Financial Clarity for Doctors

Secure Act 2.0 - Some Highlights

In this episode, Corey and Rachelle discuss a few retirement savings and tax law changes.  One thing we like to say in planning, is that tax laws change all the time.  This is one example of how those changes can affect you and your retirement savings.

This was a large part of a huge spending bill, and the below notes are not intended to be comprehensive.  There are just a few tidbits we thought our listeners might find interesting.

Highlights from the bill:

• For small business setting up a 401k, you can now apply for a tax credit of up to 100% of the startup costs (an increase from 50%).
• Employer matching contributions can now be Roth as well as pre-tax. If Roth, the dollars would be taxable to the employee at the time of contribution.
• Employers can now match student loan payments into a 401k or 403b.
• The deadline to set up a Solo 401k will now be the tax filing deadline instead of the end of the calendar year.
• You can now make Roth contributions into both SEP IRAs and SIMPLE IRAs.
• There will be additional opportunities for “catch-up” contributions. These are increased contribution limits for older retirement plan savers.
• Required minimum contributions will not be required until you are age 75 starting in 2033.
• For 529 plans that have been established for more than 15 years, can roll up to $35,000 total from the 529 into the beneficiary’s Roth IRA.
• And so much more! Listen to the episode for a few more tidbits.

 

For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance 

 

Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Finity Group, LLC and Cambridge are not affiliated. Cambridge does not offer tax or legal advice.

Blog: Retirement Planning for Doctors: How Much Do I Need to Retire?

In this week's blog, we walk through some ways to estimate how much money a doctor needs to retire.  

Our weekly blog posts that can be found at www.theFinityGroup.com/blog, where you can also sign up for our newsletter to have our weekly blog post delivered directly to your inbox.

Leaving a Legacy

In this episode, Corey and Rachelle discuss how to approach leaving money behind, whether that is for family, charitable causes, or the government.  Just kidding!  The goal is for YOU to be able to direct where your wealth goes, which can include minimizing taxes if possible.

What are your goals and your family’s goals for passing on wealth?

• Make sure to consider what you really want in terms of legacy and estate planning. Passing on wealth is not for everyone!  Your goal could be to spend every cent you have and enjoy life to the fullest, and that’s okay too.
• If your goal is to leave a legacy, then reassess these goals periodically. Things change over time.

If you’ve decided this is an important goal for you:

• Spend conservatively and save A LOT. Remember, you want to have more than enough for your own retirement.
• Using Roth and brokerage accounts can be very helpful for passing on wealth in a tax-advantaged way.
  • If you inherit a Roth account, you do not pay taxes on the growth if you take qualified withdrawals.
  • Taxable brokerage accounts get a “step up in basis” when inherited. The dollar amount that is exempt from taxes is not the purchase price, but the price when the investments are inherited.
• Think about gifting money (at least up to the gift tax exclusion amount) during your life.
• Make estate planning a priority! Talk to an attorney to make sure your wishes are very clear and to potentially help manage taxes.
• Consider charitable donations. These can be made in a variety of ways to reduce your tax burden during life and on your estate.

For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance 

 

Blog: 23 Financial Goals for 2023

In this week's blog, we list 23 financial goals you can shoot for in 2023.  Don't worry about accomplishing them all!  Pick several to commit to and go from there!

Our weekly blog posts that can be found at www.theFinityGroup.com/blog, where you can also sign up for our newsletter to have our weekly blog post delivered directly to your inbox.

Save Taxes With a Cash Balance Plan

In this episode, Corey and Rachelle breakdown cash balance retirement plans.  What are they and are they a good fit for you?

What the heck is a cash balance plan?

• Another pre-tax retirement plan, meaning you do not pay taxes on the money you deposit now, but you do pay taxes on withdrawals in the future.

• Many pre-tax retirement plans are defined contribution plans (401k, IRA, SEP) meaning that there is a specific contribution amount.

• Cash balance plans are different because the goal is to provide a “defined benefit” similar to an old-school pension.

• Many people terminate the plan and roll the balance into an IRA instead of using them like a pension.

 

You can potentially put a LOT of money into them, but you can’t set them up just anywhere.  A cash balance plan may be a good fit for you if:

• You are self-employed and want to contribute more to retirement than the IRS plan maximum for a 401k or SEP IRA.

• You are a business owner who wants to contribute more to retirement AND you don’t mind setting aside some funds for your employees as well.

 

There are lots of rules with these and costs as well.  It can be a great way to save a lot of money for retirement while saving on taxes, but proceed cautiously and learn as much as you can first.

For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance 

 

Lessons from a Retired Surgeon

This episode is an extra special one where Corey interviews his dad, Dr. Kenneth Janoff, a retired surgeon about his career in medicine and achieving financial independence. 

He shares stories from growing up in New Jersey, going to medical school at Temple University, what it was like transitioning from med school in North Philly to residency in Portland, OR in the late 70’s. He shares his experience starting his own practice straight out of fellowship and successfully running that practice for over 30 years.  They also talk about how medicine has changed over the past four decades.

They get into what started his interest in business and investing, some of his investment successes (and misses), contributing factors to achieving financial independence (such as prioritizing saving and investing early on), and offer advice for how to prepare for an enjoyable retirement.

He wraps up the conversation with a story about getting disabled midway through his career (fortunately it wasn’t permanent) and the importance of disability insurance. 

For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance 

Blog: 5 Steps to Achieving Financial Independence

In this week's blog, we list five important actions to take in order to become financially independent one day.  

Our weekly blog posts that can be found at www.theFinityGroup.com/blog, where you can also sign up for our newsletter to have our weekly blog post delivered directly to your inbox.

Investing When Markets Are Down

How to Approach Investing When Markets Are Down

In this episode, Corey and Rachelle take a slightly different approach to talking about the stock market this year.  There have been many ups and downs over 2022, but as investors, how do we deal with that volatility?  What should we do differently, if anything?

In some situations, doing nothing is the best option:

• First, unless you have a specific reason to do so, now is not the time to exit the stock market. Selling investments when they are down locks in losses.  If you are a long-term investor, it’s unlikely that makes sense for you.
• Quit looking at things every day! We all know things have been messy this year.  Looking at your accounts every day will not change that, but will increase your stress level.  You should be reviewing your accounts every few months, but for long-term investors it is generally not necessary to do that daily.

 

There are a just a couple more proactive things you can consider as well:

• You may want to consider rebalancing back to your original target allocation. When the market is volatile, your allocation can become very skewed to any areas of the market that have outperformed relative to others.  Not the same as selling out of your investments entirely.
• Think about investing “extra” money you have on the sidelines. If you are sitting on money you do not need in savings (NOT your emergency fund) put that money to work for you.  This is always true, but especially so when the market is down.  Treat this like a sale on investments.
• If you have money in a taxable brokerage account, you can also consider doing some tax-loss harvesting. More on this topic was recorded in Episode 29 on Tax Loss Harvesting.

 

If the market is making you nervous, do your best to avoid the constant doom and gloom financial reporting.  And keep in mind your time horizon.  If you are not retiring for 20 or 30 years, it doesn’t make sense to stress out a bunch about the stock market right now.

For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance 

 

Blog: The Power of Compound Interest

In this week's blog, we discuss the power of compound interest, how it can benefit you if you get it working in your favor, and how it can potentially hurt you if you get on the wrong side of it.  

Our weekly blog posts that can be found at www.theFinityGroup.com/blog, where you can also sign up for our newsletter to have our weekly blog post delivered directly to your inbox.

Blog: How to Start an IRA

In this week's blog, we discuss what an IRA is, benefits of using one for retirement savings, and how to set one up.  

Our weekly blog posts that can be found at www.theFinityGroup.com/blog, where you can also sign up for our newsletter to have our weekly blog post delivered directly to your inbox.