Easy Cleanup and Delicious Throwing a party for the Big Game yet dreading the mess you’ll have to clean up once the game is over? Any thought of opening your home and your fridge can be overwhelming when you think of the aftermath. You long for as easy cleanup (and, honestly, meal prep) as possible. I’ve got you covered - sheet tray nachos are your answer! Give Yourself a Break When you’re hosting, you always feel pressured to do it all. You want your home to be welcoming, and the assortment of food provided to be delicious! Who wouldn’t? That’s a great desire, but you don’t have to do it all. Take some pressure off yourself, and help your wallet out, and maybe this year, if you’re the host, ask your guests to each bring a dish, side, or drink. Tell them you’ll prepare the main dish (your hearty, fully loaded, sheet tray nachos) and the paper products. This will allow you more time to enjoy and interact with your guests instead of worrying about when each dish or side will be ready and if there’s enough. It’s fun to see what your friends and family will contribute to the party and one less stressor for yourself. Adaptability Tailor your nachos to you! These nachos are crowd-pleasers because they can easily adapt to your taste buds! If you prefer chicken over ground beef, go ahead and shred s, some chicken (or even easier, buy a rotisserie chicken!). If you’re a vegetarian, add beans as your main source of protein, then load it up with all the veggies! When the simple prep of this dish is finished, it is easy to throw all these ingredients on the sheet tray and in the oven just moments before your guests walk through the door. These nachos will undoubtedly be a crowd-pleaser, and your guests will ask for more! Sheet Tray Nachos Recipe: (1 sheet tray yields 6-8 servings) 1 lb Protein of Choice - Ground beef/ Shredded Pork/ Shredded Chicken/ Black Beans/ Pinto Beans 1 Bag of Chips Veggies: 2 Bell Peppers chopped 1 can of Beans rinsed/drained 1 can Corn (drained) or 1 bag frozen 1/2 Red Onion chopped or sliced thinly 1-2 Cups Shredded Cheese (Cheddar or Mexican); add more as desired Additional Toppings to garnish with once out of the oven: Guacamole, Sour cream, Salsa, Jalapeno, Chili, Avocados, Lime Wedges, Tomato, Chives, Cilantro Grab a sheet tray. Line the sheet tray with parchment paper. Preheat your oven to 400. Precook any meat as well as cut up any veggies ahead of time. Layer your ingredients evenly over the sheet tray in the order of the recipe above. Bake in the oven for 5-10 minutes or until the cheese has fully melted. Enjoy! Double as needed. 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.

New Year New You With the majority of the holiday festivities now behind us, and the anticipation of the new year upon us, are you trying to decide on a new year’s resolution? Not sure what to set as your goal for the coming year? Keep thinking to yourself “New Year, New Me!”? A lot of times new year resolutions focus on creating new habits and most of the time, these center around a new healthy lifestyle. And although eating healthier, working out more, losing weight, and getting more sleep are excellent new routines to try and build, don’t forget the importance of practicing good behaviors with money/finances. Set Finances as a Priority Much like any new year resolution, you have to set your finances as a priority. Whether it be deciding to track your checking withdrawals, setting goals on saving for a specific reason (or just throughout the year), scheduling a meeting with an advisor and start investing, or deciding to sit down and commit to a monthly budget, the first step is acknowledging that focusing on your finances is just as important for a healthy lifestyle as losing 10 pounds. Be Intentional While meeting with a client recently, we were discussing the importance of being intentional. This included not only being mindful of what they were spending their money on, whom they were spending it on, or how much they were spending, but also when they were spending their money. This means thinking through if there are certain times of the year that you know you will be spending more than normal, or if there are upcoming situations where you may be spending money outside of your monthly bills. Knowing ahead of time when you may be spending more than you normally do, will help you smartly spend your money, finding either meaningful gifts, items at a discounted price, or just helping you save for the large purchases to come. Be Proactive During the meeting that I mentioned above, we started talking about ways to be more proactive. And through the conversation, the idea of reviewing your upcoming year now can help set you and your budget up for success. They threw out the idea of the week between Christmas and New Year, or even the first week after the new year, they would take out their 2023 calendar and look over each month. They are going to write down birthdays, holidays, and special occasions (i.e., weddings, anniversaries, graduations, etc.) that they were aware of, and jot them down. Not just on the calendar, but also on a spreadsheet to start thinking through how they will need to allocate more dollars for those specific months, or how to plan for these things in the coming months. Just as important as it is to meal plan when you are starting with a new healthy eating regimen, as it is to do the same when mapping out your monthly finances. Be Consistent Doing something once doesn’t make it a habit. Even doing something twice, doesn’t make it a change. Doing something over and over, especially when you are starting a new routine, is what will give you the most success in sticking with it. In the beginning, this can be hard. Especially if it is something you don’t care to do or something that makes you uncomfortable. However, the more often you can set aside time to focus on finances, and working on a budget, the more it will become second nature. Making and setting up your budget is the easy part. Tracking your expenses throughout the month and making them fit into your budget is the hard part. But you have to keep with it to make it worth it. Pencil in 2-3 times a week you can dedicate to checking in on your budget and making sure it is up to date. The more you do this over and over again, the fewer errors you will have, and will be less likely to overspend. Be Patient Remember this new habit or lifestyle isn’t going to be instant. It’s going to be a work in progress, but it will become normal for you if you stick with it. You just have to be patient and give it time. Stretching those “muscles” of focusing on your finances by setting a budget, reviewing expenses, and doing it daily, will soon feel as if you have always done these things. Sticking to new year’s resolutions can be hard, but are worth it in the end. If you want to make focusing on your finances a new year’s resolution, reach out to a member of our team. We have 11 financial advisors on staff and a certified master financial coach ready to help you make your finances a priority!

The SECURE ACT 2.0 and the ROTH IRA As I write this article, one quote from my kid’s favorite Christmas movie comes to mind, “keep the change you filthy animal.” The Secure Act 2.0 is being met with mixed feelings. It is viewed by some as an unexpected lump of coal, and to others as a special Christmas gift. The second edition of the Secure Act is a $1.7 trillion omnibus spending bill - 4,100 pages detailing dubious plans for spending that just don’t make sense to many ordinary voters. The Secure Act 2.0 presents numerous changes to existing retirement savings and withdrawal rules. Let’s look specifically at how it changes the valuable retirement investment tool of the Roth contribution. What is a Roth IRA? A Roth IRA is a personal retirement savings plan that offers certain tax benefits to encourage retirement savings. What are those tax benefits? A Roth IRA grows tax deferred, but unlike a Traditional IRA, if certain conditions are met, distributions (including both contributions and investment earnings) will be completely tax-free at the Federal level. Let’s look specifically at the language in the Secure Act 2.0 and look at three sections that will impact the Roth IRA. SECTION 107: Increase in RMD AGE to 73 and 75. Current law has the age for Required Minimum Distributions set at 72. The Secure Act 2.0 would move the RMD age to 73 for anyone reaching this age in 2023. If you reached age 72 in 2022, you are subject to the age 72 RMD. And then on January 1, 2033, the applicable RMD beginning age will be 75. This change makes Roth conversion planning opportunities a very important topic to discuss with your Whitaker Myers Wealth Managers financial advisor. Pushing back the RMD age gives people more flexibility over when to spend their money, more planning opportunities for Roth conversions, and an increased ability to create intelligent spending strategies from their taxable retirement accounts. This conversation will allow you and your advisor to look for low-tax rate years where you can do some conversion from a traditional IRA or retirement account to a Roth IRA and keep taxes low. SECTION 126: 529 to Roth Accounts The SECURE Act 2.0 creates a way to do a tax and penalty-free rollover from a 529 account to a Roth IRA under certain conditions. Currently, money in a 529 that’s distributed for non-education expenses can be subject to penalties and taxes. Under the new provision, beneficiaries would be able to do a rollover of up to $35,000 aggregate in life from a 529 to a Roth IRA in their name. These rollovers would have to abide by the Roth IRA annual contribution limits and the 529 would need to have been open for at least 15 years. The income limitation to contribute to a Roth IRA is removed for the 529 to Roth IRA rollover. This change removes the uncertainty of what happens if you were to overfund a 529 or if your kids don’t need it. If you overfund your child’s 529, your child gets a scholarship, or your child doesn’t go to school that money can now be used for the child’s retirement inside of a Roth IRA. This may be another possible topic to talk to your Whitaker Myers Wealth Managers financial advisor about when you consider how to start saving for your child’s education. Section 604: Employer Matching can be Roth or Pre-Tax The Secure Act 2.0 will allow employers to let participants in 401(k), 403(b), and governmental 457(b) plans to get matching contributions on a Roth basis. It doesn't require plans to offer this but creates it as an option. This provision allows for matching contributions to go into a Roth account. This can make sense for many lower-income employees that don’t benefit that much from tax deferral, especially early in their careers. Roth tax treatment can give them a better overall tax outcome. Because this is at the discretion of the employee, it gives additional savings and tax management flexibility. In Conclusion with the Secure Act 2.0. When analyzing this complicated and lengthy bill, experts conclude that there is a focus by the legislature on specifically Roth accounts. Why? Roth contributions push tax revenue forward for the government. The Secure Act 2.0 provides plenty of additional tax flexibility as you choose between Roth or tax-deferred accounts. Moving forward, those saving for retirement and their Whitaker Myers Wealth Managers financial advisors will have more control over how their money is taxed than they did under the prior law.

New Year’s Resolution: 2023 When it comes to fresh starts, there is no better time than the start of a new year. People are hopeful, excited, and have new energy to start the year strong. This article aims to help organize, create a process, and ensure the correct actions are being taken. These actions will help one to thrive now, and in the future, and relieve an immense amount of stress. Through discipline and optimism, one could find themselves on the path to a healthy and happy financial life, no matter their income level. This is all made possible by paying off debt, saving up, and automating one’s investing. Pay Off Debt Some people feel like they can never dig themselves out of debt. When every month you have expenses that go to a credit card, a car, and other debt, it may seem like there is nothing that can be done. To focus on paying off debt, it is important to realize that as long as you aren’t going backward each month, it is very important to put any excess into paying down debt. Some people carry debt with them, yet have a lot saved up in a checking/savings account. It is crucial to use those funds to pay down or pay off items that are being paid for month over month. This concept is so important to financial freedom that it is necessary to sell some things you may not need any longer. Being debt free allows someone to build up an emergency fund, save aggressively for retirement or other goals, and grow net worth exponentially. Pay for your future self, not a bank or a creditor. If you need help starting a budget and paying off debt, our Financial Coach, Lindsey Curry would be more than happy to help you with that. Save Up Your non-mortgage debt is paid off, congratulations! Your monthly expenses are still going toward taxes, rent/mortgage, utilities, etc. What should be done with the rest? Whatever it may be, it is important to treat yourself as a reward for your diligent work on paying off debt and completing baby step 2. Having this extra money per month is the greatest advantage someone can have as they start to save. Building up an emergency fund should be the next priority. An emergency fund is a personal budget set aside as a financial safety net for future mishaps or unexpected expenses and should be in the amount of 3-6 months of expenses. For example, if someone pays a $1,200 mortgage and their other utilities, etc. add up to another $1,300, then in this situation, they would need to have $7,500 at the very least in their savings account at all times. Saving an emergency fund is great because there is a buffer when something unexpected comes up that you wouldn't have previously been able to afford. This could be needing tires, paying for an unexpected injury, etc. Events like this could possibly lead to going into debt if not properly buffered by the emergency fund. Automatic Investing Fantastic, you have moved on to investing! Debt is paid off, an emergency fund is funded, now what? The extra money first went towards paying down and paying off debt. Then the extra money went to an emergency fund. The next place it goes is into a managed investment account. That is the fun, but difficult part. It is a great feeling to have peace of mind. No immediate debt, and a fully-funded emergency savings account. Now it is time to enjoy all that extra money, right? Yes, and no. As previously mentioned, it is so important to reward yourself for the multi-year efforts that have been given. Go on vacation, and buy yourself something nice. One thing to know about human nature is that if there is money in your pocket, you’re going to spend it. If there is no money in your pocket, you just have to go home. That is a lot of what disciplined savers do. Now that you are in a position where there is surplus cash flow, the greatest thing to do for yourself is to set up an automatic withdrawal from your bank account, into your investment account. Check out this video about Dollar Cost Averaging for the benefits of regular investing. This removes the temptation to spend money on things that aren’t always needed and delays gratification for the future. 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 just 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 heavyweight 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.

Dueling Contributions Beginning Baby step 4 (Funding retirement accounts) can be exciting for anyone who has emerged victoriously from their suffocating debt pile. A common phrase is often shared among our Baby step 4 clients once they breathe a deep sigh of relief: “What now?” Besides the obvious next steps, meeting with a financial advisor, creating a financial plan, and opening retirement accounts, there can sometimes be confusion surrounding the topic of funding those accounts. In this article, we will examine some of the options and which ones are appropriate, and when. Go Corporate Once you’ve paid down debt, it’s time to start investing 15% of your income in retirement accounts. Whether you work for a company that offers a 401(k), or you’re a government employee and take advantage of the TSP, it’s important to know whether your employer offers a matching contribution. If they do, then we recommend contributing up to that amount, maximizing your exposure to “free money.” Not every workplace plan offers a match, so don’t just assume either way. Do the proper research and determine what is available to you. Depending on the plan, there may be a vesting schedule with the matching contribution, so be careful. If you don’t plan to be with an employer long-term, then it might backfire if your money isn’t fully vested and you terminate employment. All things considered, employer plans are generally a good opportunity to begin funding your retirement, so make sure you take advantage of the opportunity if it exists. Roth Until You Can’t Once you’ve met your matching employer contribution, the next thing to do would be to max out a Roth IRA. Starting in 2023 the contribution limit is $6,500 for an IRA. If you file taxes as an individual, or head of household, the maximum modified adjusted gross income (MAGI) for a full contribution is $138,000, and contributions phase out at $153,000. For married couples filing jointly the MAGI limit is $218,000 with a $228,000 phaseout. If you think there is a chance that your income will bump into the ceiling, then a Roth might not be for you. If your income exceeds the respective threshold and you make Roth contributions then you will be subject to a 6% excise penalty each year the funds remain in the account. If you know your income will be within the permissible range, then a Roth IRA allows you to take advantage of tax-free growth. That could turn out pretty nicely for you when you start taking tax-free distributions in retirement. Contributions to a qualified plan can help lower your MAGI if you’re on the cusp and hoping to contribute to a Roth IRA. Traditional IRA If you exceed the income limits for the Roth IRA, then a traditional IRA is your next best bet. The same $6,500 contribution limit exists, but the income limit does not apply here. A traditional IRA is pre-tax, so your earnings grow tax-deferred. When you take distributions in retirement, you’ll pay at your tax rate at the time of distribution. There is a silver lining to a traditional IRA, however. Since the contributions are tax-deferred, you may be entitled to some tax deductions during the year of your traditional IRA contributions. Other Considerations If you can put away more than 15% of your income for retirement, then the next move for you would be to go back to your employer plan once you’ve hit the maximum on a Traditional or Roth IRA. The 2023 limit for elective deferral plans is $22,500. This higher limit allows you to contribute more toward retirement, but it comes with a cost, perhaps. The investment options might be somewhat limited on these plans, which is another reason we recommend maxing out an IRA if at all possible before going back to the employer plan. A Taxable brokerage account is another option for those who want to retire early. Since you can’t draw money from an IRA before the age of 59 ½ you would need another source of income in early retirement. Dave Ramsey calls this a bridge account because it bridges the gap between early retirement and that magic number of 59 ½. Retirement planning has many moving pieces and every situation is different, which is why it is important that you talk with a financial professional about your objectives. At Whitaker-Myers, we have a team of advisors who utilize sound financial planning as part of our comprehensive approach to serving our clients. Reach out today to schedule a meeting and begin planning your future.

A year (and meeting) in review This past week our team traveled to Franklin, TN. It was a quick trip, but one of those trips that fills your (hypothetical) cup. We reflected on the past year, both successes and things to improve upon, and set goals for the upcoming year. Through thought-provoking discussions, we challenged ourselves to do better and brainstormed ideas to achieve this. We talked about ways to help us grow. We laughed and enjoyed each other’s company. We spent time at Ramsey Solutions’ Headquarters with Dave and his team. And we shared our opinions on the superior flavor of cheesecake at our team dinner. All in all, it was a great few days getting out of the office, spending some time together as a team, and reflecting on this past year. And a practice we suggest doing in other facets of your life. The benefits of a yearend recap Personally, I feel like January, February, and March take like 9 months to get through, but once April hits, I blink and it is already the middle of December. And I often feel like I only checked off two of the things that I wanted to accomplish. But taking the time, sitting back, and reminiscing on what actually happened in the last 365 days, helps me put things into perspective. Often times I realize I accomplished more than I thought I did and even things I did not have on my “to-do board” at the beginning of the year (i.e., have a baby as I am now back from maternity leave!). Now all your accomplishments may not be or feel all that life-changing. But even wins like putting in a garden, losing 10 pounds, joining an art class, learning to cook, reading for pleasure again, or committing to starting a budget (my personal favorite suggestion) are things that are good to acknowledge for yourself. These are the things that are good for your soul, and help recharge you for the new year to come. Outside of fueling your fire to take on the coming year, reviewing the last 12 months can help you learn to do things differently. This can be both personal and professional. Maybe when you look back, you wish you would have handled a situation differently, or started (or ended) something sooner rather than waiting. Whatever the case may be, looking back can help you move on and grow for things to come. Looking to the new year As all wise people say, you can’t live in the past. So, take the lessons learned, and accomplishments gained and carry them with you into the next year. But build upon them. Set your goals higher, or modify them to help you become a better version of yourself. A great way to do this is to sit down and give yourself a few minutes to reflect. Write down all the things that made you feel good, feel accomplished, and happy that you did this past year. Ask yourself, am I done with these accomplishments, or can I do better? Then, write down some action points to get you there and make them your goals. As Dave says, “a goal without a plan is just a dream”. Lastly, challenge yourself. Swinging for the fences is the type of energy we want you to have, but make it attainable so you can succeed. Set yourself up with wins (even if small wins) along the way to keep the momentum and excitement going for these goals. (Is it me or does that sound familiar?) And remember to give yourself grace. I think sometimes we all need this reminder. Between trying to keep up with the daily grind, eat healthily, workout, take care of the kids and succeed at work, it can all be a bit overwhelming. Be kind to yourself. Wrapping the year (and meeting) up So as the days start to dwindle down, give yourself a pat on your back. As I said, you probably have accomplished more than you have realized this past year. And then take that energy and move into the new year with excitement. The trip to Tennessee last week was a good trip. I laughed with coworkers I hadn’t seen since I was out for three months and got to meet a new colleague that joined us while I was gone. It was good to reconnect and see how we all wanted to grow ourselves (and the company) in the coming months. It filled my cup. Both figuratively and literally as I sipped on my peppermint mocha latte in the lobby of Ramsey Solutions.

Should I consider expanding my investing beyond stocks and bonds? For most time periods, some combination of stocks and bonds has worked fairly well. In fact, only 3% of the time are stocks and bonds both down in the same year. Meaning 2022, looks like the first time since the 1930’s that we will have that phenomenon take place. So generally speaking, most financial professionals are not abandoning traditional stocks and bonds, but there are several alternative class investments that clients may want to consider, as a tool for further diversification or a hedge against unique market behavior like that of 2022. In this article, we will explore a variety of alternatives that both advisors and investors may consider using in their portfolios for either short or long-term time-horizon. Private Real Estate Although using publicly traded real estate (REIT’s) is common and provides some level of diversification, private real estate has a much lower correlation to stocks and bonds. The main reason for this is that real estate markets react to many economic conditions as all markets do, so those reactions have to be valued daily or even on a minute-by-minute basis with ETF’s. Because of this, publicly traded REIT’s end up moving very similarly to stocks that are reacting to a constant flow of new economic data and thinking. Private real estate appraisals are taken only once per quarter or as infrequently as once a year, so the constant speculation and head fake that REIT’s react to is removed in the private real estate funds and therefore offers a much less volatile investment vehicle that provides some true diversification to the stock and bond markets. Structured Notes These are bonds, with maturities that are usually five years or less, issued by large banks. The moving parts and terms can vary quite a bit, but generally speaking there is some type of downside protection and the return is much more defined and predictable. Banks build these notes using options and zero-coupon bonds, to be able to offer attractive returns to investors, while taking on minimal risk themselves. In a year like 2022, where traditional stocks and bonds are suffering mostly double-digit losses, both downside protection and any return that is positive, have made these notes attractive to investors, this year. Just like with any other investment or asset class, research is necessary and structured notes are no exception as some can entail a high level of risk or offer minimal returns and value. Doing research and working with an advisor that has access to and knowledge of structured notes should offer you lots of value and a well-diversified portfolio. Finding quality structured notes that focus on income, will often outperform most bonds and bond mutual funds. One downside to notes is that although they can usually be sold at any time, you are much more likely to lose out on some principal if, in fact, you don’t hold it to maturity, versus holding to the stated maturity date of the note. Because of their liquidity, it’s still important to maintain a balanced portfolio of traditional stocks, bonds, and money markets in addition to structured notes. Precious Metals Gold has always been the go-to metal when seeking a hedge against inflation or the falling value of the dollar. Silver is also a common choice, although silver does have more industrial uses and technically gold and silver are commodities, they are usually put in a separate class and are purchased and invested in commonly as either a store of value or on speculation of near-term increases. People like gold and silver because of their proven staying power. Gold and silver are referenced in the Bible as a form of money and the desired investment, so people figure if they have a 6,000-year track record as an investment, then those precious metals will never become worthless. Casual investors many times make the mistake of thinking that gold and silver are not volatile and are safer than stocks, but precious metals can in fact fall in value and stay down for long periods of time. Gold was trading at $667 an ounce in September 1980 and it wasn’t until August 2007 that gold exceeded that level. So, you would have waited almost 27 years, just to break even. Stocks have rarely been negative over a 5-year span and have never been negative for any 14-year or greater span. Commodities Commodities are physical assets but can be traded via mutual funds, ETF’s, or options. These assets are generalized into soft commodities, which are food and livestock, and hard commodities that need to be drilled or mined for, like oil, coal, aluminum, and gas. Much like precious metals, commodities have appeal because they are tangible and have longevity in society. Also, like metals, they can be perceived as “safe” but can fall fast and stay down for several years. This year is an example of commodities being a good play and are mostly up and up strong in a year the stock and bond markets are down. So non-correlation is a benefit to investing in commodities, but because stocks are up nearly ¾ of years, commodities are not usually desirable to buy and hold long term. Crypto Although bitcoin has been around for over a decade, it and others like cryptocurrencies have been accepted into the mainstream of investing within the last few years. Just as crypto was starting to be more accepted, FTX (a major crypto exchange) just recently declared bankruptcy and is embroiled in a fraud scandal that is still unfolding, which has resulted in a loss of traction for the crypto world. Cryptocurrencies can be appealing because of their low correlation to the market and lack of dependence on the ebbs and flow of fiat currencies as well as the ease of quickly making transactions in foreign countries. However, the fact that still, such a small percentage of the population has crypto, makes it difficult to view it as a reliable and battle-tested currency. Other investors view crypto as a store of value or “digital gold” but because it cannot be physically seen and is often confusing to some investors, it faces an uphill battle as it aims for wide acceptance. So, what is the answer? Although we covered most of the common alternatives to stocks and bonds, it is not an exhaustive list. Collectibles, rare cars, currencies, options trading, physical real estate, and timeshares are just some of the other alternatives that investors may also consider. We have all heard success stories and big gains in these various alternative asset classes, but none of them is a sure thing and should not be used in place of stocks and bonds anytime soon. There are several variables to weigh with adding alternatives to your investment portfolio, but they are good to consider as a way to diversify or add value under certain circumstances. As a general rule, not going above 5% of your portfolio in any of these classes is usually a good approach to maintain a healthy level of risk, while still achieving some extra diversification. Be careful about attempting to over-diversify into alternatives. An example would be selecting 2-3 alternative assets that make sense at a specific time for a specific reason, keeping investors from taking on more risk than they intend. At Whitaker Myers Wealth Managers we feel that well-managed stock and bond funds should be a core component of most investors’ portfolios, but we do not want clients to miss out on sensible opportunities that could add value to their portfolios, so we will do our homework, aiming for the right time to utilize various alternative investments. In short, you should use alternatives, but they need to be the right ones at the right times, with sensible percentages, which can be a challenging balance to achieve. This is why it’s important that you talk to your financial advisor about these options and what makes sense for you.

With the advent of internet shopping and social media advertising, there has been a boom in small businesses over the last decade. In 2021, 5.4 million new business applications were submitted in the U.S. - more than 20 percent higher than any previous year. If you aspire to be a small business owner, it’s important to be prepared and have a plan before making a financial commitment. In this article, we’ll explore three keys to starting a small business from scratch. Determine what Drives You It goes without saying, but every business starts with an idea. There are plenty of obstacles waiting to impede your path to a profitable business. Do yourself a favor and start with an idea you are passionate about. If you believe in what you’re doing and are passionate about helping people, you are well on your way to providing a service that’s beneficial to society. If you care about something and become really good at providing a service to people, then you can add a ton of value to people’s lives. That is what makes a business successful. Make a Plan Obviously, you can’t start a business without a clearly defined roadmap. Define your mission, vision, and values before getting too granular. This is effectively an offshoot of the first step (above) but allows you to flesh out your “drive” a little more. Once you’re comfortable with what your business is going to be about, start to ask questions like “What is my budget,” “How will I make my services available” (online, brick and mortar etc.), and “What will my policies be?” You may even find it advantageous to use a calendar to plan out your timeline for gathering information, making your plan, and applying for the appropriate business license. Get Granular This is where the real work begins. You’ll need to decide on your business structure, the number of funds needed upfront, and the tax implications of starting and sustaining a business. It is always a bad idea to go into debt in order to start a business. It is wise to pay for your business costs in cash and be committed to growing slowly. If you are on baby step two and have personal debt, take the time to pay it off completely before putting your plan into motion. It’s better to wait until you’re financially independent than to use debt as a safety net and watch your dream business go up in smoke. There is a reason that 1 in 5 small businesses fail. By the time the rubber meets the road, you want to be sure that you’ve thought through every angle of the business in detail. If you have, then going from concept to reality won’t be so daunting. For a more complete checklist, check out the article our friends at Ramsey Solutions wrote on starting a small business. These three steps will have you well on your way to starting your business, but once you’ve thought through the important pieces of the puzzle, you’re ready to do the fun stuff like brand development. The whole process of starting a business takes time, so don’t be discouraged if you can’t start a business by next month. Remember, debt-free is always the best way to go so that you can live a financially independent life and live out your dreams. At Whitaker-Myers, we have a team of professionals that offer diverse skillsets to our clients. With the heart of a teacher, we are ready to help you prepare for your goals. If you are interested in starting a business and need to talk with a tax professional, reach out to us so we can help you put together a plan that makes sense.

In investing, risk tolerance is a phrase used to describe how much an individual is willing to see their account fluctuate, due to the amount of exposure one has in the stock market. As most people know, the stock market is unpredictable and has many ups and downs. Many people react to those ups and downs differently. Therefore, risk tolerance is unique to each person. There is a sliding scale to risk tolerance. One can invest 100% in stocks/mutual funds/Exchange Traded Funds (ETFs), which is the most aggressive form of investing. Next, someone could invest their money in 100% bonds, which is the most conservative form of investing. And lastly, they could also do a moderate approach where there are some stocks and some bonds; this mix and matching could be somewhat aggressive or somewhat conservative, depending on the allocation between stocks, bonds, and held cash. Conservative Investing Conservative investing is for those who have the lowest risk tolerance possible. These are the people who are most reluctant to invest at all and would most likely choose to have their money in their mattress. Money is very emotional for this group, and seeing any drop in the original investment amount is a calamity. Luckily, if you feel as though that is you, there are options out there. When risk tolerance is non-existent, or no risk tolerance, then there are a couple of options. The first is an all-bond portfolio. A company, a municipality, a state, or even the federal government, will agree to pay you back your money plus some extra after a certain amount of time. This grows your account at a slow but reliable pace, although bonds do still fluctuate in value. The other way is to keep it invested in a money market account, such as the Schwab Money Market fund. Money Markets are extremely safe investments; however, when something is safe, the investor loses out on higher potential annualized returns. Middle of the road Investing moderately is another tactic. Many people want some portions of their money safer, and other portions with the potential for higher annualized returns. The level at which people want that depends entirely on their risk tolerance. We have numerous clients all over that sliding scale. When describing this allocation, we say things like 90/10, 50/50, 80/20, etc. The first number represents the percentage of held stock/mutual funds/ETFs in a portfolio, and the second number represents the number of held bonds/money market funds in a portfolio. When it comes to mixing and matching in a moderate portfolio, it is important to understand this concept. For someone with a 90/10 portfolio, we would still generally consider their risk tolerance to be aggressive. As that first number goes to 80, 70, or even 60/40, that is more moderately aggressive, because there are more stocks than bonds. As soon as the number is even, a 50/50 portfolio, is perfectly moderate. As bonds take up more space than stocks in a portfolio, we go to moderately conservative, all the way back down to conservative. Mixing and matching these allocations is a very popular practice in investing for a couple of reasons. First, it keeps a portion of your money safer and always potentially increasing. And secondly, it usually causes greater diversification in a portfolio. Aggressive Investing Aggressive investing is a fantastic way to invest. This is for people who see the stock market as it is and understands it has ups and downs, and in the long run, are exposed to the highest potential annual returns than anyone else. The stock market since its inception has produced around 9-10% annualized returns on average. For those with a high-risk tolerance, being in a heavily-weighted stock/mutual fund/ETF portfolio is the perfect thing. While invested, these people will see account drops of 25-35% in some years, while also reaping the benefits of riding that rollercoaster all the way back to the top with 25-35% gains in some years. Again, this isn’t typical, but as long as your risk appetite logically understands that this could happen, in the long run, an aggressive investor will always have higher returns in their portfolio. Again, the average return of a stock market portfolio is 9-10% each year compounded. Having an advisor walking you through the emotion and logic of the stock market, and how your money could potentially be invested is a very important first step when determining your risk tolerance. Everyone is different, and there is something out there that meets your needs emotionally and logically. 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 just 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.

What You Can Control vs What You Can Not Control You have spent your entire working career accumulating wealth so you could reach this point, retirement. Conventional wisdom might suggest, now that you have reached retirement, you need to be as conservative as possible with your investments in order to preserve them for the rest of your life. But, did you know that being too conservative can create more risk to the longevity of your assets than being more aggressive? Also, withdrawing too much in retirement will limit how long your savings will last. Let us look at some different factors and scenarios together that will give you an idea and hopefully some peace of mind on how long you can expect your assets to last. There are several factors that affect the longevity of a portfolio’s assets. I like to look at it like this: what can we control and what can we not control? Factors we can control: withdrawal rates, asset allocation, taxes. Factors we cannot control: rate of return, inflation, time, and, well…taxes. In a Traditional IRA or any pre-tax account, you will need to pay income tax on any distributions taken. This needs to be considered when deciding on a proper withdrawal percentage. If you have a good mix of Pre-Tax, Roth, and Taxable assets then you can pick and choose where your withdrawals come from to limit your tax liability. For the sake of time, I will not get into that and just focus on withdrawals, inflation, returns, time, and how it pertains to asset allocation. Withdrawals, Inflation, Rate of Return, and Time On its surface, figuring out how long your savings will last is as simple as withdrawing less than what your portfolio is generating plus inflation. A common theory to ensure you never run out of money is withdrawing no more than 4% of the portfolio beginning balance at retirement. Say you have $1,000,000 and you withdraw $40,000 per year from it. How long will the savings last? In a vacuum, meaning 0% inflation and 0% rate of return, the savings would last 25 years. If you retire at 65, that gets you to age 90 before you run out of money. Not bad considering the average life expectancy for women in the United States is 79 and for men is 73. We need to factor inflation into the equation however and cannot assume everyone will pass at their expectancy (my default life expectancy for financial plans is 93 but can change to suit any client’s needs). Unfortunately, inflation is one of the factors we cannot control so we need to use an average of what we would expect. Policymakers at the Federal Reserve believe an acceptable inflation rate is around 2% or below. The current CPI as of this writing is at 7.7%. Over the last 20 years, the average inflation rate has been about 2.64%. I will use 3% as the inflation rate for this scenario. So, you have $1,000,000 and you withdraw $40,000 per year from the portfolio with a 0% rate of return and 3% year-over-year inflation; how long does the savings last? 18 years. I call this the life savings under the mattress guy scenario. So far, the longevity of the portfolio even with a 0% return does not seem that bad. I will do this scenario one more time and will add a 5% rate of return. $1,000,000 portfolio, withdrawing $40,000 per year, 3% inflation, and a 5% rate of return. How long do the savings last? 34 years. Not bad. But what if you need to withdraw more than 4%? Here is the breakdown of how long the $1,000,000 portfolio would last assuming a 5% rate of return and 3% inflation rate: 5% Withdrawal Rate: 25 years 6% Withdrawal Rate: 20 years 7% Withdrawal Rate: 16 years 8% Withdrawal Rate: 14 years 9% Withdrawal Rate: 12 years 10% Withdrawal Rate: 11 years The final factor is time. How long do you plan to live and do you want to have anything left when you die? If you are not taking any withdrawals and never intend to then theoretically your time horizon is infinite and you can be as aggressive as you want with your asset allocation. Most retirees do take withdrawals from their investments and most do not want to run out of money before they die. The need for some level of responsibility regarding asset allocation brings me to the next piece in the article, which is how different portfolio types may limit how long your savings will last. Portfolio Types and Longevity Portfolios can be broken into three categories: Conservative (Income), Balanced, and Growth. The most common portfolio for retirees is balanced with about 60% Stocks, 30% Bonds, and 10% Cash. Using historical returns from 1926 to 2020 of stocks, bonds, and cash and assuming a 5% withdrawal rate of the original balance and increasing withdrawals to account for inflation a study found that this type of balanced portfolio has a 97% probability of lasting 20 years, a 79% probability of lasting 30 years, and a 59% probability of lasting 40 years. The same study showed that a conservative portfolio (20% Stocks, 50% Bonds, 30% Cash) has an even worse probability of longevity with a 90% chance of lasting 20 years, 36% chance of lasting 30 years, and only a 12% chance of lasting 40 years. Alternatively, a growth portfolio (80% Stocks, 20% Bonds, 0% Cash) had a 96% chance of lasting 20 years, 82% chance of lasting 30 years, and 71% chance of lasting 40 years. A lot of people are risk-averse and do not like stocks or investments in general. Possibly because they do not understand investing well enough to feel comfortable taking the risk but the fact of the matter is that risk is your portfolio’s friend and it is necessary to protect your assets. If you want to learn more about your current investments or review your current investments, reach out to your advisor or let me know and I will be happy to sit down and see if we can help.

Financial Coach, who is that? Perhaps a Financial Coach is someone you have never heard of, but someone you never knew that you needed. A Financial Coach is someone who takes the time to sit down with you, review your current finances, and work with you to achieve your goals of saving money and getting out of debt. They mainly do this by helping you customize your budget and have periodic touch points with you for review. They are a person that helps keep you ACCOUNTABLE. One of their main goals for you is to help you feel more comfortable and confident with money management, by showing you ways to spend less and save more. Why work with a financial coach? Like any good coach, you would hire, be it for nutrition, fitness, a specific sport, etc., you want someone that is going to have your best interest at heart. You also want someone who has it as their goal to help keep you accountable and give you the best advice in that specific field. Money is a very emotional thing. And trying to figure out where to save or cut back in certain areas can be hard to do on your own. A Financial Coach can look at your financial situation, and help you tackle one problem at a time so it does not feel overwhelming. Over time they will help you build your confidence as you see changes happening. They will also teach you the tips, tricks, and steps on being able to accomplish your financial freedom on your own. What can you expect from meetings? Each meeting will be tailored to you and your specific needs. However, the majority of the time will be spent reviewing budgets and talking about ways you can adjust your spending from month to month to help you save to put money towards debt or to save for a long-term goal. If needed, a tailored debt snowball is created and is gone over with you, along with discussing best practices to approach your debt. We always suggest meeting with your coach at least once a month, but depending on your package, multiple meetings can be set within the same month, as well as weekly or periodic email check-ins to see how you are doing. At the end of each meeting, goals for the next meeting or check-ins are set, and a follow-up email with details, examples, articles, and outlines is sent your way to give you all the necessary tools in being successful. What are the benefits of working with a Whitaker-Myers Financial coach? When working with the financial coach at Whitaker-Myers, you are getting a coach that has gone through a rigorous online program to receive the designation of Ramsey Solutions Master Financial Coach. Not only are you getting someone who has gone through Dave Ramey’s training, but you are also getting a coach that has a team of 11 financial advisors and SmartVester Pros that they work with daily. Whitaker-Myers also focuses on having the heart of a teacher. We believe in making sure all of our clients know, and understand what they are doing with their money, and feel comfortable making educated decisions for their future. We believe in this philosophy so much; that we have made it one of our core values as a company. Through your coaching services, you will also have access to an online, wealth management system that will give you a retirement projection. This benefit allows you to see when you could potentially start investing once out of debt, and what your potential retirement plans could be for your future. Then once you are out of your debt, have saved for your emergency fund, and are ready to start investing, the team of 11 financial advisors and SmartVestor Pros will be ready to help you grow and build your wealth so you can live and give like no other. You’ll also receive a membership to Ramsey+ (a $129.99 value) for free when using the coaching services with Whitaker-Myers. How do I schedule an appointment with a financial coach? There are multiple ways you can schedule a meeting with our financial coach. You can visit the Whitaker-Myers’ website under the “Schedule a Meeting” section and view the calendar link. This will give you all the times available to meet and review your schedule to see what is best for you. You can also reach out through chat or email to schedule an appointment as well. Coaching options range from one-time specific personal finance scenario(s) with consulting hours/fees, to monthly coaching options. If you choose a monthly package option, you will be prorated for the month starting on the day of your first financial coaching meeting where suggestions and recommendations are made for you. How has working with a financial coach benefited someone? We like to look at all of our clients individually and see where we can help them be most successful with their finances. Each person has a unique situation, which means we as coaches need to look at your goals and current hurdles to find ways that help benefit you. Whether it is helping you tailor your monthly budget to cut out unnecessary expenses and allow you to save, to discussing what is the best banking option for you. We have even worked with clients as they decide to either sell or not sell their home and what is the best overall strategy for them. So far, we have been able to help clients pay off tens to thousands of dollars in current debt, to help them establish long-term emergency funds. The reactions we have heard from clients in these situations are usually how much more at peace they are with their finances (less stress, worry, and anxiety), and how much more confident they feel about making financial decisions.

The Decision to Buy or Rent: There comes a time in life when we all move out of our parent’s house – whether it’s leaving for college, getting a job and seeking independence, or simply being forced to fend for ourselves, we’ve all had that “first place of our own.” Each story is unique, just like everyone’s financial situation uniquely dictates whether they rent or buy their place of residence. There’s no question that owning a home has both its advantages and disadvantages, and the same can be said about renting. In this article we will explain some of the reasoning behind each strategy, and when it makes sense to make the leap from renting to owning a home. Why Should I Rent? While we all know that renting can have its challenges, this one is pretty simple. When you’re just getting started in the workforce and planning for the manual underwriting process, renting is usually your best and only option. It can be advantageous because you aren’t responsible for the maintenance expenses associated with your living space. Renters don’t have the threat of a major appliance replacement, furnace failure, or cracked foundation to deal with. What you pay for is the simplicity of having a place to call your own, without the financial risk associated with home ownership. In fact, if you think you have just enough to purchase a home, but won’t have any margin for those unexpected expenses, then you might want to hold off until your emergency fund can help you in the event of a crisis. Because you can call your landlord when something breaks, renters have the freedom to put cash aside for their eventual home purchase. Our friends at Ramsey Solutions refer to this as a sinking fund. The idea is to set a certain percentage of your income aside each month in order to save for a large purchase such as a car, Christmas presents, or a home. All of these situations would warrant taking advantage of a high-yield savings account or even a brokerage account (possibly using the Schwab Money Market Fund), depending on your specific objectives and timeline. Bottom Line: Renting allows you the legroom to save, save, save. When Should I Buy a House? You may like renting and have no aspiration to buy a home, or you may be itching to get your own space so you can put your own fingerprints on it. Whether you need convincing or your apartment is already boxed up, there is such a thing as good timing in the housing market. If you have been saving for a home purchase and you can afford to put down a minimum of 20% of the purchase price, then you might be ready to start house shopping. It’s also recommended that you secure a 15-year fixed-rate mortgage. Loans are helpful, but they aren’t meant to be a crutch. If you can pay off that house in 15 years, or less, then you will be well on your way to living a financially independent life. Owning a home means building equity. The principal payments are direct investments in your home, unlike rental payments that do little more than keep you off the streets. Know the numbers Right now is not the most favorable time to be securing a mortgage loan. In the current climate of rising interest rates and inflation, there have been better times to make the leap into home ownership. If you’re inclined to wait a little longer, it may be advantageous to buy at a lower interest rate a little further down the road. If you are ready to buy, make sure you can afford to pay upwards of 7% in interest on your loan. Your monthly mortgage payment will be broken down into four categories: Principal (equity) Interest Taxes Insurance premiums The recommendation is that your mortgage payment not exceed 25% of your take-home pay. Don’t just assume that because you’ve been pre-approved for a $300k loan you can afford that payment. Crunch the numbers and see if that payment falls within the 25% mark. It would be wise to pay extra toward your principal payment each month too. This will be a small price to pay which means saving thousands of dollars in interest over the course of the loan and shortening the life of the loan. With roughly 20% of U.S. retirees still paying a mortgage payment, there are steps you can take to both own a home and be mortgage free before reaching retirement. At Whitaker-Myers, we aim to help you achieve your financial goals and to live and give like no one else in retirement. If you plan to be a homeowner and you need help putting together a plan, schedule a meeting with me today.