Paces Ferry Wealth Advisors | Financial Planning Blog

Are You Making This COSTLY Backdoor Roth Mistake?

Written by Zachary Morris, CFP® on January 10, 2025.

If you’re planning a Backdoor Roth IRA conversion, understanding the pro-rata rule is crucial to avoid unexpected tax bills. This often-overlooked rule can significantly impact your retirement strategy, especially if you have pre-tax funds in any of your IRAs.

In this video, I explain the complexities of the pro-rata rule and how it can affect Backdoor Roth conversions. I’ll start with the basics of IRA contributions, breaking down how pre-tax and after-tax contributions differ. Understanding this distinction is key to helping your conversion go smoothly and minimizing additional taxes.

The 4 Best Ways to Save for Your Child’s Future: Pros and Cons Explained

Written by Zachary Morris, CFP® on January 5, 2025.

In this video, I’m breaking down four popular ways to save for your child’s future—from college savings to long-term investment accounts—and weighing the pros and cons of each. If you’re exploring options for your family, understanding these choices can help you create a plan that aligns with your goals and your child’s needs.

We’ll discuss 529 plans, UTMA accounts, Roth IRAs, and Joint Accounts, covering their unique features and tax benefits, along with any potential drawbacks. From education savings to general-purpose funds, you’ll get a clear picture of which option might work best for your family’s needs.

Tax-Efficient Gifting: Strategies to Share Your Wealth with the Next Generation

Written by Zachary Morris, CFP® on January 2, 2025.

Learn about tax-efficient gifting strategies, including annual exclusions, 529 plans, and direct payments, to enhance your estate planning

Are you concerned about your estate being subject to federal estate taxes? Or perhaps you’d like to see your loved ones benefit from your wealth during your lifetime rather than after you’re gone? If so, you’re not alone. Many individuals seek ways to pass wealth efficiently to the next generation while addressing the complexities of estate taxes.

In this article, we’ll explore multiple strategies for transferring wealth in a tax-efficient way. These approaches align with current laws and exemptions and aim to preserve as much of your estate as possible for your beneficiaries.

Setting Financial Goals for the New Year: A Comprehensive Guide

Written by Zachary Morris, CFP® on December 30, 2024.

Start 2025 strong with our guide to setting financial goals for the New Year and learn practical wealth management tips.

The start of a new year often feels like a clean slate—a perfect opportunity to reflect, recalibrate, and set meaningful goals. While personal resolutions like exercising more or learning a new skill may top your list, prioritizing financial goals can have a transformative impact on your long-term well-being. By setting financial goals in the new year, you can create a roadmap to not only work toward financial security but also build the life you envision. Let’s explore how to approach this critical process with purpose and clarity.

Business Valuation and Retirement: How to Assess Your Company’s Worth for Future Planning

Written by Jeff Diamond on December 18, 2024.

Learn how to assess your company's worth with key business valuation methods and steps to help plan your retirement.

Retirement planning for business owners is a journey unlike any other. While traditional employees may rely on pensions or 401(k)s, entrepreneurs often see their business as their primary retirement asset. But how do you transform the value of your company into financial security for the years ahead? It all begins with understanding how to assess your company’s worth. This crucial step not only helps you plan for the future but helps your hard work and dedication translate into the financial legacy you deserve.

Read on to explore the importance of business valuation in retirement planning, the methods used to calculate a company’s worth, and actionable steps to prepare for a more seamless transition into retirement. Whether you’re a small business owner or the head of a thriving enterprise, this guide offers practical insights to help you navigate this critical process.

What GRANDPARENTS Don’t Know About 529 College Savings Plans

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

IIn this video, we’re diving into everything grandparents need to know about 529 plans—a powerful tool for supporting your grandchildren’s educational future. 529 plans are tax-advantaged savings accounts designed for education expenses, and they offer unique benefits that can make a big difference over time. But there are important rules, benefits, and strategies to be aware of if you’re a grandparent looking to contribute to your grandchild’s college fund.

Save on Taxes by Gifting Money Strategically!

Written by Zachary Morris, CFP® on December 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.

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.

Financial Planning Across Generations for Legacy and Continuity

Written by Jeff Diamond on November 18, 2024.

Discover how financial planning across generations can build a lasting legacy through aligning family values, preserving wealth, and supporting continuity.

When it comes to financial planning, a long-term perspective can be particularly meaningful. Financial planning across generations is about more than managing assets; it’s about creating a lasting legacy and ensuring continuity for loved ones. Families today increasingly recognize the importance of planning strategies that bridge generational gaps and foster financial resilience, allowing wealth, values, and goals to be passed on in ways that support continuity. Here’s how multigenerational planning can help families achieve these goals and what it entails.

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

Written by Zachary Morris, CFP® on November 12, 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.