News & Insights

In this series of articles, we will be introducing financial planning concepts for participants to consider, related both to personal finances and participation in a retirement plan. This first discussion is about account consolidation, a basic recommendation in many of our plans.

Pre-tax retirement accounts are great while you are contributing, but the tax bite can be quite a shock when it’s time to take distributions in retirement. There is one way, however, to avoid paying tax on certain pre-tax IRA distributions. The secret is to make qualifying IRA distributions directly to charity!

The increase of required minimum distribution (RMD) age from 72 to 73 this year, and to 75 in ten years, has the potential of creating some pretty impressive tax implications for those with larger retirement plan balances. While it is all well and good to put off taking distributions until you absolutely have to, you should be aware of how that decision impacts not only your own tax situation, but also the tax situation of your beneficiaries.

At the beginning of 2023, I decided to really look at how I spent my money in 2022, according to my primary credit card. It was an eye opener, especially since I didn’t see myself as someone who eats out much, but dining out was one of my top spending categories. I guess all of those impromptu trips to get a latte and pastry really add up! That got me thinking about the days when paying more than $10 for a fancy coffee and croissant was simply not an option.

We are proud to announce that West Financial Services is celebrating 40 years in business! During this time, we have developed many enduring relationships with you, our clients. It has been a privilege to work with you over these 40 years to help you meet your individual goals.

During the depths of the pandemic, work from home businesses were, undoubtedly, huge beneficiaries of consumer demand for their services and products. First-order thinking was rewarded during this period, as investments into these stocks appreciated handsomely. While we experienced some uprooting of our lives and the impact of rapid change, West Financial was also brainstorming ways to intelligently invest in long-term COVID-winners.

There is much talk today that we may be headed for another recession. Our latest management letter, “Fishing for Confidence at Jackson Hole” includes a discussion of how the Federal Reserve, in an attempt to tamp down inflation, may create some unwanted economic side effects. Namely, higher interest rates, slower growth, and softer labor market conditions. The media is constantly bombarding us with this news.

This has been a difficult year for stock and bond investors. After several years of above average performance, the broad based market index returns have been negative this year, reducing portfolio values relative to where they started the year.

In our first article (see Understanding Your Credit Score - Part I), we discussed credit reporting and what activities impact your credit score. We pick up from there with more information on how to potentially improve your credit score, the importance of reviewing your credit report, and how (and why) to freeze your credit.

As summer winds down and back to school ads ramp up, things are a little different at our house. Our daughter is off to college. Once she made her school choice official, her gleeful plans for dorm décor and collegiate life began, while I agonized over other matters. Was there enough in the 529 plan? How do we go from contribution to distribution mode?