As the end of the year approaches, there is no better time to analyze your finances to ensure you have maximized your accounts for the 2023 year. This may seem daunting to most, as it can be challenging to know where to start. This article offers some important questions you should ask yourself to get the most from your accounts and provides steps to take based on those answers. “Do you have unrealized investment losses in your taxable accounts?” If the answer to that is yes, it could be beneficial to realize those losses to offset any gains. There is also a rule that allows you to offset up to $3,000 against your ordinary income per year, with the ability to roll more over to the following year. Although most people would be concerned with losses in their account, realized losses can actually be a good thing by providing a tax benefit. “Are you subject to RMDs?” There are many different stipulations around who is subject to Required Minimum Distributions, or RMDs. It would be best to ask your advisor if you are subject to RMDs and what the best course of action is to withdraw them. “Do you expect your income to change in the near future?” Many options exist to minimize taxes based on whether your income increases or decreases. For example, if your income increases, you may become ineligible for Roth IRA contributions and need to begin contributing through a Backdoor Roth. Minimizing your tax liabilities now would be wise if your income is expected to decrease. On top of this, it would be important to reanalyze your Baby Step 4 course of action to see what the new 15% of your income would be and determine the best way to save for that new number. “Are you on the threshold of a tax bracket?” If so, you could implement strategies to defer income or accelerate deductions to stay in the lower bracket. You could also utilize capital gains or losses to optimize your tax bracket. There are also other options to reduce taxes, including tax credits offered for different situations. “Has there been a significant change that has allowed you to save more?” If this is the case, looking at your overall situation would be wise to optimize where that money could go. For example, if you have at least three months of expenses saved for your emergency fund, it could benefit you to contribute to that to add more of a cushion to your emergency fund. However, if you are in debt, you will want to consider adding these additional dollars saved to pay off your debt items faster. Or, you may want to consider creating a sinking fund (or multiple) for various projects or goals you plan to achieve in the near future. “Do you want to start saving for your children?” There are many different options to save for your children. The best option for you depends on the intended use for the savings and your situation. Some circumstances may dictate that a UTMA is the best option, while some may call for a 529 or ESA. Since everyone’s situation is unique, there is no “one size fits all” action for these questions. This is why it would be best to meet with your financial advisor if any of these apply to you. Even if they don’t, meeting with a Financial Advisor to ensure you are on the right track to start the New Year is always a good idea. If you do not have an advisor, one of our Financial Advisors would happily meet with you to discuss your situation.

The IRS recently announced the changes to the retirement contribution limits for 2024 for the various retirement account types. To make it simple, I’ve included a table of the limits below, including what you would have to contribute bi-weekly, bi-monthly, or monthly to hit the maximum limits if that’s a goal you/your advisor wants to try to achieve. Most clients like to contribute to these accounts periodically. However, some clients may choose to max out their Roth/Traditional IRAs with one-time contributions. These contributions can be from bonus money received around the end of 2023 / beginning of 2024, brokerage account funds, an inheritance, or other cash inflow. As a reminder, you have until the tax filing deadline (April 15, 2024, for the 2023 tax filing year) to contribute to a Traditional and Roth IRA. For employer-sponsored retirement plans, most deadlines are at the end of the calendar year. This means you’re limited to making contributions that go through payroll, and generally, the last pay of the year is based on the date you’re paid, not the dates the work was completed. As part of the Secure Act 2.0 that was passed at the end of 2022, there was a provision that was going to force those 50 and older with higher incomes to make catch-up contributions to Roth 401(k), 403(b), etc. accounts. That was initially scheduled to take effect in 2024. The IRS announced on August 25, 2023, that this rule will have an “administrative transition period” that will delay this from taking place until 2026. There are income limits based on your Modified Adjusted Gross Income (MAGI) for making contributions to Roth and Traditional IRAs, so you should consult your accountant or schedule a consultation with Kage Rush to discuss whether you are close to or over these ranges. Every client situation is different, so you should discuss your cash flow needs with your Whitaker-Myers advisor for retirement goals and other non-financial / financial goals. This should also include a conversation about your sinking funds for a car, home improvement, etc.

The concepts behind finance and investing can be very complex to most people. Often, looking at your portfolio can prove challenging to the average investor. The numbers shown can mislead those without the right know-how to read financial statements properly. As a firm with the heart of a teacher, our goal is to help teach those to properly understand what is going on with their finances. This article is intended to help readers understand a key financial concept – market value vs. intrinsic value- which will ultimately provide a better understanding of your financial statements. What is Intrinsic Value? Intrinsic value is the real value associated with something. For example, stock ABC could be trading for $50, but that does not mean that is its intrinsic value or actual worth. Intrinsic value considers much more, including future cash flow, financial statements, intangible assets, etc. So, the market value of stock ABC could be $50, but the intrinsic value of that stock could be more or less based upon several factors. What is Market Value? Market value is how much something is worth in the market. From our previous example, stock ABC’s market value would be $50 because that is what it is trading for. Market value could almost be seen as the public opinion of a stock. Real World Scenarios Market and intrinsic value do not apply only to stocks. Another example of how to understand the difference could be with cars. Say there is a 1966 Mustang for sale, selling for only $1,000 due to many internal issues causing it not to start. The market value of that car is $1,000 since that is what it is currently selling for. However, some could see that the car could be fixed up and turned into a good-looking classic car, which would boost its market value significantly. This would factor into the car’s intrinsic value. Although the car is only selling for $1,000 currently, its intrinsic value is much higher than that since it has the potential to be worth more. A real-world application of the difference can be seen with what happened to GameStop’s stock (GME). In 2021, investors drove prices to a record high of $347.51 to counteract hedge funds who thought the company was doing poorly and that the price would soon reflect that. The market value at that time would be $347.51 per share, but in reality, the intrinsic value of a share would be much less than that, as the company’s true value was not worth $347.51 per share. Often, the easiest place to see the difference between market and intrinsic values is fixed income, especially on a cost basis. The cost basis usually reflects the market value of the fixed income. If you were to sell a fixed income before maturity, you would not get back nearly as much as you put in. As you approach maturity, the market value of the fixed income will rise since it will be worth more in the market, but the intrinsic value will remain the same. The intrinsic value of the fixed income would consider the return, the principal, and the time until maturity. Because of this difference between market and intrinsic value, fixed income can often look like it is worth much less than it actually is from a cost-based point of view. However, that is not the case since it is intrinsically worth more than the market value reflects. Working with an advisor Understanding investment terms can be difficult and confusing if it isn’t your daily world. Our team of advisors tries to help you feel comfortable with investing and feel informed. If you want to hear more about intrinsic vs market value, one of our advisors would be happy to discuss it with you! Click HERE to schedule a meeting!

Being in the industry of helping everyday people save and plan for retirement has provided insight into what it takes to be successful and happy during these retirement years. I will share some common characteristics of what I personally believe it takes to reach long-term financial goals. The Sprinter vs. Marathoner We all have that relative or friend who constantly tells us about a new opportunity, project, or thing they are working on that will be their big breakthrough. The new business idea that they are going to be starting in the coming months that will provide them with financial success. Only to speak to them the following year and hear another story about their new venture. They are on the hamster wheel; instead of just starting the marathon, they know they need to be on to achieve their financial goals. Consistency. Routine. Discipline. I often use the analogy of going to the gym or eating healthier with finances. We all know that eating healthy and regular exercise is excellent for us. But sometimes, we are looking for the instant gratification of our actions. After eating a healthy breakfast, we reward ourselves with greasy fast food for lunch, and after a week of working out, we take a month off as a reward. The key to our physical and financial health is the same: CONSISTENCY! Brushing your teeth or showering once a month does nothing for our hygiene, the same as saving a couple of dollars one month but then blowing the budget and racking up credit card debt the next month, which does not help us achieve our financial goals. The common trait I have seen when working with what I would consider very successful retirees is that they have been in a routine savings schedule for what seems like forever. Motivation is often fleeting, so I encourage everyone to have discipline. This means doing the things we don’t want to do when we don’t feel like it. Successful retirees are “boring” and in the best possible way! They have been doing the same thing for the last 30 years! Living slightly below their means and saving a good portion of their income. Sometimes, it really is that simple. Keep It Simple I, like many, am drawn to Dave Ramsey because of how simply he puts things. I believe in the KISS method of finance. Keep It Simple, Stupid. Live on less than you make, invest in retirement accounts, and forget about it. Do not get caught up in what the Fed will do with interest rates, the current president, or the ongoing wars. Keep saving and investing and look up in a couple of decades to monitor progress. On that same theme, the most successful retirees often worry about short-term investment returns the least. It is easy to say this is because they are financially secure, but what if it is the other way around? What if they are financially secure because they have NOT tried to time the market and have just stuck to a sound investment strategy? It is a combination of both, but you certainly can't discount the latter. If you are thinking about your retirement and want to discuss strategies for your future, reach out to one of our financial advisors. Our advisors have the heart of a teacher to help explain the various strategies to help you feel more confident when making decisions for now and your future.

Psalm 100:4 - Enter his gates with thanksgiving, and his courts with praise! Give thanks to him; bless his name! For those who live or have lived in the Midwest, the fall is a beautiful time of the year. High school football, nature gives us some of the most amazing colors you'd ever see in God's creation, and, of course, nationally, we all spend time with family and friends under the correct assumption that we all have so much to be thankful for. As hard as it is to say and even harder to live, as Christians, we should always be thankful, regardless of our circumstances. One of the central figures in the New Testament the Apostle Paul, had so many reasons to be ungrateful and discouraged, yet we constantly see him with his eye on the prize. The real reason to be thankful - your eternal hope in Jesus Christ. With that said, it is our job to help you be outstanding stewards of the assets God has placed with you to manage. Often, when the market doesn't cooperate (see 2022), it can leave us discouraged and feeling like we weren't the stewards we were supposed to be. But alas! God did not ask you to be Peter Lynch. So, as you invest monies, it's going to be bumpy. You're on a roller coaster, and the only people that get hurt are those that jump off the roller coaster in the middle of the ride. As I wrote in an article last year titled Bear Markets Normal, Not Fun, the average bear market peak to trough back to peak takes 330 days on the way down and 1.7 years (603 days) on the way back up. So, we should be thankful that, as history always proves, we are well on our way to that recovery (while some investments have completely recovered already). While it may not feel like it, investors genuinely do have much to be thankful for this holiday season. Over the past year, investors have navigated both short-term challenges due to interest rate swings, the banking crisis, and political battles in Washington, as well as long-term uncertainty resulting from inflation, the Fed, geopolitical conflicts, and more. And yet, through all of this, major market indices have held onto strong gains, reversing much of last year's declines. How can investors maintain perspective as they reflect on the past year? Many major asset classes have made strong gains this year Financial markets and the economy have defied expectations in 2023. In many ways, the current environment represents the best-case scenario for which investors and economists could have hoped just a year ago. With only six weeks left in the year, the S&P 500 (Growth & Growth & Income Blend) has returned 19.3% with dividends and the Nasdaq 36.0% (Growth stocks only). International stocks have also performed well, with developed markets gaining 11.5% year-to-date and emerging markets gaining 4.8%. Interest rates climbed throughout the year but have retreated in recent weeks. For instance, the 10-year U.S. Treasury yield has declined from just above 5% to just under 4.5%. While a diversified bond, such as the Vanguard Total Bond Fund (BND) portfolio, has only returned about 1% this year, this is far better than last year's historic bear market decline and specific strategies with a more active approach like the PIMCO Income Fund have returned 4.8%. An important reason for these gains is the health of the economy. One year ago, economists expected a recession by the year's second half due to Fed rate hikes and early signs of stalling growth. Not only did this not occur, but the job market is still one of the strongest in history, with the national unemployment rate near 3.9%. GDP growth for the third quarter, a 4.9% annualized rate, was one of the fastest in recent decades. The strength of consumer spending, driven by excess savings during the pandemic, has helped drive the economy's demand side as the supply side recovers. There are signs that this is gradually filtering through to corporate profits, which may have reached an inflection point in the third quarter, after three-quarters of falling earnings. Another reason for these trends is the fact that inflation has improved significantly. Major inflation measures, such as the Consumer Price Index (CPI) and the Personal Consumption Expenditures Price Index (PCE), are now in the 3% range on a year-over-year basis, down from highs of 9.1% and 7.1%, respectively. On a month-over-month basis, inflation improvements are even more striking with the CPI index flat from September to October. Other measures, such as the Producer Price Index (PPI) which measures inflation for businesses, have improved even more. Once again, these figures represent the rosiest scenario that economists could have predicted at the start of the year. Inflation has improved significantly Unfortunately, slowing inflation rates do not mean that prices will decline - only that they will rise at a slower pace. While this provides some relief, many households, especially those in or near retirement, may continue to find higher prices challenging. From an investment standpoint, however, both stocks and bonds have already benefited from greater price stability. The fact that the Fed may be near the end of its rate hike cycle only adds to the tailwinds that have propelled markets this year. For example, technology-related stocks have been particularly sensitive to inflation and interest rates due to the forward-looking nature of their products and businesses. While they have performed well over the past decade, they also led declines in 2022 when rates rose suddenly. Decelerating inflation and stable interest rates have helped this group drive markets higher this year. Sectors such as Information Technology, Communication Services, and Consumer Discretionary have led major indices. As inflation continues to improve, the hope among many investors is that other sectors will begin to benefit as well. Staying invested is still the best way to achieve financial goals This past year's lesson underscores the importance of sticking to a financial plan. While it's tempting to wait for the next pullback to re-enter the market and get back on track, history shows that it's often better to be invested. This is because markets tend to rise over long periods of time, making both higher highs and higher lows. The accompanying chart shows that investors often wait long periods before the next pullback and, in doing so, forego periods of healthy returns. The bottom line? Investors do have much to be thankful for this year. This can be difficult to recognize since it often feels as if markets move from one crisis to another. With the benefit of perspective, it's easy to see that the economy and financial markets have come a long way this year, hopefully setting the stage for investors to achieve their long-term financial goals. To stay on top of the markets each week, remember to subscribe to our weekly video series - What We Learned in the Markets This Week.

What is an ESOP? An ESOP, or Employee-Stock Ownership Plan, is a unique retirement plan allowing employees to own the company. Companies that opt for an ESOP will establish an ESOP Trust, where owners can sell company shares or issue new shares for the trust. Often, when owners sell their shares to the trust, a bank loan is required to generate funds to purchase the owners’ shares. Employees then get the right to the shares in the trust relative to their pay. Employees will then gain access to their shares upon retirement, which companies must buy back from the employees at fair market value. This is an excellent way for companies to incentivize employees to work hard as it will increase stock prices and, ultimately, their retirement funds. Such a unique retirement plan comes with special rules for the payout. These unique rules often raise questions for those enrolled in the ESOP plan. Who is eligible for an ESOP Distribution? It can be difficult to tell who is eligible for ESOP distributions as it differs significantly from most employer-sponsored retirement plans. The requirements to qualify for an ESOP distribution are one of the following: - Retired from the company and over 59.5 years of age - Terminated from the company or quit and over the age of 55 - Still working for the company but over the age of 70.5 A vesting period is also required for employees to become eligible for an ESOP distribution. This period differs based on the company. How are ESOP Distributions Paid? There are a few different ways distributions can be paid. If an employee retires, distributions begin one year after the end of the plan year. The plan year refers to the annual reporting period for the ESOP, which can create a large discrepancy in when distributions begin. If an employee quits or is terminated from the company, the distributions would start no later than six years after that date. Distributions can be paid as a lump sum or in six equal payments over five years after qualifying. In some cases, distributions can be spread across ten years if the balance exceeds an amount specified by the IRS. Something to consider when deciding how to receive distributions is the fact that the stock price will change. If you were to choose not to take the payment in a lump sum, then the cost of the stock and, therefore, how much you receive will change in price. ESOP distributions are taxed as regular income, but not until it is distributed. If you take a distribution before 59.5 years of age, you will be subject to early withdrawal fees. One way to avoid these fees is to roll the ESOP into another retirement account, such as an IRA. If the lump sum is taken in shares, they will be subject to capital gains taxes upon the sale of the shares on top of the regular income tax from receiving the shares. ESOPs are also subject to RMDs. What Options Are There for The Distributions? ESOPs are very complex, and the recommendations for what to do with them can vary depending on your financial plan and goals, so that is why we would recommend that you contact a Financial Advisor to discuss your options. One of the Financial Advisors would be happy to help and you can schedule a meeting with one of them today.

What is considered a gift? Before deciding to gift split, understanding what qualifies as a gift is essential. Gifts can include money, real estate, antiques, other items, and other assets. It is important to remember that only gifts of present interest qualify for the gift tax exclusion. To be considered a present interest gift, the donor must have all immediate rights to use, possess, and enjoy the property (real estate, boat, tractor, etc.) or income gifted. Items that typically do not qualify as gifts are items used for education or medical purposes and gifts made to political organizations. Gift Tax Exclusion The gift tax exclusion for 2023 is $17,000. The gift tax exclusion for 2024 will be $18,000. For example, if you give your cousin $20,000 in cash, you can exclude $17,000 from being subject to the gift tax. However, if you put $20,000 into a trust for your cousin, then all of that gift is subject to gift tax because that is a gift of future interest. You can use that exclusion once for every donee you gift for the year. This means that if you make multiple gifts to your brother, you can still only exclude $17,000 for the year for all gifts given to your brother. However, if you gift $15,000 to your mother in the same year, you can exclude it as it is below the exclusion and the only gift made to your mother for that year. What is gift splitting? By splitting gifts, married couples can double their gift tax annual exclusion, meaning they can now make gifts up to $34,000 without paying gift tax. This number increases yearly as the annual gift tax exclusion does. The gift-splitting annual number is double whatever the gift tax exclusion is for the current year. It is important to remember that only legally married couples may elect to gift split. Those filing as individuals may not gift-split. For example, You and your spouse give gifts to your children. Your total gift amount is $20,000. Your spouse's total gifts are $14,000. Without splitting gifts, your spouse's contribution is wholly excluded as it falls under the annual exclusion. However, the $3,000 of your gift above the annual exclusion ($17,000) is subject to gift tax. If you elected to split gifts for the year, then each spouse is deemed to make an equal gift, and you could exclude all $34,000 and not pay gift tax. Once you make an election to split gifts, you must split ALL gifts to third parties for the year. You must file a form 709 if you choose the gift-splitting option. The filing date for form 709 is April 15th, plus extensions. If you file a form 709 for gift splits, your spouse must also sign to give consent to split gifts on line 12. A common way that people avoid gift tax is by spreading out their gifts over several years. By doing this, they can stay below the gift tax exclusion. If a married couple elects to split gifts, they can double that exclusion for all gifts during the calendar year. This increases the amount that can be given over a number of years without incurring gift tax. Why would I gift split? Many people like to do their gifting while they are alive instead of having it come from their estate. There are multiple reasons for this. One of the main reasons for giving to loved ones while you are alive is that it allows you to see them enjoy the money or gift that you gifted. You can see them reach a goal sooner because of your gift and witness the blessing you were able to have on their life. This joy from gifting cannot be experienced if all your gifts come from your estate (after you pass). The second reason is that it allows you to lower your taxable estate so that more money goes to your heirs instead of the government. It is always important to ensure you are financially secure before executing lifetime gifts. Conclusion Gift splitting can be advantageous for married couples who wish to give a portion of their wealth to others. However, many rules come along with gift splitting. If you think gift splitting would benefit you, it is essential to talk to your financial advisor, who will be able to personalize this tactic for your situation.

A brokerage account is a “non-retirement” account with no contribution limits, no income limits, and no penalty for taking money out before age 59 and a half. It can go by many names: individual account, joint account, gap account, bridge account, non-retirement account, cash account, business account, or margin account, to name a few. It will never be the advice from a Whitaker-Myers Wealth Managers SmartVestor Pro to borrow money from a bank to invest, so please be very careful about opening or using a margin account. What Can a Brokerage Account Be Used For? A brokerage account can be used for anything. Want to save for a vehicle over the next five years and allow that money to work for you? Dollar-cost average your money into a brokerage account and invest it as conservatively or as risky as you would like! Want to put your emergency fund to better use? Move it over into a brokerage account, and one of our SmartVestor Pros will invest it into the Schwab Money Market, which is currently yielding about 5.26% as of 11/13/2023. Want to save for a down payment on a house? Talk to your local SmartVestor Pro to go over your options. What Are the Tax Implications of Using a Brokerage Account? Brokerage accounts do not have the tax benefits your traditional 401(K) or a Roth IRA has. When it comes to a brokerage account, you have short-term capital gains/losses and long-term capital gains/losses. A short-term capital gain is when you sell the position within one year of holding it, and there is a gain. A short-term capital gain is taxed at your ordinary income tax rate. Here are the 2023 ordinary income rates: A long-term capital gain is when you sell the position after holding it longer than one year, and there is a gain. Here are the long-term capital gains tax brackets for 2023: If you have any tax questions, please get in touch with our Tax ELP, Kage Rush. When Should I Open a Brokerage Account? When you’ve maxed out your employer-sponsored retirement account(s) and your Roth IRA(s) When you are looking to invest more than 15% of your income (Baby Steps) When you want to retire early and avoid early withdrawal penalties When you have a long-term savings goal and want to make your money work for you This would be using it for a sinking fund to save for things such as: Down payment for a house A new (to you) car Home repairs Wedding Vacations What Is the Difference Between Retirement Accounts and Brokerage Accounts? Source: Ramsey Solutions Want To Open a Brokerage Account? Talk to your local SmartVestor Pro. Our team of advisors is happy to walk through any questions you may have and help guide you through your investing process.

When Should I File the FAFSA? As you may already be aware, the Free Application for Federal Student Aid (FAFSA) is not yet open and won't be until sometime in December or possibly January 1st. I've already gone over some of the major changes in September's newsletter. FAFSA simplification has been a topic of discussion for several years, with the aim of making the process of applying for federal student aid easier for families. The intention is commendable: simplify the form, reduce barriers to apply, and make college funding more accessible. So far, I would characterize FAFSA simplification as FAFSA Complication. However, "simple" is relative. While these changes are aimed at simplification: Some families might still find the process complex, especially if they're unfamiliar with financial forms or if they have unique financial situations. There's always a learning curve with new systems or processes, so there might be confusion initially as applicants and financial aid offices adapt to the changes. The underlying principles of the FAFSA, assessing a family's financial situation to determine aid eligibility, remain complex, and while the form can be simplified, some intricacies are inherent to the process. Each month, we provide you with tips on the best ways to pay for college regardless of your financial situation in our College Planning Monthly Update. This is the first year that parent contributions to their 401(k), 403(b), and 457 retirement plans will not be counted as discretionary and will no longer be counted against you when you apply for financial aid! If a retirement plan contribution is on your W2, it will NOT count against you. However, IRAs, Simplified Employee Pensions, SIMPLE IRAs, Keogh, or any other retirement plan contributions that appear on your 1040 Schedule 1 WILL count against you. A suggestion from our financial advisors would be to go ahead and fund those W2 retirement plans to the max. It will reduce your taxable income and increase eligibility for financial aid. This may be the most positive change ever made to the financial aid formulas because it may enable you to INCREASE your retirement account contributions while, at the same time, reducing your future out-of-pocket college costs! Contact me at 330-345-5000 so that I can run the analysis for your particular circumstances. The financial aid system has more trapdoors and landmines than ever before. Do everything you can to avoid mistakes by preparing now for the financial aid process. If you would like to go through our College Planning Process with our Financial Coach, Lindsey Curry, please reach out to her today! Authors: John-Mark Young Lindsey Curry

What should you be looking for when searching for a Financial Advisor? Dave recommends that you ask the following when getting to know a prospective advisor: What do you love about your job? What services do you provide clients? What is your investment philosophy? How will we communicate about my investments? How do you get paid? How will you measure and evaluate my investment performance? Tell me why your last two lost clients stopped working with you. Although we agree that these are great questions to ask when choosing your advisor, we at Whitaker-Myers feel there is one more trait to note: the Heart of a Teacher. This so happens to be our firm’s number 1 core value. So, before you ask your potential advisors these critical questions, we encourage you to see what they teach you first. This article will explore why these questions are essential and what their potential responses could mean for you, your money, and your future. What do you love about your job? This question is great for building rapport. You want to find someone you trust, someone you enjoy being around, and someone who helps you understand why we are doing what we are doing for you. People could love a multitude of things about their jobs. It could be the analysis, the client relationships, the newness that every day brings, and an infinite number of other things about this profession. Ultimately, it is up to you to figure out what personality you gravitate to. What services do you provide to your clients? This is a crucial question in the fact that their answer depends on whether or not they can help you accomplish your goals. For example, if you want life insurance but they don’t have their life insurance license or someone in their firm to refer you to, check them off the prospects list. If you want a financial plan but they only do asset management, maybe they aren’t the right fit for you. We suggest finding an advisor offering the broadest range of services, with lots of experience in each criteria area. These criteria are: - Tax planning - Investments - Retirement planning/Financial Plan - Estate planning - Insurance Planning Bend their ear as to how they incorporate each aspect of those criteria in their services as a firm. What is your investment philosophy? My answer to this is simple. We like to invest in Dave’s 4 categories of Growth, Growth and income, Aggressive Growth, and International, broken up into appropriate 25% increments. Being able to discuss the differences in each is essential, too. Not every advisor will have the same philosophy, and that is okay. You need to find the right philosophy for you. Risk tolerance, age, situation, retirement, etc., can all impact your personal investment philosophy. Make sure the firm you choose aligns with your goals and preferences. How will we communicate about my investments? Find an advisor that responds to your emails as you find appropriate. Find an advisor who answers your calls or calls you back in a manner that you find suitable. Come into your prospect meeting with an idea of how often you’d like to review your financial situation. Is that four times a year, twice a year, or even annually? Everyone is different. Through these meetings, phone calls, emails, etc., your advisor should keep you up to date on your investments based on the level you find appropriate. How do you get paid? When asking this question, you should have a general idea of how advisors are compensated. They can be paid in a multitude of ways, but here are the most common: Assets under management Generally, 1-1.3% of the dollar amount you have charged annually Ex. You have $10,000 to invest; you will be paying roughly $100 each year for that professional management Insurance commissions Your advisor could have the ability to sell Life, Health, Disability, and Long-Term care insurance This usually pays a commission on these sales Investment commissions Some firms incentivize their employees to put you in their firm-specific funds. Those can come with load fees on mutual funds, which means there is an upfront charge to buy a mutual fund. Fee for Plan Some advisors like to forgo asset management and charge a fee for a financial plan. This often happens when clients do not want asset management but want advice on their current financial situation. These fees range from a basic $500 plan to a comprehensive $5,000 + plan. The comprehensive plan is suitable for larger net worth clients looking to get a snapshot of their financial situation without turning over their assets to an advisor charging for Assets under management. Look for an advisor with the professional designation CFP® next to their name if you want to employ an advisor for this service. Here at Whitaker-Myers, we can offer a fee-for-plan service from the team of CFPs we work with. Contact an Advisor if you are interested in learning more about this. *Note: Ensure you hear that the firm you are prospecting is a fiduciary, meaning they put your interest above their own. How will you measure and evaluate my investment performance? Search advisors who can answer this question by mentioning the 4 categories and their corresponding market indexes like the S&P 500 (growth) or Russell 2000 (Aggressive Growth). Most advisors evaluate your investment performance based on how the markets that correlate to your investments are doing in that period. Tell me why your last two lost clients stopped working with you. Keep your ears perked up for anything questionable, and pay special attention to those who don’t give an example. Honesty is what this question should bring, so a transparent advisor is one you can trust. The power of speaking with your advisor Everyone has different goals and timelines with their money, so speaking to a Financial Advisor or Financial Coach about your specific needs and goals is essential. Please contact one of the Financial Advisors or Coaches at Whitaker-Myers Wealth Managers; we would be happy to help!

With Halloween over, the Holiday Season has now officially begun! And if you are anything like the stores, some of you may be getting your Christmas tree out this week. Now, I am a “let the bird have its day” kind of girl, and I have the decorative hand towels to prove it. But that doesn’t mean you can’t be proactive with Christmas this early. Holiday Prep Season – September & October As much as I hate to admit it (as stated above, I like to give Thanksgiving its day), if you start thinking about Christmas in September and October, you are actually setting yourself up for a less stressful holiday season. I know it may seem like we are rushing our days, but as I tell many of my coaching clients, one of the best ways to stay on track with your budget is to be proactive rather than reactive with your dollars. By laying out who you need to purchase gifts for this holiday season and outlining how much you want to spend on each person, you can better spread out the money spent so it is not all hitting at once. Lay it all out Chief Operating Officer Amanda Sharratt recently did a Question of the Week video on this topic and helped lay out how to tackle a way to organize this list collectively. She suggests creating a spreadsheet (or emailing us to send you our Holiday Spending Template!) that lists all family and friends you need to purchase items for and the associated dollar amount. The spreadsheet even includes columns for ideas to get them, notes for when you bought them an item and a place to say when they are “check mark – done!”. This spreadsheet can be a one-place stop for all your holiday gifting organization, allowing you ease for “checkin’ it twice.” Game plan how to spread it out Ideally, once you get comfortable with this system and start working ahead to detail out the “who and how much” for each year, you can begin working towards creating a sinking fund. This will allow you to save for these purchases all year long with a small amount being put aside each month, so the cost of the holidays doesn’t fall on just the last few months of the year. Even if you have not started a sinking fund yet, putting some money aside now will help take the burden off your shoulders come December with costs. Search sales and discounts Take advantage of the holiday sales or “special event day” discounts many businesses are putting out in the very fast-approaching days. Scope out these deals and see how they can benefit you by checking items or loved ones off your Christmas list. However, my disclaimer is, don’t buy just to buy because “it’s a good deal” or “on-sale.” This is an impulse purchase and exactly what the marketing teams and businesses hope for from you. Another thing I say to my coaching clients is to be intentional with your spending. The same can be said about your gifting. Be intentional Remember, no one needs just “stuff.” So, when thinking through your gifting options or ideas for someone, try to think through what this person enjoys. Perhaps it is not an item at all. Maybe it is an experience of some sort (things that come to mind are theater tickets, art classes, cooking classes, and sporting events, to name a few). Memberships to splash parks, zoos, or other museums are great ideas for young children as these are gifts they can enjoy with their families all year. And lastly, one of my recent favorites as an adult is a gift card! Homemade comes from the heart Amanda mentions about the thoughtfulness of handmade gifts. And I could not agree more with her on this! Do not undervalue this gift idea! I spoke to someone recently who went to one of those painting pottery places with their children as a fun day activity. They each picked out one item for their grandparent and painted it specifically for them to give as their Christmas present. What a fun idea! Not only are they having a memorable day with their children, but they are also helping with their Christmas shopping list. Holiday Budgeting Budgeting for additional costs, such as the holidays, can be stressful. Especially when monthly expenses seem stressful enough already. By planning out upcoming purchases, having a game plan, and capping your holiday spending, hopefully, you can eliminate more stress than needed this holiday season. Our financial coach helps create budgets that fit your lifestyle and helps you plan for upcoming expenses, like the holidays. If you are interested in learning more about budgeting or want to talk to our financial coach about being more proactive with your holiday planning, reach out and schedule a meeting today!

I recently stumbled upon a stat that got me thinking. It said, "that people who work longer are living longer". We've all heard the proverbial story of the person who retired and died within weeks. Could it be that God wants us to continue our work well past age 65? I think the answer might surprise you. Now we are uniquely positioned to help answer this question because 95% of the reason most people darken our door is retirement planning. People know that at some point, their desire to do what they are doing today may erode, and they want to refocus how their time is spent. I’m sure I’ll give you a perspective quite different from many of the other financial advisors you've ever talked to. That’s because our firm is rooted in Biblical principles, and we view the world through a Biblical worldview, which means we take the Bible at its word and believe that it is sufficient for all teaching today, in the past, and in the future. The apostle Paul, in his letter to Timothy (2 Timothy 3:16 – the other 3:16 verse) said: “All scripture is breathed out by God and profitable for teaching, for reproof, for correction, and for training in righteous.” Therefore, work for a Biblically based Advisor goes back to IN THE BEGINNING. The beginning of the earth with Adam and Eve. Work was here before sin entered the world, thus work was part of God's initial, perfect design for humans and the Earth. In Genesis 2:15, we learn that “The LORD God took the man and placed him in the garden of Eden to work it and watch over it.” So we learn that work is normative – it is part of what God designed us to do. We would argue your work is not done until you die. If work is a God-ordained thing, then why do so many people hate it? Well, it's because for many people, their work does not have any purpose. It’s a means to an end. For many people, they want to retire from something as opposed to retiring to something. When it comes to retirement – when your job is golf or anything else lacking purpose, people don’t have the fulfilled retirement they could or should be achieving. Research has shown that 27% of people who retire today return to work in just 4-6 months. Why is this – they lack purpose. They lack a meaning to their life. The meaning they did have (from work), even though they may have hated it – was at least meaning and purpose. Do you know what people hate more than work they hate? No meaning and purpose! And as described above, God did not make us for no purpose or meaning. A fellow Financial Advisor and Christian brother Wes Moss wrote a trendy book titled, “What the Happiest Retirees Know.” He looked at all the quantitative and qualitative factors that drove people to describe their retirement as happy. Sure, there were some math things in there, like you should have XX amount saved and you should have your mortgage paid off, etc. But the most impactful things to people's retirement happiness were people and purpose. The people side of it was simple: retirees’ who were within an hour of at least half their kids were happiest, and people with at least 3.6 close personal relationships were most happy. So people make a difference, BUT….. A real key to success was the happiest retirees didn’t actually retire. They refocused. The happiest retirees had at least 3.5 core pursuits in their lives that filled their time with things that gave their life meaning and purpose. Many of these core pursuits are tied back to people’s church. How could they get involved in ministries within the church that helped them fulfill The Great Commission and the hole in their own lives created by retirement? Ecclesiastes 2:24 says, “There is nothing better for a person than that he should eat and drink and find enjoyment in his toil. This also, I saw, is from the hand of God.” Additionally, in Ecclesiastes 3:12-13, “I perceived that there is nothing better for them than to be joyful and to do good as long as they live; also that everyone should eat and drink and take pleasure in his toil – this is God’s gift to man.” How ironic. Wes’s study shows that people need people and purpose to enjoy retirement, and the Bible had already clarified that for us – 2 Timothy 3:16 bringing Deja Vu? And if that isn’t enough evidence, another recent study showed that if you delay your retirement by one year, you increase your longevity by 11%. So not only are you making yourself happier in retirement, but you are potentially increasing the longevity of retirement. One extra year of work for three extra years of life (assuming the average retirement is 30 years) is a pretty good tradeoff, especially when considering what that extra year probably did to your Social Security benefits and 401(k) growth – as we know the most significant growth from your retirement plans comes in your latest years because you have the most amount of money. Essentially, we learn from the Bible that man is to work his entire lifetime. God did not intend for us to spend our last twenty years on this earth in leisure. There is undoubtedly a rhythm to work and leisure, and perhaps there is more leisure enjoyed by someone in retirement than that of a person in the heart of their career, but it can’t be all leisure. Retirement to leisure was never a part of God’s plan for you – there is Kingdom work to be done, and the person who no longer has to clock a 9 – 5 now has a more extraordinary ability to do that Kingdom work. It’s all about getting to that Matthew 25:23 moment in our life where Jesus told the parable of the talents, and the master said to the servant, “Well done, good and faithful servant! You were faithful over a little; I will set you over much. Enter into the joy of your Master.” As a practitioner in this field for nearly 14 years (since 2007), I’ve seen many people retire. The ones that do it the best have a plan for how they’ll fill out those 3.5 core pursuits that Wes Moss talks about, and many times, they take a practice run or two at it. They slow their career work down to part-time or at least something less intense than it was at its peak, and they start to enjoy more leisure and other core pursuits that take a higher priority in your life. Go to the Christian Children’s Home of Ohio and spend an afternoon around those kids and then tell me your work is more important than investing in their souls. That’s how this is done right - find what drives you, find your kingdom passion and then, as it’s famously said, you’ll never work a day in your life (at least in retirement 😂).