The Smartphone Advantage It is no secret that we hold the most known information ever discovered in the palm of our hand through the innovations of iPhones, Androids, and simply the internet. Because these devices hold so much information and have so many excellent tools at our disposal, it would be a crime not to incorporate them into one's daily life. From Google, to all the apps available to those with our smartphones, being financially savvy has never been as easy as it is now. Here are a few tips we suggest to be financially responsible with the help of your phone. Look at your bank account daily Something that I encourage most people to do is to check their bank accounts daily. People often prefer to avoid accepting the reality of how much something dented their bank account, such as shoes, amazon, or even rent! My bank has an app, so it is all very easy to look at for real-time balances. Seeing how each transaction affects that number is crucial to budgeting your life and saving for the future. It is also important to project out future expenses as you have money coming in. Every two weeks for me are major payments due: Miscellaneous expenses from the month and rent. I know roughly how much each will cost, which lets me know what is left over. Knowing your "leftover" number is also very important, as it can give you an idea of what you want to contribute for retirement each month and what will be used to spend/save up for fun things like vacations or nice clothes. Track your spending through apps As previously mentioned, one of my major expenses comes from my miscellaneous expenses from the month. Through apps like Mint, one can track spending habits. Maybe you bought $400 in clothes for the month, and you had no idea. Or even $500 this month on gasoline alone. Using applications designed to help someone comprehend how much they are spending each month and what they are spending it on can help them manage their financial life for the better. We also suggest that everyone downloads the EveryDollar app. This is the budgeting system the Ramsey Solutions team created to make budgeting effortless and, of course, in the palm of your hand. It is a zero-based budget, meaning it tells you how to spend every dollar in your monthly income to keep you in line with the parameters you set for yourself and to help you track your transactions, so you know you don’t go over what you have in the bank account. You can set goals for savings, paying off your debt (baby step 2), and even link it to your bank account with the premium membership, so you have in-the-moment numbers. Set it and forget it- Automatic Investing Lastly, one can track their investments with their advisor through apps like Fidelity, Vanguard, or Charles Schwab. Whatever one may contribute to these accounts from their "Leftovers" can be easily tracked through these apps on their phone. Often people want to call their advisor and ask how their account is doing or how to track their contributions, etc., which is wonderful. But with the help of your advisor walking you through what you see on the app, you can fully understand the complete picture of your account to view at any time you would like. Using smartphones to our benefit Use these apps on your phone to your benefit. They are designed to help people overwhelmed by the intricacies of the financial world. They are more powerful than we can comprehend, so use them to see how they can help you stay more financially stable. We encourage you to start taking full advantage of these wonderful tools provided by our phones. The power of speaking with your advisor As overwhelming as the stock market, timing, capital losses, and more can become, always feel free to use an advisor you know to ask questions. It is our passion to help people understand these topics. When it comes to the life work of our clients and prospects, no decision is ever taken lightly. No account value is disregarded because all concerns and questions hold such a heavy weight in a time like this. We hope you've learned a great deal from this article and, more importantly, reduced some stress from your life today. Please feel free to use Drew Hodgson to begin asking your questions. There is no too small of a question and no wasted time if you choose to speak with him.

Is it really worth it? $6.75 That is the price I paid for one medium, flavored, double caf coffee last Friday. At the moment, I justified the 7:45 am, 20 minutes in line for the drive-through order. Considering I was on my way back from picking up my computer cord I left at the office with a dying computer at home, my 2-year-old had been up since 3:00 am with a cough and just wanting to be held, and my 4-month-old woke up with goopy, crusty eyes; in my tired mama’s eyes, it was better than going back home, unloading them both, and trying to make a cup of coffee before plunging into the day’s work. But as the (way too cheerful for 7:45 am) barista handed me the coffee, I found myself asking myself, was the convenience of this over-priced coffee actually worth it for that price? Buyer’s Remorse And even though it was technically a guilt-free pleasure because I used a gift card I got from Christmas, I still had buyer’s remorse after pulling out of the now even more crowded parking lot. I kept thinking how at the moment, I was tired and felt like it was warranted. And, yes, I know I was not being frivolous since I had the “cash” from the gift card, but I kept thinking of how if I didn’t, would I still have bought it? Would my tired eyes and arms still lead me through the drive-through line? Is a treat now really a treat in the end? A moment on your lips, forever on your hips Or, in this case, “A moment on your lips, forever out of your bank account.” Again, I realize I had the gift card, so I wasn’t really taking from my budget, but what if I had? Would I have indulged in the convenient coffee had it taken away from my diaper budget? (Because hello, two under two in diapers; let’s just go ahead and start a sinking fund for that now, please) Or, at the price of eggs, did I trade a warm cup of joe for two dozen eggs out of this week's grocery budget line? Can instant gratification lead to instant regret? I know that with coaching, I discuss with clients the importance of setting parameters around their budget items and stress the importance of monitoring their expenses to help regulate their behaviors. But with the world that we live in now, with more convenience due to our fast-paced society, and can literally at the click of a button have what we desire, monitoring your behavior is more challenging than ever. But here’s the lesson… However, despite all the mom guilt I was throwing at myself, I realized something. I had changed my behavior. I have re-wired my brain over the years. And I don’t mean only before kids, but before I started budgeting for myself. Before learning to budget, I wouldn’t have thought twice about ordering that coffee. And even though I had a gift card to pay for the coffee that day, the fact stands that I took a second to pause and think about how, if I had not had the gift card, how that coffee trip would have impacted my budget. I have made the lifestyle changes I talk about with my clients. I know I talk about changing these behaviors and learning these new habits, but it was refreshing to have an “ah-ha moment” and a reminder for myself. So, was it really worth it? $6.75 for a cup of coffee. Here are my thoughts on it: For starters, it brought me a little bit of sanity to an already chaotic morning (remember, have grace on yourself). And the fact that I was using “free money” by paying for it with a gift card, vs. taking it out of my budget, allowed me to have the convenience coffee guilt-free (well, almost). And it was a great reminder to take a step back and see how I had come along these last few years in modifying my behavior. And not to say that I modified it in a way that says I could never have such a treat ever again, but I modified it in a way that I took a second thought on if that was the best way to spend my money. Today I am going to say it was worth it. If you want to learn ways to budget and learn lifestyle changes to help you save, set up a meeting with our financial coach.

Happy New Year!! You did it! You survived the gauntlet of Holidays that end each calendar year. With the new year comes new opportunities and new changes - some good and some bad; and with so much on your mind and in the business of life at the end of the year (traveling to friends and family, buying gifts, making meals, playing games and watching college football), it is easy to get caught up in bad habits and forget to finish the year strong. Getting Out of Bad Habits If you’re like me, no matter how well I plan, the end of the year always tempts me to jump back into bad habits - like spending more than I make or eating too much food, etc. I’ve heard all the excuses… “Everybody’s doing it!” “But I have to buy presents for my ex-wife’s second cousin’s stepson.” “I want my kid to have the best Christmas ever.” “I just HAVE to have it!” Bad habits create a hectic lifestyle, and that’s not how you want to begin a new year. For instance, if you spent more than you made over the holidays, you start the new year off having to get out of debt. The Bible clearly states that the borrower is a slave to the lender (Proverbs 22:7). I’m not saying you can’t have fun, but what are the consequences of your actions? How will you pay off that debt? Do you have to pause your contributions to your 401(k) or Roth IRA? If so, this has a compounding effect on your retirement. And for what? So, you could “keep up with the Jones’s?” Playing Catchup There is hope! This is a new year, and with the new year comes new goals and resolutions. Did you know you have until Tax Day of 2023 to max out your IRA or Roth IRA for 2022? That’s right! If you contributed $3,000 through December 31, 2022, and you want to continue to take advantage of 2022, keep plugging away with those contributions! Just make sure your contributions are coded for the correct year. The maximum contribution limit for IRAs and Roth IRAs in 2022 was $6,000 ($7,000 if 50 or older), so as long as you don’t contribute more than the contribution limit, you can keep contributing towards the 2022 year until Tax Day of 2023. Things to think about for 2023 IRA/ Roth IRA Contribution limit - $6,500 ($7,500 if 50 or older). If you plan to max out your 2023 contributions, here is the simple update you need to do based on how you contribute: Update your monthly contribution to $541.66 ($625 if 50 or older) Update your twice/month contribution to $270.83 ($312.50 if 50 or older) Update your biweekly contribution to $250 ($288.46 if 50 or older) Update your weekly contribution to $125 ($144.23 if 50 or older) 401(k), 403(b), Thrift Savings Plan, and most 457 Contribution limit - $22,500 ($30,000 if 50 or older) Click HERE to see the highlight of changes for 2023 Now What?! Luckily for you, we’ve got the answer that works every time. If you’re a Dave Ramsey follower, you’ve heard him harp on 7 action steps that will guarantee you financial success in life: the 7 Baby Steps. No matter where you are financially, these 7 steps will help you get out of debt, build wealth, and “live and give like nobody else.” If you would like help on your financial journey, reach out to your Local & National SmartVestor Pro and schedule a meeting. We are happy to meet you where you are and answer any questions you may have.

With 2023 off to a furious start, we may not soon forget the woes of 2022. In addition to a bear market, those woes include higher-than-normal interest rates that will linger into the new year. In this article, we will look at three (there are more) key ways interest rates impact your budget. Mortgage As fans of Dave Ramsey, we subscribe to the notion that debt is not a good idea. A mortgage can be a good wealth-building tool, but it’s best not to get in over your head. We advise our clients to secure a 15-year mortgage loan that has a fixed interest rate. This ensures that you are not locked into a 30-year agreement and that you’re not subject to the volatility of the current interest rate environment. Budgeting is easier when you know what you’ll be paying. The mistake that some people make is going with an adjustable-rate mortgage, thinking that they could potentially see a decreased rate in time. The reality is that adjustable-rate mortgages are bad; they could leave your mortgage payment subject to a sharp increase when the annual adjustment hits. If you’re considering buying a home, don’t let the interest rate environment hurt you – go with the 15-year fixed-rate mortgage once you’ve paid off all your other debt. Student Loans It is likely that if you have student loan debt, you have been paying a fixed rate since taking the loan initially. That hasn’t changed and won’t change due to the interest rate environment. Like a home loan, the Fed’s policy can’t touch fixed rates, but it will impact loans of future debt. If you’re planning on sending your kids to college, it’s best to start saving for the expense now and pay with cash when the time comes. You can open a 529 plan specifically for education expenses and we were recently granted some flexibility via the Secure Act 2.0, which states that unused 529 funds can be rolled into a retirement account penalty-free. If there weren’t already enough reasons not to lean on loans to pay for school, now you’ve got one more. Car Loans A car is pretty much a necessity these days unless you live in Manhattan. But buying a car on credit that’s worth more than your salary is not. The temptation is real, but the negatives far outweigh the positives when it comes to interest rates. Though car loans are most likely fixed-rate loans as well, any new car loan in this environment is going to bleed you dry. Cars are notoriously bad investments, so why buy a new one, especially on credit? A home goes up in value almost every time, whereas a car loses value the minute you drive it off the lot. Avoid paying interest altogether and buy an affordable used car, that gets you from point A to point B. Then, when you have your ducks in a row and feel the need for speed, buy a car that you really want with cash. A good rule of thumb to follow is this: If you don’t have the cash, you can’t afford it. In today’s instant gratification, mobile-pay environment this might seem like insanity, but in reality, buying something with someone else’s money is a lot crazier. That’s why Dave Ramsey always says, “Cash is king and debt is dumb…” Buying on credit is a craze that’s swept society, we get that. At Whitaker-Myers, we have a team of professionals who want to see you live a debt-free lifestyle and avoid the perils of borrowing your life away. If you struggle with budgeting and feel like you just aren’t making any progress, reach out to our financial coach, or talk to an advisor today. We’d love to help you live like no one else so that later on you can live and give like no one else.

Let me start out by saying if Dave Ramsey would do a solid for his country and run for President, we wouldn't be in this mess. With nearly $31 trillion in debt today, the plush cafeterias in Langley would be stocked with only rice and beans. Kevin McCarthy and Chuck Schumer would be required to hold weekly EveryDollar Budget meetings to ensure they weren't spending too much, and maybe most importantly, we'd have someone in the White House that is independently wealthy, thus not having to enrich themselves by using their governmental authority to "create wealth" for their family. Every Presidential cycle Dave is asked, and every time, he reminds us he'd have to be crazy to want to that job. The federal debt limit is once again in the news as the country rapidly approaches a critical deadline on June 1. Investors are understandably nervous about Washington failing to reach an agreement, a possibility that both sides agree would be a self-inflicted catastrophe. While it's unclear how this will play out in the coming weeks, the fortunate news is that financial markets are mostly taking these events in stride. How can investors maintain the right perspective around political and fiscal uncertainty? Federal borrowing reached the debt ceiling this past January First, it's important to understand what the debt limit is and is not. In simple terms, the federal government borrows money to pay its bills by issuing Treasury securities. This is necessary because the federal government often operates with a deficit whereby spending (on defense, Social Security, emergency pandemic stimulus, and more) exceeds government revenues (which consist primarily of tax revenues). While tax revenues increase as the economy grows (even without raising tax rates), they have been outpaced by spending over time. This borrowing adds to the national debt which hit the $31.4 trillion debt ceiling in January. Since then, the Treasury Department has been employing what it calls "extraordinary measures" to ensure that the country does not default on its obligations. The debt ceiling is a mechanism that requires Congress to approve additional borrowing above these levels. Thus, what makes this discussion confusing is that the debt ceiling is not about government spending per se. That spending has already been authorized through the normal budget process that takes place each year. Thus, the only question around the debt ceiling is whether the government can and should pay its bills. This is akin to signing the papers for a new car then afterwards requesting an increase to your credit limit. For most of us, the decision to buy something can't be separated from whether we will pay for it, even if it's with debt. Unfortunately, the Congressional process for approving a budget by September 30 each year is separate from whether the Treasury can actually pay the bills. Near-term Treasury rates have jumped but longer-term rates are steady Second, the large and ever-growing national debt is a controversial topic that impacts the economy and markets in complex ways. At the moment, Democrats, who control the White House and Senate, and Republicans, who control the House of Representatives, are in a standoff. On April 26, the House passed a debt limit bill by a narrow vote margin of 217 to 215. This would increase the debt limit through March 31, 2024 or until the national debt increases by another $1.5 trillion. However, it also includes provisions such as discretionary spending limits, the repeal of renewable energy tax credits, increased work requirements for benefits programs, and others. While many of these ideas are wonderful and common sense, they are politically fraught and thus unlikely to pass the Senate and be signed into law. As usual, there is plenty of political grandstanding around this issue with each side trying to gain the upper hand. Similar debt ceiling standoffs have occurred over the past decade with the limit suspended and raised in 2013, 2014, 2015, 2017, 2018, 2019 and 2021. According to the Congressional Research Service, the debt ceiling has been raised 102 times since World War II. Fortunately, despite the headlines and investor concerns, these episodes had little long-term impact on markets. The U.S. has never defaulted on its debt, and nearly all economists and policymakers agree that doing so would lead to turmoil in the financial markets and increase borrowing costs for businesses and everyday citizens. This risk is evident in the bond market with a sharp jump in Treasury rates with maturities around the debt ceiling deadline, and much lower rates thereafter. The one exception to markets staying relatively calm occurred in 2011 when a similar standoff led Standard & Poor's, a credit rating agency, to downgrade the U.S. debt. The stock market fell into correction territory, with the S&P 500 declining 19%. Ironically, the prices on Treasury securities increased during the 2011 debt ceiling crisis because, even though these were the exact securities being downgraded, investors still believed they were the safest in the world at a time of heightened uncertainty. The debt ceiling was eventually raised and a new budget was approved, allowing markets to bounce back. Income tax rates are still low by historical standards Third, debt ceiling aside, the national debt at today's level means that it has more than doubled over the past decade and, with very few exceptions, has grown nearly every year over the past century. While everyone generally agrees that the government should not spend more than it generates in tax revenues, the unfortunate reality is that neither party has addressed the problem over the past decade. The last balanced budgets occurred during the Clinton years and the Nixon administration before that. So, deficits are unlikely to go away. Given how heated the topic of government spending can be, it's important for investors to distinguish between their political feelings and how they manage their portfolios. In other words, investors should focus on what they can control in order to differentiate how things work from how they would like them to be. One factor beyond the market and economic effects is that the odds of higher tax rates may increase as the national debt worsens. Today, the highest income tax rates are slightly above their lows after the Reagan tax cuts, but still far below historical peaks. High-earners in the mid-1940s paid rates as high as 94% on their marginal incomes. Even those in the lowest bracket would have paid 20% or more during the 1940s, 50s, and 60s - double today's rates. U.S. corporate tax rates were also among the highest in the world until the 2017 tax cuts. So, while higher tax rates are not guaranteed, engaging in a financial plan that takes advantage of relatively lower rates today can help to protect investors from future tax uncertainty. The point here.... fund your Roth IRA while income tax rates are at lifetime lows for many of us. Dave Ramsey and Rachel Cruze talked about the debt ceiling news cycle last week on the show. You can listen to that conversation here. Dave's reaction was simple yet profound. "Yawn" is how he feels about the debt ceiling showdown. In his 62 years, this happened (as discussed above) many, many times, and even a few times we passed the debt ceiling deadline without a deal, and federal workers were sent home without pay for a few weeks until the politicians were done posturing. His advice is consistent as always, and on point with the team at Whitaker-Myers Wealth Managers, invest in the four categories of mutual funds and use funds that have had a very long track records (at least ten years). Simple, yet profound. The bottom line? The debt ceiling and federal debt must be resolved in the coming weeks. As with many political issues, it's important for investors to separate their concerns and not react with their hard-earned savings and investments. History shows that staying invested is the best approach to navigating drama in Washington.

It’s a rainy Sunday, and there’s not much to do – no swimming, no basketball with my son, and we just enjoyed a wonderful lunch at The Great Grill Off supporting The Christian Children’s Home of Ohio, so I’m doing what I normally do, when there’s not much to do, thinking about retirement! Specifically because of the weather – where to retire! My friends at Ramsey Solutions wrote an article about the top 14 cities to retire in February of this year. Their data was based on things you’d expect them to consider, such as cost of living, quality of life, tax rates, housing costs, quality of healthcare, and climate. Of course, Florida towns dominated the list, which is wonderful. However, the state with the second most cities that were deemed best to retire into was the great state of Texas. Now I have a heart for Texas because my wife was born there and spent part of her youth there. We make the trek back to Texas as a family every few years, and I’m regularly there visiting clients and potential clients since we are a SmartVestor in Dallas, Austin, and San Antonio. Part of our job as Financial Planners and Advisors is to help you make your money last throughout retirement while making the most effective use of those dollars. For some, this may mean relocating once your career has come to completion. For others, because their children have relocated to parts of the west coast, they’re looking for means to create a closer connection with their kids and grandkids. If this is you, Texas may be an appropriate option for you. Nearly 1,000 people are moving to Texas daily, making it an increasingly popular option for seniors looking to spend their golden years in a warm and welcoming environment. With a low cost of living, favorable tax laws, and abundant recreational activities, Texas has much to offer retirees. This article will explore some of the benefits of retiring in Texas. Low Cost of Living A favorite saying of mine is this: “Retirement is the basic math equation of income = expenses.” Therefore, you can continue to save more to be in a position to generate more income or you can reduce expenses therefore putting less stress on the income side of the equation. This is one reason Dave Ramsey and Ramsey Solution’s plan is crucial for the retiree because debt can be a large expense, especially one’s mortgage. To this point, one of the biggest draws of retiring in Texas is the low cost of living. Housing, groceries, and healthcare costs are all below the national average. According to a recent Fidelity study, Texas has a cost of living that is 8.5% below the national average, and the average healthcare costs for a retired couple (two lives) come right in line with the average of around $430,561 during their retired years. Business Insider wrote a 2021 article titled “The 15 Best States to Retire for a Low Cost of Living in Your Golden Years” and ranked Texas as number 5, only behind Florida, Minnesota, Nebraska, and Ohio. They noted that Texas is very popular with retirees and affordable, minus the fact that you’ll need to pay more to purchase your property in the state because of its popularity. Favorable Tax Laws Another advantage of retiring in Texas is the favorable tax laws. The state has no income tax, meaning retirees can keep more of their retirement income. Florida (along with others) is a state known for their lack of income tax and they, like Texas, typically dominate the retirement destination choices, simply because of their wise decision to avoid taxation. Additionally, Texas allows for a Homestead exemption on real estate taxes, as long as the property is your primary residence and you have turned 65 on January 1st of the year you’re applying for the exemption. The exemption allows for as much as a $40,000 reduction in the value of your home. Meaning if my home were appraised at $300,000 and I qualified for a $40,000 exemption, then you will pay school taxes on the home as if it was only worth $260,000. You can learn more here at the Comptroller of Texas’s website. Mild Climate Texas is known for its warm and mild climate, which is perfect for retirees who want to avoid harsh winters. The state has plenty of sunshine, and the weather is generally pleasant throughout the year. This makes it an ideal destination for seniors who want to spend time outdoors and enjoy recreational activities such as golfing, fishing, and hiking. In the book, What The Happiest Retirees Know (ask your Financial Advisor for a free copy today if you’re a client of Whitaker-Myers Wealth Managers and retired or within five years of retirement), the author states that the happiest retirees have around 3.5 core pursuits. The least happy only engage in 1.9 core pursuits. Many of these pursuits involve activity and are outdoors. The problem with many northern states is that your ability to chase those core pursuits is much harder during the brutal months of December, January, and February. Wide Range of Recreational Activities Texas is a large state with diverse recreational activities for seniors to enjoy. Whether you enjoy spending time in nature or prefer cultural activities, Texas has something for everyone. From the beaches of the Gulf Coast to the rolling hills of the Hill Country, there are plenty of opportunities to explore and experience the beauty of Texas. A personal favorite of my family is Canyon Lake which sits in the hill country outside of San Antonio. You’d do yourself a favor to plan some time exploring God’s country up there – beautiful. Excellent Healthcare Facilities Texas has a thriving healthcare industry, with many top-rated hospitals and medical centers throughout the state. This means that retirees have access to high-quality healthcare facilities and services. Additionally, many medical professionals are choosing to relocate to Texas, which ensures that there is a large pool of doctors and specialists available to provide care. According to Newsweek’s, Best Hospitals in the World List for 2022, Texas has what they consider to be three of the best hospitals in the world in Houston Methodist Hospital, Baylor University Hospital and UT Southwestern Medical Center. Other states with as many or more were California, Illinois, Massachusetts, New York, and Ohio. Friendly People Texas is known for its friendly people. It's a state where people are welcoming and hospitable, making it easy for retirees to make new friends and feel at home. Additionally, Texas is a diverse state, meaning retirees can meet people from all walks of life. One needs to look no further than my beautiful wife, who hails from the great state of Texas, as proof that they produce some of the friendliest people in the world. In conclusion, retiring in Texas offers many benefits for seniors. With a low cost of living, favorable tax laws, mild climate, a wide range of recreational activities, and excellent healthcare facilities, it's no wonder that more and more retirees are choosing Texas as their retirement destination. Perhaps you have flexibility in how and where you can retire. If you do, you wouldn’t be unwise to choose a state like Texas. If you're considering retiring in Texas, be sure to explore all the state has to offer and find the perfect place to call home.

Vacation Mode With the weather warming up and the sun shining more, we all long for that next vacation. Whether heading to the beach for some sun and sand or loading up the RV for a trip to a National Park, we know the season for trips is among us. No matter the location, if you’re planning somewhere fun to head to during the summer – here are some simple money tips to consider while you prepare for that next vacation! Money Saving Tips and Tricks Budget Even though this is a vacation, create a budget beforehand and stick to it! If you have a plan, you can stay accountable for your spending. It is far too easy to overspend without a plan going into a vacation, so let’s start this trip on track! Be in control of where and how you spend your money. And *bonus* if you plan your budget months in advance, you can put money aside each month leading up to your vacation in a sinking fund, helping you save and not worry about how the additional trip will affect that month’s budget. Research Before heading out of town…research, research, research. With fluctuating gas prices, sometimes flying can be the cheaper option. That is not always the case, but sometimes. The best way to see which way to travel for you is most cost-effective is by looking up your desired flight, then comparing the price against the cost it would take to drive. Don’t forget to include any interstate tolls or overnight stays you may need when estimating the cost of the drive. Packing Be sure to pack the essentials. Most likely, wherever you’re headed, purchasing products like sunscreen, toothpaste, beach towels, etc., will all be more expensive once you get there. Figure out all the essentials you can bring to save on those extra expenses. Something as simple as bringing snacks in the car or your own water bottle on the airplane is a great way to save a few bucks. Excursions, Activities, and Day Trips In your vacation budget, plan out any day trips, boat rides, tours, shows, or any other activities you may venture into while on vacation. Once again, researching and knowing these prices can help you plan and stick to your budget. Staycations Most importantly, figure out what you’re capable of. You are allowed to say no. If a staycation is what you can afford this year, that is OK! Don’t get sucked into the comparison trap of watching others head south when this isn’t the year for you to make that happen. Instead, find ways to be content with what you have and where you are. Remind yourself of your financial goals! There is no need to get in debt because you’re trying to keep up with the Joneses. A staycation can still be a fun experience and a great way to save money. See what is open around you – museums, nature trails, farmer’s markets, zoos, etc. Most towns have a local Facebook page where you can see what is happening and what’s new or ask for suggestions from people in your area. Use this opportunity as a chance to explore your town. If you need to relax, take a break, or a total halt from everything going on – grill some food up at home and do an activity you enjoy but haven’t had the time for recently. Maybe it’s the woodworking project you are in the middle of, getting back into painting, spending some time out in the garden, getting some fresh air while exercising, or digging into a house project you have been putting off. Enjoying your time stress-free Vacations are meant to be a reprieve from work and be less stressful. Preparing a budget and sticking to it during your trip will give you peace of mind to relax and enjoy whatever vacation you choose, knowing you won’t be straining your finances to make it work. So, whether you are headed out of town or staying home, enjoy your time off this travel season! If you’d like to work with one of our financial coaches on creating a budget and seeing how you can plan for yearly vacations, contact one of them today for a meeting to get started!

Understanding the Costs of Daily Operations In recognition of Small Business Month, Whitaker-Myers Wealth Managers is partnering with our CPA and fellow small business owner, Kage Rush, to discuss the thought process and steps needed to open and continue to operate a successful small business or side hustle. Our first article covered things to consider when starting a small business, and our second article covered the different types of entities to consider when creating your small business. This article will discuss how to understand your business from a financial perspective better and how this understanding can help you in the day-to-day operations of your business. Reviewing Your Finances: The Reactive Approach Once the small business is up and running, entrepreneurs can become swamped with day-to-day operations and lose sight of their business’s financial side/health. Most often, entrepreneurs only look at the financials of their business for the following reasons: Filing their personal taxes during tax time Wanting to purchase a significant asset or employee hire Economic downturn has caused a cash flow issue in the business For the above reasons, entrepreneurs usually look at their financials from a reactive approach. This means the entrepreneur is looking at their financials because it’s tax season and there is a large tax due on their return, equipment breaks down in the business and needs to be replaced, or a sudden market change has occurred and caused an unplanned cash flow shortage in the business. The issues with using a reactive approach to the financial side of the business can be the following: We can’t go back in time to fix errors or spend money This approach can stunt the growth of your business You could lose opportunities to grow your business You could face unnecessary economic hardship Reviewing Your Finances: The Proactive Approach Successful entrepreneurs and business owners mostly approach the financial side of their businesses proactively. This means the entrepreneur is looking at their financials to plan for events to occur in the future, anticipate tax bills associated with their business profits, and try to factor current and future market conditions into their day-to-day business operations and long-term planning. The first step to taking a proactive approach to your financials is clearly understanding how your revenue/expenses are generated. Here are some questions to ask yourself about your revenue and expenses: How long does it take to get paid for services provided? For example, if it takes 30 days to receive payment for services provided to a client, you can expect services provided in February to be paid in March. When are my most significant expenses due, and what is the frequency of those expenses? For most owners, this could be payroll to employees paid monthly, bi-weekly, or twice a month. What causes a lag between services provided and payment received for services? How do you request payment for services provided? Do you request payment by just cash or check? Or do you provide ACH and credit card options? Do you bill for your services in advance, as the services are performed, or after the service has been completed? Completing step one is critical to understanding and growing your business because it can guide a small business owner to make decisions to improve their business model to collect payment faster from clients, offer additional methods of payment to improve cash flow, and adequately plan for expenses so you aren’t forced into a situation where cash flow is insufficient to cover the costs. Once you understand your revenue/expenses, you can create financial statements to help analyze your performance and strategize how to grow your business. Tools to use Two common financial statements used in a small business are a balance sheet and an income statement. A balance sheet looks at your assets (cash, accounts receivable, inventory, etc.) and liabilities and equity (accounts payable, loans, mortgages, net income, etc.) at a point in time (ex., May 31, 2023). An income statement reviews your revenue and expenses over a period of time (ex., May 1 to May 31, 2023). Both statements are suitable for evaluating your past performance and can be compared to a prior year, but they do not compare you to your current expectations. A third financial statement that can be used in your small business is a budget vs. actual analysis. An example of a budget vs. actual analysis statement would take your actual performance from May 1 to May 31, 2023, and compare that to what you budgeted for that same period. This can be useful for owners to know if the business is meeting their expectations set at the start of the fiscal year and if future expectations need to be adjusted based on actual performance. The keys to having a reasonable budget are the following: Your budget is reasonable based on market expectations, knowledge of the business, and past experience Your goals for the business are aligned with the expectations for the budget There are clear indicators for your budget that can guide success or failure Your budget is not static and can be adjusted as factors change, whether from external or internal sources Your budget has input from all sources of your company You have created a plan to implement your budget for your staff Small Businesses Impact I wanted to end this article with an interesting fact. According to the US Chamber of Commerce, there are 33.2 million small businesses in America (500 employees or fewer), which accounts for 99.9% of all U.S. businesses. Hopefully, this statistic opens your eyes to how much small businesses impact our economy and inspire you to join in with your own creative business to be successful. My hope with this three-part series is that these articles helped give you ways to understand your business better and valuable insight into starting, growing, and prospering with your own business one day. If you are interested in starting your own small business and have accounting questions or need accounting services, please contact your financial advisor or visit our tax website to schedule an appointment.

The Right Setup In recognition of Small Business Month, Whitaker-Myers Wealth Managers is partnering with our CPA and fellow small business owner, Kage Rush, to discuss the thought process and steps needed to open and continue to operate a successful small business or side hustle. Our first article covered things to consider when starting a small business. This article will discuss the different types of entities to consider when creating your small business, the tax implications and reporting of each entity, and what to consider when choosing an entity. What option is best for you After formulating a business plan to make your small business dream a reality, an owner is now tasked with deciding how to set up their business for legal and tax purposes. This decision can significantly impact your personal tax return and possibly your business partner(s) tax situation. Below is a list of the possible options for setting up your business and the federal tax reporting associated with each. Sole Proprietorship/Single Member LLC This is most often the setup for small businesses/side hustles or independent contractors (also known as Form 1099 employees). This business entity’s activity is most commonly reported on a Form 1040 IRS Schedule C. If the activity is related to rental real estate or royalties, the income could be reported on a Form 1040 IRS Schedule E. The due date is April 15th, which is reported with your personal tax return. A Sole Proprietorship is the default designation for a business with only one owner. You can file the legal forms for an LLC with an attorney, but for tax purposes, it is treated and reported the same. 92.35% of Net Income (Revenue – Allowed Expenses/Deductions) is subject to Self-Employment Tax (SE Tax or FICA Tax) of 15.3% tax (12.4% is for Social Security up to earnings of $160,200 for Tax Year 2023 and 2.9% for Medicare Tax). The Net Income is also subject to standard income tax (W-2 wages). This can lead to unexpected tax bills for new owners who are used to having FICA taxes taken out automatically by their employer. A sole proprietorship is easy to set up but can come with higher tax bills if not the owner is not saving back profits to pay estimated taxes. Partnership/Multi-Member LLC This is when two or more owners have a capital stake in the business. This business entity’s activity is reported on Form 1065 US Partnership Return of Income. The due date for the tax return is March 15th. A partnership does not pay taxes on Form 1065. Instead, each owner is reported their share of the income(loss) of the business on a Schedule K-1, and the tax liability is paid at each respective owner’s tax rate. Owners are unable to pay themselves normal W-2 wages. Instead, payments for work done on behalf of the business can be treated as Guaranteed Payments and are subject to the SE Tax on the owner(s) personal return. A partnership is required to have a signed operating agreement that dictates the breakdown of ownership in the business, how profits/(losses) are split amongst owners, what are the responsibilities of the owners, etc. A partnership can be helpful for owners who want to invest in a business or idea without borrowing from a bank or third party to fund the business. Potential downsides of a partnership could be the higher start-up costs required to start the business and the more complex accounting standards that are required to be followed. S-Corporation This entity can have only one owner but cannot exceed 100 owners in the business. There are also further limitations on who can be an owner in an S-Corporation. This business entity’s activity is reported on Form 1120-S. The due date for the tax return is March 15th. A s-corporation does not pay taxes on the Form 1120-S. Instead, each owner is reported their share of the income(loss) of the business on a Schedule K-1, and the tax liability is paid at each respective owner’s tax rate. Owners that are material participants in the business must pay themselves a reasonable W-2 salary. This is required because earnings reported on the Schedule K-1 from a S-Corporation are not subject to the SE Tax like a sole proprietorship is. S-Corporations are only allowed to have one type of stock. S-Corporations are required to have an operating agreement in place and require income(loss) and distributions to be pro-rata in accordance with the owner’s ownership percentage in the company. Single Member LLCs or Partnership LLCs can elect to be taxed as an S-Corporation by filing Form 2523, Election by a Small Business Corporation, if they meet the qualifications required for an S-corporation. S-Corporations can be great options for the owner(s) that want to pay themselves a salary from their business and can generate some tax savings on their personal return compared to if that entity was a Sole Proprietorship. S-Corporations can also be more strenuous to set up and are subject to more complex accounting standards than a sole proprietorship. C-Corporation This entity is the standard corporation you hear about in the news (Apple, Walmart, etc.) This business entity’s activity is reported on Form 1120 and is due annually by April 15th. A C-Corporation does pay taxes at the Federal level, unlike an S-Corporation. A C-Corporation can face double taxation if income is distributed to its owners as a dividend. Unlike an S-Corp, there is no limit on the number or type of owners that can invest in a C-Corporation. C-Corporations can have multiple levels/types of stock. C- Corporations can be great options if you bring in many different types of owners to crowdfund your business. The possibility of double taxation can be a downfall for C-Corporations and can be a turn-off for owners. Choosing the right option The business entity you decide to form must match your expectations for the business. Each entity has its positives and negatives regarding tax advantages, ease of setup, and accounting standards required to be followed. Our Whitaker-Myers Tax Advisors, Ltd. team can help guide you on the various entities and give you the tools to decide when setting up your small business. I hope this article helped explain the different options available to small business owners when forming your own business. The last article (Part III) in the small business series will focus on the financial side of the day-to-day business and how understanding your business’s finances can help guide you to grow and prosper in good and bad economic times. If you are interested in starting your own small business and have accounting questions or need accounting services, please get in touch with your financial advisor or visit our tax website to schedule an appointment.

Fresh Seasonal Choices Did you know shopping seasonally can save you money? Especially when buying produce! If you purchase what is currently in season, it will be cheaper than those out-of-season options. This is why buying strawberries in the middle of winter can seem astronomical, especially for not-great quality – simply put, it just isn’t the season for them yet! Venture out of your comfort zone and see what’s in season! With spring in progress and the “official” kick-off to summer starting this Memorial Day Weekend, a surplus of ripe, fresh fruit will be waiting for you at the grocery store. Be sure to look at prices the next time you go grocery shopping. It can benefit your budget to tailor your recipes around what is in season! You may surprise yourself with that delicious recipe you make in the fall with acorn squash and be equally satisfied with the fresh tomatoes for a Caprese salad come summer. Fresh Fruit If you haven’t noticed, pineapples are flooding the shelves right now, and peaches will be close behind! If you’re looking for a refreshing salsa to share with some friends or a topping for that grilled chicken or salmon, look no further. This pineapple peach salsa is sweet, with a tiny kick from the red onion. If you’re a heat lover and feeling bold, I suggest adding some chopped jalapeno to take it one notch higher. Are you having a taco night soon? Add this salsa to some tacos for a sweet, light addition. I guarantee you'll be doubling the batch the next time you make it! Pineapple Peach Salsa: Serving Size: 5-6 servings 1 Pineapple 4 Peaches 1 Red Onion ½ Cup Fresh Chopped Cilantro ½ Lime Peel and core pineapple, then finely dice Pit and finely dice peaches Finely dice red onion Combine pineapple, peaches, red onion, and cilantro in a bowl. Be sure to include any access juices from cutting the fruit! Squeeze some fresh lime juice on top and serve! Serve over grilled chicken or salmon as a topping on tacos, or enjoy with chips!

The impacts of life insurance A huge part of financial security is life insurance. Although it can often feel like another expense leaving your pocket each month, its impact on families is life-altering. A bad situation can become financial security through vehicles like term life insurance. The purpose of this article is to describe how something as simple as life insurance can impact a family for generations. Generation I Let’s say your parents are the first generation to have life insurance. Your mom and dad were very financially responsible. They each had $500,000 policies on each other, bought in their late forties, for 30-year terms. Your dad made it to 76, and his death benefit was $500,000 to your mom. Your mom invests that $500,000, changes the beneficiary from her husband to you, and makes you her beneficiary for her investment account as well. She dies a couple of years later, with one year before the term expires, and the $500,000 death benefit goes to you - Tax-free. Because she invested the other $500,000 and named you as the beneficiary, that $500,000 grew to $550,000, and with the step-up in basis, there are no taxes that you owe on that, and your basis in the investment account is $550,000 + $500,000 = $1,050,000. Therefore, because your parents bought $500,000 in coverage, and invested it between deaths, the beneficiary, which is you, is now over a millionaire in their 50’s. Generation II You are generation II. Let’s say you took your parent's advice and got life insurance when you were young. It is cheaper, you are healthier, and the payments do not change. You buy $1,500,000 in 30-year coverage for you and your spouse. You are paying very little for a good amount of coverage. This is very common. Towards the end of your and your spouse 30- year terms is when your parents pass away. You are glad to have the money as a nest egg in retirement and hope to be able to do the same for your kids. So, you both buy another round of 30-year terms at the same coverage level since your old term coverage expired. Although far more expensive now, you are in a place where the death benefit is more important for your kids than the money you both have now. You both live long, happy lives, but ultimately, like all of us, eventually, you both die. Not only will your children receive the $1,050,000 that grew for 30 years (not unreasonable to assume close to $4,000,000 now), but they will also receive the $3,000,000 in combined death benefits. In their 50s, each of your kids could now have a nest egg of well over $1,000,000, obviously depending on the number of kids you have. You can see where this is going. Generation III So far, the third generation is the greatest benefactor of their grandparents' and parents' decisions. Because of these decisions, they may start businesses, invest in start-ups, or be extraordinarily charitable. Life insurance was created to open all doors for the future and let them choose the path. With higher net worth people, something to consider is creating a trust from the insurance, otherwise known as an Irrevocable Life Insurance Trust (ILIT). This can help stipulate the terms and conditions of how the money will be available to its heirs. As the third generation, they are responsible for keeping this exponential growth of wealth alive. Not only can wealth be generational, but the only way for it to happen is for advice to be generational. That all starts with speaking with an advisor. The power of speaking with your advisor I would be happy to discuss your questions about life insurance and see what coverage would make sense for your specific situation. Please feel free to reach out to me with any questions. Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures. Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

Who we are: The Whitaker-Myers Group Thinking about all the services you need to ensure your financial house is in order can be overwhelming. You often hear from us about what you can expect from us at Whitaker-Myers Wealth Managers; however, we wanted to highlight the different divisions within Whitaker-Myers. By doing this, we hope to relieve a little stress for you so you don’t have to make multiple phone calls for these various items. Whitaker-Myers Group is uniquely equipped to help with many areas of your financial life, including Insurance, Benefits, Tax Preparation, Financial Coaching, Estate Planning, and of course, Wealth Management. I usually like to sum this up by saying, “no matter what you are looking for financially, one of our professionals at Whitaker-Myers can likely help!” Financial Coaches at Whitaker-Myers Wealth Managers If you follow Dave Ramsey, you have likely heard of his 7 baby steps. The Wealth Management division of Whitaker-Myers can help you no matter your baby step. Our Financial Coaching team helps clients walk through baby steps 1-3. This includes saving money, paying off debt, building a budget you feel confident in, creating a margin between your income and your expenses, and overall accountability and encouragement along the way. Think about a Financial Coach as you would a Fitness Coach, but one that won’t make you do jumping jacks. I say this because relating a Financial Coach to what a Fitness Coach does usually helps people make the connection if they have not heard of a Financial Coach before. You don’t hire a Fitness Coach to tell you that you should start eating healthy and working out. You already know that those are things you should be doing. But having someone keep you accountable and provide helpful tips along the way is well worth it. The same is true for a Financial Coach; they will guide you in achieving the financial goals that you are working towards. Financial Advisors at Whitaker-Myers Wealth Managers The Financial Advisors at Whitaker-Myers Wealth Managers are here to help you through baby steps 4-7 and beyond. We are a team of Ramsey Solutions’ SmartVestor Pros which means that they will provide you with advice consistent with what you hear on the Ramsey Show. We are one of the few National SmartVestor Pros, which means Dave Ramsey and his team have trusted us to help their fans across the United States. Many ask, “Am I going to be okay in retirement?” or “Am I on track to meet my financial goals?” Our Financial Advisors would be happy to help you discover the answer to those questions by building your financial plan. One thing that makes us unique is that our Advisors have the ability to manage the investments inside of your Employer-sponsored Retirement Plan (IE: 401(k)) while you are still employed. When you work with our Advisors, they will not only help you invest for retirement but will also ask you the appropriate questions to make recommendations that will help you be financially healthy overall. They will help you with baby steps 4-7 and beyond because even though not listed in the baby steps, having life insurance or an estate plan (will or trust) is something we all likely need. These are also areas they can help guide and share information on when making decisions. Whitaker-Myers Tax Advisors Having a CPA on our team means that when your investment questions flow over into tax questions (which happens a lot), we can call on Whitaker-Myers Tax Advisors to help provide you with sound advice and recommendations. Many of our Whitaker-Myers Wealth Managers clients use Whitaker-Myers Tax Advisors to prepare their taxes. It works well since they can pull your tax documents for you in relation to your investment accounts. Whitaker-Myers Insurance Whitaker-Myers Insurance is an Independent Insurance Agency that can help you find the best rate for your home, auto, or commercial lines policy by quoting several different insurance carriers. One of Dave Ramsey’s tips for saving money is to get a quote for your home and auto insurance through an Independent Insurance Agent, especially if it has been a while since you have had a quote done. Insurance can be confusing, so it is nice to have a trusted professional helping you. Whitaker-Myers Benefits The professionals that work on the Benefits side of Whitaker-Myers can help you with Health Insurance, Medicare, and Long-Term Care insurance. If you are self-employed, in between jobs, or need to sign up for Medicare, you will likely find it helpful to talk to someone that can assist you in finding the insurance plan that works best for your specific needs. Mission, Vision, and Core Values Our team at Whitaker-Myers Wealth Managers live and work by our mission, vision, and 7 core values. Having the heart of a teacher is listed as our first core value on purpose because we are passionate about educating our clients and helping them to feel confident about their current and future finances. To better understand who we are and what we value, please see our recent video sharing who we are as a company. If you have a financial question that you have been looking to answer or have had something on the to-do list for a while now, we would love the opportunity to work with you. Feel free to schedule a meeting with one of our Financial Advisors or Financial Coaches today. Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures. Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner. Whitaker-Myers Wealth Managers is not giving tax, legal or accounting advice, consult a professional tax or legal representative if needed.