• Inheriting Wealth: How to Preserve and Grow Your Family’s Legacy

    Inheriting wealth can be a life-changing event, but it also comes with a great responsibility to preserve and grow your family’s legacy. Whether you receive an inheritance from a parent, grandparent, or another family member, it’s important to have a plan in place to use the wealth wisely and continue to benefit future generations. In this article, we will provide guidance on how you might preserve and grow your family’s legacy after inheriting wealth.

    Educate Yourself on Financial Management

    To effectively manage an inheritance, it’s important to have a basic understanding of financial management. This includes knowledge of financial concepts such as budgeting, saving, investing, and debt management. If you don’t have this knowledge, consider taking a personal finance course or working with a financial advisor to develop a financial plan that aligns with your goals and values.

    Assess Your Current Financial Situation

    When inheriting wealth, it can be tempting to make big moves right away, such as paying off your mortgage. However, before making any decisions with your inherited wealth, take the time to assess your current financial situation. This includes reviewing your income, expenses, debts, and any existing investments or savings. By having a clear understanding of your financial position, you can make informed decisions about how to best use your inheritance to benefit your family now and into the future.

    Consider Tax Implications

    Inheriting wealth can also come with tax implications. Depending on the type and size of the inheritance, you may be subject to estate or inheritance taxes. It’s important to understand these tax implications and work with a financial advisor or tax professional to develop a tax strategy that minimizes your tax liability and preserves your family’s wealth.


    Related Article: Passing an Inheritance To Your Children: 8 Important Considerations


    Develop a Long-Term Plan

    When inheriting wealth, you may want to develop a long-term plan that considers the needs of future generations. This includes setting financial goals, developing an investment strategy, and creating an estate plan. Research shows that up to 70% of families lose their wealth by the second generation, so having a long-term plan can help your family avoid that common fate.

    Communicate with Your Family

    Inheriting wealth can be a sensitive topic, and it’s important to communicate with your family about your plans and intentions. This includes discussing your long-term plan, setting expectations, and ensuring that everyone is on the same page. Open and honest communication can help prevent misunderstandings and ensure that your family’s legacy is preserved.

    Consider Philanthropic Opportunities

    Inheriting wealth can also provide opportunities to make a positive impact on your community and the world. Consider philanthropic opportunities that align with your family’s values and interests. This can include donating to charitable organizations, establishing a family foundation, or funding scholarships for deserving students.

    Final Thoughts on Inheriting Wealth

    Inheriting wealth can be a life-changing event, but it also tends to come with feelings of responsibility to preserve and grow your family’s legacy. To effectively manage an inheritance, it’s important to educate yourself on financial management, assess your current financial situation, consider tax implications, develop a long-term plan, communicate with your family, and consider philanthropic opportunities. By taking a thoughtful and strategic approach, you can preserve and grow your family’s wealth and leave a lasting legacy for future generations.

    If you think you would benefit from a conversation about inheriting wealth, contact Lane Hipple Wealth Management Group at our Moorestown, NJ office by calling 856-638-1855, emailing info@lanehipple.com, or to schedule a complimentary discovery call, use this link to find a convenient time.

    Illuminated Advisors is the original creator of the content shared herein. I have been granted a license in perpetuity to publish this article on my website’s blog and share its contents on social media platforms. I have no right to distribute the articles, or any other content provided to me, or my Firm, by Illuminated Advisors in a printed or otherwise non-digital format. I am not permitted to use the content provided to me or my firm by Illuminated Advisors in videos, audio publications, or in books of any kind.

  • The New Retirement Rules

    Highlights of the SECURE Act 2.0

  • 5 Ways a Financial Advisor Can Help You Prepare for Tax Season

    A Strong Tax Strategy is Part of a Thoughtful, Comprehensive Financial Plan

    Tax season is upon us and, while not every financial advisor is a Certified Public Accountant (CPA), that doesn’t mean they can’t be helpful. Your financial advisor can assist you with making strategic tax moves throughout the year to help reduce your overall tax burden. As you read below, keep in mind that the sooner you begin having these conversations with your advisor about your tax strategy, the better off you’ll be at tax time.

    Finding Ways to Maximize Your Tax Savings

    There are many financial moves you can make throughout the year that will result in paying lower taxes, and a financial advisor will be educated about them. For example, some investment accounts let you make tax-deferred contributions, which can offer you the opportunity to save money on taxes while working to build your retirement savings. Take a company-sponsored 401(k), for instance. If you max out your contributions to this account, all of the money going in is pre-taxed, so you’ll be putting money away for retirement while reducing your tax bill in the present.

    Keeping Record of Your Capital Gains and Losses

    When filing your taxes, you’ll have to know how much you earned and lost from your investments for that year. A financial advisor will have an accurate and consistent record of your investments, which they can give to your accountant on your behalf. This will save you time and energy, and help you ensure you’re paying appropriate capital gains tax, without over-paying.

    Developing a Tax-Savvy Gifting Strategy

    There’s a lot to be gained when we gift our money to others. Not only do you get the intrinsic rewards associated with the joy and meaning that comes from helping others, but you can enjoy valuable tax benefits, too. Sit down with your financial advisor and discuss how you can gift your money in ways that ultimately help lower your tax bill, too. And this isn’t just for charities; if you want to give money to your family members for any reason, there are plenty of gifting strategies that let you transfer your wealth without a tax penalty. Check-in with your financial advisor before making any gifts so you can be sure to maximize the opportunity.


    8 Considerations For Passing an Inheritance To Your Children


    Minimizing the Tax Burden that RMDs Bring

    Once you reach the age of 73, you’ll have to begin taking out Required Minimum Distributions (RMDs) from any IRA or 401(k) accounts that you have. While this comes as no surprise, often the uptick in your tax bill from having to pay income tax on those distributions does come as a surprise to retirees. A financial advisor will be able to provide you with management strategies so that you can lower your tax liabilities and be more prepared when the time comes to begin taking distributions.

    Determining Tax-Efficient Investment Strategies

    Although a financial advisor can’t necessarily protect you from capital gains tax, they will be able to help you by implementing strategies such as tax-loss harvesting, offsetting gains with losses, and avoiding issues such as “phantom tax,” which limit your overall tax liability. So, they’ll not only be able to help you manage and balance a portfolio, but they’ll be able to ensure you’re following the best investment strategies to benefit you the most when it comes time to file your taxes.

    Do You Need a Financial Advisor to Assist with a Tax Strategy?

    The world of taxes can be incredibly confusing, especially considering they’re constantly changing depending on the economy and new legislation. Having a financial advisor you trust is an important addition to your tax planning arsenal. A financial advisor can guide you throughout the year to ensure you’re making the best financial choices to help boost your tax strategy, with the ultimate goal of allowing you to save more of your hard-earned dollars.

    If you think you would benefit from a conversation about your tax strategy, contact Lane Hipple Wealth Management Group at our Moorestown, NJ office by calling 856-638-1855, emailing info@lanehipple.com, or to schedule a complimentary discovery call, use this link to find a convenient time.

    Illuminated Advisors is the original creator of the content shared herein. I have been granted a license in perpetuity to publish this article on my website’s blog and share its contents on social media platforms. I have no right to distribute the articles, or any other content provided to me, or my Firm, by Illuminated Advisors in a printed or otherwise non-digital format. I am not permitted to use the content provided to me or my firm by Illuminated Advisors in videos, audio publications, or in books of any kind.

  • 5 investment ideas for small-business owners struggling to keep their finances liquid

    Three local financial experts share their advice.

    Andrew Hipple has advice on how small business owners (and individuals) can take advantage of the rise in interest rates.
    Andrew Hipple has advice on how small business owners (and individuals) can take advantage of the rish in interest rates. (photo credit: Steven M. Falk / Inquirer Staff Photographer)

    Written by Gene Marks

    Even as commercial lending rates have more than doubled in the last year, interest rates earned on checking, money market and savings accounts remain stubbornly low as banks seek to maintain their profitability.

    That’s not helpful for business owners, who need to earn money on their cash reserves while keeping enough liquidity to meet faily working capital needs. Options remain limited, but the environment is slowly changing, and a number of investment choices with minimal risks are emerging.

    Click here to read full article from the Philadelphia Inquirer, featuring Andrew Hipple CFP®, Partner at Lane Hipple Wealth Management Group.

  • Financial Tips for Doctors with Student Loan Debt

    How to Get Strategic About Tackling Your Medical School Costs

    Medical school can certainly be viewed as an investment – but it’s a costly one. Statistics show that the average student loan debt for college students is $28,950, while the average medical school debt is around $200,000. Even for doctors who are earning high salaries, it can be challenging to pay down such a hefty amount of educational debt.

    Feeling burdened by debt can seriously impact your finances, but it can wreak havoc on your emotional and physical well-being, too. 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. Below are five tips to help you get started.

    First: A Word on Federal Student Loan Forgiveness for Doctors

    At this article’s writing, President Biden’s student loan forgiveness program is tied up in the courts and it remains unclear when borrowers may get final answers on whether they qualify for any form of federal loan forgiveness. However, it should be noted that some doctors could eventually qualify for medical school loan forgiveness. Get updates here as they come.

    Now, onto helpful tips that doctors can use to pay off student loan debt.

    Tip #1: Don’t Throw All Your Money at Your Loans

    It’s tempting to want to discharge your debt as quickly as possible, but it’s important to budget out your paycheck to fund other priorities, too. This means putting some money into a savings account to establish an emergency fund so that you’re protected from the unexpected, and thinking about other financial goals you’re working towards, too.

    Should you amass huge savings? No, not while you have significant debt. However, you should save at least three to six months’ worth of expenses so that you have a solid amount to fall back on should life throw you a curveball – which it’s bound to do at some point. The last thing you want to do is increase your overall debt because you didn’t have the funds to cover an unforeseen expense.

    Tip #2: Investigate Income-Driven Repayment Options

    You may be able to ease your student loan debt through the federal income-driven repayment program. They set your monthly student loan payment to an amount that is deemed to be affordable based on your income and family size. Often, your payments can be adjusted to around 10% of your discretionary income amount. Discretionary income is determined by taking the difference between your Adjusted Gross Income and 150% of the federal poverty guideline.

    Income-based repayment plans can be quite advantageous from a cash-flow point of view. However, when taking on any new payment plan, be sure to also consider any anticipated medical school loan debt forgiveness, any risk of capitalizing interest, and potential tax consequences.

    Tip #3: Refinance Cautiously

    Oftentimes, you’ll come across options to refinance your loans at a lower rate through private lenders. This can be a smart move if the loans are equal, though that isn’t always the case. You may end up taking on more risk through a refinance than originally intended, so proceed with care.

    Though it might not be obvious at first glance, federal student loans come with several benefits that refinanced loans don’t have. For example, with federal student loans, you can qualify for income-driven repayment programs, public service loan forgiveness opportunities, and more forgiving ways of dealing with financial setbacks such as long-term disability. So, before refinancing medical school debt, doctors should consider all factors and carefully weigh the pros and cons of a refi.

    Tip #4: Avoid ‘Lifestyle Creep’

    This is a concept that can be detrimental in any profession, but high earners such as doctors can be particularly susceptible. As you get more established in your medical career and begin to see your hard work reflected in your paycheck, it can be tempting to begin introducing more luxury into your lifestyle or to increase your spending. While you don’t have to deny yourself material rewards like a big house or fancy car, be sure that you’re budgeting appropriately and not getting carried away. For example, a pay increase should never always go to new lifestyle expenses. Be sure to increase your savings and investments, too.

    Prioritize building an emergency fund, think about your mid-term savings goals, always work to max out your retirement accounts, and pay extra on your student loan debt, too. After your financial responsibilities are satisfied, then you can indulge in more lifestyle spending with the knowledge that you’re on firm financial footing.

    Tip #5: Tackle High-Interest Loans with Gusto

    Some people tackle large amounts of debt by paying off smaller loans first, which is called the snowball method. However, note that the benefit of paying off your debts this way is purely psychological. The idea is that each small debt you pay off will motivate you to continue on to larger ones. Financially speaking, there’s no real benefit to paying off smaller loans before others. For doctors with significant student loan debt, paying off your loans with the highest interest rates first allows you to pay less in interest over time and more towards the loan principal – a savvier strategy for your financial outlook.

    Are You a Doctor Chipping Away at Student Loan Debt?

    To achieve your dream of entering the medical profession, you’ve likely invested time and money and made countless personal sacrifices, too. And while your career may be rewarding, it’s also normal to feel the heavy burden of medical school loan debt. If you think you would benefit from a conversation about your debt repayment strategy or your overall financial plan, contact Lane Hipple Wealth Management Group at our Moorestown, NJ office by calling 856-638-1855, emailing info@lanehipple.com, or to schedule a complimentary discovery call, use this link to find a convenient time.

    Illuminated Advisors is the original creator of the content shared herein. I have been granted a license in perpetuity to publish this article on my website’s blog and share its contents on social media platforms. I have no right to distribute the articles, or any other content provided to me, or my Firm, by Illuminated Advisors in a printed or otherwise non-digital format. I am not permitted to use the content provided to me or my firm by Illuminated Advisors in videos, audio publications, or in books of any kind.