Every year marks a fresh start—a valuable opportunity to pause, reflect on past experiences, and set your sights on the future. As the times are always “a changing,” your approach to retirement planning should continue to evolve as well. Planning ahead and coordinating a tax-efficient account withdrawal strategy in retirement is important. The new catch-up rule under the Secure 2.0 Act could help with this now.
As the global economy implements artificial intelligence (AI) in the workplace, concerns arise regarding the potential for widespread job losses as a result. However, if true, will these human job losses be transitory or permanent? Or will the AI revolution give way to long-term human job growth given anticipated efficiency gains?
For many clients, especially those in their 50s that have college-aged children, the focus of their savings plan becomes a little less complicated once college costs are paid. For those that had been socking away funds each month for tuition, they may wonder how to redeploy those future savings dollars. You could ramp up retirements savings. However, you may already be maxing out 401(k) contributions at work, including the “catch-up” amount. As I’ve written about previously, one strategy to consider is combining different types of savings vehicles to meet those needs.
For many, achieving millionaire status has been a widely accepted goal that once achieved, you can breathe a little more comfortably. Unfortunately, the reality is that having $1 million saved does not guarantee a feeling of security. My theories for this are trifold based on discussions with clients, family, and friends. First, as humans, we are programmed to detect a threat. That natural state is tested daily (think driving on the beltway) and exploited daily (think pharmaceutical commercials for instance – do I have dry skin or psoriasis???).
Managing your debt may seem like a daunting task but the benefits of careful planning are invaluable. Debt is a major concern for many Americans and for good reason. If left unmanaged, many growing liabilities can eat up your current income, reduce your current and future savings, and even prevent you from buying a car or house. If you could create a plan to pay down your debt and untangle yourself from the institutions to which you are beholden, wouldn’t you? It is not always easy to “find” more cash to throw at liabilities.
Nowadays, the 529 plan is ubiquitous among those families with children planning on or going to college. The advantages are obvious – tax-deferred growth of savings, potential tax-free distributions, and often a state tax deduction for the investor. That much is simple and straightforward; but as they say, “the devil is in the details,” especially when the details continue to evolve. Some questions we often get are: How much can I contribute? How should I invest my contributions? What if my child does not attend college? What if we move from one state to another?
In today's dynamic financial landscape, individuals seek innovative and effective ways to protect their assets while maximizing financial benefits for themselves and their family. One such strategy that has gained popularity in recent years is the Spousal Lifetime Access Trust (SLAT). SLATs provide a unique opportunity for married couples to protect their wealth, reduce estate taxes, and maintain control over their assets, all while ensuring financial security for their spouses.
Artificial Intelligence," or simply "AI" is a catchphrase these days. The concept of having a computer perform tasks using human-like intelligence and discernment makes it feel like the next chapter in a sci-fi novel is here.
It is an age-old question — How to budget money? And it is one that I wish I knew the answer to back when I first started earning an income. I would spend many late nights staring at the ceiling wondering where my income was going and why I struggled to afford some of the basic necessities in life. Once I learned how to use a budget as a useful tool, I gained control over my finances and sleep came easy.
The next step in our FP101 series considers how to manage your cash flow. In other words, how and why to create a budget.
Going through a divorce during COVID was not easy. There was a lot to disentangle, especially finances, after being married so many years. Like many people, my number one concern was having a positive cash flow, not only after the divorce but 5, 10 or 20 years in the future. Would I have enough to live on? Do I want the house and, if not, where will I live and what will it cost? Can I maintain my lifestyle? So many questions and at first – so few answers.
We continue our Financial Planning 101 series with the balance sheet, by addressing what to do with any excess cash.
For many folks, the recent turmoil in the regional banking sector has added a fresh new layer of anxiety about their finances. The media has not helped matters either, calling it the 'greatest banking crisis since the financial crisis of 2008.' To be fair, it is the only banking crisis since the financial crisis. Nevertheless, at West Financial, we have heard from clients who question whether their investments are safe, or if they should be concerned.