Between 2010 and 2030, the Baby Boomer generation (estimated at 73 million individuals) is retiring at a rate of 10,000 people per day, and while each of these individuals likely looks toward their new found freedom with excitement, they also face significant challenges. One of the most significant challenges is ensuring their money lasts throughout retirement.

When asked about the most likely reason they may run out of money, most retirees will say a significant market decline that reduces the value of their investment accounts. However, history shows that inflation and the loss of purchasing power over time is likely a more significant risk.

In this episode, we discuss how retirees can balance the risk of market fluctuations with the loss of purchasing power as they construct a portfolio to last throughout their lifetime.

If you are interested in learning more about how to invest for retirement, we think you’ll enjoy this episode. Thanks for listening!

For more details on investing for the future, check out our blog post covering the same topic at https://pw-wm.com/learn/investing/your-greatest-retirement-risk/

At the end of 2023, the Magnificent 7 (Apple, Microsoft, Amazon, Google, NVIDIA, Meta, and Tesla) accounted for 28% of the S&P 500 index. With many of the largest exchange traded funds and mutual funds tracking the S&P 500 index, numerous investors have chosen to passively track the S&P 500 index with a significant portion of their portfolio.

While the S&P 500 has generally been regarded as a very diversified index, many investors don’t understand the level of concentration that the S&P 500 has in the largest tech companies.

On this episode, we discuss how an index holding 500 companies can end up with 28% of its allocation in only seven companies, the risks that this can present, and whether there are better approaches that can mitigate the risks.

If you are interested in learning more about how to invest for long-term success, we think you’ll enjoy this episode. Thanks for listening!

For more details on the Magnificent 7 and market cap weighting, check out our blog post covering the same topic at https://pw-wm.com/learn/investing/the-magnificent-seven-and-market-cap-weighted-indexing/

Happy New Year! Looking back at 2023, it was a whirlwind year that began with bank failures in March, continued fighting between Russia and Ukraine, a new war between Israel and Hamas, consistent increases in interest rates, and retreating inflation.

In this episode, we recap 2023 market performance and consider the key changes and planning opportunities for 2024 that individuals should consider and implement.

If you are interested in learning what’s changing as we roll into the new year and how you can update your financial plan to be prepared for the year ahead, we think you’ll enjoy this episode. Thanks for listening!

For more details on key changes and planning opportunities for 2024, check out our blog post covering the same topic at https://pw-wm.com/learn/financial-planning/key-changes-for-2024-and-planning-opportunities/.

Beginning in March 2022, the Federal Reserve began raising interest rates in an attempt to mitigate high inflation. Over the course of the last two years, the Federal Reserve has raised interest rates 11 times resulting in targeted interest rates that are 5.25% higher than they were at the beginning of 2022.

In this episode, we discuss how the rapid increase in interest rates has resulted in certificates of deposit (CDs) paying over 5% to savers. With the increase in CD rates, the advertisement of CD specials has exploded with nearly every bank marketing their attractive CD rates to the public. Naturally, this has led many individuals to ask the question whether CDs are right for them.

If you are interested in learning about CDs and points to consider when determining if they are appropriate for your situation as well as alternatives that may make more sense in specific cases, we think you’ll enjoy this episode. Thanks for listening!

For more details on certificates of deposit, check out our blog post covering the same topic at https://pw-wm.com/learn/investing/cd-rates-are-over-5-should-you-buy-them/.

As year-end approaches and individuals begin considering their charitable giving goals for 2023, it is important to consider not just the charities to support, but also the most tax-efficient way to contribute.

In this episode, we discuss how qualified charitable distributions (QCDs) directly from your IRA to charity may be the most tax efficient way for individuals who are at least age 70 ½ to fulfill their charitable goals. Since QCDs are excluded from income, individuals are able to lower their taxable income and reduce their tax obligation – even without itemizing their deductions.

If you are interested in learning how to minimize your tax burden and maximize the impact of your charitable giving, we think you’ll enjoy this episode. Thanks for listening!

For more details on qualified charitable distributions, check out our blog post covering the same topic at https://pw-wm.com/learn/tax-planning/using-your-ira-for-tax-efficient-charitable-giving/.

With the challenges that come from creating and running a small business, most small business owners spend a majority of their time dealing with the day-to-day tasks necessary to keep the business moving forward. This often leaves little time to consider the various retirement plans that are available which can provide significant tax advantages to the small business owners and their employees.

In this episode, we discuss the various small business plans available to small business owners and how implementing the right retirement plan can accelerate their wealth accumulation by hundreds of thousands and potentially millions of dollars over their career.

If you are interested in learning how small business retirement plans can help you accelerate your wealth accumulation, maximize your retirement savings, and minimize your tax burden, we think you’ll enjoy this episode. Thanks for listening!

For more details on small business retirement plans, check out our blog post covering the same topic at https://pw-wm.com/learn/tax-planning/maximizing-small-business-retirement-plans/.

One year ago, we highlighted a high return and low risk investment, Series I Savings Bonds (I Bonds), which were yielding an annualized 9.62% due to the high inflation rate in the United States. Since then, the inflation rate has decreased and the inflation component of the I Bond yield has declined to 3.38% as of May 1, 2023. As a result, investors have redeemed over $1.2 billion since the beginning of May. In this episode, we discuss the one-year return of I Bonds for those who invested last fall and consider whether now is the right time to redeem.

If you are interested in revisiting I Bonds to see how the investment turned out and whether they remain a good option going forward, we think you’ll enjoy this episode. Thanks for listening!

For more detail about our I Bond discussion, check out our blog post covering the same topic at https://pw-wm.com/learn/investing/revisiting-i-bonds-is-it-time-to-redeem/.

Will you need long-term care during your lifetime? If so, what will it cost and how will you pay for it? As individuals progress through retirement, the possibility of needing long-term care becomes an important consideration. The cost of long-term care can be substantial and a common fear for many individuals is losing their life savings in the event that they need assistance in the future. In this episode, we discuss the cost of long-term care as well as the considerations individuals should be thinking about before they actually need assistance.

Those who plan ahead are most likely to be prepared and will have the best chance to effectively navigate the expensive landscape of long-term care costs.

If you are interested in learning more about the cost of long-term care and the considerations you should be thinking about now, we think you will enjoy this episode. Thanks for listening!

For more detail about planning for and navigating the cost of long-term care, check out our blog post covering the same topic at https://pw-wm.com/learn/financial-planning/are-you-prepared-for-long-term-care/

What does it take to be wealthy? While each person may have a different financial threshold in mind, most people have a similar mental picture of what wealthy looks like. They see a fancy home, nice cars, and lavish vacations enjoyed by someone who sold their company for a fortune or received a significant inheritance. This month we are discussing how most individuals have accumulated their wealth and how you can too! The research shows that most millionaires did not get lucky, strike it rich, or receive a substantial inheritance. They accumulated their wealth gradually over a long period of time. They lived on less than they earned, they saved consistently over time, and they let their investments ride regardless of market conditions.

If you are interested in learning the simple and attainable strategies that others have used to create long-term wealth and how you can too, we think you will enjoy this episode. Thanks for listening!

For more detail about building wealth, check out our blog post covering the same topic at https://pw-wm.com/learn/investing/the-misperception-of-wealth/

Over the past decade, real estate values have soared. Nearly everyone knows someone who has “made a fortune” in real estate and touts it as a “can’t miss” opportunity. While real estate is a valuable addition to many investment portfolios, all real estate is not created equal. Real estate is an industry just like anything else, and those who have devoted careers to it are much more likely to succeed than those who simply dabble with the hope of making a quick return. Since most individuals with a full-time career in another field do not have the time or desire to develop the skills to succeed in real estate, the majority of individuals are best served by passively investing in real estate deals led by professional real estate sponsors. In this episode, we discuss the key factors to evaluating and identifying quality sponsors that create long-term value for their investors. If you are interested in private real estate investing, we think you’ll enjoy this episode. Thanks for listening!

For those who are interested in even more detail about evaluating real estate sponsors, check out our blog post covering the same topic at https://pw-wm.com/learn/investing/private-real-estate-investing-evaluating-sponsors/.