In January of 2023, we say the markets take a positive turn with each of the three major indexes we track and discuss each week on our "What We Learned in the Markets This Week" video series returning 6.18% (S&P 500), 9.00% (MSCI EAFE) and 9.82% (Russell 2000) respectively. Then in February, it was a return to the 2022 narrative as good news equaled bad news, and the same indexes took a tumble of -3.24% (Russell 2000), -3.62% (S&P 500), and -3.93% (MSCI EAFE). Therefore with the February market reaction for investors, it may feel like déjà vu all over again as inflation and the Fed dominate market headlines on a day-to-day basis. After all, the numerous market swings last year were driven by ever-changing expectations around the Fed - both when investors believed the Fed was doing too little, and when they thought the Fed was tightening too much. With markets once again concerned about the direction of the Fed, what do long-term investors need to know about how the story is evolving? Goods inflation has improved but services are still a problem Only a month ago, at the Fed's latest press conference, FOMC Chairman Jay Powell stated that "the disinflationary process has begun." This is undeniably true across many parts of the economy as inflation has eased. However, recent data raise new questions around how quickly inflation is improving and whether the Fed will need to act more forcefully in the coming months. Not surprisingly, this has spooked markets. The challenge facing markets and the Fed is simple: textbook economic theory says that inflation is the result of an overheating economy. Thus, in order to beat inflation, the Fed may need to slow the economy to a crawl or even cause a recession as it did in the early 1980s. While it's unclear whether a recession will occur in 2023, most forecasts suggest that the economy will be flat this year, at best. This is the case despite a historically strong job market with unemployment of only 3.4%. Thus, the conundrum is whether the Fed will need to break the job market to beat inflation. There are many ways economists slice and dice inflation data to best understand the underlying trends. One common way is to compare overall inflation, also known as "headline" inflation, to inflation without food and energy prices, also known as "core" inflation. This is not because food and energy are unimportant to consumers but because these prices tend to bounce around as commodity prices fluctuate, making it difficult to understand the trajectory of inflation. Recent data show that headline inflation has been decelerating - hence, Powell's disinflationary comment - but core inflation remains stubbornly high. However, another useful way to break down prices is to consider goods versus services within core inflation. Goods are physical, tangible items that consumers buy including new and used vehicles, apparel, home appliances, and more. Services are everything else - rent, transportation services, medical care, etc. Goods and services are both important to consumers but can be driven by different factors. Many categories of consumer goods and services have improved In many ways, this breakdown more closely aligns with what consumers have experienced over the past few years. Early in the pandemic, goods prices skyrocketed due to shortages of everything from toilet paper to computer chips. Today, these prices have improved with core goods inflation running at only 1.4% year-over-year. Used vehicles, for instance, have experienced a price decline of 11.6% over the past year, as shown in the accompanying chart. The prices of core services, on the other hand, climbed 7.2% in January compared to the prior year. It's for this reason that economists worry about the red hot labor market, including wages that are increasing 4.3% year-over-year for all workers and 5.1% for hourly workers. Higher wages that translate into more spending on services could create inflationary pressures. Retail sales, for instance, surged in January after slowing late last year. The Fed is now expected to raise rates higher this year This takes us back to the conundrum mentioned above. While headline inflation is easing, core inflation is still far beyond the Fed's target due to the prices of services. Standard economic theory suggests that this is driven largely by a strong labor market. Thus, markets are concerned that the Fed may have to do more. Currently, market-based expectations are for the fed funds rate to rise to 5.25% or higher by mid-year. One item to note, as discussed in this week's video, is the fact that over the last two weeks, the odds of a higher rate hike than anticipated at the March 22nd meeting have risen from 0% to nearly 25%. If a 0.50% rate hike were to happen (current estimates are for only a 0.25% hike), this would be the first time in recent history that the Fed has gone from slowing down increases (or outright stopping them) to ramping them back up. The market's reaction to this, considering its lack of historical precedence, would be interesting to watch. For long-term investors, it's important to maintain perspective in this market environment. After all, the stock market has fluctuated wildly over the past year based on Fed expectations, with swings in both directions as investors and economists evaluate the constant flow of data. Inflation has been difficult to predict accurately, and both sides of the argument have been wrong at one time or another. Throughout all this, the S&P 500 has risen 14% since last October, and the bond market has done better this year as interest rates have been somewhat more stable. The bottom line? Headline inflation has improved since it peaked last June but core inflation, and services in particular, remain a challenge. The Fed will need to walk the line between fighting inflation and maintaining economic growth. Long-term investors should stay the course and not react to the inevitable market swings. Be like the tortoise, be consistent in every area of your life, including investing. Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

As you can imagine, I’ve heard them all. Every story from everyone’s “in the know” uncle or someone who watched a Tucker Carlson special (by the way, I got nothing but love for Tucker other than his sensationalizing he MUST do for ratings) or the horror story from their neighbor. What specific story am I referencing? Stock Market projections. I can bet that at least once a day, I will hear someone tell me why the stock market will crash and never return. Yikes! Imagine my fear, considering mine and those of the 20 members of our team, depends on the growth of stocks over time. The fruit of the spirit is love, joy, peace, forbearance, kindness, goodness, faithfulness, gentleness, self-control, and fear. Whoops, wait a minute, one of those doesn’t belong. Fear or anxiety is often irrational because it’s based on a lack of knowledge; therefore, let’s dig into what the stock market is, how it works, and why it’s been one of the best wealth-building tools the world has ever seen! The stock market is a powerful tool for building wealth, and it has transformed the financial landscape of the world. It allows individuals to invest in companies and participate in their growth, providing an opportunity to increase wealth over time. At its core, the stock market is a platform for buying and selling shares in publicly traded companies. When an individual buys a share of a company, they become a partial owner of that company, and their investment increases or decreases in value based on the performance of the company. If the company performs well, the stock price will increase, and investors will make a profit. Conversely, if the company performs poorly, the stock price will decrease, and investors will lose money. What causes a stock to perform over time? There are four essential components to what causes a stock to go up or down over time. Earnings growth is one of the primary factors that can cause a stock to go up in value. When a company reports higher earnings, investors tend to be more optimistic about the future prospects of the company. This can lead to increased demand for the company's stock, which drives up the price. Well, John-Mark, my uncle said corporate earnings are going to fall off a cliff and stay there forever, shouldn’t I be worried? That has never happened. What is their rationale for that? Usually, it’s something political, and let me remind you, while I most likely adhere to a similar political ideology as you do, considering I have a total Biblical worldview with a belief in the complete inerrancy of scripture, it does the other party no good to crash the economy. Why so that China can be the world’s superpower and the one thing they long for power – they lose! Of course, not; they, as you do, want the economy to grow, and that’s why regardless of the political party, the stock market has delivered similar returns for Democrat and Republican administrations. Take a look at this chart right here – it’ shows the Earnings Per Share growth of the S&P 500 going back to 2007. A few political parties in there, and you’ll notice it has consistently gone up and to the right. Not constant because there is no perfection in this world, but there has been consistency. Wonder why the interest rate increases we saw last year, at a historical breakneck pace, were destructive to the stock market's value last year? If interest rates are low, investors may be more inclined to invest in stocks because they are the only game in town instead of bonds, leading to increased demand for stocks and driving up prices. However, when rates go up and normalize as they have today, you can purchase the Schwab Money Market with a current yield of 4.5%, short-term Treasury Bonds are paying in the high 4%, and brokered bank CDs (which are purchased through Advisors like Whitaker-Myers Wealth Managers) are paying slightly over 5%. Those levels of rates attract money out of stocks for a while, creating less demand for stocks, especially for companies without a compelling growth story. Financial Advisor, Jake Buckwalter just recently wrote an article about what to do with excess cash right now. Investor sentiment can also play a role in the value of a stock. Suppose investors are generally optimistic about the prospects of a company. In that case, they may be more willing to invest in its stock, even if the company's financial performance is not currently strong. This can create a "self-fulfilling prophecy" of sorts, where the positive sentiment leads to increased demand for the stock, driving up its price. Finally, supply and demand dynamics can impact the value of a stock. If a company has a limited number of shares available for purchase, and there is high demand for those shares, the price will increase as investors compete to buy them. History Is on Your Side and This Time ISN’T Different Over time, the stock market has proven to be one of history's most effective wealth-building tools. One of the key advantages of the stock market is its ability to generate long-term returns. Take a look at this chart from Prudential. What you’ll see is that over the last thirty years, which has included some significant drops (2001,2002, 2008, 2020, 2022), we’ve still returned 9.65%, with 80% of the years producing a positive return and an average gain of 18.34% and 20% of the years negative with an average loss of -17.10%. Ever wonder what it does daily? It’s 53% of trading days are positive, and 47% of trading days are negative. While the stock market has provided the necessary growth long term, the daily grind of it can be stressful, hence why a good Advisor will tell their clients not to pay attention to daily, weekly or even monthly movements and invest for their time horizon and risk tolerance. Another advantage of the stock market is its accessibility. Unlike other forms of investing, such as real estate or private equity, the stock market is open to anyone with a brokerage account and some disposable income. This means that individuals of all income levels have the opportunity to invest in the stock market and participate in its growth. 100 years ago, if you wanted to grow your wealth, you had significantly fewer options. Heavens, even 50 years ago, it was so expensive to invest that few people did it. However, this is one reason we appreciate Charles Schwab. If you read his autobiography, as I have, you’ll learn that he was a man on a mission to open investing to everyone. We can proudly say today the mission is accomplished because anyone with the will to improve their lives can seek out a good Advisor like, Whitaker-Myers Wealth Managers, who will help educate them to a blessed and fulfilled future. Additionally, the stock market provides investors with a diverse range of investment opportunities. There are thousands of publicly traded companies to choose from, ranging from small startups to large multinational corporations. This means that investors can diversify their portfolios and spread their risk across a range of different companies and sectors. Our friend Dave Ramsey recommends investors consider investing into four basic categories: Growth, Growth & Income, Aggressive Growth, and International. Financial Advisor Logan Doup, has written our most popular article of all time, Understanding Dave Ramsey's Four Categories, which you can read here. Overall, the stock market is a powerful tool for building wealth and has the potential to provide significant returns over the long term. It has democratized the world of investing, providing individuals of all income levels with the opportunity to participate in the growth of some of the world's most successful companies. However, it is the one thing that you must not allow emotions to control. When there is pain, you must not succumb to the pain and sell your investments. When there is gain, you must not get greedy and invest at the expense of other financial priorities such as paying down your home. That’s why we highly recommend clients turn off the news media and listen to our weekly “What We Learned in the Markets This Week Video” along with Ramsey Solutions suite of podcasts and media available for free wherever you consume content. 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.

"This part of the crisis is over. Everyone should just take a deep breath." - JP Morgan Chief Executive Jamie Dimon On the morning of May 1, it was announced that First Republic Bank had been taken over by the FDIC and sold to JPMorgan Chase. Eleven major banks had previously infused First Republic with $30 billion in deposits to stabilize the bank after the failures of Silicon Valley Bank, Signature Bank, and Credit Suisse. This process found new urgency over the past week when First Republic revealed that uninsured deposits at the bank fell $100 billion in the first quarter. Thus, this deal has been in the making for several days, with a few large banks bidding on First Republic's deposits and assets. With ongoing banking turmoil creating market and economic uncertainty, how can long-term investors navigate the months ahead? Three FDIC-insured banks have now failed with a total of $368 billion in deposits The orderly sale of First Republic is good news, but its failure mirrors the other bank failures that occurred almost two months prior. These banks grew aggressively by pursuing deposits that proved to be unstable when the economy slowed, the tech sector faltered, and cryptocurrencies plummeted. While this alone would create stress for any bank, rising interest rates also resulted in unrealized losses in their bond portfolios, which normally don't need to be marked-to-market if they are expected to be held until maturity. However, falling deposits forced these banks to sell bonds and realize these losses. Thus, this banking crisis is the result of both a failure of risk management specific to these banks and the broader tightening of financial conditions due in large part to Fed rate hikes. However, banking crises are not new, and many of the biggest market shocks since the late 19th century have been due to tremors in the financial system. The Panic of 1873, for example, occurred when one of the largest banks, Jay Cooke & Company, failed due to bad bets on railroads. Others include the Panic of 1907, the 1929 crash, the Savings and Loan crises throughout the 1980s and 1990s, the 2008 global financial crisis, and many other international crises. What all of these historical episodes have in common is the availability of money, the expansion of credit, and the eventual tightening of financial conditions. Like a sugar rush, a rapid increase in money and credit through the global financial system can drive asset bubbles and risk-taking in a particular market or across a whole country. Sooner or later, however, there is a sugar crash as returns peter out, sentiment shifts, and conditions tighten. The banking crisis has been concentrated in specific regional banks This is sometimes referred to as the "Minsky Model," named after the 20th century economist Hyman Minsky. In short, as credit continues to expand, investors, businesses and individuals are willing to take on more and more risk. During the height of these market manias, investment returns feel easy to come by, leading to overconfidence and a fear of missing out. While this may be prudent at first, successes and gains motivate investors to take on more and more leverage until it becomes unsustainable (think the dot-com and housing bubbles). This ends when there is a "Minsky Moment" whereby some events shake investor confidence, causing it to all come crashing down. While the details naturally differ between episodes, this is what has occurred since mid-2020. More recently, this has ended with the failure of crypto companies, layoffs at large tech companies, and more. Thus, the question today is whether there will be broader economic instability or if the situation is contained. After all, there are many surface-level parallels to 2008 which are raising investor concerns, including JPMorgan Chase's acquisition of Bear Stearns in March 2008. As the nation's largest bank, it's not surprising that it would play a role in any financial crisis. The Fed had also raised rates prior to 2008 and the economy had appeared to be in good shape based on growth figures. However, while the phrase "this time is different" can be dangerous, there are many distinctions between now and the situation fifteen years ago. Perhaps the most important is the amount of leverage in the system. The global financial crisis of 2008 wasn't just about the housing bubble - the main issue was that banks and other institutions held significant leverage in the form of derivatives which magnified the impact of the housing market collapse. This means that even small upticks in default rates and bad loans were enough to cause large financial institutions to fail. If falling bond prices are seen as a parallel to falling home prices, there would need to be layers upon layers of leverage on these bonds to truly mirror 2008. This does not seem to be the case. The economy grew at a slower pace in the first quarter Additionally, interest rates have fallen from their recent peaks which will help shore up bond portfolios. The 5-year Treasury yield, which roughly aligns with the average bond maturity across bank portfolios, has declined from 4% at the end of 2022 to 3.6% today. Ironically, this is in large part because of the banking crisis which was worsened by rising rates. What's more, the Fed is only expected to raise rates once more this cycle, possibly at its May meeting, before pausing and assessing the situation. This is helped by improving headline inflation numbers. Finally, the broader economy continues to be stable, even if it does appear to be slowing. Last week's GDP report showed that the economy grew by 1.1% in the first quarter. This was slower than expected but was primarily due to a decline in inventories among businesses which reduced growth by 2.26 percentage points, a factor that could reverse later this year. Fortunately, this was offset by strong consumption spending which added 2.48 percentage points. Overall, a slowing economy is what the Fed expects to see in a tighter rate environment. To hear our weekly commentary on the markets, economy and so much more, please subscribe to our video series, "What We Learned in the Markets" this week, by clicking here. The bottom line? Long-term investors should continue to maintain perspective in light of the ongoing banking crisis. A combination of company-specific factors as well as the broad macroeconomic environment led to challenging conditions for these particular banks. However, parallels to 2008 and other historical episodes are premature. During times of market uncertainty, the best approach is to stay diversified and not overreact to news headlines. Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

How do Mutual Funds and ETFs Differ? When it comes to investing in equities, it’s generally most efficient to buy mutual funds or ETFs (Exchange-Traded Funds), which are both “baskets of goods.” You can purchase equity in a variety of companies by simply purchasing shares of funds that spread your assets across those companies. This saves you from buying individual stocks and worrying about when to trade from those positions in favor of other companies. Mutual Funds and ETFs at their core, are similar, and generally serve the same purpose, but they have some distinct differences. In this article, we will look at those differences and highlight some critical features of each. How Are They Managed? A key difference between mutual funds and ETFs is that mutual funds can, and often are, actively managed by a fund manager. The performance of the fund is closely tied to the fund manager. If they have been managing the fund for an extended period, with a good track record, then the performance is a valuable tool for evaluating the fund. However, if the fund manager has left or been replaced, knowing that the fund’s track record should not be counted upon for reliable evaluation is important. On the other hand, ETFs are generally more process-oriented in their management style. They are passively managed and structured to compete with the performance of a particular index. Some mutual funds fit this description as well. How Are They Traded? Another critical difference between these two types of funds is how they are traded. Orders for mutual funds are executed once per day, with the price based on the Net Asset Value (NAV) calculated once daily. Each investor pays the same price as all other investors buying that same fund on that same day. As a result, you don’t see a price fluctuation intraday. ETFs trade like individual stocks. They are bought and sold on an exchange, reflecting lots of price fluctuation throughout the trading day. Because the price fluctuates throughout the day, your cost will likely differ from another investor buying the same fund on the same day. Are there minimum investments? Mutual funds do not have to be purchased in whole shares, making them a good option for people just starting to invest. ETFs do not require a minimum initial investment, though they can only be bought in whole share form at their market price. Because of this, buying ETFs for people who are just beginning to invest from zero can be tricky because you may not have enough capital to buy a full share. What are the costs? Mutual funds can be bought without trading commissions. But, besides their operating costs, they can carry other fees like sales loads or short-term redemption fees. ETFs have a bid/ask price spread and a premium/discount to the NAV. The price you pay for an ETF may differ from the value of the ETFs underlying holdings. ETFs generally have a cheaper expense ratio than mutual funds. These costs are baked into the price you pay for the fund and won’t be tacked on to your management fee. Also, the expense ratio is taken into account when looking at the performance of the fund. Which is right for me? The answer really depends on your situation and what accounts you have. As stated above, each has certain advantages, depending on how much money you’re investing or how long you plan to stay in each fund. Discussing your needs with a financial advisor to help you determine the right fit for your investment portfolio is important. Schedule a meeting with one of our advisors today if you’d like to learn more. 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.

THE BENEFITS OF LONG-TERM DISABILITY INSURANCE Long-term disability insurance is a type of insurance that provides financial protection to individuals in the event of an illness or injury that results in a long-term disability. This insurance is designed to replace a portion of the insured person’s income, typically up to 60% or 70%, if they cannot work for an extended period. While many people believe that they will never experience a long-term disability, the reality is that it can happen to anyone at any time. In fact, according to the Council for Disability Awareness, one in four 20-year-olds will experience a disability before retirement age. This means that it is essential for individuals to consider the importance of long-term disability insurance. The Benefits of Long-Term Disability Insurance Income Protection The most significant benefit of long-term disability insurance is that it provides income protection. If an individual cannot work due to a long-term disability, the insurance policy will give a portion of their income to help them cover their expenses. Dave Ramsey tells the story of a man who approached him at a book signing and thanked him for his general advice to purchase long-term disability insurance. He was making about $100,000 at his place of employment, had a family, and the unthinkable happened. Luckily, he had long-term disability insurance in place so that he and his family could enjoy an annual income of $65,000 while he was not able to work. Peace of Mind Knowing that you have long-term disability insurance can provide peace of mind. If something were to happen, individuals could rest assured that they have financial protection. Employer Benefits Many employers offer long-term disability insurance as part of their employee benefits package. This means that employees can take advantage of this coverage at a lower cost than if they were to purchase it on their own. The Risks of Not Having Long-Term Care Disability Insurance Financial Instability Without long-term disability insurance, individuals may struggle to make ends meet if they cannot work due to a long-term disability. This can lead to financial instability, making paying bills and covering expenses challenging. Increased Debt Without long-term disability insurance, individuals may rely on credit cards or loans to cover their expenses. This can lead to increased debt, which can be challenging to pay off over time. Reduced Standard of Living Without long-term disability insurance, individuals may need to make significant lifestyle changes to make ends meet. This can include downsizing their home or making other significant sacrifices that can reduce their standard of living. A healthy piece to the financial puzzle Long-Term Disability Insurance is an essential component of a comprehensive financial plan. It provides income protection, helps cover medical expenses, and provides peace of mind. This is why we suggest considering long-term disability insurance to help you have coverage to protect yourself and your family. Luckily, Whitaker-Myers Wealth Myers is part of the Whitaker-Myers Group, which has a department that handles long-term disability insurance. If you have questions about long-term disability insurance, talk with your financial advisor. If you’re interested in a quote, they can put you in contact with a member of our insurance team. 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.

Dollar Cost Averaging or Lump Sum When funding investment accounts, clients are often aware that they could invest it all at once in a lump sum or over time using the dollar cost average method. Lump Sum /ˌləmp ˈsəm/ noun a single payment made at a particular time, as opposed to a number of smaller payments or installments. According to Charles Schwab, Dollar cost averaging is the practice of regularly investing a fixed dollar amount, regardless of the share price. It's an excellent way to develop a disciplined investing habit, be more efficient in investing, and potentially lower your stress level and your costs. We will evaluate the pros and cons of employing both methods in investing. The Pros and Cons of Dollar Cost Averaging As previously mentioned, dollar cost averaging means putting your money into the stock market over a period of time, most commonly being weekly or monthly intervals. One pro of doing this is to take overthinking out of the equation. Investors and clients often check the market daily to determine if now is a good time to pull out or stay in the market. Additionally, when invested over a long period and regularly making these investments, you will buy when the market is low and high. Over time, your price per share will most likely be favorable. The cons of dollar cost averaging are relatively simple. In my previous article, I speak about “knowing your number,” which has to do with the stock market. How low is low enough to enter the market from its all-time high, and how high is too high to enter the market? It is essential to know your number. From January 2021 to April 2023, the market is still down roughly 13-14% from its all-time high. Through this time, it was anywhere from down 25% back up to only down 11%, continuing down and up repeatedly. To reiterate, the con of dollar cost averaging is missing out on higher gains. Let’s say you have $240,000 to invest and want to split it up into $10,000 invested each month for two years. If you buy when the market is down between 10-15% for a year but then it goes up 10-15% over the following year, then your average share price will be higher, and your return will be lower than if you threw it all in while down 15%. The Pros and Cons of the Lump Sum Method As previously mentioned, the lump sum method involves finding the right time for an investor to put their amount into the market in its entirety all at once. The Pros and Cons of this method surround market timing. The pro to the lump sum method will be if you act on the lump sum method when the market is down 10% and goes back up for an extended period. The con to the lump sum method will be if you act on the lump sum method when the market is down 10% and goes down an additional 10-15% over the next two years. The Future In conclusion, people have yet to know precisely what will happen in the stock market. Generally, when invested long enough and exposed to the stock market, you will see returns depending on how much stock you have weighted in your portfolio. The best way to reduce stress, and not worry about market timing, would be to use the dollar cost average. The best way to know you are buying low is to enter the market at any point when the stock market isn’t at its all-time high. If the market is down 5% and you are comfortable with that, use the lump sum method. If the market is down 10% and you are comfortable with that, use the lump sum method. Even if the market is up 5% from its all-time high, and you think it will go up higher, use the lump sum method if that makes you comfortable. It all comes down to what you can tolerate. In general, dollar cost averaging is a good idea for most people because it builds the habit of saving consistently over time. As our friends at Ramsey Solutions always say, investing is about being the tortoise not the hare – it’s a good idea to make a plan to save on a regular basis and stick to it. The power of speaking with your advisor As mentioned, everyone has different goals and timelines with their money, so it is important to speak to a Financial Advisor about your specific needs and goals. Please contact one of the Financial Advisors here at Whitaker-Myers Wealth Managers; we would be happy to help you! 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.

A Budget Friendly Recipe for Mother’s Day Brunch We all want to celebrate moms well, and most of the time, the best gift you can give them is time with their families. When Mother’s Day approaches, the ideas for what to do and what to buy are constantly thrown around –What present do we buy? What is their favorite food or sweet treat? Should we go out to eat vs. staying home? This year consider hosting a Mother’s Day Brunch! You can’t go wrong with brunch, and your mom will not be disappointed! When you host brunch, the possibilities for food are endless – from a classic quiche, a waffle bar, and yogurt parfaits to hot ham and cheese sandwiches or chicken salad sandwiches with a fruit bowl. Quiche If you haven’t made quiche before, it is very simple and absolutely delicious. Quiche is also a great money-saving option since you can use many leftovers, such as ham, bacon, or veggies and use them as ingredients; then those leftovers have just turned into something delicious! And another benefit of making quiche is that it’s one of those dishes that looks visually appealing, elegant, and beautiful. Simply slicing tomatoes and placing them on top of the quiche before placing it in the oven ends with a beautiful quiche people will think you purchased instead of made yourself! Be sure to read the directions beforehand to plan accordingly before you begin cooking so you aren’t rushing through the process. This allows you to be able to enjoy preparing the meal for your mother and spend the time with her which you’re looking for! Classic Quiche Lorraine: Serving Size: 2 Quiches (about 8 servings each) 2 unbaked 9in deep-dish frozen pie crusts 8 slices of bacon – cooked and chopped finely (or substitute ham) 1 medium onion thinly sliced 4 beaten eggs 2 cups half and half 1 tablespoon of all-purpose flour ½ teaspoon salt dash ground nutmeg 1 ½ cups (8oz) shredded Swiss cheese Additional: any veggies you’d prefer to add to your quiche. I.E., spinach, tomatoes, peppers, mushrooms, etc. Preheat oven to 450 degrees F. Polk holes in frozen pie crust and prebake for about 15 minutes. Cook bacon, then chop finely. Let cool completely. Sauté onion and any other vegetables in a skillet until softened. Then let cool completely. In a bowl, combine eggs, half & half, flour, salt, nutmeg, and cheese. Add bacon to the mixture once cooled. Once the vegetables have cooled completely, add to the liquid mixture. **Don’t add the vegetables while they’re still hot, as you will end up cooking your eggs when you pour them into the mixture! Lower oven temperature to 325 degrees F. While the pie crusts are still hot, pour equal amounts of the liquid mixture into each pie crust. Bake for 45-50 minutes or until fully set (no liquid or movement of the mixture when gently tapping the sides). Serve and enjoy! 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.

Your Savings, Investments, & Taxes TAXES. Love or hate them, if you live in the United States of America, you can participate in our excellent tax system. At Whitaker-Myers Wealth Managers, we strive to provide the best advice and individualized financial plans to help reduce your tax burden and be a good steward of the resources God has given you! As financial advisors, we work closely with our amazing Certified Public Accountant (CPA), Kage Rush. Whether your assets and resources are so numerous that you pay people to protect your properties or you are just trying to figure out the basics of the investing world, we can help. This article will cover three basic investment strategies that can help alleviate your tax burden now or in the future. Hopefully, it will give you a basic understanding of the tax benefits of some of the accounts we set up and manage on behalf of our clients. Individual Retirement Arrangements (IRA) IRAs are savings that can provide fantastic tax advantages for people in the current tax year or retirement age. There are, however, two types of IRAs that savers must be cognizant of; the traditional and the Roth. Traditional IRA This type of account provides an immediate tax advantage. The money is deposited into the account before it is taxed. The benefit of the immediate tax savings comes from this pre-taxed deposit. For example, if your salary is $50,000 annually, and you contribute $5,000 to your IRA annually, you can deduct that $5,000 from your Federal and State income taxes. You would be in the 12% tax bracket, saving about $600 in income tax. Even though this is an immediate tax-saving benefit, the caveat with this situation comes at retirement when you pay taxes on withdrawals from the account. Withdraws from the traditional IRA can typically only be made after 59.5 years old without facing any penalties unless an exception applies. One potential issue with the Traditional IRA distributions is that it increases the chances of your social security income being subject to income tax in retirement. This can lead to a surprise tax bill early in retirement without proper planning. Roth IRA The Roth IRA is similar to the traditional IRA as a retirement savings account, and withdrawals can typically only be made after 59.5; however, this account does not save on taxes immediately. With the Roth IRA, deposits would be made AFTER the money deposited has already been taxed. Although this type of account does not provide any tax advantages to individuals for the current tax year, after the taxed contribution is made, it can grow free from tax to help save for your retirement. For example, if your income is $50,000 annually, and you contribute $5,000, you do not have immediate tax benefits. The benefit comes when you turn 59.5 years old and start withdrawing from that account. Upon the retirement age mentioned above, the taxed money you had previously contributed is now withdrawn from the account, free from tax. Another benefit is that this lessens the impact of your social security being subject to income tax in retirement. Limitations Two limitations to the traditional and Roth IRA are worth mentioning. First, the funds that can be contributed to either type of IRA annually are restricted. The maximum yearly contribution for 2023 is $6,500/year for those under 50 and $7,500/year for those 50 or older. Second, if you withdraw earnings from your accounts before 59.5 years of age, you can owe income taxes and have a 10% penalty. To recap, both the traditional and Roth IRA are great ways to save for retirement that can help with amazing tax saving benefits now or in the future. Where you are in your financial journey would determine which account would be a good fit for you. Remember that these accounts are limited to the max yearly contribution, so often, the IRAs are not the sole retirement savings account. They are used in conjunction with other types of retirement and Brokerage accounts. Brokerage Accounts Another type of account we often assist clients in managing is a Brokerage account, or Bridge account, as Dave Ramsey calls it. In all reality, Dave’s is a much better name because who wants the word BROKE associated with their wealth? With a Brokerage/Bridge account, no immediate tax deductions or tax deferral benefits exist. However, it does offer some intermediate benefits: You have access to the funds whenever you need them You can get market returns rather than having your money sitting in a savings account at a bank, earning a whopping .01% rate of return. Tax loss harvesting. This is when your advisor trades your investments at a loss and waits at least 30 days to buy a similar investment. This loss can be deducted from future Capital Gains or can be deducted at $3,000 a year on your taxes. Also note that Brokerage Accounts create taxable dividends and interest every year depending on the investments chosen in the account. No Capital Gains taxes if your annual income is under $89,250 for Married Filing Jointly, $55,800 for filing Head of Household, and $41,675 for Single or Married Filing Separately. Ultimately, when a person enters retirement, having capital in all three of these investment areas is beneficial to maximize the tax advantages. As of the current tax year (2023), the standard deduction is $27,700. From a tax perspective – The least taxed retirement cash flow to the most taxed retirement cash flow is ranked below: Only claiming Social Security income and taking money out of a Roth IRA or Roth 401(K) Mixing Social Security income with cash from a brokerage account, Traditional IRA distributions, and Roth IRA distributions Claiming Social Security Income and using Traditional IRA distributions. Remember that Traditional IRA distributions are initially tax-free when contributed but are taxed as earned income when withdrawn in retirement, which can make up to 85% of Social Security taxable. If you were to withdraw $100,000 a year, the Federal Tax breakdown would look like this: $50,000 from Traditional IRA - $27,700 is tax-free from the standard deduction, and $22,300 is subject to the 10% tax rate = $2,230 $39,250 from Brokerage Account – Not the full $39,250 is subject to capital gain tax, just the gain, which is the difference between the stock value of $39,250 and when the stock was originally purchased. $10,750 from Roth IRA The tax liability for a couple married filing jointly from the cash flow would come from: the Traditional IRA distributions above the applicable standard deduction claimed, any short-term capital gains recognized and long-term capital gains above the 0% tax rate threshold, any interest and dividends received from the brokerage account, and potentially any taxable income from Social Security because of earned income from the Traditional IRA distributions and size of capital gains recognized. *Taxes may vary from the example depending on your specific tax situation and filing status. We Are Here to Help Investing has many benefits, so knowing how and where to place your money is key. This is why working with a financial advisor is beneficial so that they can help you think through the strategies that would work best for your specific financial goals. Contact any member of our financial advisor team today to help you get started! 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.

ALL THINGS EMERGENCY FUNDS Let’s start with defining an emergency fund, which is simply money put into a liquid and accessible account to cover unbudgeted and unforeseen expenses. Many call these accounts “rainy-day funds” or “savings accounts,” but they all serve the same purpose. The two broad categories for accessing these funds would be a job loss/large pay cut or significant surprise expense(s). What type of account is the best fit for an Emergency Fund? There can be multiple appropriate answers to this question, but one incorrect answer is your primary checking account. Even if you manage money well or are not a big spender, extra money in your regularly used checking account will dwindle and be used for non-emergency purposes. So having a separate, rarely used account will guard against eroding this vital part of a solid financial plan. Some good examples are money markets, interest-bearing savings accounts, and brokerage accounts. Although you do not want it to be your sole emergency fund option, utilizing a short-term CD or I-bonds could be an option for a portion of your account. The account should be liquid, and no penalties or fees to access the funds, but you purposely don’t want to make the funds too easy to spend. So, if you do a savings account as your emergency fund, doing one at a separate bank apart from your checking account is a good idea. How much should I keep in my Emergency Account? There are two “stepping stones” of Emergency Funds, which come into play as to where you are within the Baby Steps. If you live paycheck to paycheck or have debt(s) to be paid off, try eliminating any discretionary spending until you get to at least $1,000. This is Dave Ramsey’s first step in the seven financial Baby Steps and is an excellent way to develop the mindset of living below your means and establishing an emergency fund that may go up and down occasionally but never totally goes away. Once you have paid off all your debt (outside of your mortgage), establish a 3-6 months emergency fund. This emergency fund should be calculated using expenses versus income to know what is needed to cover mandatory living expenses. We know the difference between three to six months of expenses can be a large number. Determining how much you need is dependent on your specific situation. The rule of thumb is that if it is a dual-income household or both of your jobs appear very stable and are salaried, a little closer to three months should suffice. If you are on a single income, your job(s) is unstable, or you are self-employed with a fluctuating income, you should try to save for up to six months’ expenses. Should I invest my emergency fund? The hope is that you never have to touch your emergency fund. If you purposely set up an account outside of your primary or only checking account, it should allow you to make some return on your money. After an entire decade of savers and emergency account owners being punished with low yields and few good options, solid yields have returned. Charles Schwab’s money market currently pays 4.61% APY; many standard bank savings accounts are 3%-4%. Going back to the 3-6 months expenses, if your monthly expenses are $3,333 a month, then putting $10,000 into an account that takes no risk in the market yet still pays some return makes sense. If you have a stable job and do not mind some risk, invest half of your emergency account into an ETF with some stock exposure and more upside. If you have a less stable income or are more conservative or tend to worry, then sticking to a money market, I-bonds, or some bond mutual funds that are low to intermediate duration and relatively low risk would make some sense that you are less likely to have to access and have the potential to get a 4%-7% return on. Some shorter-term bank notes are also appropriate for that last month or two of expenses in your emergency account. Some treat precious metals, antiques, or collectibles as quasi-emergency funds. However, this is not a good idea because those items can be pretty volatile and are usually somewhat illiquid. When do I use this fund? The answer may seem obvious…an emergency, but what decides “an emergency”? As human nature, we tend to rationalize and confuse ourselves as to what is an “emergency” warranted to use the money in this fund. Dave Ramsey recommends asking three main questions as a safeguard from utilizing our emergency funds too often. Is it unexpected? Is it necessary? Is it urgent? Our team of financial coaches tells you to ask yourself, “Is this a ‘break the glass’ kind of moment.” Meaning there are no other options or no more flexibility in your monthly budget to come up with the money needed. A car accident is unexpected; going over your Christmas shopping budget is not. Having reliable transportation to and from your job is necessary. Upgrading the model, look, or feel of anything you currently have, which is working fine, is unnecessary. Fixing your furnace at the beginning of winter is urgent, but buying something unnecessary because it is “on-sale” is not urgent. Creating the behavior In summary, like many financial planning matters, an effective strategy with an Emergency Fund is 20% knowledge and 80% behavior. Once you understand the basics and establish a low-risk and liquid account, having the discipline to access your emergency fund only when an unexpected true emergency happens is the formula for success. Then after those funds are spent on that necessity, having the discipline to replace those funds is vital because life happens, and none of us will have only one emergency in our adult life. As always, we recommend you speak to your Whitaker-Myers Financial Advisor or contact our financial coach team to establish and maintain a good emergency fund and a disciplined and sensible strategy. 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.

Cinco De Mayo When you think Cinco de Mayo, you immediately think of dinner with friends consuming all things tacos, fajitas, guac, and salsa, right? Why not start this year’s Cinco de Mayo with a hearty, delicious Mexican breakfast to get your day going instead of only looking forward to dinner and drinks after work? Or, if you’re a breakfast-for-dinner kind of person, test this recipe out! You’ll enjoy the fresh ingredients, and if you’ve never fried an egg before, now is your chance to master it! Fresh Ingredients A dish of any type stands out when the ingredients are fresh. Using fresh tomatoes in this recipe will set the flavor apart. With spring approaching, the fruits and vegetables we long for in the winter are slowly becoming readily available and in their best form! Some of the best Mexican dishes are topped with fresh guacamole and salsa. Those key sides are what aid in bringing out other flavors in the dish. Head to the grocery store (or if your local farmer’s market is open, even better) and grab some fresh tomatoes to prep for your hearty Cinco de Mayo breakfast! Fresh Huevos Rancheros: Serving Size: 4 servings (makes 8 tacos) 2lb diced ripe tomatoes ½ medium onion diced 1 jalapeno finely diced (or sub green chili peppers for a milder flavor) 2 tbsp lemon juice 2 tsp salt 1 clove minced garlic ½ cup olive oil 2 (15oz) cans of black beans ¾ tsp ground cumin ¼ tsp smoked paprika 8 large eggs 2 tbsp fresh cilantro coarsely chopped For serving: Fresh sliced avocado Coarsely chopped cilantro Crumbled queso fresco In a bowl, combine diced tomatoes, diced onion, diced jalapeno, lemon juice, half the garlic, and salt. Mix to combine. Remove 1 ½ cups of the salsa and set aside. Heat the remaining salsa in a pan on medium heat, stirring until it thickens to create ranchero sauce. Set aside in a separate bowl to keep warm. Heat a couple of tablespoons of oil in the same pan on medium heat. Add remaining garlic and stir. Add black beans (including their liquid), cumin, paprika, and ½ cup fresh salsa. Cook until smooth and thick. Season with salt and remove from heat once desired texture is reached. I like to use a wooden spoon to mash ingredients together to create the refried beans. In another skillet, heat oil for eggs on medium heat. Crack the eggs in the skillet, and don’t touch. Once the egg whites begin to “dance” or bubble up around the edges and the egg whites are hardened, transfer the eggs to a plate and repeat until all eggs are cooked. (Egg yolk should still be runny.) Depending on the size of your pan, you may be able to do multiple eggs at once. Use a skillet or griddle to lightly heat tortillas. To plate: Add 2 tortillas to a plate, spread refried beans on tortillas, add one egg to each tortilla, add ranchero sauce to the eggs, add fresh salsa, and garnish with avocado, queso fresco, and fresh cilantro. Enjoy! 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.

Equity-Based Benchmarks Investing in the stock market comes with inherent risk. The stock market has highs and lows, but how can you measure your investment portfolio’s success? One job of a financial advisor is to compare their investment strategy to a benchmark. Benchmarks provide some clarity surrounding the success or lack thereof concerning your investments. Investment Portfolios are often designed to either mirror or beat their benchmark outright in terms of performance. Essentially, benchmarks provide a measuring stick for investment strategies – in the article, we will look at a few of the major indexes used as benchmarks for equity investing in the industry and what makes them unique. S&P 500 The Standard and Poor’s 500, also known as the S&P 500, is a stock index composed of the 500 Largest U.S. companies listed on the stock exchange. The S&P 500 has a market capitalization of $33.8 trillion and is composed of growth and value companies. This index helps measure the performance of growth and value-based investment portfolios, or what Dave Ramsey often calls “Growth and Growth & Income” companies. Russell 2000 This index tracks the roughly 2,000 smallest U.S.-based companies. These small companies attract investors with their strong upside potential and fit the bill as “aggressive growth” companies because of their commitment to aggressively reinvest assets into their company’s growth. As you can imagine, investors like the sound of buying low during a company’s infancy and selling high as they reach the top of their respective industries. Russell 2000 investors expect (hope) those companies to have that type of trajectory. MSCI EAFE Unlike the other two indexes, which contain strictly U.S. companies, the MSCI EAFE is an equity index that captures large and mid-sized representation across international companies. This index weeds out emerging markets, which would be highly volatile, and instead focuses on 21 developed countries worldwide. This list does not include the U.S. or Canada and provides a helpful benchmark for internationally-focused investing. As a follower of Dave Ramsey, you might know this as the final piece of his four recommended equity investing categories (Growth, growth and income, aggressive growth, and international). If equity investments are right for your portfolio, benchmarks like these will play a pivotal role in developing your investment strategy. If you’re saving for retirement or another goal that’s down the road, contact our team today to schedule a meeting with one of our advisors. 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.

What should I do if my identity is stolen? Finding out that you are a victim of identity theft is very unnerving. You start having millions of questions, the first of which is likely, “What should I do now?” If you have Identity Theft Protection, the first step is to file a claim with that company. If you don’t have identity theft protection, it might be worth calling a company to see if they can help you if you sign up now. Dave Ramsey recommends Zander Insurance for identity theft insurance, which I use personally. If you are a victim of identity theft and file a claim with them, they assign a case worker to help you with the next steps. I will walk through the steps I took personally during a run-in with possible identity theft. Nine Things to Do if Your Identity is Stolen Credit Freeze If you don’t already have a credit freeze on all 3 of the credit bureaus, it would be recommended to call and/or go online to add a credit freeze to each of them separately. If you have a freeze on your credit, this should eliminate the ability for someone to take out loans, credit cards, etc., in your name. Fraud Alert As an added layer of security on your credit – you can add a fraud alert on all three credit bureaus. This means they will call the phone number on file in the alert to confirm identity instead of the phone number on the submitted application. Put a freeze on ChexSystems ChexSystems is the system that most banks use when opening an account, so this layer of security should help protect you from having bank accounts opened in your name. Add extra security to your bank accounts Call your bank where your checking and savings are, let them know what happened, and see how you can add an extra password or voice ID to access your accounts. Add extra security to your investment accounts This is similar to your bank but for your investments. Call the Custodian that holds your 401(k) and/or IRAs and add an additional password or voice ID to access your accounts. Change ALL of your passwords Especially for your online banking, the portal you use to view your 401(k) and/or IRAs, and your email. Run your credit report You need to ensure there is nothing on there that shouldn’t be. If so – be sure to contact the company and dispute it. Look at your online banking or bank statements You want to make sure there are no unusual transactions. Notify your Financial Advisor and CPA Knowing that you have had this happen would be important for anyone who helps you with your finances and financial planning. Knowledge is power As I mentioned, having a run-in with identity theft can be very scary, but it is helpful to know what actions you need to take to minimize the impact. The benefit of identity theft insurance is not only the monitoring they do to alert you if there is an unusual activity quickly. Having a case worker walk you through the above mentioned steps (and more if needed for your specific situation) is extremely valuable. If you have any questions specific to your financial needs, please get in touch with one of our Financial Coaches or Financial Advisors; they would be more than happy to help you.