More Americans are tapping their 401ks because of financial distress. In fact, the number of people who made a hardship withdrawal surged 36% from the second quarter of 2022! If you're thinking of tapping your 401(k) early, Peter with Richon Planning and Erin Kennedy explain how it works and the risks, including:

-How can I withdraw money from my 401k without penalty?

-How the passage of the SECURE Act made hardship withdrawals even easier

-The lost "opportunity cost" of tapping your 401(k)

Keep in mind, if you're not 59.5 and you make a withdrawal, not for a hardship, you're going to face a 10% penalty and income taxes! Whereas, with a Roth account, you can always tap your contributions without facing any penalties. If you're looking to find some supplemental income, please feel free to chat with Peter about your best options; there may be some strategies you haven't considered. Book a complimentary consultation by calling (919) 300-5886 or by visiting www.RichonPlanning.com

#WealthManagement #401k #Retirement #TaxPlanning

Many retirees are surprised to learn that above a certain income, Social Security is taxed. In retirement, it's important to know how all your income streams will be taxed, and how to mitigate those taxes. In this video, Peter with Richon Planning explains 3 strategies to Erin Kennedy:

1. Convert to a Roth IRA
2. 2. Consider Shifting Income Investments
3. 3. Delay Claiming Your Social Security Benefits

Another strategy to consider is a Qualified Charitable Distribution. Determining which strategy is right for you is a very personalized calculation, and it's something we specialize in at Richon Planning. For your detailed and personalized retirement tax plan, please give Peter a call at (919) 300-5886 or visit www.RichonPlanning.com

#Retirement #WealthManagement #SocialSecurity #Taxes

There are many reasons people put off saving for retirement; it's hard to imagine your life 40 or 50 years into the future. But there are also many reasons to start saving as soon as possible. So what are the five steps young investors can take today? Peter at RichonPlanning breaks it down with Erin Kennedy:

1. Track Your Budget: it's important to know what's coming in and what's going out before you make any financial decisions
2. 2. Set Aside Money for Big Expenses: would you like to save for a down payment? A wedding? A nice vacation?
3. 3. Open a Roth account: you'll probably never be in a lower tax bracket, so pay your taxes now!
4. 4. Contribute to a 401(k): at least up to the company match
5. 5. Focus on the Long Term: the sooner you start saving, the sooner you can reap the long-term reward of compound interest, which allows your principal investment to grow thanks to compounding dividends

And don't forget to create that "emergency fund," which should be 3-6 months' worth of expenses.

If you'd like to talk about your investing strategy, or if you're trying to make up for lost time, please feel free to reach out to Peter for a complimentary consultation at www.RichonPlanning.com or call (919) 300-5886.

#investingtips #younginvestors #CompoundInterest

Scams targeting older adults are on the rise. In 2021, there were almost 93 thousand older victims scammed out of $1.7 billion! In a recent report from the BBB, romance scams continued to be the riskiest scams for people 55-64, other common scams include government impersonation scams, sweepstake scams, and robocall scams.

In this video, Peter Richon with Richon Planning walks through several scams with Erin Kennedy, and offers this advice:

-Watch out for phone fraud

-Research before making an investment

-Be on guard for "sweetheart" swindles

-Reach out to someone you trust -Guard your personal information

Older adults are often targeted because of their greater financial resources. And sadly, one third of elderly people who've been scammed are too ashamed to tell anyone. Be vigilant. These scams are sophisticated and are designed to play to your emotions. If you have any questions about how to keep your finances safe, please feel free to give Peter a call at (919) 300-5886 or set up a free appointment at www.RichonPlanning.com

#Scams #ElderlyScams #WealthManagement #SweetheartSwindle

Before you exchange your annuity, there are several questions you should consider first. As Peter with Richon Planning explains to Erin Kennedy, there are many situations where an exchange or transfer makes sense, and there are many instances when exchanging your annuity is not a good idea. So before you do anything, watch out for these red flags:

-You're still within surrender charge period -You are offered a "bonus" or "premium" payment -You think you might need money from the annuity soon -You're not offered added benefits or a guaranteed lifetime rider -You pay higher charges for new features or features you don't need -You're told the "market value adjustment" negates the surrender charge

It's important to know that annuities do generate a commission for the advisor. Which is why some unscrupulous advisors push annuity exchanges; the exchange or transfer generates another commission for the advisor. If your advisor is not upfront about how he or she is compensated, that is another red flag. At Richon Planning, we value transparency. And we would be happy to offer a second opinion if you're being told you should exchange your annuity. For a free conversation, please reach out to Peter by calling (919) 300-5886 or schedule an appointment at richonplanning.com

#annuities #financialplanning #wealthmanagement

The Social Security fund is set to run out of money by 2033. One measure that could help keep the program afloat would be to raise the retirement age, possibly to 70 years old! In this video, Peter with Richon Planning and Erin Kennedy break down the 3 ways this could affect your financial plan:

1. An early retirement could be even more costly
2. 2. You may have to work longer than you're able
3. 3. You may run out of savings

And remember, claiming social security early will become even more costly! For example, if your full retirement age is 67, claiming Social Security at age 62 will result in a permanent 30% reduction in benefits. If the full retirement age were pushed to 70, claiming benefits at age 62 would lead to a permanent reduction that surpasses the current 30% mark!

Designing a holistic financial plan that accounts for all these variables is something we specialize in at Richon Planning. If we do see the full retirement age pushed back, we can help you determine how long you'll need to keep working, or whether you can retire early. To talk through your unique financial goals and to find out whether you're on track, please reach out to Peter by calling (919) 300-5886 or by visiting www.RichonPlanning.com

#socialsecurity #wealthmanagement #financialplanning

You've heard it before: the best time to buy Long Term Care Insurance is before you need it. Now, you may not have an option. Thirteen states are considering taxing you, if you don't have a long-term care insurance policy. And as Peter with Richon Planning explains to Erin Kennedy, he believes we will see more and more states adopt the tax.

However, there are ways to prepare for the tax and for the cost of LTC Insurance. Following the passage of the SECURE Act, you may be able to buy LTC insurance directly from your 401K! Distributions from those plans would be exempt from the 10% penalty on early distributions as long as they're used to pay premiums for high quality, long-term care insurance.

Having a plan for long-term care is vitally important; seven out of ten people will need long-term care at some point in their life. If you'd like to talk through your options for healthcare or long-term care insurance, please call Peter at (919) 300-5886 or make an appointment by visiting www.RichonPlanning.com

#LTC #LTCInsurance #LongTermCare #WealthManagement #SECUREAct #Insurance

Only one third of retirees are comfortable spending their retirement money! Most would rather live off Social Security, pensions, or income from part-time work, rather than spend down their nest egg. It is a delicate balance in retirement: you don't want to compromise your quality of life, but neither do you want to run out of money!

Peter with Richon Planning specializes in helping people change their mindset in retirement. He explains his action plan to Erin Kennedy:

1. Create a Spending Plan
2. 2. Assess Fixed Income Sources
3. 3. Bridge the "Retirment Gap"

A holistic financial plan will include sustainable income sources that will allow you to feel comfortable spending (or even growing!) the money you've worked so hard to accumulate. This kind of planning is what we specialize in at Richon Planning. If you have any questions about designing a retirement you can enjoy, please give Peter a call at (919) 300-5886 or visit www.RichonPlanning.com

#WealthManagement #Retirement #SocialSecurity #SustainableIncome

"America's IRA expert," Ed Slott, recently told other industry experts that "an IRA is just an IOU to the IRS." Slott says he doesn't see any benefit to using a traditional IRA right now because tax rates are so low. However, Peter with Richon Planning does not agree with Slott and explains why to Erin Kennedy.

There are many reasons investors should still consider investing in tax-deferred accounts, even though we are living in a historically low tax rate. There is no cookie cutter answer. No blanket statement can apply to every person; there are too many variables to consider. For example, what's your current tax rate, what will your future tax rate be? You may very well be in a lower tax bracket when you retire, so taking a deduction today, does make sense.

If you'd like to learn more about whether contributing to tax-deferred or tax-free accounts make sense for you, please reach out to Peter by calling (919) 300-5886 or by making an appointment at www.RichonPlanning.com

#wealthmanagement #retirement #TaxDeferred #taxfree #ira

401(k)s are generally the most accessible and easiest way to save for retirement, but should you really be maxing out your contributions every year? In this video, Peter with Richon Planning and Erin Kennedy break down the pros and cons of stashing a lot of money in a pre-tax account, and Peter explains when you should consider investing in other accounts as well.

If you'd like to sit down with Peter to determine where you should be putting your money to ensure a happy and tax-efficient retirement, please feel free to give him a call at (919) 300-5886 or schedule a free meeting by visiting www.RichonPlanning.com

#WealthManagement #Retirement #401k #TaxPlanning