Insurance often feels like an unnecessary expense—until a crisis strikes. Much like a sturdy roof during a hailstorm, insurance shields you from the unexpected, preserving your wealth and protecting your family’s lifestyle. Whether it’s a car accident, a natural disaster, or a less-discussed event like disability or long-term care needs, insurance helps ensure that life’s surprises don’t derail your financial future. Protect the wealth you’ve built with proper insurance. A Story About Unseen Risks Take, for example, a financial advisor whose client believed their insurance was sufficient. Their teenage son was involved in a car accident that resulted in a lawsuit. The family’s liability coverage fell short, exposing their assets and threatening their financial security. This situation could have been avoided with proper planning and an annual review of insurance coverage to ensure it aligned with their growing wealth. The Importance of Identifying and Transferring Risk Life evolves, and so do your financial responsibilities. Here’s how insurance plays a vital role: Family Income : Disability insurance protects against the financial strain of being unable to work. Liabilities : Umbrella insurance adds a layer of protection to safeguard your wealth in lawsuits or accidents. Estate Planning : For high-net-worth families, permanent life insurance can help cover estate taxes, preserving wealth for future generations. Long-Term Care : In-home care or assisted living policies shield your savings from the high cost of care. A Proactive Approach to Peace of Mind Insurance premiums aren’t a financial “loss”—they are an investment in stability. By working with your advisor to identify and quantify potential risks, you can ensure those risks are adequately transferred. This is especially important as market growth boosts your net worth, making comprehensive protection more essential than ever. Final thought Have you evaluated the risks to your financial well-being recently? Are your insurance policies up-to-date and sufficient to protect your lifestyle? An annual review with your financial advisor can bring clarity, security, and peace of mind to your financial journey. Don’t let the unexpected jeopardize the wealth you’ve worked so hard to build. Take control. Plan ahead. Protect what matters most. You may also be interested in reading more about how to protect your wealth: Bulletproof Your Wealth for the Next Generation 6 Scenarios Where You May Need an Investment Expert You may also be interested in reading more about Insurance: Life Insurance Explained: Term vs Whole Life Should I Have Life Insurance? Who Should Be Your Life Insurance Beneficiary? Don’t Miss Your Boat: Plan for Insurance Changes Before Retirement Why is Insurance an Important Investment for Protecting Personal Wealth? What do I Need to Know about Disability Insurance? When Should I Review My Insurance Plans? - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

Receiving a diagnosis of Alzheimer's can feel overwhelming, bringing a mix of emotions—fear, uncertainty, and perhaps relief in understanding recent changes in behavior. But after that initial moment, the realization of the journey ahead sets in. Alzheimer’s care demands thoughtful planning, with healthcare becoming a top priority. To help you prepare for what’s ahead, here are key insights into managing Alzheimer’s care costs and planning for a secure future. What Does Medicare Cover for Alzheimer’s Care? Most individuals with Alzheimer's are aged 65 or older, making it essential to understand Medicare's scope of coverage. While Medicare covers hospice care when a doctor confirms the patient is in the late stages of life, hospice isn't just for end-of-life care. Often called comfort care, it provides pain management and emotional support, which can significantly improve quality of life for Alzheimer’s patients. If Medicare's coverage feels insufficient, consider exploring Medicare Advantage plans . These plans offer the same benefits as Medicare Parts A and B, plus additional perks like prescription drug coverage, vision, dental care, fitness services, and caregiver support—critical features when managing a complex disease like Alzheimer’s. How Can You Manage Out-of-Pocket Expenses? Alzheimer’s care can become expensive, and you may need to cover some costs yourself. Downsizing—like selling your home to fund care at an assisted living facility—might be an option. Other resources, such as investment dividends or property sales, can also provide valuable financial support for long-term care. Being proactive with financial strategies can prevent disruptions in care. For example, you could consider selling a life insurance policy for a lump-sum payout, allowing you to fund essential services like in-home care, medical devices, or home modifications not covered by insurance. It’s also wise to consider future expenses, such as funeral costs. With funerals typically costing between $7,000 to $10,000, purchasing burial insurance now can help alleviate the financial burden on your family by covering final expenses and any remaining medical bills or debts. Where Can You Find Good, Affordable Alzheimer’s Care? Family Caregivers: A family member might step into the caregiving role, which can be both fulfilling and challenging. While this is often the most affordable option, proper training—like CPR or techniques to manage Alzheimer’s-related behaviors—will better equip them for the role. Professional Caregivers: Hiring a nurse or caregiver experienced in Alzheimer’s care can offer more specialized support. When hiring, be sure to interview candidates thoroughly, check references, and factor in additional expenses like food, mileage, and paid time off. Assisted Living Facilities: If in-home care becomes unmanageable, assisted living facilities with Alzheimer’s-specific programs are another option. These facilities often come with higher costs, but downsizing and selling assets—such as a home—can offset these expenses. When touring facilities, focus on balancing comfort, care quality, and affordability. Planning for a Better Tomorrow Making decisions about Alzheimer’s care can feel overwhelming, especially as memory loss and confusion set in. But you’re not alone—millions of families in the U.S. face these challenges. The key is early planning and open conversations with loved ones. By preparing now, you can ensure your care is in place for the future while reducing stress. Need Help Planning for Retirement? At Peak Wealth Planning , we help clients navigate every stage of retirement—including planning for health challenges like Alzheimer’s. Whether you’re looking to safeguard your financial future, manage ESOP shares, or create a long-term care plan, our team provides personalized guidance to meet your needs. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

This article was originally published on Kiplinger  on October 23, 2024. This is the final part of a six-part series in which Peter Newman, CFA, of Peak Wealth Planning , explains the benefits of employee ownership for the U.S. workforce. There are more than 6,500 Employee Stock Ownership Plans, or ESOPs, in the U.S. covering almost 14 million employees. See below for the links to the previous articles in the series.  Continuing our informative series on Employee Stock Ownership Plans (ESOP), this article seeks to shed light on the retirement income your ESOP could generate. Having already discussed the fundamentals of ESOPs and the benefits and drawbacks of diversifying company stock when eligible, we now delve into how a well-crafted strategy of diversification and distribution can transform your ESOP into a rewarding retirement nest egg. Before we walk through an illustrative example, let’s reiterate key terms to ensure a clear understanding:  Diversification , in the ESOP context, allows employees to sell their stock back to the company. This option generally becomes available when an employee reaches 55 years of age and has participated in the ESOP for at least 10 years. Distribution , on the other hand, pertains to the process wherein employees, upon reaching retirement age, can sell stock back to the company over a specified number of years. Many ESOP plans allow employees to retire at age 65 and sell back about 20% of their account balance each year across a span of five years. A man nearing retirement scrolls online to gather insights about his ESOP and retirement income strategies. How much retirement income will I have? When you retire, you won’t receive a regular salary as you did while working. Instead, your retirement income, essentially a self-produced “paycheck”, will be withdrawals from the nest egg you’ve built up over your working years. The larger the nest egg you have saved, the greater your retirement income. ESOP participants will often use an individual retirement account (IRA) to invest and manage their retirement nest egg. Turn Your ESOP into a Retirement Nest Egg You can turn your ESOP into a retirement nest egg by selling shares back at the diversification milestones of age 55 and age 60. The proceeds from selling shares back are rolled over to an IRA account and invested into a diversified portfolio of stocks and bonds with the help of your financial advisor . Rolling over your proceeds over to an IRA allows you to continue to grow your retirement nest egg until you reach retirement age 65. How a $1 million ESOP balance can turn into $88,000 in retirement income: an example A 55-year old ESOP participant named Rose with a $1 million account balance does a rollover to an IRA for 25% of her ESOP share value at 55, then another rollover for 25% of her cumulative shares received at age 60. Rose’s ESOP returns and her rollover IRA returns are assumed to be 6% each year. These returns are not guaranteed, and her investments may lose value.  Rose receives additional company shares between age 60 and 65 through her ESOP participation and works until age 65. Rose should be able to retire then with a nest egg worth about $2.2 million ($1.04 million in her ESOP and $1.16 million in her IRA).  By applying the well-known 4% spending rule to Rose’s retirement nest egg balance, Rose should be able to spend $88,000 a year before taxes at the beginning of her retirement at age 65. Rose should also receive Social Security, further boosting her income, when she reaches full retirement age.  During retirement, Rose will continue to roll over retirement distributions from her remaining ESOP balance to her IRA during a five-year period. This will further diversify her portfolio and increase the value of her nest egg. What to Keep in Mind Your company's retirement distribution schedule may vary, so it’s important to consult your Summary Plan Document (SPD) or check with your ESOP representative. Depending on your company’s procedures, there may be a delay of several days or up to eighteen months between the time you request an ESOP distribution to the time you receive a check or electronic transfer. You’ll want to talk to your ESOP representative and financial adviso r about timing if you need the money at the start of your retirement.  There are three main benefits of using an IRA rollover to manage your ESOP distributions: You'll spread the taxes owed on the stock over many years instead of paying a large amount all at once, often at a higher marginal tax bracket. Your IRA's financial advisor can help you choose investments and make financial decisions.  Using planned withdrawals from your IRA, you’ll be able to create a steady retirement income to replace your paycheck. Word of caution: ESOPs offer a wonderful retirement benefit for millions of employees in the US. However, they were not meant to be your only source of retirement income. While many ESOP companies are well run and participants can accumulate hundreds of thousands or millions of dollars in company stock , there have been notable failures of ESOPs as well as public companies where employees hold concentrated positions. It’s a good idea to aggressively contribute to your 401(k) at work in addition to building concentrated wealth in your ESOP account balance. And, consider your spouse or partner’s retirement plans in conjunction with your own savings. Want more information? Download Peak Wealth Planning’s guide to ESOP diversification and retirement income ? Do you need to forecast the income your ESOP can generate? The Peak Wealth Planning team can handle that and manage your investments too.   About this series In this series, Peter Newman, CFA, of Peak Wealth Planning  explains the retirement benefits of employee ownership to the US workforce. There are more than 6,500 ESOPs in the US covering almost 14 million employees. For participants, ESOPs can be an important component of your retirement income plan. Other Articles in This Series Part one: Five Key Advantages to Working at an Employee-Owned Company Part two: How Does an Employee Stock Ownership Plan, or ESOP, Work?   Part three: Five Things Employee Owners Need to Know About Their ESOP Part four: Should an ESOP Be Your Only Retirement Account? Part five: Understand Your ESOP Benefit: The Diversification Option - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA®) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

Audio originally published on Podcast 71 October 8, 2024. Planning for retirement is a crucial aspect of financial wellness, and if you're part of an employee-owned company, you might have unique opportunities to build wealth through an Employee Stock Ownership Plan (ESOP) . In a recent podcast, I had the pleasure of speaking with Peter Newman, founder of Peak Wealth Planning, LLC, a firm that specializes in helping ESOP participants secure their financial futures. Financial Planning for ESOP Participants - Peter Newman is interviewed by Elizabeth Wheeler for the Parksite Podcast 71. The Importance of Planning Early Many of us tend to push off retirement planning, especially in the early stages of our careers. I have heard a number of my peers say, "I wish I had started planning for retirement sooner in my career." This is a sentiment many of us share, but it’s never too late to begin. For younger employees, even small, consistent contributions can make a big difference. Peter recommended starting with as little as $20 a week. It may seem small, but over time, that adds up—and thanks to compound interest, you’re not just saving money, you’re growing it. Financial Benchmarks by Age Peter shared some useful benchmarks for those wondering if they’re on track for retirement: By age 35, aim to have twice your salary saved. By age 45, try to have four times your salary saved. By age 60, aim for six times your salary.   These benchmarks can help guide your saving strategy and provide a clear path forward. Remember, these savings can come from multiple sources, including ESOP balances, IRAs or 401(k) plans. When coupled with Social Security benefits, they provide a minimum viable retirement nest egg.   Understanding ESOPs and Retirement Planning As an ESOP participant, you may not be a high earner throughout your career, but the potential for building wealth is significant. ESOP balances can range widely, with some individuals retiring with substantial sums. These can range from tens of thousands into the hundreds of thousands or even millions of dollars. Peter highlighted the critical decision of when to sell your ESOP shares. Many companies allow partial sale at age 55, with further opportunities at 60 and full distribution upon retirement. The question then becomes: Should you reinvest that money into a retirement account like an IRA, or should you use it for immediate expenses? This is where personalized financial advice is invaluable. How to Find an ESOP Financial Advisor One of the key takeaways from our discussion was the importance of working with a fiduciary—someone legally required to act in your best interest. Peter recommended looking for a Certified Financial Planner (CFP) or a Chartered Financial Analyst (CFA) who has experience working with ESOPs. They can help you navigate decisions about diversification, tax considerations, and long-term investment strategies. Peter also stressed the importance of understanding how your financial advisor gets paid. Transparency is key, and you should feel comfortable asking questions to ensure you're receiving unbiased advice.   Conclusion: Building a Strong Financial Foundation In conclusion, building wealth and securing a comfortable retirement is not something that happens overnight—it requires careful planning, consistency, and the right guidance. Whether you're just starting out or approaching retirement, it's important to take proactive steps toward your financial future.  If you're part of an ESOP, you're already on a great path, but making the most of it means knowing when to sell your shares, how to diversify, and how to set realistic savings goals. As Peter Newman wisely stated, “Your savings account is life’s shock absorber.” With the right plan in place, you can absorb life’s financial shocks and enjoy the stability of a well-rounded retirement plan. Are you on track with your retirement planning? If you have any questions or want to learn more, don’t hesitate to reach out to a financial expert who can guide you on your journey to financial freedom. If you have a net worth over $2 million and need help from a wealth manager, the Peak Wealth Planning team can assist you . - - - - - - - - - - - - - - - About the Author Elizabeth Wheeler  is the Manager of Communications  at Parksite Inc. , a leading building material supplier and 100% ESOP S Corp. In her role, she oversees both internal and external communications, fostering a strong ESOP culture among the company’s 420+ associates. Elizabeth manages public relations (PR), podcasting, charitable initiatives, political lobbying efforts, and strategic messaging for the organization. Elizabeth is also actively involved in ESCA's Leadership and Development Council and the Illinois ESOP Association, where she contributes to advancing employee ownership initiatives. Previously, Elizabeth served as the Vice President of HomeAid Chicago and held roles as the Director of Communications for the Northern Illinois Home Builders Association and Employee Relations Manager at Hollywood Casino.

Guest post by Karen Weeks of Elder Wellness Budgeting Tips for Seniors on a Fixed Income As you are prepare to enter your retirement years, you have much to look forward to. Without the nine-to-five burden, you will have more free time on your hands and can put greater effort into enjoying friends, family, and hobbies that you love. You still need money to maintain your lifestyle, however, and you may be worried that your funds will run dry when you no longer have a fixed income. This is a common fear: Surveys show that the majority of older persons are concerned that they will run out of cash during their retirement years. Luckily, with a bit of preparation and oversight, you can make sure this doesn’t happen to you. Follow the 4 tips below to protect yourself financially in the years to come. Tip 1: Get a Handle on Your Monthly Expenses If you want to tweak your budget, you need to figure out what your current earning and spending habits look like. Begin by creating a monthly budget. Collect your financial statements, list your expenses, and setting your goals. This allows you to see where your money is going and areas where you can cut down. For instance, if you have a public transportation pass that you pay for but rarely use because you are retired, this is an expense you can likely save on going forward. You can also reconsider “luxury” costs like going out to eat. Tip 2: Downsize Your Home to a Cheaper Property If you have a large family home and your kids are long gone, you might consider moving to a smaller property. You can sell the house and use the profits to fund the down payment you will need for a new place. Downsizing also has other benefits for seniors: It means you will spend less money and time on home maintenance. When looking for a new property, you can further focus on finding the perfect real estate for aging in place; for instance, you can opt for a one-story model that nixes the need to climb stairs. Tip 3: Hold Off on Collecting Social Security Social Security benefits are designed to keep people afloat after they retire. You might want to cash in on these advantages as soon as possible. If you do this, however, your benefits will be reduced by 25% compared to if you hold off claiming benefits until after the full retirement age of 66 . And, if you delay claiming your social security benefits until age 72 you will get an extra 32% monthly income. Tip 4: Make the Most of Medicare Health care is one of the most significant costs that older persons have to deal with. You can save significantly in the big picture by switching to a Medicare Advantage plan. The United States Medicare website explains how it's done. Medicare Advantage covers additional fees, such as certain preventive care procedures: For instance, Anthem provides expanded coverage for prescriptions as well as dental and vision services. Since it’s often cheaper to address healthcare problems when they are in their early stages instead of paying for large-scale treatments down the road, this is sure to be a monetary boon. Final Thought. Follow these tips and you will be on your way to enjoying retirement. They don’t require a lot of energy or time to implement but can spare you the stress of financial worries as you get older. This doesn’t just mean more money in your pocket, it also means peace of mind — which you can’t put a price on. With your financial security in retirement secured, you can focus on other aspects that are essential to happiness in retirement. If you are 60 or over, have $2 million or more in investments, and think you may need assistance with any of the areas above, the Peak Wealth team is here to help. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

At Peak Wealth Planning, the security of your personal information is very important to us, and we want to help you keep it protected. Protect your credit card information. We recently discovered a text message scam and wanted to make sure you are armed with everything you need to know to avoid falling victim to it. This scam involves sending text messages alerting you that your credit card account has been restricted and that you'll need to call a phone number to regain full account access. Once you call the provided number, the scammer will attempt to obtain sensitive information, such as your: Date of birth Social Security Number Mother's maiden name Card account number Card expiration date 3-Digit security code  If you receive a suspicious communication that appears to be from your credit card company trying to persuade you to provide the type of personal information listed above, please call the number on the back of your credit card to verify if it is legitimate. Awareness and education are your best defenses against scams Always proceed with caution and confirm requests are legitimate before responding to someone asking for personal information, money, or gift cards to resolve an urgent, yet fictitious scenario — such as a block on your account or the threat of an arrest. Please note, it is common for scammers to pose as a person you can trust, such as a family member, government official, someone you do business with, or a charity. Please visit the U.S. Federal Trade Commission's Identify Theft Info page to learn more about ways to protect your personal information. Do you think that you've fallen victim to a scam? If you think you may have been a victim of a scam or that your personal information has been compromised, you can place a fraud alert with your credit bureau by contacting one of the major credit reporting agencies. Experian:  1-888-397-3742 TransUnion:  1-800-916-8800 Equifax:  1-800-685-1111 You can also visit the U.S. Federal Trade Commission's Consumer Information to sign up for scam alerts, get information on the latest scams, and learn how to prevent yourself from becoming a victim. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

Imagine this: A financial advisor, well-regarded for building robust investment portfolios, discovers one of their clients has been blindsided by an unforeseen risk. Their teenage son was involved in a car accident, and while the family thought their insurance was sufficient, it wasn’t. A lawsuit followed, targeting their son’s assets and putting their wealth—and lifestyle—at significant risk. This real-world scenario underscores why conducting an annual review of unexpected risks is critical. As your wealth grows, particularly after a strong year in the stock market, your financial landscape changes. Higher balances and appreciating assets can attract potential legal claims, making it essential to reassess whether your current protections are adequate. Building financial confidence means protecting your wealth from risks. Goal: Shield yourself. Plan: Get a review. Action: Implement strategies. What Risks Could Be Lurking? Many people focus on growing their wealth but overlook the importance of protecting it. Here are some common gaps that can lead to devastating consequences: Liability Insurance : Do your homeowner’s and auto insurance policies provide sufficient liability coverage? Umbrella insurance could offer a crucial layer of protection. Health Events : If someone in your family faces a major medical crisis, would your insurance truly cover all expenses without derailing your financial plan? Travel Insurance: Do you regularly travel abroad? Do you have adequate travel insurance? Have you considered a medical concierge to coordinate care? Cybersecurity Threats : In a digital age, is your personal and financial information secure? Have you hired an IT consultant to review your vulnerabilities? The Benefits of a Comprehensive Review An annual review isn’t just about ticking boxes; it’s about maintaining peace of mind. A skilled wealth manager will help you: Identify risks that could harm your financial stability or lifestyle. Adjust your protection strategies to align with your current wealth. Ensure you’re prepared for potential “what if” scenarios, like lawsuits, long term care, medical emergencies, or even natural disasters. Protect What You’ve Worked Hard For While you may have seen your portfolio grow over the past year, true financial success goes beyond returns—it’s about safeguarding the lifestyle and legacy you’ve built. Don’t wait until a crisis exposes a gap. Work with your advisor to schedule an annual review of unexpected risks. Remember, it’s not just about wealth; it’s about security and the confidence to enjoy what you’ve achieved. Final thought. Are your financial protections keeping up with your success? From liability coverage to cybersecurity, an annual review can help safeguard your wealth and lifestyle. If your net worth exceeds $2 million and you’d like expert guidance, the Peak Wealth Planning team is here to help. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA®) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

As students across Illinois gear up for college, parents and grandparents play a vital role in helping them navigate the process of securing financial aid. Completing the Free Application for Federal Student Aid (FAFSA)  is a crucial step toward receiving scholarships, grants, and other financial support. Fortunately, there are trusted college financial aid resources in Illinois  to guide families through the process.  Below, we highlight two essential services that provide FAFSA support for Illinois students  and families. 1. Illinois Student Assistance Commission (ISAC) The Illinois Student Assistance Commission (ISAC)  offers free FAFSA help in Illinois  through virtual FAFSA counseling sessions . These one-on-one sessions take the confusion out of the application process and can be completed in as little as 30 minutes  with the guidance of an ISAC expert. To schedule a free session, visit the ISAC website . These FAFSA counseling sessions in Illinois  provide personalized assistance, ensuring students and families are equipped to complete their applications correctly and on time. 2. Federal Student Aid Office Help Line For additional questions or quick assistance, the Federal Student Aid Office help-line  is a valuable resource. Students can use it to get answers during the FAFSA process and receive application assistance  for any difficulties they encounter. For quick assistance, visit the Federal Student Aid Office Help Center or call 1-800-433-3243. Encourage your student to reach out with any questions they encounter along the way. FAFSA application tips  from the experts can make a real difference in maximizing aid eligibility. These experts are committed to helping students maximize their financial aid opportunities. Why Free Resources Are the Best Starting Point While there are paid consultants available to assist with FAFSA applications, ISAC and the Federal Student Aid Office  are dedicated to helping students secure financial aid for college. These services are trusted, accessible, and designed to be family-friendly, making them the best first step for families navigating the financial aid process.  Encourage your student to ask lots of questions and take full advantage of these expert services. The guidance they receive can make a real difference in helping them get the most out of their financial aid package.  FAFSA help for parents and grandparents  is also available through ISAC to ensure the whole family is prepared. By using these free resources, Illinois parents, grandparents, and students can confidently tackle the college financial aid process. With the right support, families can maximize financial aid and focus on preparing for the exciting journey ahead. Final thought. As families prepare for college expenses, setting clear financial goals can make all the difference in achieving both education funding and other financial objectives. Whether you’re focused on saving for a child’s education, building a strong investment strategy, or adapting to life’s financial changes, having a trusted plan is essential. If you have a net worth over $2 million and are ready to take the next step in managing your wealth for future milestones, the Peak Wealth Planning team is here to help you achieve your financial goals with confidence. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA®) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

As an employee owner, you have a handy wild card in your retirement planning portfolio – your ESOP. This nest egg has been your incentive to help the company grow and become the success it is today while promising you a slice of the pie at retirement. Your employee owned stock is concentrated on the success of one company. As you near retirement, it is important to reduce the risk in your accounts. This is where diversification comes into the picture. The Risk of Concentrated Stock As a single concentrated stock, the value of your company stock can fluctuate wildly. And fluctuation is something that can be very good or very bad . These swings in value cannot be timed to align with your retirement. I’ve seen many individuals retire from employee owned companies with great success, but at the same time – before the IRS required ESOP plans to allow employees to diversify a portion of their stock – I think of Kodak. Kodak was a giant, the 5th most valuable brand in the world. And, it was an employee owned company that declared bankruptcy in 2012. Imagine the struggle those employee-owners faced losing their retirement stock and their jobs at the same time. No matter how well your company stock is doing, it should not be your only retirement savings. Be sure to have a comprehensive financial plan that includes multiple sources of retirement income. A little preparation – in the form of an Individual Retirement Account plus regular 401k contributions of at least 10% of your salary each year – now could save a lot of heartache later. Reduce your investing risk by including a portfolio of diversified stock, bonds, and real estate mutual funds in your retirement nest egg. Your Diversification Opportunity If you are close to retirement, you may be wondering what to do with your ESOP. During your tenure, your company has been rewarding you with shares annually. At the beginning, your ESOP balance looked small. But it grew. And now you are on the cusp of your diversification opportunity. ESOP companies offer diversification at age 55 and 60 before your retirement. This means you can sell 25% of your stock back to the company and receive cash. You can spend that cash or roll it over to your retirement account. The retirement account could be a 401k or an Individual Retirement Account (IRA). If you spend the cash, you will owe taxes. To avoid IRS penalties and maximize compounding value to your retirement, diversify ESOP stock with your IRA account at age 55. When you invest the cash from your ESOP stock in your retirement account, consider purchasing a diversified portfolio of stocks, bonds, and real estate funds. <> Grow Your Retirement Nest Egg The graph below illustrates what could happen if you have $1,000,000 in your ESOP when you are 55 years old with at least 10 years of ESOP participation. It demonstrates a participant who sold shares back to the company at every opportunity and moved the cash into a tax deferred IRA between ages 55 and 68. Your company’s schedule may vary from the one shown below. Ask your human resources person or consult your plan document. The ESOP participant was able to grow his ESOP balance from $1,000,000 to nearly $2.5 million. He took diversification at 55 and 60. Then, upon retiring at age 64, he took distributions of the remaining balance across 5 years. At each of these points, the cash was moved into an IRA. During these 14 years, the company share price continued to increase by a few percent each year and the IRA returns increased by 6%. These are assumptions, not guaranteed, and your personal company stock and IRA account will vary. How much income? In our example above, a $2.5 million IRA nest egg could generate an estimated $75,000 to $100,000 in annual income before tax. This will depend on the mutual funds you invest in with your financial advisor and your chosen withdrawal rate . If you purchase an annuity you may be able to enjoy even higher income. Defer paying taxes today. By moving your ESOP cash into an IRA, you will not be taxed on it until you begin to take withdrawals. This means your nest egg will continue to grow tax deferred. So monies that would have been directed to Uncle Sam stay in your investment account for additional years and earn compounding interest. The longer it is there, the more it should grow. Forecast your income. Forecasting how large your investment accounts could be at retirement helps you to understand if you are on track to meeting your income needs at retirement. Your goals may include traveling, spending more time with family, helping your children or grandchildren with an important milestone like college or a wedding, or creating a legacy within your estate plan. Whatever your goals, forecasting today can help you make adjustments to improve your chances of success. Final thought. Are you comfortable with your progress towards retirement? How about helping future generations meet their financial goals? If you have a net worth over $2 million and need help from a wealth manager, the Peak Wealth Planning team can assist you. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

Guest post by Sue Crockett, Executive Director of Minnesota Center for Employee Ownership Studies show that employee ownership is one of the best ways to protect workers and businesses in times of crisis. With 4 million baby boomer owned businesses in the U.S. looking to retire in the next 3-5 years, having a plan in place as to how you want to leave your business is imperative. What will be your legacy? Business owners that spent their life building up their company with the help of the employees and community do not usually want to just walk away OR be faced with the threat that the company will be relocated, merged or closed down. They want to reward their employees and keep the jobs in their community; thus, employee ownership is a great option to consider. Employee ownership models allow owners to: 1) capture market value with tax advantages, 2) enjoy flexibility and craft an exit strategy, and 3) anchor businesses in communities and retain good jobs. What is an ESOP? In general, an ESOP is a retirement plan for employees used to purchase stock from a business owner that creates a real financial future for them. In 1974, Congress passed a law that created ESOPs – Employee Stock Ownership Plans . The law says an owner can sell some or all of their business (10%, 30%, 49%, 100%) to their employees. The employees pay nothing. The business takes on a loan from a bank or other lending source to pay the owner full fair market value for the business. The Federal Government and the State of Minnesota both stipulate that “If your company becomes ESOP owned and meets certain criteria, the business may never have to pay taxes again on the profits for whatever portion of the business is owned by the employees.” Meanwhile, the tax savings pay off the loan. And once the loan is paid, what can your business do with all that extra cash? It can grow – new buildings, more employees, and expansion of the overall business. What can your business do with all that extra cash? It can grow! If you sell 100% of your business to your employees through an ESOP, you may also be eligible to defer paying tax on the sale. You can keep full control of the business, but now your employees have a real stake in the game . So what are the advantages of an ESOP? It is a flexible, tax-advantage tool for business succession It is a way for the owner to take some, or all, the money off the table It provides employees with a real financial future Are there disadvantages of an ESOP? An ESOP may not be for everyone – considerations for implementing an ESOP include the size of the company, value of the company, expense to implement and the repurchase liability it creates. ESOPs are best suited to a company of 20 or more employees that is financially sound. Smaller companies may want to consider the alternative of a Worker-Owned Cooperative. The Good News Studies from Rutgers University show that companies that are employee-owned fare better in down economies and certainly have done better during the Covid pandemic. Why? When employees have a stake in the game, they want the business to succeed as it will not only benefit them in the long run but give them a sense of pride that they helped create that success. ESOPs create wealth equity for all employees no matter their rank in the company. A great legacy! ESOPs create wealth equity for all employees no matter their rank in the company. So you are ready to sell to your employees, now what? You will need well informed advisors and service providers, including specialized legal, valuation, fiduciary, and possibly a lender as well. You will also want to answer some questions like: What are some key goals in selling your company? Have you had your company valued? This is an important step. What is the current culture of your business? Do you want to sell a portion of the business or 100%? Do you want to stay active in the business? Final Thought. If you are interested in having a conversation about the benefits of selling your business to employees, please reach out to Sue Crockett or the Peak Wealth Planning team . - - - - - - - - - - - - - - - About the Author Sue Crockett is the Executive Director of the Minnesota Center for Employee Ownership . In 2019, the Employee Ownership Expansion Network (EOX) began to create a network of State Centers for Employee Ownership across the country. The purpose of this grass roots effort is to provide education and outreach on the benefits of all forms of employee ownership to workers, businesses, and the communities in which they reside as well as being a hub for resources to business owners and their advisors. The MNCEO was the second state center EOX assisted in opening when it was formed in early 2020. The mission of the MNCEO is to be the local unbiased “boots on the ground” hub to help guide MN business owners and their advisors on their options when starting their ownership transition process. You can save the work of researching on your own and turn to the Center for guidance on deciding if an ESOP is right for you. About Peter Newman & Peak Wealth Planning Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

One of the first investments I made after retiring was the purchase of a small motorhome. My wife Jayne and I both wanted to travel but were not sure what the best mode of travel would be for us. While I was working, we went on cruises and several road trips with friends. Now we wanted something more. We thought the RV lifestyle was something to consider as we both enjoyed the freedom of road tripping and knew this would be a good way to see the many nooks and crannies of North America. Since the day I drove the RV off the dealer’s lot, we have traveled on average 10,000 miles annually, spending time in 45 states with plans to tour the remaining continental states in the next two years. The motorhome has been a wonderful way to travel, sharing experiences together and with our children. We have explored national parks, museums, monuments and other wonders of this great nation. Along the way, we have made new friends, renewed acquaintances and have loved every minute of our time together. During this decade, Jayne and I have learned countless things about living the RV life. And while the experiences we have created could fill a book, there are a handful of lessons that stand out. Lesson 1: Know what you want, how you’ll use it and your budget. In the time between dreaming about the RV life and actually purchasing our motorhome I spent time researching available models and manufacturers. I built spreadsheets comparing RV travel expenses with what it cost to travel by auto or air. I lived vicariously through my friends' travel experiences, taking notes of their trials and tribulations. When opportunity presented itself, we toured factories to watch motorhomes get assembled. After years of research, Jayne and I settled tentatively on what we were looking for in a motorhome. Our checklist included: Economical (11-17 mpg) Easy to drive Safe (air bags and 2+ exits) Sleep at least 4 Haul at least 4 people Diesel (for economy and engine life) Self contained for off-grid, dry camping All this pre-planning was used when I walked onto a recreational vehicle dealer’s lot to investigate a slightly used 25 foot Winnebago class C diesel motorhome. Lesson 2: Make financial decisions with your partner. I went to the dealer’s lot solo intending to check out an eight-year-old RV with under 4,000 miles on the odometer. It had been in storage for 5 years before moving to the dealer’s lot where potential buyer after potential buyer passed it up. Everyone that looked at it assumed it was a lemon but I recognized it as a unicorn. This RV met the checklist we had assembled and appeared to need only a good detailing. So I went ahead and negotiated, had it inspected, financed and purchased the RV all without my wife’s knowledge. I then drove it directly to an auto detailer who made the vehicle look brand new inside and out. Afterwards, I drove it home, parked it in our driveway, and asked Jayne to look out the window overlooking the driveway. As I pulled open the curtain, I excitedly announced, “surprise!” I do not recommend anyone do this, but, knowing my wife, it was the only way for us to get into the world of RV travel. The entire time we were looking for motorhomes, Jayne would always find something wrong with them. There was always the showstopper. It could have been a simple thing like the color of the furniture or something more serious like blood stains on the carpet. However, there was always an obstacle that prevented us from making the plunge. Having been married to this woman for more than forty years, I understood she was afraid of committing a large part of our retirement finances to something she (or we) might not like. I took the attitude of ‘what could possibly go wrong’, and trusted that the big reveal in the driveway was going to tell me everything. I watched Jayne’s face as she looked out the window at the shiny, freshly detailed motorhome. I could read every emotion on her face – surprise, anger, confusion, anger, resolve, and (finally) realization I had purchased the RV. Our first outing sealed the deal. We took a little shakedown day outing through one of the local state parks. Jayne was stoic. She sat in the passenger seat, eyes straight ahead, not saying anything. We cruised past corn fields getting put to sleep for the winter and down shady back roads full of fall color. We arrived home at dusk and were rewarded with a magnificent sunset, one only seen in the Midwest countryside. Jayne turned to me and revealed her white flag, a pad of paper with a honey do list scribbled on it. “Ok, Ron, this is our camper. I want you to change this, this and this.” My next mission was to listen to my wife. Lesson 3: Customize your space to suit your needs. An RV is the ultimate tiny home on wheels. Storage is scarce and oddly shaped. And when there isn’t much space, every space matters. Jayne and I scrutinized the RV, identifying areas that needed to be tweaked or personalized. This wasn’t something we solved right away, but something that required multiple trips for us to truly understand what was needed to optimize the space efficiency. “If the women don't find you handsome, they should at least find you handy.” ― Red Green Show Every RV is different as are their owners. Keep an open mind, learn to compromise, identify pain points and work towards solutions that will help make your trips as safe and comfortable as possible. Lesson 4: Make the RV your home on wheels. Years ago, a friend and his wife visited our home for a weekend with their RV. We invited them in to stay in one of our guest rooms but they politely declined, saying they would rather stay in their RV. They were home there and by staying in their camper, they didn’t need to drag any of their clothing and toiletries in. We were a little insulted, but now that we have lived the RV lifestyle our perspective has shifted and we totally get it. Now we politely decline guest room offers and stay comfortably in our little home parked in their driveway. Lesson 5: Things will break. Expect it, plan for it. Our first RV adventure was a two week round trip between Central Illinois and Southern Arizona. Our goal was to escape the Illinois winter while seeing what RV life would be like. In retrospect, this was a crazy decision. Our second day out, the engine lost power and went into something called limp home mode . Fortunately, we were close to a major Freightliner repair center and the Sprinter (our chassis) technician had time for us. He found a hose on the turbocharger that had deteriorated while the RV sat in storage all those years. After a parts run and a quick hose change, the repair center had us back on the road by the end of the day. On the way home, we had a more serious issue. We were two hundred miles from home with dire warnings of freezing rain and snow in the forecast. We pulled into a Walmart parking lot and performed a fast winterization of the RV, draining the water in our pipes and adding antifreeze solution. We were two hours from home when the ice and snow hit. Within twenty minutes the roads were covered with an icy slush and the RV handled with increasing difficulty. I attributed its ‘squirliness’ to the icy roads. It was the next morning when we unloaded the RV and moved it into storage that we discovered the rear inside dual tire flat and shredded. The sidewalls were completely gone and the tread was hanging on by threads. The 6 year old tires, which had only 6,000 miles on them, were replaced immediately. This trip taught us so much about ourselves, our RV and the need for advance planning. Concurrent trips have been much less eventful. My engineering aptitude makes me mechanically obsessive. I do my best to keep the RV maintained and always ready for the next trip. After all, you never know when an opportunity for an adventure will arise or when you’ll need to travel on short notice. Plus, my RV insurance offers road assistance which brings peace of mind. Lesson 6: Plan your adventures When we start planning for our next trip, we page through travel books, websites and our previous trip logs to find places to go and the best way to get there. We try to avoid interstate highways, opting for a more casual, scenic travel plan. There are several resources highlighting America’s scenic drives that I highly recommend researching. United States Traveling Books Reader's Digest “Off the Beaten Path” Reader's Digest “The Most Scenic Drives in America” Campground Location Resources Kampgrounds of America (KOA) : A nationwide chain of independently owned campgrounds. All the KOA campgrounds are clean, close to major highways and relatively safe. Harvest Hosts : RV membership program that allows self-contained travelers to overnight at unique locations around the country including farms, wineries, museums, breweries, and more. National and State Park Resources Recreation.Gov : Find roughly 4,200 facilities and activities and over 113,000 individual reservable sites across the country. America’s State Parks : Each state has their own web site. This site helps you find them faster than Google. Seasoned RVers use the 2/2/2 rule for traveling. It means drive no more than 200 miles a day, stop every 2 hours, and stay 2 nights in each place. Some RVers also put an appendix on the rule encouraging drivers to arrive at an overnight destination by 2:00. During the planning stage of our road trip, we only make reservations for our primary destination. Once reservations are made, we try to leave at least a week early to give us ample time to take back roads and enjoy the drive, stopping often when we find unique or unusual treasures. The “Exit Interview” Reflecting on our trip after the RV is unloaded and parked is something we do religiously. One of my boys uses the ‘pits and peaks’ question. The pit is the most challenging part of your trip, while the peak is the opposite, the highlight of your trip. Mostly, I thank God for getting us all home safely and reflect on how to improve the next trip. “Twenty years from now you will be more disappointed by the things you didn't do then by the things you did….So what are you waiting for?” - Colin MacRae Final thought. Guest author Ron Egolf is reaching for his retirement dream of touring all continental states with his recreational vehicle. Are you planning to RV during the go-go years of your retirement? Are you looking to see what it will take to budget for this lifestyle? If you have more than $2 million saved and need help from a wealth manager, the Peak Wealth Planning team can assist. Peak Wealth Planning specializes in helping high-net worth individuals and families plan for the future. - - - - - - - - - - - - - - - About the Author Ron Egolf is a graduate of Southern Illinois University, retired aircraft pilot, certified A&P mechanic, family farmer, and IT Network Analyst. He has used his retirement time to enjoy his favorite lifetime learning interests – furniture making, antique car restoration, boating, firearms instruction and certification, traveling by RV, and making memories with his children and grandchildren. - - - - - - - - - - - - - - - About Peak Wealth Planning Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

Article by Karen Blatzer, Director of Marketing at Clark-Lindsey Village As part of Mental Health Awareness month, I’ve asked an expert to share her insights into aging with lifelong happiness. For nearly a decade, Karen Blatzer has helped older adults thrive within Clark-Lindsey Village by supporting opportunities for purpose, autonomy, continued growth, and developing meaningful relationships. -- Peter Our happiness is just as important as we age, as it was in our younger years. In fact, happiness is a key component to how long we may live. In his book, Live Long, Die Short , Roger Landry, MD, MPH, explains years of research led to discovering only 30% of how we age is based on our genetics. The other 70% is determined by the daily lifestyle choices we make regarding our wellbeing. As humans, we need four components of wellbeing: social, intellectual, physical and spiritual. When we incorporate all four components into our lives on a daily basis we tend to be happier and live longer. Who doesn’t want a long, happy, meaningful life with purpose? While meaningful life is different for every individual, it is fostered by close relationships, a philosophy of continued growth, and the opportunity to give back. As we plan our futures, and/or help plan the futures of our loved ones, we may explore living in a retirement community. Make sure at least four components of wellbeing are incorporated into all programming and life enrichment activities. Social Connectedness Social Connectedness means feeling involved and having a sense of belonging somewhere. A connection to the past, present, and future. Connecting with others significantly affects how successfully we age. People who have healthy relationships and a strong social network respond better to stress. This reduction in stress and anxiety results in a healthier endocrine system, cardiovascular functioning and an enhanced immune system, decreasing our chances for diseases including: heart disease, cancer, dementia, and depression. The odds are greater of dying earlier of loneliness than excessive drinking, obesity or air pollution. In addition to connecting with peers, there is also great value in intergenerational relationships and having pets. Intellectual Wellness Intellectual Wellness encourages learning and includes cognitive activities that simulate, promote, and maintain mental growth. Reading, crossword puzzles, sudoku, playing a game, learning a foreign language or a new instrument are steps to take to increase intellectual wellness. Involvement in such activities help inspire exploration and stimulate curiosity. Curiosity is important because it motivates us to try new things and develop an understanding of how we see the relationship between ourselves, others, and the world around us. Physical Wellness Physical Wellness is a balance of exercise, proper nutrition, hygiene, medical care, rest, relaxation and abstaining from harmful behaviors. Positive physical health habits can help decrease stress, lower the risk of chronic diseases, and increase energy, confidence & self-esteem. Steps to take to help improve physical wellness include: maintaining a healthy weight, engaging in muscle strengthening involving major muscles at least twice a week, eating nutrient-rich foods such as fruits, vegetables, lean meats, and whole grains, and getting 7-9 hours of sleep a night. Spiritual Fulfillment Spiritual Fulfillment is the human quest for personal meaning and mutually fulfilling relationships among people, nature, and for some, God. Generally, when we fill our lives with meaning and purpose, there is harmony for ourselves and those around us. Ways to improve your spiritual wellness can include: yoga, travel, meditation, positive thinking, prayer, journaling, volunteering, gardening and connecting to the outdoors. Keep these four components of wellbeing in mind as you research retirement communities. What you want now may not be what you need in 5-10 years. A community that offers different levels of care and support may be the best match for your future needs. Once you make the move and invest your time and energy into building relationships, you may not want to move again later to another community that offers more care. You’re looking for more than your next home. You need a home with a built-in support system, socialization, programming, fitness center with pool and other amenities that fit within your lifestyle and budget. Make sure you know the lingo. Understand the different types of communities and levels of care available or if they are a continuing care or life plan community. To learn more about the different levels of care, click here. - - - - - - - - - - - - - - - About the Author Karen Blatzer joined Clark-Lindsey in 2014 to ensure current and prospective clients are aware of the comprehensive services available to individuals who have reached retirement age and/or are in need of long-term health care. She is committed to helping older adults thrive by supporting opportunities for purpose, autonomy, continued growth and close, meaningful relationships. Karen promotes opportunities for older adults and staff to have meaningful engagement and relationships with others inside and outside the Clark-Lindsey community. About Clark-Lindsey Village, Inc. Established in 1978, Clark-Lindsey Village is the area’s only nonprofit life plan community. It is located on 27 acres in southeast Urbana, and is connected to Meadowbrook Park. It offers independent living in The Village, with 131 apartments and 16 villas. The campus has a state-of-the-art Wellness Center, complete with an indoor pool for fitness and recreation. Meadowbrook Health Center at Clark-Lindsey provides long-term skilled nursing care. Renewal Therapy Center, within Meadowbrook Health Center, provides short-term skilled nursing care, inpatient and outpatient physical, occupational and speech therapies. Additionally, two Green House Homes offering care in a small home model. One is assisted living specializing in memory care and the other is licensed skilled care. For more information, call Clark-Lindsey at 217-344-2144. About Peter Newman & Peak Wealth Planning Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

The holidays are quickly approaching and while they are one of the most joyful times of the year, they can also be a bit stressful. As a Certified Sommelier and someone who has years of experience being the person responsible for selecting the wine for my family's holidays, I have put together a list of 12 wines that will cover all of your needs for any upcoming festivities and meals. 1. Luc Belaire Gold Brut There is no better way to start off a festive night than with Champagne. While it is fun to pop bottles, the brilliant acidity and bubbles make this wine a great pairing for almost everything. This Champagne goes with appetizers, seafood, desserts, and will lighten heavier dishes. You can also use Luc Belaire Gold to make holiday cocktails like a Cranberry-Pomegranate spritzer or a mimosa. This is truly a must have item due to its adaptability! 2. Kuent-Bas Riesling This dry Riesling is from the Alsace region of France and is bright and fruity. Due to its high acidity, similar to sparkling wines, it pairs well with a lot of different dishes. In particular, it is a great pairing with ham (whether it is baked, smoked, or honeyed), turkey, and seafood. The Kuent-Bas Riesling is also an excellent pairing for gingerbread cookies/houses. 3. E. Guigal Côtes du Rhône Guigal is one of the best known producers in the Rhône Valley and this style of wine is almost always found on my holiday wine shopping list. A blend of Grenache, Syrah, and Mourvedré, this is a great versatile red wine to pair with ham, turkey, roasted vegetables (I recommend trying roasted brussel sprouts with crispy pancetta), and a variety of cheeses. Guigal Cotes du Rhone Rouge is fruity, full bodied, elegant, and well balanced. It is sure to be a favorite for your holiday. 4. Louis Jadot Pouilly-Fuissé The Louis Jadot Pouilly-Fuisse Chardonnay from the Burgundy region of France has notes of red apple, hazelnut, and citrus and is a great value purchase. It pairs well with smoked salmon, oysters, appetizers, creamy dishes like mashed potatoes and mac-n-cheese, and most importantly sugar cookies! 5. Marqués de Cáceres Crianza An easy-drinking, medium bodied Tempranillo from the Rioja region of Spain with notes of berries and cigar box. Marques de Caceres Rioja Crianza pairs well with prime rib, mushrooms, vegetable casseroles, roasted turkey, and cheeses. It also makes for a great companion while wrapping presents or watching your favorite holiday movie. 6. Banfi Chianti Classico Sangiovese, the red grape of Italy, is presented in one of its best examples from the Classico sub region. This is the historical growing area and can be found between the cities of Florence and Siena. The Banfi Chianti Classico Riserva has notes of sour cherry, herbs, and tobacco, making it a great versatile red wine. It is an excellent choice for pairing with Prime Rib, beef tenderloin, roasted vegetables, appetizers, and pastas. For those who enjoy a holiday cigar, you might have to enjoy a glass of this with it. 7. Kim Crawford Sauvignon Blanc Kim Crawford Sauvignon Blanc is one of the most iconic wines and for good reason. It has notes of citrus, tropical fruit, and herbs with racy acidity. Another food friendly wine due to its high acidity, you can pair this wine with roasted turkey, oysters, lobster, goat cheese, and asparagus. 8. Honig Cabernet Sauvignon A classic Napa Valley Cabernet Sauvignon, Honig is a full bodied, age worthy red wine with notes of blackcurrants, plum, baking spices, and chocolate. Think of classic pairings like prime rib and beef tenderloin as well as pairings like aged sharp cheddar, grilled vegetables, and blue cheese. 9. Santa Rita Cabernet Sauvignon The Santa Rita Medalla Real is a Cabernet Sauvignon from Maipo Valley, Chile. For those feeling adventurous wanting to try something new or for those who don’t prefer a Napa Valley style, this wine shows a slightly different side to Cabernet. Full bodied wine with notes of blueberries, blackberries, figs, and soft spices. 10. La Crema Pinot Noir With a profile of cranberry, raspberry, mushrooms, and spice, the La Crema Sonoma Coast Pinot Noir has all the aromas of the holidays. It is versatile, many people love it, and it pairs well with roasted turkey, grilled salmon, and roasted pork. 11. Sonoma-Cutrer Chardonnay Sonoma-Cutrer is a Sonoma Coast Chardonnay with notes of peach, nectarine, vanilla, and hazelnut. Like its Burgundy counterpart this wine pairs well with fish, appetizers, creamy dishes, and sugar cookies. Chardonnay is a grape that adapts to its environment creating a variety of profiles depending on where it is grown and winemaking techniques used like barrel aging. You can expect fresher and more tropical fruit notes and more intense spice notes in this California version. 12. Chandon Brut Chandon Blanc de Pinot Noir is a sparkling wine from California. It is associated with its parent house Moet & Chandon . This wine provides excellent quality without the prices of most Champagne. It is made in the exact same method and uses the same grape varieties. This is a great wine to celebrate the New Year whether with food or a toast! Make the Most of Your Holiday Celebrations A few things to keep in mind to help ensure a great and smooth experience. 1. Variety is key. It is always wise to have a variety of wines so that there is an option for everyone. 2. Chill out and breathe. In the hustle of preparation, opening and chilling your wines may not be your top priority. I recommend placing white and sparkling wines in the fridge before cooking, wrapping, or cleaning. That way you know they are chilled and ready for serving. Same for the reds, open them up first and let them breathe in the bottle until you are ready to serve them. This will help them open up and become more characterful. I hope you enjoy whichever wines you decide as this is the most important part of the pairing and experience. Happy Holidays! Interested in learning more about wine? Verve Imports’ Wine Academy offers online courses to improve your wine knowledge and make wine more approachable. In Wine 101: The Foundations , you will: Gain the confidence to read a wine label and select a wine from a shelf or wine list, Learn how each grape is different, and How to write your own tasting notes. During this course you will be able to work at your own pace while also having the option to attend live webinars and purchase a wine tasting kit that will be delivered to your home. Final thought. Are you comfortable with your progress towards retirement? If you have a net worth over $2 million and need help from a wealth manager, the Peak Wealth Planning team can assist you. Peak Wealth Planning specializes in helping high-net worth individuals and families plan for the future. - - - - - - - - - - - - - - - About the Author Layne Shottenkirk cultivated her love of wine into a thirst for knowledge while living in Florence, Italy. That passion led her to pursuing a career in the wine industry and advancing her wine education. In 2018, Layne founded Verve Imports , a wine import company focusing on introducing the Midwest to sustainably produced boutique wines from Italy and Spain. - - - - - - - - - - - - - - - About Peak Wealth Planning Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

Congratulations, you have been hired to work at one of the prestigious state of Illinois public universities . Among the many wonderful benefits of your new position, you are now eligible to participate in the State Universities Retirement System, also known as SURS . It is a great benefit where you and the university you work for contribute to your future retirement.  When you begin employment, you must select among three plan offerings: Traditional, Portable, and Retirement Savings Plan. Once you’ve chosen your retirement plan, your selection is irrevocable and cannot be changed so it is very important you weigh the differences between the plans and choose what is most important to you.  You have six months from your initial date of employment to select one of the three plans, and if you do not make a choice within the six month you will automatically be enrolled into the Traditional Pension Plan. Traditional Pension Plan The Traditional Pension Plan is the default plan. It provides you with a lifetime monthly income based on a formula that considers your average earnings and how many years you are employed. You contribute 8% of your gross earnings to this plan, which are deducted automatically from your paycheck. The state contribution does not go directly to your individual retirement account, but rather is paid to the System and kept in a pooled account used to fund retirement benefits. Flexibility After ten years, participants in the Traditional Pension Plan become vested. Participants who opt to leave employment under the SURS umbrella have two options: wait and draw benefits at full retirement age or take a refund of only their contributions (credited a fixed 4.5% interest rate). If you select the latter, your employer matching contributions are forfeited.  If you are unsure you’ll be at the university long enough to be vested, know that only your contributions (not the interest) will be available to you to roll into an IRA. Salary Cap Under the Traditional Plan, salary up to $115,000 is the maximum pensionable earning limit (2020 limit, adjusted annually for inflation). If you select the Traditional Pension Plan, your contributions (8% of salary) will only be based on your wages up to the limit. Survivor Benefits The Traditional Pension Plan offers the most generous survivors benefits. Survivors would receive 66% of your accrued monthly retirement income. Is this plan right for you? This plan is best for employees who: desire a lifetime monthly benefit, plan to work at least 10 years, and have a salary below $115,000.  Portable Pension Plan The Portable Pension Plan is an optional plan. Like the Traditional Pension Plan, the Portable Pension Plan provides you with a lifetime monthly income based on a formula that considers your average earnings and the number of years you are employed. You contribute 8% of your gross earnings to this plan, which are deducted automatically from your paycheck.  Flexibility For employees unsure of how long they will stay at the University, the Portable Plan allows you to take a lump sum of all contributions plus interest if you choose to leave and receive a dollar for dollar employer match when leaving with at least five years of service.  Flexibility with the Portable Pension Plan extends beyond the mobile workforce. At retirement you will have the option to choose a lump sum distribution or a monthly annuity payment.  Salary Cap Under the Portable Pension Plan, salary up to $115,000 is the maximum pensionable earning limit (2020 limit, adjusted annually for inflation). If you select the Portable Pension Plan, your contributions (8% of salary) will only be based on your wages up to the limit. Survivor Benefits The Portable Pension Plan will provide you an opportunity at retirement to select the type of survivor benefits you’d like. Available options include 50%, 75% or 100% of your retirement income. Your selection will change your monthly retirement benefit. Is this plan right for you? This plan is best for employees who: desire a lifetime monthly benefit, plan to work at least 5 years, and have a salary below $115,000 today.  The Portable Plan is particularly attractive for employees who are uncertain about how long they will be employed by their university and desire flexibility. Retirement Savings Plan The Retirement Savings Plan is an optional plan that establishes an investment account in your name into which your contributions and the employer contributions are placed. The plan allows you to contribute 8% of your earnings up to a maximum salary of $280k plus you receive an employer match in the amount of 7.6% of your salary for a total annual contribution of 15.6%.  Flexibility The Retirement Savings Plan allows you to take a lump sum of all contributions plus gains or losses if you choose to leave and receive a dollar for dollar employer match when leaving with at least five years of service. Employees participating in the Retirement Savings Plan have the flexibility to choose to invest their money within the SURS investment options and to make adjustments as their needs evolve. They can also have their funds be professionally managed using a target date fund combined with a secure income portfolio and annuity. Unlike the pension plans outlined above, you do retain the risk for the investment choices you make in the Retirement Savings Plan. Salary Cap Under the Retirement Savings Plan, contributions are based on earnings up to $280,000 (2020 adjusted per IRS rules). If you select this plan, your contributions (8% of salary) will be based on your wages up to the limit. Annuity At retirement you can purchase a monthly benefit (annuity), move funds into the SURS Lifetime Income Strategy to receive guaranteed lifetime income, or choose a lump sum distribution.  You may purchase an annuity with survivor benefits which may reduce your monthly retirement benefit.  Survivor Benefits The Retirement Savings Plan does not provide an automatic lifetime survivor’s payment. You or your survivor are always eligible for a refund of your own contributions and earnings. After 1.5 years of service, employer matching and related earnings are also refundable to survivors.  Your survivor may choose a lifetime payment with this refund or a lump sum. Is this plan right for you? This plan is best for employees who: have a salary higher than $115,000 (today or in the future) or believe they may leave the University after working for a short time.  The Retirement Savings Plan is particularly attractive for high wage earners who are uncertain about how long they will be employed and need flexibility. Final thought. Given that you’ll have only 6 months to decide, it can be challenging to determine the right retirement plan for yourself and your family. The major determining factors are how long you will stay with the university and how much money you think you will make. If you would like a helping hand, the Peak Wealth Planning team is more than happy to assist you in determining the right plan for you. You may also be interested in reading: Big Changes To SURS Self Managed Plan (And What It Means For You) Does Your Retirement Include Guaranteed Income Streams? How Long Will Your Money Last in Retirement? Other Useful Resources: Watch the SURS Plan Choice Video Series Download the Plan Choice Guide - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

February is all about hearts. And while your mind may go directly to Valentine’s Day, the color red, and sweet heart shaped candies, it also is American Heart Month. This is a time we must come together to draw awareness to heart disease, the No. 1 killer nationwide. At Peak Wealth Planning, we care as much for your health as your wealth. What is the point of growing your wealth if you can’t enjoy it? So throughout the month of February Peak Wealth Planning will be dedicating its efforts towards bringing valuable insights into decreasing your risk of heart disease. We’ve selected three experts to share their insights on maintaining health for a longer, happier life. As a Peak Wealth subscriber , you’ll be notified when these articles are available instantly. Strength, fitness, and success is accessible to anyone willing to put forth the effort. Certified personal trainer Danny Iniguez will be sharing what he learned from 25 years in the gym… a journey that began as an obese man. Making progress towards a healthy heart can begin today. Registered dietitian Kristina Adams Smith shares five simple rules for eating a heart healthy diet. Heart disease can impact even those that prioritize a healthy lifestyle. Scott Vincent had been diagnosed with cardiac sarcoidosis in his late 30s, and will be sharing his perspective and advice on living with heart disease. If you’ve an experience as well, be it a life changing moment that influenced your heart health choices to a bonafid expert in the field, please feel free to reach out & share your story with me. We are excited to share with you our guest speakers’ stories for the next few weeks. Until then, here are some helpful pointers that have been mentioned in the field. For those who are already experts in maintaining your health, this can be a great refresher. Five Key Factors That Lower Your Risk of Heart Disease How can you live a longer, healthier life? These five key factors can help you lower your risk of heart attack and they can help you build a powerful prevention plan with your health care team. 1. Know your risk. About 47% of adults have at least 1 of 3 key risk factors for heart disease -- high blood pressure, high cholesterol, and current smoker. While your family history of known conditions cannot be controlled, you can take steps towards lowering the factors in your control and work with your health provider to manage the conditions you do have. 2. Eat a healthy diet. Certain foods can influence blood pressure, cholesterol levels, and inflammation… factors that influence your likelihood of heart disease. Try adding these 15 incredibly heart-healthy foods to your diet and read more about the why and how to eat healthy from dietitian Kristina Smith (link to come). 3. Be physically active. One of the best ways to stay healthy, prevent disease, and age well is to move more. American Heart Association recommends adults get a minimum of 150 minutes of moderate-intensity aerobic activity or 75 minutes of vigorous activity each week . Read more from personal trainer Danny Iniguez as he shows you how to improve your fitness and quality of life (link to come). 4. Watch your weight. Having excess weight contributes to your chances of diabetes, high blood pressure, and heart disease. Dr. George Blackburn, associate director at Harvard Medical School shares, "Your weight matters at any age. Thinking it doesn't may be a fatal error, because obesity kills." Learn his recommendations for individuals over 70 carrying extra pounds . 5. Live tobacco-free. If you don’t smoke, vape or use tobacco products, don’t ever start. There’s no such thing as a safe tobacco product. Smoking makes the walls of your arteries sticky from the chemicals, which makes it easier for fatty material to stick to your arteries. Smoking with a diet high in cholesterol will lead to heart disease faster. Live well today for a healthier tomorrow. The bottom line? Healthy living is the best way to delay or avoid heart diseases. This means being active and fit, eating healthy, avoiding tobacco and managing conditions that can put you at greater risk. Make it a goal this month to make progress towards improving your heart health. Continue Learning About Heart Health: Preventing Heart Disease 4 Keys to Prevent Cardiovascular Disease How to Prevent Heart Disease ‘Fat but Fit’ is a myth when it comes to heart health CDC’s Heart Disease Facts AHA’s Heart Disease and Strokes Statistics At-A-Glance Living your Best Life with Heart Disease About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

Ah, the New Year is upon us. We are all ready to begin anew and make some changes, big and small. We’ve all heard about New Year's Resolutions, but what you may not know is there is actually a day dedicated to making a decision and sticking with it. In fact, that day is today. It is called Make Up Your Mind Day . December 31: Make Up Your Mind Day Make a decision and stick with it. The point behind Make Up Your Mind Day is to resolve issues and decisions that have been on hold since January 1st. With the New Year clock counting down, there is no more time to procrastinate. Those minute and second hands on the clock are pointing to you, as if to say “it is time to decide!” I’ve written a list of the top 5 financial decisions you may have been delaying and suggest you commit TODAY to move one forward. 1. Get a handle on your budget. How much are you spending today? Is this too much or too little relative to your saving for the future? If you ignore this question, your retirement lifestyle may be a far cry from your current one. During the month of January, I will be providing valuable information on how to categorize your spending to feel more in control of your money. There will also be tips on how to track your spending and what to do if your income is variable due to entrepreneurship or bonuses . 2. Take control of your retirement planning. Are you confident you will have enough saved for a comfortable retirement? Are you on pace to replace your income during your golden years? Many folks contribute to their 401k but they don’t know if that is enough to retire. They haven’t done the calculations. Or just trade away their money on bitcoin and the occasional stock tip. But not knowing is the equivalent of insecurity. Are your investments growing as they should? Do you know if your investments are keeping pace with your goals? How do you find out? Have a financial plan in place to meet your goals (college for kids, dream car, or vacation home while balancing saving for retirement). Guarantee your success by hiring a financial planner to do this for you. 3. Get more healthy. Did this past year zap your energy level? Between working from home and exercise facilities having limited capacity, you may be one among many that found themselves in a rut. Join the most popular New Year’s Resolution and commit to the decision to become healthier. Begin this resolution with the right foot forward to guarantee success. Hire a personal trainer or nutrition consultant by zoom so you can look and feel great when everything reopens in person. 4. Further your education. Are you dissatisfied with your current job? Are you looking to make a career change but keep putting it off? Have you hit the metaphoric glass ceiling? Invest in yourself by furthering your education. Consider how much it will cost and how you will feel once you’ve achieved this goal. Also, consider what your earning potential may be by meeting this goal. Is the money and time invested going to pay off? 5. Financial security for your loved ones. Are you comfortable with the idea of your death? Likely, the answer to that is no, but knowing your family will be okay financially with the loss of your income may make you feel a little bit better. Guarantee peace of mind for yourself by taking steps forward in securing life insurance. Begin by getting a life insurance evaluation to truly replace your income. Tomorrow is never guaranteed. If you’ve older relatives in your care, you may wish to secure long-term care as well. Final thought. Make your decision and stick to it. Find success by reaching out to experts or really commit to doing your research. If you require financial planning, financial investment advice, or help navigating insurances to protect what you’ve built, the Peak Wealth Planning team can assist. However you ring in the new year, stay safe. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

With the year’s end approaching, I like to look back and be grateful for the many people I encountered in my life. I thank the many mentors/teachers who advised me on topics that I am not familiar with. I thank the nurses and doctors who take care of the sick while risking their own lives. And I especially thank those who sacrifice their time/money to further the advance of our society. But what if my circumstances are not as heroic as the doctor, nurses, or teachers? What can I do? Harvard professor, Michael Norton, suggested that “ Money spent on others can buy happiness ”. And giving does not have to be big. Our government encourages it through multiple ways. Let’s explore the topic with a little more detail. Make Small Contributions To Charity And Keep Your Taxes Simple. If you don’t itemize deductions on your 1040 tax return, individuals can claim a $300 “above-the-line” deduction for cash contributions made, generally, to public charities in 2020. This rule means that taxpayers claiming the standard deduction ($12,400 for single and $24,800 for married filed jointly) and not itemizing deductions can claim a limited charitable deduction. Maximize Tax Deduction For Your Cash Donations. For individuals that itemize, during 2020 as a result of the CARES act, cash contribution deductions can be up to 100% of your adjusted gross income (AGI). Normally this is limited to 60% of adjusted gross income except for donations to churches, fraternal societies, and volunteer fire departments. Maximize Your Donations Through Giving Directly From Your IRA. If you are over age 70 ½ and have an individual retirement account (IRA), you can make a qualified charitable distribution (QCD) from your IRA directly to a charity, or charities, of up to $100,000 during 2020. This must be a direct transfer of funds from your IRA custodian, payable to a qualified charity (501(c)3). QCDs can be counted toward satisfying your required minimum distributions (RMDs) for the year and the distributions directly to a charity are excluded from your taxable income. Further, QCDs don't require that you itemize, which due to the recent tax law changes, means you may decide to take advantage of the higher standard deduction, but still use a QCD for charitable giving. Setup Donor Advised Fund For Giving Across Time. A donor-advised fund (DAF ) is a charitable investment account, with the sole purpose of supporting charitable organizations you care about. When you contribute cash, securities or other assets to a donor-advised fund at a public charity, like Schwab Charitable , you are generally eligible to take an immediate tax deduction. The funds can be invested for tax-free growth and you can recommend grants to virtually any IRS-qualified public charity. Your family can reflect each year on those most in need and make grant recommendations —from your local homeless shelter to your alma mater or religious institution. The public charity sponsoring your account will conduct due diligence to ensure the funds granted go to an IRS-qualified public charity and will be used for charitable purposes. Donating long-term appreciated securities directly to charity—instead of liquidating the asset and donating the proceeds—can help maximize both your tax benefit and the overall amount you have to grant to charity. Plus a donor advised fund allows you to give over many years and to multiple organizations. Set in your budget? Volunteer your time. While cash donations, particularly ones that are annual, are of extreme value to charitable organizations throughout your community, what’s even more valuable is your time. By donating your time, the organization benefits substantially by having your skills as a resource. Here are a couple of places I volunteer my time. As a regular volunteer at the Stone Creek Food Pantry , I meet people and gain a better sense of appreciation for the efforts of an organization I give to. They need a lot of hands to handle donations and distribution. Some volunteer work doesn’t need to be regular. Many organizations, such as our local organization Feeding Our Kids , requires assistance making their annual fundraiser a success. If you’ve a specialty, you can volunteer your time by being involved in non-profit organizations as a board member. I served on the Champaign Public Library board several years. It was a time commitment, but very rewarding and informative. I find that in addition to making financial donations, being out in the community is personally rewarding and quite humbling. “Money spent on others can buy happiness.” Final thought. Francis of Assisi said, “For it is in giving that we receive.” If your life circumstances permit, I strongly encourage you to volunteer your time and/or your money to the cause you believe in. And our government may reward you through various means. If you would like to explore additional ways you can give and the impact it may have on your financial situations, the Peak Wealth Planning team can assist. You may also be interested in reading: 'Tis the Season to Reduce Tax Burden (part 1) 'Tis the Season to Reduce Tax Burden (part 2) 2020 Silver Lining for your IRA - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

2022 was a tough year for investors. Your retirement savings may have taken a huge hit. However, there can be a silver lining if you are planning to convert your traditional IRA to Roth IRA. IRA stands for Individual Retirement Account. Given our government would like to encourage individuals to use IRA accounts for their retirement savings, IRAs receive tax-advantages over putting your savings in your taxable brokerage account. The government does impose an annual limit on how much you can fund your IRAs. It also imposes a penalty when you withdraw before the age of retirement. There are 2 types of IRAs, Traditional IRA and Roth IRA. Traditional IRA Traditional IRA lets you contribute your pre-tax earnings into the retirement account. The account should grow between now till your retirement. The government will then tax you, in general a lower tax rate, when you withdraw your funds at the age of your retirement. Roth IRA Roth IRA lets you contribute your post-tax earnings into the retirement account.The account should similarly grow between now till your retirement. Because you were taxed when you contributed money prior, the government will NOT tax you when you withdraw your funds at the age of your retirement. At first glance, they look like 2 sides of the same coin: pay taxes now vs. in the future. Why would one have preference on one over the other? The preference lies on whether the government would increase the amount they would tax in the future. With our record debts and ever stretching medicare and social security program, many believe the US government will increase taxation in the future. Because of this, many suspect they will have a larger retirement income with Roth IRA. Given the potential advantage of Roth IRA, many would ask whether they can convert their retirement account from Traditional IRA to Roth IRA in order to reap the benefit in the future. The answer is Yes. However, you will have to pay income tax now on the amount you will convert. This is a stumbling block for many and stops them from realizing the potential benefits from Roth IRA. This is where the silver lining of 2022 comes in. If your traditional IRA account has declined, converting the account to a Roth now will minimize your long-term tax bill. And you will not need to pay taxes when you spend the money in retirement. Final thought. If you are interested in talking to a professional about converting your Roth IRA or other financial questions you may have, the Peak Wealth Planning team can assist. You may also be interested in reading: 'Tis the Season to Reduce Tax Burden (part 1) 'Tis the Season to Reduce Tax Burden (part 2) Thinking of withdrawing your 401K? Don’t. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

We are coming up on the end of the year. It is important to consider what your tax bill might be for 2020. Before the end of the calendar year, have a conversation with your CPA and financial planner to evaluate the opportunities detailed in this 2-part tax reduction series. Previously, I shared strategies to reduce your tax burden by itemizing deductions, deducting mortgage interest, charitable giving, and deducting SALT in ‘Tis the Season for Reducing Your Tax Burden (part 1) . This article will cover reducing your tax burden through 401k contributions, individual retirement account contributions, tax-loss harvesting, and real estate investments. These strategies together can reduce your tax burden and improve your financial well being. 401k Contributions Employees may contribute up to $19,500 to their 401(k) plan for 2020 and 2021. Anyone age 50 or over is eligible for an additional catch-up contribution of $6,500 in 2020 and 2021. If you haven’t contributed the maximum amount to your 401k for 2020, speak with your company’s HR person and make a large one-time contribution before year end to get to the maximum invested. Investing more in your 401k today allows your investments to grow in a tax deferred account until you need those funds at retirement. This increases your nest egg and reduces the income tax you pay. Plus, your employer may match your contributions, further increasing your wealth. If you are an entrepreneur ask your financial advisor whether a 401k is the best option for you to reduce your tax burden. Individual Retirement Account Contributions If you maxed out your workplace 401(k) to save on taxable income during 2020, you can still contribute $6,000 ($7,000 if over 50) to an individual retirement account (IRA) . This will provide an additional tax deduction if your income isn’t too high. If your income exceeds the threshold , you can work with your financial advisor on a more advanced strategy to make traditional IRA contributions without a tax deduction. Even here you will benefit from tax deferred growth on your money. Further, you may be a candidate for a Roth conversion. A Roth conversion won’t reduce your tax bill today, but it can save you plenty during retirement years. I will discuss Roth conversions later this month. Capital Gains Tax Loss Harvesting Many people invest for the long term in a brokerage account with the help of a financial advisor. Sometimes securities in your account may be down in value, but you plan to hold them for the long haul. This may provide an opportunity to reduce your tax liability. Tax-loss harvesting is when you sell investments at a loss in order to reduce your tax liability. You can harvest losses to offset gains. If you have a stock that went down significantly in value – for example you are down $20,000 – then you might offset that loss by selling stock with a $20,000 gain. The loss and the gain cancel each other out resulting in no taxes on the gain. You could even re-invest in the stock that you sold to generate the loss after 30 days to continue holding the company you feel will do well in the long term but had a temporary hiccup. Furthermore, you can offset a small portion of W-2 salary income with up to $3,000 in capital losses each year. Real Estate Investing -- Direct Ownership Real estate investors make money through rental income, appreciation, and profits generated by business activities that depend on the property. The benefits of investing in real estate include passive income, stable cash flow, tax advantages, diversification, and leverage. A key benefit of real estate investing is its ability to generate cash flow. In many cases, cash flow only strengthens over time as you pay down your mortgage—and build up your equity. Building up equity increases your wealth. Real estate investors can take advantage of numerous tax breaks and deductions that can save money at tax time. In general, you can deduct the reasonable costs of owning, operating, and managing a property. Make no mistake, though, investing in real estate directly is a business endeavor. Many people enjoy searching around for a good deal on a property and running their own business as an owner and property manager. Other real estate investors will outsource their property management, at a cost, to a professional. Real estate can be an attractive investment and increase your wealth. I spent more than 20 years as a real estate investor. I would be pleased to share the pros and cons of property ownership with you. If you would like to discuss real estate investing, please schedule a call today . Final Thought. Don’t allow the opportunity to optimize your tax deductions to slip by. Before the end of the calendar year, have a conversation with your CPA and financial planner to evaluate the opportunities detailed in this 2-part tax reduction series. This is time sensitive, so take action today! If you have more than $2 million saved and would like assistance with your strategy, the Peak Wealth Planning team can assist. You may also be interested in reading: 'Tis the Season to Reduce Tax Burden (part 1) - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

We are coming up on the end of the year. It is important to consider what your tax bill might be for 2020. Before the end of the calendar year, have a conversation with your CPA and financial planner to evaluate the opportunities detailed in this 2-part tax reduction series. The first part of this series will discuss itemization to increase tax savings, deducting mortgage interest, charitable giving, and deducting SALT. The second part of this series will discuss reducing your tax burden through retirement account contributions, tax-loss harvesting, and real estate investments. Be sure to subscribe so you receive notification of this article’s release. These strategies together can reduce your tax burden and improve your financial well being. Itemize To Increase Tax Savings Compared with taking the standard Federal deduction, many of my clients save thousands of dollars by itemizing deductions on their tax return. Here is how it works. During 2020, the standard deduction is $12,400 for singles filing and $24,800 for married couples. Your CPA or financial planner will then calculate the value of the itemized deductions we mention below. When your itemized deductions exceed the standard deduction, you pay less in taxes and keep more in your pocket. Common itemized deductions are mortgage interest , charitable gifts, unreimbursed medical expenses, and state and local taxes. We will explain these topics in detail below. Mortgage Interest On Your Primary And Second Home Mortgage interest write offs are one of the most popular deductions on tax returns. In today’s low interest rate environment, some individuals are comfortable having a mortgage, paying the bank a paltry 2.5% interest and investing loan proceeds in the stock market. You can deduct the mortgage interest you paid during the tax year on the first $1 million of mortgage debt for your primary home or a second home. If you bought the house after December 15, 2017, you can deduct the interest paid during 2020 on the first $750,000 of the mortgage. As long as you have sufficient income to service your mortgage debt, you may be able to earn more in the stock market than you pay in interest and increase your overall wealth. Bunch Charitable Contributions Donations to charity are tax deductible if you itemize on your return. If you are interested in giving to a charity and usually take the standard deduction on your taxes, you may want to consider bunching your contributions during a single calendar year so your deductions exceed the standard deduction. By bunching donations, you combine multiple years of "normal" annual charitable contributions into a single year. In the bunch years, the relatively large charitable contributions, in combination with other itemized deductions that cannot be timed this way — i.e. mortgage interest, state taxes, and property taxes — will increase the likelihood of exceeding the standard deduction and thus provide you with additional tax savings. You can bunch your donations to support multiple charitable organizations in one year. Or, you can make a large contribution to a Donor Advised Fund and make grants to multiple charitable organizations across many years. Hot tip: Because of the coronavirus, you can take a $300 charitable deduction even if you do not itemize your deductions. Donate Your Stock If you have highly appreciated stock, consider whether to donate stock before the end of the year instead of donating cash. If you sell the stock outright you will have a capital gain with a tax bill. The tax will reduce the value of your donation. If you donate stock , most charities can sell the stock without paying taxes. This strategy will warm your heart, benefit the charity more, and lower your tax burden. State and Local Taxes (SALT) The deduction for state and local taxes, also known as the SALT deduction, is one of the most popular itemizable deductions on U.S. tax returns. Before the passage of the 2017 Tax Cuts and Jobs Act, it was the most widely-used deduction by Americans in terms of dollar value. The SALT deduction includes the following: State and local property taxes, including real estate taxes and taxes assessed on other personal property, such as automobiles. State and local income taxes or state and local sales taxes. The major change made by the 2017 tax law is that the entire deduction is capped at $10,000 per return. In other words, if you paid $12,000 in property taxes and $7,000 in state income taxes for 2019, your SALT deduction is $10,000, not the $19,000 you actually paid for those expenses. Example of these Itemized Deduction Strategies Working Together Let’s say you’re married with $400,000 of taxable income. For this example, you: paid $18,000 in mortgage interest, gave $6,000 to charity, paid $5,000 in deductible medical expenses, paid $7,000 in state income taxes, and paid $12,000 in real estate taxes. In this example if you take the standard deduction in 2020 you would reduce your $400,000 income by $24,800. But, by itemizing you can reduce your income by $39,000. This should allow you to keep $5,700 of additional cash in your pocket on your federal and state tax returns. Final thought. Itemizing deductions takes time and planning. Many individuals skip this valuable opportunity because they just don’t realize what it is they are missing. Schedule an appointment with your CPA and financial planner to make sure you have optimized your tax savings. This is time sensitive, so take action today! If you’d like assistance with your strategy, the Peak Wealth Planning team can assist. Next week, the second part of this series will be released. It will discuss reducing your tax burden through retirement account contributions, tax-loss harvesting, and real estate investments. Be sure to subscribe so you receive notification of this article’s release. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .