Merging lives also means merging money—and that’s where things can get tricky. If you and your spouse are navigating the financial complexities of a blended family, you’re likely juggling everything from separate 529 plans to different retirement goals. But there’s one often-overlooked relationship that can make a big difference in your financial clarity: your CPA.
Your CPA can be a valuable advisor, offering insights and guidance on tax matters essential to your financial well-being.
Open communication is key to making the most of this relationship. Whether you’re exploring tax strategies, understanding the tax implications of investment opportunities, planning for retirement, or making business decisions, your CPA can work closely with your financial advisor to help you make well-informed financial choices.
Here are some important questions to consider discussing with your CPA before the end of the year.
1. What are the pros and cons of filing separately vs. jointly?
Filing jointly often results in tax savings, but it’s not always the best option, especially for blended families. If you and your spouse manage finances separately due to different financial obligations, such as child support or alimony, filing separately may better align with your situation.
A qualified CPA can help you assess both approaches based on your income, liabilities, and family dynamics. Their guidance ensures you choose the filing method that supports your overall financial strategy and complies with any legal or financial mandates specific to your family.
2. What tax deductions, credits, or dependent claims should we consider?
Every year, your eligibility for tax deductions and credits can shift based on your income, family structure, and changes in tax laws. For blended families, the landscape is even more complex, especially when managing shared custody, multiple dependents, or varying income sources between spouses. Common considerations include child tax credits, education deductions, healthcare premiums, and support payments.
Your CPA plays a critical role in identifying applicable deductions and credits, factoring in investments, income streams, and significant life events. They can help you spot tax-saving opportunities you might otherwise overlook, especially in your first year as a newly blended household.
Claiming dependents is another key area that requires thoughtful planning, particularly if children from previous relationships are involved. Sometimes legal agreements dictate who claims which child, and in other cases, strategic decisions can optimize your tax benefits. The IRS has specific rules for claiming children of divorced or separated parents, which your CPA can help navigate.
Additionally, certain credits, like education credits, come with income limits and dependency requirements that can affect your eligibility. Collaborate with your CPA well before tax season to map out a claiming strategy. This may involve coordinating with an ex-spouse to ensure compliance and maximize benefits. By planning ahead, you’ll avoid last-minute surprises and position your family for the best possible tax outcome.
3. How do changes in tax laws, my finances, or my family affect my estate plan?
Keeping your CPA informed about your estate plan ensures it stays aligned with both your family’s evolving circumstances and the latest tax laws. Estate planning is closely tied to your financial situation, which can shift with life events such as marriage, divorce, the birth of children, or changes in income, assets, or business ownership. For blended families in particular, it’s important to revisit how you and your spouse intend to divide your estates. Will you split assets evenly, or structure inheritances differently based on individual wishes or existing children?
At the same time, tax laws governing estates, inheritances, and wealth transfers can change significantly over time. Your CPA can help you stay ahead of these shifts by identifying how updates in the tax code may impact your plan, and by providing strategies to minimize tax liabilities while preserving your legacy.
With their guidance, you can ensure your estate plan remains tax-efficient, legally sound, and reflective of your family’s shared vision for the future.
4. How should we title and report our businesses and investments?
If you or your spouse owns a business, rental properties, or significant investments, it’s essential to carefully consider how those assets are titled and reported. Much of this decision depends on how fully you’re merging your finances, but consulting a CPA before making any changes is key to avoiding unintended tax consequences or legal complications.
You’ll also want to consider whether any assets are earmarked for specific heirs. If so, titling them appropriately can help ensure a smooth and intentional transfer when the time comes. This is an area where collaboration between your CPA, financial advisor, and attorney can be invaluable—each brings a critical perspective to help align your ownership structure with your financial and estate planning goals.
Another important discussion is whether to keep certain assets separate or merge some or all of them as part of your shared financial life. A CPA can provide guidance on ownership structuring, help you track your basis in each asset, and assist in preparing for efficient gifting or inheritance strategies. Having a clear plan in place not only simplifies tax reporting but also helps preserve family harmony and ensures your assets are managed in line with your shared vision for the future.
5. Are there any changes to health insurance premiums or deductions that could affect my tax situation?
Keeping up with changes to health insurance premiums and deductions can be challenging, especially considering their impact on your tax liabilities and financial planning. Your CPA stays informed on healthcare laws and regulations, including how they relate to changes to premiums and deductions, so they can help you understand any potential tax implications.
Being aware of changes to healthcare policies helps you plan effectively. For instance, updates in healthcare laws or changes in your coverage status can influence the deductibility of your health insurance premiums. Your CPA can provide guidance on eligible deductions based on your circumstances, such as employment status, types of coverage, and medical expenses.
Additionally, they can recommend strategies to optimize your deductions, such as using Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), to ensure you make the most of available tax benefits.
6. How can I maximize tax deductions for my business or self-employment income?
Maximizing deductions and optimizing your self-employment income for tax benefits can be complex, but your CPA has the expertise in tax laws and regulations specific to businesses to help you identify deductible expenses you might overlook and advise on effective strategies.
Understanding the nuances of deductible expenses, depreciation, and business credits can significantly impact your tax liability. Your CPA can guide you on structuring transactions and managing finances to maximize tax deductions effectively. They can also assist with navigating complex areas like home office deductions, retirement contributions, and health insurance premiums.
Effective financial management and compliance with tax laws are crucial for your business’s success and sustainability. Building a strong relationship with your CPA ensures you have a trusted advisor to turn to with questions, helping you make informed decisions and optimize your financial strategy.
Partnering with Your CPA
Engaging with your CPA and staying informed about key financial questions is essential for sound financial planning. This becomes increasingly important as you bring two households together, combining some aspects of your finances while deciding whether other components should remain separate. As your family’s status changes, your opportunities for potential tax savings can change as well.
Until a couple of years ago, I was a crypto skeptic. No, that’s not strong enough.
I didn’t think Bitcoin was all smoke and mirrors. I was sure of it!
Then I started reading what a semi-retired investment banker had to say about it. Dave Coker said he’s been buying Bitcoin every week for years.
Say what?!
An investment banker, who’s been around the financial block far more than I’ll ever be, who has enough invested in conservative dividend stocks to cover his expenses five times over, that guy thinks Bitcoin is a good investment?
That started me thinking more seriously, maybe I should do some of the same?
Putting My Toes in the (Crypto) Water
At that point, I had no idea how one even buys crypto.
I was clueless about self-custody of crypto coins (“Not your wallet, not your coins…”).
Hot wallets, cold wallets, software wallets, hardware wallets, multi-sig wallets — that was all just word salad to me.
So, I took the simplest, easiest, and possibly safest (given my ignorance) way in. I bought a bit of Bitcoin through PayPal’s convenient crypto account (not an endorsement — do your own due diligence).
Then I bought some more.
Then I bought some of “alt coins” they offered. And I started reading to educate myself enough to stop figuratively walking around with a large “Scam me!” sign on my forehead.
That was December 2023.
Fast forward a few months, and those alt coins went down enough to shake me loose, but Bitcoin appreciated by almost 50%.
Great News, But with a Cloudy Lining
With an investment going up 50% in four months, you’d think I’d be thrilled.
I was, but it also got me thinking – what happens when I decide to take profits? A hefty tax bill, that’s what.
I’m one of the rare breed who actually think paying income taxes is good. That’s what funds those things we often take for granted – great highways, national defense, mostly safe food, mostly safe drinking water, mostly breathable air, etc.
It’s just that if my investment kept going up anywhere near that rate (yeah, right!), in just five years, a $10k investment would be worth over $4.3 million!!!
And even at long-term capital gains tax rates, the tax bill when selling it would be over $860k!
All that, with just $10k invested.
But what if I invested even more? I don’t know about you, but owing millions in taxes isn’t my idea of fun.
How to (Legally) Avoid Paying Taxes on Billions in Gains
The TL;DR of it is that he invested about $2k of his Roth money in startup companies, and when they exploded in value, his shares ended up worth about 250 times as much as it takes to make it to the top 1% in net worth for Americans.
Even ignoring all his other assets, that would have put him solidly in the middle of the Forbes 400 list of wealthiest Americans!
If you know anything about Roth accounts, you know that Thiel would owe exactly $0 in taxes on that $5 billion investment, despite 99.99996% of it being pure gains.
Pulling My Own (Small-Time) Thiel Maneuver (Hopefully!)
At the time, I had about 2.5% of my invested net worth in a Roth IRA.
What if I invested 100% of that in a Bitcoin ETF? I mused.
If Michael Saylor is to be believed, Bitcoin could go to $13 million per coin by 2045. But even if it never hits that exorbitantly lofty price and goes to “just” $1 million, my Roth IRA would be worth over 15 times its starting value.
That would increase it from 2.5% of my invested net worth to nearly 40%, while increasing said net worth by almost 40%. And best of all, like Thiel’s $5 billion Roth, none of my Roth’s 15x increase would be taxable – sweet!
And for the mathematically curious among you, if Bitcoin ever hits $13 million, my net worth would increase sixfold (assuming none of my other investments ever made a dime). And since none of it would be taxable, the after-tax impact would be closer to 10x!
But What If Bitcoin Goes to Zero?
Before we go all starry-eyed, we have to acknowledge that this is a risky bet.
Here’s a non-exhaustive list of risks, in no particular order:
Saylor’s company owns nearly $72 billion worth of Bitcoin, so if, for whatever reason, they’re forced to liquidate, Bitcoin would crash.
Since Bitcoin is considered by many to be “digital gold,” what happens if that narrative is ever abandoned, either because some other cryptocurrency becomes the new darling investment of the day or because Bitcoin loses grace for any other reason?
If quantum computing development happens faster than Bitcoin encryption can be made “quantum-decryption-proof,” Bitcoin could become worthless.
So, keeping these and other risks in mind, and remembering that Bitcoin has gone through some incredible crashes (99% loss in a single day in 2011, 83% in 2013, 84% in 2017-18, plus several crashes of over 50%), I had to consider the downside.
My worst-case scenario was that Bitcoin literally goes to zero.
In that case, my investment portfolio would lose 2.5% of its value. Not fun, for sure, but what does it mean in practice?
I expect that we can live on under 4% of our portfolio value per year in retirement. If the portfolio loses 2.5%, that’s not even a bad year in the stock market. And even if we put such a 2.5% loss on top of other potential investment losses, we could either draw 4.1% instead of 4% in retirement, or reduce our retirement budget by (a very survivable) 2.5%.
An Asymmetric Bet I Was Happy to Make
Considering that the (implausible) worst-case scenario is easily survivable, and that even a semi-plausible best-case scenario adds 40% to our net worth, I decided that putting 100% of my Roth money into Bitcoin (via a spot ETF) was a no-brainer bet.
Should You Do the Same?
Here are several reasons for you to avoid doing what I did:
If when, not if, Bitcoin crashes again, you’ll panic-sell because you can’t sleep at night, don’t do it.
If losing a few percent of net worth would move you from barely able to afford retiring to just not able to afford it, don’t do it.
If your portfolio is already extremely risky and you don’t want to make it even more so, don’t do it.
But if none of the above is true for you, I’d suggest you seriously consider it.
It’s not for nothing that BlackRock, the largest asset manager in the world, recently started suggesting that its clients put 2-3% of their investment portfolio into Bitcoin.
Tim Dyer, Owner, Dyer Wealth Management, sees this as a valid option, for some, “Investing Roth IRA funds in cryptocurrencies may or may not be a good idea. Clients want to take advantage of tax-free growth within the account. However, they don’t want to ‘squander’ that opportunity by investing in something that might lose a significant fraction of its value.
“One metric we use with clients to assess suitability is if they qualify for the ‘mega’ back-door Roth opportunity through their employer-sponsored plan. This often lets them plow up to $60k into their tax-free Roth account per year. In such instances, using a small portion of those funds to speculate longer-term with cryptocurrencies, like Bitcoin, may be warranted. If clients simply contribute up to the $7k annual limit ($8k if over age 50), the juice may not be worth the squeeze, so to speak.”
In fairness, there are many out there who see a 2-3% allocation as woefully short of what they think is called for.
Given the current fiscal realities, with our national debt already over 20% higher than our Gross Domestic Product (GDP) and increasing by the minute, like the dollar, Euro, Yuan, etc. facing large inflationary pressures due to massive money printing, etc., these people think that even a 40% allocation (!) is too little.
Shane Galante, Co-Founder of CSG Financial, thinks even such a large allocation can sometimes be reasonable for certain people, “Younger clients, say under the age of 40, can have 5-25% of their assets allocated to Bitcoin in their Roth IRA.
“One of the questions I ask to see if this could be a good fit is, ‘Are you okay knowing you could lose 50% of this money at any given moment?’ Bitcoin is an extremely volatile asset and is known for major price swings, up or down. If a client can’t stomach these moves, they may be better off investing in something else.
“People need to understand that while Bitcoin and other cryptocurrencies are becoming more mainstream, they are relatively new markets. Bitcoin, the first cryptocurrency, was created in 2009, 16 years ago. The stock market, by comparison, has been around since the 1800s.”
Well, color me (just a tad) conservative, but I hesitate to make such a huge bet on Bitcoin, especially when even a few-percent allocation could make us multi-millionaires.
The Bottom Line
Crypto is far from a sure bet.
And if you want to invest in it other than through an ETF, you need to learn a lot to do so safely.
But if you agree with me that the investment case is highly asymmetric, with a survivable worst-case downside vs. an incredible upside potential, you may want to consider investing in Bitcoin. And if you do, you may want to consider investing through a Roth account so your (potentially huge) gains would be tax-free!
Because sometimes, while playing it safe ensures you don’t lose big, you’ll probably still lose compared to those who take carefully calculated risks.
Disclaimer: This article is intended for informational purposes only, and should not be considered financial advice. You should consult a financial professional before making any major financial decisions.
About the Author
Opher Ganel, Ph.D.
My career has had many unpredictable twists and turns. A MSc in theoretical physics, PhD in experimental high-energy physics, postdoc in particle detector R&D, research position in experimental cosmic-ray physics (including a couple of visits to Antarctica), a brief stint at a small engineering services company supporting NASA, followed by starting my own small consulting practice supporting NASA projects and programs. Along the way, I started other micro businesses and helped my wife start and grow her own Marriage and Family Therapy practice. Now, I use all these experiences to also offer financial strategy services to help independent professionals achieve their personal and business finance goals. Connect with me on my own site: OpherGanel.com and/or follow my Medium publication: medium.com/financial-strategy/.
Divorce after 50—often called “gray divorce”—is becoming increasingly common. While it carries many of the same emotional challenges as any divorce, it also brings unique financial and tax implications that demand careful attention. At this stage of life, decisions made during divorce can have long-lasting consequences.
Why Gray Divorce Is on the Rise
Longer life expectancy, shifting social norms, and changing personal priorities are driving more couples to separate later in life. In many cases, couples realize that the life they want in retirement no longer includes their spouse. Others face challenges in long-standing marriages that have grown apart. But the financial consequences of divorcing at this stage can be particularly complex, especially with retirement on the horizon.
Dividing Retirement Assets
Retirement accounts like IRAs, 401(k)s, and pensions often represent a significant portion of marital wealth. These need to be divided equitably, and in many cases, this requires a Qualified Domestic Relations Order (QDRO), especially for workplace retirement plans.
It’s crucial to avoid early withdrawal penalties and unnecessary taxes. Proper structuring ensures assets are transferred appropriately and remain protected within retirement vehicles. Spouses should also consider the long-term income implications of dividing these accounts—what may seem equitable on paper might result in unequal retirement readiness.
Social Security & Medicare Impacts
You may be eligible to claim Social Security benefits based on your ex-spouse’s work record—provided the marriage lasted at least 10 years and certain other conditions are met. This can be a vital source of income in retirement, especially for individuals who did not work outside the home or who earned less than their spouse.
Timing also matters. Claiming too early or late can significantly impact lifetime benefits. A financial advisor can help model different claiming strategies to maximize this income stream. Medicare eligibility and costs can also shift post-divorce, especially if coverage was previously through a spouse’s employer or if a change in income affects premiums.
Tax Filing & Deductions
Your tax filing status changes post-divorce, often increasing your overall tax liability. Understanding these shifts ahead of time can help with planning. For example, the transition from “married filing jointly” to “single” or “head of household” can result in different tax brackets and benefit phase-outs.
Since 2019, alimony is no longer tax-deductible for the payer nor taxable to the recipient. That alters how spousal support is structured, potentially impacting negotiations.
Additionally, the marital home—if sold—could trigger capital gains tax. The $250,000 per-person exclusion is available, but only under certain conditions. Coordination of timing and ownership is key to minimizing tax exposure.
Long-Term Care & Insurance
Divorce prompts a reassessment of insurance needs. This includes life, health, and especially long-term care insurance. These policies are critical in safeguarding assets later in life, particularly if one or both parties will now face aging alone.
Without a partner to rely on, long-term care becomes a greater risk. It’s also important to clarify who, if anyone, will be responsible for caregiving—financially or otherwise—in the future. These decisions often need to be formalized to avoid confusion and disputes later on.
Estate Planning Reset
Post-divorce is the time to update all estate planning documents. This includes wills, powers of attorney, healthcare directives, and any trusts. An outdated estate plan can leave important decisions in the hands of an ex-spouse or create unnecessary complications for heirs.
Beneficiary designations on retirement accounts, insurance policies, and trusts should also be reviewed and revised. These designations override wills, so failing to update them could unintentionally benefit the wrong person.
Conclusion: Planning Is Power
Gray divorce can feel overwhelming, but the right planning brings clarity and control. With retirement so close, there’s little margin for error. Every decision—from dividing assets to managing healthcare—should be made with both the immediate and long-term impact in mind.
A fiduciary financial advisor can help you understand your options, avoid costly mistakes, and create a new financial plan that reflects your goals and values for this next chapter. With support and a solid plan, it’s possible to build a secure, independent future.
Money doesn’t just affect your bank account—it touches nearly every part of your emotional well-being.
Financial stress can lead to anxiety, sleepless nights, relationship conflict, and feelings of shame or failure. On the flip side, a sense of financial clarity and control can bring peace, confidence, and freedom.
At Life Story Financial, we believe that money is more than math. It’s emotional. It’s personal.
And for many women—especially those navigating divorce, career change, or retirement—it can feel overwhelming. That’s why tending to both financial and mental health is so essential.
The Emotional Toll of Financial Stress
Nearly half of U.S. adults say that money is a major source of stress in their lives. This stress often shows up in subtle ways:
Avoiding opening bills or account statements
Arguing with a partner about spending
Feeling shame around past financial decisions
Worrying constantly about the future
Delaying important decisions because of fear or uncertainty
These feelings can be particularly intense during major life transitions. Divorce can create not only legal and emotional upheaval, but financial confusion. Retirement can bring anxiety about whether you’ll have enough. Even a sudden windfall—like selling a business—can cause stress if you’re unsure how to manage it.
Financial Health Supports Mental Health
When you gain clarity about your financial life, something shifts. You start to feel more grounded, more capable, and more at peace.
This doesn’t mean you have to be wealthy to feel well. It means knowing:
What you own
What you owe
Where your money goes
What your goals are
And how your current choices support—or hinder—those goals
This clarity fosters confidence. It helps you feel more in control, more resilient, and better prepared for life’s uncertainties.
Why Women Face Unique Financial Pressures
For many women, money is wrapped up in cultural expectations, family roles, and career disruptions. You may have stepped away from paid work to raise children, supported a partner’s career, or found yourself managing finances alone after a divorce or widowhood.
That history can shape how you feel about money today. And it can leave you feeling isolated or behind—even when you’re financially secure on paper.
At Life Story Financial, we hold space for these experiences. We recognize that financial advice must be personal. Compassionate. And rooted in your story.
Practical Steps to Support Both Financial and Emotional Health
You don’t need to overhaul everything overnight. But there are small steps you can take—starting now—that support both your mental and financial well-being:
1. Get it out of your head and onto paper. Write down your financial to-dos. Seeing them in black and white reduces mental clutter and helps you take action.
2. Identify your financial stress triggers. Is it credit card debt? Uncertainty about retirement? Not knowing where your money goes each month? Naming it helps reduce its power.
3. Take one small, meaningful action. Schedule a meeting with a financial advisor. Review your bank statements. Increase your retirement contribution by 1%. Even tiny steps build momentum.
4. Use values as your compass. Financial wellness isn’t about perfection. It’s about aligning your money with what matters to you—freedom, security, generosity, creativity, or legacy.
5. Work with the right guide. Having someone in your corner makes all the difference.
Someone who listens to your goals, understands your concerns, and helps you make a plan that feels right for your life.
It’s Okay to Ask for Help
You are not behind. You are not alone. And it is never too late to make peace with your money.
If you’re feeling overwhelmed, know that support is available. At Life Story Financial, we help women like you untangle their financial questions and create plans that feel empowering—not intimidating.
Money is a tool. When used intentionally, it can support a life of purpose, joy, and stability.
[The rapidly accelerating rate of technological development has serious business consequences. The explosion of new tech options and applications are manifesting themselves as a dizzying array of complex decisions affecting firm strategy, client engagement, competitive positioning, and future growth. This speed of innovation is creating an atmosphere at many firms of confusion leading to inaction.
To put this into practical context, the issue of having access to and learning how to implement and apply AI to your business began on November 30, 2022, with the initial public release of GPT-3.5. Just two and a half years later, there are over 30 major frontier-scale models (e.g., Claude, Gemini, LLaMA, Grok) and well over 1,000 publicly known models now encompassing Large Language Models (LLMs), Multimodal Models (text + image + audio/video), Domain-Specific Models (legal, medical, financial), Open-Source Models on platforms, and Proprietary Internal Models used by enterprises and startups. The decision on how to employ AI to your business has become exceedingly more complex.
That is why our current business environment is a vastly different operating environment than we are used to. It is driven by a “compounding” rate of change as technology keeps feeding on itself and getting more powerful and versatile. To be able to compete and thrive in this new business dynamic, firms need to keep up with that rate of change. They have to be fully in it.
Business leaders cannot afford to sit this out and wait to see where it is going and plug in later. The gulf between where firms are deciding to wait and rely on tweaking traditional legacy systems/processes and where competitors are engaging clients and operating at scale with the latest applications of AI and other new technologies, can be insurmountable. The age of slow AI experimentation is over as these latter future-focused wealth management firms are demanding quick implementation and proof of outcomes.
To learn more about this need for speed in tech today, I was introduced to Sam Kaessner, VP of Engineering, at TIFIN AMP – an asset management AI platform which combines data science, engineering, AI, and visualization capabilities to drive more intelligent distribution. In our conversation we explore how TIFIN’s Data Science and Engineering teams have adopted an “innovation at speed” mindset that is geared to generate measurable commercial outcomes exponentially faster.
This interview delivers a strong message to financial firms that there is no longer enough time to just experiment – you need to start figuring out how to execute, evaluate, and evolve with velocity to compete in today’s hyper-competitive and ever-changing business environment.]
Hortz: What is an “Innovation at Speed” mindset?
Kaessner: An “Innovation at Speed” mindset for us is about having a collective mental attitude and operating approach that drives our whole team, our whole company, to do things in days and weeks, not months and years – to vigorously create and effectively deploy AI capabilities and new technology solutions on an accelerated timeline.
We further believe this mindset and approach is vital to staying effective in the rapidly changing AI landscape. This rapid pace of AI development creates a “forcing function” that requires companies to innovate quickly to stay competitive and leverage the latest technology and tools.
We no longer have the luxury of taking six months to validate an idea or “experiment” in the AI tech space. When you are working in this exponentially changing tech environment, you have to stay on top of that progress – making sure you are part of and plugging into that speed of innovation.
Hortz: How does this mindset drive different work behaviors and outcomes? How is the actual innovation development process altered?
Kaessner: We can just solve client problems directly, skip all the bureaucracy, and really focus on the pain points of our customers, like wholesalers and sales managers in our AMP business unit. Our business mantra and tech structure allow us to quickly deploy new features and solutions for clients based on direct feedback and dynamic collaboration. We are then able to go from identifying a client need to rapidly build, iterate, and deploy a solution in just a few weeks, skipping the traditional pilot/prototype phase.
TIFIN has built a flexible, scalable, distribution technology platform (AMP 3.0) that allows us to quickly deploy speed-to-value business solutions for clients, keep up with the pace of technology and technological change, knowing we have guardrails and systems in place.
Adopting our “innovation at speed” mantra, along with structurally maintaining separate innovation business units and operating structures in place, ensures that we can still move fast, but also still have the maturity of a trusted partner that financial firms can collaborate with to keep up with rapid technological changes.
Hortz: Can you walk us through an example of your “innovation at speed” process on a recent TIFIN product or enhancement?
Kaessner: Just last week, our customer asked us for some specific features and capabilities to be added on a Tuesday and we delivered them the following day. We are at this point where we can add new capabilities really quickly because our enhanced AMP 3.0 platform infrastructure and scalability, now in its current third iteration, allows us to maintain our pace of rapid deployment to deliver quickly on client needs.
We can also look across all of our asset management clients and have seen how their needs have played out before for guidance – we know what we need to do and how we need to deliver the needed change.
Another example is when we talk to wholesalers, we are able to get their direct feedback and solve their pain points directly. Because we are working with them in collaboration as a trusted partner, they are helping us shape our product offerings developing new features again in weeks to solve their needs. They recently asked us to deliver a number of ways for them to sell specific products more effectively – which we are actively working on right now.
Part of innovation is being really close to our customers and end users – the people that we solve problems for. That is what we are focused on doing.
Hortz: Where is this “innovation at speed” taking you and your team? What areas of AI development and applications for financial services are you exploring?
Kaessner: Our platform has provided a lot of value by having done all the hard work of being selective with what data is chosen and how it is organized to provide an experience that is highly tailored to the Asset Management industry.
One thing that we are looking at right now to add further value for distribution professionals is to enhance our AMP 3.0 platform by adding AI agents and Large Language Models(LLM) workflows. Having spent time getting the client’s data curated on the AMP platform, we want to create features that allow their data to be more integrated, easily accessible, and strategically used through added AI tech capabilities.
What the platform end user could do then is use an AI agent to say, Hey, I want to write a meeting agenda, so get me everything from AMP platform that we know about this potential advisor buyer – needs and interests – and write me a meeting agenda to maximize my time with them discussing the right opportunities and adding value to the advisor. And so, in a nutshell, it is really just providing a trusted way for AI to access data on the platform and build these workflows on top of the client’s curated dataset.
Hortz: What is your advice to financial firms on how to gear themselves up to fully implement and apply AI and other technologies at this juncture of the tech cycle in financial services?
Kaessner: You need a great deal of experience and expertise to develop AI and technical systems and even more to stay ahead as the pace of innovation accelerates. Keeping up requires more than just hiring smart people. It demands a deep technical culture and a mindset built around rapid iteration, constant learning, and execution at the edge of what is possible.
For most financial firms, that is incredibly hard to build and sustain internally. Internal teams often underestimate just how much effort, time, and specialization it takes. I say that not as a tech vendor pitching services, but as someone who has been on the other side and knows the nature of the beast.
I would highly suggest that this should not be conducted as a vendor/purchase decision. You are not purchasing a fixed product. That is not the way to look at it. What you are doing is determining a longstanding strategic tech partner. You want someone who is built for speed and adaptability as the technical landscape shifts. Not just addressing today’s tech needs for your firm but also addressing your ongoing future needs as they change and AI capabilities shift.
Bill Hortz is an independent business consultant and Founder/Dean of the Institute for Innovation Development- a financial services business innovation platform and network. With over 30 years of experience in the financial services industry including expertise in sales/marketing/branding of asset management firms, as well as, creatively restructuring and developing internal/external sales and strategic account departments for 5 major financial firms, including OppenheimerFunds, Neuberger&Berman and Templeton Funds Distributors. His wide ranging experiences have led Bill to a strong belief, passion and advocation for strategic thinking, innovation creation and strategic account management as the nexus of business skills needed to address a business environment challenged by an accelerating rate of change.
What this article covers
If you’re a confident, self-directed investor, you may not want a financial advisor who takes over management of your portfolio — but you might still want expert guidance on the decisions that really matter. Advice-only financial advisors offer exactly that: professional financial planning and investment guidance without managing your assets or earning commissions, at a cost that’s typically far lower than traditional advisory fees. This guide explains what advice-only services are, how they compare to traditional advisory relationships, what questions to ask before hiring one, and where to find advice-only financial advisors on Wealthtender.
If you consider yourself a DIY (do it yourself) kind of person, you’re not alone. Millions of Americans successfully start and complete DIY projects every day.
But just because you decide to do a project yourself doesn’t mean you have to learn how to do the task on your own. In fact, most DIY projects start with education in the form of instructional videos, articles, books, or even live demonstrations.
The same holds when it comes to managing your personal finances and investing. If you consider yourself a DIY investor and are comfortable managing your own money, you may not want to hire a traditional financial advisor and turn over financial decision-making to someone else.
Fortunately, a new breed offinancial advisors offering advice-only services has emerged as a popular choice among DIY investors interested in professional guidance at a very attractive cost.
Key Takeaways
1
An advice-only financial advisor provides professional guidance and a financial plan — but you, not the advisor, implement the recommendations. This is fundamentally different from traditional advisory relationships where the advisor manages your investments.
Because advice-only advisors don’t manage assets or earn commissions, their compensation isn’t tied to any product outcome — which means their guidance can go anywhere your financial situation requires without the constraints or conflicts that come from managing a portfolio. Most charge an hourly or flat fee, and many are SEC-registered RIAs who hold the CFP designation. The tradeoff: you’re responsible for executing the plan yourself, which requires a level of financial confidence and follow-through that not every investor has.
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There’s an important distinction between “advice-only advisors” who exclusively operate this way and traditional advisors who offer advice-only as one option among several — and that distinction matters when evaluating conflicts of interest.
A dedicated advice-only advisor has structured their entire practice around not managing assets or earning commissions — eliminating the most common conflicts that arise in financial advisory relationships. An advisor who offers advice-only as one of several service options may still have business incentives that subtly favor other arrangements. Both can provide legitimate advice-only services, but understanding which type you’re working with helps you evaluate the advice you receive more accurately.
3
Advice-only services are best suited to DIY investors, high-asset clients who want to avoid percentage-based AUM fees, and anyone seeking a second opinion on a financial plan they’ve already developed.
For a self-directed investor managing a large portfolio, the savings from avoiding a 1% AUM fee can be substantial — on a $2 million portfolio, that’s $20,000 per year that stays invested instead of going to an advisor. Advice-only services are also well-suited to one-time planning engagements: reviewing a retirement plan, evaluating a job offer’s equity compensation, or stress-testing a financial strategy before a major decision. The key question to ask any advice-only advisor: do they provide tools or technology to help you implement their recommendations independently?
Advisors Who Offer “Advice-Only Services” vs. “Advice-Only Advisors”
As you evaluate financial advisors who offer “advice-only” services, it’s worth noting a distinction between advisors who may offer multiple compensation models for their services, with “advice-only” among them vs. advisors who hold themselves out as “advice-only advisors” and exclusively act in an advice-only capacity.
When financial advisors provide advice-only financial planning services and investment guidance, it’s their clients, not the advisors, who are responsible for implementing the recommendations independently. Because these advisors do not manage your investments for you, the cost of hiring a financial advisor offering advice-only services is often considerably less than hiring a financial advisor and paying a percentage of assets under management, especially for people with large investment portfolios.
“Advice-only advisors” are Registered Investment Advisors (RIAs) regulated by the Securities and Exchange Commission (SEC) or by state regulators where their services are available. Many advice-only financial advisors will hold their Certified Financial Planner certification and will likely charge an hourly or flat fee for their services.
While you’ll be responsible for implementing recommendations on your own, some advice-only financial advisors offer technology and tools to make it easier for you to follow their guidance. Before hiring an advice-only advisor or an advisor who offers advice-only services, be sure to ask if they offer resources to help streamline your DIY efforts.
Should I Hire a Financial Advisor Who Offers Advice-Only Services?
If you consider yourself a DIY investor, you may still desire the benefit of professional guidance a financial advisor who offers advice-only services can provide to help you make smart decisions with your money. Or, if you’re looking for a second opinion regarding investment decisions or a financial plan you’ve prepared on your own, an advice-only financial advisor can review your work and offer feedback and recommendations to help ensure you’re on track to achieve your financial goals.
How to Find Financial Advisors Who Offer Advice-Only Services
📍 Click on a pin in the map view below to discover financial advisors who offer advice-only services and can work with you to develop a personalized financial plan. Or click the Grid option to view these advisors in a directory.
What Questions Should You Ask Before Seeking Advice-Only Services?
To help you find the right financial advisor who offers advice-only services for your individual needs, it’s best to ask the right questions to determine if you’re a good fit to work together.
We asked financial advisors who offer advice-only services in the Wealthtender community for their thoughts on good questions to ask.
Eric Simonson, CFP®, CRPC®, CLTC®Advice-Only Financial Planning For Everyone
With an advice-only advisor, you fortunately do not need to ask them the usual questions you would a typical advisor such as 1) What hidden fees do you charge? 2) Do you sell products and make commissions? 3) Are you a fiduciary?
You can rest assured that with an advice-only model, you are receiving some of the fairest, most transparent advice available in our industry. So, the questions you should ask should be tailored more towards your specific situation.
For example, if you have student loans, ask them about their knowledge around student loans and typical strategy for how to tackle that debt. Or, if you own rental properties, how familiar are they with them and what recommendations do they usually provide there? Also make sure it is a good personality fit so ask about hobbies, communication style, etc.
Andrew Dressel, CFP®, CRPC®, APMA®Advice-Only Financial Planning For Everyone
What range of subjects do you work on with your clients? Do those areas of advice align with the needs that you are trying to address? How are your fees determined?
How Does an Advice-Only Financial Advisor Compare to a Traditional Financial Advisor?
Beyond not managing their clients’ investments and earning a fee for this service, how else do advice-only financial advisors differ from traditional advisors? Should you expect the same services other than investment management? We asked advice only financial advisors what they think.
Andrew Dressel, CFP®, CRPC®, APMA®Advice-Only Financial Planning For Everyone
I would say that you should get the same if not more advice from an advice-only financial advisor than you would from a fee-only or commission-based financial advisor. This is because an advice-only financial advisor isn’t tied to a product outcome.
Traditional Financial advisors use financial advice to drive to certain outcomes or products that they receive a benefit or compensation from. The scope of the relationship with and advice-only advisor is based on depth and breadth of the advice that you get.
Eric Simonson, CFP®, CRPC®, CLTC®Advice-Only Financial Planning For Everyone
Every advisor is going to be a little unique in terms of their service offering, but on the whole you can expect advice-only advisors to be much more comprehensive with their advice since their income is in no way tied to the advice they provide. So, they are really free to ‘go anywhere’ with their guidance/advice.
Expert Insights: Should I Hire an Advice-Only Financial Advisor or a Traditional Advisor?
Danielle Miura, CFP®
Spark Financials
“Advice-Only firms ensure transparency of compensation and minimize conflicts of interest. At Spark Financials, we provide financial advice to empower our clients to be self-reliant and visualize their financial future. We are the navigator, and our clients are the driver.
Our firm is set up to not hold or have access to our client’s assets; therefore, our clients are protected from hidden fees. When a financial advisor manages assets, many clients are not able to see the direct impact of fees taken out of their accounts over time.
We also do not refer clients to someone who can manage their assets, preventing any kickback or markup compensation. We minimize conflicts of interest and fees for our clients so they can reach their goals faster and safer. Instead of managing our client’s assets to make them rely on us, we educate our clients so they can eventually be independent. Our goal is to be as transparent as possible; this means no commission and no hidden fees.”
Are You a Financial Advisor Who Offers Advice-Only Services?
👋 Hi there! We’re excited to help more people understand the benefits of working with advice-only financial advisors and advisors who offer advice-only services. And we want to help connect people to the best financial advisors for their individual needs. If you offer advice-only services, we encourage you to join our growing community of financial advisors featured on Wealthtender so we can add you to this guide soon. Click here to learn more and get started.
About the Author
About the Author
Brian Thorp
Brian is CEO and founder of Wealthtender and Editor-in-Chief. He and his wife live in Austin, Texas. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress. Learn More about Brian
Are you among the 400,000 Oregon public employees and retirees who are members of the Oregon Public Employees Retirement System? Get the resources you need and expert insights from financial professionals who specialize in helping Oregon PERSmembers make the most of their benefits.
Whether you’re a new public employee in Oregon, nearing retirement, or enjoying your golden years, it’s important to make smart money moves with your Oregon Public Employees Retirement System (PERS) benefits. For example:
✅ Do you know the right moves to make to get the greatest value from the Oregon PERS benefits available to you?
✅If you’re thinking about leaving pubic employment for a corporate position or planning to retire in a few years, are you taking the right steps today to ensure you will receive all of the compensation and benefits that you’ve earned?
Get the Most Value from Your Oregon PERS Benefits
Throughout the year, Oregon PERS provides its members with updates about their benefits, including health insurance, pension, and defined contribution retirement plans. While Oregon PERS offers many useful resources and access to knowledgeable staff who can assist with questions, you’ll also find financial professionals not affiliated with Oregon PERS who specialize in helping Oregon PERS members make the most of their benefits.
As an Oregon PERS member, you may have questions about your benefits better suited for a financial professional who can offer unbiased advice and guidance.
For example, sensitive topics like discussing the steps you should take before quitting your job as a public employee to work elsewhere or deciding when you should plan to retire are all conversations that may be more comfortable with a trusted financial advisor.
Should you hire an Oregon PERS specialist financial advisor or an advisor close to home?
You’ll likely find dozens of nearby financial advisors well-suited to help you reach your money goals with a personalized plan. But it may be more difficult to find a financial advisor who specializes in serving Oregon PERS members.
Fortunately, many financial advisors offer virtual services so you can meet online no matter where you (or they) live.
This means you can choose to hire a specialist financial advisor who lives on the other side of the state if you decide their knowledge and experience working with Oregon PERS members is a better fit to help with your unique needs.
💡 In the Q&A below, you’ll gain insights from financial advisors who work with Oregon PERS members to help them make smart decisions to get the most value from their benefits, reduce their money stress, and prepare for a comfortable retirement.
🙋♀️ Do you have questions not yet answered? Use the form below to submit questions anonymously and watch this article for updates with answers to your questions. You can also reach out to the financial advisors below to set up an introductory call or contact them with your questions by email.
💸 Smart Money Insights for Oregon PERS Members
This page is organized into sections to help you quickly find the information you need and get answers to your questions:
Q&A: Financial Planning Tips for Oregon PERSMembers
Get Answers to Your Questions About Your Oregon PERSBenefits
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Q&A: Financial Planning Tips for Oregon PERS Members
Answers to Employee Questions with Steven Jamison, CFP®, CPA
Steven Jamison is a financial advisor based in Salem, Oregon who specializes in offering financial planning services to State of Oregon Public Employees (PERS) employees. Steven helps his clients get the most value from their State of Oregon Public Employees (PERS) benefits and compensation package so they can enjoy life and feel confident about their financial future.
Q: As a financial advisor with experience helping State of Oregon Public Employees (PERS) employees save for their retirement, how do you help them make the most of their employee benefits?
Steven: We help navigate decisions regarding tax deferred retirement savings, life insurance, long term care insurance, retiree health insurance, and other benefits, including tax and financial implications during an employee’s employment. We then help with decision making regarding PERS, IAP and OSGP payouts at retirement.
Q: When you first speak with a State of Oregon Public Employees (PERS) employee, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals?
Steven: When were you first hired? When do you plan to retire? What benefits are you currently using? Do you have a spouse you would like to provide for in case of death? What insurance do you have outside of your employee benefits?
Q: Is there a particular benefit available to State of Oregon Public Employees (PERS) employees you feel isn’t as well utilized or understood by employees as it should be?
Steven: The Oregon Savings Growth Plan (OSGP) allows for a 3 year catchup (PDF) beyond the catch up contributions permitted for savers over age 50. For three years prior to the employee’s defined full retirement age the employee can contribute extra amounts if they did not historically maximize their deferrals. I’ve attached a document about this.
Q: Beyond State of Oregon Public Employees (PERS) employee benefits for retirement savings, are there other types of benefits offered by the company that you find valuable to discuss with your clients (e.g., stock, education savings, health savings)?
Steven: Long term care insurance. Life insurance. Retiree health insurance.
Q: For State of Oregon Public Employees (PERS) employees thinking about leaving the company to accept a job elsewhere, what actions do you recommend they take before resigning and shortly thereafter?
Steven: Maximizing available retirement contributions, cash flow permitting.
Q: For State of Oregon Public Employees (PERS) employees approaching retirement age, how do you recommend they prepare to make the transition from living off their salary to relying upon other sources of income?
Steven: Prepare a personal budget for retirement. Evaluate available PERS, OSGP, IAP and other retirement benefits to assess the best spend down strategy, especially for tax efficiency. Consider service buy back options using IAP funds as a potentially tax efficient way to increase the PERS pension payout.
Q: Is there a particularly memorable experience or a moment you recall with a client who worked at State of Oregon Public Employees (PERS) when you realized they have unique opportunities and circumstances when it comes to their financial planning needs?
Steven: We had a client who had been unable to save for retirement for a number of years but found himself inheriting wealth. With the newly available cash he was able to take advantage of the tax benefits associated with the 3 year catchup contributions and make significant progress towards his retirement goals.
Get to Know Steven Jamison Financial Advisor for State of Oregon Public Employees (PERS) Employees:
Are you a financial advisor who specializes in working with Oregon PERS members or a large employer?
✅ Join Wealthtender and get featured as a specialist financial advisor based on your knowledge and experience working with Oregon PERS members or another large company. (Subject to availability and terms.) ✅ Sign up today and join financial advisors attracting their ideal clients on Wealthtender ✅ Or request more information by email:
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About the Author
Brian Thorp
Founder and CEO, Wealthtender
Brian and his wife live in Texas, enjoying the diversity of Houston and the vibrancy of Austin.
With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress.
Like most writers I have a lot of reservations around generative AI. It’s already stolen part of my job, and I’m concerned it’s coming for the rest of it. But burying your head in the sand is probably not the way to go right now if you’re a freelancer.
AI is here to stay. Like most intelligent people, I’m hoping we’re going to be able to find ways to make it ethical and useful, while still retaining and valuing human creativity.
I’m also aware that there are many ways that freelancers like me can use AI tools to increase efficiency, find more clients, and therefore boost profits. Here are some of the ways AI can help you as a freelancer.
Content Creation
Many people are using ChatGPT or similar tools to give them ideas for products, services, blog posts, YouTube videos and social media posts. Some are also using them to write blog posts or video scripts.
I’m not an advocate for getting AI to write these things for you, but it can be used to give you an outline of what people want to know about a particular topic, or what the key points are that you should include.
It’s also great for helping with headlines. AI tools like The Coschedule Headline Analyser and the Capitalize My Title tool, can be used to rewrite your headline, in a specific style and for a specific type of content. This can be really useful given that the headline is always one of the most important elements of any piece of content you put out.
AI can also help with producing visual content. Tools like Canva AI, Napkin, and Kittl can help you design and produce eye-catching visuals and graphics for social media, your website, or your sales pages.
Project Management
I’m a fan of Notion for general, AI-powered project management. It lets me automate repetitive tasks, create deadlines, and set reminders so I can manage the small but complex set of projects that are always on my to-do list as a busy freelancer.
I like that it lets me create a reading/research list for each project I’m working on, letting me switch back and forth between my book, the digital product I’m working on, and day-to-day work like essays, articles and newsletters.
It also lets me manage personal stuff too, from exercise goals to my reading-for-pleasure list, effectively letting me plan out most aspects of my life — from one dashboard.
Finding Freelance Clients
Apob AI is a new tool I’m still finding my way around, but it was recommended to me after something I mentioned in one of my online freelancing forums.
Basically, I lack the video filming and editing skills to make the short videos that are needed to help freelancers stand out on platforms like Upwork, Freelancer.com, and Fiverr.
This one allows you to create professional looking videos in minutes, including ‘talking avatar’ videos, image-to-video, and text-to-video: useful if actually filming and editing videos is outside of your wheelhouse.
It also allows you to find new clients, by offering a broader range of services. Apob AI allows you to easily make things like explainer videos, which are really popular with some clients, or convert written content to video, allowing a broader reach online, across a larger number of platforms, for you and your clients.
These types of videos don’t aim to replace authentic, real-life vloggers, who will likely always be popular on platforms like YouTube or TikTok. They fill a totally different gap in the market for brands and professionals who need quick video content for very specific purposes.
As I say, I’m brand new to this one so can’t delve into any details right now, but I’ll be playing with it a lot in the coming weeks to see if it’s something that can be incorporated into my business.
Extra Tip: Don’t Hide Your AI Skills
One of the reasons AI already has a bad reputation among creatives is that people are using AI to create stuff that they then claim as their own and sell to clients. I can’t stress enough that this is not the way to do it.
Instead, make your ability to use specific AI tools to achieve desirable metrics part of your sales pitch. Many of these tools are simple to use once you’ve learned how, but most freelancers simply don’t know how to use them.
It’s fine to be the freelancer that offers to make “simple, high-quality, explainer videos using cutting edge AI tools”.
It’s fine to be the virtual assistant that can “manage multiple projects via one simple Notion AI dashboard, where I’ll track and organise every task and every deadline, for up to 20 projects at a time.”
Learn how to use a specific AI tool efficiently, creatively and ethically. Then make your AI knowledge and expertise your freelancing superpower, not your dirty secret.
About the Author
Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine.
Learn More About Karen
Do you work at Raytheon Technologies (RTX)? Get the resources you need and expert insights from financial professionals who specialize in helping Raytheon Technologiesemployees make the most of their compensation package and benefits.
Whether you’re a new Raytheon Technologies employee or you’ve moved up the ranks into a management or executive leadership role over a multi-year career, it’s important to make smart money moves with your income and employee benefits. For example:
✅ Do you know the right moves to make to get the greatest value from the Raytheon Technologies benefits available to you?
✅If you’re thinking about leaving Raytheon Technologies for another job or planning to retire from the company in a few years, are you taking the right steps today to ensure you will receive all of the compensation and benefits that you’ve earned?
Get the Most Value from Your Raytheon Technologies Benefits and Compensation Package
Throughout the year, Raytheon Technologies provides its employees and executives with updates about their benefits ranging from health insurance and health savings plans to retirement plans like a 401(k), deferred compensation plans, and stock options. While the company offers many useful resources and access to knowledgeable staff who can assist with questions, you’ll also find financial professionals not affiliated with Raytheon Technologies who specialize in helping Raytheon Technologies employees make the most of their income and benefits.
Whether you work in the Raytheon Technologies headquarters in Arlington, Virginia, another office location around the country, or remotely from home, you may have questions about your compensation package and benefits better suited for a financial professional who can offer unbiased advice and guidance.
For example, sensitive topics like discussing the steps you should take before quitting your job at Raytheon Technologies to work elsewhere, protecting yourself in advance of a corporate layoff, or deciding when you should plan to retire are all conversations that may be more comfortable with a trusted financial advisor.
Should you hire a Raytheon Technologies (RTX) specialist financial advisor or an advisor close to home?
You’ll likely find dozens of nearby financial advisors well-suited to help you reach your money goals with a personalized plan. But it may be more difficult to find a financial advisor who specializes in serving Raytheon Technologies employees.
Fortunately, many financial advisors offer virtual services so you can meet online no matter where you (or they) live.
This means you can choose to hire a specialist financial advisor who lives hundreds of miles away if you decide their knowledge and experience working with Raytheon Technologies employees is a better fit to help with your unique needs.
💡 In the Q&A below, you’ll gain insights from financial advisors who work with Raytheon Technologies employees to help them make smart decisions to get the most value from their compensation and benefits, reduce their money stress, and prepare for a comfortable retirement.
🙋♀️ Do you have questions not yet answered? Use the form below to submit questions anonymously and watch this article for updates with answers to your questions. You can also reach out to the financial advisors below to set up an introductory call or contact them with your questions by email.
Answers to RTX Employee Questions with Allen Mueller, CFA, MBA
Allen Mueller is a financial advisor based in Richardson, Texas, who specializes in offering financial planning services to Raytheon Technologies (RTX) employees. Allen helps his clients get the most value from their Raytheon Technologies benefits and compensation package so they can enjoy life and feel confident about their financial future.
Q: Is there a particular benefit available to Raytheon Technologies employees you feel isn’t as well utilized or understood by employees as it should be?
Allen: A huge benefit to Raytheon employees is the RAYSIP retirement plan which allows pre-tax, Roth, or after-tax contributions. In 2022, a high saver who wants to maximize their tax-advantaged accounts can contribute $20,500 to their pre-tax 401(k) ($27,000 if over age 50). On top of that, they can contribute about $40,000 to the after-tax 401(k) and convert that amount to Roth with an in-service conversion. This strategy, also known as the “Mega Backdoor Roth”, is popular among those who are above the income threshold to contribute to a Roth IRA.
Q: Beyond Raytheon Technologies employee benefits for retirement savings, are there other types of benefits offered by the company that you find valuable to discuss with your clients?
Allen: Raytheon healthcare plans are typically HSA eligible which means maximum account contributions of $3,650 for individuals or $7,300 for families (2022 values). The HSA is a fantastic way to lower taxable income at contribution, the money can be invested to grow tax-free, and withdrawals are tax-free if used for eligible medical expenses. Bonus points – the contributions to an HSA get to dodge Social Security and Medicare taxes if funded through payroll contributions. Building up a massive HSA balance can be an effective way to pay for Medicare premiums in retirement or self-insure for long-term care (LTC).
Another fantastic benefit is the group legal plan – a very cost-effective way to get estate planning documents like wills and trusts drafted for about $240. Normally, these documents cost several thousand dollars. Employees can choose the plan during open enrollment, pay for a year of the service, get documents created, and decline coverage during the next year’s open enrollment.
Q: What are some of the unique financial planning challenges you commonly see among your clients who are Raytheon Technologies employees, and how do you help them overcome these obstacles?
Allen: A common challenge among Raytheon employees, particularly those who are entering retirement, is the large tax-deferred balances in their 401(k) plans. If not mitigated, Required Minimum Distributions (RMDs) can cause a massive tax bill after age 72.
It’s important for retirees to work with a competent financial planner and develop a strategy to get ahead of RMDs during lower-income years. Typically implemented in the “tax planning window” between retirement and age 72, tools can include Roth conversions, delaying Social Security, and withdrawing from taxable accounts.
Q: What questions do you recommend Raytheon Technologies employees ask financial advisors they’re considering hiring to help them decide if they’re a good fit?
Allen: Questions to ask a potential advisor include:
Do you act as a fiduciary (in my best interest) at all times?
How are you compensated? Do you sell any products?
How much (in dollars) can I expect to pay now and in the future?
Do you require me to move my assets, or can you provide advice only without investment management?
Do you focus solely on investments, or do you also advise on other important areas like tax planning, estate, retirement, debt/cash flow management, and insurance?
What is your investment philosophy?
What professional credentials do you hold?
Get to Know Allen Mueller, Financial Advisor for Raytheon Technologies Employees:
Answers to RTX Employee Questions with Jeffrey Davis, AAMS®
Jeffrey Davis is a financial advisor based in Santa Barbara, California who specializes in offering financial planning services to Raytheon employees. Jeffrey helps his clients get the most value from their Raytheon benefits and compensation package so they can enjoy life and feel confident about their financial future.
Q: As a financial advisor with experience helping Raytheon employees save for their retirement, how do you help them make the most of their employee benefits?
Jeffrey: When working with Raytheon employees, I start by helping them understand the full scope of their benefits package—because maximizing retirement readiness begins with leveraging what’s already available. I focus on strategies that integrate the Raytheon savings plan (such as the RTX 401(k) with potential employer match), as well as supplemental benefits like the Employee Stock Purchase Plan, all within a broader financial plan.
We explore contribution limits, Roth versus traditional deferrals, and tax-efficient withdrawal strategies to enhance long-term growth potential. I also guide clients through decisions around pension options and deferred compensation, ensuring they align with their broader retirement goals and cash flow needs. Ultimately, I tailor each strategy to the individual’s career stage and life priorities, bringing clarity to complex choices and helping them confidently move toward financial independence.
Q: When you first speak with a Raytheon employee, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals?
Jeffrey: When I first meet with a Raytheon employee, my goal is to understand both their financial picture and what truly matters to them—because a great plan is built around purpose, not just numbers.
I typically start with questions like:
What areyour short-term and long-term goals—both personally and financially?
How confident do you feel about your current retirement strategy?
Are you aware of all the benefits available to you through Raytheon, and are you using them to their full advantage?
Do you have other financial priorities right now, like college savings, buying a home, or reducing taxes?
I also want to understand any life transitions on the horizon—whether it’s a career change, relocation, or family event—so we can anticipate and plan proactively.
These conversations often uncover opportunities to optimize their current benefit elections, adjust savings strategies, or build in tax-efficient planning. Ultimately, it’s about crafting a plan that’s aligned with their values, evolves with their life, and gives them peace of mind.
Q: Is there a particular benefit available to Raytheon employees you feel isn’t as well utilized or understood by employees as it should be?
Jeffrey: One particularly powerful but underutilized benefit available to Raytheon employees in 2025 is the ability to implement a backdoor Roth strategy through the RTX 401(k) Plan (RAYSIP).
Raytheon allows employees to make after-tax contributions beyond the standard pre-tax and Roth limits—up to the 2025 total contribution cap of $70,000 (or $81,250 for ages 60–63 with catch-ups). These after-tax dollars can then be converted to Roth within the plan, creating a significant opportunity for long-term, tax-free retirement growth. Despite its potential, many employees overlook this option due to its complexity or lack of awareness.
Another valuable and often overlooked benefit is the MetLife Group Legal Plan, still available in 2025. For a modest monthly payroll deduction (typically $16–$20/month), Raytheon employees can access estate planning services like wills, trusts, and powers of attorney at no additional cost. It also covers a wide range of personal legal matters—without deductibles or copays when using in-network attorneys.
Both benefits can make a meaningful difference when incorporated into a thoughtful, comprehensive financial strategy. Helping employees understand and confidently navigate these opportunities is a key part of the work I do.
Q: Beyond Raytheon employee benefits for retirement savings, are there other types of benefits offered by the company that you find valuable to discuss with your clients?
Jeffrey: Absolutely—beyond retirement savings, Raytheon offers several benefits that can significantly enhance a client’s financial well-being when integrated into a broader plan.
One standout is the Employee Stock Purchase Plan (ESPP), which allows employees to purchase RTX stock at a 15% discount through payroll deductions. This can be a powerful tool for long-term wealth accumulation, especially when paired with a disciplined diversification strategy.
Raytheon’s Employee Scholar Program is another exceptional benefit. It provides 100% reimbursement for tuition, books, and fees for approved degree programs—with no cap on the number of degrees. For clients looking to advance their careers or pivot professionally, this is a tremendous value.
The Health Savings Account (HSA), available with Raytheon’s high-deductible health plans, is also worth highlighting. Contributions are triple tax-advantaged, and Raytheon contributes to the account as well. For clients who can afford to pay current medical expenses out of pocket, the HSA becomes a stealth retirement account for future healthcare costs.
Lastly, the MetLife Group Legal Plan continues to be a cost-effective way for employees to access estate planning services like wills and trusts—services that are often overlooked but critically important.
These benefits often go underutilized simply because they’re not well understood. I help clients evaluate which ones align with their goals—whether that’s reducing taxes, funding education, or protecting their family’s future.
Q: For Raytheon employees approaching retirement age, how do you recommend they prepare to make the transition from living off their salary to relying upon other sources of income?
Jeffrey: For Raytheon employees nearing retirement, the transition from a steady paycheck to drawing income from various sources requires careful planning and coordination. I guide clients through a multi-step process that helps them feel confident and in control of this next chapter.
We start by mapping out all available income streams—401(k), pension (lump sum or annuity), Social Security, brokerage accounts, and any deferred compensation. From there, we build a tax-efficient withdrawal strategy that balances income needs with long-term sustainability.
One key opportunity is to take advantage of the ‘income valley’—the window between retirement and the start of required minimum distributions (RMDs). During this period, we often implement Roth conversions, harvest capital gains at favorable rates, or draw down taxable assets to manage future tax brackets.
We also evaluate healthcare coverage, including retiree medical benefits and Medicare timing, and ensure estate planning documents are up to date.
Ultimately, it’s about replacing the predictability of a paycheck with a well-structured income plan that aligns with their lifestyle, values, and legacy goals. I help clients make this shift with clarity and confidence—so they can focus on enjoying the freedom they’ve worked so hard to earn.
Q: For Raytheon employees who have managed their finances on their own to this point, what would you suggest they consider to help them decide if they should begin working with a financial advisor at this stage in their lives?
Jeffrey: For Raytheon employees who’ve done a great job managing their finances independently, the decision to work with a financial advisor often comes down to complexity and confidence. As they near retirement or experience major life transitions, the stakes get higher—and so does the value of having a second set of eyes.
I encourage them to consider a few key questions:
Are you confident in your retirement income strategy—including how and when to draw from your 401(k), pension, and Social Security?
Have you evaluated the tax impact of your decisions, including Roth conversions, RMDs, and capital gains?
Do you have a plan for healthcare costs, estate planning, and legacy goals?
Are you making the most of Raytheon’s more advanced benefits—like deferred compensation, the backdoor Roth strategy, or the ESPP?
Q: What are some of the unique financial planning challenges you commonly see among your clients who are Raytheon employees and how do you help them overcome these obstacles?
Jeffrey: Raytheon employees often encounter unique planning challenges that stem from the structure of their compensation, evolving retirement benefits, and the tax implications of various elections. One common issue is navigating the transition from legacy pension plans to cash balance plans following the merger with United Technologies. Many employees are unsure how to weigh lump sum versus annuity options, or how these fit into their broader retirement income strategy.
Another challenge is the underutilization—or mismanagement—of advanced savings opportunities like after-tax 401(k) contributions and in-plan Roth conversions. While Raytheon offers the ability to implement a backdoor Roth strategy, many employees either miss the conversion step or don’t understand the tax implications, which can lead to missed opportunities or unintended tax bills.
Deferred compensation planning is also a key area of concern, especially for higher-level employees. Elections must be made well in advance and are irrevocable, so aligning those decisions with future cash flow needs and tax brackets is critical.
Finally, equity compensation—such as RSUs and ESPP participation—can create concentrated stock risk and unexpected tax consequences if not managed proactively.
I help clients overcome these challenges by building integrated plans that coordinate all these moving parts. We model different scenarios, optimize tax strategies, and ensure that each decision—from pension elections to stock diversification—is aligned with their long-term goals. The goal is to bring clarity to complexity and help them make confident, informed choices.
Q: What questions do you recommend Raytheon employees ask financial advisors they’re considering hiring to help them decide if they’re a good fit?
Jeffrey: I always encourage Raytheon employees to ask prospective financial advisors questions that go beyond investment performance. The goal is to find someone who understands the nuances of Raytheon’s benefits and can provide truly personalized guidance. Here are a few key questions to consider:
Do you have experience working with Raytheon employees or are you familiar with the RTX Savings Plan, pension options, and deferred compensation?
Do you act as a fiduciary at all times—and can you explain what that means in practice?
How are you compensated? Are there any commissions or product sales involved?
Can you help me with more than just investments—like tax planning, estate strategies, and benefit elections?
What is your process for building a retirement income plan that includes my 401(k), pension, Social Security, and other assets?
How do you stay up to date on changes to Raytheon’s benefits and the broader financial landscape?
What kind of ongoing support and communication can I expect from you?
These questions help uncover whether an advisor is not only technically competent but also aligned with your values, communication style, and long-term goals. It’s about finding a partner—not just a portfolio manager.
Q: Is there anything that comes up frequently in your initial meeting with Raytheon employees that surprises you?
Jeffrey: One thing that frequently comes up—and surprises both me and the Raytheon employees I meet with—is just how underutilized and complex their benefits package can be, especially for those who’ve spent years with the company.
Many are unaware of advanced planning opportunities like after-tax 401(k) contributions and in-plan Roth conversions (a backdoor Roth strategy), or they haven’t evaluated deferred compensation elections, which require early, irrevocable decisions that can significantly impact future cash flow and taxes.
Pension decisions are another common challenge—particularly for employees navigating the transition from legacy defined benefit plans to cash balance formats after the Raytheon–UTC merger. Choosing between lump sum and annuity options often comes with uncertainty and wide-ranging financial implications.
It’s also surprising how many employees have accumulated substantial retirement savings but haven’t yet mapped out a coordinated withdrawal strategy—one that aligns income sources like 401(k), pension, and Social Security while managing taxes across retirement.
Lastly, I often discover that clients are paying into the MetLife Legal Plan but haven’t taken advantage of the included estate planning services such as wills, trusts, and powers of attorney.
These realizations can be eye-opening—and they reinforce how valuable it is to work with someone who can integrate all these moving parts into a cohesive, personalized strategy.
Q: For highly compensated Raytheon employees and executives, are there any special benefits you believe it’s important to take into consideration when preparing their financial plan?
Jeffrey: For highly compensated Raytheon employees and executives, there are several specialized benefits that warrant close attention when building a comprehensive financial plan.
One of the most impactful is the RTX Compensation Deferral Plan, which allows eligible employees to defer salary, bonuses, and other compensation beyond IRS limits. This can be a powerful tool for managing taxable income and aligning cash flow with future retirement needs. Timing and structure are critical, as elections must be made in advance and are irrevocable.
Executives may also receive Performance Share Units (PSUs), Restricted Stock Units (RSUs), and Stock Appreciation Rights (SARs) through Raytheon’s Long-Term Incentive Plans. These awards come with vesting schedules, tax implications, and concentration risk—especially when combined with 401(k) holdings and ESPP participation. I help clients evaluate when to exercise, diversify, or hold based on their broader portfolio and tax strategy.
Additionally, Raytheon offers a Lifetime Income Strategy (LIS) within the 401(k) plan, which provides guaranteed income options. While this can be attractive for some, it may limit flexibility and preclude strategies like Net Unrealized Appreciation (NUA), so it’s important to assess fit on a case-by-case basis.
Finally, executives should consider supplemental disability insurance and legal benefits that go beyond standard offerings, especially given income levels that exceed base policy caps.
These benefits can be incredibly valuable—but only when integrated thoughtfully into a broader plan that considers taxes, timing, and long-term goals.
Q: Is there a particularly memorable experience or a moment you recall with a client who worked at Raytheon when you realized they have unique opportunities and circumstances when it comes to their financial planning needs?
Jeffrey: One particularly memorable experience was working with a long-tenured Raytheon engineer who was approaching retirement and had accumulated a significant balance across multiple benefit plans—including a legacy pension, after-tax 401(k) contributions, deferred compensation, and unexercised stock options.
What stood out was how unaware he was of the tax implications tied to each of these accounts. For example, he hadn’t yet initiated in-plan Roth conversions on his after-tax 401(k) contributions, which meant he was missing out on a powerful backdoor Roth opportunity. He also hadn’t considered how his deferred compensation payouts would overlap with required minimum distributions, potentially pushing him into a much higher tax bracket.
Through our planning process, we were able to model different income scenarios, optimize the timing of his pension election, and implement a multi-year Roth conversion strategy during his lower-income retirement window. We also helped him diversify out of concentrated RTX stock positions and take advantage of the MetLife Legal Plan to update his estate documents.
That experience reinforced how uniquely complex—and potentially rewarding—Raytheon’s benefits can be when integrated thoughtfully. It also highlighted the value of proactive planning, especially for employees who’ve done a great job accumulating assets but haven’t yet mapped out how to turn them into a sustainable, tax-efficient retirement income.
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About the Author
Brian Thorp
Founder and CEO, Wealthtender
Brian and his wife live in Texas, enjoying the diversity of Houston and the vibrancy of Austin.
With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress.
