Paces Ferry Wealth Advisors | Financial Planning Blog

What is IRMAA? How to Avoid Medicare Premium Surcharges in 2025

Written by Zachary Morris, CFP® on November 18, 2024.

In this video, I’ll explain everything you need to know about IRMAA (Income-Related Monthly Adjustment Amount), including how it affects your Medicare Part B and Medicare Part D premiums. IRMAA is a surcharge added to your Medicare premiums based on your Modified Adjusted Gross Income (MAGI), typically from two years prior. It’s important to understand how IRMAA is calculated because it can lead to higher Medicare premiums if your income exceeds certain thresholds.

You’ll learn the specific income levels that trigger IRMAA, and I’ll walk you through effective strategies to help manage your Medicare costs. I’ll also discuss how IRMAA is tied to your past income and how to handle this during your retirement years to minimize its financial impact. Plus, I’ll share a trick to appeal your IRMAA charge if you’ve experienced a life-changing event that has reduced your income, helping you save money on Medicare Part B and Medicare Part D premiums.

Understanding the Medicare IRMAA appeal process is critical if you’re looking to challenge your Medicare premiums. In this video, I’ll go over the steps you need to take to potentially lower your Medicare Part B premiums using the appeal process, to help you not pay more than you should.

Get the MOST Out of Your Charity Donations with These 3 Simple Strategies

Written by Zachary Morris, CFP® on November 9, 2024.

In this video, I’ll break down three powerful methods to give to charity that can maximize both your impact and potential tax benefits. From gifting stock and utilizing required minimum distributions (RMDs) to setting up a charitable gift fund, each approach has unique advantages that can make your contributions go further. Charitable giving isn’t just about financial generosity—it’s a strategic part of your financial plan that helps the causes you care about while benefiting your financial picture.

First, we’ll look at gifting appreciated stock to charity. This approach lets you avoid capital gains taxes on stock increases while offering the full value of the stock to charity, effectively increasing the impact of your gift. Gifting stock can be a tax-efficient way to contribute, especially if you’ve held appreciated stock for over a year.

Next, gifting required minimum distributions (RMDs) directly to charity can help you meet your annual distribution requirements while lowering your taxable income. Instead of receiving RMDs as income, this option allows you to direct them straight to a charity, helping you avoid the tax burden while fulfilling your giving goals.

Finally, using a charitable gift fund offers a flexible way to contribute over time. Charitable gift funds let you make a tax-deductible donation now and decide which charities to support later, giving you more control and flexibility in your giving plan. This can be particularly advantageous if you wish to donate in larger sums or support multiple charities at your own pace.

Through these strategies, you’ll gain insights into how each method can amplify your charitable contributions, optimize tax savings, and align with your long-term financial goals. By understanding the benefits of each approach, you’ll be equipped to make the most out of your charitable efforts.

Save on Taxes by Gifting Money Strategically!

Written by Zachary Morris, CFP® on November 1, 2024.

In this video, I’ll explain simple steps for transferring wealth to the next generation without the need for complex estate planning. By planning strategically, you can use these straightforward strategies to lower your taxable estate and allow your loved ones to benefit from your assets now, sharing in that impact while you’re still here. Effective wealth transfer is more than just inheritance—it’s about building a legacy that supports your family in meaningful ways during your lifetime.

We’ll discuss tax-efficient gifting strategies that make it easier to share your wealth without adding unnecessary tax burdens. Key topics include lifetime gift exemptions and how they can be used to maximize wealth transfer and allow assets to grow outside your estate, as well as simple strategies for transferring wealth to the next generation. Together, these approaches help your hard-earned assets make the greatest impact on your family’s future.

Giving Back: How Charitable Gift Planning Can Make a Difference

Written by Jeff Diamond on October 30, 2024.

Discover how charitable gift planning can help you make a meaningful impact this holiday season by aligning your philanthropy with your financial strategy.

As the holiday season approaches, many families reflect on ways to give back and support meaningful causes. This time of gratitude and connection offers a special opportunity to consider charitable gift planning. Thoughtful giving can help donors support impactful organizations in ways that align with both their financial goals and personal values. From tax-efficient strategies to legacy-building, charitable planning offers diverse ways to make a difference in the lives of others and within your own financial journey.

How Risk Management Helps Protect Your Financial Future

Written by Jeff Diamond on October 25, 2024.

Explore how financial risk management helps protect your financial future from market fluctuations, inflation, and unexpected events.

In the world of personal finance, much of the focus tends to be on growth—whether it’s growing your savings, investments, or business. However, an equally important conversation is how to help protect that growth. After all, what’s the value in building wealth if it’s vulnerable to risks that could potentially erode it? This is where financial risk management comes into play. Whether you’re preparing for retirement, planning for a child’s education, or working toward financial stability, managing risk can play a crucial role in your long-term financial strategy.

In this article, we’ll explore how risk management strategies can help guard your wealth against unexpected events, market fluctuations, and other potential challenges. Think of it as adding a layer of protection to the financial house you’ve spent time building. While growth is often the goal, conservation strategies are also an essential aspect of planning for your financial future.

Planning for Incapacity: Powers of Attorney and Living Trusts in Retirement

Written by Jeff Diamond on October 8, 2024.

incapacity planning, wealth management, living trusts, powers of attorney

As we enter our golden years, retirement often signals a shift in priorities—less focus on work and more on enjoying personal time and accumulated savings. However, another critical element of retirement planning often gets overlooked: preparing for potential incapacity. The possibility of being unable to manage your financial or medical affairs due to illness, injury, or cognitive decline is a reality many choose to avoid addressing. Although this is understandable, leaving these decisions unplanned can result in significant financial, legal, and emotional challenges for loved ones. Two essential legal tools that help address this issue are Powers of Attorney (POA) and Living Trusts. Both can help provide direction on managing your affairs if you become unable to make decisions for yourself.

Navigating the Complexities of Inheritance Tax: Strategies for More Efficient Wealth Transfer

Written by Jeff Diamond on September 30, 2024.

Explore strategies for managing inheritance tax and more efficiently transferring wealth to your heirs.

When it comes to leaving a legacy, few topics are as emotionally charged and complex as inheritance tax. As you plan to pass on your hard-earned wealth, the last thing you want is for your loved ones to face significant financial challenges. Unfortunately, inheritance tax is a reality that can diminish the wealth you intend to transfer. However, with thoughtful planning and strategic foresight, it is possible to navigate these complexities and manage the impact on your legacy. Let’s explore some key aspects of inheritance tax as well as some practical strategies to help you transfer your wealth more efficiently.

Choosing the Right Financial Advisor: 6 Frequent Pitfalls to Look Out For

Written by Zachary Morris, CFP® on September 16, 2024.

Discover the six most common mistakes people make when choosing the right financial advisor and learn how to avoid them.

Choosing the right financial advisor is one of the most important decisions you’ll make in your financial journey. The right advisor can help you build wealth, plan for the future, and help achieve your financial goals with confidence. However, selecting the wrong one can lead to costly mistakes and mismanagement of your hard-earned money. In this blog, we’ll explore some of the most common mistakes people make when choosing a financial advisor and offer tips to help you avoid these pitfalls, helping you make a decision that aligns with your financial aspirations.

Crafting a Retirement Exit Strategy: A Roadmap for Entrepreneurs

Written by Zachary Morris, CFP® on August 19, 2024.

Discover steps in retirement planning for entrepreneurs to help transition smoothly from business ownership to retirement.

Retirement is often viewed as the final chapter in one’s career, but for entrepreneurs, it signifies much more than just an end to work. It’s a major transition from the hustle and bustle of business ownership to a phase where you can really enjoy the fruits of your labor. Crafting a well-thought-out retirement exit strategy can help immensely with making this transition one that’s smooth and fulfilling. Whether you plan to sell your business, pass it on to a family member, or simply wind it down, the journey requires meticulous planning and foresight. Let’s explore some key steps to retirement planning for entrepreneurs that may help you on your journey.