Paces Ferry Wealth Advisors | Financial Planning Blog

Emergency Funds: Why Everyone – Even High-Income Earners – Should Have One

Written by Zachary Morris, CFP® on August 23, 2021.

There’s a Reason so Many Experts Recommend this Safety Net

We’ve all heard the prevailing wisdom that everyone should have an emergency fund, but is it necessary for physicians, lawyers, and other high-income earners? This is a bit of a divisive question, with some financial experts continuing to push the dogma of having a cash reserve of at least three months’ salary set aside somewhere, and others making a sophisticated argument that an emergency fund doesn’t truly serve high-income earners.

It’s true that not every person’s financial needs are the same, but it’s still important for everyone to build and maintain an emergency fund regardless of income or assets.

Wherever you are in your career and financial journey, having a cash reserve set aside for a rainy day serves three important purposes.

Legacy Planning: Five Ways to Help Your Heirs Preserve and Grow their Inheritance

Written by Jeff Diamond, AIF® on July 12, 2021.

Don’t Skip this Often-Overlooked Step as You Plan the Disposition of Your Estate

Legacy planning, also called estate planning, is a long-term process. In fact, you’ve probably been engaged in it for much of your adult life, even if you didn’t realize it in the moment. Things like taking out a life insurance policy and naming beneficiaries on your retirement accounts are important steps in planning the eventual disposition of your estate and ensuring those you care about will be financially secure.

On the formal side of things, it’s important that you meet with an estate planning attorney, write a legal will, draft a durable power of attorney, and execute an advanced health care directive. In this article, however, we will examine an important legacy planning step that is too often overlooked: preparing your heirs to receive their inheritance – and helping them to preserve and grow it, as well.

5 Tips for Physicians: Paying Off Student Loan Debt

Written by Zachary Morris, CFP® on June 28, 2021.

Medical School Comes with a Hefty Price Tag, but Here’s How to Tackle It

Though medical school can be a fantastic investment, it’s no secret that it can be incredibly expensive. Most med school students believe this investment to be worth it due to the estimated income of most healthcare professionals. However, it comes at a high cost. Statistics show that the average student loan debt for college students is $32,731, whereas the average medical school debt is $201,490 – quite a drastic difference.

Having large amounts of debt can seriously impact your finances, as well as your emotional and physical well-being. It can increase stress and tension and contribute to things such as poor judgment, inability to focus, and habitual procrastination. These are obviously not conducive to establishing a thriving medical career.

If you’re a medical student or doctor looking to protect your net worth and quality of life, it’s imperative that you establish a savvy plan for paying off your student loans. Here are five tips to get you started.

Should You Rent or Buy a Home When You’re Retired?

Written by Zachary Morris, CFP® on June 16, 2021.

Why More Retirees Are Enjoying the Perks of Renting

One of the biggest financial questions near-retirees must answer is what their living situation will look like in retirement. Many choose to move closer to friends or family, while others move simply to downsize. In addition to location and square footage, however, it’s also important to make the decision between renting or buying. Though it may come as a surprise, renting in retirement has become a growing trend. In fact, since 2005, the largest growing group of renters has been people in their fifties and sixties.

Renting may be a growing trend, but how do you know if this is the right decision for you? There are several factors, both emotional and financial, that you’ll need to take into consideration. To help you explore your options, we will discuss several of these factors below, including crunching the numbers, creating cash flow, and the freedom of movement.

Fitting Equity Compensation into Your Financial Plan

Written by Jeff Diamond, AIF® on May 31, 2021.

The smartest move when granted equity benefits is to plan now, not 10 years down the road.

A growing trend in employee benefits is the inclusion of equity compensation to attract the best talent and to recognize top employees. Equity compensation is a form of non-cash compensation that represents ownership in the company, such as stock options or restricted stock. Depending on the company and the type of compensation they provide, employees will either receive company stock upon joining the team or the option to purchase it at a future date into their employment.

Equity compensation can seem complicated, and it may be tempting to let your benefits sit on autopilot, especially if you plan on staying at the company for a while and don’t have immediate plans to sell the stock. This might not be the best move, however, because equity compensation can come with unique tax rules, tax implications, and liquidity challenges. In order to ensure that you’re making the most of these benefits, it’s important to take a strategic approach to manage them and work to incorporate them into your broader wealth management plan. As you do so, keep the following questions and opportunities in mind.

Cash Balance Pension Plans Can Benefit Doctors, Lawyers and Small Business Owners

Written by Zachary Morris, CFP® on May 24, 2021.

Five Reasons to Consider this Defined-Benefit Plan for Your Business

Many small business owners, including doctors and lawyers in private practice, can benefit from a cash balance pension plan. These plans offer significant tax deductions and accelerated retirement savings, making them especially beneficial for those with retirement looming in the near future. What’s more, this defined-benefit plan with a 401(k) twist can help you meet the needs of your employees, too. Many high-earning professionals are unaware of this option, though it offers benefits from both the retirement planning and tax avoidance standpoints.

How to Use the S.M.A.R.T. Goal-Setting Framework to Set and Achieve Financial Goals

Written by Zachary Morris, CFP® on April 7, 2021.

A Savvy Strategy for Meeting Your Money Objectives

If you want to achieve your life’s goals, you must first envision them and then create expectations for yourself. When you begin to see your goals as reality, it can become easier to see how to reach them, too. However, this can often feel like an uphill battle – especially when it comes to your financial goals.

Planning for success in your financial future is a challenge, but you can help yourself stay focused and on track by setting the right type of goals at the outset. To improve your chances of success, set S.M.A.R.T. financial goals.

Zach Morris Provides Perspective on How to Talk to Your Parents about Estate Planning in a Recent Article for The Balance

Written by Jeff Diamond, AIF® on March 26, 2021.

In an article published by thebalance.com, Co-Founder Zach Morris offered his insight and expertise on how you can best talk to your parents about estate planning, and why it’s so important to start the discussion now. Here’s a snip of the article:

Discussing estate planning with your parents is a conversation that can be difficult to have. You might not want to think about the day that they are no longer here, or even consider that they might experience a decline in health that severely limits their ability to think clearly or communicate with you.

Reasons You Need to Have the Talk Now

The unpredictability of 2020 hammered home the frailty of life and how quickly someone can succumb to an ailment. But besides the possibility of your parents getting sick, there are other reasons to have this conversation now. In short, it’s not always about an inheritance or power of attorney, according to Zachary Morris, co-founder of Atlanta-based Paces Ferry Wealth Advisors.

5 Ways HSAs Can Bolster Your Retirement Plan

Written by Zachary Morris, CFP® on March 24, 2021.

Health Savings Accounts Offer Several Benefits to Your Retirement Strategy

If you’re maxing out your 401(k) and IRA contributions, you’re likely on the road to a comfortable retirement. If you’re saving in taxable accounts, too, you’re even further ahead of the game. However, you may be missing out on an incredibly tax-efficient savings vehicle. If you truly want to bolster your retirement plan, it’s time to look into a health savings account (HSA).

Health savings accounts are the only option for triple-tax savings, meaning you can contribute pre-tax dollars, pay no taxes on earnings, and withdraw money tax-free now or in retirement as long as it’s used for qualified medical expenses. Simply put, HSAs go to work for you in three ways and provide the ultimate tax-efficiency. Read on for five ways you can fortify your retirement plan by using an HSA.