If you’re approaching your 70s or are already retired, you’ve possibly heard about required minimum distributions (RMDs) — or will soon. 

While the concept may seem straightforward, RMDs involve important timing decisions, tax implications, and strategic opportunities that can significantly impact your retirement income and overall financial plan. At Premier Financial Group, we believe that education leads to confidence, and the more you understand about RMDs, the better equipped you’ll be to make decisions that align with your goals. 

Here’s what you need to know.

RMD Essentials 

What are RMDs and Who Needs to Take Them?

RMDS are mandatory withdrawals from your retirement accounts that the IRS requires once you reach a certain age. 

Currently, RMDs begin at age 73 for traditional retirement accounts. This age requirement has changed over time — it was previously 70½, then 72, and now 73. Looking ahead, it’s scheduled to increase again to 75 in 2033. These changes reflect shifting retirement patterns as Americans continue to work longer.

RMDs apply to all qualified retirement accounts, including traditional IRAs, 401(k) plans, and 403(b) plans. The notable exception is Roth accounts or retirement accounts funded with after tax money, which do not have required distributions. This is one of the significant advantages of Roth accounts — the flexibility to withdraw funds on your own schedule or potentially leave them to heirs tax-free.

An Important Exception for Employer Plans

If you’re age 73 or older and still working, you may not need to take RMDs from your current employer’s retirement plan just yet.

The IRS waives RMDs from employer-sponsored retirement plans (like 401(k)s or 403(b)s) if all the following apply:

• You’re still actively employed by the company that sponsors the plan
• You are not a 5% or greater owner of the company
• The plan allows for this delay (most do, but it’s best to confirm)

This exception only applies to the employer plan at your current job — it doesn’t apply to IRAs or old 401(k)s from previous employers.

It’s one reason why some people choose to continue working (or “working”) well into their 70s — delaying RMDs can be a strategic tax move.

Key Deadlines

Timing is crucial when it comes to RMDs. For your first withdrawal, you have two options: take it by December 31 of the year you turn 73, or delay until April 15 of the following year.

However, delaying your first RMD comes with a significant caveat: You’re taking an RMD for the previous year, but still have to take an RMD for the current year. This means you’d be taking two required distributions in the same tax year, potentially pushing you into a higher tax bracket and possibly increasing your Medicare premiums which may reduce your Social Security benefits. 

After your first RMD, all subsequent distributions must be taken by December 31 each year.

Calculation and Tax Implications

How RMDs are Calculated

The IRS has a specific formula for calculating your Required Minimum Distribution. The calculation is relatively straightforward: the value of your retirement account as of December 31 of the previous year, divided by a life expectancy factor provided by the IRS.

The IRS maintains life expectancy tables that assign a factor based on your age. For example, at age 73, the uniform lifetime table factor is approximately 27.1. If your IRA was worth $500,000 on December 31 of the previous year, your RMD would be about $18,450 ($500,000 ÷ 27.1).

Each year, the life expectancy factor decreases, which means you’ll generally need to withdraw a higher percentage of your account as you get older. If your investments grow significantly, your RMD amount will also increase, as it’s based on the account’s value at the end of the previous year.

There are actually three different life expectancy tables the IRS maintains:

1. The Uniform Lifetime Table (most commonly used)
2. The Single Life Expectancy Table (for non-spouse beneficiaries of the IRA owner)
3. The Joint Life and Last Survivor Expectancy Table (for married couples with age differences of 10 years or more)

The tax implications of calculated RMDs can be complex. The team at Premier keeps clients well-informed, walking them through these calculations and helping them understand how RMDs fit into broader tax and financial strategies. 

Tax Treatment of RMDs

All RMD withdrawals from traditional retirement accounts are taxed as ordinary income in the year you take them. This means they’ll be taxed at your current federal income tax rate, plus applicable state income taxes.

This can have significant implications for your overall tax situation. A large RMD could push you into a higher tax bracket, especially if you have other sources of income such as Social Security, pension payments, or investment income.

The state you live in also impacts the tax treatment of RMDs. If you reside in a state with no income tax like Florida, Washington, or Nevada, you’ll only pay federal income tax on your distributions.

Impact on Other Retirement Benefits

RMDs can trigger a cascade of other financial effects beyond just income taxes. They can affect:

1. Medicare Premiums: Higher income from RMDs can increase your Medicare Part B and Part D premiums through what’s called Income-Related Monthly Adjustment Amounts (IRMAA). These surcharges are based on your modified adjusted gross income from two years prior.
2. Social Security Taxation: Increased income from RMDs might cause a larger portion of your Social Security benefits to become taxable, effectively reducing your net benefits.

Consequences of Missing RMDs

The IRS takes RMD requirements seriously, and the penalties for non-compliance can be substantial. Failing to take your full RMD by the deadline may result in a 25% excise tax on the amount not distributed as required, or 10% if a correction is withdrawn within two years.

Remember that while financial institutions may send reminders and advisors or accountants may help you calculate the amounts, the responsibility for taking RMDs ultimately falls on you.

Prevent missing deadlines by:

• Setting calendar reminders
• Submit your distribution request well before the year-end rush
• Consider automatic distributions
• Maintain documentation of all your RMD calculations and withdrawals
• Work with a financial advisor to help ensure you meet all requirements and deadlines

At Premier, advisors document discussions and maintain detailed records, proactively monitoring deadlines and working collaboratively to ensure nothing falls through the cracks.

Take Control of Your RMD Strategy

Understanding required minimum distributions is essential for confident retirement planning. Premier Financial Group is committed to educating our clients because informed decisions lead to greater financial peace of mind.

Our experienced advisors understand the intricacies of RMD planning and can help you develop a personalized strategy that aligns with your goals. Whether you need help calculating your required distributions, exploring Roth conversion opportunities, or coordinating RMDs with your broader financial plan, we’re here to guide you through every step of the process.

Receiving an inheritance is a blessing, but also comes with challenges. While it often comes during an emotionally difficult time, a thoughtful approach to managing this financial windfall can transform it into a meaningful legacy that provides lasting benefits. 

Unlike generations past, inheritances today are becoming less common as people live longer, often spending down their assets in retirement. When they do occur, the financial landscape is more complex than ever, with various investment options and family considerations to navigate.

This guide offers practical advice for managing inherited wealth with purpose.

First Steps When Receiving an Inheritance

Taking the right initial steps can make a difference in how effectively you manage an inheritance. Rather than rushing into spending decisions, follow this strategic approach:

1. Contact the Estate Planning Attorney

Your first call should be to the attorney who handled the estate planning for the deceased. This is critically important because:

• You may have inherited more than just money. You might also have inherited the position of successor trustee or executor, which comes with significant responsibility.
• You have fiduciary liabilities. As a successor trustee or executor, you have legal obligations to properly distribute assets according to the will or trust.
• The attorney can guide you through the legal process. They can explain what documents need to be filed, deadlines that must be met, and the proper procedures for administering the estate.
• They can help interpret the deceased’s wishes. If there are any questions about how assets should be distributed, the attorney who created the estate plan will have the best insight into the deceased’s intentions.

2. Contact the Accountant

After understanding your legal responsibilities, your next call should be to an accountant, preferably one who worked with the deceased. This step is crucial because:

• You need to understand tax implications. The accountant can help you determine what taxes might be due on the inheritance itself and any ongoing tax liabilities.
• The estate may owe final taxes. Before distributing assets to beneficiaries, you need to ensure that the deceased’s final tax return is filed and any taxes owed are paid.
• Outstanding debts must be addressed. The accountant can help identify any outstanding debts of the deceased that need to be paid from the estate before assets are distributed.
• You need to know how much you’ll actually keep. After accounting for taxes and debts, the amount you’ll actually retain could be significantly different from the initial inheritance amount. 

3. Contact a Financial Advisor

Only after you’ve consulted with both the attorney and accountant should you contact a financial advisor. At this point, you’ll have a clear picture of what you’re inheriting and any obligations attached to it. Your financial advisor can help you:

• Develop a long-term plan for the assets. Based on your current financial situation and goals, they can help you determine the best ways to integrate the inheritance into your overall financial plan.
• Decide which inherited investments to keep or sell. If you’ve inherited stocks, bonds, or other investments, your advisor can help you determine which ones align with your financial goals and risk tolerance.
• Avoid timing mishaps. Selling inherited assets too quickly or too late can have significant tax implications. Your advisor can help you time these decisions appropriately. 
• Create a strategy for inherited retirement accounts. If you’ve inherited an IRA or other retirement account, special rules apply that your advisor can help you navigate.

This methodical approach helps you avoid common pitfalls like spending money that might be needed for taxes or making investment decisions before understanding your full financial picture.

Long-term Planning for Inherited Wealth

Once you’ve addressed the immediate legal considerations of your inheritance, it’s time to develop a long-term strategy for these assets. This isn’t just about preserving wealth — it’s about integrating these resources into your broader financial goals and values.

Aligning Inherited Assets with Your Financial Goals

Inherited wealth provides an opportunity to reassess and potentially accelerate your financial journey. The key is ensuring these assets work in harmony with your existing financial plan rather than being a separate entity.

Start by considering your life stage and primary objectives, like:

• Building retirement savings
• Funding education for children
• Buying a home
• Achieving financial independence

Your inheritance should be strategically deployed to support these goals. For younger inheritors, this might mean using a portion of the inheritance to build a cash cushion or eliminate high-interest debt while investing the remainder for long-term growth. For those closer to retirement, it might involve bolstering income-producing investments or addressing gaps in retirement planning.

Timing Considerations for Managing Inherited Investments

When managing inherited investments, timing plays a crucial role in maximizing their value while minimizing tax impacts.

The step-up cost basis discussed above creates a unique opportunity. When you inherit investments that have appreciated significantly over time, your tax basis resets to the market value on the date of death. This means you can sell these investments immediately without incurring capital gains tax on all the appreciation that occurred during the original owner’s lifetime.

This creates an important planning consideration: If you inherit investments that don’t align with your risk tolerance or financial goals, there’s often little tax reason to hold onto them. Selling soon after inheritance allows you to reposition these assets according to your needs — without tax penalties that might have affected the original owner.

Conversely, if you decide to hold onto inherited investments but eventually need to sell them, be mindful of the potential capital gains implications. Any appreciation that occurs after you inherit the assets will be subject to capital gains tax when sold. If you anticipate needing liquidity in the near future, it might be more sensible to sell inherited investments sooner rather than later to minimize capital gains.

Creating a Sustainable Inheritance Strategy

Rather than viewing inheritance as a one-time windfall, consider developing a framework for how these assets will serve you and potentially future generations. This might include:

• Creating a personal investment policy statement that outlines your objectives, risk tolerance, and time horizon for inherited assets.
• Setting aside a portion of the inheritance for immediate needs or experiences that are important to you, while preserving the core for long-term growth.
• Considering how the inheritance might be used to create lasting impact, whether through charitable giving, education funding for family members, or supporting important causes.
• Regularly reviewing and adjusting your strategy as your life circumstances change. What makes sense for your inheritance right away might not be appropriate years later.

Remember that financial planning is deeply personal. Working with professionals who understand your unique circumstances can help you develop a tailored approach that maximizes the impact of your inheritance while respecting your individual values and goals.

Common Mistakes

Despite the best intentions, inheriting wealth can lead to unforeseen challenges and missteps. 

Many inheritors make impulsive financial decisions, purchasing expensive homes or cars, or even quitting jobs based on a temporary sense of wealth. Unfortunately, substantial inheritances can be depleted with surprising speed when approached without careful planning.

Others swing to extreme caution, keeping funds in low-yield accounts where inflation steadily erodes their value. Some maintain inherited investments out of misplaced loyalty (“Dad worked for this company for 40 years — I should keep his stock to honor him”) rather than making sound financial decisions.

Perhaps the most damaging are the family conflicts that emerge from unclear estate planning. Siblings often find themselves in painful disputes over distributions, perceived favoritism, or unexpected responsibilities as executors or trustees. These conflicts frequently cause permanent damage to relationships that far exceeds the monetary value at stake.

To avoid these mistakes, give yourself time before making major decisions and work with professionals who understand the legal, tax, and investment implications. Remember that your inheritance represents someone’s care for your future. Honor that intention with thoughtful management focused on long-term security rather than immediate desires.

Manage Your Inheritance with Purpose

Receiving an inheritance represents both an opportunity and a responsibility. While it may arrive during an emotionally challenging time, a methodical approach will help you honor this gift in a way that provides lasting benefit. 

The greatest tribute to someone who has left you an inheritance isn’t preserving exactly what they owned — it’s using their gift to meaningfully improve your life while reflecting the values they hoped to pass along with their financial legacy.

At Premier Financial Group, we understand the complex emotions and decisions that accompany an inheritance. Our team is dedicated to helping you navigate this journey with clarity and purpose, ensuring your inheritance becomes a meaningful part of your own financial story.

When it comes to building wealth, the question isn’t just how much you invest, but when you start. Early investors who consistently set aside small amounts often outperform the late starters with larger contributions. Why? Starting to invest earlier in life develops a mindset that treats investing as paying your future self, creates habits that weather increasing financial demands, and gives your money the maximum time to grow.

While most of us understand that more time means more money, practical barriers — student debt, market fears, the allure of immediate gratification — often delay this critical first step. 

We’ll help you understand these challenges and implement strategies to overcome them, so you can position yourself for long-term financial success without sacrificing your quality of life.

Why Start Early?

Time is truly the most powerful factor in building wealth. When investments have decades to grow, the results can be astonishing. 

Build Healthy Financial Habits

Starting early allows you to establish consistent investing habits before major financial commitments arise. As we progress through adulthood, financial responsibilities tend to multiply — mortgages, student loan payments, family expenses, and more. By creating strong investing habits in your twenties, the process becomes automatic, like a non-negotiable “bill” you pay to yourself before other expenses compete for your resources.

Take Advantage of the Luxury of Time

When you’re decades away from needing your investments, temporary market downturns become opportunities rather than crises. With 40+ years before retirement, market fluctuations along the way aren’t just manageable — they’re expected and can even be beneficial through dollar-cost averaging. 

Start Small to Make a Big Difference

Perhaps most importantly, beginning early means you don’t need to invest large sums to make a significant impact. Starting with $25-50 per paycheck is perfectly acceptable. These modest contributions, given enough time to grow, can develop into substantial wealth. 

Common Barriers to Early Investing

While the benefits of early investing are clear, several obstacles often prevent young adults from taking this crucial first step toward financial security.

Financial Pressures and Debt

Student loan debt creates significant pressure on young professionals, often making investing seem impossible. With the average federal student loan debt balance more than $38,000, monthly loan payments can consume funds that might otherwise go toward investments. Additionally, rising house costs, healthcare expenses, and day-to-day living expenses further strain limited resources.

Lack of Financial Education

Many people simply don’t understand how investing works. The terminology feels like a foreign language, the process seems intimidating, and without guidance, the whole process appears risky or confusing. Most parents don’t teach their children about investing, often because they weren’t taught themselves. Meanwhile, school systems rarely provide comprehensive financial education, leaving young adults unprepared for even basic investment decisions. With neither home nor school offering directions, many find themselves in their twenties or thirties with no clear starting point.

Many also believe they need substantial amounts to begin investing — a misconception that can lead to postponement, waiting for that “someday” when they’ll have enough to start. This delay sacrifices their most valuable asset: time for their investments to grow.

Prioritizing Present Enjoyment Over Future Security

The choice between enjoying life now versus sacrificing for a retirement decades away isn’t easy. Whether it’s dining out, traveling, shopping, or enjoying entertainment subscriptions, these present-day lifestyle choices directly compete with future financial security. It’s human nature to choose the instant gratification you can see and feel over a benefit that seems ages away.

First Steps for New Investors

Getting started with investing doesn’t need to be complicated. These foundational steps will help you begin your investment journey with confidence and establish habits that will benefit you for decades to come.

1. Start with Emergency Savings

Before venturing into investments, establish a solid emergency fund covering three to six months of living expenses. This financial cushion protects your investments by preventing you from needing to withdraw funds during a market downturn to cover unexpected costs. Keep these funds in a high-yield savings account where they remain liquid and accessible when needed while still earning some interest. 

2. Take Advantage of Employer Retirement Plans

If your employer offers a retirement plan like a 401(k), make this your first investment destination, especially if they provide matching contributions. Employer matches represent immediate, guaranteed returns on your investment — essentially free money that no other investment vehicle can match. Start by contributing at least enough to capture the full employer match, then increase your contribution percentage gradually as your income grows.

3. Consider Opening a Roth IRA

A Roth IRA offers unique tax advantages that make it particularly valuable for young investors. Contributions are made with after-tax dollars, but growth and qualified withdrawals are completely tax-free. Additionally, you can withdraw your original contributions (though not earnings) without penalties if absolutely necessary, providing flexibility that other retirement accounts lack. The current annual contribution limit makes this an accessible option for beginning investors. 

4. Choose Simple, Diversified Investments

For beginners, broad-based index funds provide instant diversification and professional management at minimal cost. Consider starting with a total stock market index fund, which provides exposure to thousands of companies through a single investment. This approach eliminates the need to select individual stocks while providing broad market exposure that has historically delivered solid long-term returns. 

Special Considerations for Young Investors

The investing landscape offers unique advantages to those who start early, creating opportunities unavailable to older investors:

• Embrace appropriate risk: While market volatility may seem frightening, younger investors can generally afford to take on more growth-oriented investments. With decades before retirement, temporary market swings become blips in a long-term upward trajectory.
• Investment options for minors: Even teenagers can begin investing with the proper structure. Minors who hold some kind of employment can open custodial accounts like UGMA/UTMA accounts or even Custodial Roth IRAs with parental assistance.
• Family support opportunities: Parents and grandparents can accelerate a young person’s financial journey through strategic gifting. For example, a relative could gift funds to match a young person’s earnings, allowing them to preserve their wages for immediate needs while still funding their future. This approach effectively doubles the impact of a young person’s work while teaching valuable financial lessons about saving and investing.
• Dollar-cost averaging benefits: Small, regular contributions work exceptionally well for young investors thanks to dollar-cost averaging — automatically buying more shares when prices are low and fewer when prices are high. This strategy reduces the impact of market timing and potentially lowers the average cost per share over time. 
• Financial education resources: Young investors have unprecedented access to financial education through podcasts, TikTok, investing apps, and online courses designed for beginners. Taking advantage of these resources creates a foundation of knowledge that compounds alongside investments, leading to more confident decision-making throughout life.

Investing Early: The Gift that Keeps on Giving

The journey to financial independence begins with a single step — one that’s best taken early. Paying your future self first makes investing a simple habit that builds wealth almost automatically over time. While obstacles exist, the path forward is clear: start small and stay consistent. 

At Premier Financial Group, we’re committed to guiding you through every stage of your investment journey, from your first contribution to retirement and beyond. Our experienced advisors can help you navigate market complexities and build a personalized strategy that grows with you. Your future self will thank you for the decisions you make today!

Tariffs are back in the news—and with them, the usual wave of concern. Questions about inflation, global trade, and economic growth are once again front and center. But for long-term investors, the more pressing question is this: Should any of this change your plan?

The short answer? Probably not.

Tariffs are taxes on imported goods, often used as tools of economic strategy or political leverage. While they intend to boost domestic industries, the ripple effects can be unpredictable—impacting consumer prices, corporate earnings, and investor sentiment.

As Jeremy Sorci, CFP®, Principal and Wealth Advisor at Premier Financial, explains: “Tariffs are often positioned as a quick fix or political talking point. But their actual impact on portfolios tends to be much more nuanced—and usually overstated.”

That’s especially true when viewed through the lens of long-term investing.

The Problem with Predictions

Much of the anxiety around tariffs stems not from what they are, but from what they might lead to: inflation, reduced profits, or even stagflation—a scenario where prices rise while economic growth slows.

These are serious concerns, but they aren’t new. And they don’t justify a knee-jerk reaction.

A study by Dimensional Fund Advisors notes that the U.S. experienced 12 years between 1930 and 2024 in which GDP shrank and inflation rose. Surprisingly, in nine of those years, the stock market still delivered positive real returns—proving that markets can be more resilient than they appear​.

Or as Jeremy puts it: “It’s a little like changing your travel plans after the plane has already landed. By the time a tariff policy is announced or implemented, the market has usually priced it in.”

Markets Move Fast—And They Move Ahead

When tariffs dominated headlines during the U.S.–China trade tensions of 2018–2019, many investors expected emerging markets—especially China—to suffer. Yet both U.S. and Chinese equity markets outperformed global peers during that period​.

The takeaway: headlines don’t always predict outcomes. And reactionary moves can be costly. “We tell our clients that a strong financial plan is designed to hold up across economic cycles,” says Jeremy. “It’s not about avoiding turbulence—it’s about being prepared for it.”

Staying Grounded in What Matters

At Premier Financial, we believe the antidote to uncertainty isn’t prediction—it’s planning. Tariffs might change the short-term environment, but they don’t change the fundamentals of long-term success: diversification, cost efficiency, and staying invested.

“When markets get noisy, it’s tempting to act,” Jeremy notes. “But more often than not, the best action is sticking to a well-built strategy.”

That’s where we focus our energy: on what can be controlled. Asset allocation. Tax efficiency. Investment costs. And helping clients make decisions aligned with their goals, not the news cycle.

Final Thought

Tariffs will continue to rise and fall in political and economic discourse. But long-term investors don’t need to guess where they’re going.

Instead, they can rely on a thoughtful, disciplined approach—and a team that helps them filter the signal from the noise.

At Premier Financial, we’re here to help you stay focused on what matters most: your goals, your values, and your financial peace of mind.

In recent years, socially responsible investing (SRI) has gained traction among investors who want their money to align with their values. The idea is compelling: invest in companies that promote ethical business practices, sustainability, and social good. However, as financial advisor Jeremy Sorci, CFP®, AFIM®  points out, the reality often doesn’t match the marketing.

The Problem with Socially Responsible Investing

The main issue with SRI is the lack of a standardized definition. As Jeremy points out, “There’s no industry standard, so what one fund considers socially responsible may be very different from another.” Most SRI funds exclude so-called “sin stocks”—gambling, alcohol, tobacco, pornography, and firearms. But what about other moral gray areas? Many investors are surprised to find that companies with questionable labor practices, environmental records, or political affiliations are still included in these funds. Without a universally accepted framework, SRI becomes a branding exercise rather than a meaningful investment strategy.

Does SRI Really Make a Difference?

One of the biggest misconceptions is that by investing in socially responsible funds, investors are directly influencing corporate behavior. Jeremy summed it up well: “Your purchase has absolutely no bearing on how that company does.” When you buy a stock on the secondary market, your money doesn’t go to the company—it goes to another investor selling shares. This means that owning or avoiding a stock has little to no impact on the company’s bottom line.

As Jeremy argues, a more effective approach is to invest broadly and then use the returns to support causes you believe in. Instead of limiting your portfolio to companies with a feel-good label, consider maximizing your investments and using the profits for direct charitable giving or socially impactful spending.

The Marketing Illusion

The rise of SRI can largely be attributed to marketing. Fund managers know that many investors want to feel good about where their money is going, and they capitalize on that desire by creating funds that appear to align with ethical principles. However, a closer look at the holdings of many SRI funds reveals inconsistencies. Some funds include major corporations with mixed records on labor rights, environmental policies, or political lobbying.

A key takeaway from Jeremy’s perspective is that SRI is often more about optics than substance. Investing based on a fund’s label, rather than its actual impact, is akin to choosing a bottle of wine based on its label design—attractive, but not necessarily better.

A More Rational Investment Strategy

Premier Financial’s philosophy is grounded in evidence-based investing, transparency, and long-term financial peace of mind. Instead of chasing trends like SRI, Premier emphasizes diversification, risk management, and aligning investments with personal financial goals.

For clients concerned about making a difference, Jeremy offers a pragmatic approach: invest wisely across a diversified portfolio, maximize returns, and then direct charitable contributions to organizations that truly create change. This method ensures that your financial future is secure while also supporting the causes you care about in a meaningful way.

The Premier Perspective

At Premier, integrity is the cornerstone of everything we do. We don’t chase fads or make promises based on marketing gimmicks. Instead, we provide clear, transparent guidance that helps clients navigate their financial journeys with confidence. Our mission is to help you accumulate, preserve, enjoy, and distribute your wealth in ways that align with both your financial goals and your values.

Financial peace of mind comes from making informed, strategic decisions—not from falling for the latest investment trend. If you want to have a real impact, focus on what truly matters: sound investment principles and intentionality.