling (919) 300-5886 or by visiting www.RichonPlanning.com

#Retirement #401k #TaxStrategies #TaxFree #TaxDeferred

People who are wealthy have much more than money to consider when it comes to estate planning and generational wealth transfer. For the wealthy, the stakes are often higher, the mistakes are magnified, and all members of the family have an incentive (and often the means) to litigate if things don’t go their way.

In this video, Peter with Richon Planning and Erin Kennedy discuss five documents that every wealthy person should have in order to protect his or her wealth and the harmony of the family.

1. An updated estate plan
2. Evaluate Various trusts
3. Legacy letter
4. Family Governance Plan 
5. Succession plan for the family business 

If you would like help setting up a roadmap to ensure the wealth and harmony of your family continue for the next generation, please feel free to reach out to Peter at (919) 300-5886 or visit www.RichonPlanning.com. He can help you design a unique and thoughtful plan for your future and your family.

#WealthManagement #EstatePlan #WealthTransfer

Long before you leave the workforce, talk with your partner about what each of you wants to do, where to live, and what to spend in retirement. In today's video, Peter with Richon Planning and Erin Kennedy take a closer look at the topics that successful couples asked one another in order to become successful and happy retirees.

First, discuss retirement expectations long before you retire. Here are some suggested questions to get the ball rolling: How will you spend time together? What will you do together? What will you do separately? How much money will you have saved for retirement? How much are you willing to spend?

Second, regularly discuss current and future income and spending... together! Studies show that couples with long-term financial happiness have joint financial discussions.

Third, acknowledge differing needs and wants. And last, consider buying Life Insurance.

If you are ready to start discussing retirement with your significant other, please reach out to Peter, who can help ensure you're both on the same page and have a plan that accounts for everyone's needs and wants in retirement. Schedule a complimentary appointment by calling (919) 300-5886 or visit www.RichonPlanning.com

Investors who are concerned about a recession are putting their money in "safe havens." As Peter Richon with Richon Planning explains to Erin Kennedy, gold is usually seen as a safe haven when markets and economies are facing headwinds. And during periods of high inflation, gold is often seen as a hedge.

Investing in gold makes sense if you're looking to diversify your portfolio, or if you're interested in insuring against the devaluation or collapse of the dollar. However, if you're looking to maximize the growth of your investments, investing in gold is probably not the best vehicle.

In this video, Peter walks through how to invest in gold through ETFs, and he explains when and how to buy actual gold bars. If you would like to add gold to your portfolio, please give Peter a call at (919) 300-5886 or visit www.RichonPlanning.com

#Gold #WealthManagement #Recession #Inflation