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3 Considerations for a Smooth Transition There's a reason family remains at the heart of 32 million U.S. businesses that account for 54% of our gross domestic product (GDP) and 59% of the country's employment. 1 Successful family-owned businesses tend to share certain qualities like deep industry expertise, longstanding customer relationships, and more flexible business structures, providing greater agility and faster responses to change. Many embrace strong family values and share a passion for creating opportunities for economic advancement in the communities where they live and work. These deep community ties help to further enhance customer trust and loyalty, which leads to business longevity. Yet, despite these strengths, succession remains a critical challenge for family businesses. Only 30% of family-owned businesses successfully transition to the next generation, with roughly 12% making it to the 3rd generation, and only about 3% continuing on to the 4th generation. 2 Overcoming the odds Proactive planning is critical for ensuring the smooth transition of ownership and management to the next generation. Planning helps to ensure the right legal documents are in place while addressing any gaps in leadership, family conflicts, liquidity issues, and more. With proper guidance and preparation, family businesses can overcome these and other challenges. To get started, consider the following steps: Prioritize communication Trust and transparency are key to building and maintaining relationships among all stakeholders, which may include key employees or other non-family contributors, or family members who do not actively participate in the business. Consider establishing a Family Council to promote communication around topics including roles and responsibilities, business finances, and future plans for the business. A Family Council provides a forum for family members to discuss and address issues impacting the business and its future while also helping to create a healthy separation between personal family matters and business matters. In many cases, enlisting the help of an independent business exit planning advisor can reduce the potential for family conflict. As an independent third-party, your advisor can communicate complex or contentious matters to family members, educate them on business wealth strategies aligned with your family values, or serve as a mediator if disagreements do arise. Draw up a Family Constitution Another way to help strengthen communication is to create a Family Constitution. The Family Constitution seeks to prevent conflicts that can tear families apart and diminish fortunes by establishing a set of rules around the family's wealth and core values. It creates a governance structure for navigating your family's affairs, resolving conflict, and reducing complexity. You can create this document yourself or enlist one of your professional advisors to help, such as your legal or wealth advisor. While it is not a binding legal agreement, a Family Constitution can help eliminate family discord by increasing clarity and obtaining buy-in from all stakeholders. This is especially important when it comes to making decisions about who will actively lead and participate in the family business, and how business profits are distributed among contributing family members and those with no direct control or involvement in the business, as the business grows in value. An effective Family Constitution should specify: How wealth is to be used by family members Any limitations on spending, investing, or donating family wealth Who is responsible for making investment and wealth distribution decisions How other family members can provide input or impact decision making How family members can work together to perpetuate family values and preserve wealth for future generations Protect everyone's interests with a buy-sell agreement One of the greatest risks family-owned businesses face is the unplanned sale of a stakeholder's share in the business. This is especially disruptive if the business lacks the liquidity to buy out a stakeholder, or if a family member seeks to sell their ownership stake to an outside party, without consensus from other family members. Putting a buy-sell agreement in place can help mitigate these and other risks to family unity and business continuity. A buy-sell agreement is a legally binding document that helps to ensure a friendly and orderly succession of the business by: Setting the terms and conditions for the sale and purchase of shares of the business in the event of death, disability, divorce, disagreement or distress Protecting the family's control of the business' equity by establishing decision-making criteria and processes governing the sale, transfer, and succession of ownership Addressing liquidity options and how transactions will be funded Including an agreed-upon method for valuing shares upon a sale Buy-sell agreements can also help create long-term value for the business and its stakeholders by addressing risks outside of a sale or transfer of ownership. For example, anyone with a vested interest in your company may require you to have a buy-sell agreement in order to do business with your company. Without it, you may not be able to get a loan to fund capital equipment or business expansion goals, or you may lose a client that can't bear the potential risk of a disruption to your business. To find out how a well-drafted buy-sell agreement can help protect the interests of stakeholders while creating a path for the multigenerational longevity of your family business, listen to our latest podcast episode of Frank Wealth Insights. To learn how your team of independent wealth planning professionals at Return on Life® Wealth Partners can help you and your family pursue the Return on Life® you desire, contact us today for a free consultation. About Return on Life® Wealth Partners Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in 1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals, families, and business owners. By examining clients' lives before their money, Return on Life® aligns its advice with clients' values. This personalized approach also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®. 1 Conway Center for Family Business, MAY 2025, https://www.familybusinesscenter.com/resources/family-business-facts/ 2 Family Enterprise USA, 28 NOV 2023, https://familyenterpriseusa.com/feusa/family-businesses-74-thrive-30-years-reveals-research/ Important information This blog post is for informational and educational purposes only and does not constitute investment, legal, or tax advice. Return on Life® Wealth Partners is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. The views and opinions expressed are those of the author(s) and do not necessarily reflect the official policy or position of the firm. Any strategies discussed may not be suitable for all individuals and are not guarantees of future results. Investing involves risk, including the possible loss of principal. Readers should consult their own financial, legal, or tax professionals before acting on any information presented. Investment advisory services offered through Planned Financial Services, LLC, dba Return on Life Wealth Partners, an SEC-Registered Investment Adviser. For additional information related to our services, please visit https://adviserinfo.sec.gov/firm/summary/112879 Copyright © 2025 Planned Financial Services, LLC. All Rights Reserved.

The following article was originally written by Cicely Jones and published by Forbes on May 31, 2024. You are much more likely to achieve a goal when you have an accountability partner. In fact, according to a study on accountability done by the Association for Talent Development, choosing a goal — as well as committing and deciding when and how to accomplish it — only leads to a 50% likelihood of goal completion. Having a specific accountability appointment with someone you've committed to increases the likelihood of completing the goal to 95%. In planning for your financial future, having an accountability partner whom you meet with regularly improves your chances of hitting goals like retiring by a certain age, purchasing a home, starting a business, saving for college, and many more. Here is how to choose someone to help you hit your financial goals. Enlisting Accountability Partners Before you enlist an accountability partner, you've got to do a little work on your own. Choosing your specific goals, committing to yourself, deciding when you'd like to achieve them, and planning how to achieve them are all pre-work. Once you do these tasks, you'll want to find a person whom you can schedule specific accountability meetings with on a regular basis (at least once per year, depending on the goal). Accountability partners can come in all shapes and sizes. They can be just there to listen to you or there to both hold you accountable and give advice. They can be personal contacts, like friends and mentors. They can also include professionals, like qualified financial professionals, lawyers, and coaches. Many people have mentors and individuals whom they trust in their lives. The same people who help you successfully navigate career and personal decisions may not be the biggest assets when it comes to financial advice. A client told me a story about how he received an inheritance and wanted to use that money to fund a home purchase two years later. His personal mentor recommended that instead of investing in a stable option that would provide modest growth over the two years, he should gamble on a speculative stock that the mentor thought was sure to go up. The investor followed the advice and experienced severe losses shortly after executing the decision. The advice by the mentor was not malicious, just misinformed. Here are some things to look out for in choosing your own financial accountability partner. Personality In seeking an accountability partner, you will want to find someone who can listen to your goals and experience without passing judgment, while only offering solutions if you specifically ask. If someone isn't going to listen to you or is going to make something about themselves, this person may not be the best fit for helping keep you on track for your financial goals. Relationship Your relationship with your accountability partner also impacts the quality of this person's ability to support you in reaching your financial goals. If you have a therapist, that type of professional probably can give you a better objective perspective on a conflict with a friend than if you asked a different friend. Additionally, if your relationship does not allow for you to feel comfortable taking this person's advice, it may be time to seek out another accountability partner. I know some extremely well-qualified financial professionals who will not work with their own family members because of the relationship dynamics. I once had a financial professional ask me to take over his family's investments because they refused to listen to him and thought they knew better than his recommendations. Since working with them, I've had an incredibly smooth relationship and we communicate well even though the overall investing strategy has remained consistent. Education If you want accountability and you are going to take advice from this accountability partner, the person needs to be able to give educated advice. While it is possible for someone to learn about concepts on social media, through videos, and through internet research, these sources may not always yield reliable results. If someone studied economics, investing, taxation, or finance at their university, they may have a base of knowledge to draw on when discussing your goals with you. If you're seeking a professional as an accountability partner, ensuring the person has proper investment licenses and relevant credentials can provide evidence of a sufficient knowledge base. Experience If your potential accountability partner has limited investment experience, take that person's advice with a grain of salt. Someone who has a lot of experience relevant to your specific goals could be able to provide valuable insights. Experience with personal investing can be a tricky thing to measure with loved ones because of inherent cognitive errors many investors make, including the tendency to attribute investment successes to personal prowess and failures to external factors. Investing experience among professionals can be a little easier to measure because you can look to total years of experience, licensing levels, the number of firms they've worked with, and if they have any client complaints through public sources. Conclusion You are much more likely to achieve your goals with the support of an accountability partner. When searching, you should seek someone who is a great listener, nonjudgmental, can put you first, and has relevant education and experience. If you do not have someone like that in your personal life, it may be time to seek out a qualified financial professional. Important information: By Cicely Jones, Contributor © 2025 Forbes Media LLC. All Rights Reserved. This article was legally licensed through AdvisorStream. This article was originally written by Cicely Jones and published by Forbes. It is third-party content legally licensed through AdvisorStream and does not necessarily reflect the views of Return on Life Wealth Partners. This content is provided for informational and educational purposes only and should not be construed as personalized investment advice, a recommendation, or a solicitation to buy or sell any security. Always consult with a qualified financial professional before making any financial decisions. Mention of any third-party individuals, companies, or websites is provided for informational purposes only and does not constitute endorsement or affiliation unless explicitly stated. For additional information related to Return on Life Wealth Partners' services, please visit https://adviserinfo.sec.gov/firm/summary/112879 Investment advisory services offered through Planned Financial Services, LLC, dba Return on Life Wealth Partners, an SEC-Registered Investment Adviser.

While women continue to make significant gains in the workforce, their road to and through retirement is often hampered by circumstances outside of their control. While women outnumber men among U.S. college-educated professionals and hold 35% of jobs in the country's 10 highest-paying occupations, the gender pay gap persists. In fact, it has only narrowed slightly over the past two decades. In 2024, women earned an average of 85% of what men earned, compared to 81% in 2003. 1 Unpacking the gender wealth divide The wage gap, which naturally translates to a savings gap, can be detrimental for women whose average lifespans typically outpace those of their male counterparts. According to the Social Security Administration, the life expectancy for women is currently 81.6 years compared to 76.7 years for men. Women's longevity is an important consideration and risk factor for retirement since the longer you live, the longer your money needs to last to support your lifestyle and healthcare needs. However, even when women make the same or more money than their male counterparts, they tend to spend more time out of the workforce than men, caring for children or sick or aging family members. This can hinder women's ability to maximize savings during their peak earnings years leading up to retirement. Women are also more likely than men to retire early to accommodate the care needs of a spouse or aging parent. This can lead to women taking Social Security benefits earlier than planned, resulting in a significantly smaller monthly benefit for life than if they were able to wait until full retirement age or later to begin taking benefits. All of these factors point to why comprehensive financial and retirement planning is critical for women. Overcoming wealth building challenges Despite the challenges you or the women you know may face, there are steps you can take now to build confidence in your financial future. 1. Take advantage of opportunities to reduce taxes and supercharge savings Seeking opportunities to reduce taxes can ensure more of your hard-earned money is working for you. Workplace benefits such as tax-advantaged flexible spending accounts (FSAs) allow you to pay for certain healthcare and childcare expenses with pre-tax dollars. You can reduce your taxable income even more by making pre-tax contributions to a 401(k), 403(b) or similar qualified retirement plan, while maximizing retirement savings. In 2025, you can contribute up to $23,500 to your employer's plan if you're under age 50 If you're age 50 - 59, or age 64 or older, you can contribute an additional $7,500 in catch-up contributions, for a total of $31,000 for the year And thanks to the new "super" catch-up contribution introduced in January 2025, workers ages 60 - 63 can now contribute an additional $3,750 to their employer-sponsored retirement accounts, for a total catch-up contribution of $11,250. 2 That can make a significant difference in savings as you near retirement. 2. Don't underestimate how much you will need Many women are surprised to learn how much of their income Social Security is expected to replace in retirement. According to the Social Security Administration, for the average earner, benefits only replace about 40% of pre-retirement income. That makes other sources, such as a pension, employer retirement plan savings, and personal savings critical for meeting all of your lifestyle needs in retirement. Keep in mind, in many cases, women may qualify for a higher monthly Social Security benefit based on a current or former spouse's earnings record versus their own record. Since Social Security claiming strategies are complex, it makes sense to work with an independent wealth advisor familiar with the unique financial planning challenges and considerations women face to develop a strategy for how you will pursue your income goals in retirement. 3. Choose the right partner for your journey Life's transitions can provide women with opportunities as well as obstacles. Major life changes, such as a new job or promotion, birth of a child, change in marital status, or milestone events like retirement or becoming an empty nester may require adjustments to your strategy, goals, and timeline. We believe that working closely with experienced wealth advisors who take the time to get to know you and your family and follow a disciplined and tailored approach to pursuing your goals is critical for navigating life's transitions. Meeting regularly with your team of advisors can help you prioritize the things that are most meaningful in your life and put a tailored place in place to help you remain on course toward your goals. To learn more about strategies for overcoming the gender wealth gap, listen to our latest podcast episode of Frank Wealth Insights with guest speaker and wealth advisor Chelsea Hussey CLU®, ChFC®, CFP®. To learn how your team of independent wealth planning professionals at Return on Life® Wealth Partners can help you and your family pursue the Return on Life® you desire, contact us today for a free consultation. About Return on Life® Wealth Partners Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in 1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals, families, and business owners. By examining clients' lives before their money, Return on Life® aligns its advice with clients' values. This personalized approach also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®. 1 Pew Research Center, 04 MAR 2025, https://www.pewresearch.org/short-reads/2025/03/04/gender-pay-gap-in-us-has-narrowed-slightly-over-2-decades/ 2 Before catch-up contributions can be made, participants must first contribute the maximum annual amount of $23,500 for 2025 to their employer plan. Participants must be ages 60, 61, 62, or 63 by the end of the calendar year to be eligible to make an additional $3,750 "super" catch-up contribution. Once participants turn 64, they revert to the standard $7,500 catch-up contribution amount for ages 50 - 59, and ages 64 and older. Employers are not required to offer the super catch-up contribution option. Plan participants should check with their employer to determine if this feature is available in their retirement plan. Important information: Securities and Retirement Plan Consulting Program advisory services offered through LPL Financial, a Registered Investment Advisor, member FINRA / SIPC. Investment advisory services offered through Planned Financial Services, LLC, dba Return on Life Wealth Partners, an SEC-Registered Investment Adviser and separate entity from LPL Financial. The information provided in this document is for informational purposes only and should not be construed as investment, tax, or legal advice. While we strive to provide accurate and up-to-date information, there are no guarantees that the strategies discussed will achieve the intended outcomes. Individual results may vary depending on factors such as market conditions and personal circumstances. All examples and case studies are hypothetical and provided for illustrative purposes only. The strategies discussed may not be suitable for every individual or financial situation. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. Tax laws are subject to change and should be discussed with a qualified tax professional. Any references to Social Security benefits or claiming strategies are general in nature and should not be relied upon without consulting with your own financial or retirement planning advisor. Eligibility, benefit amounts, and strategies may vary based on personal earnings history and marital status. Mention of any third-party individuals, companies, or websites (including the Social Security Administration, Pew Research, and LPL Financial) is provided for informational purposes only and does not constitute endorsement or affiliation unless explicitly stated. For additional information related to our services, please visit https://adviserinfo.sec.gov/firm/summary/112879 Copyright © 2025 Planned Financial Services, LLC. All Rights Reserved.

Published: 02/25/2025 Strategies for Optimizing Executive Benefits Planning Executive compensation refers to the financial and non-financial benefits awarded to business owners, senior managers, and key employees of companies as a means for attracting, retaining, and rewarding top talent. Executive compensation packages usually include a mix of wage income, bonuses, equity stakes, and other perks subject to complex tax rules, deadlines, and regulations. With so many moving parts, it can be easy for busy executives to overlook opportunities or make costly mistakes where these valuable benefits are concerned. Below are three challenges business owners and executives often encounter in managing C-suite compensation and ways to help avoid them. 1: Missed opportunities to defer income In our view, deferring taxes on executive compensation may be considered the key to keeping more of your earnings working for you and your family. One way to do this is by contributing to your company retirement plan, which may allow you to take advantage of company matching contributions and make catch-up contributions if you're age 50 or over. However, you may be less familiar with other ways to help maximize savings and defer income beyond a 401(k) or similar defined contribution plan. Retirement planning strategies for executives may include non-qualified retirement plans, backdoor Roth IRAs, and defined benefit plans. To understand how different plans and strategies can help you manage your tax burden as you pursue your long-term goals, consider working with an experienced wealth advisor who specializes in corporate retirement plan strategies and executive compensation solutions. 2: Overconcentration in company stock When salary, bonuses, stock options, and other forms of deferred compensation all come from the same company, that can result in a concentration of wealth, which can pose a number of risks. For example, when a significant portion of executive compensation is tied up in company stock it can create liquidity constraints. If the stock price experiences a sharp decline and you have a need for cash shortly thereafter, you may be forced to sell shares at an inopportune time or take a loss. Diversification can help mitigate the risks of concentrated wealth from executive compensation or other sources. Diversification is the process of spreading assets across multiple investment types and asset classes to help reduce exposure to any one security or asset class. This can be accomplished by allocating heavy concentrations of company stock into other assets that may be less correlated to your company and industry. We believe doing so requires a tax-smart strategy governing the sale and reinvestment of shares that incorporates tax-loss harvesting. 3: Lack of a comprehensive plan As your wealth grows, managing it also becomes more complex. Since executive compensation adds an additional layer of complexity to managing taxes, retirement income, cash flow, and philanthropic goals, estate planning could be considered essential. Failure to create or update your estate plan has the potential to lead to higher estate taxes, delays in asset distribution, and family conflict among your heirs and beneficiaries. A wealth advisor experienced in the intricacies of business and financial planning for high earners can not only help you develop a comprehensive financial plan, but coordinate strategies and advice received from your other advisors, including legal and tax professionals. This coordinated approach can help ensure you're receiving the personalized and relevant advice you require, and that tax-smart strategies are implemented on a timely basis to help optimize executive benefits planning. To learn more about executive compensation strategies, listen to our latest podcast episode of Frank Wealth Insights. To learn how your team of independent wealth planning professionals at Return on Life® Wealth Partners can help you and your family pursue the Return on Life® you desire, contact us today for a free consultation. About Return on Life® Wealth Partners Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in 1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals, families, and business owners. By examining clients' lives before their money, Return on Life® aligns its advice with clients' values. This personalized approach also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®. Important Disclosures: The information provided in this document is for informational purposes only and should not be construed as investment, tax, or legal advice. While we strive to provide accurate and up-to-date information, there are no guarantees that the strategies discussed will achieve the intended outcomes. Individual results may vary depending on factors such as market conditions and personal circumstances. Tax laws and regulations are subject to change, and strategies outlined may not be suitable for all individuals or entities. Consult with a qualified tax professional regarding your specific tax situation. Securities and Retirement Plan Consulting Program advisory services offered through LPL Financial, a Registered Investment Advisor, member FINRA / SIPC. Investment advice offered through Planned Financial Services, LLC, a Registered Investment Advisor and separate entity from LPL Financial. For additional information related to our services, please visit https://adviserinfo.sec.gov/firm/summary/112879 This information is not intended to be a substitute for individualized insurance, tax, or legal advice. We suggest that you discuss your specific issues with a qualified advisor. Investment strategies and recommendations are subject to risk, including the potential loss of principal. Diversification and tax-smart strategies are designed to manage risk but do not guarantee a profit or protect against loss in declining markets. Always consider your personal financial situation and risk tolerance before making investment decisions. Non-Qualified Plans and Backdoor Roth IRAs: The strategies referenced, such as non-qualified retirement plans and backdoor Roth IRAs, are subject to complex regulations and may not be appropriate for every investor. Please consult with a qualified financial professional before pursuing these strategies. Past Performance Disclaimer: Past performance is not indicative of future results. Any performance data included herein is based on historical data and should not be relied upon as a prediction of future performance. Copyright © 2025 Planned Financial Services, LLC. All Rights Reserved.

Enter the New Year with a Fresh Financial Perspective The new year is a time when many people commit to replacing less-desirable habits or practices with behaviors intended to improve their quality of life or that lead to better physical and mental health outcomes. Your financial well-being can also benefit from incorporating habits that can help you live life more intentionally along the path to pursuing your goals. To help strengthen your financial foundation in the new year, start with the four financial planning strategies listed below. 1. Revisit your goals Without defined goals, it can be hard to live life intentionally. Think of your goals as markers or posts along the path to accomplishing what you want out of life. They not only help you navigate your chosen path but gain a sense of accomplishment as interim goals are met. That's among the many reasons why we believe that goal setting is a critical component of financial planning. Plan to reevaluate your goals at least annually and update them as your life and circumstances change. In our opinion, this can help ensure that each financial decision you make, from daily spending to investment decisions, supports the objectives set forth in your financial plan. 2. Don't let past decisions weigh you down Whether you're establishing new goals or recommitting to prior goals that may have fallen short, such as paying down debt or increasing retirement savings, it's important that you don't allow poor past decisions to dictate your future. Not only will it prevent you from moving ahead, but it may result in falling further behind. Learning from prior decisions – both good and bad – plays a key role in the financial planning process to help keep you moving forward. Begin by evaluating the financial decisions you made over the past year relative to spending, saving, investing, and managing debt. How did these decisions support or detract from your overall financial plan? Think about what you could do differently going forward, and adjust your goals accordingly. For example, if overspending led you to take on more credit card debt than planned, reevaluate your budget to see if there are areas where you could cut spending to help pay down debt faster. If you don't currently follow a budget, commit to putting one in place. Following a budget is a critical financial planning strategy for identifying and tracking each dollar that comes into your household in the form of income and leaves your household in the form of taxes and expenses. 3. Keep a close eye on taxes While we often think of the first quarter of the year as "tax season," if you want to ensure you're not paying more than your fair share, tax planning needs to be a year-round endeavor. Tax management is a key component of a financial planning strategy designed to not only help you remain on track toward your long-term goals, but pursue them in an effective and efficient manner. Keep in mind, all financial decisions have tax consequences. As a result, tax management encompasses all facets of financial planning from strategies that seek to maximize the use of tax-advantaged accounts, to gifting, charitable giving, estate planning, income protection strategies, and more. 4. Enlist the help of professional advisors Whether you're seeking to incorporate tax-smart strategies, or ensure your investment strategy is on track, consider working with professional advisors who bring the credentials and experience to assist with even the most complex financial planning challenges. An experienced team of legal, tax, and financial professionals are not only well-equipped to provide guidance but can recommend and implement tailored strategies that align with your needs and goals. Your professional advisors can help keep you up to date on changing market and economic conditions, state and federal laws impacting your taxes and estate planning, and other aspects of financial planning that can be hard to keep up with on your own. Your wealth advisor can help you take intentional steps toward what we refer to as your individually defined Return on Life®. Our financial planning philosophy reflects all aspects of personal fulfillment — family, friends, health, and well-being — to help you seamlessly pursue greater meaning and purpose throughout your life. To learn more about financial planning strategies that seek to help strengthen your financial foundation, listen to our latest podcast episode of Frank Wealth Insights. To learn how your team of independent wealth planning professionals at Return on Life® Wealth Partners can help you and your family pursue the Return on Life® you desire, contact us today for a free consultation. About Return on Life® Wealth Partners Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in 1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals, families, and business owners. By examining clients' lives before their money, Return on Life® aligns its advice with clients' values. This personalized approach also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®. The opinions expressed and material provided are for general information purposes only. This information is not intended to be a substitute for individualized insurance, tax, or legal advice. We suggest that you discuss your specific issues with a qualified advisor. Securities and Retirement Plan Consulting Program advisory services offered through LPL Financial, a Registered Investment Advisor, member FINRA/SIPC. Investment advice offered through Planned Financial Services, LLC, a Registered Investment Advisor and separate entity from LPL Financial. For additional information related to our services, please visit https://adviserinfo.sec.gov/firm/summary/112879 Copyright © 2025 Planned Financial Services, LLC. All Rights Reserved.

Understanding your workplace benefits Return on Life Wealth Partners, we believe that true wealth is far more than a number on a page. It's about implementing strategies that seek to grow your wealth while helping to protect your income and assets. Employee benefits can play a significant role in helping to accomplish these goals throughout your working years. Below, we examine how three workplace benefits can help you and your family pursue your wealth building and asset protection goals. 1. Prioritize your savings We believe that employer-sponsored retirement plans are a centerpiece of employee benefits. In fact, participating in your employer retirement plan may have the ability to provide one of the most efficient and effective ways to move closer to your long-term financial goals. Pre-tax contributions to qualified plans, such as 401(k) or 403(b) plans, help reduce your current taxable income and enable account earnings to compound and grow on a tax-deferred basis. Based on IRS rules, individuals don't pay taxes until assets are withdrawn, typically in retirement. (Keep in mind, withdrawals made prior to age 59 ½ may be subject to taxes and penalties if they fall outside of certain exceptions.) In general, most comprehensive employee benefits programs offer the ability to make Roth retirement plan contributions. While Roth retirement contributions are made on an after-tax basis, plan participants still benefit from tax-exempt compounding, which has the ability to allow potential earnings to grow at a faster rate than some alternatives. Employer retirement plans also offer a broad range of investment choices that may include model and target-date portfolios and automated features like annual deferral increases that make it easy to save more over time. In 2024, you can contribute up to $23,000 to your employer plan. And if you're age 50 or older, you can make an additional $7,500 catch-up contribution, for a total maximum contribution of $30,500. If you're not able to contribute the maximum allowable amount, we note that contributing at match level or above, if your employer offers one, is recommended. 2. Protect your dependents We believe life insurance available through an employer can be a cost-effective way to help protect those who will depend on your income in the event of your death. As an employee benefit, life insurance is usually provided through a group term policy at no cost or low cost to eligible employees. Coverage may also be available at a reasonable cost for your spouse or dependent family members. In many cases, you may be able to purchase additional levels of coverage, which may be subject to a medical exam and/or other requirements. Keep in mind that employer-provided life insurance policies typically terminate when you leave your current employer. However, some group policies provided as an employee benefit may be "portable," allowing you to pay for the same coverage after you leave your job. While group life insurance can be affordable and easy to qualify for, privately owned life insurance offers more flexibility and customization as well as the ability to keep coverage no matter where you choose to work. 3. Safeguard your income Another employee benefit that can be critical for protecting your income is disability insurance. Disability insurance available through your employer can help mitigate a loss of income during your working years due to an illness or accident that leads to a short- or long-term disability. It's important to note that disability insurance policies generally replace between 45% and 65% of your gross income. Some employee benefits programs pay the full cost of disability insurance on behalf of employees. Others may offer disability insurance at a discounted group rate or as a voluntary benefit that you can elect and pay for yourself. Like group life insurance, disability insurance is often easier to qualify for and less expensive when purchased through your employer. In certain cases, this employee benefit may also be portable, allowing you to pay to continue your coverage if you separate from your employer. Review your employee benefit elections annually It's important to review your employee benefits elections at least annually as your life and your financial needs evolve. Your employer may also make changes and enhancements to your healthcare and retirement plans, as well as other benefits from one year to the next. Typically, you're only able to update your employee benefit elections when you join a new employer or during your employer's annual open enrollment period, which occurs in the fall for most employers. However, certain life events may trigger an exception like a change in your marital status, number of dependents, or in certain cases, a change in your employment status, such as moving from part-time to full-time work or from an hourly to a salaried position. In most cases, once you're eligible to participate in your employer's retirement plan, you can join the plan at any time during the calendar year. To learn more about making smart choices regarding your employee benefits, listen to our latest podcast episode of Frank Wealth Insights. To learn how your team of independent wealth planning professionals at Return on Life® Wealth Partners can help you and your family pursue the Return on Life® you desire, contact us today for a free consultation. About Return on Life® Wealth Partners Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in 1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals, families, and business owners. By examining clients' lives before their money, Return on Life® aligns its advice with clients' values. This personalized approach also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®. The opinions expressed and material provided are for general information purposes only. This information is not intended to be a substitute for individualized insurance, tax, or legal advice. We suggest that you discuss your specific issues with a qualified advisor. Securities and Retirement Plan Consulting Program advisory services offered through LPL Financial, a Registered Investment Advisor, member FINRA / SIPC. Investment advice offered through Planned Financial Services, LLC, a Registered Investment Advisor and separate entity from LPL Financial. For additional information related to our services, please visit https://adviserinfo.sec.gov/firm/summary/112879. Copyright © 2024 Planned Financial Services, LLC. All Rights Reserved.

People often think about estate planning in terms of the legacy they will leave after they're gone. While that's an important part of estate planning, it's also about protecting your interests and the people you care about during your lifetime. Think about what would happen if you were suddenly incapacitated due to an accident or illness. Who would have the knowledge and legal authority to act on your behalf? Protecting yourself and the people who depend on you begins with putting the right estate planning documents in place, based on your needs and circumstances, including the four listed below. 1. Durable power of attorney A durable power of attorney (POA) is an estate planning document that empowers the individual you appoint to act as your agent to carry out any legal and/or financial decisions that have to be made on your behalf during your lifetime, if you are unable to do so yourself. Unlike non-durable POAs that extend specific or limited powers, such as financial or medical decision-making authority, a durable POA doesn't end if you become incapacitated. However, all POAs end upon your death. 2. Living will Also called a healthcare proxy, a living will enables you to specify the kind of medical care you do or do not wish to receive in the event of temporary or long-term incapacity. This important estate planning document also allows you to determine who will make healthcare and end-of-life decisions on your behalf. Ideally, you want to have a living will in place well before a medical emergency or serious illness occurs. That way, family members aren't left guessing, when it comes to making decisions about your care during an already stressful time. 3. Will A will is an estate planning document that all individuals need regardless of the size or value of their estate. A will provides instructions for how your property will be distributed after your death and allows you to name an executor who will serve as your personal representative. Your executor is responsible for overseeing the distribution of your property and shepherding it through probate, which is the court process required to validate your will and transfer your assets. If you die intestate (without a valid will), the distribution of your property will be determined by the probate court through a lengthy and costly process that may not only drain money due to legal fees, but significantly delay the transfer of property and assets to your heirs. Keep in mind, you may own certain assets that sit outside of your will, such as a life insurance policy, 401(k), or individual retirement account (IRA). These assets transfer directly to the named beneficiaries on your accounts and are not subject to probate. That's among many reasons why it's necessary to review all of your beneficiary designations and estate planning documents on a regular basis and update them as needed. 4. Trust A trust is an estate planning document that can provide greater flexibility and control over when and how property and assets are distributed, as well as enhanced privacy, tax benefits, and continuity of asset management. While there are many types of trusts, all trusts fall into one of two categories: revokable or irrevocable. A living or revocable trust is the most common. This estate planning document provides for the organization and management of your assets during your lifetime, including any periods of disability. While a revocable trust can be modified or cancelled at any time during the trust owner or grantor's lifetime, it becomes irrevocable upon the death of the grantor. A primary reason for creating a revocable trust is to avoid probate, making it faster and easier to distribute your assets to your heirs. This is especially important if your heirs depend on those assets to meet their daily living expenses. This flexible estate planning document can also be used to divide your assets after your death to create new trusts for your children or grandchildren to help protect them against creditors or divorce. To learn more about estate planning documents, tools, and strategies designed to help protect your loved ones, lifestyle, and legacy, listen to our latest podcast episode of Frank Wealth Insights. To learn how your team of independent wealth planning professionals at Return on Life® Wealth Partners can help you and your family pursue the Return on Life® you desire, contact us today for a free consultation. About Return on Life® Wealth Partners Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in 1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals, families, and business owners. By examining clients' lives before their money, Return on Life® aligns its advice with clients' values. With access to its Complete Family Office (CFO)ˢᴹ and Personal CFO™ services, Return on Life® Wealth Partners aims to help clients achieve the milestones that matter most to them. This personalized approach also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®. This information is not intended to be a substitute for individualized tax or legal advice. We suggest that you discuss your specific issues with a qualified advisor. The opinions expressed and material provided are for general information purposes only. Investment advice offered through Planned Financial Services, LLC, a Registered Investment Advisor. Copyright © 2024 Planned Financial Services, LLC. All Rights Reserved.

An easy, impactful, and tax-smart strategy for pursuing your philanthropic goals As the end of the year approaches, many individuals, families, and business owners are seeking ways to help fulfill their charitable giving and tax planning goals. Donor-advised funds are a popular way to help accomplish multiple financial goals due to their ease and flexibility, and the impact they can provide. A donor-advised fund, or DAF, is a charitable investment account that allows you to make donations to your fund, receive an immediate tax-deduction, and then make grants from the fund over time. Below are six ways this approach to charitable giving may benefit you and the organizations you support. 1. Simplify charitable giving Donor-advised funds make it easy to centralize and manage your giving strategy from a single convenient account. You can contribute a broad range of assets to your fund, including cash, publicly traded securities (such as stocks bonds, and mutual funds), real estate, and even business interests. While many charitable organizations are unable to accept complex assets, they are able to accept grants from your fund. There are also tax advantages to donating appreciated stock or property through a donor-advised fund. You incur no capital gains tax on gifts of appreciated assets to the fund. 2. Maximize your impact In our view, Donor-advised funds are highly flexible, allowing you to determine the amount and frequency of your contributions, how funds are invested, the number of 501(c)(3) charitable organizations you choose to support, and when you want to make grants to one or more organizations. While donations to the fund are irrevocable, they can grow tax-free, helping to further increase your philanthropic impact over time. 3. Take advantage of generous tax benefits If you itemize on your tax return, a strategy using donor-advised funds for charitable giving can provide an immediate tax deduction of up to 60% of adjusted gross income (AGI) for cash donations made via check or wire transfer. For gifts of appreciated securities, mutual funds, real estate and other assets, you are eligible to take an itemized deduction of up to 30% of your AGI. In both cases, donors enjoy a five-year carry-forward deduction on gifts that exceed AGI limits. 4. Consider bunching donations The Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction, resulting in fewer taxpayers itemizing their returns. If you don't itemize, you can't deduct charitable donations. However, donor-advised funds can enable taxpayers who may be on the cusp of itemizing to enjoy the best of both worlds by consolidating several years of donations into a single tax year.* For example, if you normally give $2,500 a year to charity, but that's not enough for you to itemize and take the deduction, you could bunch several years of donations into the current tax year. Let's say you want to bunch three years of donations. In this case, you would contribute $7,500 to your donor-advised fund this year and deduct the full amount on your 2024 return. In the following two years, you would take the standard deduction (assuming no significant changes in your income or other circumstances). When you use donor-advised funds for charitable giving, you control how much and when the money is donated to your favorite charities each year by making grants out of your fund over time. So, if you want to stick to your schedule of granting $2,500 a year to charity, you can continue to do that over the three-year period in this scenario. Keep in mind, this is just one example of how you could choose to bunch deductions when using donor-advised funds. Be sure to meet with your tax and financial professionals before implementing this or other tax strategies. 5. Make giving a family affair Donor-advised funds can be an effective way to pass philanthropic values down to multiple generations of your family. Since there is no limit on the number of qualified charitable organizations you can make grants to, you can encourage children or grandchildren to recommend the charities they're passionate about to receive grants from your donor-advised fund, as long as they're made to qualified 501(c)(3) organizations. This allows family members to not only participate in and witness your legacy in action but can inspire younger generations to embrace philanthropy. 6. Getting started is easy In our view, establishing a strategy for charitable giving through donor-advised funds is quick and easy when you work with your team of tax professionals and wealth advisors at Return on Life® Wealth Partners. We can help you quickly set up and implement this or other charitable giving strategies that align with your tax and legacy planning goals. For more information about donor-advised funds or other tax-smart strategies, listen to our latest podcast episode of Frank Wealth Insights. To learn how your team of independent wealth planning professionals at Return on Life® Wealth Partners can help you and your family pursue the Return on Life® you desire, contact us today for a free consultation. About Return on Life® Wealth Partners Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in 1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals, families, and business owners. By examining clients' lives before their money, Return on Life® aligns its advice with clients' values. With access to its Complete Family Office (CFO)ˢᴹ and Personal CFO™ services, Return on Life® Wealth Partners aims to help clients achieve the milestones that matter most to them. This personalized approach also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®. * If you itemize your income tax deductions, you may be eligible for a deduction based upon the value of your gift on the day that your contribution is made to the donor-advised fund. Tax rules specify the effective date of such contribution as well as how gifts are to be valued and the deduction limits. Donor-advised funds may be recognized as a tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. Any statement contained in this communication (including any attachments) concerning U.S. tax matters is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed on the relevant taxpayer. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific tax or legal issues with your qualified advisors. The opinions expressed and material provided are for general information purposes only. Investment advice offered through Planned Financial Services, LLC, a Registered Investment Advisor. For additional information about the firm and our services, see our Disclosure Brochure (Form ADV Part 2A) and Customer Relationship Summary (Form CRS) brochure. Copyright © 2024 Planned Financial Services, LLC. All Rights Reserved. Investment advice offered through Planned Financial Services, LLC, a Registered Investment Advisor.

Medicare is the government healthcare program for people age 65 or older. While Medicare offers a broad range of plans, sorting through all of the different options available to you can be confusing and time consuming, and enrolling late could result in paying more throughout your lifetime. Below are five things to consider before enrolling in Medicare to help you avoid costly mistakes and take charge of your healthcare costs in retirement. 1. Missing your window for enrolling in Medicare can be costly Your Initial Enrollment Period (IEP) lasts for 7 months, starting three months before you turn 65, and ending three months after the month you turn 65. However, some people may be eligible for Medicare earlier if they have a disability, End-Stage Renal Disease (ESRD), or ALS (also called Lou Gehrig's disease). Enrolling in Medicare during your IEP will ensure you begin receiving benefits as soon as possible and avoid any late enrollment penalties. 1 If you're already receiving Social Security benefits when you turn 65, you'll be automatically enrolled in Medicare Parts A and B (referred to collectively as Original Medicare). Medicare Part A is hospitalization coverage and Part B helps to cover outpatient care, such as doctor appointments, durable medical equipment, and other services that Part A does not cover. However, if you haven't begun taking Social Security benefits yet, you'll need to actively enroll in Medicare to begin receiving benefits. Visit www.ssa.gov/benefits/medicare and select "Apply for Medicare Only" to learn more. 2. Medicare isn't free While most people don't pay a premium for Part A coverage, most pay a monthly premium for Part B coverage upon enrolling in Medicare. This premium, which is $174.70 in 2024, is subject to change each year and may be higher depending on your income. If you delay enrolling in Part B when you're first eligible, you may pay a higher premium for the remainder of your life. The penalty for late enrollment in Medicare Part B is an additional 10% of the standard monthly premium for each 12-month period that enrollment is delayed. This penalty is added to the monthly Part B premium and is lifelong unless certain circumstances apply when enrolling in Medicare. For example, you won't have to pay a Part B penalty if you qualify for a Special Enrollment Period, such as when you and/or your spouse are still working and are covered under an employer's healthcare plan. Deductibles also apply to Medicare Parts A and B. The deductible for Part A in 2024 is $1,632 for each inpatient hospital benefit period, before Original Medicare starts to pay, and there's no limit to the number of benefit periods you can have in a year. This means you may pay the deductible more than once in a year. Part B has an annual deductible of $240 in 2024, so you only pay this once a year. 2 3. It pays to close the gap Original Medicare is estimated to cover about 80% of the cost of the healthcare services older Americans receive. However, something to keep in mind when enrolling in Medicare is the fact that what it doesn't cover could cost you tens of thousands of dollars over the course of your life in retirement. There are several options available to you to help close this gap. A Medicare Supplement Insurance (Medigap) plan can be purchased to help pay for some of the expenses that Original Medicare does not. (To get a Medigap policy, you must be enrolled in Medicare Parts A and B and continue paying your Part B premium.) Medigap usually helps pay your portion of the costs (like deductibles and coinsurance) for services covered under Original Medicare. Some Medigap policies include extra benefits, like coverage when you travel out of the country. However, Medigap plans sold after 2005 do not include prescription drug coverage. Medicare Advantage (Part C) plans are another option for those enrolling in Medicare. These plans include everything covered by Original Medicare and often include additional benefits, such as prescription drug coverage and/or dental and vision benefits, which are not included under Original Medicare. However, you may be limited to providers in the plan's network and most require prior authorization to see specialists, receive out-of-network or non-emergency hospital care, and more. Original Medicare also does not cover prescription drugs, which can add up fast if you develop one or more chronic conditions. Fortunately, when enrolling in Medicare, you can purchase a Plan D prescription drug plan to help offset the cost of prescription medications. Part D plan costs and coverages vary by state and by insurance provider. When choosing a drug plan, monthly premiums are only one cost factor. Make sure that the plan you're considering covers the prescription drugs you currently take. You may have to pay more for Part D based on your income or if you don't elect a drug plan during your IEP. To avoid paying this penalty, join a drug plan when you're first eligible to enroll in Medicare and make sure you don't go 63 days or more without creditable drug coverage (coverage that's similar in value to Part D). 4. Always read the fine print Because Medicare is fraught with complex rules and regulations, what you don't know really can hurt you. For instance, it's important to understand that you can't have both a Medicare Advantage plan and a Medigap policy. If, after enrolling in Medicare, you switch from a Medigap policy to a Medicare Advantage plan and are later dissatisfied with your choice, you'll have a single 12-month period (your trial right period) to get your Medigap policy back if the same insurance company still sells it once you return to Original Medicare. After that period, you might have to wait to drop your Medicare Advantage Plan, and you might not be able to buy a Medigap policy, or it may cost more. 3 It's also important to understand that Medicare does not pay for long-term care services, such as home health aides, nursing home care, or assisted living. These are additional costs that a growing number of Americans may encounter later in life due to longer average lifespans. So it's important to factor these costs into your planning. 5. Get the help you need before enrolling in Medicare It really does pay to do your homework and learn as much as you can about this important healthcare benefit before enrolling in Medicare. Fortunately, you don't have to do it alone. We're happy to connect you with one of our strategic partners experienced in Medicare planning who can help you compare plans, options, and costs. For more information about making the right choices for you and your wallet when enrolling in Medicare, listen to the latest podcast episode of Frank Wealth Insights, featuring our special guest, Rodika Koloda from Insurance Systems Group. To learn how your team of independent wealth planning professionals at Return on Life® Wealth Partners can help you and your family pursue the Return on Life® you desire, contact us today for a free consultation. About Return on Life® Wealth Partners Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in 1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals, families, and business owners. By examining clients' lives before their money, Return on Life® aligns its advice with clients' values. With access to its Complete Family Office (CFO)ˢᴹ and Personal CFO™ services, Return on Life® Wealth Partners aims to help clients achieve the milestones that matter most to them. This personalized approach also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®. 1 "Who's Eligible for Medicare," https://www.hhs.gov/answers/medicare-and-medicaid/who-is-eligible-for-medicare/index.html 2 "Medicare Costs," https://www.medicare.gov/basics/costs/medicare-costs/avoid-penalties 3 "Learn How Medigap Works," https://www.medicare.gov/health-drug-plans/medigap/basics/how-medigap-works This information does not include all of the details contained in any applicable insurance contracts, plan documents and trust agreements you may have with an applicable retirement benefit program. If there is any discrepancy between this information and the governing documents, the governing documents of an applicable program will control. Return on Life Wealth Partners does not offer any plans and therefore does not reserve any right to amend, modify, reduce, change or terminate benefits and plans. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific tax or legal issues with your qualified advisors. The opinions expressed and material provided are for general information purposes only. Copyright © 2024 Planned Financial Services. All Rights Reserved. Investment advice offered through Planned Financial Services, LLC, a Registered Investment Advisor.

Is a corporate trustee the right choice for your estate planning needs? Establishing a trust can help ensure that your assets are put to work according to your wishes, during your lifetime and after you're gone. A trust can also help reduce estate taxes. When you establish a trust, you appoint a trustee – a person or entity that manages the assets within the trust for the benefit of your beneficiaries, which could be individuals, organizations, or both. Whether individual, corporate, or a combination, trustees are responsible for everything in the trust, including income and losses, and must act in the beneficiaries' best interests. While many people choose a family member to serve in this capacity, there are many circumstances where a corporate trustee may be beneficial for you, your heirs, and your estate. Should you keep it in the family or choose a corporate trustee? While keeping it in the family may seem like a good idea, the role of a trustee can be onerous and time consuming. That's especially true for individuals who may not have experience managing finances and investments, real property, or taxes. That can lead to costly mistakes and significant delays, which can adversely impact your beneficiaries. And the more complex the estate, the more difficult it can be for trustees to juggle this fiduciary role on top of their own day-to-day responsibilities and commitments. That's one of the many reasons individuals consider a corporate trustee. It's also important to consider how the role of the trustee may affect family dynamics. Trustees are often required to make tough decisions that might be unpopular with some of your beneficiaries. (Remember, the trustee is carrying out your instructions, not your beneficiaries' wishes.) For a family member who may prefer acting in a manner that avoids hard feelings within the family, this can be a difficult role to fulfill, making a corporate trustee a practical alternative. In addition, few family members have the level of expertise in investment management, taxes, and fiduciary law required to efficiently and effectively manage the various aspects of trust administration. Choosing a corporate trustee ensures access to all of the necessary skills and resources required to manage the trust in a timely, competent, and unbiased manner. While a corporate trustee can help to head off potential family conflicts of interest and relieve family members of responsibilities that they may be unprepared to take on, keep in mind, the family can still appoint a family member to serve as a personal representative for communication and decision-making purposes. 7 benefits of a corporate trustee Besides eliminating potential conflicts of interest between family members, implementing a corporate trustee has additional benefits for both the trust and its beneficiaries, including: 1 Unbiased loyalty and independence to carry out your wishes Knowledgeable management, protection, and defense of trust assets Experienced oversight of the investment process to be carried out by your financial advisor Timely and accurate statements of the account to keep you and all current beneficiaries informed Consistent account reviews Accountable collection and prudent distribution of income and assets Professional tax reporting, filing, and comprehensive regulatory compliance on behalf of the trust Before choosing a corporate trustee, take time to meet with a qualified estate planning attorney and tax professional for advice specific to your situation and goals. For more information about corporate trustees, listen to my latest podcast episode of Frank Wealth Insights, featuring our special guest, Kate Shackleton, Executive Vice President, Trust and Insurance at LPL Financial. At Return on Life® Wealth Partners, our team of wealth planning professionals can help you determine if choosing a corporate trustee is the right move for your estate planning needs and coordinate the advice you receive from all of your professional advisors. To learn how we can help you and your family pursue the Return on Life® you desire, contact us today for a free consultation. About Return on Life® Wealth Partners Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in 1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals, families, and business owners. By examining clients' lives before their money, Return on Life® aligns its advice with clients' values. With access to its Complete Family Office (CFO)ˢᴹ and Personal CFO™ services, Return on Life® Wealth Partners aims to help clients achieve the milestones that matter most to them. This personalized approach also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®. 1 "Why Consider a Corporate Trustee?" https://theprivatetrustcompany.com/family-individuals/why-consider-a-corporate-trustee/ This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific tax or legal issues with your qualified advisors. The opinions expressed and material provided are for general information purposes only. Copyright © 2024 Planned Financial Services. All Rights Reserved. Investment advice offered through Planned Financial Services, LLC, a Registered Investment Advisor.

3 Things to Know Before Buying a Second Home Like many people, you may wonder if owning a second home or vacation property is a good strategy for adding real estate to your investment portfolio. Owning a second home can be an effective way to diversify your assets, generate income, and build equity. However, like any investment, it's not without risk. If you're thinking about buying a vacation property or other real estate, take a few moments to consider the three questions below. 1. Does adding real estate to your investment portfolio align with your financial plan? Adding real estate to your investment portfolio can be a great way to diversify your income sources and assets. However, since different real estate investments provide different benefits and risks, it's important to determine your overall goals before adding real estate to your investment portfolio. Are you seeking additional income, a way to further reduce taxes on current income, a hedge against stock market risk, a retreat to enjoy with family and friends, or a combination of these? You also want to consider whether an active or passive approach to managing real estate assets is right for you. For example, if you're seeking additional tax benefits to offset your income by adding real estate to your investment portfolio, but don't want to take an active role in managing a property, such as a beach or lake house, you may want to consider publicly traded real estate investment trusts (REITs) or funds that invest in real estate. 1 These methods allow you to add real estate to your investment portfolio without having to commit a lot of money upfront or actively manage any properties. 2. What are the potential financial benefits and risks of investing in a second home? Most people buy a vacation home with the expectation that it will appreciate over time and/or provide an income stream as a rental property. While these benefits can prove lucrative, adding real estate to your investment portfolio is never without risk. For example, if real estate prices are high in the location where you intend to buy, you may have to pay top dollar for the property you want. In addition, expenses including mortgage payments, property taxes, insurance, utilities, maintenance costs, and homeowner's association fees can add up quickly. You'll also need to plan for unexpected expenses, such as weather-related events or damage from renters. On the other hand, if you frequently visit the same destination for family vacations, adding real estate to your investment portfolio through ownership of a vacation property may provide a satisfying return on investment vs. renting someone else's property. While potential tax benefits, income generation, and appreciation can make owning a vacation home very attractive, it's important that the downpayment and cost-to-carry a second property don't have an adverse impact on your cash flow but, instead, align with your budget and long-term financial plan. In other words, you don't want to create a situation where adding real estate to your investment portfolio renders you cash poor or jeopardizes your ability to achieve other important lifestyle goals. 3. What are the tax implications of adding real estate to your investment portfolio? In general, you may be able to deduct certain expenses associated with adding real estate to your investment portfolio through ownership of a second home. If the property is considered a personal residence, you may be able to deduct some or all of your mortgage interest for the tax year if you use the home for more than 14 days or 10% of the days that you rent it out, whichever is greater. When you consider adding real estate to your investment portfolio, be aware that if your second home is considered a rental/investment property, you'll need to report any rental income to the IRS if you rent your home for more than 15 days per year and your personal use of the property does not exceed 14 days per year or 10% of the number of days the home was rented. In this case, you can deduct expenses for the rental, including maintenance and utilities. If you own two houses, as a result of adding real estate to your investment portfolio, and both are strictly for personal use, you will likely owe two sets of property taxes. It's important to understand that under the Tax Cuts and Jobs Act of 2017, there's a $10,000 limit ($5,000 if married filing separately) for state and local taxes paid, which includes property taxes. This $10,000 maximum could limit your ability to take a deduction for property taxes on your first and second homes. However, if the second home is considered a rental/investment property, you would have the ability to deduct all or a portion of the property tax without the $10,000 limitation. 2 Another tax issue to know about before adding real estate to your investment portfolio is the ability to deduct mortgage interest. For homes purchased after December 15, 2017, you can deduct the mortgage interest you paid during the tax year on the first $750,000 of your mortgage debt for your primary and/or a second home. (If you are married filing separately, the limit drops to $375,000.) So it's not hard to reach this limit where the combined mortgage debt on your primary and vacation homes exceeds $750,000. There are other criteria that must be met to qualify for the mortgage deduction as well. Before adding real estate to your investment portfolio, keep in mind that tax rules are complicated and may differ depending on your specific situation and the location of your home. Take time to meet with a qualified tax professional well in advance of purchasing a second home. At Return on Life® Wealth Partners, our tax and wealth planning professionals can help you develop a tailored strategy for adding real estate to your investment portfolio. For more on this topic, be sure to listen to my latest podcast episode of Frank Wealth Insights. To learn how we can help you and your family pursue the Return on Life® you desire, contact us today for a free consultation. About Return on Life® Wealth Partners Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in 1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals, families, and business owners. By examining clients' lives before their money, Return on Life® aligns its advice with clients' values. With access to its Complete Family Office (CFO)ˢᴹ and Personal CFO™ services, Return on Life® Wealth Partners aims to help clients achieve the milestones that matter most to them. This personalized approach also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®. 1 Investing in REITs involves a high degree of risk. Some, but not all, of the risks and uncertainties that an investor can expect are risks related to: acquiring, owning and selling real property and real estate investments, including risks related to general economic and real estate market conditions, the risk that the REIT's properties become too concentrated (whether by geography, sector or by tenant mix) and the risk that the sales price of a property might differ from its estimated or appraised value; property valuations, including the fact that the REIT's appraisals are generally obtained on a quarterly basis and there may be periods in between appraisals of a property during which the value attributed to the property for purposes of the REIT's daily accumulation unit value may be more or less than the actual realizable value of the property, etc. This summary of risks does not address all the risks an investor may experience. Additional discussion of the risks can be found in the "Risk Factors" section of the REIT's prospectus. 2 Publication 527: Residential Rental Property, https://www.irs.gov/pub/irs-pdf/p527.pdf This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific tax or legal issues with your qualified advisors. The opinions expressed and material provided are for general information purposes only. Investment advice offered through Planned Financial Services, LLC, a Registered Investment Advisor. Copyright © 2024 Planned Financial Services. All Rights Reserved.

Understand how life insurance needs change over time Many people understand the vital role life insurance plays as a risk management tool. However, life insurance planning can be daunting. That's because each family's needs and situation differ. As a result, your risk management strategy needs to reflect what's unique about your lifestyle, goals, family, and financial circumstances. Life insurance is primarily used to protect loved ones against the loss of income due to the death of a wage earner. That makes life stage an important variable in the life insurance planning process. As discussed below, you can expect your insurance needs to change over time as your life and family evolve. How should you approach life insurance planning if you're young and single? People often assume that they don't need life insurance if they don't have a spouse, children, or other dependents. While the need for life insurance at this stage of life may be minimal, it can still play an important role in paying off your debts and final expenses in the event of an untimely death. To understand your life insurance planning needs, add up any outstanding debts that are not forgiven upon your death, such as loans or credit where another party cosigned to help you secure the loan. You also want to make sure your final expenses are covered for funeral and burial or cremation costs. The good news is that since life insurance premiums are determined in part by your age and health status, life insurance is generally inexpensive when you're young and in good health. How should you approach life insurance planning if you're newly married? Whether your lifestyle is based on one or two incomes, the unexpected death of a spouse could create a significant financial burden for the remaining spouse. When it comes to life insurance planning, consider if your surviving spouse would be able to meet your household's debt obligations and cash flow needs without your income. Both spouses should consider purchasing life insurance in an amount that will pay off all household debts and replace their spouse's income. How should you approach life insurance planning if you're married with children? When adjusted for inflation, the average cost to raise a child is $312,202, and that doesn't include college costs. 1 That makes life insurance planning critical for protecting those who depend on your income to meet their essential expenses and lifestyle needs over a period of 18 years or more. If one parent were to die, the loss of income could significantly alter your family's quality of life, including their ability to remain in their home or attend the college of their choice. A stay-at-home spouse may be forced to seek work outside the home. Single parenthood can also diminish a surviving spouse's future earning power if they have to reduce their hours, cut back on travel, pass up promotions, or delay continuing education opportunities due to obligations at home. To help protect against the potential financial loss associated with the death of a spouse, the life insurance planning process takes your lifestyle, debts, the number and ages of your children, and your estimated K-12 and college education costs into consideration, among other factors. How should you approach life insurance planning if you're an empty nester or retired? As you get older, life insurance planning should reflect your changing financial needs and circumstances. For example, once you retire, there's no longer a need to replace lost wage income. And, if you're an empty nester, adult children have their own careers and are no longer dependent on you to meet their income needs. However, the need for life insurance planning may not go away entirely. That's because life insurance is often used as an important estate and legacy planning tool to help meet certain liquidity needs and assist in the tax-efficient transfer of assets after your death. To learn more about life insurance planning at each stage of your life, including the type of insurance that's right for your family, schedule time to meet with one of our experienced team members who can evaluate your current coverages, and make recommendations based on your needs, goals, and budget. For more on this topic, be sure to listen to my latest podcast episode of Frank Wealth Insights. To learn how we can help you and your family pursue the Return on Life® you desire, contact us today for a free consultation. About Return on Life® Wealth Partners Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in 1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals, families, and business owners. By examining clients' lives before their money, Return on Life® aligns its advice with clients' values. With access to its Complete Family Office (CFO)ˢᴹ and Personal CFO™ services, Return on Life® Wealth Partners aims to help clients achieve the milestones that matter most to them. This personalized approach also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®. 1 WTOP.com, May 2024, https://wtop.com/news/2024/05/how-much-does-it-cost-to-raise-a-child-4/ This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific tax or legal issues with your qualified advisors. The opinions expressed and material provided are for general information purposes only. Investment advice offered through Planned Financial Services, LLC, a Registered Investment Advisor. Copyright © 2024 Planned Financial Services. All Rights Reserved.