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The Affordable Care Act ( Obamacare) of 2010 brought ample changes to the healthcare system. In addition to coverage requirements, the Affordable Care Act provides health insurance premium subsidies that vary depending on your income. In 2021, American Rescue Plan greatly expanded those subsidies also known as premium tax credits. Now, you might qualify for subsidies for your health care, even if you were well above the previous income limit. Here's how to qualify for the affordable care act subsidy . 2021 ACA Subsidies from the American Rescue Plan In response to COVID-19, the federal government implemented the American Rescue Plan Act in March 2021. This coronavirus relief package brought several economic benefits to American families like direct payments, expanded unemployment benefits, broadened the child tax credit, among several other advantages. It also played a significant role in the Affordable Care Act (ACA) premium subsidies by expanding eligibility to higher-income individuals and families who did not qualify previously. Before the American Rescue Plan, individuals who earned more than 400% of the federal poverty level (fpl) did not qualify for any subsidy. But, the bill eliminated an upper-income ceiling for the tax credit and instead changed the rules to a percentage of your premium in proportion to your income. If your premium exceeds 8.5% of your income, then you qualify for a subsidy. The federal bill also increases ACA premium subsidies for lower-income individuals and families who already qualify. Individuals whose household income is 150% or less of the national poverty level are now eligible for premium-free coverage through the ACA marketplace. If you received unemployment benefits at any point during 2021, then you may qualify for significant subsidies as well. By meeting specific IRS requirements, your income will be counted as no more than 133% of the poverty level, regardless if it was actually much higher. That’s the case even if you only received unemployment benefits for a small portion of the year. As you can see, qualifying for Affordable Care Act subsidies is possible regardless of your income. It’s imperative to consider the ACA in your financial plan . How To Tell If You Qualify Now that we have looked at the recent changes to qualification requirements, you can use this information to see if you qualify for the affordable care act subsidy. First, you’ll need to understand how the ACA subsidy defines your “income.” It’s based on your Modified Adjusted Gross Income (MAGI). Although MAGI isn’t directly stated on your tax return, you can calculate it with information from your return. It may be helpful to have a tax professional or financial advisor help you with navigating the numbers. For example, at Covenant Wealth Advisors, we use advanced tax planning strategies software to help client calculate their MAGI. In turn, we can then tell them how to qualify for the affordable care act subsidy. Beyond knowing that you qualify for subsidized coverage, you need to know how much you are eligible for. The amount you receive will also depend on your income levels. In general, the higher your annual income, the smaller the subsidy. However, given the recent changes we just discussed, even if your income is above 400% of the federal poverty level, you shouldn't have to spend more than 8.5% of your income on health care. So what if you are currently spending more than that with (deductibles, monthly premiums, co-pays, co-insurance, and other out-of-pocket costs, etc.) on your healthcare? The subsidy will make up the difference between 8.5% of your income and what you're paying. You can use an online calculator like this one or talk to your financial advisor to get an idea of how much of a subsidy you may qualify for. Keep in mind that there are several circumstances that could disqualify you from eligibility for ACA premium subsidies: Your employer-sponsored health plan has to meet two criteria: affordable and provide minimum value. If your workplace plan fits these benchmark plans, you aren't eligible for a subsidy on the exchange. The affordability metric only applies to you, no other family members or other dependents. Once you turn 65, you often qualify for premium-free Medicare Part A, thereby disqualifying you from premium subsidies. Those on Medicaid don't qualify because Medicaid often provides additional financial support. Identifying critical ways to save our clients money via premium subsidies, cost-sharing reductions, and more, in the long term is one of our key strengths at Covenant Wealth Advisors. Healthcare is one of the biggest ticket items in your retirement plan, so making the most of subsidies and other tax credits can keep more of your money working for you to support your retirement goals and less funneled to the healthcare system. We use sophisticated tax planning software to analyze your total tax picture to identify specific actions to take to improve the chances that you qualify. Next Steps Toward Receiving ACA Subsidies After applying the new rules to your own situation, you may find that obtaining a health plan through the health insurance marketplace is a cost-effective option. Even if you already have health insurance coverage, it’s helpful to compare your current health insurance plan to the plans available through the ACA marketplace. If your calculations show you could be saving money with subsidies through one of the ACA marketplace plans, you can switch from your current health insurance company! To switch, you’ll need to do it during ACA open enrollment period. The open enrollment period for coverage starting in 2022 is from November 1, 2021, through January 15, 2022. You’ll also need to create an account on HealthCare.gov. From there, you can browse the plans and see what each would cost based on the state you live in, your family size, and income. The best part is, you don’t have to do all of this on your own. Reach out to your advisor for help changing your health insurance or talk through the long-term impacts of switching. If you don’t have a trusted advisor, we would be happy to help. Call us today to see how we may be able to help you navigate the ACA and reduce your health insurance costs. Katherine Fonville is a personal financial advisor and fee-only financial planner and founder of Covenant Wealth Advisors. She manages investment portfolios for individuals age 50 plus with over $1 million in investments. Schedule a call. Disclosures: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. We provide investment advisory, financial planning, and tax planning services to individuals. Investments involve risk and does not guarantee that investments will appreciate. Past performance is not indicative of future results. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance, and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Registration of an investment advisor does not imply a certain level of skill or training.

Are you about to receive a pension? Great, you’re among the fortunate few! Now, you are probably wondering: Should I take the lump sum from my pension or take income for life? Download our cheat sheet of considerations before you retire for more helpful tips. Deciding how to take your payout can be one of the most powerful retirement decisions you make because it can impact your entire retirement income plan for the rest of your life. Generally speaking, you have two broad options: Lump-sum (which you could rollover into an IRA) Lifetime income payments (which translate to monthly payments) Each comes with pros and cons and several considerations dependent entirely on your unique financial and personal circumstances. Here’s how to tell if you should take the lump sum or lifetime income payments from your pension. Pension Plan Basics A pension is a type of retirement plan offered through an employer as a benefit, much like the far more common 401k plan. Although both types of plans are meant to provide you with a source of income in retirement , the way they do it is vastly different. Understanding Defined Contribution Plans A 401k is a defined contribution plan, meaning you save money by placing a specified amount of your paycheck into the plan each pay period. So, the total amount of money you have in retirement is primarily determined by how much you contribute and your contributions’ rate of return. In this case, the contribution is known or “defined,” but the benefit is not. Why A Pension Plan Is Different A pension is a defined benefit plan and functions oppositely. Typically, employees do not contribute to the pension but instead accrue a retirement benefit that their employer will pay them once they retire. With a defined benefit pension plan, the employer is on the hook for ensuring there is enough money in the plan to fund the promised benefit. However, companies don’t simply make an educated guess on that number. Qualified pension plans are required to have trained professionals, enrolled actuaries, determine that companies adequately fund the plan every year. In addition to the stringent accounting requirements, pensions are also covered by the Pension Benefit Guaranty Corporation , or PBGC, which protects retirees in case a plan is unable to pay earned benefits. How Pension Plans Determine Retirement Benefits So how does the employer define the benefit that employees receive? Each plan has a specific benefit formula. The most common type of formula bases the benefit calculation on two factors: How much the employee earned, and The number of years they were employed with the company. Often, the higher the employee's income and the longer they were employed, the more significant the benefit. Retirees usually have several options for how they wish to receive their benefit as well. The most basic decision you will have to make is whether to receive your benefit as a single lump sum or as a stream of regular payments—often for life. In some circumstances, companies offer employees a buyout, where the company agrees to pay you a certain amount of money and in exchange, releases itself from future payment obligations. In the case of a lump-sum offer, you may need to think about these issues earlier than initially planned, especially if the company is terminating the pension plan. Evaluating Lump-Sum vs. Lifetime Income For Pension Payouts If you have the option between taking your benefit as a lump sum or lifetime income payments, then you’ll want to do a little analysis. Below are a few factors that can help bring context to your decision. Timeframe Start by looking at the raw numbers, and consider how the lump-sum distribution would compare to the recurring payments for different lengths of time. For example, if you collect payments for 10 years, how does that stack up to the lump sum payment? Could you have invested the lump sum (in an IRA, the stock market, etc.) and reasonably expected to withdraw more than the payments provided you over that time? What about 15 years? 30 years? The longer you draw out the timeframe, the more likely it is that taking the payment stream is the more lucrative option. So what do you do with that information? First, think about how long you might expect to live and ask yourself which option will most likely provide you with the most benefits. Does your family have a history of living well into their 90’s or do they have normal or shorter lifespans on average? What about your own physical well-being? Are you in good shape with no medical complications, or do you have health concerns that suggest you may not live another 30 years? Personal Comfort Level This decision is not a simple math problem. Sure, you need to consider the raw numbers (total benefit, interest rates, etc.), the length of time you plan to collect benefits, life expectancy, health, dependents, beneficiaries, and more, but those elements aren’t the end-all-be-all. Your personal preferences matter, too. Does the thought of having a steady and guaranteed income put you at ease? Peace of mind absolutely deserves a place in your decision. After all, you should enjoy your retirement and not stress about money all the time. Or, does the idea of a lump that you could access if you needed to sound better? Maybe you’re excited about the possibility of reinvesting those funds in other areas of your life. Or perhaps quicker access to the money could help you achieve one of your significant financial goals. Keep in mind that the lump-sum option will come with more sophisticated investment decisions. You’ll have to build a proactive investment plan and withdrawal strategy to make the most of the opportunity. Selecting the regular payment stream doesn’t have this added layer. It's also critical to evaluate the tax implications of each choice. By taking a lump sum and investing, you may not have a clear idea of your future tax responsibilities as it depends on where you invest, investment returns, and when you withdraw it. Remember, you will need to take required minimum distributions (RMDs) if you invest in a traditional IRA, which could increase your income tax liability for the year. If you choose the monthly payments, you'll likely have to pay income tax on the distributions. Since it's a set number each month, you'll have more consistency in your annual tax planning. No matter your choice, we’ll help you look at the implications for your entire financial picture: income goals, cash flow, tax projections, and more. Other Income Don’t lose sight of the fact that the whole point of a pension is to provide for you in retirement. Consider how your other sources of monthly income come into play. Do you have other steady sources of income from Social Security or annuities? Then, you may not need to take lifetime payments from your pension. If your other sources of income are less steady, your pension payments may be able to provide you with some stability. How To Choose What’s Right for You Various factors are at play when deciding between a lump sum or lifetime income, but ultimately, it's up to you to choose what's best for your money and life. It's so beneficial to have a trusted financial advisor in your corner to help you understand your options and make the best choice for your situation. If you're nearing retirement and need help figuring out the best choice for you, talk to us at Covenant Wealth Advisors. We can walk you through critical retirement income decisions and set you up for ultimate success in your retirement years. Broderick is a personal financial advisor and fee-only financial planner with Covenant Wealth Advisors. He manages investment portfolios for individuals age 50 plus with over $1 million in investments. Schedule a call. Disclosures: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. We provide investment advisory, financial planning, and tax planning services to individuals. Investments involve risk and does not guarantee that investments will appreciate. Past performance is not indicative of future results. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance, and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Registration of an investment advisor does not imply a certain level of skill or training.

Disclosures Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Registration of an investment advisor does not imply a certain level of skill or training.

It goes without saying that giving great service and advice are our top priorities at Covenant Wealth Advisors. We strive to excel in both areas every day. It's not easy but we recognize how important these components are to the success of our clients and our firm. The truth is, we've been blessed with great clients and a great team. That combination is something most companies never achieve and we're proud that our clients have chosen to be a part of the CWA family. That's why our team at Covenant Wealth Advisors is excited to be the #1 fastest growing company in Richmond, VA a s published by RichmondBizSense in 2020 . Growth is good as long as we can continue to deliver great service and advice. But, we need good people to do that and good people are hard to find. Ultimately, we find good people by clearly articulating our values and being true to our word. After all, good people always have good values. Thanks to all of our clients and to the greater Richmond area for being a great place to help others with their personal financial needs. If you would like to learn more about the CWA experience, contact us today. Disclosures: The RVA25 is an annual survey performed by Richmond BizSense. Companies profit and loss statements were reviewed by an independent accounting firm, Keiter CPA, and analyzed for three year revenue growth end December 31st, 2019. The top 25 fastest growing companies were chosen as recipients of making the RVA25 list. No fee or compensation was provided to Richmond BizSense or Keiter CPA for participation in the survey. Registration of an investment advisor does not imply a certain level of skill or training.

Charitable donations play a significant role in many people’s financial lives. When you give, you understand th at offering time, talent, and resources to a cause you care about can enrich and rejuvenate your life. Along with the personal and social benefits, there are also many tax benefits to maximize your charitable efforts. Even though your primary purpose in giving is to help further a cause you care about, it makes sense to do it in the most tax-advantaged way. While most people donate to charities by giving cash or writing a check, this method overlooks more tax-efficient options, such as qualified charitable distributions or QCDs . In this article, you'll learn the features and benefits of a qualified charitable distribution to help maximize your charitable donations and reduce taxes. If you want to know if you are eligible to make a QCD, download this free guide. What are Qualified Charitable Distributions? A QCD is a donation made directly from an IRA to a qualified charity. QCDs are beneficial for retirees as it allows them to donate all or a portion of their required minimum distributions (RMDs) directly to the qualified charity of their choice. This vehicle minimizes their annual taxable income and maximizes their regular donation strategy. Generally speaking, you can donate all or a portion of your RMD, up to $100,000. What are the QCD rules? Like all strategies with a tax benefit, there are specific rules you have to follow. The single most important item to be aware of is that to qualify as a QCD, the distribution must be made directly from your IRA to the qualified charity. You can’t take the distribution as cash, or a check made out to you, and then donate to the charity. Your IRA custodian will need to make the check out directly to the charity. You must have a traditional IRA, inherited IRA, SEP IRA, or Simple IRA for the QCD strategy to work. You can't do a QCD from a 401k, and you must be 70 ½ years old. If the IRA (SEP IRA or SIMPLE IRA) is actively receiving employer contributions then you can't do a QCD. QCDs are limited to $100,000 for each person. If you are married, you and your spouse can each make a $100,000 QCD from your own IRA for a total of $200,000. Remember, a QCD facilitates the donation of your RMDs to offset taxable income. While you can donate more than your annual RMD (so long as it’s below the $100,000 threshold), the excess amount doesn’t roll over and can’t count for your next year’s deduction. Before you donate more, consider how your gift fits into a multi-year strategy. To take full advantage of the deduction, it could make sense to spread the donation over several years. Your donation must be to a qualified 501(c)(3) charity. Private foundations, supporting organizations, and DAFs don't count. By initiating a QCD, you can’t claim the value of the distribution as a separate charitable deduction. Keep in mind that a QCD isn’t a taxable distribution, so deducting it would result in a double benefit. However, since a QCD isn’t a deduction, you don’t have to itemize to benefit from it. That's significant if you take the standard deduction. The SECURE Act pushed the maximum age to contribute to an IRA from 70 ½ to 72. This presents a special circumstance to be aware of if you plan to take advantage of the ability to contribute to an IRA after age 70 ½. Any contributions you make into your IRA after age 70 ½, reduce the amount you can donate as a QCD, and that reduction does carry forward. Again, work with your advisor to plan how these changes will impact your QCD and RMD strategy over several years. How does this giving strategy add value? Reducing taxable income may help decrease federal tax liabilities , which is certainly a plus, but what a lot of people don't know is that lower taxable income could also lead to additional tax savings. Some of the main benefits of a lower taxable income are reducing taxes on Social Security as well as Medicare Part B and IRMAA surcharge since these elements are based on your taxable income. Part B Surcharges can range from $0 to $347 extra per month and Part D from $0 to $76.40 extra per month. As you can see, reducing your taxable income with a QCD can have a cumulative effect on many other aspects of your financial plan. Paying less in these areas frees up money to donate more, reach a goal, pay off debt, or even improve your lifestyle. As part of a planning strategy, keep in mind the CARES Act suspended RMDs for 2020, so if you are planning to make a one-time donation, you may want to wait until January 2021. Even if you normally make a donation, but it’s below the QCD limit, it could make sense to make this year's and next year’s normal donation in 2021 so you can reduce next year's RMD further. There are many ways that a QCD can benefit you, and in turn the causes you care about. Multi-year QCD planning could help you take full advantage of tax reductions and significantly increase the value of your donation. Can a Qualified Charitable Distribution improve your giving plan? Download this helpful guide to see if you are eligible to make a QCD. If you have questions about how QCDs could fit into the bigger picture for you contact us , and we’ll help assess if it’s right for you and how to best incorporate QCDs into your plan. Mark Fonville, CFP® Mark is a CERTIFIED FINANCIAL PLANNER and advises individuals and families age 50 plus on retirement income planning, tax planning, and investment management strategies. He has over 18 years of experience and is President of Covenant Wealth Advisors , an award winning wealth management firm in Richmond and Williamsburg, VA. Schedule a free intro call with Mark Disclosures: Covenant Wealth Advisors is a fee-only, registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Registration of an investment advisor does not imply a certain level of skill or training.

Whether it’s because it’s a wonderful way to fulfill a holiday tradition and give back to organizations, causes, and communities you care about or it’s the cherry on top of your tax planning strategy , year-end is the most popular time to donate to charity. The way you give can have as much impact as what you give, and a financial planner can help you hone your giving strategy so you can make the most of every donation. There are many key issues to consider before year end . But today, we are going to look at four simple ways a financial advisor can strengthen your giving strategy . 1. An advisor can help you bring intention to the giving plan. Each part of your financial plan should have an intention . You’re likely intentional with the charities you give to or the causes you support, but what about the way you give? All the elements in your financial plan are optimized for you and your life, and charitable giving should be no exception. You can bring intention to your charitable giving by making the most of tax-smart gifting strategies, and building giving as part of your regular financial plan, not just during the holidays. If you are like most people, you likely write a check or donate cash to charities . While that donation does help your organization of choice, there are additional ways to reduce taxes by improving your giving strategy and tailoring it to you. Let’s take a look at a few key ways to bring more intention to the way you give this year. 2. Give with a Donor-Advised Fund. A donor-advised fund (DAF) allows you to make charitable donations into an investment account that can grow over time. You still get to deduct the contribution, but the donation can be invested within the DAF and you can later decide to distribute all or a portion of the account to a qualified charity. DAFs are a great way to involve your family in charitable efforts and can be a pleasant part of your holiday tradition. Before the family gathering, have each person research and select a charity to discuss. Then, as a group, the family can decide on how to make the annual gift. This process can help establish a family legacy of charitable giving. It’s also a great way to compartmentalize your giving for the year or multiple years. Simply having a DAF account established makes you more likely to carry through with your giving in the first place . If your situation calls for it, donor-advised funds allow you to maintain your annual giving while taking advantage of charitable bunching. Charitable bunching is a strategy of making multiple years’ worth of regular donations at once to surpass the standard deduction ($12,400 single filers and $24,800 married filing jointly in 2020). If those donations are to a donor-advised fund, you can still distribute them in the year you would have otherwise donated directly. 3. Retirees should consider a Qualified Charitable Distribution. If you are subject to take an RMD and make regular charitable donations, then a qualified charitable distribution can be a big tax break for you. A qualified charitable distribution, or QCD, is a distribution made directly from your IRA to a charitable organization. Three major benefits of a QCD include: 100% of the distribution from your IRA avoids income tax. A QCD applies toward your RMDs for the year you donate. A QCD may allow you to better manage your taxable income for the year to help avoid Medicare surcharges or bumping up into a higher federal tax bracket. Notice here that the QCD is not a deduction, but rather the distribution isn’t included in your taxable income. That means you can take advantage of QCDs even if you don’t itemize deductions. There are specific rules to follow to qualify for a QCD. A few of them are: The QCD limit is $100,000 per person or $200,000 for a couple. While a couple can donate $200,000 each individual is still subject to the $100,000 limit. QCDs can be taken from Traditional IRAs, inherited IRAs, Inherited Roth IRAs, SEP, or Simple IRAs. The distribution must be made directly to the charity. You cannot take the distribution first, then subsequently donate. If you are wondering if a QCD is something you should consider, download this flowchart that will show you step by step what you need to consider. 4. Donate appreciated assets. Another tool for tax-efficient giving is through the donation of highly appreciated or low cost-basis stock on which you have a sizable, unrealized gain. Instead of selling appreciated stock and recognizing a taxable gain, you can donate the stock directly to a charity or a donor-advised fund. When you donate the stock instead of selling it first, you can transfer the full value without incurring a tax liability. That means more of your money can go towards supporting the cause you care about. This process works even if you were planning to give cash without necessarily selling the stock. Suppose you bought or inherited a stock years ago that has accumulated a sizable amount of gain. Instead of giving cash, donate the same value of the appreciated stock instead. Improve your giving strategy today. There are several powerful strategies for donating to charity. While all the strategies above can be great for some people, they are not great for everyone. Making sure your donation is made in the most tax-advantageous manner allows you to give even more. But, that requires personalized advice to ensure you are making the best decision for you. It’s all about employing the options that work best for you and the charities you give to. If you want to explore the best way for you to give in consideration of your entire charitable, tax, and financial situation, then set up a call with our team and we’ll help you build your plan from start to finish. Disclosures: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Registration of an investment advisor does not imply a certain level of skill or training.

The renowned ancient Greek philosopher, Aristotle, once said: “the essence of life is to serve others and do good.” What does this quote mean to you? How can you apply its message to your own life? One way you can implement this idea is through volunteering. Volunteer work is a generous and gracious way to spend time and resources on a cause or organization you care about. There are many ways that volunteering works to serve the people and community around you from soup kitchens to blood drives and other charitable efforts. With so many opportunities, you can use your unique skills and passions to contribute to your community. Whether you have recently retired or are a pro at the retiree lifestyle, volunteering is a great activity to add to your weekly schedule. Williamsburg, Virginia offers many different volunteer opportunities so you can find one that will best suit your interests. Let’s take a look at why volunteering in retirement is important and how you can get involved in Williamsburg. Why Volunteer? When you dedicate your time to serving others, you are doing something to improve the world around you. But volunteering isn’t just a noble gesture, it’s how many non-profits and charities stay in business. They rely on people like you who care about the cause to be representatives of the group. Volunteering also allows you the opportunity to become more involved in your local community. Perhaps you are interested in volunteering at a local museum or gardening at a community park. Any service you are willing to offer to your community will only help it grow and prosper. It’s always good to add additional value to the community you live in. By keeping it nice, you are helping to preserve its history for years to come. Volunteer work will expose you to new people as well. The most prominent part of a community is the people that live there. Volunteering will give you a chance to get to know them and form new relationships. A community is so important when you enter into retirement . Meeting people who share your interests is a great way to develop friendships and find a sense of belonging in your golden years. Volunteering is also incredibly accessible with many days, hours, and seasons available. There are also convenient locations, often within a 30-minute drive. Colonial Williamsburg Volunteering Founded in 1632, Colonial Williamsburg was a mecca for political events in Virginia at the cusp of the American Revolution. Its history and charm drive tourism and forms the bedrock for a quaint community, which makes volunteering here even more interesting! There are so many opportunities for residents to get involved in their community. With a wide range of tasks and activities, you can find something that speaks to you and that you will enjoy doing. Below, we divided various volunteer opportunities by interest/skill. Take a look at these and the links provided to give you a comprehensive look at more opportunities to get involved. History and Outdoors Waller Miller Park, Freedom Park, Chickahominy Riverfront Park The park is always looking for volunteers especially in the summer months. Many people are needed to help weed, water, and plant flowers in the garden. If you have a green thumb or are looking to get it a shade or two darker, this activity could be perfect for you! If you love keeping parks and trails clean and neat, consider joining the beautification team. There is also an opportunity to help with a fishing mentorship and inspire a new generation of anglers. For more opportunities, check out their official website . Historic Jamestown This museum is hungry for volunteers to help make the space inviting and ready for guests! If you are a history buff, this could be an incredible opportunity for you. You can find volunteer activities that cover a wide range of historical periods like the Colonial, Revolutionary War, and Civil War eras. Pets and Animals This section is all about animal lovers. The area is wild with opportunities to make some new furry friends from training and education on pet care to pet therapy to assistance in clinics and more, there is certainly something for everyone. A few ideas can be found below. Dream Catchers Therapeutic Riding in Toano This wonderful organization provides numerous equine-assisted activities and therapies. They are in search of volunteers who can give riding lessons (must be certified), maintain the facility, and also office support. Learn more here . Heritage Humane Society Animal lovers of all kinds are welcome here to help care for injured, ill, or stray animals found around the community. You can help these animals find the right home. Pawsitively Precious Adoptions Calling all cat people! You can help feed and take care of cats until someone adopts them. There are also opportunities to assist with livestock in Colonial Williamsburg. With such a diverse area, there are numerous types of animal assistance. You can find something that aligns with your interests and skills. Children and Family The Williamsburg area is lucky to have so many charitable organizations, including faith-based, social services, Habitat for Humanity home construction, educational/tutoring through public and private schools, and health/human care at the numerous senior living and assisted living locations that support the people who live there. A few others to consider are below. Peninsula Foster Grandparent Program If you are over 60, you can volunteer to help mentor a child with special needs. This is a wonderful way to show love to your fellow neighbor. The Salvation Army Sign up to teach a life skills class to underprivileged children or elect to make your famous sweet potato casserole for a Thanksgiving dinner. The Salvation Army has many opportunities for you to help better the lives of people in your community. United Way of Greater Williamsburg Do you have a great idea to help bolster volunteers throughout your area? This could be a wonderful organization for you! United Way seeks to increase the quality and quantity of volunteer opportunities in the area. As you can see, there are so many opportunities for you to get involved. If you are interested in seeing new and upcoming volunteer events, check out this listing . Volunteering your time and talents is something you will always remember. The unique history of Williamsburg and the Historic Triangle including Yorktown and Jamestown attracts many retirees to the area, and volunteering at one of the many amazing organizations in our area only enhances the retirement experience. By making lives better and improving your community, you are dedicating yourself to keeping your hometown beautiful for years to come. Is Williamsburg the best place for you to retire ? Let’s talk about your retirement goals together. Set up a time to talk with a team member today. We can’t wait to help you plan for your dream retirement. Disclosures: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Registration of an investment advisor does not imply a certain level of skill or training.

Fears of election cycles and market volatility are nothing new but have seen a resurgence this year as social tensions as well as the economic and health impacts of the coronavirus loom in the background. Nearly every election, people concern themselves over market trends and future projections. Concerns about whether the election will tank the stock market abound which we address in this video. But, those election fears won’t further your financial vision. The presidential outcome may incite different personal reactions, but it’s important to remember that you are in control of your money and your plan. In times of uncertainty and change, it’s best to lean on your goals, values, and plan to get you where you want to be. Today, we are going to look at four best practices for managing your money post-election. 1. Take the fear out of the equation Most people fear change, especially change that will alter their balance sheet. But before you pull all of your money out of the markets or make any other drastic change, ask yourself the following questions: Will that decision further your financial plan? How is that choice aligned with your goals and values? In what ways will your short-term and long-term goals be impacted by this choice? Think critically about the financial choices you make, especially if they will cost you in taxes and future returns. You know what’s best for your finances, and when you slow down and analyze your options, you’ll likely find that staying the course will yield the best results. The stock market is volatile. In theory, you know that, but as 2020 has illustrated, it’s quite different in practice. The markets will always fluctuate, but you don’t have to. Making a choice out of fear relinquishes your control over the situation. If you let fear be your motivator, you aren’t moving in the direction you want to go. Decisions derived from negative emotions aren’t likely to produce positive results. Your financial choices should be made with your goals and values in mind, and fear shouldn’t have a dominant role in that equation. 2. Lean on your comprehensive financial plan When things get difficult, we search for solutions that are solid and will bring strength. In this case, it could be your financial plan . Take a look at the financial plan you and your advisor created and see if anything should realistically shift due to the outcome of the election. You might find that minimal if any, changes need to be made. Why? Because your goals remain at the center of your plan. Did the election alter your long-term goals? Did it change the way you want to live in retirement? Has it shifted your vision for retiring early? Most likely, the answer to these and more questions is no. The election can’t change your goals, you can. You are in control of your financial future, so don’t be afraid to take back that control. 3. Let your goals and values guide you. Your goals and values are like the sun—the rest of your financial plan orbits around them. When you center yourself on what matters most, you’ll find that they can be your guidepost through any time of change or strife. Ask yourself, What brings you joy and fulfillment? How are your values infused into your financial habits? In what ways are your goals and values baked into your financial plan? Sometimes it’s difficult to see beyond the current moment, but that’s what financial planning does best. It cuts through the noise and helps you align your money with the things that matter most in your life. If you’re feeling overwhelmed, take a step back and remind yourself of the goals and values you hold dear. They can rekindle your trust in your plan and vision for the future. 4. Call your trusted financial advisor. If you’d like to talk through your plan or ask questions about anything that needs to be altered, contact your financial advisor . That’s what we are here for. We seek to guide you through times of joy and uncertainty. Before you make any changes to your plan, be sure to call your trusted advisor. Most fiduciary financial advisors have your best interests at heart and will help lead you in the direction you want to go. Your advisor can be your sounding board, listening to your concerns, and helping you align your money with what’s truly important both now and in the future. Especially in times of stress, it can be difficult to see your plan through an objective lens, and your advisor can help you remember the vision and keep your plan on track. The aftermath of the election might cause confusion and uncertainty, but we will be like the lighthouse, guiding you through the dark, safely to shore. Give our team a call today . We would love to discuss your plan and help bring confidence back to your financial life. Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors , an award winning wealth management firm in Richmond and Williamsburg, VA. Schedule a free intro call with Mark Disclaimer: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Ferguson is not affiliated with Covenant Wealth Advisors. Ferguson plan features and benefits may change at any time. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Registration of an investment advisor does not imply a certain level of skill or training.

Fall is the time for open enrollment, which allows you to take another look at your employee benefits. While you should be contributing to your retirement account throughout the year, now is a great time to double-check and make intentional adjustments to your plan to maximize your benefits come years end. Today, it’s all about Ferguson’s 401(k) and retirement benefits. At Ferguson, you have access to both a 401(k) and a Supplemental Executive Retirement Plan. In this article, we’ll explain what your Ferguson retirement benefits include, and how you can make the most of your benefit. A deep dive into Ferguson’s 401k Your Ferguson 401(k) plan enables you to contribute up to $19,500, plus an additional $6,500 if you are over 50, for 2020. Your contribution is limited to 50% of your total income, which includes bonuses, added wages, and salary. Matching Contributions Alongside your contributions, Ferguson will provide matching contributions according to the following schedule: 100% of your contribution is matched up to 2% of your pay 50% of your contribution is matched on amounts over the 2% pay limit The matching contributions cap is 3.5% of pay You become fully vested in the company match after 5 years of service In addition to the matching contribution, you also receive a profit-sharing contribution. Specific Ferguson 401(k) Rules Your Ferguson 401(k) does not allow after-tax contributions beyond the annual salary deferral limit of $19,500. The plan does permit you to make in-service distributions starting at age 59 ½, which gives you some flexibility to roll funds into an IRA or even start making partial- Roth conversions into a Roth IRA. Keep in mind that you only have three options to choose from when withdrawing the money in retirement. Roll the balance over into an IRA Take a single lump-sum distribution Take an annual withdrawal based on your life expectancy It will take some planning to decide which option is best for you, but a rollover to an IRA will give you the most flexibility to your withdrawal rate. Paying close attention to which accounts you withdraw from and how much can make a big impact on the taxes you pay. If you take the lump-sum distribution, you will have to include the full amount in your taxable income, which could have significant tax impacts and jeopardize the fund’s time horizon. Breaking down the FERP Plan Key executives at Ferguson are also eligible for the Ferguson Executive Retirement Plan. This is a type of Supplemental Executive Retirement Plan, which provides you a means to defer up to 80% of your base salary and annual bonus. Each January, Ferguson contributes to the plan on your behalf. The amount of this contribution is 3.5% of your compensation, regardless of how much you contribute or even if you contribute at all. In addition to your deferral and Ferguson’s contribution, the FERP plan also provides you with a match of 50% of the amount you defer. This match is limited in total to 2.5% of your qualified compensation. Ferguson’s board of directors may decide on a discretionary basis to contribute an additional amount to your account in recognition of your service to Ferguson. A word of caution for FERP participants. The plan is a non-qualified deferred compensation plan. This means that it has an added layer of risk versus the 401(k) because it is not creditor protected at the entity level! This means that if Ferguson encounters a financial hardship, your hard-earned retirement savings could be put at risk. If you are a participant in the FERP plan, we recommend that you contact us on the best way to structure your payout and benefits. Top strategies to maximize your Ferguson retirement benefits Before 2019, key executives 401(k) contributions were limited to 7% of pay. However, that is no longer the case. This gives you additional opportunities to plan your retirement savings in a way you didn’t have before. One planning strategy is to prioritize your retirement contributions. To maximize your total benefit, consider limiting your FERP contribution to 5% of your pay. Contributing 5% allows you to take full advantage of the 50% match since it is limited to 2.5% of your pay. Then, max out your 401(k). You’ll take full advantage of both plans matching contributions. Lastly, contribute any additional retirement savings to your FERP or consider using a taxable account. If you use a taxable account, you need to manage the investments to avoid unnecessary tax liability, but it can be an incredibly effective tax diversification strategy when considered along with tax-deferred plans, especially when you start taking withdrawals. Another strategy is to take your FERP distributions from the time you retire until you turn 70. Taking your distributions over this timeframe will allow you to bridge the gap between your retirement date and claiming Social Security at age 70. By living off of your FERP distributions before turning 70 and in turn delaying your Social Security, you continue to earn delayed retirement credits for a larger benefit. At age 70, your Social Security benefit will be 8% higher for every year that you delay past your Full Retirement Age. Depending on your birthday, that could be up to 32% higher. Then, once you turn 70, your retirement will consist of your increased Social Security benefit, 401(k) withdrawals, and any amount you have in taxable accounts. Saving for retirement is a crucial component of your benefits package. By knowing what is offered, you can work with your financial advisor to create a game plan to build a retirement plan that works best for you. If you would like to take advantage of your Ferguson retirement benefits, give us a call today . Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors , an award winning wealth management firm in Richmond and Williamsburg, VA. Schedule a free intro call with Mark Disclaimer: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Ferguson is not affiliated with Covenant Wealth Advisors. Ferguson plan features and benefits may change at any time. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Registration of an investment advisor does not imply a certain level of skill or training.

The 2020 election is coming up fast, and I've had a lot worried folks ask me: Will it tank the stock market? The truth is that it's a difficult question to answer. In this video, I’ll give you three things to keep in mind when it comes to elections and stock markets so you can plan for uncertainty up to and through retirement. Disclosure: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Hypothetical examples are fictitious and are only used to illustrate a specific point of view. Diversification does not guarantee against risk of loss. While this guide attempts to be as comprehensive as possible but no article can cover all aspects of retirement planning. Be sure to consult an advisor for comprehensive advice. Registration of an investment advisor does not imply a certain level of skill or training.

It is a complete myth that high-earners don't need to worry as much about budgeting and crafting a savings plan as lower-income earners. In fact, many times they have to think about it more. With more wealth comes more complexity, making it important to build a plan that balances debts, current expenses, and future goals. Because of this added complexity, it’s extremely important to be deliberate about your budget. Today our team wanted to tackle a topic we talk about a lot—how to budget for high-income earners . Physicians have a lot of moving pieces in their financial plan, which makes proper budgeting integral for financial success. What makes a strong physician’s budget? Let’s find out. High-earners still need a budget Deliberate planning allows you to maximize the potential of your earning power. But beyond enhancing your dollars, it also protects you. Without a budget, you run the risk of missing opportunities and creating financial problems that are much more difficult to correct than they are to avoid in the first place, like runaway debt. You spent a lot of money and a lot of time earning your medical credentials. When you enter your career, it's only natural to want to reward yourself for all your hard work. It’s okay to enjoy your money, but do it in small doses. We have met dozens of high-income doctors who didn't have a dime to their name because they became too accustomed to earning (and spending) their higher-income out of the gates. Again, a simple but deliberate budget can help you tremendously here. The difference in a physician's budget To some degree, a budget is a budget. Being a physician doesn’t change the fact that you still need to plan for the same things as most other professionals: housing, food, utilities, emergency funds, retirement, etc. But there are a few other things that doctors need to be especially conscious of. Budget for Student Loans in The Early Years If you are several years outside of medical school, you may have a large student loan balance considering the average debt for medical school graduates is over $250,000 . Debt management and repayment should be a big part of your financial plan. There are several ways to handle this. First, consider your options so you can outline your approach. You may want to pay your loans off as quickly as possible and get them behind you. Again, deliberateness is key if this is your goal. Unmindfully directing any leftover money to pay down the balance probably won’t work. With leftover money, you’ll always find somewhere to spend it, which could leave you empty at the end of the month . Instead, decide how much you can reasonably afford to use for debt payment and make it a line-item in your budget. There are also several favorable repayment options for federal student loans that are based on your income. These income-driven (IDR) plans can significantly lower your monthly payments, but the payments will increase as your income increases. It may make sense to use one of these repayment options to match your payment with your income level. There's also the possibility of having your student loans forgiven if you qualify. Public Service Loan Forgiveness (PSLF) is popular among physicians. The primary qualifications are that you have federal student loans, work for a 501(C)3, and make 10 years of qualifying payments. Any balance remaining at the end of the 10 years is forgiven, tax-free. Note that payments made while on an IDR plan still qualify, so combining IDR and PSLF can be a huge value and presents an excellent planning opportunity. You’ll never know the value of this opportunity if you don’t plan your budget, and you could miss the opportunity if you don’t budget for it. Budget for Insurance You will need different levels of insurance as you go through your training and career development like life insurance, disability insurance, and malpractice insurance. The level and type of insurance you need will change as you embark on different stages of your career. A resident might not need the same malpractice or disability insurance as an attending or someone running their own family practice. Your coverage needs will likely depend on your income, cash flow, dependents/family responsibilities, debts, and more. All of these require a strong plan and a professional to help guide you toward the right policies for you and your family. Budget for Retirement Most doctors remain in their field for a lengthy career. You may plan to do the same. After all, you studied and worked hard for it. But, burnout occurs frequently for doctors, especially now days. That means you may find out that you want to retire earlier than you had anticipated. If so, you’ll want to be ready. This requires creating and sticking to a plan for spending and saving your money—starting now. Make a plan for retirement contributions. Ask yourself the following questions, What does your current retirement savings plan look like? Are you on track or do you have to play catch-up? Are you maxing out your 401k, 457b, and IRAs? What are your investment goals and how are those reflected in your portfolio? What plan do you have to create tax free sources of income in retirement? Time doesn’t stand still. By putting your budget and savings plan on the back burner, you give up the opportunity to benefit from time, compound interest, and sustaining good financial habits longer. Proper planning helps you get a sense of your cash flow needs in retirement so that you can define your target and set up your money in a way to reach it. Align your budget with financial goals It's no secret that people hate budgeting. It can be tough to create and stick with, and often takes a lot of work. That’s partially because most people think of a budget as a set of rules that restrict financial freedom, but your budget doesn't have to be restrictive. Reframe your budget in context with your other financial goals. When spending is tied with goals and larger intentions, it makes it easier to be consistent. It also helps you think of a budget as a tool for achieving your goals, rather than a set of limitations. Understand the difference between needs, wants, and wishes. Your needs are typically your fixed expenses like housing, food, and transportation. You have control over these fixed expenses. For example, by buying a house with a smaller mortgage rather than a house with a larger one. We recommend that you save 30%-50% of your income. I know what you’re thinking! That may seem like a lot, but with a proper budget, your higher income will allow for greater cash flow, especially if you start early. If you burn out of your career, become ill, or some other unforeseen incident, you'll be glad that you stashed away savings. For example, if your goal is to retire in 20 years and you make $300,000, your take-home will be approximately $215,000 for a married couple in Virginia with two kids. This means you'll want to consider saving anywhere from $64,500 per year (30% of your take-home) up to $107,500 (50% of your take-home). That may seem steep, but it is very achievable with an intentional budget. You’ve worked are for your education and credentials and you owe it to yourself to make smart decisions now to ensure a secure financial future. Remember, financial success won’t happen without discipline and a budget. Are you ready to take the next step and revamp your budget and get in track for retirement? Schedule a call with our team today. Disclosure: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Hypothetical examples are fictitious and are only used to illustrate a specific point of view. Diversification does not guarantee against risk of loss. While this guide attempts to be as comprehensive as possible but no article can cover all aspects of retirement planning. Be sure to consult an advisor for comprehensive advice. Registration of an investment advisor does not imply a certain level of skill or training.

The second quarter of 2020 was a wild ride for investors. While diversification helped, many investors may have fallen prey to one of the biggest mistakes investors can make. Get your Retirement Checklist of over 30 things that you need to think about for your retirement. Watch our 2nd quarter of 2020 stock market webinar. You'll learn some powerful lessons about markets and investing in retirement, including: How to invest for retirement What types of stocks drive expected returns Understanding 2020 stock market performance Powerful history lessons on election years and market returns Get in Touch With Us Mark Fonville, CFP® Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors . Schedule a free intro call with Mark Disclosure: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Hypothetical examples are fictitious and are only used to illustrate a specific point of view. Diversification does not guarantee against risk of loss. While this guide attempts to be as comprehensive as possible but no article can cover all aspects of retirement planning. Be sure to consult an advisor for comprehensive advice. Registration of an investment advisor does not imply a certain level of skill or training.