2023 Q1 Chesser Report

Paula R. Chesser, CSA
Vice President & Senior Investment Consultant

Hi there,

I hope you have had a great start to your 2023 and that momentum keeps on giving!

Towards the end of 2022, Congress passed an omnibus spending bill that provides funding for various departments throughout the government. Included in that bill was a section titled “Secure 2.0 Act of 2022”, which is a follow-up to the first Secure Act passed in late 2019. This bill addresses a variety of retirement planning topics that will affect how individuals save to, or withdraw from, different retirement savings accounts including delayed RMDs, increased contribution limits, new savings options and more. I highly recommend reading the "Highlights of Secure 2.0 Act" article linked below to see how these changes may affect your specific situation.

What they said, what they bought, when they sold, how they did it. "They" could be a friend, a neighbor, a co-worker, or a buddy at the club. Whoever they are, they can be one of the biggest obstacles to success for Advisors and their clients. Take a read through the "They" article below to learn some sage advice.

You may have noticed the Chesser Report received a face-lift! Going forward, these educational newsletters will be found exclusively on my website under Educational Resources on the "Paula's Wealth Planning Wisdom" page. There you will also find the Paula's Next Guest video series where I host industry experts to discuss timely topics including the market, economy, legislative landscape and other educational resources. Let me know what you think of the updated Chesser Report!

Looking forward to servicing your Wealth Management needs in the coming year!

Warm Regards,

Paula

Advanced Planning Thought Leadership

Highlights of Secure 2.0 Act

Delayed RMDs, increased contribution limits, new savings options and more...

Take the Headaches Out of Tax Season

Simple steps you can take to reduce headaches for you and your CPA...

"They"

What they said, what they bought, when they sold, how they did it...

Ask Paula

Dear Paula,

I hope you're doing well! I wanted to get your thoughts on my current situation...

To give you a bit of background, I am 46 years old, married with two teenage kids, and both my wife and I have great careers in the healthcare industry. We regularly contribute the maximum amounts to our 401ks, have a savings account with approximately $250,000 and a brokerage account with $400,000.

Unfortunately, my father passed away recently after a long battle with cancer. While we are going through the estate process, I was informed I will be inheriting a little over $7,000,000 from a combination of his retirement, brokerage and savings accounts. My father and I never really discussed his finances, so this was a complete shock to me when I found out.

Since I had not anticipated inheriting this amount, I feel pretty unprepared. So my questions to you are, what can I do now to set myself up to receive my father's assets when the estate is settled? What would you recommend I do with these assets once I receive them?

Thanks!
James

Dear James,

I am very sorry for your loss, please accept my sincerest condolences. Losing a loved one is never easy and sometimes that loss comes with feelings of shock and gratefulness all at the same time.

Individuals can receive inheritance money in different ways including through a trust and from a will, which can come with restrictions, or as a beneficiary on a bank or retirement account.

The first step is to develop a Wealth Management relationship with an Advisor who specializes in navigating client's life phases and has a repeatable process. Create your personalized Lifestyle Wealth Plan as this will assess risk and asset allocation, diversification, the impacts of income tax, longevity and capital market assumptions, as well as include lifestyle short, mid and long range goals. The outcomes of a Lifestyle Wealth Plan provide you the knowledge that can then drive your future inheritance decision making, knowing you are on a path to achieve all that is important to you.

Let me know if you wish to discuss further!

Warm Regards
Paula

Meet the Team

Paula R Chesser, CSA
Vice President & Sr Investment Consultant
pchesser@rwbaird.com

Dean Brennan

Client Specialist

dbrennan@rwbaird.com

Team Paula’s successful wealth management practice assists Very High-Net-Worth Yacht Owners, Sucessful Business Owners, and Multi-Generational Families in navigating 5 key areas: 1) wealth preservation, 2) tax mitigation, 3) taking care of heirs, 4) protecting assets, and 5) analyzing charitable options. Professional licenses include Series 7, 66 and life & long-term care insurance.

Team Updates

As per our holiday tradition, we participated in the Caring for Kids, Inc. Holiday Drive!