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January 2022

5 Ways a Financial Plan Can Help You Weather the Winds of Change

Over the past two years, individuals and entire communities have faced unprecedented challenges brought on by the COVID-19 pandemic, extreme weather events, natural disasters and other circumstances. Uncertainty about inflation, rising interest rates, supply chain disruptions and the recent surge in coronavirus cases continue to influence the global markets and economy. While there’s no question that change and uncertainty can be unnerving, there are steps you can take to help replace concern with confidence as you pursue your important life goals. That begins with anchoring yourself in a plan.

Below are five ways planning can help you remain on track toward accomplishing the things that are most important to you and your family at every stage of life. A financial plan can help to:

1. Prioritize your goals

Without clearly defined goals, you’re basically on a journey without a destination—any road will take you there, or nowhere at all. That’s why the first step in the planning process is to identify and prioritize your goals. What do you want to accomplish, and when?

Keep in mind, each of your goals will have its own time frame. Replacing your existing car or saving for a down payment on a home are generally short-term objectives. Goals like saving for retirement or a child’s college education may have a longer time horizon, depending on your age and circumstances. Once your goals are documented, a personalized strategy can be developed to help you move closer to them.

2. Create alignment

Think of your investment strategy as the engine driving your plan. To stay on track, it’s critical that your strategy is aligned with your goals, time frame and risk tolerance. For example, a strategy that is too aggressive as you approach retirement may not provide enough time to make up for any losses incurred as a result of market volatility. An approach that is too conservative also poses risk, such as the inability to keep pace with inflation over time. The planning process helps to ensure your exposure to market and investment risk is appropriately aligned with your goals, time frame and personal risk tolerance

3. Stress test your strategy

The planning process maps out a strategy to not only pursue each of your goals but to measure progress against them. Using sophisticated planning software, your strategy is stress tested under a wide variety of financial and economic market conditions, including some of the most extreme circumstances, to help determine the probability of accomplishing each of your goals. This not only helps to identify any areas that may require an adjustment but inspires confidence that your strategy can weather change over time.

4. Manage behavioral risks

It’s important to understand that poor or misinformed decisions can quickly derail even the best-laid plans. We saw that early in the pandemic in 2020, when fear drove many investors to engage in panic selling as the S&P 500 Index fell 34% from the peak on February 19 to the bottom on March 23.1 That not only resulted in investors realizing losses but led many to miss out on the market’s subsequent rebound in the weeks and months that followed.

Without a disciplined plan and investment strategy in place, behavioral biases, such as fear, greed or loss aversion can cause investors to make decisions that are not in their best interests. These decisions can have long-term consequences, such as extending the amount of time it may take to reach certain goals or delaying retirement. A well-constructed plan can help investors overcome these biases and remain on the path toward their long-term goals

5. Accommodate change

Keep in mind, your plan is not simply a snapshot in time. It evolves to accommodate expected and unexpected events, some of which may be outside of your control, such as a market or economic downturn. What if you decide to marry or divorce, change fields mid-career or retire earlier than planned? It’s much easier to accommodate these life changes when you have a flexible framework in place to build upon. Meeting regularly with the financial professionals you rely on for guidance is also a critical part of ensuring that your plan remains up-to-date and reflects today’s needs and tomorrow’s aspirations.

While the winds of change will continue to blow, anchoring yourself in a plan can put you in a better position to withstand any storms that may come your way. To learn more about the benefits of planning, contact the office to schedule time to talk.


This information was written by KRW Creative Concepts, a non-affiliate of the Broker/Dealer.

December 2021

4 Ways to Keep Spending in Check as Costs Rise This Holiday Season

According to the National Retail Federation, this year’s holiday spending is expected to shatter previous records despite supply chain bottlenecks1 and the steepest 12-month increase in inflation in more than 30 years.2 That’s because many Americans—who have accumulated more than $4 trillion in savings since the start of the pandemic—are ready to spend this holiday season.3

While consumers have already spent an estimated $8.9 billion on Black Friday, that fell slightly short of the $9 trillion spent in 2020. However, shoppers spent far more between November 1 and 28, than in previous years, in an attempt to get ahead of potential inventory shortages and shipping delays.4

This year also promises to be one of the most expensive holiday shopping seasons. As a result, many people are finding that their budgets aren't stretching as far as they had expected. With less inventory to meet demand, retailers aren’t offering the same steep discounts many shoppers have become accustomed to in recent years. Even with discounts, it’s estimated that shoppers will pay 9% more this year for the same goods.5

While that can make it challenging to keep holiday spending in check, there are steps you can take to help manage spending, beginning with the four tips below.

1. Create a holiday budget

A budget is a great tool to track spending; however, people often forget to include certain holiday expense categories, beyond the purchasing of gifts. These include travel, hosting gatherings, seasonal decorations, special holiday meals, and tips for service providers like your dog groomer, hair stylist, or the kid who mows your lawn. To ensure your budget captures all of your holiday expenses, begin by listing each area of spending and set a dollar limit for each.

2. Take advantage of deal-finder tools

No matter how much you plan to spend this holiday season, shopping for the best deals is always a smart move. A number of online tools, websites, and apps are available to help you find discounts and bargains on a wide range of items. Free services, such as Groupon, offer discounts on travel, activities, goods, and services. Others, like Rakuten, offer cash back on the purchases you make at thousands of stores, including many that you may already patronize. Browser extensions like Honey and Popcart can save you time and money by searching the internet for price comparisons, alerting you to price drops, and automatically applying coupons and promotional codes at checkout. If you’re planning to travel to see family and friends over the holidays, or escape to a resort for some rest and relaxation, travel comparison sites can help you save on airfare, hotel packages, rental cars, and more.

3. Pay with cash

If you’re concerned about getting carried away by the season of giving, and overspending as a result, consider paying holiday expenses with cash instead of credit cards this year. Paying with cash—such as bank debit cards or prepaid gift cards—can help curb impulse spending. If you do use credit cards, do so judiciously and make sure you’re using your holiday spending budget to track each purchase. That way, there are no “surprises” when you receive your post-holiday credit card bill.

4. Protect your packages

As more people take advantage of the ease and convenience of ecommerce for their holiday shopping, package theft—often called “porch piracy”—is also on the rise. In most cases, there is no recourse for packages that are stolen upon delivery, other than filing a police report. Fortunately, there are a number of ways to protect your purchases if you know you won’t be home to receive them. All major shippers now offer the ability to opt in to receive tracking information via text and email notifications, including the United States Postal Service. If you know you won’t be home to receive a package, consider asking a neighbor or friend to retrieve it and hold it for you, or consider shipping to an alternate address, such as your workplace. In many cases, packages shipped by United Parcel Service (UPS) can be delivered to a UPS store near you. Similarly, shipments from Amazon can be delivered to one of their secure lockers where you can retrieve your packages on your schedule.

To learn more about establishing a budget or getting a jump on adopting sound financial habits for the new year, contact the office to schedule time to talk.


This information was written by KRW Creative Concepts, a non-affiliate of the broker-dealer.

November 2021

4 Smart Year-End Tax Planning Strategies to Consider Now

One of the greatest myths about tax planning is that it’s only for the wealthy. Yet, nothing could be further from the truth. If you earn income, the goal is to keep as much of your money working for you, no matter your income level. That requires having a plan in place for how you will manage taxes on your various sources of income, such as workplace earnings and investments. That’s among many reasons why tax planning is an integral part of a comprehensive financial plan designed to help you meet multiple goals and priorities, while keeping more of what you earn.

Below are four strategies to consider to help with your tax planning before year end. Be sure to meet with your professional tax advisor before putting these or other strategies in place.

1. Maximize your retirement plan contributions

Maximizing contributions to the qualified retirement plans you are eligible to participate in—such as a 401(k), 403(b), individual retirement account (IRA), or SEP IRA—is one of the smartest ways to help reduce taxable income while building wealth. Retirement plan contributions can be made on a pre-tax (traditional) or after-tax (Roth) basis. Pre-tax contributions can reduce the amount of your taxable income by the amount of your contribution, up to the plan’s annual limit. Those age 50 and older are also eligible to make catch-up contributions.

Roth contributions are made on an after-tax basis, which means you can’t deduct contributions. However, earnings compound on a tax-deferred basis. Qualified withdrawals from a Roth are generally income tax-free, whereas withdrawals from a traditional IRA are taxed as ordinary income in retirement.

For most employer plans, December 31 is the last day you can make contributions for the current tax year. For IRAs and certain plans for self-employed business owners, you have until April 15, 2022, to make 2021 contributions

2. Consider a Roth conversion

If you expect to be in a lower tax bracket this year than in the future, you may want to think about initiating a Roth conversion. A Roth conversion takes place when you roll over assets from an existing traditional IRA or qualified employer plan into a Roth plan. Partial conversions are also permitted. The amount converted is included in your gross income and taxes are owed on the assets in the year they are converted. While there is no limit on the amount of assets you can convert in 2021, Congress is considering proposals that may seek to impose future income limits on Roth conversions, so be sure to discuss your plans with your tax advisor before taking action.

3. Don’t miss this opportunity to maximize cash contributions to charity

For taxpayers planning to itemize their deductions, the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 increased the deductible limit for cash gifts to qualified charitable organizations from 60% of adjusted gross income (AGI) to 100% of AGI. This was extended for 2021.

The CARES Act also allowed taxpayers claiming the standard deduction to deduct up to $300 of cash donations to qualified charities in 2020. This was not only extended for 2021, but the maximum deduction was increased to $600 for married couples filing jointly. Before you donate, make sure the charity you’re considering is a qualified charity that is eligible to receive tax-deductible contributions. Cash donations must be made by December 31, 2021, to qualify under these special provisions.1

4. Harvest investment losses

Last year, many investors took the opportunity to harvest investment losses, following the significant stock market drop in March 2020. However, with markets surging throughout most of 2021, fewer investors may have an opportunity to harvest losses this year. Tax-loss harvesting occurs when you sell portfolio holdings that are trading below your purchase price to lock in the tax loss. Applying losses against gains can help to lower your investment tax burden. However, you also have to apply the right types of losses against gains. Short-term losses are associated with assets held for a period of less than 12 months, while long-term losses pertain to assets sold after being owned for 12 months or more. This is important because short-term capital gains are generally taxed at a higher federal income tax rate than long-term capital gains.2

Investors also need to be cognizant of the wash-sale rule, which states that if you sell a security at a loss and then purchase a “substantially identical” security within 30 days prior to or after the sale, the loss is disallowed for income tax purposes.3 Tax-loss harvesting can be complex for investors to do on their own, which is another good reason to consider professional portfolio management.

To learn more about tax-smart investment strategies, contact the office to schedule time to talk.


This information was written by KRW Creative Concepts, a non-affiliate of the broker-dealer.

This communication is designed to provide accurate and authoritative information on the subjects covered. It is not however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.

Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty. Converting from a traditional retirement account to a Roth retirement account is a taxable event. A Roth account offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal of earnings, a Roth account must be in place for at least five tax years, and the distribution must take place after age 59½, or due to death or disability. Depending on state law, Roth accounts distributions may be subject to state taxes

For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.

October 2021

What Does Your Credit Score Say About Your Financial Health?

Your credit score, the three-digit number lenders use to help measure your credit worthiness, has the power to save—or cost you—thousands of dollars in interest over your lifetime. That’s because your score impacts how much lenders may allow you to borrow and the interest rate you will pay on those loans. For example, a low credit score can result in paying thousands more for the same car that someone with a higher score is able to finance at a lower interest rate. When it comes to mortgages, which are often financed over 30 years, paying a higher interest rate can cost borrowers tens of thousands more over the life of the loan.

That’s money you could be using to pay for other important goals, such as saving for your retirement, a child’s education, or paying down debt, which can impact your overall financial health. That’s why it’s so important to understand the factors that go into determining your score and the steps you can take now to improve or maintain a strong credit score.

How is your credit score determined

More than 30 years ago, the Fair Isaac Corporation (FICO) introduced FICO® Scores to provide an industry-wide standard for scoring creditworthiness that was fair to both lenders and consumers.1 The formula used to calculate your score takes multiple factors into account, such as your payment history, credit utilization ratio, credit history, credit mix, and more. While multiple versions of  FICO scores exist, the one most widely used by lenders and the three national credit bureaus (Experian, Equifax and TransUnion) has a base score range between 300 and 850.2 A score above 670 is generally considered good, while anything above 800 is considered excellent.3

Where can you find your score?

Many financial institutions provide customers with free access to their credit scores, which are subject to change monthly. The national credit bureaus provide access to your credit scores and your credit report, which is a record of your credit history. Typically, you're entitled to one free copy of your credit report every 12 months from each of the credit reporting companies. However, during the COVID-19 pandemic, all three credit bureaus agreed to offer free weekly credit reports online.4 To order your free credit reports, visit, the only federal government-authorized website for obtaining free credit reports.

It’s important to check your credit reports at least annually to make sure they are error-free and there have been no fraudulent attempts to open credit in your name. Each credit bureau provides instructions on its website for correcting errors or disputing entries on your reports.

How can you improve your score?

Some of the best sources of information to help strengthen your credit are the same organizations that determine and monitor your scores, including the three national credit bureaus and Each of these organizations provide free online educational content to help consumers protect and improve their credit scores. For example, Experian recommends the following four steps:5

  1. Make at least the minimum payment and make all debt payments on time. Even a single late payment can hurt your credit score, and it will stay on your credit report for up to seven years. If you think you may miss a payment, reach out to your creditors as quickly as possible to see if they can work with you or offer hardship options.
  2. Keep your credit card balances low. Your credit utilization rate is an important scoring factor that compares the current balance and credit limit of revolving accounts, such as credit cards. For example, if you have a total of $10,000 in credit available on two credit cards, and a balance of $5,000 on one, your credit utilization rate is 50%—you're using half of the total credit you have available. Those with excellent credit scores tend to have an overall utilization rate in the single digits.
  3. Open accounts that will be reported to the credit bureaus. If you only have a few credit accounts, make sure those you do open are the types of accounts that will be added to your credit report to help build your credit. These could be installment accounts, such as student, auto, home or personal loans, or revolving accounts, such as credit cards, and lines of credit. Certain accounts, such as medical payment plans, private loans or secured debit cards are typically not reported to the credit bureaus.
  4. Only apply for credit when you need it. Applying for a new line of credit, such as a credit card or loan can lead to a hard inquiry, which means that a creditor has requested to look at your credit file to determine how much risk you pose as a borrower. While the impact is often minimal, applying for many different types of loans or credit cards during a short period could lead to a larger score drop. However, most credit scoring models will treat inquiries about the same type of loan within a 30-day period, such as a mortgage, student, or auto loan, as one inquiry, because they understand that people are seeking the best possible rate.6

While a strong credit score can be an important indicator of overall financial health, it’s only one consideration when it comes to determining financial fitness. If you’re seeking ways to improve your financial health, contact the office to schedule time to talk.

This information was written by KRW Creative Concepts, a non-affiliate of the broker-dealer.


September 2021

Floods. Wildfires. Hurricanes. What’s in Your Household Emergency Kit?

September is National Emergency Preparedness month, and government and community leaders from coast to coast are encouraging Americans to take important steps to ensure they are ready for any emergency. These reminders come on the heels of massive wildfires in the Western United States, and deadly floods, property damage, and compromised infrastructure, along a 1,500-mile path from Louisiana to New England, in the wake of Hurricane Ida.

According to the National Oceanic and Atmospheric Administration, climate change is expected to worsen the frequency, intensity, and impact of extreme weather events like these.1 However, it’s important to remember that not all disasters are natural. Many are the result of human activities, such as chemical spills, gas leaks, infrastructure failures, and other events that can threaten lives and impact entire communities. That makes it critical to have a plan in place for how you and your family can prepare for and remain safe in any emergency. Begin with the following steps, which can help you plan for the unexpected and protect the people and property that are important to you.

1. Make a Plan

While it can be hard to plan ahead for every possible scenario, some are more predictable than others. When developing your family emergency plan, start with the types of risks you may be exposed to in the area where you live. For example, if you live in an area that frequently experiences tornadoes, it’s important for all family members to know where the “safe zone” in your home is located, whether that’s a basement or a first-floor closet or bathroom, away from windows. If you live in an area that is susceptible to wildfires or hurricanes, familiarize yourself with evacuation routes, which can be found on your state or local emergency management website.

Discuss your plans with friends and family, including how you will communicate before, during, and after a disaster, and talk to your kids—and everyone in your household—about what to do in case you are separated. Make sure you designate a place to meet that is accessible for all household members. Take the time to tailor your plan to your specific needs and responsibilities, keeping the following considerations in mind:

  • Different ages of members within your household
  • Responsibilities for assisting others, such as aging relatives
  • Dietary needs
  • Medical needs, including prescription drugs and equipment
  • Needs of family members with disabilities, including access, devices and equipment
  • Language, cultural, and religious considerations
  • Pets or service animals

Quick Tip: Download your free Family Emergency Communication Plan template now.

2. Build a Kit

In an emergency, there may be little or no time to gather important papers and essential supplies. Having an emergency kit ready to go is essential when disaster strikes. Keep in mind, while many important documents may be stored electronically, you may not have immediate access to the information in the event of a power outage. Some of the things you may want to include in your kit are:

  • Copies of important legal documents, such as drivers’ licenses, insurance policies, passports, estate planning documents, and medical insurance cards
  • Cash
  • Prescription and over-the-counter medications, contacts, extra pair of eyeglasses, etc.
  • First-aid kit
  • Bottled water, nonperishable snacks
  • Extra clothing and shoes for each family member
  • Battery-operated flashlight and weather radio; extra batteries
  • Chargers for smart phones and electronic devices
  • Pet food and supplies
  • Personal protective equipment (PPE), based on CDC recommendations

Experts recommend gathering enough supplies to last for several days after a disaster for everyone living in your home. Don’t forget to consider the unique needs each person or pet may have in case you have to evacuate quickly.

Quick Tip: Not sure what to include in your emergency kit? Download this handy Emergency Supply Kit Checklist.

3. Stay Informed

Staying informed during an emergency situation can mean the difference between life and death.

In addition to local news outlets, familiarize yourself with your state’s emergency management website, mobile app(s), social media sites and emergency alert systems, which provide breaking news and potential life-saving information in the event of an emergency or natural disaster. Plan to download apps and sign up for alerts on your devices well before a disaster occurs.

Quick Tip: Download the FEMA app now to receive real-time notifications, text messages, and alerts for events impacting your location.

Having adequate emergency savings on hand is another important aspect of planning for unexpected events. If you have questions about whether you will be financially prepared to weather an emergency, contact the office to schedule time to talk. 

This information was written by KRW Creative Concepts, a non-affiliate of the broker-dealer.


August 2021

How to Keep Lifestyle Creep from Derailing Your Financial Goals

Looking back on your first fulltime job, do you ever remember thinking, “If I made ’X‘ dollars more, things would be so much easier”? However, once you received your first raise, you may have been surprised at how quickly that extra money was absorbed into your regular monthly spending. You can thank lifestyle creep for that.

What is lifestyle creep?

Lifestyle creep happens when you increase your spending and expenses with each raise or bump in income. Despite making more money, you continue to live paycheck to paycheck, with little or no money set aside for the future. Interestingly, there’s no magical dollar amount or salary where lifestyle creep automatically kicks out. You are susceptible to it whether you make $30,000 or $300,000 a year.

Although challenging, breaking the endless cycle of living paycheck to paycheck is possible. Below are five practical ways to help stop lifestyle creep and begin building wealth for the future you desire.

1. Live within your means

Living within your means is the golden rule of financial well-being. That’s because it helps you to move closer to any goal faster. Living within your means requires spending less money than you’re bringing in each month.

Spending less than you make allows you to:

  • Budget money for unexpected expenses
  • Save for short-term goals, like buying a house or car
  • Set money aside for future goals, such as retirement
  • Pay down existing debt
  • Avoid racking up costly credit card debt

There is one catch: living within your means requires some discipline. That’s where a budget can help. Your budget can help you track each dollar coming into and leaving your household each month. It’s a great tool for creating accountability around your spending and savings goals. Follow this link to learn more about the latest budgeting tools and apps: Here are the best budgeting apps of August 2021.

2. Differentiate wants versus needs

Recognizing the difference between wants and needs can be challenging. Needs are your essential expenses—the things you absolutely can’t live without, such as food, housing, clothing, healthcare and transportation. Wants are the things that are important to you and help define your lifestyle but would not jeopardize your health and safety if you were forced to live without them. Your wants are discretionary expenses, such as your afternoon latte, concert tickets or a weekend getaway.

When determining your monthly budget or spending plan, make sure your essential expenses are fully covered first. Then prioritize additional spending for the things you want but could live without, if necessary. Finally, set aside money each month for savings, even if it’s just a small amount. When you do get a raise, increase this amount first. That will help you stay on track toward building the wealth you will need to support the future you want.

3. Use credit sparingly

While credit cards may allow you to buy more things now than your current budget allows, keep in mind that can come with a cost. If you consistently use credit cards to bridge the gap between income and expenses, or purchase more than you pay off each month, you'll eventually run out of available credit and possibly lower your credit score. In addition, high interest rates can make it even more difficult to pay down debt and get back to living within your means.

4. Forget about the Joneses

Resist the pressure to keep up with the spending patterns of neighbors, coworkers or friends. While the shiny new car in your neighbor’s driveway or a coworker’s recent trip to Cancun may appear to be a sign of financial success, they could just as easily be living well beyond their means. Keep in mind, material accumulation is not a dependable gauge of how well someone is doing financially. While there’s nothing wrong with the occasional splurge on something you really want—if you’re prioritizing your finances correctly—problems occur when you jeopardize your financial well-being to compete with others.

5. Stick to a plan

The best way to reverse lifestyle creep is to put a plan in place and stick to it. The financial planning process can help you prioritize goals and spending, so you can build future wealth faster. Since planning is an ongoing process, it’s easy to update and adjust your savings and spending goals as your life or circumstances outside of your control, such as the financial markets and economy, change.

There are many benefits to breaking the cycle of living paycheck to paycheck, including reducing stress and increasing overall financial well-being. If you have questions about putting a strategy in place that can help you move closer to your goals, call the office to schedule time to talk.

This information was written by KRW Creative Concepts, a non-affiliate of the broker-dealer

July 2021

Don't Let Revenge Spending Wreak Havoc on Your Budget This Summer

Live shows, concerts and sports venues are selling out within hours; cruise and hotel bookings have surged; airlines can’t keep up with the number of passengers booking flights; and restaurants can’t hire fast enough to accommodate demand. Even some national parks are turning visitors away this summer due to overcrowding.

It’s not difficult to understand what’s behind the increase in demand for travel and entertainment. After coping with coronavirus restrictions for more than a year, many people are eager to resume a broad range of activities, previously curtailed by the pandemic.

As businesses reopen, consumers are opening their wallets wide, seeking travel upgrades, luxury services, and unique experiences. By June, spending on luxury goods and services had risen 11% above pre-pandemic levels,1 and one survey found that 40% of Americans are willing to take on debt to treat themselves lavishly this summer.2

While it’s understandable that consumers are ready and willing to spend on meaningful experiences after such a challenging period, revenge spending—the desire to make up for lost time by overindulging—can wreak havoc on your budget. Fortunately, there are ways to keep spending in check while reconnecting with the people, places, and experiences you’ve missed.

1. Prioritize your spending

There’s nothing wrong with the occasional splurge. In fact, that’s one of many reasons to follow a budget. A budget provides a clear look at how much money is coming in (income) and going out (expenses) of your household each month. That allows you to assign a purpose to each dollar, including discretionary expenses for travel, entertainment, dining out, and more.

For example, if you plan to take a vacation this summer, use your budget to determine how much you can reasonably spend and set limits for yourself. If you feel the need to splurge on something that’s really important to you or your family, your budget can help you identify ways to pay yourself back by cutting expenses in the months ahead, so you don’t jeopardize longer-term goals, such as saving for retirement, a child’s education, or paying down debt.

2. Avoid racking up new debt

Americans paid off a record $108 billion in credit card debt in 2020.3 Yet, many risk racking up new debt as the economy continues to reopen. If you were among those who worked diligently to pay down debt over the past year, take time to reflect on what it feels like to owe less or to be debt free before using credit cards to make new purchases. If you have a hard time avoiding impulse spending, leave credit cards at home when shopping or meeting friends for a night out. Disable your digital payment app on your phone for the night as well. Relying on cash can be a good way to curb impulse spending.

3. Set financial boundaries

Pressure from others can result in spending more than you otherwise would. Don’t be afraid to say no to friends or family members who encourage you to attend an event or take a trip that may be too expensive for your taste or is not something you look forward to doing. If you feel peer pressure to spend in ways that are beyond your means, suggest more affordable alternatives. Remember, it’s your money. It should be spent on the people, things and experiences that give your life meaning and purpose.

4. Don't forget recent lessons learned

The pandemic is a reminder of the importance of having access to emergency savings and not overextending yourself with credit card or other personal debt. Like many people, you may have identified certain expenses you could live without. Whether you saved more, spent less, or invested more toward your goals, try to keep those positive financial habits intact.

Keep in mind, as opportunities for spending return, it can be tempting to make up for lost time. However, overspending can have serious long-term consequences for your personal and financial well-being.

If you have questions about these suggestions or other ways to stay on track toward your important goals, call the office to schedule time to talk.


This information was written by KRW Creative Concepts, a non-affiliate of the broker-dealer.

June 2021

Is College Still Worth the Cost?

After decades of skyrocketing costs, some good news regarding college costs has emerged. Institutions of higher learning reported the lowest one-year increase in average tuition and fees in 30 years. Between the 2019-20 and the 2020-21 school years, average published charges for tuition and fees for public four-year in-state colleges increased by only 1.1% while private nonprofit colleges had a minimal increase of 2.1%. This data suggests that the COVID-19 pandemic has halted rising college costs, though experts say that this effect may only be temporary.1

For academic year 2020-2021, public two-year colleges had the lowest average annual costs out of all institution types, at $12,850. For the same period, on average, public four-year in-state colleges cost $22,180 while private nonprofit four-year colleges were the most expensive at $50,770.2 Even if students qualify for financial aid, including scholarships and grants, there’s still a hefty price tag associated with the cost of higher education in the United States. As a result, most college graduates leave school with significant amounts of debt. In fact, one in four American adults—a total of 44.7 million—have a staggering $1.53 trillion in student loan debt.3

If you’re a parent or grandparent of a recent high school graduate or a rising senior, this data may have you wondering if college is still worth it. Below are five things to consider when weighing the cost of a college education.

1. The majority of jobs require a college degree

A Georgetown University study on the value of higher education notes that in the industrial economy prior to the 1980s, two-thirds of jobs required workers with only a high school education or less. Now, two-thirds of jobs require workers with at least some college. In addition, the study’s authors predict that 70% of all jobs will require some college education by 2027.4

2. College graduates typically earn more

Although a college degree can’t guarantee a high-paying job, on average, those with a bachelor’s degree earn significantly more than their peers with only a high school diploma. According to the U.S. Bureau of Labor Statistics, full-time workers without a high school diploma had median weekly earnings of $630, compared with $1,416 for those holding at least a bachelor's degree. That equates to about a $40,000 difference annually.5  

Over the course of their careers, college graduates can earn hundreds of thousands more than those who don’t attend college.

3. What you study matters

Data shows that what individuals choose to study at college affects their return on investment. Currently, the highest-paid majors are STEM (science, technology, engineering, and mathematics), health, and business. Of these, STEM and business are also the most popular majors, accounting for 46% of college graduates' chosen fields.6

4. College graduates are more likely to have employer health insurance

College graduates are far more likely than high school graduates to have employer-provided healthcare coverage, which can substantially offset healthcare costs. The College Board found that 64% of workers with healthcare had a bachelor’s degree, and 70% of workers with advanced degrees had employer-provided coverage. Among high school graduates, only 52% had coverage through employer plans.7

5. College helps to develop life skills and independence

While the financial rewards of a college degree can be significant, a college education can impact students’ lives in many positive ways that go well beyond academics. These include developing life skills that lead to independence, from paying bills and balancing a budget, to managing credit, and more. College can also be the root of many lifelong friendships, memories, and a sense of community and belonging.

If you have questions about tax-smart ways to help pay for a child or grandchild’s education costs, call the office to schedule time to talk.


This information was written by KRW Creative Concepts, a non-affiliate of the Broker/Dealer.

May 2021

4 Financial Habits Worth Keeping as the Economic Recovery Accelerates

Despite the financial challenges and disruptions brought on by the COVID-19 pandemic, data shows that Americans across all income levels made smart choices with their money over the past year. Payment delinquencies fell as consumers paid down debt,1 and personal savings increased as incomes rose—thanks in large part to government stimulus measures.2 One recent survey reports that 78% of respondents developed a new personal finance habit during the pandemic that they plan to continue, such as monitoring their finances more closely or setting up a monthly budget.3

Keeping these habits intact even as the economic recovery accelerates is important. While you can’t predict the future, sticking with sound financial practices can put you in a better position to weather any future challenges that come your way. Below are four healthy financial habits worth keeping in 2021 and beyond.

1. Stick with a budget

Many people turned to budgeting to regain a sense of control during the pandemic.3 A budget is essential for monitoring what’s coming into and going out of your household each month, so you don’t overextend yourself. Maintaining a budget also makes it easier to generate long-term savings and avoid debt.

As the world reopens, you’ll need to give some thought to how your budget may change in the months ahead. For example, will certain expenses go up if you return to your workplace or kids return to school? These may include commuting costs and expenses associated with lunches, clothing, activities or sports. What about travel and entertainment—will spending return to pre-pandemic levels or do you plan to spend less on certain discretionary expenses going forward? If you need help determining your future cash flow needs, there are dozens of online tools and mobile apps that can help. To find one that meets your needs, consider The 7 Best Budget Apps for 2021. Remember, budgeting isn’t simply about cutting expenses, it’s about making sure you’re spending your money on things you value.

2. Keep debt in check

One of the things many people valued in 2020 was debt reduction. Americans paid down a record $82.9 billion in credit card debt last year.4 In the months ahead, the economy is expected to heat up as consumers release their pent-up demand for shopping, dining, travel, and entertainment. While it may be tempting to throw caution to the wind as life returns to something resembling normal, remind yourself how it feels to be debt-free or to have a better handle on your credit before using credit cards to pay for a vacation or shopping spree. Remember, the less money that goes toward servicing debt each month, the more that’s available for you to save and invest, which can help you pursue your long-term goals faster. To learn more about managing credit and debt and how maintaining a strong credit score can help you save money, visit myFICO.

3. Continue to boost savings

Maintaining adequate cash reserves has always been important for covering unplanned expenses, such as a car repair, new roof, or medical bills, without incurring debt. During the pandemic, emergency savings took on even greater importance as many Americans faced layoffs and furloughs. Having enough money set aside to cover three to six months of living expenses can provide the confidence that you’ll be able to pay for essential expenses when unexpected events occur.

If you had to dip into savings during the pandemic, put a plan in place now to rebuild emergency reserves. Saving all or a portion of a recent economic impact payment, tax refund, or upcoming child tax credit payments that you may receive can be a great way to jumpstart savings.

4. Put investing on autopilot

As the stock market slumped last winter, investors who took the opportunity to buy while prices were low were in a better position to benefit as share prices began to rise in the spring. While this is a smart strategy, it’s seldom possible for investors to pick the best time to enter or exit the markets. However, a technique called dollar-cost averaging allows you to buy into the markets at regular intervals, which can help even out the price you pay for shares over time. You’ll purchase shares at higher prices when the market is rising and at lower prices when market values are down. If you participate in your employer’s retirement plan, you may already use this strategy to make plan contributions each pay period. Best of all, setting up regular automatic investments is one less thing you have to think about each month.

Finally, if you’ve incorporated these or other positive financial habits over the past year, spend a few minutes reflecting on how this makes you feel emotionally. Do you feel more secure about meeting your current financial obligations? Are you more confident about the future? Revisit these feelings whenever your financial health begins to feel a little off-balance to help you get back to center and remain on track toward your goals.

If you have questions or concerns about saving, budgeting, or managing family finances, call the office to schedule time to talk.

Dollar cost averaging will not guarantee a profit or protect you from loss, but may reduce your average cost per share in a fluctuating market.


This information was written by KRW Creative Concepts, a non-affiliate of the Broker/Dealer.

April 2021

4 Tips for Raising Financially Literate Kids

When it comes to parenting, families have different styles, values, and traditions. However, most parents share a common goal. They want their children to grow up to be healthy, happy, independent adults. As a parent or grandparent, teaching fiscal responsibility is one of the most important ways you can help foster that independence as well as overall well-being. And since April is National Financial Literacy month, this is a great time to ensure your children are on the right path to a confident financial future.

So, where do you begin? Fortunately, teaching kids about basic financial principles doesn’t require special training or a degree in finance. It starts with the behaviors you model every day, from the importance you place on budgeting and keeping discretionary spending in check, to what you choose to splurge on, and your values when it comes to charitable giving. To get started on your family’s journey, consider the following tips.

1. Talk about it.

While money helps your family accomplish many different goals, it can also be a source of deep emotions, conflict and anxiety. To help children develop positive attitudes about money, begin by sharing your own experiences with money. For example, explain how saving money helped you buy a car, pay for college, purchase your home, or pay for a family vacation. Talk about your values around spending and debt, and why you choose to contribute money to certain charitable organizations or causes.

Talking about money helps children of all ages learn about and embrace the important role it plays in supporting your family’s goals. As appropriate, consider including kids in family meetings about budgeting and spending to help them understand that everyone has a role to play in keeping household finances on track. Encourage them to ask questions and share their thoughts and ideas. This can help children develop greater respect for how money is earned and how it is used within your household. It also conveys valuable lessons about saving, goal setting and trade-offs.

2. Start early.

The sooner children begin to learn about the important role money plays in life, the more likely they will develop a positive and healthy relationship with it. Even very young children can master three basic principles: saving, giving and spending. To help children visualize how money can be used to accomplish these different goals, consider the “bucket” method. Set up three containers, these could be piggy banks, envelopes, or recycled food containers. When children receive money for completing chores or from grandparents, allow them to make decisions about how much they will save, give to others, and spend on themselves. Consider rewarding the behaviors you want to foster by occasionally adding a small bonus or matching contribution to that bucket.

3. Encourage negotiation.

When it comes to parenting, some things are not negotiable, such as requiring small children to hold hands while crossing the street, or older children to adhere to curfews. (Broccoli consumption, on the other hand, falls into some vague middle ground.) However, money—by its very nature—is negotiable. Teaching children how to negotiate not only helps them master basic budgeting principles, but better prepares them for the real world, where they will eventually be spending their own hard-earned money instead of yours.

An allowance can provide a great starting point for teaching important negotiation skills. Before deciding on an allowance, ask kids for their input in placing a value on different chores or tasks. This not only provides them a voice it also helps them understand the relationship between work and earnings. Keep in mind, an allowance doesn’t have to involve cash. Feel free to get creative. Many families use a point system where kids can trade points earned for a trip to the park or the ice cream shop, the ability to stay up an hour later on the weekend, or a free pass on certain chores.

4. Embrace technology.

Learning money management basics doesn’t have to be boring, thanks to a broad range of age-appropriate websites, games, tools and mobile apps available to children of all age groups. Begin by checking out the following to find the interactive resources that work best for your family.

  • The Mint offers information and activities for children of all ages to enhance their financial literacy.

  • I.P. Pocket Change Kids Site, sponsored by the U.S. Mint, offers a full menu of free educational games for kids of different ages, including Gold Rush, Math Jam, Space Supply, and more.

  • Money Instructor offers comprehensive education resources for kids, parents and teachers, including lesson plans, worksheets, and activities.

  • Piggy Bot is a free app that uses the concept of spend/save/share to teach children budgeting skills. Kids can see what they have on hand and what they need to save or earn to meet their goals.

  • gohenry is a financial literacy app and debit card platform for kids ages 6 to 18. Designed in partnership with Mastercard, it offers parental controls for each child and no worry of overdrafts, making it easy for kids to learn real-time financial literacy lessons. The first month is free. After that, the app requires a subscription fee of $3.99 per child.

If you have questions or concerns about saving, budgeting or managing family finances, call the office to schedule time to talk.

This information was written by Katie Williams, a non-affiliate of the Broker/Dealer.

March 2021

How Will You Avoid These 5 Common Retirement Planning Pitfalls?

Understanding the different steps you can take now to drive the retirement outcome you desire is an important part of planning for a confident future. However, it’s also important to understand what can throw you off course. Below are four common pitfalls to avoid along the path to saving for the retirement you envision.

1. Waiting to begin saving.

The earlier you start saving, the greater the potential benefits, thanks to the power of compounding. Compounding is the process in which investment earnings, from either capital gains or interest, are reinvested to generate additional account earnings over time. Your money has the potential to grow even faster when invested in a qualified retirement plan, such as a 401(k), 403(b) plan or individual retirement account (IRA). This is due, in part, to tax-deferred compounding, where earnings are not subject to taxes until they’re withdrawn, usually in retirement when you may be in a lower tax bracket. You may also be able to reduce your current income tax burden by contributing to a traditional 401(k), 403(b) or IRA, since those contributions are made on a pretax basis, effectively lowering the amount of your income that’s subject to taxes. But how much can you contribute annually? The maximum contribution limit for 401(k), 403(b), and most 457 plans (available for governmental and certain nongovernmental employers in the U.S.) in 2020 and 2021, is $19,500. If you’re 50 or older, you can contribute an additional $6,500 in catch-up contributions, for a total of $26,000. The limit for IRA contributions also remains unchanged at $6,000, with an additional $1,000 for catch-up contributions if you’re 50+, for a total of $7,000.

2. Setting it and forgetting it.

Saving for retirement through your employer’s plan may be one of the smartest decisions you make. That’s because most plans provide an easy, automated way save, which eliminates the need to remember to transfer money to savings each month. Many plans also offer matching contributions, which can exponentially increase the value of your retirement plan assets over time, assuming you are contributing enough each year to capture the full match. However, it can also be easy to forget to increase the amount you contribute each year, or ensure you’re receiving the full plan match, if your plan does not automate these features. Be sure to review your plan at least annually to ensure you’re taking full advantage of important features and benefits, which may include employer matching contributions, automated annual deferral increases, and the ability to choose pretax and/or Roth contributions. (Plan provisions vary by employer. Check with yours for a list of plan features and benefits available to you.)

3. Claiming Social Security too early.

When you choose to begin taking Social Security makes a big difference in the amount you will receive in retirement. Age 62 is the earliest you can claim benefits. However, if you begin taking benefits at age 62, rather than waiting until your normal retirement age (NRA)—when you’re entitled to receive your full, unreduced Social Security benefit amount—you can expect about a 29% reduction in monthly benefits (adjusted annually for inflation) for the remainder of your life. On the other hand, if you wait until age 70 to start Social Security, your benefit amount will be approximately 77% higher, than if you started at age 62. That’s because you receive delayed retirement credits for each month you wait to file for benefits beyond your normal retirement age. There is no additional benefit increase after you reach age 701. Keep in mind, with few exceptions, you can’t stop and restart Social Security benefits at a higher amount later. So, it’s really important to understand whether or not a reduced benefit will be enough to help you meet all of your goals and expenses over a 20 or 30+ year period in retirement.

4. Failing to plan for rising healthcare costs.

As retirees enjoy longer average lifespans, healthcare costs will remain a significant expense in retirement. This is important because Medicare only pays for a portion of expenses for those age 65 and older. Retirees must pay for other expenses, such as dental, vision and hearing services, and prescription drugs, either out-of-pocket or through supplemental insurance plans. Notably, Medicare does not cover long-term care services—one of the highest expenses many retirees may incur. In fact, a recent study revealed that the national median cost per year in the United States for assisted living is roughly $51,600, while home health aide services average nearly $55,000, and nursing home care averages just over $105,000 for a private room.2 This is important because, according to the U.S. Department of Health and Human Services, 70% of adults who survive to age 65 will require long-term services and support during their lifetime, with 48% receiving some paid care. That makes it critical to incorporate future health care spending into your retirement planning.3

5. Relying on work in retirement.

Whether you choose to work during your retirement years out of a sense of fulfillment or the need to supplement income sources—planning on paid work in retirement can be a risky proposition. In a recent survey, 71% of workers said that they anticipated paid work to be a significant source of income in retirement. However, only 31% percent of retirees said they actually derived a portion of their retirement income from work.4 That’s because many people are forced to stop working earlier than planned due to a medical crisis or injury, or other circumstances outside of their control, such as a layoff. Understanding how much you may need to support your lifestyle in retirement, well before you reach traditional retirement age, can help you avoid a shortfall that may compromise your lifestyle goals during this important stage of your life.

To learn about strategies that can help you avoid common pitfalls and optimize your planning, call the office to schedule time to talk.



This information was written by Katie Williams, a non-affiliate of the Broker/Dealer.

Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty.

February 2021

8 Things You Need to Know Before You File Your 2020 Tax Return

By any standard, 2020 was an unusual year, marked by rapid change and unexpected events. As a result, filing your tax return may be anything but straightforward. Below we explore eight things you need to know before filing your return—and a few things to keep in mind for your 2021 planning.

1. Don't miss the filing deadline.

There was an extension for the tax-filing deadline in 2020, but this year, so far, the deadline remains April 15. If you file after that date without having asked for an extension, you'll have to pay a late filing fee, which is 5% of the taxes you owe for each month, or part of a month, that your return is late. That penalty starts accruing the day after the tax filing deadline and can build up to a maximum of 25% of your unpaid taxes.1

2. Stimulus payments are tax free.

If you were one of the millions of Americans who received an Economic Impact Payment, those are tax-free. If you didn’t get a payment, or received less than the full amount you were eligible for, you may be able to claim the Recovery Rebate Credit based on your 2020 tax information. To do so, you must file a federal tax return.

3. Unemployment benefits are taxable.

If you lost your job last year and qualified for the extra $600 a week in unemployment benefits, you’ll need to report that income on your 2020 federal tax return (and state return, if applicable). You’ll receive a Form 1099-G, which will tell you the amount of benefits you received in 2020, and how much was withheld for taxes.2

4. The standard deduction increased.

The standard deduction typically increases each year due to inflation, and last year was no exception. For 2020, the standard deduction rose to $12,400 for individuals ($24,800 for married couples filing jointly). Taxpayers age 65 or older are eligible for an even higher standard deduction, $14,050 for individuals and $27,400 for married couples filing jointly.3 If your deductions exceed the standard deduction for your filing status, consider itemizing on your return.

5. More taxpayers can deduct charitable contributions.

Under a provision in the CARES Act, which was signed into law in March of last year, you can deduct up to $300 for cash contributions to qualified charities if you do not itemize on your 2020 return.4 Previously, charitable deductions were only available to those who itemized. It gets even better in 2021. Joint filers who do not itemize will be allowed to take an above-the-line deduction of up to $600 in cash contributions made to qualifying charities this year.5

If you itemize and made charitable contributions in 2020, you can deduct contributions up to 100% of your adjusted gross income (AGI). This provision has also been extended for tax year 2021. (Prior to the passage of the CARES Act, you could only deduct up to 60% of your AGI for charitable contributions.)4

6. Don't overlook the child tax credit.

Many families may be eligible for a child tax credit of $2,000 for each child under age 17. To claim the credit, you must determine if your child is eligible, based on seven considerations: age, relationship, support, dependent status, citizenship, length of residency and family income (individuals must make less than $200,000 a year and couples must make under $400,000). You and/or your child must qualify for all seven to claim this tax credit.6

7. The threshold for medical expenses is permanently reduced.

While the Tax Cuts and Jobs Act of 2017 reduced the income threshold for unreimbursed medical expenses to 7.5% of AGI for tax years 2019 and 2020, it was set to increase to 10% in 2021. However, new legislation signed into law in December permanently lowered the threshold to 7.5%.7

8. Need more time?

Regardless of income, taxpayers can use Free File, a service available through the IRS, to electronically request an automatic tax-filing extension. Filing this form gives you until October 15, 2021 to file a return. However, there’s a catch. If you owe taxes, you’ll need to pay the estimated amount at the time you file for an extension or face penalties.

For more information on filing your 2020 tax returns, visit or schedule time to meet with a tax professional. To learn more about managing your tax burden throughout the year with tax-smart financial and investment strategies, contact the office to schedule time to talk.







This communication is designed to provide accurate and authoritative information on the subjects covered. It is not however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.

January 2021

4 Steps for Strengthening Your Financial Safety Net in the New Year 

As many Americans learned in 2020, emergency savings can provide a much-needed lifeline during periods of crisis or uncertainty. Adequate cash reserves can be critical for helping you stay on track during turbulent times by preventing the need to dip into long-term savings or incur debt to cover unanticipated expenses. However, according to Bankrate’s January 2021 Financial Security Index, only 39% of U.S. adults say they are confident they could pay for an unexpected $1,000 expense. Among those who are not prepared:

  • 18% would put the expense on a credit card and pay it off over time, incurring interest charges
  • Another 18% could handle a surprise expense without borrowing but would have to make room in their budgets by scrimping on other items
  • 12% would borrow from family or friends
  • 8% would take a personal loan

While 44% of survey respondents expect their financial situations to improve this year, since 2014, the percentage of Americans who could tap cash reserves to cover a $1,000 emergency continues to hover between 37% and 41%.If you or someone you know is looking for ways to shore up savings or replenish cash reserves in the new year, the following steps may help.

1. Make saving a priority.

Savings should be high on your budget priority list, right after essential expenses for food, housing, clothing, transportation, and healthcare. If you’re not currently following a budget, the new year is a great time to create one. A study by the CFP Board found that having a household budget can positively affect your emotional state by reducing stress, anxiety and frustration. Among those who have a budget:2 

  • 62% feel more in control
  • 55% feel more confident
  • 52% feel more secure

2. Automate savings.

Once you determine how much you need to set aside each month, consider making savings automatic. One of the most effective ways to accomplish this is to direct a portion of your pay to a savings account before your paycheck hits your bank account. Check your employer to see if this option is available to you. If not, most banks allow you set up automatic deposits from your checking account to a savings account.

3. Keep emergency funds separate.

Ideally, you want to keep emergency savings in their own separate account, so you’re not tempted to dip into these funds to satisfy other goals, such as non-emergency home improvements or a family vacation. You also want make sure these assets are liquid and can be easily accessed when needed, using a check, debit card, or electronic transfer.

4. Look for ways to continually boost savings.

There are a number of ways to boost savings over time that don’t require a lot of pain or sacrifice. One technique is to increase monthly savings each time you receive a raise, bonus or promotion. If you receive a tax refund or economic stimulus payment, consider adding all or a portion of those funds to savings. If you pay off a credit card, car loan, or other debt, consider redirecting that “extra” money to savings, as well.

How much is enough?

Most financial professionals recommend that you set aside the three to six months' worth of living expenses for emergency cash reserves. However, the right amount for you should be based on your individual circumstances. Do you have a mortgage? Are you making car payments? What about credit card debt? Do you have dependents who rely on your income to meet their needs? In the event of an accident or illness, do you have short-term and long-term disability protection?

If you’re not sure how much you may need to pursue your short and long-term savings goals, contact the office to schedule time to talk.

P.S. If you need help with budgeting, the following articles provide information on a variety of tools and mobile apps that make it easy to create and manage your budget in real time: 11 Online Budget Tools and The 7 Best Budget Apps for 2021.