Financial literacy is foundational to a comfortable financial future. The advisors at Wealth Enhancement Group are devoted to helping you improve your financial literacy, which is why they go far and wide to share their craft with readers like you. This month's collection of media appearances features our advisors in national outlets including USA Today, CoinChapter, and Fortune. Read on to see what our advisors are most excited to talk about.
How RMDs Fit into Your Retirement Equation
Required Minimum Distributions (RMDs) are how the IRS collects tax from American retirement accounts, and neglecting to plan for them can have considerable consequences. “Taxes are only paid once distributions are made,” says Bob Welch, Wealth Enhancement Group Senior Vice President & Financial Advisor, in this USA Today article. “If there were no RMDs in place," he continues, "the problem, as the IRS sees it, is that people could accumulate substantial retirement assets and defer taxation indefinitely.”
The IRS uniform life table, or RMD table, can help you calculate your annual RMD. You can find a copy of this table in the article linked above. If you have questions regarding your RMD calculation, or if you're afraid of withdrawing more than you need to from your retirement accounts, consult with a financial advisor.
Optimizing Social Security Benefits
Planning for your RMDs goes hand-in-hand with optimizing your Social Security benefit. When it comes to Social Security, if you’re able, waiting is the name of the game. The longer you wait to begin receiving your benefit, the larger that benefit will be.
“To realize the maximum benefit, this would require waiting until age 70 to begin taking benefits and consistently reaching the maximum eligible earnings,” says Wealth Enhancement Group Senior Vice President & Financial Advisor Brian Kuhn. Learn more about the nuances of Social Security in this USA Today article.
Impacts of Banking Chaos, from Commercial Real Estate to Crypto
Continued rising rates from the Federal Reserve cause a glut of unrealized losses on bank balance sheets that threaten their solvency. These rate hikes also impact a variety of asset classes, as the ramifications of more expensive borrowing trickle through the economy.
According to Ayako Yoshioka, Senior Portfolio Manager at Wealth Enhancement Group, "The additional stress that some [banks] are seeing in the commercial real estate market may continue to reverberate through the system. We expect volatility in the sector, as well as in markets in general, to remain elevated in the near term." Read more in this CoinChapter article, Federal Reserve Rate Decision Looms on Stock, Crypto amid Banking Crisis.
Smart Money Habits Start with Vision
“When it comes to improving your financial situation, the first step is to have a clear vision of your goals and what your ideal financial future looks like,” says Philip Gibson, Vice President & Financial Advisor at Wealth Enhancement Group, in this Fortune Recommends article. “Once you have a sense of your objectives, you can start taking action to make them a reality.”
The article details four smart money habits, including keeping a running list of your financial goals, having a routine financial checkup, using a budgeting system, and working with a professional to take the guesswork out of your finances.
Helping You Improve Your Financial Acumen
We hope you find these insights helpful and informative. At Wealth Enhancement Group, we're committed to providing our clients with the best possible financial guidance and support. Our goal is to apply our exceptional craft to your financial plan, and we're eager to get started. If you'd like help developing a personalized, long-term financial plan, reach out to an experienced Wealth Enhancement Group financial advisor today for a free, no-obligation introductory meeting.