Planning Matters Radio

If you're nearing the age to take Required Minimum Distributions, or #RMDs, and you want to avoid the extra income and its tax implications, Peter Richon with Richon Planning and Erin Kennedy break down three strategies to consider. Peter recommends these strategies to help reduce your tax exposure:

1. Consider taking distributions as early as possible

2. Roth Conversions

3. Qualified Charitable Distributions, or QCDs

Keep in mind, RMDs are income, so taking those distributions can boost your taxable income and your income taxes for the year, which is why strategic #tax planning is so important. If you have any questions about these strategies, or if you'd like to determine if a Roth Conversion or QCD is right for you, please reach out to Peter for a free consultation by calling (919) 300-5886 or by visiting www.RichonPlanning.com

The end of the year is upon us, so now is a great time to consider a Qualified Charitable Distribution or #QCD. As Peter with Richon Planning explains to Erin Kennedy, this is a great way to make a large gift to your favorite non-profit while lessening your tax burden.

When structured correctly, a QCD allows your donation to go directly from your IRA custodian to your chosen charity. Not only can it be counted toward satisfying your required minimum distributions or #rmds , but it also decreases your adjusted gross income.

Richon Planning specializes in holistic tax planning. If you'd like to determine if a QCD is right for you, please reach out for a complimentary consultation by calling (919) 300-5886 or by visiting www.RichonPlanning.com

If you're considering converting an #IRA to a #Roth IRA in 2022, the clock is ticking. In this video, Peter with Richon Planning and Erin Kennedy break down everything you need to know before making a decision.

Keep in mind, we are in a historically low tax rate. Paying your taxes now will allow your money to grow tax free, and any future withdrawals will not be taxed. Also, to help manage your tax liability, you may choose to convert just a portion of your assets. There is no limit to the number of conversions you can make, so you may convert smaller amounts over several years. If you'd like to get started, or if you'd like to talk through the benefits of a Roth Conversion, please call (919) 300-5886 or schedule an appointment at www.RichonPlanning.com

New #Retirement Account Contribution Limits for 2023

The #IRS just announced that it will boost the maximum contribution limit to #401k accounts by $2,000 next year... to $22,500! This is the largest increase on record. The contribution limit for an IRA is also set to increase... to $6,500 from $6,000. As Peter with Richon Planning explains to Erin Kennedy, this move will allow millions of us to contribute thousands more into tax- advantaged retirement accounts.

But keep in mind, every retirement plan has to include tax planning and tax diversification. In fact, 401(k)s are known as "retirement tax bombs." If you'd like to talk through the tax implications of your retirement accounts, and why you should consider #Roth accounts, please feel free to reach out for a complimentary consultation by calling (919) 300-5886 or by visiting www.RichonPlanning.com

#TaxPlanning #RetirementPlanning #WealthManagement #TaxDiversification

Good news from the #IRS: inflation adjustments could mean lower tax rates come 2023! As Peter with Richon Planning explains to Erin Kennedy, tax rates are adjusted for inflation, and 2022 saw America's fastest price growth in four decades! That means most of us will be able to shield more of our income

from taxes in 2023.

Also new for 2023, the IRS is increasing the standard deduction, marking the largest adjustment to deductions since 1985! However, these significant changes underscore the importance of proactive tax planning, which is something we specialize in at Richon Planning. If you would like to talk through these changes and how they affect your unique financial goals, please reach out for a complimentary consultation by calling (919) 300-5886 or by visiting www.RichonPlanning.com

#Taxes #RetirementPlanning #WealthManagement #inflation #TaxRate #StandardDeduction

The Only Retirement Account that is Triple #Tax Advantaged!

A health savings account, or #HSA, has a unique triple #tax benefit. Your contributions reduce your taxable income, any investment growth within the account is tax-free, and qualified withdrawals are tax-free! As Peter with Richon Planning explains to Erin Kennedy, if you have a High Deductible Health Plan, or #HDHP, it's often worth taking advantage of the HSA.

Peter breaks down how to use the money in your account to pay medical bills and how to utilize it as an investment tool as well. He also breaks down common mistakes when creating and investing HSAs.

As you work to determine which health plan is right for you and your family in 2023, Peter would be happy to help you determine if a HDHP makes sense for your unique financial goals and priorities. Please feel free to reach out by calling (919) 300-5886 or by visiting www.RichonPlanning.com

#WealthManagement #Retirement #Healthcare

We are firmly in Bear Market territory. Stocks and bonds are sharply negative. The market has lost nearly one quarter of its value since the beginning of the year. But while these headlines can lead to anxiety, as Peter with Richon Planning explains to Erin Kennedy, it's important to stick to and rely on your "financial plan."

Often, during market downturns, investors tend to panic and leave the market. And when the market recovers, those investors miss out on the rally, further compounding their losses.

No one knows when this Bear Market will hit bottom. But if you've taken the time to design a thoughtful and holistic financial plan, you'll see that these moments of volatility were built into the plan already and, depending on your time horizon, can even offer unique investing opportunities. Of course, if you have any questions, please feel free to reach out to Peter at any time by calling (919) 300-5886 or by visiting www.RichonPlanning.com

Social Security just announced an 8.7% cost of living adjustment for retirees! The COLA increase will be applied to benefits in January of 2023. That's the largest inflation adjustment since 1981, when it was 11.2%. Peter with Richon Planning explains to Erin Kennedy why this year's Cost of Living Adjustment, or #COLA, is so high and whether this change should affect your claiming strategy.

If you'd like to speak with Peter to determine when you should claim Social Security, Richon Planning actually specializes in running very personalized analyses to determine your most "financially optimal" strategy. Please feel free to reach out for a complimentary consultation by calling (919) 300-5886 or by visiting www.RichonPlanning.com

#SocialSecurity #Retirement #WealthManagement #SocialSecurity2023

We are still firmly in Bear Market territory. #Stocks and #bonds are sharply negative. In fact, the market recently lost nearly one quarter of its value since the beginning of the year. But those negatives actually offer some unique opportunities according to Peter at RichonPlanning. He breaks down several strategies with Erin Kennedy,

including:

1. Tax Loss Harvesting

2. Rebalancing

3. Avoiding Phantom Income

4. Roth Conversions

5. RMDs

If you have any questions about how to employ some of these tax strategies, please reach out to Peter for a complimentary consultation by calling (919)300-5886 or by visiting www.RichonPlanning.com

Rising interest rates will cause lump sum #pension buyouts to be significantly lower in 2023. That has a lot of pre-retirees wondering if they should be considering an early #retirement. Peter with Richon Planning walks through several important questions you should ask yourself before accepting that buyout.

Peter recommends to Erin Kennedy that you sit down with a trusted financial advisor who can help you create a plan that incorporates not only the value of your lump sum buyout, but also factors in other income sources, tax planning, and your legacy goals.

There is no cookie-cutter answer to this question. But the sooner you have a thoughtful conversation that factors in your unique goals and financial priorities, the better. Peter would be happy to sit down with you to determine what's best for you and your financial future. Please reach out for a complimentary consultation by calling (919) 300-5886 or by visiting www.RichonPlanning.com