*SPECIAL ADVERTISING SECTION*
Questions answered by our local Leading Business & Financial Professionals of 2023.
What exactly is a Retirement Distribution Specialist?
Most people spend 25 years of the working life accumulating assets in their IRA’s, 401(k)’s, 403(b)’s, 457’s, ROTHs and Brokerage Accounts. This represents a distinct period in your financial life when you’re trying to accumulate wealth. As you’re getting in or near retirement, the accumulation phase becomes less important and you tend to focus more
on preserving what you’ve worked so hard to accumulate and developing a strategy for the most efficient distribution for the next 25 years of your life. This requires careful planning and unique knowledge to not fall victim to the multiple dangers of the distribution phase such as longevity, inflation, taxes, market volatility, health risks and sequence of returns. This is what a Distribution Specialist does. Contact us today to take a closer look at your current or upcoming distributions, to see if you are on the right track! BrionHarris@PremierPlanningGroup.com or 443-837-2529.
Brion Harris; Premier Planning Group
What do you think makes your firm unique?
I believe our most unique offering is personalized 401(k) account management for individuals. This service helps clients manage what for most is their largest retirement asset—and we do so for a low monthly subscription fee—think Netflix for your employer retirement plan. We want to help investors fully utilize the tools they are given at their workplace, in order to help them efficiently plan for their retirement. We strive to make financial planning very approachable in an industry that can sometimes feel like quite the opposite.
Gregory Ostrowski, CFP®, CRPC®, BFA™; Managing Partner; Scarborough Capital Management
How do I make my money work for me?
While continued saving in a traditional savings account is needed for your short term goals and emergency spending; a longer, more disciplined approach can help you to truly build wealth. Investing on a consistent basis gives your money the chance to grow at rates not seen in savings accounts in recent history.
The S&P 500 index dates back to the 1920’s and has returned a historic annualized average return of 10.5% since its inception in 1957 through 2021. That time period has seen good markets, it has seen bad markets and it has seen ugly markets. However if you invested on a consistent basis, you have the potential for your money to grow faster than if it were in a savings account because of higher rates of return and compounding of your assets.
While I am not telling you to match your investments with the index, choosing the investments according to your goals and risk tolerance is key. Wealth building truly takes time, discipline and not trying to time the market. Once you have all that wealth built, then you can truly live off of it.
Indices mentioned are unmanaged and cannot be invested into directly.
Elizabeth Bennett, CFP®, MBA; Chesapeake Financial Planning & Tax Services, LLC
I am buying or selling a business. When do I need to engage an attorney?
As early as possible! You should certainly do so prior to agreeing to any terms, even if those terms are agreed upon informally in a term sheet or letter of intent. People are often too casual with the initial stages of negotiation and do not fully contemplate all of the terms, or the full scope of the proposed agreement. In those instances, things may become unnecessarily contentious during the final negotiations, resulting in an adverse buyer/seller relationship and excess attorneys’ fees. In my experience, initial contract negotiations often overlook crucial elements to the transaction including the aggregate tax effects of the structure, bulk sales considerations for asset purchases, or the specifics of how and when money will change hands after closing. Many business transactions have working capital true-ups, indemnifications, clawbacks, earnouts, and other items that can dramatically change the amounts paid or received by each party.
A business can be an enormous asset. Make sure you protect your investment as you consider buying a business, or selling yours.
James ‘Jay’ Walsh, Esq.; Managing Partner; Liff, Walsh & Simmons
Should I consider a Power of Attorney?
Ensuring that your assets are properly managed and preserved in the event that you are no longer able to do so yourself can be a major concern. A power of attorney is a legal instrument that delegates an individual’s legal authority to a trusted person to make decisions on his or her behalf. Whether it be in the short term while an individual is out of the country or for an extended period due to physical or mental incapacity, powers of attorney can be an incredible tool to help individuals manage their property and ensure their well-being.
Jonathan McGowan, Esq; Partner; Liff, Walsh & Simmons
Is the way retirees should invest to protect their portfolios changing?
Yes. Things are always evolving. Music has gone from vinyl to cassette to CDs to MP3 players to Digital Streaming. The telephone has gone from rotary to push-button to cordless to cell phone to smartphone. Investing has evolved similarly as well. The problem is many retirees portfolios look like the vinyl or the rotary phone. Being diversified* today means you need to be diversified by the company, by product, by tax benefit, by asset class and with real assets vs. paper assets. This strategy is called Advance and Protect. Contact us today to look at additional options to diversify your portfolio! BrionHarris@PremierPlanningGroup.com or 443-837-2529.
*A diversified portfolio does not assure a profit or protect against loss in a declining market.
Brion Harris; Premier Planning Group
How Can Financial Planning Help Me?
Long term life goals require a road map! A Financial Plan developed by a Certified Financial Planner (CFP®) professional can help you create a personal budget, control expenses, and develop and implement plans for retirement, education, and/or wealth protection. A CFP® professional can also offer expertise in risk management, including strategies involving life and longterm care insurance, health insurance, tax planning and managing your asset portfolio based on your goals. Establishing a financial plan not only make good sense but it offers you peace of mind and confidence to be able to reach your goals.
Chris Parks, CFP® LPL Financial Advisor, Wye Financial Partners
