Health care expenses are a major concern for today’s retirees, and those who aren’t planning ahead may find themselves in trouble down the road. With life expectancies rising, today’s retirees can expect to live well into their 80s. Combine longer life spans with rising medical costs — and the fact that health care expense s can skyrocket during a serious illness — and retirees have pressing needs to prepare for. These needs may be for healthcare or help around the house with activities of daily living such as getting dressed, showering, and preparing meals. Healthcare According to a recent survey, a couple retiring may need to spend up to 92% of their lifetime Social Security benefits on out-of-pocket health care costs . And for people 65 and older, the average health savings account balance is only $4,911. Not being adequately prepared for health care expenses could greatly jeopardize your ability to retire comfortably. And those who retire earlier may need even more assets to cover their health care costs before they are eligible for Medicare at age 65. Fortunately, with adequate preparation and personalized strategies, you can help tame health care costs in retirement. Everyone’s health care needs are different, which is why it’s important to consider factors like your age, health, and family medical history when estimating your potential expenses. You also should determine whether you are eligible for any employer-sponsored health care once you retire. Any benefits you receive could reduce your out-of-pocket costs and, thus, the amount you need to save for medical expenses. The University of Illinois System, Illinois State University, and other Illinois public universities, offer fully paid health insurance for those who have more than 20 years of service credit and draw a pension or annuitize at least 50% of their retirement saving plan (RSP) account. In addition, retirement health care plan accounts like a Health Savings Account may be available through your employer and can help provide a tax-advantaged way to save for future health care expenses. A financial advisor can help you determine whether this option is available to you and how it may fit your overall retirement objectives. For most retirees, Medicare will form the backbone of their health care plan. Medicare has gone through some significant changes due to the Affordable Care Act (ACA) , and with a new presidential administration, there’s no way to predict how it may change in the future. A financial advisor can help you stay abreast of details like eligibility, coverage, deductibles, and benefits. Long-Term Care I t is also important to think about how you will pay for services to help you remain independent if you need help with daily living. Help can be provided for dressing, bathing, preparing meals, using the bathroom, and moving around your home safely. Help with daily living is called long-term care (LTC) and can be provided in your home or an assisted living facility. According to a 2018 Genworth study, having an in-home health aide for 44 hours each week costs an average of $50,000 per year, and the national average annual cost of a private room in a nursing home topped $100,000. Generally, Medicare and employer-sponsored insurance do not cover long-term care. An investment advisor or insurance broker can help you consider your current health, family medical history , and other factors, and help you evaluate your options for funding your long-term-care (LTC) needs. Having a plan to fund your long-term care needs can reduce the burden placed on your children and relatives as you age. If you are thinking about retirement, make sure that you have a plan to fund your long-term care needs as well as your healthcare expenses. These can add up to more than $300,000 for the average couple. You may need a combination of savings and investments, health insurance, and long-term care (LTC) insurance to cover these costs. In the absence of a plan, you may need to spend down your assets to an almost impoverished level to qualify for state programs such as medicaid to fund these costs. Final thought. Are you comfortable with your progress towards retirement? Do you have a plan to pay for long term care and health care? 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 .

Many different retirement plans exist, providing an array of options for creating retirement income that help you support your desired lifestyle. While the best way for us to answer your specific questions is to meet with you personally, we’ve developed a list of common retirement plan types and some specific concerns you may want to think about. Defined-Benefit (DB) Plans Defined-Benefit (DB) Plans also are known as “pension plans” and guarantee a lifetime retirement benefit to participants based on factors such as age, years of employment, and salary. Though DB plans are disappearing, they are still common among public school systems and universities across the United States. If you are enrolled in a DB plan, your employer takes care of investing all contributions to the pension fund and bears the risk of providing the guaranteed level of retirement benefits. Participants in DB plans have some special financial planning issues. Federal rules like the Windfall Elimination Provision (WEP) mean that your pension income may reduce your Social Security benefits, depending on the rules in your state. DB Plan participants may be able to choose among different retirement income options and schedules. Because of budgetary issues, some employers have sought to reduce or modify their responsibilities to pensioners. If you are concerned about possible reductions in your benefits, consult with your financial advisor or wealth manager about strategies to help mitigate your risk. Defined-Contribution (DC) Plans Defined-Contribution (DC) Plans are the most popular employer-sponsored retirement plans available today. The most common types are 401(k)s, 403(b)s, 457s, and Thrift Savings Plans. As a plan participant, you decide how much to contribute to your plans from each paycheck, allocate your money between the investment choices available to the plan, and assume all investment risk. Often, your employer will match some of your contributions. Your money grows tax deferred because contributions are made with pre-tax income. Once you retire, you retain control over your assets and can choose to roll them over into an Individual Retirement Account (IRA), an annuity or other type of accou nt. If you participate in a DC plan, regular contributions to the plan and selecting the proper investments are the two most important factors to create a sufficient retirement nest egg. Hybrid Retirement Plans Hybrid Retirement Plans combine features of both defined-benefit and defined-contribution plans. For example, your employer may offer a cash-balance plan that they contribute to as though it were a defined benefit plan — but employees have the option of receiving the retirement income either as a stream of payments or a lump-sum distribution. Lump sums are popular, because investors can roll them into an IRA or new retirement plan, allowing retirement savings to potentially continue growing. The new Retirement Savings Plan (RSP) offered by SURS (the IL State Universities Retirement System) is a hybrid plan with a 7.6% match to an employee’s 8% contribution from each paycheck. Once an employee meets eligibility requirements, she has several options to choose from including rolling funds to an IRA or purchasing an annuity with or without survivor benefits. Supplemental Retirement Plans Supplemental Retirement Plans are provided by some employers to allow you to save more for retirement beyond what’s contributed to your primary retirement plan. For example, your employer may offer a defined benefit pension plan as well as an optional 457 or 403b defined contribution plan. If there are gaps in your retirement plan, it is best to spot them early while you can course correct instead of waiting until your retirement is imminent. As you near retirement, you will want to consider questions like these: How much income do you need in retirement? Will my pension or defined contribution plan provide sufficient income? Do you need survivor-benefit options for your spouse? What other sources of income do you have? Do you plan to work after retiring? What is the age difference between you and your spouse? What are your health care insurance options? Do you have long-term care insurance? Contribution limits, early withdrawal penalties, and other details can vary a great deal from one plan to another. It’s a good idea to review your retirement plan benefits with your employer or with a qualified financial representative from SURS if you work for a university in Illinois. No matter what type of retirement plan you have, a financial advisor can help evaluate your options and choose a strategy designed to maximize your retirement income while protecting your wealth. Final Thought. Are you comfortable with your progress towards retirement? Do you need help navigating complex retirement plans? 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 .

Regardless of what your dream retirement looks like, prudent financial preparation and actionable strategies can help you maximize your income and bring your visions to life, while managing your risk. Peak Wealth Planning believes strongly in the value of experienced guidance and objective information when navigating your transition into retirement. Many university employees have complex financial situations, and it’s very common to have questions and concerns about meeting your expenses in retirement. A financial advisor can help you understand your current financial circumstances and develop strategies to move you toward your goals and help you live the life you imagine. A financial advisor can assist you in the following ways. Simplify the complexities of confusing retirement plan options. Ensure you are saving enough to meet your retirement income needs. Advise you on whether to take lump sum or steady payouts when you retire. Provide confidence that you can pay your bills during retirement and enjoy your life. Develop a strategy to cover health insurance costs when you stop working. Help create a plan to cover long-term care costs so you do not burden your children. Next Steps Throughout our retirement guide series for university employees, we investigated four common questions: When can I afford to retire? How will I pay for health care in retirement? What should I know about my retirement plan? How can a financial representative help me? We hope you’ve found this series informative as well as a helpful starting point for details to consider as you approach retirement. If there is a question you’d like addressed in a future series, please submit it here . While retirement planning is complex, you can create a more comfortable retirement tomorrow by taking the steps you need today. Most of all, we want to encourage and support you as you prepare for retirement and for this next stage of your life. Remember, as you navigate your transition from work into retirement, we are here to serve as a resource for you and your family. We are happy to answer questions you may have about your financial situation, SURS, employee benefits, or future goals. We work with several University of Illinois employees on an annual financial planning fee basis . If you have any questions about the information presented in this series, please don’t hesitate to contact us. We enjoy and appreciate the opportunity to help you pursue your retirement goals and live your best life. Final thought. Are you comfortable with your progress towards retirement? How about navigating your retirement benefits? 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 .

September is Emergency Preparedness Month . Part of being prepared is taking care of your family in the event something unexpected happens to you. This includes having an estate plan in place to handle your financial, healthcare, and even your social media-related wishes. These topics as well as an overview of what to do when a spouse or partner passes away will be covered throughout September. Only 45 percent of adults have a will or other estate documents in place, which may not be entirely surprising. No one wants to be reminded of their mortality or spend too much time thinking about what might happen once they’re gone. This article will discuss the 4 key components of a will. Next week we will provide an introduction to other essential estate planning documents related to your financial matters and healthcare. So if you haven't yet, subscribe . You'll become a Peak Wealth Insider and gain valuable financial educational tools. What is a Will? A will is an instrument of power. Creating one gives you control over the distribution of your assets. If you die without one, the state decides what becomes of your property, without regard to your priorities. A will is a legal document by which an individual or a couple (known as “testator”) identifies their wishes regarding the distribution of their assets after death. A will can typically be broken down into four main parts. 1. Executors Most wills begin by naming an executor. Executors are responsible for carrying out the wishes outlined in a will. This involves assessing the value of the estate, gathering the assets, paying inheritance tax and other debts (if necessary), and distributing assets among beneficiaries. It’s recommended that you name at least two executors, in case your first choice is unable to fulfill the obligation. 2. Guardians A will allows you to designate a guardian for your minor children. Whomever you appoint, you will want to make sure beforehand that the individual is able and willing to assume the responsibility. For many people, this is the most important part of a will since, if you die without naming a guardian, the court will decide who takes care of your children. 3. Gifts This section enables you to identify people or organizations to whom you wish to give gifts of money or specific possessions, such as jewelry or a car. You can also specify conditional gifts, such as a sum of money to a young daughter, but only when she reaches a certain age. 4. Estate Your estate encompasses everything you own, including real property, financial investments, cash, and personal possessions. Once you have identified specific gifts you would like to distribute, you can apportion the rest of your estate in equal shares among your heirs, or you can split it into percentages. For example, you may decide to give 45 percent each to two children and the remaining 10 percent to a sibling. The law does not require that a will be drawn up by a professional, and some people choose to create their own wills at home. But where wills are concerned, there is little room for error. You will not be around when the will is read to correct technical errors or clear up confusion. When you draft a will, consider enlisting the help of a legal or financial professional, especially if you have a large estate or complex family situation. Depending on your circumstances, an attorney or financial advisor may also suggest that you have a power of attorney for financial or healthcare matters, a living trust, and a living will. These items will be covered in our next post. Preparing for the eventual distribution of your assets may not sound enticing. But remember, a will puts the power in your hands. You have worked hard to create a legacy for your loved ones. You deserve to decide what becomes of it. 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 .

When you think about your legacy or creating an estate plan, a will likely comes to mind first. Our prior post covered the benefits and key components of a will . However, that isn’t enough. A will specifies your wishes after your death. There are several key documents that can specify your wishes while you are living. In order to allow loved ones to manage your healthcare wishes and financial matters there are several documents you should consider. In the event you become unable to act or communicate for yourself while living – or if you were to pass away unexpectedly – it is important to have powers of attorney for healthcare and finances, a living will, a revocable living trust as well as joint ownership of certain assets. The table below outlines the purpose of each document, the date of effectiveness, and whether a court is required to enact its power. And if you’d like a print friendly version of these tables to talk to your estate planning attorney, click here . Essential Financial Documents Essential Healthcare Documents Final thought. Has it been more than 5 years since you updated your estate plan? Would you like to bulletproof your wealth for the next generation? 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 .

A living trust is a popular consideration in many estate strategy conversations, but its appropriateness will depend upon your individual needs and objectives. What is a Living Trust? A living trust is created while you are alive and funded with the assets you choose to transfer into it. The trustee (typically, you) has full power to manage these assets. But using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional who is familiar with the rules and regulations. A living trust will also designate a beneficiary, or beneficiaries, much like a will, for whom the assets are managed to benefit upon your death. The named trustee administers your assets to support your beneficiaries. If you create a revocable living trust , you may change the terms of the trust, the trustee, and the beneficiaries at any time. You can also terminate the trust altogether. This flexibility, of course, comes with a cost. There is some administrative work involved to re-title your assets into the revocable living trust. Your financial advisor or attorney can help you do this efficiently. What are the Advantages of Creating a Living Trust? The living trust offers a number of potential benefits, including: Avoid Probate - Assets are designed to transfer outside the probate process, providing a seamless, private transfer of assets. Manage Your Affairs - A living trust can be a mechanism for caring for you and your property in the event of your physical or mental disability, provided that you have adequately funded it and named a trustworthy trustee or alternative trustee. Ease and Simplicity - It is a simple matter for a qualified lawyer to create a living trust tailored to your specific objectives. Should circumstances change, it is also a straightforward task to change the trust’s provisions. Avoid Will Contests - Assets passing via a living trust may be less susceptible to the sort of challenge you might see with a will transfer. What are the Disadvantages of a Living Trust? Living trusts are not an estate planning solution in and of itself, and you should not exclusively depend on one. They won’t accomplish some potentially important objectives, including: No Asset Protection - A living trust does not protect assets from creditors while you are alive. However, there may be asset protection for beneficiaries following your death. A living trust is considered a “countable resource” when determining your Medicaid eligibility. Cost - There are costs associated with setting up a revocable living trust. An attorney drafts the document and your assets will need to be re-titled in the name of the trust. Administration - There is some paperwork involved to re-title your assets (bank account, investments, real estate) into the trust. Not all assets are easily transferred to a living trust. For example, if you transfer ownership of a car, you may have difficulty obtaining insurance, since you are no longer the owner. Taxes - A living trust is not a mechanism to save on taxes, now or at your death. Your financial advisor and estate attorney can help you decide whether a living trust makes sense for your unique situation. Final thought. Has it been more than 5 years since you updated your estate plan? Would you like to bulletproof your wealth for the next generation? If you have more than $2 million saved and need help from a wealth manager, the Peak Wealth Planning team can assist. - - - - - - - - - - - - - - - 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 .

Handling a death in the family is never easy. When you lose a spouse, partner, or parent, the grief can be overwhelming. In the midst of that grief, life continues. Arrangements need to be made, things to be taken care of, and you may find yourself suddenly responsible for closing out your loved one’s life. In recognition of this reality, Peak Wealth Planning has assembled a checklist that you may find useful at such a time. Click here to access the PDF Checklist of What to Do When a Loved One Dies . While the checklist is meant to help you identify the many tasks you’ll need to complete in order to close out your loved one’s life, the remainder of this article will expand on the financial transition of the assets they have left behind. On a personal note, I’d like to remind you too that you don’t need to do everything right away and all by yourself. Ask for help from other family members if you need it. Or, call your trusted financial or other advisors. Gather the deceased’s essential documents. If you are fortunate, your loved one had planned for the inevitable, organizing the essential documents and informing an immediate family member where the documents are located. A will, trust, or other estate documents. If none of these exist, you could face a long legal process when settling the person’s estate. Letter of Instructions. This is an estate planning document that addresses informal details that aren’t included in the will. It’s a letter that provides additional and more personal information regarding an estate. It can be addressed to whomever you choose, but typically, letters of instructions are directed to the executor, family members, or beneficiaries. Some things commonly included in a letter of instruction are the deceased’s funeral wishes, financial information, and location of assets. The letter is personal, so it can also convey the deceased’s life lessons and wishes for their future heirs. A Social Security card, statement, or number. Depending on your relationship to the deceased, you or their relatives may be entitled to benefits. Contact the Social Security Administration . Military discharge papers (DD-214). The DD-214 form is an important document for veterans and their families when it comes to leveraging benefits associated with military service, including funeral-related benefits. Deed to burial property and Copy of funeral prearrangements. If your loved one did Pre-Death Planning, then you may find a plan already with a funeral home and cemetery. Identify and collect all assets. Bank account and investment statements Life insurance policies Deeds/titles to real estate Car titles or lease agreements Keys for storage space and safety deposit box Any mortgages, bills due, or records of credit card statements Any social media platform information (if applicable) Last, but not least, look for a computer file or printout with digital account passwords. Prior to their loved one’s passing, some family members may try to centralize all this information or state where it can be found. Take care of some immediate needs. Contact a funeral home to arrange a viewing, cremation, or burial, in accordance with the wishes of the deceased. Using the deceased’s health care directive or letter of instructions, you’ll be able to answer key questions that best align with the deceased’s final wishes. For veterans, inquire about special arrangements with the Veterans Affairs office. Enlist help for the funeral and plan the reception. Relatives and friends may be needed to serve as pallbearers, create the funeral program, cook meals, care for children or pets, or shop for any items needed for the funeral or the deceased’s household. Contact the county clerk or recorder to request death certificates. Counties usually charge a small fee for each copy issued. Ten to 12 copies may seem excessive, but you may need that many while working with insurance companies and various financial institutions. The attorney, funeral home director, or your financial advisor can help you decide how many of each type are required. If employed, contact the human resources officer at your loved one’s workplace to inform them what has happened. The HR officer might need you to fill out some paperwork pertaining to retirement plans (401k, pension, etc), health benefits, and compensation for unused vacation time. Speaking with an attorney – this can be the lawyer who helped your loved one create a will or estate plan. Should your loved one die without a will, you may want to contact a lawyer for an overview of how the probate process will work and see to what degree you might become liable if your loved one had any outstanding debt obligations. Address financial, insurance, and credit matters. Work with an accountant or financial advisor to verify whether there are funds (from checking or investments) available to pay bills due while the estate is being settled. If not, contact an attorney or financial advisor for help liquidating funds. Identify all debts, obligations, and liabilities and settle them as appropriate. Creditors may want to know when existing debts will be paid, either by you or your loved one’s estate. Notify creditors. Obtain a current copy of the deceased’s credit report, and use this to help identify all credit card and loan accounts that need to be settled and closed. Notify other creditors, such as utility companies, and consider placing the monthly bills for these debts in your name (or another family member or the executor). Cancel services, subscriptions, and other automatic payments. Identify resources the deceased used. Cable, internet, cell phone, food delivery services, gym membership, country club membership, and other automated services were all part of what made the deceased’s life easier while living. Make plans to cancel these services. Notify credit reporting agencies – Experian , Equifax , and TransUnion – of their passing, which can usually be done online, over the phone, or by letter. Call the deceased’s life insurance agent to begin the claims process. Reach out to the deceased’s financial advisor and insurance professionals as well as the person overseeing their workplace retirement plan. These individuals will be able to assist in reviewing the beneficiary claims attached to the investment, retirement plan accounts, and insurance policies. Also, ask these professionals about the possible tax implications from inheriting these assets. Prepare to pay state and federal taxes for your loved one for the year of their death. Stop health insurance. If your loved one owned a small business or professional practice, a discussion with business partners (and clients) may be necessary as well as a consultation with the attorney who advised that business. Hopefully, your loved one had a business succession plan in place . Look after your future. Working through several of these issues may help bring closure to your loved one’s estate and provide mental space for you to celebrate his or her life. Will you be receiving an inheritance? When you are ready to move forward, if you are receiving an inheritance, consult with a financial planner or other trusted advisor to determine how property or investments may impact your future. Consult with an estate attorney to see if wills and trusts need to be updated. If your loved one was a trustee, the trust documents may need to be re-written. Do you have an estate plan in place? While no one really wants to think about these matters, spending the time to work through the necessary steps in advance and putting a plan in place today can minimize decision-making burdens later. Peak Wealth Planning can help you to craft a thoughtful and thorough estate plan, so your family can transition to life without you more easily. Final thought. Has it been more than 5 years since you updated your estate plan? Would you like to bulletproof your wealth for the next generation? If you have more than $2 million saved and need help from a wealth manager, the Peak Wealth Planning team can assist. - - - - - - - - - - - - - - - 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 .

U.S. Supreme Court Justice Warren Burger is famous for more than just his time on the bench. When he died in 1995, he left a 176-word will that gave no specific power to his executors. As a result, he reportedly cost his estate tens of thousands of dollars in attorney’s fees. Judge Burger’s case shows that even law-savvy individuals can make mistakes when it comes to writing their own legal documents. But giving executors the proper power is only one piece of the puzzle. How do you choose an executor? Can anyone do it? What makes an individual a good choice? Choosing an Executor For Your Will Many people choose a spouse, sibling, child, or close friend as executor. In most cases, the job is fairly straightforward. Still, you might give special consideration to someone who is well organized and capable of handling financial matters. Someone who is respected by your heirs and a good communicator also may help make the process run smoothly. Above all, an executor should be someone trustworthy, since this person will have a legal responsibility to manage your money, pay your debts (including taxes), and distribute your assets to your beneficiaries as outlined in your will. When do you consider hiring a professional to be your executor? If your estate is large or you anticipate a significant amount of court time for your executor, you might think of naming a bank, lawyer, or financial professional. These individuals will typically charge a fee, which would be paid by the estate. In some families, singling out one child or sibling as executor could be construed as favoritism, so naming an outside party may be a good alternative. Proximity Whenever possible, choose an executor who lives near you. Court appearances, property issues, even checking mail can be simplified by proximity. Also, some states place additional restrictions on executors who live out of state, so check the laws where you live. Keep Your Executor Informed Whomever you choose, discuss your decision with that person. Make sure the individual understands and accepts the obligation, and is made aware of where you keep important records. Have Alternatives Because the person may pre-decease you – or have a change of heart about executing your wishes – it’s always a good idea to name one or two alternative executors. Where’s the Will? It's a lot to leave up to the law but 68% of Americans do just that - including celebrities. Here are 10 famous people who died without having a will in place. Jimi Hendrix - one of the greatest guitar players of all time: The famed guitarist's siblings had been feuding since 2002 , when their father, Al Hendrix, died and left Jimi's sister Janie in control of the musician's $80-million estate. Bob Marley - Jamaican singer/songwriter: After a 10 year legal battle that added up to $6 million , the Jamaican court ordered that control of Marley's estate remain with Chris Blackwell. Then in 2001, the estate passed to his widow and 10 children. Salvatore Phillip "Sonny" Bono - entertainer turned U.S. Congressman: His wife, Mary Bono, had to go through probate court to become the executor of her husband's estate, and Cher sued the estate for unpaid alimony . Pablo Picasso - famous artist: Dividing his assets took six years of contentious negotiations between his kids and other heirs. Howard Hughes - entrepreneur and billionaire: After several angry lawsuits, a judge finally declared that Howard died without a valid will and therefore split his fortune up among 22 cousins . Abraham Lincoln - lawyers and the sixteenth president of the United States: His estate was eventually settled two and a half years after his death, divided equally between his widow and two children . Martin Luther King, Jr. - civil rights leader and activist: After his death, his heirs formed a corporation to manage King’s estate, but then they fought over control of the corporation . Barry White - soulful entertainer: Upon his death, he left behind an outdated will that left 2 ex-wives, a long-term partner, and nine children unprotected. Stieg Larsson - Swedish author of The Girl with a Dragon Tattoo : When Stieg Larsson died intestate, his life partner, Eva Gabrielsson, who shared Stieg’s life for 32 years, was left out in the cold. Larsson’s father and brother inherited his entire estate, which includes the rights to his best-selling trilogy . Prince - multi-talented artist: While the estate passed to six family members, In the years following Prince's death, there was a furious debate over the value of Prince's estate between the estate's administrator and the IRS. What all these individuals have in common is that their wishes were unknown and it was left to the courts to decide what is to happen to their assets. In many cases, hard feelings and discontentment marred relationships between family members. And, oftentimes, individuals the deceased loved were left with nothing. The period following the death of a loved one is a stressful time and can be confusing for family members. Choosing the right executor can help ensure that the distribution of your assets may be done efficiently and with as little upheaval as possible. Final thought. Has it been more than 5 years since you updated your estate plan? Would you like to bulletproof your wealth for the next generation? If you have more than $2 million saved and need help from a wealth manager, the Peak Wealth Planning team can assist. - - - - - - - - - - - - - - - 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 .

There’s no denying the tax benefits of funding a retirement account, one of which is the compound effect of tax-deferred growth. But your money can’t avoid the IRS forever. That’s why owners and beneficiaries of traditional IRAs , SEP and SIMPLE IRAs , 401(k)s and 403(b) accounts must meet the deadline for taking their required minimum distributions (RMD), which kick in after you reach the age of 72. The Required Minimum Distribution (RMD) was instituted by the government to stop retirees from deferring their retirement accounts forever (without needing to pay taxes). Uncle Sam doesn’t like that. RMD’s are required from traditional IRA’s, 401k’s, or any other retirement account on which you have never paid taxes. This article focuses on traditional IRA accounts. Many of you believe that the RMD withdrawal is a large portion of your retirement account. It’s not. At age 72 you are required to withdraw approximately 4% of your traditional IRA account value. The deadline for withdrawing your 1st RMD is by April 1 of the calendar year after you turn 72. However, the deadline for your 2nd and future RMDs is December 31 of each subsequent year. Here is an example: Turned age 72 on August 11, 2021. 1st RMD Due April 1, 2022. 2nd RMD due by 12/31/2022. It is important to note that your first two RMDs are due in the same calendar year! Where People Go Wrong All too often, owners of traditional IRA plans make a costly mistake: They either end up miscalculating their RMD, or they take it from the wrong type of account. For example they may erroneously take a distribution from the other spouse's IRA. There's more than a good chance that some retirement account owners will fail to properly take all of their required distributions. When an RMD is not correctly taken, any shortfall is subject to a 50% penalty. To put that in dollar figures, if you had an IRA worth $2,000,000 and you were 72 years old, your RMD would be approximately $78,125. If you somehow missed taking that required distribution you could owe the IRS a penalty of $39,062. If you have multiple IRAs, you must calculate each account individually, but you can take your total RMD amount from one IRA or a combination of IRAs. Keep in mind that RMDs apply to traditional IRAs, but not Roth IRAs. How to Fix Your Error If you fail to take an RMD from a traditional IRA and take the proper action, you may be able to appeal the penalty. The IRS has the authority to waive the 50% RMD penalty when the shortfall is due to a reasonable error. Step 1: Take corrective action The first thing you should do after discovering your RMD was missed or you didn’t take the right amount is to take immediate corrective action. Calculate the shortfall and then remove that amount as soon as possible from the IRA. (For help on how to do the math, try an RMD calculator .) Step 2: Use the form Next, file tax form 5329, "Additional Taxes on Qualified Plans (Including IRAs) And Other Tax Favored Accounts." This form can be filed with your tax return or by itself. As long as you're requesting that the 50% penalty be waived, payment does not have to be made when the forms are filed. Step 3: Write a letter Along with the form 5329, you should attach a letter explaining the shortfall and the steps taken to rectify the error. In addition, provide an explanation as to why you made the mistake in the first place. While there's no formal guidance on what a "reasonable error" is, some potential explanations that might pass IRS scrutiny include: illness, a death in the family, a change in address that disrupted essential communication regarding the RMD, or that you relied upon incorrect professional advice. While there's no guarantee, if you follow these steps, there’s a possibility the IRS will waive the penalty. If so, you can expect to receive a notice from the IRS a few months after submitting the form 5329 confirming that they have waived the penalty. It’s a good idea to save this notice. To Avoid Problems in the Future Missing your traditional IRA RMD can be frustrating and costly. To ensure it does not happen, take the necessary steps to make sure the correct distribution occurs by the applicable deadline. Put a reminder on your calendar every January to calculate your RMD and make the withdrawal. Or, ask your financial advisor to do this for you. Some IRA custodians will provide an automatic RMD calculation and payment as well. You may want to inquire with your custodian. Final thought. Are you comfortable with your progress towards retirement? How about helping future generations meet their financial goals? If you have more than $2 million saved and need help from a wealth manager, the Peak Wealth Planning team can assist. - - - - - - - - - - - - - - - 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 .

The federal estate tax exemption is going up again for 2021. The amount is adjusted each year for inflation, so that's not a surprise. But it's still a big deal when the new exemption is announced each year because there's a lot at stake for certain wealthy Americans. 2021 Estate Tax Exemption Generally, when you die, your estate is not subject to the federal estate tax if the value of your estate is less than the exemption amount. For people who pass away in 2021, the exemption amount will be $11.7 million (it's $11.58 million for 2020). For a married couple, that comes to a combined exemption of $23.4 million. Estate Tax Rate As you might guess, only a small percentage of Americans die with an estate worth more than $11.7 million. But for estates that exceed that amount, the federal tax bill is pretty steep. The estate’s value beyond $11.7 million could be taxed at a 40% rate. The first $1 million is taxed at lower rates – from 18% to 39%. That results in a total tax of $345,800 on the first $1 million, which is $54,200 less than what the tax would be if the entire estate were taxed at the top rate. However, once you get past the first $1 million, everything else is taxed at the 40% rate. If a single person’s estate who passed in 2021 was worth $13.7 million, the estate would owe $745k in federal taxes. Since the federal estate tax was reformed in 1976, the estate tax exemption has increased through acts of congress. In most cases, the increase is modest, such as a simple adjustment for inflation. However, at times, the exemption amount has jumped considerably. For example, it shot up from $675,000 to $1 million in 2002, from $1 million to $5 million in 2011, and from $5.49 million to $11.18 million in 2018. But that pattern is scheduled to change. The 2018 increase is temporary, so the base exemption amount is set to drop back down to $5 million (adjusted for inflation) in 2026. Moreover, the federal estate tax exemption could drop back down sooner. Legislation currently being proposed could reduce an individual’s exemption to $5 million in 2022. State Estate Taxes Just because your estate isn't hit with the federal estate tax, that doesn't necessarily mean you're completely off the hook. Your estate might be subject to a state estate tax. Twelve states and the District of Columbia impose their own estate tax , and the state exemption amounts are often much lower than the federal estate tax exemption. For instance, the exemption amount in Massachusetts and Oregon is only $1 million. Plus, six states levy an inheritance tax , which is paid directly by your heirs. (Maryland has both an estate tax and an inheritance tax!) So, just because your estate isn't worth millions of dollars, you children and grandchildren might end up with less in their pockets when you die than what you're expecting. What You Can Do Have a conversation with your financial advisor and your estate planning attorney. You may want to review your estate plan and forecast whether your heirs will owe a federal or state estate tax or inheritance tax. Once you have an idea of the amount, you can examine strategies to either reduce the value of your estate or set aside cash or insurance policies to fund the bill for heirs. If most of your assets are illiquid – such as farmland or real estate – you may need to think creatively about how your heirs will create liquid cash to pay the IRS. A life insurance strategy is one consideration. Or, a sale of inflated assets prior to death could make sense at today’s lower capital gains rates. Final thought. Is your estate plan up to date? Do you have a plan for heirs to cover both federal and state estate taxes? 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 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 .

If you follow financial news at all — or even just the nightly news — chances are you've frequently heard experts and economists discussing the economy's inflation rate. While they can make it sound like something to worry about, they don't usually take time to explain the basics, including how inflation can affect your efforts to save and invest. To help straighten things out, we're explaining the potential impact of inflation on your financial plans. According to a study conducted by Wealthfront , “In 2036, 18 years from now, four years at a private university will be around $303,000 up from $167,000 today.” What is more, “to get a degree at a public university, you’ll need about $184,000 in 2036, compared with $101,000 now.” What Is Inflation? Inflation is when average prices in the entire country go up. In other words, the buying power of an individual dollar decreases when the price of everything has increased. For example, pretend it costs $2,000 to buy a bicycle today, and the current inflation rate is 3 percent: Next year, the price of the bicycle will be $2,060, assuming that price increases in step with inflation. In 1950, a single dollar went a lot further, as the average house only cost $7,354 and a year of tuition at the University of Pennsylvania was only $600 . As the years went by, wages and prices have increased to push the entire price level for goods and services up, so the value of a single dollar has gone down. That's inflation in action. According to the Bureau of Labor Statistics, the inflation rate from August 2020 to August 2021 was about 5 percent , but this rate can swing up and down depending on the state of the economy. How Can It Impact Savings? Over time, inflation can reduce the value of your savings , because prices typically go up in the future. This is most noticeable with cash. If you keep $10,000 under your bed, that money may not be able to buy as much 20 years into the future. While you haven't actually lost money, you end up with a smaller net worth because inflation eats into your purchasing power. When you keep your money in the bank, you may earn interest, which balances out some of the effects of inflation. When inflation is high, banks typically pay higher interest rates. But once again, your savings may not grow fast enough to completely offset the inflation loss. How Can It Impact Investments? The impact of inflation on investments depen ds on the investment type. For investments with a set annual return, like regular bonds or bank certificates of deposit, inflation can hurt performance — since you earn the same interest payment each year, it can cut into your earnings. If you receive a payment of $1,000 per year, for instance, that payment would be worth less and less each year given inflation. For stocks, inflation can have a mixed impact. Inflation is typically high when the economy is strong. Companies may be selling more, which could help their share price. However, companies will also pay more for wages and raw materials, which hurts their value. Whether inflation will help or hurt a stock can depend on the performance of the company behind it. On the other hand, precious metals like gold historically do well when inflation is high. As the value of the dollar goes down, it costs more dollars to buy the same amount of gold. Finally, there are some investments that are indexed for inflation risk. They earn more when inflation goes up and less when inflation goes down, so your total earnings are more stable. Some bonds and annuities offer this feature for an additional cost. How Can You Plan for Inflation? Inflation is one reason many people don't put all their money in the bank — over time, that inflation can erode the value of those savings. For that reason, some prefer to keep some of their money in potentially higher-growth investments like stocks or mutual funds, because on average these investments earn more per year than the inflation rate (although they also carry a risk of lower earnings or loss). You may also want to consider inflation risk as you figure out what kinds of investments to have in your portfolio . Fixed investments, like bonds or fixed annuities, can be adversely affected by inflation. To diversify, some investors choose to add gold or inflation-indexed investments to their portfolios. Generally, the value of the stock market will increase across time with inflation. Real estate can also provide protection against inflation. Landlords can increase rents to keep pace with inflation. Inflation is a market force that is impossible to completely avoid. But by planning for it and putting a strong investment strategy in place, you might be able to help minimize the impact of inflation on your savings and long-term financial plans. Final thought. Are you comfortable with your progress towards retirement? How about helping future generations meet their financial goals? If you have more than $2 million saved and need help from a wealth manager, the Peak Wealth Planning team can assist. Other Useful Resources: Putting the Rising Cost of College in Perspective 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 .

Life insurance is meant to protect your family’s financial security when you die. But having just any life insurance policy doesn’t cut it. A policy lacking in coverage amount or a long enough term length can leave your loved ones struggling financially after you die. What happens if you don’t have enough life insurance coverage? The consequences of a life insurance policy that doesn’t offer sufficient support can be devastating for your loved ones. While the long-term impact on larger expenses might be more apparent, they could also face financial hardship in their everyday lives almost immediately. Can’t keep up with everyday expenses You want your life insurance policy to provide for your family’s basic needs. A repercussion of too low of a coverage amount is that your loved ones could lose cash flow imperative to their daily living. Without your income or an adequate income replacement, your dependents could struggle to cover food, bills, and all other necessary expenses. As an example, many employees who make $100,000 a year have workplace insurance coverage in the amount of $250,000. While this sounds like a large dollar amount, that would only cover up to 3 years of living expenses. If you have kids who are 8 and 10 years old, that only supports them till ages 11 and 13. What happens after the insurance money is gone? Loss of long-term financial support Distinguishing the length of your life insurance policy necessitates anticipating future costs. If you have a 30-year mortgage and a 20-year life insurance policy, you are once again creating a scenario where your dependents may either end up paying your debts or losing part of your estate to a debt collector. Below are some of the average costs that someone might see in Illinois, which has a cost of living that is 6.6% less than the national average. Average mortgage = $234,000 Average annual cost of in-state college tuition = $18,591 Average cost of raising a child until 18 = $233,640 Median salary or income replacement = $63,007 Average annual cost of retirement = $48,914 Even with a below-average cost of living, you would need at least a $1 million dollar life insurance policy to ensure your family’s financial health for 10 years after you die. Your home might be seized Mortgages, loans, and any other financial liabilities you have incurred are going to impact how much life insurance coverage you’ll need — especially if you have any loans that have been co-signed. If you die and your life insurance policy doesn’t offer enough of a coverage amount to pay off your debts, they will be liable for any co-signed expenses. Even if you are the only borrower on a loan, not having enough life insurance to cover your debts can have major repercussions for your dependents. Often, outstanding debts have to be sorted out in a probate court. If your estate doesn’t have enough money to pay off the debt, the court could sell your belongings — which could include the house that your dependents live in or implicate any other part of your estate that they rely on. Protect your family by getting the right coverage. Finding the sweet spot between the right amount of life insurance coverage and term length makes all the difference when it comes to your family’s financial assurance. Read on to learn about what you can do to make sure you're purchasing a life insurance policy that adequately protects your loved ones. Most people should purchase a policy that offers coverage of at least 10 to 15 times their income, but this amount can be even higher based on individual circumstances. If you earn $200,000 a year, you should have $2 to $3 million of life insurance. Low coverage amounts But according to Policygenius research, approximately three-fourths of people who have an active life insurance policy don’t have enough coverage to adequately support their family after their death, and according to a recent survey by Life Happens and LIMRA, four out of 10 households would be unable to pay immediate costs if the primary breadwinner passed away . Wrong type of life insurance policy Even with the best of intentions, purchasing the wrong type of life insurance policy can pose major risks to the financial security of your loved ones. Some life insurance policies are too expensive to maintain or don’t offer a long enough period for necessary expenses. For example, a 30 year mortgage and a 15 year term life policy creates a situation where your family doesn’t have sufficient coverage. You may also want to consider an insurance policy that has a long-term care rider. Be sure to ask your insurance agent to review your budget and whether you can afford to sustain the cost of your policy. What to do next The best way to ensure that your loved ones aren’t struggling financially after you pass away is, of course, to identify all of your financial risks and forecast your family’s needs with the help of a financial advisor. Then, be sure to purchase the right policy where you can afford the premiums. Final thought. Is your family adequately protected with life insurance? How about helping future generations meet their financial goals? If your financial situation has changed such as taking on more debt or having a higher income, you should review your coverage. 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 .

Supporting causes in your local community that you care about can make you feel good and make a difference in the lives of others. In the past, I have volunteered, provided annual gifts of cash, and held fundraisers for organizations like the Champaign Public Library Foundation , Feeding Our Kids , the Eastern Illinois Foodbank , and the Krannert Center for the Performing Arts at the University of Illinois . My partner and I believe these organizations enhance the lives of people in the Champaign-Urbana community. We value the work they do and want to contribute. Many of Peak Wealth Planning’s clients have enjoyed financial success and in turn support organizations important to their vision and values for their community. Our clients volunteer their time and provide donations. Some of our clients donate cash, while others hold appreciated stock and make annual gifts of stock directly to organizations. If you would like to make a donation to a cause you care about, consider donating appreciated stock to charity rather than selling the shares outright and donating the cash. Donating Appreciated Stock By donating stock you can support a charity’s mission. Donating appreciated stock to a tax-qualified charity may allow you to lower your taxes. If you have held the stock for more than a year, you may be able to deduct the fair market value of the stock on your taxes in the year that you donate. This will reduce your tax bill. If the charity is tax-exempt, it may not face capital gains tax on the stock when it sells shares to meet its operating or capital needs. If you sell shares of appreciated stock from a taxable account and subsequently donate the proceeds from the sale to charity, you may face capital gains tax on any gain you realize, which effectively reduces the benefit of a cash donation. With a stock gift, a tax-exempt charity may receive full value when the shares are sold . Remember the tax rules for charitable donations. If you donate appreciated stock to a charity, you may want to review IRS Publication 526, Charitable Contributions . Double-check to see that the charity has non-profit status under federal tax law, and be sure to ask your accountant to record the deduction on a Schedule A that you attach to your 1040. Donating Cash When is donating cash a choice to consider? If you don’t have appreciated stock, donating cash supports the organization you care about and may allow you to take a deduction on your federal taxes . As an example, if a donor in the top 37% federal tax bracket gives a 501(c)(3) non-profit organization a gift of $5,000, her actual cost may be $3,150 after $1,850 realized in tax savings. A donor may also receive state tax savings. Make a Plan Today Gifting cash or other assets to an organization is a wonderful opportunity. You may want to ask your trusted financial advisor how giving fits into your financial plan. Keep in mind that tax rules are constantly being adjusted, and there’s a possibility that the current rules may change. There are annual limits to tax deductions you can take for donations to charity . Make certain to consult your tax professional before embarking on a gifting strategy. Make a Difference in the Community: Champaign Public Library Foundation: The Champaign Public Library Foundation is committed to raising private funds to nourish the love of learning, make information available to all, and bring the community together. Eastern Illinois Foodbank: The Eastern Illinois Foodbank exists to alleviate hunger in eastern Illinois by providing a reliable source of food for the hungry through cooperation with a network of food pantries and agencies. Feeding Our Kids : Feeding Our Kids provides nourishing food to food-insecure school children in Champaign County on weekends and school holidays throughout the school year. Krannert Center for the Performing Arts: Krannert Center for the Performing Arts is dedicated to the advancement of education, research, and public engagement through the pursuit of excellence and innovation in the performing arts. If you are a Peak Wealth Insider that would like to contribute to this list, please reach out to us with the name of the organization, link to their site, and how they make a difference in the community. 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 .

Travel changes you. And as the number one bucket list item for most individuals leading towards retirement, how can you make the most of the travel you do? How will you impact your spirit, the world, and the people you meet? It doesn’t need to be complicated. But awareness of the choices you make is key. According to the United Nations Environmental Programme (UNEP) , for every US$100 spent by tourists, only US$5 stays in a destination’s local economy. If you want the money you spend on travel to stay in the places you visit then you may want to consider looking into social impact travel when you plan your next adventure. Social impact travel is a growing trend in the travel industry that aims to support local economies and make a positive impact in host communities. This new trend centers on discovering local cultures and respecting the cultural, economic, and ecological environment. People are increasingly seeking immersive local cultural experiences that are respectful, ethical and sustainable. This trend has taken many different forms, depending on the preferences of the traveler. Locally-Sourced Travel Locally-sourced tourism emphasizes supporting local businesses to benefit the local economy rather than large multinational corporations. There are different degrees to which you can participate in locally-sourced tourism. Travelers can opt to eat at family-owned restaurants or restaurants that support local farmers, stay in AirBnB's or locally-owned hotels, and utilize local travel guides rather than international agencies. “I would like to see people more aware of where their food comes from. I would like to see small farmers empowered.” - Anthony Bourdain From farm-to-table dining experiences to classes and stays in historic bed-and-breakfasts inns to buying locally-made souvenirs to bring home to your family, there are a multitude of ways you can become a locally-sourced traveler that boosts the local economy. Learn how to find great local things to do in any destination . Culinary Travel Culinary Tourism, also known as food tourism and gastronomy tourism, engages individuals to broaden their understanding of a culture or lifestyle through foods. They embark on tours that not only expand their palate but educate them on the link between food and local customs. These travelers search for authentic culinary experiences that expose them to new tastes, textures and traditions. “Do we really want to travel in hermetically sealed popemobiles through the rural provinces of France, Mexico and the Far East, eating only in Hard Rock Cafes and McDonald's? Or do we want to eat without fear, tearing into the local stew, the humble taqueria's mystery meat, the sincerely offered gift of a lightly grilled fish head?” - Anthony Bourdain One of the most famous culinary travelers had been former chef Anthony Bourdain. He took us to places unknown and places off the beaten path, all while paving the way for other foodies to travel with authenticity. Learn more about Culinary Travel. Eco Travel Ecotourism is ecologically sustainable tourism with a primary goal of conserving natural areas and developing cultural understanding and appreciation. Oftentimes, when people travel abroad, they visit destinations that have been overrun by tourists. “Eco-travel focuses on overseas adventures that improves and preserves the surrounding environment while enhancing the well-being of the local community ( Destination Earth ).” “Travel isn’t always pretty. It isn’t always comfortable. Sometimes it hurts, it even breaks your heart. But that’s okay. The journey changes you; it should change you. It leaves marks on your memory, on your consciousness, on your heart, and on your body. You take something with you. Hopefully, you leave something good behind.” - Anthony Bourdain Depending on the destination, some travelers stay in eco-lodges, which are accommodations created to have the least impact on the natural environment as possible. Often they aim to educate guests on the surrounding natural environment. Learn more about how to travel more eco-friendly. Conservation Travel Conservation tourism contributes significantly to environmental protection and sustainable use of natural resources. Opportunities are often found near areas rich with wildlife and appeal to travelers interested in an alternative travel experience. Conservation tourism also generates money for locals, especially in less wealthy nations and regions. “It seems that the more places I see and experience, the bigger I realize the world to be. The more I become aware of, the more I realize how relatively little I know of it, how many places I have still to go, how much more there is to learn.” - Anthony Bourdain Wildlife conservation tourism is for people who love the wild, are passionate about the environment, and want to make a difference. This type of travel is essentially a working vacation. You’d join a team of trained researchers and professional wildlife monitors working on a long-term project to protect and help conserve the local wildlife. Learn if wildlife conservation tourism is right for you . Volunteer Travel Volunteer tourism combines travel with volunteering your time, skills, and energy to an organization, issue, or cause to help make a difference in local communities. Like conservation tourism, volunteer tourism is a working vacation but with the goal of helping other people. “To be treated well in places where you don’t expect to be treated well, to find things in common with people you thought previously you had very, very little in common with, that can’t be a bad thing.” – Anthony Bourdain Depending on your interests and skills, types of volunteering work you can do include: working with kids for childcare or tutoring, teaching English, participating in community building projects, and assisting with public healthcare and awareness programs. Despite the good intentions of volunteer travelers, the amount of true impact by short-term volunteers is debatable. Get started with your adventure! There are many organizations like GoEco that organize travel opportunities with volunteer tourism, but if you are a Rotary member or belong to a church community find out what opportunities for volunteering might be available to you. These are just a few types of ways you can make an impact while traveling. As you approach your bucket list of places you’d like to travel to, bring an awareness of the impact of your travel and look for ways to benefit the communities. I’ll leave you with one final quote from Anthony Bourdain. “As you move through this life and this world you change things slightly, you leave marks behind, however small. And in return, life — and travel — leaves marks on you. Most of the time, those marks – on your body or on your heart — are beautiful. Often, though, they hurt.” Having empathy for your fellow human beings while protecting the local culture and environment may not always be easy, but the impact will ripple through you and the places you see. Final thought. Are you comfortable with your progress towards retirement? Want to fund annual family trips with your loved ones? If you have more than $1 million saved and need help from a wealth manager, the Peak Wealth Planning team can assist. Other Useful Resources: Center for Responsible Travel Travel Care Code 7 Most Popular Volunteer Travel Opportunities in the World - - - - - - - - - - - - - - - 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 .

Risk is a factor in any investment decision that you make and your tolerance for risk is something that you will want to consider within your investment strategy. Your risk tolerance is balanced against your time horizon, meaning the time between now and when you anticipate needing your money. Is it possible to avoid a loss? No, not completely, but you can take steps to manage that risk when investing. This is where conversations with your trusted financial advisor about risk tolerance are critical. What would you rather have, $500 right now or a 50% chance at $2,000? Many people go for the $2,000 and rightfully so. Since you have a 50/50 chance, a decision tree shows the $2,000 answer carries a potential value of $1,000. But let’s add a few zeros and see if that changes your perspective. What would you rather have, $50,000 right now or a 50% chance at $200,000? The decision tree says the opportunity to win $200,000 has the highest potential value. But in reality, many people second-guess that decision because $50,000 is a lot of money. Remember, there is no correct answer to these questions. They simply help you better understand the concept of risk. Timing and Concentration Investment risk is related to the timing of decisions you make. The value of your stock portfolio moves up and down, sometimes dramatically. If you sell when prices are up you will do well. If you sell when down, you take a loss. If you understand the likely changes in your portfolio before you invest, you will be more inclined to invest for the long term which is the best way to meet your goals. A good financial advisor will educate you on the range of outcomes before investing your hard earned money. Another risk is concentration risk. If you invest in a single stock or crypto-currency, the probability of your investment becoming worthless is greater than if you invest in a diversified portfolio with hundreds of stocks. With hundreds of stocks, if one company fails, others will survive and may even flourish if they are better managed or in a different industry. Investment risk can be managed, but it can’t be eliminated entirely. All investments carry some level of risk. And in general, the greater the risk an investment carries, the higher its potential return. Many people build wealth through concentrated investments, but maintain wealth through diversification. Find out if your portfolio is within your comfort zone. Begin with a call with Peak Wealth Planning . Risk should be considered when you invest, but don’t let it get in the way of your dreams. Ultimately, your risk concerns should inform discussions with a financial advisor. This conversation should include the time horizon, the goals you hope to realize from your investments, and the risks each investment strategy presents to meeting your goals. Final thought. Are you comfortable with your progress towards retirement? How about helping future generations meet their financial goals? 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 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 .

If you are saving for retirement you may have concerns about a major downturn in the stock market. Many individuals panic and sell their stock portfolio when markets are down because they don’t fully understand the ‘sequence of returns’ risk. What exactly is the “sequence of returns”? The phrase describes the yearly variation in an investment portfolio’s rate of return. For most investors, their returns will be driven by stock market fluctuations. Most people accumulate assets, including stocks, bonds, and real estate, while they are working and saving for retirement. They take distributions from their investment portfolios during their retirement years. The Path to Great Fortune is Not Linear Take a look at the graph below from BlackRock . Three investors start portfolios with sums of $1 million. Each of the three portfolios averages a 7% annual return across 25 years. However, the returns and value of each portfolio vary widely from year to year. In two scenarios (A & C), during the first five years, the returns range from -7% to +22%. In the third scenario (B), the return is a steady 7% every year. Each portfolio accumulates the same total of $5.4 million after 25 years. This is because the average annual return is the same hypothetical 7% after 25 years. Stay the Course Different portfolio strategies (mix of stocks, bonds, and real estate) can wind up with similar wealth levels. Although, the change in value each year can vary widely from portfolio to portfolio. The graph above assumes that each investor evaluated their financial ability to hold onto their investments through periods of declining and rising prices. They did not sell during market downturns. Choose The Path That Works for You It’s important to remember that investing involves risks, and investment decisions should be based on your own goals , time horizon, and risk tolerance . The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Investment returns are not guaranteed and your financial advisor should illustrate the potential fluctuations in your portfolio before putting your hard-earned money to work. He should provide you with an estimated –– although not guaranteed –– average annual return for your portfolio. Final thought. Do you how sequence of returns risk might affect your investment portfolio? 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 .

Most investors looking to build wealth invest in mutual funds or exchange-traded funds (ETFs). These funds provide a convenient way to purchase hundreds or thousands of shares of stock, real estate investments, or bonds. While returns can vary dramatically across a single year or two, the most important question for investors is: What is the long-term average annual return of stocks, real estate, and bonds? Good Average Annual Return for a Mutual Fund A good average annual return for a mutual fund or ETF depends on two primary factors — the type of fund and the historical time frame you are reviewing. When researching funds, it’s wise to review long-term returns, such as the 10-year annualized return, to get a reasonable expectation of future performance. For stock mutual funds, a “good” long-term return (annualized, for 10 years or more) is 8%-10%. For bond mutual funds, a good long-term return would be 3% to 5%. For real estate investment, a good long-term return would be 9-11%. For more precise, “apples to apples” comparisons, use a good online fund screener . You can then compare any given return for a mutual fund or ETF with its category average or against a benchmark index. Compare to a Benchmark One measure of what determines good long-term performance is when a fund comes close to meeting its benchmark index for 10 years or more. Most funds cannot match their benchmark since benchmarks do not include fees, but fund managers have expenses to pay. Popular benchmarks include the Standard and Poor’s 500 Index for large company US Stocks and the Bloomberg Barclay’s Aggregate Bond Index. The ‘Agg’ represents the U.S. investment-grade bond market including corporate bonds, municipal bonds, mortgage-backed securities, and Treasuries. Fund Examples Let’s take a look at examples of specific ETF funds and compare the annualized return across multiple years. These returns are accurate as of 10/31/2021 (Morningstar). iShares Core S&P 500 Index ETF ( IVV ) has given an annualized return of 9.71% during the past 20 years. This ETF seeks to track the investment results of an index composed of large-capitalization U.S. equities. iShares Core Aggregate Bond ETF ( AGG ) has given an annualized return of 4.01% during the past 15 years. This ETF seeks to track the investment results of an index composed of the total U.S. investment-grade bond market. Vanguard Real Estate ETF ( VNQ ) has given an average annual return of 10.93% during the past 20 years. This ETF tracks the universe of large, mid-size, and small U.S. companies within the real estate sector. You can see how stock returns in the S&P 500 or real estate returns can produce higher returns for your portfolio than more conservative investment-grade bonds. These higher returns can support your wealth building and help overcome rising inflation. More conservative bonds balance out the higher risk and return of stocks and real estate funds. Bonds might be used for your medium-term (3-8 year) spending needs in retirement. Create Your Portfolio In addition to large US stocks, real estate, and bond funds, there are many categories of funds to choose from including small and mid-sized company stocks, international stocks, high yield more risky bonds, international bonds, and master limited partnerships to name a few. The weight or proportion of each fund type will ultimately determine the long-term return of your portfolio. And, the mix of funds will determine the daily fluctuation of your investment value. It’s important to create a mix of funds that achieves your long-term goals and meets your return need such as supporting your safe withdrawal rate during retirement. However, you want to make sure the amount of risk you are taking allows you to sleep comfortably and not have too much anxiety when the stock market craters 40% during the next global pandemic. Final thought. Have you selected the right mutual funds to meet your investing 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 .

The goal-setting process is the most critical of all in the development of a financial plan. All the projections that your advisor comes up with mean nothing unless they represent those things that are dear to your heart. Some people have their desires clearly mapped out while others only have a vague idea of what it is that will make them happy. Now that you’ve got a handle on your budget , the next step is to turn your dreams into reality by making them into financial goals. To do this, examine your life’s story and whether you are satisfied. It helps to think about your relationship with money. The two most important things we can control in life are how we spend our money and our time. So let's take a look at what that means and how we can do that. While no one question can trigger your mind to determine what you really want, I have come up with a few questions that may help you get started. Write down your answers since there are some real advantages to writing down goals . You will find it helps to create actionable steps toward your big dreams and that by identifying those steps, your goals become much more doable. Read through the questions below – there are 14 of them – and if you’d like, you can download a printable version right here . Examine your life’s story. What in your current life story do you enjoy? (i.e. your job, where you reside, relationships with family/friends, certain hobbies…) Did you expect your life to be different than it is? What would you do differently with your life if you could make a change? What do you want moving forward? Examine your relationship with money. What is your gut reaction to money and financial matters? List any conflicts, stresses, or concerns around money that you would like to get rid of. What changes would you like to experience in the way you deal with your money? Does money impact your relationships with others? Identify your lifestyle goals. What are your top important life or family goals? List the important ways you would like to imrove your life or relationships. What milestones exist for you before and after retirement? Identify how you use your most precious resource – time. What is it you are truly passionate about? Are there changes you would like to make in your life to allow you to spend more energy on this activity? Has anything prevented you from fulfilling this passion? Identify how you want to spend your time during retirement. What are your expectations of retirement? When do you want to retire? Do you want to work at all in retirement? When you are going through this exercise, if you have a spouse or partner, it is important to have them do the exercise as well. Think through your answers and get them down on paper. Be as clear and specific as possible—and don’t be afraid to dream big. You never know what’s possible until you find out what’s possible. How can your trusted financial advisor help? Your trusted financial advisor can help you bridge your goals to reality. Once you have written down your answers, meet with your advisor to discuss your answers. Your advisor can help you align your finances with your passions and vision for the future. He can help you allocate your savings and investments while addressing your financial concerns and priorities. And, he can ensure that you are not only leading the life you want today, but that you are on track for the retirement that fits with your expectations and lifestyle. Final thought. Are you in need of an advisor that will keep you accountable for your financial goals? Do you need assistance tracking your goals’ progress? Are you looking for recommendations regarding specific action steps you can take to meet your 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 .

The average American owes $52,940 in debt . Of that $52,940, $36,730 is from mortgage debt, $5,730 is from student loans, and $5,000 is from auto loans. Little wonder that money worries can be a major cause of stress. However, it is important to recognize the differences between productive debt and unproductive debt. Productive debt is debt used to purchase assets that appreciate over time or debt used to increase your own productivity. For example, if you acquire a mortgage to put a roof over your head or invest in an apartment building using debt, real estate prices typically increase over time and that builds your wealth. Or, if you obtain a graduate degree, you can increase your productivity and income. Productive debt ultimately increases your net worth when managed appropriately. Unproductive debt ​is often used for purchasing possessions. For example, while items like a new car and furniture may spark joy they typically will not appreciate in value. The worst kind of debt is credit card debt because of the ultra high interest rates, so think twice before charging a vacation or using a line of credit to gamble in Las Vegas. The Link Between Stress and Health Humans have an innate response called “flight or fight.” It is nature’s way of launching our bodies into action during moments of stress. Faster heartbeat, accelerated breathing, tightening of muscles, and increase in sweating – these are all physical responses we may feel in stressful situations. These are response mechanisms that prepared our ancestors to run from, or confront, a danger on the savanna. But they can be less useful in more modern times. In the short term, stress can manifest itself in physical symptoms, such as headaches, fatigue, difficulty sleeping or concentrating, an upset stomach, and general irritability. These brief episodes of stress usually do not cause lasting harm to personal health. However, debt — and the stress it causes — is often a persistent challenge. If your stress system stays activated over longer periods of time, it can lead to serious health problems , such as weight gain, fatigue, anxiety, depression, headaches, and sleep problems. Managing Stress and Debt If you are experiencing debt-related stress, you should consider attacking the root of the problem. While it may take time to work down debt, that doesn’t mean you can’t manage the stress during the interim period. Begin by developing a strategy to eliminate debt and keeping your debt in perspective. Develop a Strategy Developing a strategy to eliminate your debt is the first step to lowering stress. The sense of control that a financial plan gives you can furnish you with hope and optimism. At Peak Wealth Planning, we work with our Illinois and Colorado clients to help them allocate cash flow to create a plan to build wealth while reducing or eliminating their debts. In some cases, the plan is to keep student loans for a long time so a client can prioritize retirement savings. In other cases, a client aggressively pays down a mortgage to shield a home from creditors or have the peace of mind of being ‘debt-free’ upon retirement. Gain Perspective It’s important that you keep your debt concerns in perspective. Remind yourself that debt is a tool and is not necessarily permanent. Sometimes debt brings great rewards, like profits on an apartment building or a $50k raise after finishing your MBA. Writing in a journal can be helpful as an outlet to the worried thoughts that can cycle endlessly through your mind. Ask your financial advisor to track your net worth each year to monitor progress in paying down your debt. Seeing that progress can bring you joy and satisfaction. Final thought. Do you have written financial goals? Is stress causing you to re-think your investment strategy? Are there significant changes happening in your life? 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 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 .

Covid-19 global pandemic. Supply chain shortages. Rising lumber, housing and grocery prices. A never ending, divisive political news cycle, social discord, and rising inflation rates. The past two years have been one crisis after another, and to say it has created a lot of stress for many people would be an understatement. Short-term and chronic stress can negatively impact decision making. But there are ways to avoid making bad investment choices under duress. Despite these stressors, life goes on. Decisions — big and small, life changing or trivial — must still be made. Humans are not always great at making rational decisions during good times, but stress may lead to poor investment choices. Psychological research has pointed to several causes. Heightened stress levels cause our attention to narrow. Humans already have a tendency to focus on often irrelevant, but readily accessible, characteristics when making decisions. Factors like the familiarity bias and recency effect lead individual investors to overweight growth stocks of companies’ products they use (Apple, Netflix, Amazon, Facebook, Google) or to buy crypto (junk) coins recently in their twitter feed — habits that result in lower returns. When news headlines are negative and overwhelming, investors use decision making shortcuts (heuristics) to simplify information processing. While this may save energy, it means relying heavily on superficial information for making decisions. Similarly, panic selling at the bottom just because Bob at the watercooler ‘got out of the market and went to call cash’ and all ‘indicators are flashing red’ may ease our acute stress, but it’s unlikely to be a good investment decision. Most market downturns recover in approximately 30 to 40 months. Before you make a decision, pause and consider 4 questions. Before you call your broker or click on your smartphone, take a day to sleep on your decision. Write down answers to the following four questions before you act: How much can you afford to lose and still sleep at night? What is your time horizon for holding this investment? What specific goal are you trying to achieve? Is this investment congruent with your long term financial plan? Many investors “stir up” their investments when major political or global events happen. Or, when major life changes occur such as births, marriages, or deaths. They seem to get a renewed interest in their stocks and/or begin to second-guess the effectiveness of their long-term strategies. Your trusted financial advisor can help you focus on your long-term objectives and help reduce the influence of stress which can hinder meeting your financial goals. Final thought. Do you have written financial goals? Is stress causing you to re-think your investment strategy? Are there significant changes happening in your life? 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 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 .