Arch Financial Planning, LLC

06/27/2024

🎓529 Savings Plans: A Smart Choice for Your Child's Future 🎓

College and Dental School isn't getting any cheaper!

The good news is that 529 Savings Plans have become more flexible, making saving for your child's education easier without the looming fear of student loan debt.

Many concerns with 529 plans revolve around the idea that you're penalized by taking out funds that aren't used for college.

Here are three critical insights for maximizing your 529 plan:

1. Beneficiary Flexibility: You can change the beneficiary to another qualifying family member, ensuring your savings adjust to your family's needs.

2. Roth IRA Transfers: Thanks to the SECURE Act 2.0, you can transfer up to $35,000 to a Roth IRA, providing a strong start for your child's retirement savings.

3. Scholarship Adaptability: If your child receives a scholarship or enlists in the military, you can withdraw earnings without the 10% penalty, paying taxes only on the earnings.

These updates make 529 Plans a powerful tool in planning for your child's future.

Are you considering a 529 Plan, or do you have experience with one? Share your thoughts and tips below!

Disclaimer: This is for educational purposes only. This should not be taken as individual advice. Consult your legal, tax, and financial advisor before implementing any strategies you read here.

We're a dental-focused financial.

06/25/2024

Dental Practice Owners: Looking for ways to lower your taxes? Check out this list!

1. Choose the correct entity. For many of you, this means your practice will be held as an LLC, but you make an election with the IRS to be taxed as an S-Corporation.

2. Pay yourself a reasonable salary, but pay yourself the rest as an S-Corp distribution. This will reduce your F**A taxes.

3. Employ your children. If they work in your practice, you can pay them up to the standard deduction without incurring federal income tax. This can be a smart move, as they can use this money to start a Roth IRA and begin investing in their future early on.

4. Use an accountable plan to reimburse travel and cell phone expenses. If you travel for work-related purposes and pay for your costs personally, reimburse yourself through an accountable plan.

5. Utilize Section 179 and Bonus Depreciation for vehicles. If your vehicle is used for both personal and business miles, you must track your mileage. Popular apps like MileIQ make this more manageable.

6. Save for retirement. Consider using a 401(k) combined with a Cash Balance plan. This combo allows you to contribute $150k-300k+ pre-tax towards your retirement. The primary drawback is having to make employee contributions and administrative costs. In many cases, the tax savings make this very beneficial.

7. Maximize your Qualified Business Income (QBI) deduction. This calculation has many moving parts.

Are you looking for a dental-focused financial planner who can help you navigate these opportunities? Check out Arch Financial Planning, a dental-focused financial advisor serving dentists nationwide!

Note: This post is for educational use only. Please consult a qualified tax, financial, and legal professional before taking action.

06/20/2024

Ask a dental-specific financial advisor: "Should I pay off my student loans aggressively?"

Navigating student loans can be daunting, especially for dentists with significant student loan debt.

A common question is whether to pay off student loans aggressively.

Here's some guidance:

If your income is less than your student loan balance, the math typically suggests not paying off your loans aggressively. Instead, consider utilizing income-driven repayment plans such as SAVE, PAYE, or IBR.

Keeping your required payment low gives you the opportunity cost to:

Invest for Retirement: Compounding returns over time can significantly enhance your financial future.

Obtain Continuing Education: Advancing your skills can increase your earning potential.

Save for Practice Ownership: Building your own practice can lead to long-term financial success.

Invest More in Your Dental Practice: Investing in your practice can yield higher financial returns by growing your income.

Aggressively paying off your student loans may delay achieving goals like buying a home or owning a practice due to reduced cash availability for these investments.

Balancing loan repayment with strategic financial planning can set the foundation for a more prosperous future. Always consult with a dental-specific financial advisor to tailor the strategy to your specific situation.

Note: This post is for educational use only. Please consult a qualified tax, financial, and legal professional before taking action.

11/01/2022

Thrilled to be featured in the Athens Area Chamber of Commerce! Looking forward to growing with our wonderful community!

The Athens Area Chamber of Commerce is excited to welcome Financial Planning, LLC as a new member of the chamber! They specialize in Fee-Only Financial Planning For Dentists & Physicians With Student Loans. They help them pay Off Student Loans in order to Invest For tomorrow. They enable early career dentists & physicians to maximize life beyond their clinical work.

07/19/2022

The PSLF Waiver offers a once-in-a-lifetime opportunity for dentists & physicians employed by eligible nonprofit or public service agencies. The deadline to act is currently October 31, 2022.

Read this piece to make sure you're on track to have your student loans forgiven.

https://www.archfinancialplanning.com/pslf-waiver

07/11/2022

US stocks have had their worst first half since 1970, with the S&P 500 more than down 21%. While that doesn’t feel good for anybody, this isn’t the end of the road for long-term investors.

I share why in my latest blog post. Go check it out!

Economic Headlines Impacting Markets Through June of 2022 from Arch Financial Planning, LLC. Athens, GA Financial Planner

07/05/2022

A new kind of financial planning is here.

I'm excited to announce the official launch of Arch Financial Planning, LLC. In this piece, I share critical details about selecting a financial advisor and why I decided to launch a firm.

Moving forward, we'll share education content on personal finance, investing, and student loans.
https://www.archfinancialplanning.com/launch-post

07/04/2022

We wish a happy Fourth of July to our clients and friends. We're taking the day to relax, recharge and reflect