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March 2023

Why Your Refund May Be Smaller This Year and Tips for a Tax-Smart 2023

Following several years of economic stimulus programs, many taxpayers may be in for a bit of sticker shock when filing their 2022 tax returns. On average, refunds are expected to be smaller than in recent years, and some taxpayers may find they actually owe money. This is due in part to the:1

  • End of pandemic-related stimulus checks; no stimulus payments were issued in 2022
  • Elimination of the enhanced child tax credit, which reverted to its pre-pandemic level of $2,000 per child, regardless of age
  • Special above-the-line charitable deductions which were not extended into 2022
  • Increased volatility experienced last year, which resulted in certain taxable investments being subject to capital gains, despite ending the year flat or down

The good news? This year’s tax deadline is April 18, which provides taxpayers three additional days to file. The IRS has also taken steps to improve service for taxpayers in 2023. As part of the Inflation Reduction Act, the IRS has hired more than 5,000 new telephone assistors and added more in-person staff to help support taxpayers.

Keep in mind, just because traditional tax season ends in April, that doesn’t mean you no longer need to factor taxes into your financial decision-making process. Because taxes erode income and reduce the amount of money you have available to spend on the things you want in life, it makes good sense to pay attention to the impact of taxes on your income year-round. Below are steps you may want to consider to help manage your tax burden to help you keep more of what you earn throughout the year.2

Tax-smart steps you can take now

  • Adjust your withholding. Are you expecting a large refund in conjunction with your 2022 tax return? Or did you owe money because you withheld too little last year? Either way, you may need to close the gap by adjusting your withholding for 2023. Other reasons you may want to update your withholding include a significant increase or decrease in your job-related income or changes in the number of dependents in your household. For help determining if you need to adjust your withholding, visit the Tax Withholding Estimator at
  • Maximize retirement plan contributions. For 2023, contribution limits have increased for individual retirement accounts (IRAs) and employer plans, such as 401(k) and 403(b) accounts. Eligible individuals under age 50 can contribute $6,500 to an IRA. Those over 50 can contribute an extra $1,000 as a catch-up contribution for a total of $7,500. Contribution limits for 401(k) and similar employer plans increased to $22,500 for 2023, for those under 50. Participants over age 50 can contribute an additional $7,500, for a total of $30,000 this year. Whether you make traditional (pre-tax) or Roth (after-tax) contributions, earnings compound on a tax-deferred basis, allowing account values to grow faster than in a comparable, taxable account.4
  • Watch for opportunities to harvest gains on taxable investments throughout the year. Often, investors wait until year-end to think about tax-loss harvesting for their taxable, non-retirement accounts. While it doesn't eliminate your losses, tax-loss harvesting can help you manage your tax liability by using losses to offset gains. You may deduct up to $3,000 of capital losses in excess of capital gains for your federal tax return each year. Any remaining capital losses above that can be carried forward to potentially offset capital gains in subsequent years. Strict rules apply to tax-loss harvesting, including the wash sale rule, which prohibits you from claiming a loss on a security if you buy the same or a "substantially identical" security within 30 days before or after the sale. So be sure to work closely with your tax professional who can also advise you on how capital losses are treated on your state tax return.5
  • Implement a tax-smart strategy. While taxes should never drive your investment decisions, putting a tax-smart strategy in place can help you keep more of your hard-earned dollars now and in retirement. A tax-smart strategy takes a holistic view of your finances, including the purpose of each of the different types of accounts or assets you own, how much you invest for retirement and whether contributions are made on a pre-tax or after-tax basis, and how investments are diversified and managed. Tax-efficient investing also includes tax-smart techniques, such as tax-loss harvesting and regular account rebalancing, which can be hard to accomplish on your own without access to professional portfolio management resources.

To learn more about a tax-smart strategy aligned with your goals, timeline and risk tolerance, call the office to schedule time to talk.

1 “Americans may get a tax refund shock this year.” CBS News, 15 Feb. 2023, tax-refund-filing-shock-2023- irs-taxes/
2 “IRS sets January 23 as official start to 2023 tax filing season; more help available for taxpayers this year.”, irs-sets-january-23-as- official-start-to-2023-tax- filing-season-more-help- available-for-taxpayers-this- year. Accessed 7 Mar. 2023.
3 “Tax Withholding Estimator.”, individuals/tax-withholding- estimator. Accessed 6 Mar. 2023.
4 “Taxpayers should review the 401(k) and IRA limit increases for 2023.”, taxpayers-should-review-the- 401k-and-ira-limit-increases- for-2023#:~:text=The%20amount% 20individuals%20can% 20contribute,up%20from%20% 2420%2C500%20for%202022. Accessed 7 Mar. 2023.
5 “Counteracting Capital Gains With Tax-Loss Harvesting.” Cetera Investor Center,  https://www. resource-center/tax/ counteracting-capital-gains- tax-loss-harvesting. Accessed 6 Mar. 2023.


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.

Some IRA's have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney.

All investing involves risk, including the possible loss of principal.  There is no assurance that any investment strategy will be successful.

February 2023

Financial Strategies for Surviving and Thriving in Today’s Changing Job Market

Following recent announcements of large-scale layoffs among some of the nation’s largest employers in the technology, housing and financial services sectors, January’s glowing jobs report came as a surprise. While many economists and government officials viewed these layoffs as a sign that the labor market was cooling, January’s job growth report appeared to confirm the opposite. The labor market, as a whole, is running hot—at least for now. The labor market added 517,000 jobs in January 2023, about double the size of December’s gain, pushing the unemployment rate down to 3.4%, its lowest level since 1969. According to the U.S. Bureau of Labor Statistics, job growth was widespread, led by gains in leisure and hospitality, professional and business services, and health care.1 So what does this mean if you’re among the thousands of American workers caught up in a layoff, or simply looking to change jobs in the months ahead?

Whether a job change is planned or unexpected, it can be stressful and lead to unanticipated financial consequences, especially if it takes longer than expected to line up an opportunity with a new employer. That makes it important to have a strategy in place for how you and your family will continue to meet your lifestyle needs if you experience a disruption in income. Below are five things you can do now to help weather a job change in today’s evolving labor market.

1. Build adequate emergency savings.

Even if you’re starting another job within days or weeks of leaving a former employer, it can take several weeks to get set up on your new employer’s payroll system. That makes access to cash reserves critical for bridging the gap during a career transition. Remember, you will still have expenses to pay during that transition period, which may include costs associated with a rent or mortgage, utility bills, meals, transportation, cable, internet, cell phone service, and more. If you anticipate a job change, think about ways you can shore up your emergency savings now.

2. Create a transition budget.

In addition to those listed above, you may have additional expenses associated with a gap in employment. These may include costs that were previously subsidized through your former employer for healthcare, daycare or a gym membership, or unreimbursed expenses related to your job search, such as travel for out-of-town interviews. Remember, the Tax Cuts and Jobs Act of 2017 suspended the deduction for moving expenses and job search expenses for most taxpayers for tax years beginning after December 31, 2017, through January 1, 2026.2 So it’s important to revisit your budget when making a career change to ensure you’re capturing any temporary increases in spending or new expenses that your budget will need to accommodate.

3. Take advantage of a new tax law.

Short on cash? Effective January 2023, the SECURE 2.0 Act of 2022 allows for up to one penalty-free distribution per year of up to $1,000 from a qualified retirement plan for unforeseen emergency expenses, with the option to repay the distribution within three years. However, you may not take another emergency withdrawal during that three-year period unless the initial distribution has been paid back. And while the 10% early withdrawal penalty has been waived, the distribution(s) is still subject to ordinary income tax in the year it is taken.3 Qualified plans include 401(k), 403(b) and similar employer plans, or an individual retirement account (IRA) you have established on your own. Keep in mind, it’s generally recommended that you consider all other options before tapping into your retirement plan accounts, since these assets benefit from tax-deferred compounding, which may allow them to grow faster as you pursue your long-term retirement goals.

4. Decide what to do with your 401(k).

If you currently participate in an employer retirement plan, it’s important to decide what you will do with those assets once you leave. You generally have four options: 1) leave the money in your former employer’s plan if the account balance is $5,000 or more, 2) cash out, 3) move the assets to your new employer’s plan, or 4) roll all or a portion of the assets to an IRA. The plan administrator at your former employer is required to notify you of your options and can answer any questions you may have about the choices available to you. However, a word of caution—cashing out is generally not recommended as distributions are subject to both taxes and penalties if you are under age 59 ½. Even if you are 59 ½ or older, any pre-tax contributions will be taxed as ordinary income upon withdrawal, which can significantly reduce the amount of money you keep. More importantly, you want those assets to continue to grow on a tax-deferred basis to help support your retirement goals for another 30 years or more.

5. Don’t overlook taxes.

Avoiding potential pitfalls is just one reason why revisiting your tax strategy is so important whenever you experience changes in your life. Certain situations may even create opportunities. For example, if you’re unemployed for several months, that could temporarily push you into a lower income tax bracket. That could present an opportunity to roll some of your retirement plan assets into a Roth IRA, since they would be taxed at a potentially lower rate. Always speak with a tax professional before making any decisions that may impact your taxes.

Want to learn more? Let’s schedule time to talk about how a proactive strategy can help you protect your income and your lifestyle as you pursue the goals that matter to you.

1 “Employment Situation Summary.” U.S. Bureau of Labor Statistics, 3 Feb. 2023, release/empsit.nr0.htm
2 This suspension does not apply to members of the Armed Forces of the United States on active duty who move pursuant to a military order related to a permanent change of station.
3 “SECURE 2.0 Act of 2022.” Senate Finance Committee, 19 Dec. 2022. gov/imo/media/doc/Secure%202. 0_Section%20by%20Section% 20Summary%2012-19-22%20FINAL. pdf

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.

Before deciding whether to retain assets in a 401(k) or roll over to an IRA, an investor should consider various factors including, but not limited to, investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock. Please view the Investor Alerts section of the FINRA website for additional information.

January 2023

New Year, New Perspective: Don’t Let Past Financial Decisions Dictate Your Future

The beginning of a new year finds many people establishing new financial goals or recommitting to prior goals that may have fallen short, such as increasing emergency or retirement savings, or paying down debt. Whatever you resolve to accomplish this year, it’s important that you don’t allow past behaviors or decisions that have held you back to dictate your future. That’s a formula for remaining in place, not moving ahead.

Overcoming financial regrets

Below, let's look at five common financial regrets and steps you can take to avoid them and strengthen your finances.

1. Failing to set money aside for emergency savings

Putting money away for a rainy day is critical for creating a sense of financial well-being. Having cash set aside for an unplanned or emergency expense can go a long way toward reducing feelings of financial stress and anxiety and may prevent you from taking on unnecessary debt. To build emergency savings, consider setting aside the same amount each month in a bank savings account or money market fund.

Watch for new ways to save in the future. In 2024, under The SECURE 2.0 Act of 2022 (SECURE 2.0)1, if your employer offers a retirement account and you are a non-highly compensated employee, they can allow you to contribute to a Roth for emergency savings. The maximum savings amount per year will be $2,500, and you will be able to make up to four withdrawals annually. (Your employer may or may not offer a match on these emergency savings.)1

2. Waiting to begin saving for retirement

According to a recent survey, 55% of Americans say their retirement savings are not where they need to be, with nearly 35% saying they’re “significantly behind” and another 20% saying they’re “somewhat behind” their goals.2 The good news is that it’s never too late to begin saving—or to save more—for retirement. If you’re eligible to participate in your employer’s retirement plan, that can be one of the better ways to grow savings over time thanks to the combination of tax-deferred compounding and matching contributions, if offered. Even if you can’t contribute the maximum contribution amount, which is $22,500 in 2023, make sure you’re contributing enough each year to capture the full match so you’re not leaving free money on the table.

If you’re age 50 or over, take advantage of the ability to make catch-up contributions of up to $7,500 in 2023, for a total of $30,000 for the year. Beginning in 2025, catch-up contribution amounts are scheduled to increase even more to help those nearing retirement close the savings gap. SECURE 2.0 increases these limits to the greater of $10,000 or 50% more than the regular catch-up amount for individuals ages 60 through 63. The increased amounts will be indexed for inflation after 2025.

If you don’t have access to an employer plan, consider contributing to a Roth IRA or to a plan for self-employed business owners, such as a SEP or SIMPLE IRA, or an individual 401(k).

3. Not following a budget

A budget is a highly effective tool for pursuing your financial goals since it provides a clear picture of your cash flow—what’s coming into your household and what’s going out. It helps to optimize savings and spending to help you remain on track toward your goals. To get started, consider apps available through your financial institution or other service providers. Many are free and allow you to aggregate data from accounts at different providers so you can view account values in real time. Once you establish your budget, review it at least monthly and watch for any changes in spending that need to be addressed.

4. Racking up credit card debt

When used judiciously, credit cards can be a useful tool for building your credit history and maintaining a strong credit score. However, it’s all too easy for this type of debt to spiral out of control if not managed carefully. To keep debt in check, pay off balances in full each month. If that’s not possible, make sure you’re paying more than the minimum payment due each month to pay off revolving balances faster. Use your budget to find ways to cut spending to free up more money to pay down debt.

5. Not having a long-term strategy

Without a comprehensive strategy in place, it can be difficult to know if you’re on track working toward your goals. A strategy can help to align financial decision-making with your personal goals, timeframe for pursuing them, and risk tolerance. It can provide a framework for managing risk and making decisions that support your goals at each stage of your life.

Ready to take the next step? If you or someone you know would like to learn more about ways to optimize your financial strategy in the new year, contact the office to schedule time to talk.

1 “SECURE 2.0 Act of 2022.” Senate Finance Committee, 19 Dec. 2022, gov/imo/media/doc/Secure%202. 0_Section%20by%20Section% 20Summary%2012-19-22%20FINAL. pdf
2 “Survey: 55% of working Americans say they’re behind on retirement savings.”, 24 Oct. 2022, retirement/retirement-savings- survey-october-2022/.

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.

December 2022

What Are Your Retirement Plan Contribution Limits in 2023?

Maximum annual contribution amounts for qualified retirement plans including 401(k)s, 403(b)s, IRAs, SIMPLE IRAs and SEP-IRAs are indexed to inflation, which rose significantly in 2022. That led to the Internal Revenue Service (IRS) announcing a record high increase in annual contribution limits for retirement plans in 2023. The IRS also expanded the income ranges used to determine who is eligible to make a deductible contribution to a traditional IRA or contribute to a Roth IRA. Below we look at what these changes could mean as you pursue your long-term financial goals.1

How much can you contribute to your employer plan?

Participants in employer plans can contribute $2,000 more to their plans next year, when the maximum contribution amount rises from $20,500 in 2022, to $22,500 in 2023. As the table below indicates, participants over age 50 can contribute an additional $7,500 in catch up contributions in 2023, for a total of $30,000 for the year.

How much can you contribute to an IRA?

Maximum IRA contribution amounts will increase by $500 next year. At the same time, the income ranges for determining eligibility to make deductible contributions to traditional IRAs, contribute to Roth IRAs, and claim the Saver's Credit have been expanded. However, since the IRA catch‑up contribution limit for individuals aged 50 and over is not subject to an annual cost‑of‑living adjustment, it remains unchanged at $1,000. Keep in mind, if you’re eligible to make an IRA contribution for tax-year 2022, you have until April 18, 2023, to do so.

4 ways maximizing contributions now can move you closer to your goals

1.  Keep more of your income working for you. Periods of high inflation can make it hard to find extra money to set aside for long-term goals. However, keep in mind that pre-tax contributions to a traditional 401(k), 403(b) or IRA may lower the amount of your income that is subject to taxes, effectively freeing up more money to work for you instead of Uncle Sam.

2.  Harness the power of compounding. The earlier you start saving, the greater the potential benefits, thanks to the power of compounding. Compounding takes place when investment earnings from 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) or IRA, due to tax-deferred compounding. That’s because earnings generated in qualified plans are not subject to taxes until they’re withdrawn, usually in retirement when you may be in a lower tax bracket.

3.  Take advantage of matching contributions. Many employer retirement plans offer matching contributions, which can exponentially increase the value of your retirement plan assets over time. Make sure you’re contributing enough each year to capture the full match so you’re not leaving free money on the table.

4.  Automate annual deferral increases. If you’re not able to contribute the maximum to your plan now, take advantage of automated annual deferral increases to get closer to your retirement savings goals. Whether or not your plan offers this option, most plans allow you to manually increase your deferral percentage at any time. You can elect to defer up to 100% of your salary or wages each year, up to the plan’s maximum contribution limit as determined by the IRS. (Plan provisions vary by employer. Check with yours for a list of plan features and benefits available to you, including the ability to choose pretax and/or Roth contributions.)
If you have questions about these or other ways to optimize your retirement savings strategy, contact the office to schedule time to talk.

1 “Taxpayers should review the 401(k) and IRA limit increases for 2023.” IRS,  November 21, 2022. taxpayers-should-review-the- 401k-and-ira-limit-increases- for-2023#:~:text=The%20amount% 20individuals%20can% 20contribute,also%20all% 20increase%20for%202023.

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.

November 2022

Do You Know Your Debt-to-Income Ratio and Why It Matters?

What is DTI?

Your debt-to-income ratio (DTI) is used by lenders to help determine if you can make the monthly payments required to pay back a loan on time. Generally, the lower your ratio, the better. A DTI that is too high can result in lenders denying credit or reducing the amount they are willing to lend.

Maintaining a lower DTI can put you in a better position to borrow money when you need it and avoid overextending yourself by taking on more debt than you can comfortably afford. That begins with understanding how your DTI is calculated.

To calculate your DTI, add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before taxes and other deductions. For example, if you pay $1500 a month for your mortgage, $100 a month for an auto loan and $400 a month for the rest of your debts, such as student loans and credit card debt, that brings your monthly debt payments to $2,000.

($1500 + $100 + $400 = $2,000.)

If your gross monthly income is $6,000, then your debt-to-income ratio is 33%.

($2,000 = 33% of $6,000.)1

While lender requirements may differ depending on the size, purpose and type of loan, the lower your DTI, the less risky you appear to lenders. According to Experian, one of the nation’s major credit bureaus, a general rule of thumb is to keep your DTI below 43%. However, if you’re seeking to qualify for a mortgage loan, many lenders prefer ratios below 36%.2

7 ways to help lower your debt-to-income ratio

A low debt-to-income ratio can help you maintain the financial flexibility you need to pursue your goals at each stage of your life. If you’re looking for ways to lower your debt-to-income ratio and improve your overall financial health, consider the following:

  1. 1.  Reduce existing debt by paying off credit cards and paying down any other loans.
  3. 2.  If you can’t pay debt off all at once, increase the amount you pay monthly toward your debt. Extra payments can help lower your overall debt more quickly.
  5. 3.  Review your budget to see if you can save more money to put toward servicing debt. If you don't have a budget, start one.
  7. 4.  If your budget makes it hard to pay more than the minimum due each month, consider a debt consolidation loan to help reduce debt faster.
  9. 5.  Avoid taking on new debt by postponing large, nonessential purchases.
  11. 6.  Consider ways to increase income, such as asking for a raise or promotion, taking on a side job or finding a higher paying job.
  13. 7.  Recalculate your debt-to-income ratio regularly to track your progress.

  14. Remember, while you can’t control the direction of interest rates, you can control how you are using credit. If you have questions about strategies for managing debt, contact the office to schedule time to talk about your concerns.


1 “What is a debt-to-income ratio?” Consumer Protection Bureau, 8 June 2022. https://www.consumerfinance. gov/ask-cfpb/what-is-a-debt- to-income-ratio-en-1791/.
2 “Debt-to-Income Ratio.” Experian, blogs/ask-experian/credit- education/debt-to-income- ratio/. Accessed 4 Nov. 2022.

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

October 2022

5 Ways to Stay on Track in Any Market Climate

Let’s face it, life doesn’t always go as planned. Some circumstances are beyond your control, such as rising inflation, an economic downturn, or an unexpected job loss or health crisis. Without a disciplined strategy in place, these can quickly throw your plans off course. When that happens, getting back on track can be harder than expected. For example, if you have to dip into emergency savings to stay afloat between jobs, or to pay a large medical bill, it can take months or even years to build back savings. Similarly, if you panic and sell investments at the first hint of a market downturn, it could take a significant amount of time to make up the losses, especially if you wait until prices are rising again to buy back into the markets. By working together to pursue your financial goals, we can help you build wealth, manage various risks, and avoid costly mistakes along the way.

Below are five ways that together we help you remain on track toward your goals in any economic environment.

1. Guide you along the path to your goals

Serving as your financial steward or guide, we discuss your goals and desires, craft a plan to get there, and hold your feet to the fire to pursue the outcome you desire. The last part is critical because investor behavior, which is a key driver of financial outcomes, can often derail investors’ strategies. That’s because behavioral biases, such as fear, greed or loss aversion can cause people to make decisions that are not in their best interests. That can have long-term consequences, such as extending the amount of time it may take to reach certain goals or delaying retirement for several years. Providing the guidance you need may help to overcome these biases and remain on the path toward your long-term goals. In addition, with access to sophisticated software and tools, specific recommendations can support your goals and how your strategy may weather various conditions or circumstances, so you can make confident decisions about your future.

2. Educate you on financial concepts

Knowledge provides a foundation for making confident decisions that support your goals and objectives. Whether you’re just getting started on your financial journey or are preparing for life in retirement, we work together to educate you on important financial concepts, best practices and new opportunities that may be appropriate for you.

3. Advocate for your success

Think of me as a coach who not only helps you focus on the big picture but hone your financial skills over time. This may include guidance for improving budget management, organizing your finances, protecting income sources, managing debt or defining your legacy.

4. Coordinate the advice you receive

You may need help coordinating advice you receive from your accounting, tax, and legal professionals. This is an important part of a comprehensive approach to financial well-being where investment, tax, retirement and estate planning strategies are carefully coordinated and fully aligned with your goals and time frame.

5. Monitor your progress

It’s impossible to know if you’re on track toward accomplishing all of your goals unless you’re able to measure your progress. That’s why we will establish benchmarks to determine if you’re on track as you pursue the full range of short and long-term goals you have established. This proactive approach can also help to determine when or if adjustments to your strategy need to be made to keep you on course.

If you would like to learn more about how we can work together to help you remain on track toward your goals during periods of uncertainty, let’s schedule a time to talk.


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

September 2022

How Much House Can You Afford in Today’s Rising Rate Environment?

Whether you’re buying your first home, trading up or thinking about purchasing a second home or rental property, interest rates play a significant role in determining how much house you can afford. That’s because even a moderate increase in interest rates can drive mortgage rates up, which can add hundreds of dollars to monthly payments and thousands more in interest over the life of a loan.

Throughout much of this year, inflation has been a key driver behind rate increases. The average rate on a 30-year mortgage the week of August 29, 2002, was 5.84%, up from 5.63% the previous week, and 2.81% higher than the 52-week low of 3.03%.1

Understanding how much you can comfortably afford is critical for ensuring you can continue to enjoy the lifestyle you desire today and years from now. When weighing credit applications, lenders consider your debt-to-income (DTI) ratio in addition to your credit history. Many use the 28/36 rule which states that no more than 28% of gross monthly income should be spent on total housing expenses and no more than 36% on total debt service, which is defined as housing plus other debt, such as car loans and credit cards.2 However, the amount consumers may qualify to borrow—and what they can truly afford to pay each month—can vary greatly. Many borrowers experienced that during the overheated real estate market in 2020 and 2021. As demand for housing outstripped supply, limited inventory led to panic buying and bidding wars, with many buyers paying more than they originally intended. In fact, a survey of U.S. homeowners who bought homes during the past two years reported that 7 out of 10 experienced some level of buyer’s remorse, with 30% saying they spent too much money. According to the survey:3

  • 31% paid over the asking price ($65,000 was the median price paid over asking)
  • 80% made more than one offer, with 41% making five or more offers
  • 36% made an offer on a home sight unseen

If you’re in the market to buy a home, consider the four steps below to help get the biggest bang for your mortgage buck.

1. Set a realistic budget.

Monthly principal and interest payments seldom tell the full story where affordability is concerned. That’s because there are a number of considerations that don’t figure into your monthly mortgage payment, such as the cost of furnishings and appliances, or whether the home requires repairs before you can even move in. What about monthly utility bills? Will they be higher or lower than what you’re currently paying? Have you estimated costs for regular home maintenance, landscaping, house cleaning and more? Factoring the various costs of home ownership into your household budget can help you stay on track toward your financial goals while avoiding unnecessary debt, like relying on credit cards to pay for unexpected or unbudgeted expenses.

2. Shop lenders.

Comparing mortgage rates and lenders can result in significant savings, especially in a rising rate environment. Be sure to read the fine print and ask questions. While advertised rates may appear similar, each lender has its own fee schedule. When you’re ready to start gathering quotes, make sure to submit all of your lender inquiries during your “rate shopping window” to avoid a negative impact on your credit score. That’s typically a period of 14 to 45 days where the credit bureaus will treat multiple similar inquiries as one hard inquiry instead of multiple inquiries.4

3. Review your options.

Most lenders offer a variety of loan options and durations. Each type of loan will have a different impact on your budget. For example, with a fixed rate loan, your interest rate will remain the same for the duration of the loan, whether that’s 10, 15 or 30 years. Adjustable-rate mortgages generally offer lower introductory rates, but your payment may increase or decrease over time as interest rates rise or fall. Ask your lender to walk you through the pluses and minus of each of the loan options available to you, so you can make an informed decision based on what best fits your needs and budget.

4. Get preapproved.

While cash buyers have the most leverage when negotiating real estate, a cash purchase is not practical for most buyers. However, a lender prequalification letter can significantly increase your buying power in a competitive market by assuring sellers that you’re a serious buyer with the financial resources to move forward with a purchase. Generally, this document states the amount you are qualified to borrow based on the lender’s preliminary review of your finances—typically your income, debt, assets and credit history. Keep in mind, a prequalification letter is not a guarantee that your loan will be approved. Lenders reserve the right to deny a loan at any point in the application process based on new information or changes in an applicant’s income, financial circumstances, marital status, etc.

Ready to strategize on ways to finance your dream home? Call the office to schedule a time to talk.

1 ”Mortgage News – Rates Surge.” Bankrate, 7 Sept. 2014,
2 ”Debt-to-Income Ratio.” Experian,
3 ”10 Homebuyers Regrets.” TheStreet, 26 Aug, 2022,
4 ”Hard Inquiries – Credit Report” Equifax,

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

August 2022

4 Ways to Lessen the Blow of Rising Interest Rates on Your Credit Card Debt

In July, the Federal Reserve (the Fed) raised interest rates 0.75% for the second consecutive month to a target range of 2.25% - 2.50%.1 The central bank also signaled that future rate increases may be in store through the end of the year as part of its ongoing effort to curb inflation.

While rate hikes can take time to filter through the economy, one of the first places consumers feel the impact is on revolving credit card debt. That’s because credit card rates are tied to the prime rate. When the Fed raises its target rate, the prime rate goes up and variable interest rates generally follow, such as the annual percentage rates (APRs) credit card companies charge consumers for revolving debt. For example, less than a week after the Fed announced its most recent increase, more than a dozen major lenders increased their advertised APRs by the same amount, pushing the national average to 17.92% for new credit cards. However, rates can go as high as 25% or more, based on an individual’s credit rating and other factors.2

Credit card balances in the United States have also risen this year to more than $841 billion. Outstanding balances vary somewhat by age, with borrowers ages 41 to 56 having the highest average balances at $7,236, followed by baby boomers, ages 57-75, with an average balance of $6,230 as of June 30, 2022.3

When used judiciously, credit cards can be a useful tool for building your credit history and maintaining a strong credit score, which lenders use to help determine consumer creditworthiness. Your score influences your ability to qualify for credit and obtain competitive rates on mortgage, auto and other loans. Access to the best rates is important because the more you pay in interest, the less money you keep for yourself.

If you’re looking for ways to get out from under expensive credit card debt and free up more money to use toward savings and other important goals, consider the following:

1. Pay off revolving balances

Paying account balances in full each month is one of the best ways to increase your credit score over time while avoiding the high interest rates credit card companies typically charge on outstanding balances. But what if you’re not in a position to pay off a large balance in full?

Unexpected expenses, budget constraints, overspending and other circumstances can lead to higher balances than anticipated and the need to spread payments over time. However, this can become costly, especially if you’re only paying the required minimum due each month. For example, here’s how long it would take to pay off $7,000 worth of credit card debt at 16.28% interest:4

  • Minimum monthly payment: 32 yrs., 3 mos. (Total interest paid: $13,336)*
  • $150 monthly payment: 6 yrs., 3 mos. (Total interest paid: $4,162)
  • $500 monthly payment: 1 yr., 4 mos. (Total interest paid: $816)

*Minimum payments are generally 1% of the outstanding balance but may vary based on individual credit card issuer terms and conditions and/or additional penalties and fees.

2. Consider a balance transfer

Balance transfers, which can help consumers save money and pay off high credit card balances faster, involve moving debt from a credit card with a high APR to a new card with a lower interest rate and, ideally, a 0% introductory rate. A 0% introductory period provides an opportunity to pay down debt more aggressively during this temporary break from interest charges. While balance transfers may help you save money, strict rules and guidelines apply, which may include stiff penalties and fees in the event of late or missed payments or other violations of account terms and conditions. So, make sure you read the small print before initiating a balance transfer.

3. Ask for a lower rate

If you prefer to remain with your current provider for the cardholder benefits or rewards, consider asking for a lower interest rate. Before contacting the issuer, take time to review the APR and account holder terms and conditions on your current account, your credit score and payment history, and competitor offers. This information can be useful for stating your case when seeking a lower rate.

4. Consolidate debt

If you have multiple credit card balances, it may make sense to consolidate debt through a lower-interest personal loan. This can help reduce costs while streamlining debt management. To qualify for the most favorable terms and rates, your credit score will need to be in the “good” to “excellent” range.

Finally, while it may seem prudent to close accounts that you have paid off and no longer use, doing so can cause your credit score to drop. That’s because closing accounts increases your credit utilization ratio, which is the amount of revolving credit you're currently using divided by the total amount of revolving credit available to you. Instead of closing the account, consider placing the card in a secure location where you don’t have ready access to it and remove it from your digital wallet. For more information about managing your credit score, visit

To learn more about these and other financial management strategies, call the office to schedule time to talk.

2; Average credit card interest rates: Week of August 3, 2022.


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

July 2022

What's Your Personal Inflation Rate?

The annual inflation rate for the United States was 8.6% for the 12 months ended May 2022, marking the largest annual increase since December 1981.1  While there are different ways to measure inflation, the most commonly used index for households is the Consumer Price Index (CPI) tracked by the U.S. Bureau of Labor Statistics. However, the impact of inflation on your household budget could be significantly higher or lower than the CPI, based on your spending habits and other factors.

Below, you’ll learn why inflation impacts individuals and households differently and how to calculate your personal rate of inflation.

Inflation impacts everyone differently

Everyone’s spending is different, which means no two individuals or families will experience inflation in the same way. For example, if you own a home and have a fixed-rate mortgage, you may feel no impact as a result of rising housing costs. However, if you rent, or are in the process of purchasing a new home, your experience may be very different.

Variables that determine how inflation may impact your budget include:

  • Household size
  • Where you live
  • If you own or rent your home
  • Whether you work from home or commute daily
  • Childcare costs
  • Healthcare expenses
  • How often you travel or dine out, etc.

Keep in mind, inflation impacts both discretionary and non-discretionary items in your budget. Non-discretionary expenses are your essential expenses, such as food, housing, clothing, childcare, healthcare and transportation. Increases in these expenses can adversely impact your finances or your lifestyle if you’re unable to adjust discretionary spending to compensate for rising costs. Discretionary spending refers to expenses you could live without if you had to, or that you can adjust as needed. These may include dining and entertainment, leisure travel, streaming apps or club memberships. Personal priorities and circumstances will dictate which expenses you and your family consider essential.

It’s important to remember that the inflation rate measured by CPI is an average of the price increases for a certain basket of goods and services tracked. It doesn’t mean that the prices for all consumer goods and services increased by that amount over a given period of time. For example, while the inflation rate in May was 8.6%, gas prices were up 48.7% for the same period. It’s also common to see broad differences within a single category, such as food. While food prices rose roughly 12% overall, eggs rose 32.2%, milk was up almost 16% and fresh vegetables were up 6.4%. Some of the largest increases (unadjusted for seasonal changes) were in the following areas:2

  • Fuel oil:  +106.7%
  • Gasoline:  +48.7%
  • Airfares:  +37.8%
  • Natural gas:  +30.2%
  • Public transportation: +26.3%
  • Lodging (hotels/motels):  +22.2%
  • Delivery services: +16.4%
  • Used cars prices: +16.1%
  • New car prices: +12.6%
  • Electricity:  +12%
  • Food/groceries:  +11.9%
  • Dining out:  +9%
  • Rent: +5.2%

How to calculate your personal inflation rate

The formula below provides an easy way to determine the impact of inflation on your spending. First, you’ll need to capture some data on your current expenses, as well as last year’s spending. That’s easy to do if you use a budget to track expenses. If you don’t have a budget in place, gather current and prior year bank, credit card and other financial statements for this month and the same month a year ago. Using the formula below, add up your spending for the same month in 2022 and 2021. Then subtract last year’s spending from this year’s spending for the same month. Divide the difference by the amount of the 2021 monthly expense. Multiply the result by 100 to get your personal inflation rate.

For example, if you spent $5,300 in July 2022 and $5,000 in July 2021, your personal inflation rate is 6%:

($5,300 - $5,000) ÷ $5,000 = 0.06%
100 x 0.06% = 6%

Keep in mind that this formula focuses on year-over-year differences in spending, but any increase or decrease in income over the past 12 months will also affect your results by lowering or raising your rate accordingly. As you review your spending, you may notice that certain categories remain unchanged from one year to the next, such as fixed rate mortgage or car payments. Other spending may be subject to seasonal variations, such as summer vacation travel, back to school shopping or end of year holiday spending. As a result, comparing your spending over a six or twelve-month period may provide a more accurate look at how inflation is impacting your household and if opportunities exist to reduce or reprioritize spending.

Whether your personal rate of inflation is higher or lower than the national average, a budget is one of the best tools for managing your finances, so you can move closer to your financial goals in any economic environment. Need help getting started? Consider downloading one of the many budgeting apps available through the App Store or Google Play, or from your bank or credit union. Many of these tools are free, so you don’t have to worry about adding another expense to your monthly budget.

To learn more about planning for a confident financial future, call the office to schedule time to talk.

2 Ibid.

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

June 2022

How to Replace Financial Anxiety with Confidence

Researchers at the Global Financial Literacy Excellence Center at George Washington University and the FINRA Investor Education Foundation found that 60% of study participants feel anxious when thinking about their finances and 50% say they're stressed about them.1 Major financial triggers cited by participants include:

  • Lack of assets
  • Insufficient income
  • Retirement readiness
  • High debt
  • Money management challenges
  • Low financial literacy

Recent economic challenges, including inflation, rising interest rates and ongoing market volatility, have added to the stress many people are experiencing. However, there are practical ways to help cope with and overcome these obstacles. That begins with understanding the causes and symptoms of financial anxiety.

What is financial anxiety?

There’s no question that worrying about having enough money to make ends meet each month, pay for an unanticipated expense, or save for retirement can lead to tension and anxiety. Market and economic conditions can also play a role, especially if you’re concerned about fluctuations in the value of your investment portfolio during periods of increased market volatility, or whether you’ll outlive your income in retirement. Financial stress can manifest in different ways, such as obsessive saving or spending behaviors, addiction to work or emotional decision-making. These unhealthy behaviors compound stress, which can impact your physical and mental well-being, resulting in conditions such as insomnia, fatigue, muscle aches, depression and more. While it’s common to experience some level of financial anxiety during your lifetime, especially when faced with circumstances beyond your control, chronic financial stress is harmful and can adversely impact your health, relationships and even your job performance.

What can you do about it?

Have you ever thought, “If only I had a little extra money each month, all of my worries would go away”? While more money seems like the simple answer for resolving financial stress, it’s often insufficient because it doesn’t deal with the underlying cause of your anxiety. For example, if you grew up in an environment where money was scarce or your family experienced a significant loss in income or assets that impacted your lifestyle, you may harbor fears about never having enough. As a result, no matter how much you make, you’ll never feel confident about your financial circumstances until you deal with that underlying fear.

4 Steps for replacing anxiety with confidence

No matter the source of your financial anxiety, there are steps you can take now to not only help you cope with, but overcome, any challenges you face. To put yourself on a fast track toward conquering the financial stressors in your life, consider the following steps:

  1. Contribute to a retirement plan. One of the most effective ways to move closer to a confident financial future can be participating in a qualified retirement plan such as a 401(k), which offers certain tax benefits, including tax-deferred compounding. Tax-deferred compounding can allow account earnings to grow faster, since you’re not taxed on those earnings until you begin taking distributions, usually at age 59½ or older. If you‘re not eligible to participate in an employer plan, consider a traditional or Roth IRA, or a SIMPLE IRA for self-employed individuals, to enjoy the benefits of tax-deferred compounding. Keep in mind, tax benefits will vary based on the type of retirement plan you choose, so be sure to do your homework first.

  2. Shore up emergency savings. Money set aside for an emergency can help provide a buffer against future financial shocks. Even a small amount set aside each month can add up over time, making you feel increasingly confident about managing an unanticipated expense. Make sure savings are set aside in a liquid account, such as a bank saving account or a money market fund, so your money is accessible when you need it.

  3. Put a strategy in place. A financial strategy can help you feel more in control of your finances because it reflects your personal goals, risk tolerance and timeframe for working towards your goals. At the center of your strategy is a personalized strategy, aligned with your objectives. That makes it easy to track your progress over time. Your strategy can also provide the flexibility to accommodate change, as the financial markets and your circumstances evolve.

  4. Work with a financial professional. An independent financial professional can not only help you put a comprehensive strategy in place but will provide ongoing financial education, coaching and guidance, proactive monitoring of your financial strategy, and alerts of new opportunities that may be appropriate for you. Your financial professional has access to sophisticated planning tools that can help answer many of the questions and concerns that often trigger financial anxiety, such as, “are you saving enough to accomplish all of your lifestyle goals in retirement?” That can go a long way toward replacing anxiety with confidence, which is good for your physical, emotional and financial well-being.

To learn more about preparing for a confident financial future, call the office to schedule time to talk.


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

Some IRA's have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney.

Distributions from traditional IRA's and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 ½, may be subject to an additional 10% IRS tax penalty

MAy 2022

6 Steps to Make Finances a Family Affair

The Consumer Price Index, which tracks changes in the prices of certain goods and services and is often used to measure inflation, showed a slight drop in April. That’s notable because it marked the first decrease in the inflation rate, on an annualized basis, in six months. Nonetheless, the U.S. Bureau of Labor Statistics reports that prices continue to climb for just about everything your family purchases on a regular basis, including food, gas, clothing, utilities, transportation, dining and entertainment.1 Whether you’re seeking ways to stretch your current budget, or save for retirement, a new house, or a vacation, you need a plan—and everyone in your household who’s affected should be involved. That includes kids and grandparents if you live in a multigenerational household. So, how do you get started?

1. Begin with your values

Whether you’re single, married or somewhere in between, think about what matters most to you and your family when it comes to your money. Are you comfortable with your current saving and spending habits? Where can you cut back on spending to help pay for current expenses or save more for longer-term goals? If you’re saving for a new home or car, how soon do you hope to reach that goal? What are your goals when it comes to retirement? Is charitable giving important to you? How do you feel about debt?

If you have a spouse or partner, it’s important that you present a united front before sharing financial goals with other family members. Often, partners have different attitudes about money, based on upbringing, cultural differences or competing financial goals. Maybe you grew up in a household where it was taboo to talk about money, or one where discussions frequently centered around money. Either way, recognizing these differences and finding common ground is the first step toward getting everyone on the same page.

2. Make a plan

If you don’t already have a financial strategy that clearly outlines your goals and priorities, schedule time to meet with a financial professional to put one in place. A strategy will not only help you remain on track as you pursue competing objectives, but it will hold you accountable to your goals. Keep in mind, the more specific your goals, the better your chances of achieving them. For example, a goal to “save more” is too subjective and won’t hold you accountable. Committing to save $200 each month in an emergency fund is a more attainable objective, due to its clarity.

3. Establish a budget

A budget is an important part of any financial strategy since it provides a clear picture of your cash flow—what’s coming into your household versus what’s going out. It helps to optimize savings and spending to remain on track toward your goals. Choose one of the dozens of free apps available online or through a financial institution you may already work with to help take the complexity out of budgeting. Many allow you to aggregate data from accounts at different financial institutions, providing real-time account values. To stay on track, review your budget at least once a month and keep an eye out for any spending trends that need to be addressed or reined in.

4. Take the conversation to the next level
Once you have a strategy and a budget you agree on, schedule time to share this information with other members of your household at a time when everyone’s relaxed and not rushing to make a meal, get out the door, finish homework or complete chores. To gain buy-in from family members, ask for ideas on ways to save money or work together to pursue specific financial goals. This reinforces the concept that this is a family effort and their opinions matter.

5. Assign responsibilities

It’s important to delegate tasks to different family members, based on their age, capabilities and interests. Think about ways everyone can chip in. Considering turning family pizza night into a competition for the best home-made recipe once or twice a month, in place of carry-out or delivery. Do you have space for a vegetable garden? Even small children can help plant and maintain a garden, which can save money on store-bought produce. Think about whether there are tasks or chores that you currently pay for, such as household cleaning, dog walking or landscaping. How much could you save if everyone pitched in to share these responsibilities instead.

6. Reward contributions
There are many ways to reward family members for their contributions, such as a special night out for you and your partner when you hit an important goal, or a trip to a favorite park for young children who complete all their chores. Grocery shopping can be a great way to help young children learn important lessons about the value of money while choosing their own reward. Begin by assigning each child a snack budget and help them shop for their favorites. If they come in under budget, give them a say in how to use the savings. Will they donate the extra money to a community food bank, roll it over to next week’s


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

April 2022

5 Easy Steps to Get Your Financial Resolutions Back on Track

Did you know that 80% of News Year’s resolutions fail by mid-February?1 Interestingly, most people do not fall short of their goals due to a lack of motivation or because their goals are too ambitious. Instead, it’s because they don’t have a plan for how to get back on track if they veer off course.

Whether you’re seeking to rein in spending, pay down debt, increase retirement savings or pursue other important financial objectives this year, consider the five steps below to help ensure you have a plan that’s actionable and attainable. That can go a long way toward staying the course as you pursue the financial and lifestyle goals that are most important to you and your family.

1. Be specific

Like most things in life, the more specific your goals, the better your chances of achieving them. For example, a goal to “save more” may be too subjective to hold you accountable and keep you motivated. On the other hand, committing to set aside 5% of your income in an emergency fund may be a more attainable objective, due to its clarity.

2. Understand why

For a goal to be meaningful and worth pursuing, it must be relevant to you. That begins with understanding the “why” behind each of your goals. Why do you want to increase savings? Are you saving for the down payment on a home, to boost emergency savings, increase retirement savings, or other reasons? When goals are relevant to your lifestyle wants, they take on greater meaning and urgency. As you think about your goals, envision achieving your desired outcomes. For example, what will it feel like when you purchase your first home or move your family to a larger home? Focusing on the positive outcomes that a particular behavior, such as saving, can have on your life and your financial circumstances can make it easier to stay on track toward your goals.

3. Keep it real

The more realistic your goals, the more the confident you will feel about accomplishing them. Often, that requires breaking large goals into smaller, more manageable steps so you’re not setting yourself up for failure. For example, if you’ve put off saving for retirement and are eligible to participate in your employer’s retirement plan, take the opportunity to join now, even if you can only contribute a small amount each pay period. As soon as you’re able, increase your contributions to ensure you’re benefiting from any employer matching contributions. Consider increasing your plan contributions annually, until you’re making the maximum allowable contribution. If you’re age 50 or over, you can also make annual catch-up contributions, which are beneficial as you approach retirement. Being able to check off small goals along the path to accomplishing a larger goal can be satisfying and motivating.

4. Set deadlines

Once you’ve established goals that are specific, relevant and realistic, you need to establish a time frame for achieving each of your goals. Again, keeping it real is important here. Doing something “as soon as possible” is too vague and won’t hold you accountable. You also don’t want to set deadlines that are too ambitious that could set you up for failure. Maintaining a budget, which tracks your monthly income and spending, is a great tool for determining reasonable deadlines and time frames associated with each of your goals, from saving more, to paying down debt and making a plan for how you will carry out your legacy.

5. Measure progress

Your budget can also help you track progress toward your goals, which is critical for staying on course. Tracking progress begins with ensuring each goal is measurable. A goal to “save more for retirement” is hard to quantify and is not time sensitive, making it difficult to measure in any meaningful way. Whereas “increasing plan contributions by 2% annually to capture your plan’s full match within three years” is specific, actionable, timely and measurable.

Finally, take the time to celebrate the small milestones reached along the way. They pave the way to the big wins in life and will inspire you to continually set and pursue new goals with confidence.

To learn more about putting a plan in place for your future, call the office to schedule time to talk.


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


March 2022

Why You Don’t Want to Wait to File Your Taxes This Year

The Internal Revenue Service (IRS) expects this tax season to be another challenging one for the agency and taxpayers alike. The agency finds itself struggling with a growing workload due to budget cuts, a growing backlog of unprocessed returns and federal stimulus measures that were introduced last year. This comes on the heels of what the National Taxpayer Advocate’s 2021 Annual Report called “the most challenging year ever for taxpayers.” The report acknowledged that “there is no way to sugarcoat the year 2021 in tax administration: From the perspective of tens of millions of taxpayers, it was horrendous.”

During the 2021 tax filing season, the IRS answered only one out of every nine calls, and processing delays left the IRS with more than 10 million unprocessed returns as of January 2022, a number that continues to grow.1 While the IRS plans to hire 10,000 employees to address the backlog and assist with processing new returns, it will take time to onboard and train new employees.2 As a result, many taxpayers can expect longer processing times and delays in receiving refunds in the weeks and months ahead.

Despite having a few extra days to file returns this year—they’re not due until April 18, 2022—taxpayers may not want to wait until the last minute. The information below addresses factors that can delay the processing of your return, steps you can take now to head off tax filing headaches, and where to get help if you need it, including how to track a refund.

Who should expect delays?

The IRS says taxpayers who mail a paper return this year or those who responded to an IRS inquiry about their 2020 return should expect delays. In addition, the IRS says that certain tax returns simply take longer to process than others, including when a return:

  • Is incomplete
  • Requires a correction to the Recovery Rebate Credit amount
  • Includes a claim filed for an Earned Income Tax Credit or an Additional Child Tax Credit using 2019 income
  • Is affected by identity theft or fraud
  • Needs further review

In addition, the IRS says it’s taking more than 21 days (and up to 90 to 120 days) to issue refunds for tax returns with the Recovery Rebate Credit, Earned Income Tax Credit and Additional Child Tax Credit.3

How to avoid filing headaches

In addition to filing your return as early as possible, the IRS recommends the following steps for taxpayers seeking to avoid processing delays or to speed up an anticipated refund:

  • Gather your records in advance, including W-2s and 1099s. Don’t forget to save a copy for your files.
  • Get the right forms. Tax forms are available at under “Forms and Publications.”
  • File electronically versus mailing returns.
  • Provide the IRS with your bank routing information so any refund can be directly deposited to your account.

Check your numbers. Mistakes are a leading cause of delays in processing taxpayer returns.

Where to get help

Looking for assistance or the status of your refund? Tax forms, instructions and other resources to help taxpayers prepare and file their returns are available at Taxpayers can also download the IRS2Go mobile app on Google Play, the Apple Store or Amazon. Available in English and Spanish, the free mobile app makes it easy to check your refund status, make a payment, find free tax preparation assistance, or sign up for helpful tax tips. If the mobile app’s not your thing, you can also track your refund status using the online search tool Where's My Refund? at According to IRS, you should only call them with questions if it's been 21 days or more since you e-filed your return or if Where's My Refund? directs you to contact them.

Keep in mind, if you are expecting a refund this year, it may be time to revisit your withholding. Ideally, you want to make sure that your money is available to you throughout the year, not parked with the IRS. While many people choose to use a tax refund to pay down debt or increase savings, having that money working for you throughout the year may help head off debt in the first place by bolstering emergency or other savings. Be sure to talk to a professional tax advisor if you have questions about your taxes or withholding.

To learn how a tax-efficient investment strategy can help you plan for a confident future, call the office to schedule time to talk.



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

February 2022

Changing Jobs? Don’t Forget About Your 401(k)!

Americans left their jobs at an alarming rate last year. According to the U.S. Bureau of Labor Statistics, a total of 68.9 million workers resigned, were laid off or discharged in 2021,1 including more than 47 million who left voluntarily in what came to be known as the Great Resignation.2 The good news is that the majority of those who left a job remained in the workforce. In fact, 75.3 million workers were hired last year for a net employment gain of 6.4 million in what some economists are calling the “Great Upgrade.” While many workers left the labor market to care for children or elderly relatives during the pandemic, millions left their former jobs for better pay, benefits, working conditions and job quality.3 However, it appears that the “Big Quit” may not be over yet. According to a recent survey of American workers, roughly one quarter of respondents say they intend to change jobs in 2022, possibly setting the stage for yet another year of turmoil in the labor market.4

If you’re among the millions of Americans who recently changed jobs or are thinking about doing so in the months ahead, it’s important to understand how a move could impact your retirement plan benefits. For example, if you leave a job before your 401(k) is fully vested, you may forfeit the unvested portion of your account. Vesting refers to the amount of employer matching contributions that employees are entitled to keep, based on the plan’s vesting schedule. Eventually, you’ll also need to decide what to do with your old 401(k). Generally, you can choose one of four options:

1. Leave your retirement account at a former employer

If you’re happy with the plan’s investment options and fees, you can leave your retirement account where it is and continue to benefit from tax-deferred earnings growth as long as the account balance remains at or above that employer’s required minimum balance—usually $5,000. You will be limited to the plan’s investment options and will not be eligible to take a loan against your old 401(k) plan. If you have an outstanding 401(k) loan, your old employer may require the loan to be repaid within a stated time period after you terminate your employment. If you fail to pay back a 401(k) loan, it's considered to be a distribution and may be subject to taxes and penalties. A potential downside to leaving assets at a former employer is that the account may fall off your radar. You may forget to check on it regularly or take steps to ensure your investment allocation continues to align with your needs, risk tolerance or changing priorities. Your allocation refers to how account assets are invested across individual investments and asset classes, such as stocks, bonds and cash.

2. Roll the account assets into your new employer’s plan

If your new employer offers a plan and accepts rollovers, you can roll the account assets from your old plan directly into your new employer’s plan. This option enables you to consolidate your 401(k) assets in a single account and continue to enjoy the benefits of tax-deferred growth as you build your retirement savings. However, you will be limited to the investment choices offered by the plan and subject to the new plan’s fee schedule and provisions, including those governing loans and any matching contributions. A financial professional can help you make an informed decision by providing a side-by-side comparison of the investments and fees associated with both plans. Another benefit of keeping assets in a 401(k) at a new or former employer is that retirement accounts set up under the Employee Retirement Income Security Act (ERISA) of 1974 are generally protected from seizure by creditors.5

3. Roll account assets into a traditional IRA

Another option is to roll account assets into a new or existing traditional IRA through a trustee-to-trustee transfer or “IRA rollover.” Your account assets will continue to benefit from tax-deferred earnings growth, and you can make contributions to your IRA, subject to the annual contribution limits ($6,000 for 2022 and an additional $1,000 in catch-up contributions, if you are age 50 or over). However, you may not be able to deduct all of your traditional IRA contributions if you or your spouse participates in another retirement plan at work.6 A traditional IRA may also offer certain investment choices that are not available in your former employer’s plan or in your new 401(k) plan. Keep in mind, IRAs do not have a loan feature and do not provide the same level of creditor protection as 401(k)s.

4. Take a cash distribution

Due to the significant penalties associated with early withdrawals from qualified retirement plans, it can be costly to take a cash distribution if you are under age 59 ½. That’s because the Internal Revenue Service considers it an early distribution, meaning you could owe the 10% early withdrawal penalty in addition to any federal, state and local taxes owed, which can add up fast. Another significant cost associated with cash distributions at any age is opportunity cost. For example, if you took $10,000 out of your 401(k) instead of rolling it over into an account earning 8% annually on a tax-deferred basis, your retirement fund could end up more than $100,000 short after 30 years.7 That could have an impact on your retirement timeline, resulting in retiring later than originally planned or falling short of your retirement income goals. Keep in mind, if you take a cash distribution and then decide to roll it over into another retirement plan, you only have 60 days from the date you received the distribution to complete the rollover before owing taxes and penalties.

The information above is not a complete list of the rules, restrictions and penalties associated with each of these choices. It’s important to discuss all of your options with your plan provider, as well as your tax and financial professionals to determine the right course of action for you. Remember, the choices you make today can impact your finances for decades to come.

To learn more about planning for a confident retirement, call the office to schedule time to talk.



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