Beginning in March 2022, the Federal Reserve began raising interest rates in an attempt to mitigate high inflation. Over the course of the last two years, the Federal Reserve has raised interest rates 11 times resulting in targeted interest rates that are 5.25% higher than they were at the beginning of 2022. In this episode, we discuss how the rapid increase in interest rates has resulted in certificates of deposit (CDs) paying over 5% to savers. With the increase in CD rates, the advertisement of CD specials has exploded with nearly every bank marketing their attractive CD rates to the public. Naturally, this has led many individuals to ask the question whether CDs are right for them. If you are interested in learning about CDs and points to consider when determining if they are appropriate for your situation as well as alternatives that may make more sense in specific cases, we think you’ll enjoy this episode. Thanks for listening! For more details on certificates of deposit, check out our blog post covering the same topic at https://pw-wm.com/learn/investing/cd-rates-are-over-5-should-you-buy-them/.

As year-end approaches and individuals begin considering their charitable giving goals for 2023, it is important to consider not just the charities to support, but also the most tax-efficient way to contribute. In this episode, we discuss how qualified charitable distributions (QCDs) directly from your IRA to charity may be the most tax efficient way for individuals who are at least age 70 ½ to fulfill their charitable goals. Since QCDs are excluded from income, individuals are able to lower their taxable income and reduce their tax obligation – even without itemizing their deductions. If you are interested in learning how to minimize your tax burden and maximize the impact of your charitable giving, we think you’ll enjoy this episode. Thanks for listening! For more details on qualified charitable distributions, check out our blog post covering the same topic at https://pw-wm.com/learn/tax-planning/using-your-ira-for-tax-efficient-charitable-giving/.

With the challenges that come from creating and running a small business, most small business owners spend a majority of their time dealing with the day-to-day tasks necessary to keep the business moving forward. This often leaves little time to consider the various retirement plans that are available which can provide significant tax advantages to the small business owners and their employees. In this episode, we discuss the various small business plans available to small business owners and how implementing the right retirement plan can accelerate their wealth accumulation by hundreds of thousands and potentially millions of dollars over their career. If you are interested in learning how small business retirement plans can help you accelerate your wealth accumulation, maximize your retirement savings, and minimize your tax burden, we think you’ll enjoy this episode. Thanks for listening! For more details on small business retirement plans, check out our blog post covering the same topic at https://pw-wm.com/learn/tax-planning/maximizing-small-business-retirement-plans/.

One year ago, we highlighted a high return and low risk investment, Series I Savings Bonds (I Bonds), which were yielding an annualized 9.62% due to the high inflation rate in the United States. Since then, the inflation rate has decreased and the inflation component of the I Bond yield has declined to 3.38% as of May 1, 2023. As a result, investors have redeemed over $1.2 billion since the beginning of May. In this episode, we discuss the one-year return of I Bonds for those who invested last fall and consider whether now is the right time to redeem. If you are interested in revisiting I Bonds to see how the investment turned out and whether they remain a good option going forward, we think you’ll enjoy this episode. Thanks for listening! For more detail about our I Bond discussion, check out our blog post covering the same topic at https://pw-wm.com/learn/investing/revisiting-i-bonds-is-it-time-to-redeem/.

Will you need long-term care during your lifetime? If so, what will it cost and how will you pay for it? As individuals progress through retirement, the possibility of needing long-term care becomes an important consideration. The cost of long-term care can be substantial and a common fear for many individuals is losing their life savings in the event that they need assistance in the future. In this episode, we discuss the cost of long-term care as well as the considerations individuals should be thinking about before they actually need assistance. Those who plan ahead are most likely to be prepared and will have the best chance to effectively navigate the expensive landscape of long-term care costs. If you are interested in learning more about the cost of long-term care and the considerations you should be thinking about now, we think you will enjoy this episode. Thanks for listening! For more detail about planning for and navigating the cost of long-term care, check out our blog post covering the same topic at https://pw-wm.com/learn/financial-planning/are-you-prepared-for-long-term-care/

What does it take to be wealthy? While each person may have a different financial threshold in mind, most people have a similar mental picture of what wealthy looks like. They see a fancy home, nice cars, and lavish vacations enjoyed by someone who sold their company for a fortune or received a significant inheritance. This month we are discussing how most individuals have accumulated their wealth and how you can too! The research shows that most millionaires did not get lucky, strike it rich, or receive a substantial inheritance. They accumulated their wealth gradually over a long period of time. They lived on less than they earned, they saved consistently over time, and they let their investments ride regardless of market conditions. If you are interested in learning the simple and attainable strategies that others have used to create long-term wealth and how you can too, we think you will enjoy this episode. Thanks for listening! For more detail about building wealth, check out our blog post covering the same topic at https://pw-wm.com/learn/investing/the-misperception-of-wealth/

Over the past decade, real estate values have soared. Nearly everyone knows someone who has “made a fortune” in real estate and touts it as a “can’t miss” opportunity. While real estate is a valuable addition to many investment portfolios, all real estate is not created equal. Real estate is an industry just like anything else, and those who have devoted careers to it are much more likely to succeed than those who simply dabble with the hope of making a quick return. Since most individuals with a full-time career in another field do not have the time or desire to develop the skills to succeed in real estate, the majority of individuals are best served by passively investing in real estate deals led by professional real estate sponsors. In this episode, we discuss the key factors to evaluating and identifying quality sponsors that create long-term value for their investors. If you are interested in private real estate investing, we think you’ll enjoy this episode. Thanks for listening! For those who are interested in even more detail about evaluating real estate sponsors, check out our blog post covering the same topic at https://pw-wm.com/learn/investing/private-real-estate-investing-evaluating-sponsors/.

Health savings accounts (HSAs) have been around for nearly two decades. First introduced in 2004, HSAs provide a way for Americans to temper the bite of significant health care costs by creating a triple tax benefit through an upfront tax deduction when contributions are made, tax-free growth over time, and tax-free distributions for qualified medical expenses. In this episode, we discuss who is eligible to contribute to an HSA account and how to maximize the tax benefits to reduce taxes and take some of the bite out of future health care costs. If you are interested in learning how to maximize your tax savings today and save for the inevitable rising cost of health care, we think you’ll enjoy this episode. Thanks for listening! For those who are interested in even more detail about tax advantages available through health savings accounts, check out our blog post covering the same topic at https://pw-wm.com/learn/tax-planning/triple-tax-savings-with-health-savings-accounts/.

March 2023 has seen the start (and hopefully the end?) of a financial industry crisis that has captivated Wall Street and many Americans. It all started on Wednesday, March 8th when Silicon Valley Bank in Santa Clara, CA announced it needed to raise capital to shore up losses on its available for sale securities portfolio. What followed next amounted to the 2nd and 3rd largest bank collapses in American history. In this episode, we discuss the failure of Silicon Valley Bank and Signature Bank as well as the best way for individuals to ensure their cash balances are protected. If you are interested in learning how to effectively manage your cash to ensure it is both secure and earning a fair return, we think you’ll enjoy this episode. Thanks for listening! For those who are interested in even more detail about managing your cash balances in light of the current challenges in the banking industry, check out our blog post covering the same topic at https://pw-wm.com/learn/financial-planning/banking-crisis-are-your-assets-safe/.

Mutual funds have long provided a simple way for Americans to diversify their assets and invest for the future. The primary attraction of mutual funds has been the ease of diversification and affordable access to professional managers which has helped the US mutual fund industry grow to control over $20 trillion in assets. However, what many people don’t understand is how owning mutual funds in taxable brokerage accounts often results in capital gain distributions that increase their tax burden and reduce the long-term growth of their portfolio. In this episode, we discuss the challenges that investors face when investing in mutual funds and what options they have to build portfolios that increase the likelihood of achieving the best long-term results. If you are interested in maximizing the tax efficiency of your investment portfolio, we think you’ll enjoy this episode. Thanks for listening! For those who are interested in even more detail about tax efficient investing and minimizing capital gain distributions, check out our blog post covering the same topic at https://pw-wm.com/learn/tax-planning/mutual-fund-tax-surprise-capital-gain-distributions/.