As we approach the end of 2024, it's the perfect time to take a step back and assess your financial situation. With the new year around the corner, now is the time to make sure you're on track to reach your financial goals—and maybe even give your financial plan a year-end boost. To help you close out the year on a strong financial note, here’s a checklist of important actions to consider: 1. Maximize Your...
Do you remember a time when a gallon of gas cost 63 cents? For some, it’s a nostalgic memory from 1978, while for others, it may seem like a distant dream. Fast forward to today, and rising prices are becoming a familiar concern for many. When the costs of goods and services increase, inflation often plays a role, creating challenges for savers and those on fixed incomes as their purchasing power shrinks. The good news...
As we celebrate National Financial Planning Month this October, we thought it would be beneficial to highlight six simple yet significant steps to strengthen your financial security: Harness the Power of Compound Interest Did you know that even small contributions can lead to significant wealth over time? For example, by investing just $50 a month for 40 years at a 10% annual return, you could amass around $265,000! That means your initial investment of $24,000...
Open enrollment for Medicare is just around the corner (Oct 15 – Dec 7), and now’s the perfect time to explore your options! Whether you’re a first-time enrollee or reviewing your current coverage, understanding Medicare basics is essential for choosing a plan that fits both your health needs and budget. What is Medicare and Who Can Enroll? Medicare is a national health insurance program primarily for individuals aged 65 and older, as well as younger...
As the 2024 election draws near, it's natural to feel uneasy about how the outcome might affect your finances. However, don’t let sensational headlines sway your investment decisions. Politicians may come and go, but the markets keep moving. History shows that staying invested pays off, even amid election-year jitters. Here are three reasons why keeping your investments steady is the smart move. 1. Party Affiliation Doesn’t Define Market Success Does it matter which party occupies...
Over the past few years, interest rates and market yields have risen significantly. Unfortunately, many banks and credit unions have not adjusted their checking and savings account rates to reflect these increases. We recognize the importance of keeping liquid cash for needs such as emergency funds or down payments, but you might find the returns on your current accounts disappointing. Fortunately, there are ways to earn higher interest on your cash while keeping it easily...
On July 18, 2024, the IRS issued long-awaited guidance on inherited IRAs, clarifying rules established by the SECURE Act of 2019. The key change was the implementation of the 10-year rule, which requires most non-spouse beneficiaries to withdraw the entire balance of an inherited IRA within 10 years of the original owner's death. This eliminates the previous "Stretch IRA" strategy that allowed beneficiaries to spread distributions over their lifetime. If you've recently inherited an IRA...
Investing wisely is crucial for young adults aiming to secure their financial future. Starting early can significantly amplify the power of compounding and help achieve retirement goals confidently. Consider the following example: Starting Early vs. Starting Late Let’s compare two saving strategies: "Start Early" saves $10,000/year for the first 10 years of employment and then stops, benefiting from compounding. "Start Late" begins saving after 10 years of employment, saving $10,000/year for 30 years. As the...
Recent updates under SECURE Act 2.0 have made Roth IRAs more appealing than ever, offering investors new avenues to build their retirement savings. Here’s why Roth IRAs might be the right choice for you: Tax Benefits Roth IRAs allow contributions with after-tax dollars, meaning withdrawals – including earnings – are tax-free after age 59½, provided the account has been open for at least five years. This means tax-free inheritance for those who are beneficiaries on...
“Planning for retirement is about more than just creating a basic financial plan—it’s about planning with purpose.” - Debra Taylor, CPA/PFS, JD, CDFA, “4 Pivotal Questions to Help Clients Retire With Purpose,” Horsesmouth Beyond the spreadsheets and investment portfolios lies a realm of essential considerations for your retirement journey. It's not just about securing your financial future; it's about enriching your life as you transition into retirement. Taken from the above quoted article, below is...
“Summertime jobs offer children opportunities to earn a bit of money and to gain valuable experience. Why not consider hiring your own children to work with you?” - Debra Taylor, CPA/PFS, JD, CDFA, “5 Good Reasons to Hire Your Children This Summer,” Horsesmouth As schools break for the summer, your children might be looking for ways to earn money and add to their resume with their ample free time. Have you considered the potential benefits...
Social Security provides retirees with a basic income. It was never intended to fully cover the cost of living in retirement, but it acts as a supplement to your resources and provides additional peace of mind. Social Security includes disability, dependent benefits, and survivor benefits for minor or disabled children. Our focus here will be on retirement benefits. As you are probably aware, retirement benefits may start at age 62. The table below highlights the...
