At Peak Wealth Planning, we continue to encourage our clients to take proactive steps in protecting their credit, and one of the most effective ways to do that in 2024 is by placing a fraud alert on your credit file. In today’s digital world, It is nearly impossible to prevent your personal information, such as your Social Security number, from being exposed or compromised. A fraud alert provides an extra layer of security by instructing creditors to verify your identity before processing any credit application in your name. Best of all, this service is free!  A fraud alert provides an extra layer of security by instructing creditors to verify your identity before processing any credit application in your name. Best of all, this service is free! What does a fraud alert do?  A fraud alert adds an additional verification step to the loan application process, helping to prevent criminals from opening accounts or taking out loans using your information. When a lender requests access to your credit report from one of the national credit bureaus (Experian, TransUnion or Equifax), a fraud alert prompts the lender to confirm your identity before proceeding. Once you place a fraud alert with any one of the three major credit bureaus, it will automatically apply to all three. There are several types of fraud alerts available depending on your situation: Initial Fraud Alert. This type lasts one year and can be renewed as often as needed. It is a great option if you suspect your information has been exposed but don’t have confirmation of identity theft. Active-Duty Fraud Alert. This is designed for active-duty service members and also lasts for one year. It offers extra protection while deployed or away from home. Extended Fraud Victim Alert. If you have been a victim of identity theft and have filed an official report, you can apply for this seven-year alert by submitting your identity theft report to the credit bureaus. How does a fraud alert affect your credit?  The great news is that placing a fraud alert will not impact your credit score or the information on your credit report. However, it may affect the ability to get instant approval for certain credit offers, such as those you encounter online or in stores, as the automated systems may require additional identity verification.  While this extra step may delay approval for instant credit, it will not prevent you from being approved; it simply adds a verification process to help keep your information safe.   When should you set up a fraud alert?  If you have reason to believe that your personal information, such as your Social Security number or credit card details, have been compromised – whether due to a data breach, theft, or phishing scams  – a fraud alert is a wise precaution. Even if you haven't been directly affected, taking this step can provide peace of mind and protection from future threats.  In today’s environment, where cybersecurity threats are increasing, setting up a fraud alert should be part of your annual financial check-up. It’ s quick, free, and can significantly reduce your exposure to identity theft.   How to set up a fraud alert  Setting up a fraud alert in 2024 is easier than ever. You can do so by visiting any of the three major credit bureaus. Once you place an alert at one bureau, it will be applied to your reports at all three bureaus: Experian: Visit Experian’s Fraud Alert Center  to follow their step-by-step guide and upload the required documents, such as your government-issued ID and proof of address. Equifax:  Call Equifax at 1-800-685-1111 or visit Equifax’s Fraud Alert page . TransUnion: Go to TransUnion’s Fraud Alert page  and follow the instructions to activate your alert. Protect yourself in 2024  A fraud alert is a smart and simple way to protect your financial identity from scammers and unauthorized access. With the rise of data breaches and identity theft, it’s more important than ever to take steps to safeguard your credit. Placing a fraud alert is an easy way to give yourself peace of mind without major inconvenience. We recommend setting a reminder to renew the fraud alert annually to ensure that your personal information remains protected. Final thought. Are you confident in your financial security as you approach retirement? If you have accumulated more than $2 million and are looking for expert wealth management guidance, the Peak Wealth Planning team is here to help. Schedule a call to learn more today  to learn more about how we can assist you in reaching your financial goals. - - - - - - - - - - - - - - - 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 SURS Retirement Savings Plan (SURS RSP), which was formerly known as the SURS Self Managed Plan (SURS SMP), is one of three pension options you may select as an employee in the SURS system. The primary benefit of the SURS self managed plan was that you were able to pick your mix of stock, bond, and other mutual funds in line with a risk and return profile that could grow your account and leave you with the decision of what to do with your money at retirement. At retirement as a SURS SMP participant myself, I planned to review my account balance at age 55 or older and decide whether to buy an annuity and receive lifetime health insurance. Or, roll the money to an IRA and manage my own periodic withdrawals but forgo the health insurance. With the previous Self Managed Plan (SMP) – the way I had set my allocations – SURS did not change my stock, bond mix each year, or automatically move a portion of my money into a higher fee annuity account each year. That has all changed with the SURS Retirement Savings Plan (SURS RSP). In this article, I'm going to explain how the SURS Retirement Savings Plan has changed and how these changes will impact SURS members. I will share the pros and cons of the SURS Secure Income Portfolio as well as provide you with an alternative investment strategy of self selecting core funds. Lastly, I’ll provide you with an opportunity to benefit from my expertise and gain a complete financial picture for you and your spouse. Asset allocation with the SURS RSP Lifetime Income Strategy The new SURS RSP Lifetime Income Strategy by default steps down your retirement funds from 95% stocks at age 50 to 50% stocks at age 65 by increasing its allocation to bonds (fixed income securities) each year. It does this by moving 1/15th of your account each year into the Secure Income Portfolio. The Secure Income Portfolio is one-half stocks and one-half bonds. Within the stock allocation, 40% of the stocks are international and 60% are domestic stocks. Fixed income securities generally work well for preserving assets during a stock market downturn but may not keep up with inflation in today’s market environment. SURS Secure Income Portfolio - Guaranteed Income with a Price Tag The new SURS RSP automatically shifts 1/15th of your retirement funds each year from the Lifetime Income Strategy between ages 50 and 65 into a 1.18% annual fee Secure Income Portfolio that is invested in a 50% stock/50% bonds portfolio. The purpose of the Secure Income Portfolio is to provide insurance for participants to take guaranteed monthly withdrawals in retirement regardless of your retirement portfolio's actual value. The benefit of purchasing guaranteed income with a little slice of your SURS RSP account each calendar quarter between age 50 and 65 is dollar cost averaging into different guaranteed withdrawal rates across the 15 year period. For a 50 year old, withdrawal rates have been running 3.4 to 4.8% during the past couple of years. These withdrawal rates (for the 60 quarters between age 50 and 65) will be blended at your retirement to reduce the risk of converting your entire account balance to an annuity at a single point in the future. Like most annuities, the Secure Income strategy promises lifetime income. In other words, you can’t run out of money before you die. And, if there are funds left in your account when you die, the Secure Income strategy includes a survivor benefit for your named beneficiary. The downside of purchasing this income protection relatively early (between age 50 and 65) is that your retirement account balance might be lower at age 65 due to the higher fees associated with the income protection insurance. This could result in a reduced SURS RSP account value at age 65 when you begin receiving an annuity. Assuming you have a long time horizon to invest (10 or more years), the trade off of dollar cost averaging your guaranteed withdrawal rates may not be worth the potential reduction in the value of your account. A lower SURS RSP balance means a lower monthly retirement income at age 65. I have spoken with SURS participants near retirement who were surprised at how low their expected monthly from the Secure Income Portfolio would be. On the other hand, a significant benefit of the Secure Income Portfolio is the potential for increases in monthly income unlike a regular annuity. If the value of your 50% bond/50% stock Secure Income portfolio increases each year after age 65, your monthly income could go up. Set Your Own Asset Allocation Using Core Funds With careful navigation of the SURS Voya website , you could opt out of the SURS Lifetime Income strategy and avoid the automatic shift to the SURS Secure Income Portfolio by placing your money in the SURS Core funds. Several of the core funds are listed here: US Core Bond Index Fund Multi Sector Bond Fund US Large Cap Equity Index Fund US Small-Mid Cap Equity Index Fund US REIT Index Fund Non US Equity Index Fund By moving your SURS RSP to lower cost core funds, you can avoid the higher fee Secure Income portfolio. If you prefer an 80/20 or 60/40 mix of stocks and bonds, you can maintain a static asset allocation until you annuitize at your chosen retirement age. Be aware that if you take this approach you will be at risk for the asset allocation you set and the available annuity rate at the time you begin to draw income. A Hybrid Approach RSP participants could consider maintaining 50% of your Retirement Savings Plan in the SURS Lifetime Income Strategy and allow that portion of your money to move 1/15th each year into the corresponding Secure Income Portfolio purchasing the guaranteed income. And you could take the remaining 50% of your Retirement Savings Plan and allocate it to the core funds with a mix of stocks, bonds and real estate that is in line with your preferred investment strategy and risk tolerance. Maintain Your Health Insurance If you are a SURS RSP participant over age 55 with more than 20 years of service, you can convert your retirement account to guaranteed income and receive paid lifetime health insurance using one of the options below. buy an annuity from Principal using 100% of your SURS RSP, or shift 50% or more of your SURS RSP into the Secure Income portfolio, or remain in the default strategy where 100% of your SURS RSP moves into the Secure Income portfolio. Take Informed Action Before deciding the best course of action for your SURS RSP participation, it’s a good idea to attend a SURS webinar on the Retirement Savings Plan. Participants may want to use the tools on the SURS website to forecast your retirement income and have a conversation with the folks at SURS and Alliance Bernstein before deciding on whether to participate 100%, 50%, or not at all, in the Secure Income Portfolio. Need Professional Advice If you need assistance allocating your core funds in the Retirement Savings Plan, Peak Wealth Planning is offering a $5,000 consultation to understand your complete financial picture including your savings outside of SURS, your spouse or partner’s situation, and your time horizon to retirement. Once we understand your full financial picture, we can advise you on whether to stay in the default Lifetime Income Strategy and Secure Income Portfolio or help you create an asset allocation by choosing the core funds appropriate to your personal risk tolerance and unique situation. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning offers personalized concierge services  to meet your wealth management needs, including  financial planning, investment management, ESOP diversification, retirement income, i nsurance, and estate planning. As a fee-based  financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states .

With half the year behind us, now is a great time to consider what the remainder of 2024 may hold. However, with inflation and economic uncertainty causing many of us to delay or cancel vacations, large purchases, and more, it can be challenging to know where to start. Here are a few tips to help make the rest of the year go as smoothly as possible. 1. Deflate Inflation Travel-related costs have skyrocketed, causing many to delay or cancel vacation plans. But are you overreacting to current headlines? Let's talk if you're a Peak Wealth client who is wavering on a scheduled trip or a home remodel. Continue learning more about how the federal reserve fights inflation and a strategy you can use to do the same. 2. Embrace Uncertainty If you’ve delayed a major purchase lately, you're not alone. Economic uncertainty has caused many to rethink their expenditures. When your net worth declines due to stock market fluctuations, the "wealth effect" tells consumers to rein in spending. Peak Wealth’s portfolio strategy takes into account periods of market volatility. Learn more about the trade offs of risk and return in our post on investment risk tolerance . 3. Revisit Goals During times of uncertainty, you might question the benefits of investing. To stay on course it’s good to focus on the outcomes you desire. Imagine living a certain lifestyle during retirement, paying for a child’s education, or building your vacation home. Put up photos that remind of your goals. This will inspire you to maintain behaviors that move you forward. By revisiting what’s important, you can ignore negative headlines and continue making progress toward your goals. Continue learning more about using goal-setting to realize your dreams with Peak Wealth Planning. 4. Practice Patience The need to take action can push even the most seasoned investors into questionable territory. Instead, try to take a long view of the markets. After all, daily market changes are the price to achieve long term stock returns. Remaining patient and taking a break from watching the markets closely may help weather the storm. It’s best to focus on the expected long term returns from your investments. Final thought. Are you comfortable with your progress towards future goals? Does the current economic condition have you rethinking your investment strategies? 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 .

Retiring early sounds like a dream come true -- cutting the cord of the 9:00 to 5:00 routine and having all the time in the world to pursue your passions. But before you take the plunge, it’s important to take a good, long look at the facts of early retirement. Retiring early requires enough income to be comfortable. Do you want 70% of your pre-retirement annual income, or does 85% sound better? Many folks find they spend the same amount of money they were earning in the years leading up to retirement. This may be the result of working through a ‘bucket list’ or supporting an elderly parent or struggling child. Consider the following 7 important items to make an early retirement a reality. Take stock of your current investments and how much you are saving each year. Estimate the size of your nest egg at retirement and determine how much you might be able to comfortably withdraw each year. Identify all sources of steady income you may have. This may include: Social Security, an annuity, rental property income, or a pension if you are lucky. Keep in mind that pensions, annuities, and social security often penalize you for retiring early. Understand the tax consequences of withdrawing funds from your retirement nest egg. Many folks overlook the impact of taxes on their retirement income. Health care costs tend to rise with age. You should evaluate health care costs if you’re retiring early. For some, COBRA may bridge that gap for a small amount of time. But it can be expensive. If retiring early is your dream, make sure you have a plan for health insurance prior to age 65 when you become eligible for Medicare. Forecast your expenses during retirement. Where will you live? Will you have a mortgage? How will you spend your time? Will you spend more or less money on travel or hobbies? Don’t forget to account for inflation and increased health insurance costs. Most importantly, make sure your retirement income adequately covers your forecasted expenses. And, be sure to have a cushion for unexpected surprises. It helps to have a strategy for retirement living. One study found that nearly 20% of those surveyed were bored in retirement. Finding a hobby or volunteering can help. Final thought. Like any other financial goal, achieving your vision of an early retirement requires a savings rate aligned with your time horizon. The best way to reach your financial goals is to stay focused on what you want for your future. Curious how you make the dream of early retirement a reality? If you have more than $2 million saved and need a financial plan to reach your goals, the Peak Wealth Planning team can assist. You may also be interested in learning: How much you can withdraw from retirement nest egg How to invest when you enter retirement - - - - - - - - - - - - - - - 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 .

Summer’s here, and the time is right for vacations, outdoor activities, and fun. It is also a great time to consider a few financial matters. Here are some questions to ask yourself mid-year. 1. Are your goals still the same for 2024? Have aging parents, the birth of a child, or a new job caused you to reconsider your priorities? Note any changes since the first of the year that may warrant reviewing your goals. Discuss these with your financial advisor. 2. Is your credit score looking good? Double-check your credit score for any red flags. This can be a good way to catch issues like identity theft early. Consider placing a fraud alert on your credit file. 3. Are your contributions on track? Consider increasing your contributions to any personal or workplace-sponsored retirement plans if it suits your goals. The longer you wait to save, the larger future contributions will be needed to hit your retirement nest egg goal. 4. Does your scheduled spending still make sense? Look at any impacts you've felt due to market volatility, family priorities, or income changes. Do your plans for the rest of the year align with reality? If these tips have you thinking, schedule a meeting with your financial advisor. Final thought. Are you comfortable with your progress towards 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. 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 .

One common issue with a mobile workforce is that many individuals who leave their job are faced with a decision about what to do with their 401(k) or 403(b) account. There are four choices to consider carefully with a 401(k) or 403(b) account from your previous employer. Choice 1: Leave It with Your Previous Employer You may choose to do nothing and leave your account in your previous employer’s 401(k) or 403(b) plan. However, if your account balance is under a certain amount, be aware that your ex-employer may elect to distribute the funds to you. There may be reasons to keep your 401(k) or 403(b) with your previous employer —such as investments that are low cost or have limited availability outside of the plan. Other reasons are to maintain certain creditor protections that are unique to qualified retirement plans, or to retain the ability to borrow from it, if the plan allows for such loans to ex-employees. The primary downside is that individuals can become disconnected from the old account and pay less attention to the ongoing management of its investments. Choice 2: Transfer to Your New Employer’s 401(k) Plan Provided your current employer’s 401(k) or 403(b) accepts the transfer of assets from a pre-existing 401(k) or 403(b), you may want to consider moving these assets to your new plan. The primary benefits to transferring are the convenience of consolidating your assets, retaining their strong creditor protections, and keeping them accessible via the plan’s loan feature . If the new plan has a competitive investment menu, many individuals prefer to transfer their account and make a full break with their former employer. Choice 3: Roll Over Assets to a Traditional Individual Retirement Account (IRA) Another choice is to roll assets over into a new or existing traditional IRA. It’s possible that a traditional IRA may provide some investment choices that may not exist in your new 401(k) plan. The drawback to this approach may be less creditor protection and the loss of access to these funds via a 401(k) or 403(b) loan feature. Remember, don’t feel rushed into making a decision. You have time to consider your choices and may want to seek professional guidance to answer any questions you may have. Choice 4: Cash out the account The last choice is to simply cash out of the account. However, if you choose to cash out, you may be required to pay ordinary income tax on the balance plus a 10% early withdrawal penalty if you are under age 59½. In addition, employers may hold onto 20% of your account balance to prepay the taxes you’ll owe. Think carefully before deciding to cash out a retirement plan. Aside from the costs of the early withdrawal penalty, there’s an additional opportunity cost in taking money out of an account that could potentially grow on a tax-deferred basis. For example, taking $10,000 out of a 401(k) instead of rolling over into an account earning an average of 8% in tax-deferred earnings could leave you $100,000 short after 30 years. Final thought. Have you recently changed jobs and need to decide how to handle your 401k or 403b? Do you need help to get organized and see how much income you can generate from multiple retirement accounts? 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 .

In the final days of 2022, Congress passed a new set of retirement rules designed to strengthen Americans’ financial readiness for retirement. SECURE 2.0 builds on earlier legislation that increased the age at which retirees must take required minimum distributions (RMDs) and allowed workplace savings plans to offer annuities. While SECURE 2.0 contains a myriad of provisions, highlights include increasing the age at which retirees must begin taking RMDs from IRA and 401(k) accounts, and changes to the size of catch-up contributions for older workers with workplace plans. Additional changes are meant to help younger people continue saving while paying off student debt, to make it easier to move accounts from employer to employer, and to enable people to save for emergencies within retirement accounts. New Distribution Rules Required minimum distribution (RMD) age will rise to 73 years in 2023. By far, one of the most critical changes was increasing the age at which owners of retirement accounts must begin taking RMDs. Further, starting in 2033, RMDs may begin at age 75. If you have already turned 72, you must continue taking distributions. However, if you are turning 72 this year and have already scheduled your withdrawal, we may want to revisit your approach. Access to funds. Plan participants can use retirement funds in an emergency without penalty or fees. For example, 2024 onward, an employee can take up to $1,000 from a retirement account for personal or family emergencies. Other emergency provisions exist for terminal illnesses and survivors of domestic abuse. Reduced penalty. Starting in 2023, if you miss an RMD for some reason, the penalty tax drops to 25 percent from 50 percent. If you promptly fix the mistake, the penalty may drop to 10 percent. New Accumulation Rules Emergency savings. Starting in 2024, employers could automatically enroll employees to set aside up to $2,500 of post-tax money in a separate emergency savings alongside their retirement accounts. Workers could defer money to the emergency savings accounts automatically through their payroll deduction. Up to 4 withdrawals a year would be tax- and penalty-free. This fund could encourage employees to save for short-term and unexpected expenses. Catch-up contributions. From January 1, 2025, investors aged 60 through 63 years can make annual catch-up contributions of up to $10,000 to workplace retirement plans. The catch-up amount for people aged 50 and older in 2023 is $7,500. However, the law applies certain stipulations to individuals with annual earnings more than $145,000. Automatic enrollment. In 2025, the Act requires employers to automatically enroll employees into workplace retirement plans. However, employees can choose to opt-out. Student loan matching. In 2024, companies can match employee student loan payments with retirement contributions. The rule change offers workers an extra incentive to save for retirement while paying off student loans. Revised Roth Rules 529 to a Roth. Starting in 2024, pending certain conditions, individuals can roll a 529 education savings plan into a Roth individual retirement account (IRA). Therefore, if your child receives a scholarship, goes to a less expensive school, or does not go to school, the money can get repositioned into a retirement account. However, rollovers are subject to the annual Roth IRA contribution limit. Roth IRA distributions must meet a five-year holding requirement and occur after age 59½ to qualify for the tax-free and penalty-free withdrawal of earnings. Tax-free and penalty-free withdrawals are also allowed under certain other circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals. SIMPLE and SEP. 2023 onward, employers can make Roth contributions to savings incentive match plans for employees (SIMPLE) or simplified employee pension (SEP) plans. Roth 401(k)s and Roth 403(b)s. The new legislation aligns the rules for Roth 401(k)s and Roth 401(b)s with Roth IRA rules. From 2024, the legislation no longer requires minimum distributions from Roth accounts in employer retirement plans. More Highlights Support for small businesses. In 2023, the new law will increase the credit to help with the administrative costs of setting up a retirement plan. The credit increases to 100 percent from 50 percent for businesses with less than 50 employees. By boosting the credit, lawmakers hope to remove one of the most significant barriers for small businesses offering a workplace plan. Qualified charitable donations (QCDs). 2023 onward, QCDs will adjust for inflation. The limit applies on an individual basis; therefore, for a married couple, each person who is 70½ years and older can make a QCD as long as it remains under the limit. The change in retirement rules does not mean adjusting your current strategy is appropriate. Each of your retirement assets plays a specific role in your overall financial strategy, so it’s important to see how all of your accounts work together. This article intends to give you a broad overview of SECURE 2.0. It is not intended as a substitute for real-life advice. If changes are appropriate, your trusted financial advisor can outline an approach and work with your tax and legal professionals, if applicable. Final thought. Did the new retirement planning rules spark a question about withdrawals? Or, are you pondering whether to save in a Roth account? Do you need to forecast how much to save each year and meet your goals? If you have questions or 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 .

Did the freedom that 2022 brought also bring an increase to your spending? Now is an excellent time to reevaluate your expenses and adjust your priorities. For most families, how you spend money is an indication of what is truly important. How you spend money is an indication of what is truly important. Begin this year with the mindset of prioritizing your financial wellness. In the spirit of National Mentoring Month, I have assembled 4 key exercises to start your year off right by prioritizing your financial wellness. Plug the Leaks in Your Expenses (you are here) Creating a Budget Tracking Your Net Worth How to Set Goals to Realize Your Dreams Let’s start with something you can do on a rainy or snowy afternoon with a cup of coffee or tea. Iced tea if you are in a sunny locale. Prioritize Your Financial Wellness by Plugging the Leaks in Your Monthly Expenditures Paying your bills on time makes up 35% of your FICO score calculation, and automating recurring expenses is an easy way to make sure it gets done. But it is also an easy way to forget what you are spending your money on. The month of January is a great time to reevaluate subscriptions or services you pay for monthly on a credit card. These run the gambit and can easily be hidden under the umbrella of other services if you aren’t reviewing your spending. For this exercise I challenge you to look through your spending for subscriptions you no longer need and for alternate services that may be less expensive in the long run. #1 Smart-Phone/Device Subscriptions The top 100 subscription apps worldwide earned $18.3 billion in revenue. How much are you spending annually? Is it on things you don’t really need? Apple Users: iTunes App Store Subscriptions Android Users: Google Play Subscriptions Look through your smart-phone apps and unsubscribe to the ones you don’t use. #2 Food and Home Essentials Grocery and homegood delivery services make life more convenient. But are you getting your dollar’s worth? Or are you spending more on things you don’t really use? Amazon Prime Subscriptions Grocery Services Meal Delivery Services Olive oil of the month club Wine/Coffee/Tea of the Month Club Autoship subscriptions bring a regular supply of the same products you use constantly — think coffee beans or paper towels. Can you save money by switching from Amazon Prime to Walmart for staple products? Do you really cook all of those meals being delivered weekly? #3 Utility and Banking Essential services help to keep you safe or make your life easier. Internet service Cable or satellite service Mobile phone service Road I.D. for bicyclists Roadside assistance Credit cards with an annual fee Cloud based virtual storage Evaluate whether bundling your subscriptions can save you money. Or whether you are paying for duplicate services. For example, many auto insurance policies include roadside assistance services. Are you making the most of your credit card perks, or can you cut up a few cards? #4 Streaming Services & other Entertainment Subscriptions Video services like Hulu, Netflix, HBOMax, Disney+, Showtime and AMC Streaming music services like Apple Music, Spotify, Pandora, and Prime Music Magazine subscriptions Consider whether you really view or play all of these entertainment services. #4 Home Security Services Home security services with a monthly fee Ring doorbell VPN network Data encryption services Consider asking for a discount or shopping for a less expensive alternative How to Take Action During January, I gather all my information for the year to prepare my income and expense report for the calendar year. As part of that process, I download a full year’s credit card statements. This report shows all of your spending by category for the calendar year. I challenge you to do that with your credit cards and identify one or more recurring charges that you can drop during 2023. After all, do you really need subscriptions to three different music services? Or can you live with one? You’d be surprised how recurring expenses can add up. You’d be surprised how recurring expenses can add up. During 2022, our internet service increased their monthly fees. I called and negotiated a $40 a month discount, saving $480 this year. I also dropped a couple magazine subscriptions because I enjoy visiting the Champaign Public Library to peruse the new fiction section and flip through a few magazines. I challenge you to see if you can save at least $1,000 during 2023 by eliminating or reducing some of your recurring subscription costs. 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 .

Many of you know that I’m a real estate investor at heart. At a young age, whenever I traveled with my family on vacation, I would always grab a copy of the local real estate books. I’d pour over the properties. More often than not, they seemed out of reach financially. I was 19 afterall. But, I tried to remind myself that we were only there for a week and it was better to enjoy the trip instead of obsessing over how to find, locate, and purchase a well priced property. Fast forward to today, I’ve found I’m not the only one that looks to move wherever I vacation. And as a trusted financial advisor, my clients come to me with their interest in owning a vacation home and its potential of becoming a good source of passive income. Have you ever dreamt of calling your favorite travel destination home? Before you purchase a beautiful bungalow or cozy cabin, here are 4 points to consider. 1. How often will the home be used? Do you plan to rent it out when it is unoccupied? Can family come and stay when you’re not there? Having a plan for how often you will use it and what will be happening to the property while you are not there are extremely important factors to consider. If you plan to use the home less than 30 days of the year, stick to renting other people's properties . Let them pay the taxes, maintenance, insurance and mortgage. 2. When are you making the decision to buy a second home? A second home can be a large expense and its purchase should not be made lightly. Consider your overall financial plan and how the goal of a vacation home fits within it. Have your financing well in place before you shop or sign any binding offers. Unless you are paying cash, a higher down payment may be required to secure a second or third property beyond your primary home, especially if its price increased dramatically beyond actual value during COVID's real estate hysteria. 3. What is the ongoing cost of owning a second home? Owning a second home isn’t just a second mortgage payment, it’s a second everything. You’ll need to consider the costs of furnishings, property insurance, property taxes, maintenance fees, and potential HOA fees. If you plan to rent the home out during the months you aren’t visiting the property, then you’ll need to anticipate additional costs, such as a property manager, increases to insurance, income tax, and replacements to damaged furnishings. 4. Anticipate the unexpected. Your vacation home is there year round, even if you aren’t. Have a plan to weather unanticipated events. You will need someone to look in on the property to check for frozen pipes or unforeseen problems. Final thought. We recommend that our clients rent for at least a month, three years in a row, in the same town before making a vacation home investment. The reality of transitioning from vacation mode to living local mode, may or may not be as appealing as you thought when you first arrived. If you’re curious what else there is to consider, your trusted financial professional may be able to provide resources to help answer your critical questions. Are you on track to meeting your goals for your retirement vision? Is establishing a legacy vacation property on your mind? Are you considering becoming a snowbird and looking to travel someplace warm during the winter months of retirement? If you have a net worth over $2 million and need help from a wealth manager, the Peak Wealth Planning team can assist you. Peak Wealth Planning specializes in helping high-net worth individuals and families plan for the future. You may also be interested in reading: Rent, Don’t Own, Your Vacation Home - - - - - - - - - - - - - - - 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 .

Air travel is stressful. While some stress may be unavoidable, like the long lines at security, other sources of stress, such as dealing with luggage check-in and baggage claim, can be minimized. If you think checking in luggage for your two-week vacation is inescapable, think again. Here are some ideas to help you get by with just a carry-on and by-pass the hassles (and fees) of checking your luggage. There are several strategies that may help you survive your next getaway with only carry-on luggage. Tip 1: Start with a Small Bag People tend to fill up the space allowed them. The bigger your suitcase, the more you will put into it. So get started by selecting a bag that will meet the carry-on criteria. Carry-on criteria depends on the airline you are traveling with. Below are the top domestic airlines with links to their carry-on requirements. American Airlines Southwest Airlines Delta Airlines United Airlines Alaska Airlines JetBlue Airways Spirit Frontier Hawaiian Airlines Tip 2: Use a Packing List A packing list will keep you in check and help you avoid the struggle of packing clothes “just in case”. Once you have made your list, lay down all the items on a flat surface like your floor or bed and rethink everything you have selected so far. Ask yourself the question “why do I need this item?”. If any of the answers start with “what if..”or “it might be useful for..”, you might not really need to bring it with you. Of course this is easier said than done, but avoid adding unnecessary items to your pack. Pro tip: After your trip, take an inventory of what you used and what you didn’t. Then create a packing list for future trips. Tip 3: Choose Practical and Versatile Clothes Remember the importance of “mix and matching”. Pack clothes that are versatile enough to wear for any occasion. Being able to mix and match pieces will help you to have a variety of outfits with fewer clothes. If you need to reuse individual articles, select fast-dry apparel. Protip: When traveling in the winter months, look for merino wool clothes. They are compact, light, and very easy to layer. These clothes will keep you warm in cold weather and won’t smell, making them super practical when traveling. The brand we recommend the most is Smartwool : although pricier, it really lasts a lifetime if well taken care of. Tip 4: Don’t Overpack Shoes Shoes take up a lot of room, so travel with 2 pairs of shoes each, maximum 3. Most travel requires a lot of walking. Consider the needs of your destination and what activities you plan to do. What works for us the best is to always bring a comfortable pair of sneakers (usually that’s the pair we will use on the flight), and sometimes a nice pair of shoes for special occasions. For beach destinations we would opt to bring a pair of sneakers and flip flops. In this case, sandals could be a good third pair if necessary. For winter destinations we would normally swap the sneakers for a pair of boots , and generally that would be enough. Tip 5: Don’t Bring What You Can Buy If you can buy items at your destination (e.g., shampoo and suntan lotion), then don’t take up valuable space with these items. Finally, consider not just what you pack, but how you pack it. Use space efficiently by rolling your clothes and using your shoes’ foot space for packing smaller items. Tip 6: Do Laundry at your Destination If you are planning a longer trip, consider doing your laundry in a laundromat or select an airbnb rental that has laundry onsite. By doing this you’ll avoid having to pack too many clothes, and you don’t even need to worry about bringing your own detergent with you! Our goal when planning longer trips is to pack enough for 7 days. We then schedule a morning or afternoon to do our laundry and reuse the same items again. Pro tip: Find a local laundromat that offers wash and fold services. Leave your clothes with them while you are out sightseeing for the day. In some locales, this can be surprisingly cost effective and makes you feel truly pampered. Final thought. Looking for other ways to breeze through security lines, save time and frustration? Joining a program like TSA PreCheck or Global Entry will make the airport experience more efficient and stress-free. Are you comfortable with your progress towards retirement? How about helping future generations meet their financial goals? If you have a net worth over $3 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 .

One of our favorite places to hike in Colorado is Cascade Creek Trail and Arapaho Pass Trail which encircle Monarch Lake in the Araphao National Recreation Area . This trail can be hiked in the summer or snow shoed in the winter time. There is mounting evidence from dozens of researchers that nature has benefits for both physical and psychological human well being. From a stroll through a local park to a day hiking in the wilderness, exposure to nature has been linked to lower stress, improved attention , better mood, and reduced risk of psychiatric disorders. And what better place to take in nature than in one of over 400 national parks found within the United States? Since its inception in 1916, the National Park Services have preserved the natural landscapes of our great nation, making it possible for generations of families, couples, and retirees to explore these stunning landscapes, marvel at the diverse wildlife, and discover the physical benefits of the great outdoors. But recent research suggests that the mental benefits could be even more important. The Cortisol Connection Have you ever had a stressful day? One that left you tired and irritable? Those feelings are most likely caused by the stress hormone, cortisol . Cortisol serves an essential purpose in the human body of helping to regulate your mood, motivation, and fear. However, when someone experiences sustained stress, their elevated levels of cortisol may greatly increase their risk of heart disease, depression, and even negatively impact their memory. Luckily, multiple studies show that connecting with nature for at least 20 minutes each day may be correlated to significantly lower cortisol levels. But the benefits don't stop after 20 minutes. In fact, longer durations spent in a natural environment may further enhance feelings of peace and wellbeing as well as increased mental performance. Your Favorite Annual Access Pass The American National Park system is considered by some to be one of the healthiest and financially smart ways to vacation. After all, purchasing an annual pass to the National Park gives you access to 423 sites. Annual Pass - $80 Lifetime Senior Pass - $80 Annual Senior Pass - $20 Lifetime Miliary Pass - Free Annual Volunteer Pass - Free for any volunteers that have logged 250 hours of service to the parks You can purchase your pass in person at any national park. You can also buy it online through the USGS store or from REI Co-op . The Recreation.Gov app will help you plan your next adventure, including applying for lotteries, booksing tours, and saving reservation details. A Prescription for Nature Even though locations like Yellowstone, Yosemite, Mt. Zion, and Bryce Canyon are the most-popular destinations for travelers, there is benefit in visiting smaller parks and nature preserves as well. For those who haven't hiked or camped much, these local areas can be a great way to get started. Even those with more than a few years of national park experience stand to benefit, both physically and mentally, from visiting one of their local wildlife areas. So, before you pack your bags and load up the camper, do yourself a favor and look into what your home state offers. You may discover that one of the best ways to stay happy, healthy, and sharp is closer than you think. Final thought. Jerome and I have made it a priority to spend as much time as reasonably possible outdoors in Colorado. This required years of saving and planning. One of our favorite places to hike in Colorado is Cascade Creek Trail and Arapaho Pass Trail which encircle Monarch Lake in the Araphao National Recreation Area . This trail can be hiked in the summer or snowshoed in the winter time. If you visit the western slopes of Colorado and would like to try this hike, Jerome and I would be pleased to be your guides for the day. Are you interested in being closer to your favorite National Park or Recreation Area? Consider aligning your living situation or your travel plans more closely with your financial resources. How we spend our money and time is a reflection of our values and priorities. 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 .

“Travel is the only thing you buy that makes you richer.” – Unknown If travel for you is less about escaping life and more about living it, then consider these vacation ideas. When Jerome and I travel, we enjoy lots of nature adventures and outdoor activities. Below you will find ideas for consideration. Road Trip the East Coast of Australia There may be no better way to experience the amazing continent of Australia than by driving along its east coast, which stretches from Melbourne in the south to Cairns to the north. This 2,500-mile drive carries you through rainforests, cities, mountains, and the outback, with the blue waters of the Pacific as a constant companion. Be sure to carve out time for the Great Barrier Reef, snorkeling, kayaking, and hiking along the way. Need more reasons to visit Australia? Check out this article on 10 Reasons to Visit . Need help planning your trip? Try Kimkim , which will connect you with a travel specialist to help plan your trip and make the most of your visit to the Land Down Under. Also, head to the app store! The NSW National Parks app has tons of information on exploring Australia’s greatest national parks. If you plan to camp, you may want to try the WikiCamps Australia app . It is considered the ultimate camping companion (with over 40,000 site listings) that works offline. Lastly, this is a fun resource for those wanting to “ speak like a local ”. Cruise the Northwest Passage: A Voyage from Greenland to Alaska For hundreds of years explorers tried, and failed, to find the fabled Northwest Passage. European explorers sought a navigable passage to Asia, but were blocked by ice or rough waters. Now, travelers can discover what eluded so many brave adventurers. Your journey on the Northwest Passage will begin in Greenland, sailing past its fjords and you’re on your way towards an adventure you’ll never forget. As you penetrate deep into the Arctic, you’ll scrape against icebergs and marvel at the harshness and sublime beauty at the top of the world. But, it’s not just ice. You’ll see the remains of explorations that came before you and the polar bears that call this home. Learn more about the Northwest Passage’s history and take a look at what this experience may include . Pilgrimage through Camino de Santiago Sometimes adventure is a journey to discover ourselves. The Camino de Santiago is a medieval pilgrimage through France, Spain, and Portugal to the Cathedral of Santiago de Compostela in northwest Spain. Stretching 500 miles over hilly terrain, this northern trek typically takes 35 days for the seasoned hiker, but may take several months depending on how you space your pilgrimage with rest days . It’s a mystical experience that gives you time to reflect on life, learn about yourself, and connect with kindred spirits. The trail is marked with scallop shells and yellow arrows, with scallop shells being the top momento for many adventurers. For those beginning this pilgrimage, picking up a Pilgrim’s Passport will be a wonderful way to collect stamps from the different stages of your journey. REI provides great advice on how to hike the Camino de Santiago. Learn more on Uncommon Path – An REI Co-op Publication . Luxury Safari in Botswana, Africa One of the most sparsely populated nations on earth, Botswana is dominated by the Kalahari Desert and the Okavango Delta , the world’s largest inland delta and now a UNESCO World Heritage site . The Okavango is the ideal spot to safari as its waters attract a richness of wildlife that is unmatched on the continent. The country’s focus on minimizing human impact means that your African experience will be both primal and transcendent. The best time to visit Botswana is during the dry season between May and October, when you can expect warm, sunny days (71.6°F to 95°C) and chilly nights. This is also when the water levels in the Okavango Delta are at their highest, creating the waterways and channels Botswana is famed for. Prepare for this adventure with National Geographic , Signature Safari , and World Expeditions . Final thought. Your interests will ultimately dictate your travel bucket list. For major excursions it’s a good idea to plan well ahead of time to balance your personal, financial and professional considerations. If you have financial questions about fulfilling your bucket list, speak with your financial advisor. 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 .

People commonly ask how much income can they generate from their assets. And as an employee-owner your ESOP plan could make up a large segment of your resources come retirement. When you enter retirement you will no longer have a standard paycheck to depend on. You’ll need to create income from your investments plus social security, annuities, and a pension if you are lucky to have one. Retirement income is money you withdraw monthly from your investments, or nest egg, over the next several decades to fund your lifestyle. Retirement income is money you withdraw monthly from your investments, or nest egg, over the next several decades to fund your lifestyle. This lifestyle requires a balance between paying for the needs of today with funding your goals for the future. If you do not achieve this balance, you risk outliving your money . One of the simplest ways to strike this balance is to set your annual retirement income based on the 4% rule. This strategy allows you to draw 4% of your investments annually while the rest of your investments continue to compound. It's relatively simple to estimate. Begin by adding up all of your investments. Then, identify 4% of this amount. This is what you can use to fund the first year of retirement. In subsequent years, if your investments are doing well, you might increase the dollar amount you withdraw to account for inflation. If your investments perform poorly, you might reduce your withdrawals for a period of time lowering your withdrawal rate from 4% to perhaps 3% until markets recover. By following this form ula, you should have a reasonable chance of not outliving your money during a 30-year retirement. The 4% withdrawal rate is not guaranteed to prevent you from running out of money, it is a guideline, and investments may lose value. An Example of the 4% Rule Here is an example of the amount of retirement income an ESOP, 401k and IRA could generate with the breakdown of income from each source. The 4% rule is one guideline for retirement spending. This means a properly managed investment could generate 4% of its value for many years. The 4% withdrawal rate is not guaranteed to prevent you from running out of money, it is a guideline, and investments may lose value. $400k IRA could generate $16,000 a year $400k 401k could generate $16,000 a year $3.2 million ESOP could generate $128,000 Most individuals want to replace their annual income in retirement. The 4% rule will help you find the right nest egg amount to begin your retirement. As illustrated above, if your investment portfolio includes $4 million, it could produce roughly $160,000 a year before tax. If your goal is to have $80k annually at retirement, then you’ll need to have at least $2 million in your portfolio. Risk The 4% Rule is a guideline that may or may not be appropriate for your unique situation. Using 4% as a withdrawal rate, if investments perform poorly, you could run out of money during retirement. Some folks purchase annuities or rely on social security as guaranteed income sources to complement withdrawals from their investment portfolio. Your withdrawal rate may vary based on your financial plan, accumulated wealth, and capacity for investment risk. The portfolio your financial advisor creates for you will impact your withdrawal rate. If your projected withdrawal rate does not meet your desired annual retirement income, you may be wondering what you could do to increase it. Several options include: Increase contributions to your 401k or IRA while you are still working Delay retirement to build a larger nest egg Delay taking social security to receive a higher payout Fund an annuity as one component of your retirement income plan Work with your financial advisor to change your investment portfolio Consider reducing your retirement budget by paying off your mortgage Downsize your home to reduce your retirement budget Diversification As A Strategy How your investment portfolios are managed is important for the security of your retirement income. The above example estimates a conservative 6% annual return. Your own investments may generate less or more, which would impact how long your investments will last with a 4% annual withdrawal rate. Diversification is an important strategy to keep your investments strong. This diversification comes in the form of where your money is invested as well as creating a cash reserve to smooth out market fluctuations. Other Sources of Retirement Income Your investment accounts may not be your only source of retirement income. You may have retirement income from the sources listed below. Sources of retirement income: Social Security A spouse or partner’s pension Real Estate income An annuity Inheritance Work with your financial advisor to identify and plan for multiple sources of retirement income. If there is a challenge with one source, another could help support your retirement budget. 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. 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 .

Think like a business owner because you are an employee owner. Your ESOP shares are held for your future benefit and the benefit of your coworkers. As you are working at your employee owned company, the value of your company stock is determined each year by an independent appraisal of the valuation of the company. This affects the value of your shares and your personal wealth. A key measure of company value is dependent on company performance or profits. This is where being an Employee Owner can have an impact on the value of the company. In simple terms profit is equal to revenue minus expenses. As an employee owner you can contribute to growing profits or reducing expenses depending on your role in the organization. profit = revenue - expenses Look for ways to increase revenue. The best and fastest way to increase your revenue is to focus on your customers. As an employee owner, if you are customer facing, you can grow sales by doing more customer visits and explaining the benefits of your products and services. By educating your customers on the “perceived value” of your product, your customers will desire your products/services even more. Finding new ways to solve customer problems can grow sales as well. And, providing good customer service can help retain customers who may be looking for a better deal. If you do not interact with customers directly, there are many steps you can take to improve company profitability and employee productivity. 1. Put value in employee education. Maximize your employees' skills by assessing the current usage of your employee's experience and skills. Then, provide opportunities and incentive for professional development. Employees utilizing their talents will be more effective and efficient, which will in turn increase productivity and save time. This will have a significant boost to the bottom line as well as a boost to employee morale. 2. Recruit talent. If you work in human resources, you may recruit a talented salesperson to grow the customer base of the company. Or, you may find a way to reduce costs of the company health insurance by creating an employee wellness program. 3. Take time to develop your brand story. Clients are more likely to work with a business they recognize. Develop your brand’s story and show what goes on behind the scenes. Take the time to form a solid relationship with your clients. Publicize your company on social media to educate customers and employees about your products and services. 4. Get the most out of your real estate. Analyze the current use of your physical space. Identify overflowing storage, too many supplies, piles of paper files, inefficient furniture and equipment placement. Centralize or consolidate the space necessary for production. Look for opportunities to lease unused space. Or, negotiate a rent reduction with your landlord. Look for ways to cut expenses. Eliminating excess costs is equivalent to earning revenue. By minimizing costs through increasing efficiency or reducing waste to the bottom line, the value of the company should increase. 1. Keep goals clear and focused. You cannot expect employees to be efficient if they don’t have a coherent goal to aim for. By having a clearly defined and achievable goal, employees will be more productive. Look for strategies to create goals within your department and share with your department head what is working for you. Your company may find your contributions making positive waves throughout its culture. 2. Recognize time is money. Efficiency with how you use your time on company hours can directly impact the value of the company. If you were able to trim two hours a month on the production of a report, that’s 24 hours saved every year. Automation, using the correct tools for the job, templates, and other time-saving tools will help increase efficiency while saving on the bottom line. 3. Reduce turnover. While recruiting talent increases revenue, reducing employee turnover decreases the bottom line. Hiring and training a new employee takes time and it impacts workflow. The best way to keep your best workers is to identify what is causing them to leave. Then, create a strategy to repair those pain points. 4. Reduce waste. The most effective way to reduce your company’s waste is to generate less in the first place. Waste prevention offers the greatest environmental benefits and cost savings. Depending on your department, your waste-saving efforts may look different. Here are a handful of ideas: Group shipments to customers to cut costs. Maintain computers to lengthen technology life while optimizing efficiency. Shop around and compare prices. Then ask your current supplier to match the most competitive rates. Go paperless wherever possible. Having an efficient digital organization process in place for internal document sharing will reduce paper waste and make it more efficient to find the information needed quickly. Modernize your advertising and marketing efforts by increasing social media use and reducing traditional marketing. Capture leads on platforms like Instagram, Facebook, Twitter, or YouTube. Use virtual meeting technology to reduce costs. This can minimize travel expenses (and time), eliminate the need for physical space, and reduce the amount of office essentials such as ink, printer paper, and postage required to run your company. Work together to build wealth. Active participation as an employee owner not only helps your company to grow and succeed. This brings value to your customer. And this, in turn, should add value to your company stock. And by adding value to your company stock you will grow your wealth and the wealth of your fellow employee owners. 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. 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 .

With nearly 4 billion people on social media worldwide, plus the risks of using online brokerage and bank accounts, the need for digital security has never been higher. While technology is becoming more secure in response to threats, there are some habits you can adopt to safeguard your digital life. 1. Evaluate your current security practices. Awareness is key when it comes to digital security. If you don’t stay informed and educated about the risks of cybercrime, you’ll never understand what to look for and how to protect yourself. Stop and take a moment to evaluate your current security measures. Are you using unique passwords and changing them regularly? Do you use two-factor authorization (2FA) whenever possible? What about a password manager? Do your research and put these measures in place. Best Practice: Automate software updates. Use the built-in privacy protection measures available to you on your mobile device . Don’t leave your passwords out in the open. Use two factor authentication wherever possible. 2. Think before you act. No matter how many measures you’ve put in place, your own personal actions can still put you at risk. Before clicking a link or posting on social media, consider the information you may be accessing or sharing. Links could lead you to installing malware or into a data collection pipeline. A hacker can use minor details to target you or your loved ones. Best Practice: Do not open emails from people you don’t know. Evaluate the email address of the sender, not just the name. Never open unknown attachments from links. Never use untrusted public Wi-Fi networks to conduct banking transactions. Do not post about vacations on social media. Final thought. Digital security isn’t a one-off task. It requires you to stay informed and approach it with the same importance as your home security. Don’t go on auto-pilot. Monitor your online accounts and devices. Make sure to change your passwords periodically, especially if you get an alert about unusual account activity. By staying informed about best practices, you can protect your family from unnecessary risks and gain peace of mind. 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 meets with clients in Champaign and Chicago, Illinois, as well as in Colorado near Denver, Winter Park, and Fraser. 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 .

When you picture the chapter of your life in retirement, what do you see? For some, it will be a time to travel and create memories with family. For others, it will be a time to start a new business or begin a charitable endeavor. Whatever you visualize for your retirement, writing it down and formatting a plan is your first step to making it a reality. Begin planning by answering the following 6 questions. 1. What do you absolutely need to accomplish? If you could only get four or five things done in retirement, what would they be? Answering this question might lead you to compile a “short list” of life goals, and while they may have nothing to do with money, the financial decisions you make may be integral to pursuing them. Time is your most valuable asset. 2. What would revitalize you? Some people retire with no particular goals at all. After weeks or months of respite, ambition may return. They start to think about what hobbies, second careers, new business ventures, or adventures they could embark on to make these years special. Others have known for decades what dreams they will follow. And yet, when the time to follow them arrives, those dreams may unfold differently than anticipated and may even be supplanted by new ones. In retirement, time is really your most valuable asset. Do you want to improve your community through volunteering or develop a new hobby like gardening ? With more free time and opportunity for reflection, you might find your old dreams giving way to new ones. Pro-Tip: Keep your brain and your body active during retirement. Your health is the most important resource you have to enjoy the time you have in retirement. 3. Who will you share your time with? Here is another profound choice you get to make in retirement. The common answer to this question for many retirees would be “family.” Today, we have nuclear families, blended families, extended families; some people think of their friends or their employees as family. You may decide that a second career to serve the community or a cause you care about is in your future. Or, you may have a nagging itch to start a small business. It’s important to consider how you will balance the risks and rewards of a business during retirement. 4. How much do you anticipate spending? We can’t control all retirement expenses, but we can manage some of them. The thought of downsizing your home may have crossed your mind. One benefit of downsizing is that it can potentially lead to no mortgage or a more manageable mortgage payment. Pro-Tip: Determine your retirement income replacement ratio. You may need anywhere from 55%–80% of your current income annually in retirement. Consider the following 3 questions: How Does My Spending Align With My Priorities? How Long Will My Money Last in Retirement? How Will My Withdrawal Rate Impact My Retirement Paycheck? 5. Could you leave a legacy? Many of us would like to give our kids or grandkids a good start in life, but leaving an inheritance can be trickier than many realize. Tax laws are constantly changing, and the strategies that worked years ago may have more limited benefits today. Keep in mind this article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax or legal professional before modifying any part of your overall estate strategy . Pro-Tip: If you’d like future generations to enjoy a common estate, like the family home or a vacation home – consider having the proceeds from your life insurance policy fund this legacy property . 6. How are you preparing for retirement? This is the most important question of all. If you feel you need to prepare more for the future or reexamine your existing strategy in light of recent changes or unfulfilled passions in your life, conferring with a financial professional experienced in retirement planning may offer some guidance. Evaluate your answers to the following questions: Does your retirement include guaranteed income streams? How much income will your investments generate during retirement? What returns should I anticipate from my investments? Do I have sufficient cash reserves to buffer my transition into retirement? 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 meets with clients in Champaign and Chicago, Illinois, as well as in Colorado near Denver, Winter Park, and Fraser. 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 .

Roughly 10,000 baby boomers retire daily. If you are within a year or two of retirement you may have concerns about a major downturn in the stock market. Many individuals delay retirement because they don’t fully appreciate stock market risk. There are ways to lower the impact of market risk on your retirement plans. When you shift from working and investing to relying on retirement distributions, the story can change. While you are saving in your 40’s and 50’s it can be easier to ignore the stock market. After all, you still have a steady paycheck and retirement may still be years in the future. When you are six months away from retirement you might be checking your portfolio daily and asking whether you have ‘enough’. It’s easy to fall into this pattern. After all, when most folks retire, they live predominantly off their investment portfolios and social security. There is a risk that the first year or two of retirement withdrawals from your nest egg may coincide with a period of declining stock prices. If you hold stocks for growth in your portfolio, you should work with your advisor to plan for this possibility. Due to Russia’s war with Ukraine, rising energy prices, and inflation concerns, US Stocks as measured by the S&P 500 Index fell 20% during the first 6 months of 2022. Imagine if you were set to retire and your $2 million nest egg dropped $400k to $1.6 million. How would that make you feel? If your portfolio fell 20% would you delay retirement? Prepare for stock meltdowns before you begin retirement. One strategy to reduce the risk of a stock market meltdown derailing your retirement is to use a Cash Bucket Strategy for your portfolio. This means having 3 years of cash or low risk bonds set aside to meet spending needs at the start of retirement. This prevents you from selling stocks during a downturn. In addition to a Cash Bucket, your retirement portfolio should include an Income Bucket and a Long Term Growth Bucket to combat inflation. Possible investments for each bucket are shown below. It’s important to work with your financial advisor and determine how many years you want in your cash and income buckets. This will depend on your fixed sources of income such as social security or an annuity, as well as your comfort with stock market fluctuations in your riskier Income and Long Term Growth buckets. One strategy to reduce the risk of a stock market downturn delaying your retirement is to have 3 years of cash or low risk bonds set aside to meet spending needs in your first few years of retirement. Consider creating an income bucket for years 4 to 9 of your retirement. This might include bonds with medium term maturities, Certificates of Deposit, dividend paying stocks, real estate investment trusts (REITs), and Master Limited Partnerships (MLPs). Your long term growth bucket will provide appreciation and help you overcome inflation. This might include riskier stocks, lower rated bonds, and possibly commodities. The specific investments you choose will depend on your risk tolerance and your financial advisor’s recommendations. If you are mentally ready to retire and have a large enough nest egg to retire, creating a retirement spending strategy that uses Cash, Income, and Growth buckets might be the recipe for you to avoid delaying retirement in the event of another market correction. Final thought. Are you planning to retire within the next few years? Do you need help creating a retirement Cash Bucket? Is your portfolio prepared to support your retirement spending needs? 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 .

Who among us wants to pay the IRS more taxes than we have to? While few may raise their hands, Americans regularly overpay because they fail to take tax deductions for which they are eligible. Let's take a quick look at the five most overlooked opportunities to manage your tax bill. 1. Reinvested Dividends When a mutual fund pays you a dividend or capital gains distribution, that income is a taxable event (unless the fund is held in a tax-deferred account, like an IRA). If you're like most fund owners, you reinvest these payments in additional shares of the fund. The tax trap lurks when you sell your mutual fund. If you fail to add the reinvested amounts back into the investment's cost basis, it can result in double taxation of those dividends . Mutual funds are sold only by prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money. 2. Out-of-Pocket Charity Keep a written record of cash donations including the date, the organization and the amount given. It's not just cash donations that are deductible. If you donate goods or use your personal car for charitable work, these are potential tax deductions . Keep records of the mileage traveled and dates you volunteered. Just be sure to get a receipt for any amount over $250. 3. State & Property Taxes Did you owe state taxes when you filed last year's tax returns? Or, did you pay property taxes? If you did, don't forget to include these payments as a deduction on your current year's tax return. There is currently a $10,000 cap on the state and local tax deduction.3 4. Medicare Premiums If you are self-employed (and not covered by an employer plan or your spouse's plan), you may be eligible to deduct premiums paid for Medicare Parts B and D, Medigap insurance, and Medicare Advantage Plan. This deduction is available regardless of whether you itemize deductions or not. 5. Income in Respect of a Decedent (IRD) If you've inherited an IRA, you may be able to deduct estate tax paid by the IRA owner from the taxes due on the withdrawals you take from the inherited account. The purpose of the IRD deduction is to avoid a “double” taxation effect, by providing that beneficiaries who inherited an IRA will receive an income tax deduction for any additional estate taxes that were caused by that pre-tax asset. The IRD deduction is claimed by the beneficiary of the IRA, at the time that distributions occur from the IRA (this ensures that the deduction applies at the same time that the IRA becomes taxable in the first place). Don’t Forget Investment Losses 2022 was a tough year for stocks and bonds. You may have taken losses in your investment accounts. Check with your financial advisor or accountant to see if you can offset gains you may have taken with losses. In addition, you may be able to write off up to $3,000 of losses above gains taken. There are specific rules regarding gains and losses that you should review, or check with your accountant. Unused losses may be carried forward to future years. You may also be interested in reading: How Tax-Loss Harvesting Works for Average Investors Final thought. Check with your financial advisor and your accountant if you need help identifying overlooked tax deductions. Many CPAs provide a questionnaire to help you recall overlooked items. Your financial advisor or CPA can review your investments and tax return to help identify missed opportunities. 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 .

By May 20, 2022, over 145 million taxpayers had dutifully filed their federal income tax returns. And they all made decisions about deductions and credits – whether or not they realized it. When you take the time to learn more about specific tax concepts, you may be able to put the tax code to work for you. A good place to start is with credits and deductions. Credits As tax credits are usually subtracted, dollar for dollar, from your actual tax liability, they potentially have greater leverage in reducing your tax burden than deductions. Tax credits typically have phase-out limits, so please consult a legal or tax professional for specific information regarding your individual situation. Here are a few tax credits that you may be eligible for: The Child Tax Credit is a federal tax credit for families with dependent children under age 17. The maximum credit is $2,000 per qualifying child, depending on your income level. The American Opportunity Credit provides a tax credit of up to $2,500 per eligible student for tuition costs for four years of post-high-school education. Those who have to pay someone to care for a child (under 13) or other dependent may be able to claim a tax credit for those qualifying expenses. The Child and Dependent Care Credit provides up to $4,000 for one qualifying individual or up to $8,000 for two or more qualifying individuals. Deductions Deductions are subtracted from your income before your taxes are calculated, and thus, may reduce the amount of money on which you are taxed, and by extension, your eventual tax liability. Like tax credits, deductions typically have phase-out limits, so consider consulting a legal or tax professional for specific information regarding your individual situation. Here are a few examples of deductions. Under certain limitations, contributions made to qualifying charitable organizations are deductible. In addition to cash contributions , you can potentially deduct the fair market value of any property you donate. And you may be able to write off out-of-pocket costs incurred while doing work for a charity. If certain qualifications are met that were updated in the 2017 Tax Cuts and Jobs Act, you may be able to deduct the mortgage interest you pay on a loan secured for your primary or secondary residence.6 Amounts set aside for retirement through a qualified retirement plan , such as an Individual Retirement Account, may be deducted. The 2023 contribution limit is $6,500, and if you are age 50 or older, the limit is $7,500. If you itemize your tax deductions, the state and local tax deduction allows you to deduct up to $10,000 of your state and local property taxes, as well as your state income or sales taxes. You may be able to deduct the amount of your medical and dental expenses that exceed 7.5% percent of your adjusted gross income. Standard Deduction or Itemize? The IRS has a handy guide to help you understand the difference between itemizing or taking the standard deduction. You should also consult your tax professional for his or her suggestions on this matter. If you do not itemize deductions, you are entitled to take the standard deduction on your taxes. For 2023 that amount is $13,850 for single individuals and $27,700 for those who are married and filing jointly. Final thought. Understanding credits and deductions is a critical building block to making the tax code work for you. But remember, the information in this article is not intended as tax or legal advice. And it may not be used for the purpose of avoiding any federal tax penalties. 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 .

Originally published on Kiplinger.com on Mar 29, 2023 . Bank concerns that began with Silicon Valley Bank have dominated the headlines since March 9. Below are suggestions to protect your cash and investments in a banking crisis, including some details about what happened with Silicon Valley Bank (SVB) and why. How did the bank collapse? Silicon Valley Bank benefited from the tech boom. It enjoyed a huge increase in deposits following COVID-19. Most deposits came from large venture capital-backed technology businesses. The money held on deposit with SVB tripled from 2019 through 2021 to $189 billion. The bank had to put this money to work. SVB invested deposits in long-term bonds. SVB purchased Treasury bonds with average earnings of about 1.8% plus a large amount of agency-guaranteed mortgage bonds maturing in 10 years or more. This saw positive returns for a while, as the bond earnings were above the deposit rate customers are paid, but it quickly unfolded. The Federal Reserve increased interest rates. This caused the amount SVB was paying to new depositors to increase to around 4% per annum. This was considerably beyond the income they were receiving on Treasury bonds. The bank began losing money. And the assets SVB held in long-term agency-guaranteed mortgage bonds fell in value due to the Fed’s rate increases , creating billions in losses . The downfall of Silicon Valley Bank. SVB tried to create liquidity on its balance sheet. They attempted this by selling long-term bonds. But since the long-term bonds had fallen in value, the proceeds they received resulted in losses. Word of these losses got out within the venture community. People became skittish and the majority attempted to withdraw their money, more than $42 billion on March 9. Unable to meet all depositor withdrawals, SVB was left with no liquidity and major losses, forcing it to default. A silent bank run. Overwhelming withdrawal requests from depositors seized operations at SVB. This was a silent bank run with most withdrawals requested electronically. There was not enough cash and liquid assets available for immediate sale to fund deposit outflows, without wiping out their equity capital base. Banks do not hold enough cash to fund 100% of their deposits. According to regulations, they’re allowed to invest around $10 for every dollar of deposits. These investments, which could be in the form of loans to customers or invested in publicly traded securities such as U.S. Treasuries or mortgage-backed securities (MBSs), are generally longer-term in nature and are not always able to be sold at a profit. This is clearly as Warren Buffet would say, a ‘see who’s swimming naked when the tide goes out’ moment. Protecting Depositors On March 12, the Federal Reserve, the FDIC and the U.S. Department of the Treasury addressed the solvency of insured and uninsured depositors at SVB. And President Biden assured Americans the banking system is sound. At Peak Wealth Planning, we believe the current administration will do everything possible to prevent bank collapses in the United States that hurt depositors. Unfortunately, equity holders and bondholders may not fare so well. The rapid rise in interest rates has caused short-term losses for the banking industry that are meaningful, bank industry capital levels should be well positioned to weather the storm. The response from the Federal Reserve , the FDIC and the U.S. Department of the Treasury has been coordinated and substantial to ameliorate concerns. Equity market volatility will likely remain elevated, reflecting the uncertainty around the banking sector, but most banks have more diversified sources of funding than SVB, including a higher number of accounts below $250,000, and lend to a wider range of industries. Protect Your Cash and Investments For investors, including retirees with near-term cash needs, consider migrating money market funds and short-term bond funds to Treasury-only options. Peter Newman, CFA , doesn’t feel the incremental yield pick-up from corporate credit risk—often concentrated in financials, is worthwhile in funds with average maturities inside of a three-year window. If you have bank deposits, confirm your bank is FDIC-insured . And make sure you are below the $250,000 FDIC insurance limit for individual accounts or $500,000 for joint accounts. If you need to spread deposits across multiple institutions, be sure to keep good records and properly title your accounts if you have a trust . If you have a brokerage account with cash you need within the next 36 months, ask your financial adviser to invest in a Treasury-only money market or bond fund. You might also consider buying CDs from different banks up to FDIC limits within a brokerage account. Another alternative is using a service like maxmyinterest.com , which spreads your money across multiple online savings accounts below the FDIC limit. For longer term investors, you may want to consider i-bonds as one part of your investment portfolio, especially if you are saving for college. There are pros and cons to each approach, and your financial adviser can assist you in choosing one that works best for you. Final thought. Do you have cash you may need to spend in the next three years? Are you confused by the myriad of options? If you have more than $2 million saved and need help deciding where to invest your cash, 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 .