As parents or future parents, a frequent question we encounter is: "What vehicle should I use to save for my child’s education?" Two popular—or often considered—choices are 529 college savings plans and UTMA (Uniform Transfers to Minors Act) custodial accounts. Each option comes with its own benefits, drawbacks, and trade-offs. Often, a strategic combination of the two can provide flexibility, tax efficiency, and more options. In my opinion, you should never leave your children's money just sitting in the bank. We teach our kids about the rule of 72, which states that by dividing your rate of return into 72, you can determine how long it will take to double your money. For instance, a 10% return will double your money every 7.2 years (10/72 = 7.2). However, your local bank typically offers around 1% interest on savings. There's a bank in my hometown that entices kids with gimmicks: open an account, deposit money, and spin a wheel for a small prize, while they lend out your child's $10,000 savings at 6%, earning $600 a year and paying you very little. This arrangement benefits the bank. If the money will remain untouched for 10, 15, or even 20 years, it's probably better to invest it. Options like the UTMA or the 529 can provide this opportunity. What if my child receives a birthday check from grandma? That's wonderful—you don't need a bank to cash your child's check. You can easily deposit that check into their 529 or UTMA account. Your child shouldn't visit a bank to conduct transactions until you're teaching them how to effectively manage a checking account. Avoid the misconception that a 2-year-old needs a savings account. It's important to understand that a 529 or UTMA can also be held in a savings account. Simply opening these accounts doesn't mean the funds are automatically invested. You need to actively invest the money once it's in these accounts. Therefore, we suggest consulting a Financial Advisor who can offer personalized advice suited to your specific circumstances. Below is a comparison and a framework I often use (with caveats) in working with families. What is a 529 plan? What is a UTMA? 529 Plan (Qualified Tuition Programs) A 529 plan is a tax-preferred savings vehicle created under Section 529 of the Internal Revenue Code. Contributions are made with after-tax dollars (i.e. no federal deduction, though many states offer state tax deductions or credits). You can use this tool from Scholars Edge 529 to see if your state has a tax benefit. The key benefit: tax-deferred growth, and tax-free withdrawals when used for qualified education expenses  (tuition, fees, books, supplies, and in many cases room & board). If you withdraw funds for non-qualified purposes, earnings are subject to income tax plus typically a 10% penalty. For financial aid purposes, because the 529 is usually owned by a parent, it is considered a parental asset , and its impact on aid eligibility is relatively modest (roughly 5.64% of the value is assessed in many FAFSA formulas). 529 plans often have aggregate contribution limits (which in many states are well above $300,000) and may allow contributions from multiple family members, subject to gift tax rules. UTMA (Custodial) Accounts A UTMA account (Uniform Transfers to Minors Act) is a custodial account in which an adult (the custodian) holds assets for a minor. Once the child reaches the age of majority (depending on state law), the assets become fully theirs. There is no restriction on how the money is used. Essentially, any expense that “benefits the child” is allowed (not just education). The assets and their growth are taxed annually under special rules. The first $1,350 is tax exempt (no taxes), and the next $1,350 is taxed at the child's tax rate, which is 10%. Gains after that are taxed at the parents' tax rate. Because the account is in the name of the child, for FAFSA financial aid calculations, it is considered a student asset , which hurts aid eligibility more (roughly 20–25% of the account’s value may count). There are no contribution limits specific to UTMA (though gifts above the federal gift-tax annual exclusion may trigger reporting). Why you can’t “double-dip” with education tax credits + 529 on the same tuition dollars One critical nuance many families overlook: you cannot claim the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC) on tuition dollars that are paid using 529 plan distributions. In other words, the same dollar of tuition can’t get a 529 tax benefit and  be used to generate a tax credit. AOTC and LLC income limits For the American Opportunity Tax Credit: The full credit phases out for taxpayers with Modified Adjusted Gross Income (MAGI) between $80,000 and $90,000 (single filers) and $160,000 to $180,000 (married filing jointly). Above those thresholds, you lose eligibility. The Lifetime Learning Credit has the same phase-out ranges ($80,000 to $90,000 for single, $160,000 to $180,000 for married). If your income is above those top ends, you cannot claim the credit at all. Because of this limitation, in higher-income families, funding entirely via 529 may make sense. But in “middle” income or borderline cases, you might want to preserve flexibility so you can use the tax credits. As a practical example, if you pay a child’s tuition of $8,000 in a given year: If you pay it via a 529 withdrawal, that $8,000 is “used up” in the sense that it cannot also be used to claim an education tax credit. If instead you pay out-of-pocket (or from a taxable account) the first $4,000 and claim the AOTC on that, and perhaps use 529 withdrawals or other sources for the remainder, you may get more total tax benefit—especially if your income keeps you within the credit phase-out range. The AOTC and LLC are pretty powerful tax credits. The AOTC, for example, is a maximum of a $2,500 annual credit (per eligible student) for the first $4,000 of qualified expenses, and even 40% of the credit is refundable (meaning if you have no tax liability, the IRS pays you). Because credit works for the first $4,000 of qualified educational expenses, perhaps a $4,000 payment from your UTMA (which wouldn't only cost you $1,500 after your tax credits) and the balance from your 529 would optimize your situation. Thus, blindly “filling up” a 529 account and using it for all of college costs might leave money on the table if you are in a position to benefit from AOTC or LLC. My Guiding Strategy: Use UTMA early, then shift to 529 In working with many families, I often recommend a hybrid, staged approach, though always with the caveat: each family’s situation (income, estate plan, risk tolerance, anticipated college cost, state tax environment) can change the calculus. Here’s a sketch of the approach I often favor: Begin with UTMA (custodial) funding for the early years, targeting a specific threshold (e.g., $10,000–$20,000). In those early years, the growth in a UTMA (assuming good investment returns) is often small relative to the child’s tax brackets and possibly below the kiddie tax thresholds. For example, a 10% return on a $5,000 account balance is $500. This is under the $1,350 that is tax-free; therefore, you would get the same benefit you get in a 529 plan (tax-free growth), but you wouldn't be limited to using the funds for educational purposes. You retain full flexibility: the money in UTMA isn’t forced to be used for education. If the child doesn’t go to college, or if circumstances change, you can repurpose it for a home down payment, business startup, or other purposes. You preserve the ability to use the education tax credits (AOTC or LLC) on tuition dollars because you haven’t locked all funds into a 529 yet. Once the UTMA reaches the threshold (say $10k–$20k), begin shifting new savings toward a 529, gradually increasing the proportion allocated to the 529 over time. The reason: the compounding and tax-free benefits of the 529 become more powerful as the balance grows. If desired, convert or “roll” portions of the UTMA into a 529 (if allowed by your state) in years when the tax impact is minimal and before the FAFSA/aid calculation year. But beware: converting/cashing out UTMA for 529 contributions triggers capital gains and unearned income in that year, which may push some income into the kiddie tax or higher brackets. It may be smart to spread the realization of gains from the UTMA over several years, to avoid “bunching” too much income in one year. Why this blend works: you get some flexibility and tax credit optionality early, and then lean into the tax-advantaged compounding of the 529 later. It’s a balance. Illustrative savings goal: $166/month from birth To show how meaningful this strategy can be, consider this hypothetical: Suppose you commit $166/month starting at your child’s birth for 18 years. If the portfolio earns 10% annually, the future value is roughly $98,900 At 8% return, it would grow to about $79,600 At 6% return, it would hit around $64,800 These are strong sums—especially given the many options available to your child (college, trade school, first home, etc.). If you began with a UTMA cushion of, say, up to $10–$20k, the portion still invested in the 529 would benefit from decades of compounding at tax-free growth. Key Trade-Offs & Risks to Watch Kiddie tax & unearned income: If unearned income in a UTMA is larger than the $2,700 ($1,350 at 0% and $1,350 at 10%), it may be taxed at the parent’s marginal rate under the kiddie tax rules. Financial aid impact: UTMA assets are more heavily penalized in FAFSA calculations (student asset) than 529s (parental asset). That can significantly reduce need-based aid. Conversion tax liability: If you convert from a UTMA to a 529, any capital gains must be realized and reported, which can trigger higher tax costs if done poorly. State tax differences: Some states provide deductions or credits for contributions to in-state 529 plans—benefits UTMA doesn’t enjoy. Changing plans : If your child decides not to attend college, 529 funds not used for education could face penalties and taxes (unless you roll to another beneficiary or use under certain permitted options). There is also now a provision that allows you to move 529 plans to a child's Roth IRA after the funds have been in the 529 plan for 15 years. Income limitations on tax credits: If your family income is high (above the phase-out thresholds), the benefit of preserving options for credits may be minimal, and an all-529 strategy may be more attractive. Putting it all together: What to consider when designing your plan When crafting a savings strategy for education, here are key questions to ask: What is your current and projected income? If your income is likely above or close to the AOTC/LLC phase-out, you may not get much benefit from preserving credit eligibility. How much flexibility do you want? Do you want to ensure the funds are used for education, or do you want the option to repurpose them? If you value using them for purposes other than education, you would lean more towards the UTMA. What is your risk tolerance and investment preference? The more years remain and the more willing you are to invest the account into stocks, the more the 529’s tax-free growth becomes compelling. How will this interact with your larger financial plan? College funding is one goal among many (retirement, estate planning, liquidity, etc.). You don’t want to over-prioritize a college account at the expense of other goals. What is your state’s 529 tax incentive? If your state offers a deduction or credit for 529 contributions, that tilts the balance more in favor of 529. When to convert UTMA to 529, if ever? Plan ahead for capital gains, timing around FAFSA, etc. In many cases, a hybrid “UTMA-first, then shift to 529” strategy gives you a “best of both worlds” pathway—especially for families in the middle-income range who are trying to maximize tax credits and maintain flexibility.

At a meeting I recently attended in Chicago on October 9, 2025, Morningstar’s research team provided invaluable insights into the strategy of wide moat investing , highlighting its strategic advantages. The session was conducted by Morningstar's Director of Equity Research (North America) Damian Conover , and Head of Global Equity Research Dan Rohr , who both contributed extensive experience and analytical expertise. Understanding the Moat Advantage A “moat” refers to a company’s ability to maintain competitive advantages over its peers, protecting its long-term profitability and market share. Morningstar’s focus on identifying firms with strong moats is integral to achieving investor success, aligning with their mission to empower investors. Structure and Expertise : Damian Conover, responsible for Morningstar’s North American equity research, highlighted the organization’s robust analyst community, which boasts an average of 16 years of industry experience. This level of expertise is crucial for accurately assessing a company’s moat. Commitment to Quality : Morningstar’s detailed process for assigning moat ratings involves a combination of foundational analysis and intense review by the Moat Committee. This thorough vetting ensures that only companies with sustainable advantages are classified as having wide moats, providing a reliable choice for long-term investments. The Research Process: Driving Long-term Value Structured Evaluation : Dan Rohr underscored the importance of consistency, fairness, and transparency in evaluating analyst performance. These principles ensure that the research process remains unbiased and focused on long-term investor interests. Performance and Incentives : The Ratings Achievement Award, which grants restricted stock based on long-term call efficacy, reflects Morningstar’s commitment to prioritizing accurate evaluations over short-term market movements. This focus on long-term outcomes aligns incentives to ensure analysts strive for the most accurate and beneficial insights for investors. The Moat Investing Edge Independence and Objectivity : Morningstar’s analysts adopt an independent stance, avoiding corporate influence that may cloud judgment. This objectivity enables them to provide clear and reliable investment recommendations, driving better outcomes for investors seeking to build a portfolio supported by robust fundamental research. Long-term Focus : The research emphasizes the importance of long-term success over quarter-to-quarter performance. By focusing on sustainable advantages and intrinsic value, investors can potentially achieve consistent, above-market returns with reduced risk. Conclusion The insights shared during the meeting highlight how wide moat investing, backed by rigorous research and a focus on long-term success, can serve as a powerful strategy in the financial world. For investors interested in building resilient portfolios, Morningstar’s methodologies offer a reliable pathway to identifying and investing in companies poised for enduring success. The Van Eck Morningstar Wide MOAT ETF offers clients exposure to companies with enduring competitive edges. This ETF emphasizes not only these sustainable advantages but also considers valuations—specifically the price paid for stocks relative to their earnings—as important as these WIDE MOATs. Our team values this approach because from 2007 to this year, the MOAT Focus Index has surpassed the S&P 500 in 91% of five-year rolling periods and 100% of ten-year rolling periods. For more information on wide moat investing and Morningstar’s research methodologies, please talk with your Whitaker-Myers Wealth Managers Financial Advisor .

If you’ve owned your home for several years, there’s a good chance the value of your property has increased over that period (especially in a high-demand area). Selling a home with a large capital gain can eat into years of equity by way of taxes to the IRS, which is why some homeowners choose to stay in the same home indefinitely. However, a new bill has been introduced in Congress that could change that in a big way.   The “Current” Law from 1997 Current IRS rules state that if you sell your primary residence, you can exclude up to $250,000 in capital gains if you’re filing single and up to $500,000 if you’re married filing jointly.   To qualify, you must have lived in the home for two of the last five years. The IRS calls this a section 121 exclusion. It means you have to have owned the home for at least two years (730 days) and lived in that home as your primary residence for at least two years (730 days) of the last five years.   These thresholds were set in place in 1997 by the Taxpayer Relief Act of 1997 and have remained unchanged since. Inflation hasn’t been taken into consideration, and the reality is that home prices have more than tripled in some markets. The issue is that more homeowners are crossing the exclusion line, especially in high-cost states like New York and California.   The Proposed Change: Doubling the Exclusion or Eliminating Capital Gains on Home Sales Entirely There are two bills currently introduced in the House of Representatives:   H.R. 1340 – More Homes on the Market Act.  H.R. 1340 was introduced on February 12, 2025, by Rep. Jimmy Panetta (H.R.-CA-19). This bill is the reintroduction of H.R. 1321, which died with the end of the 118 th  Congress. This bill carries similar rules to the current capital gains exclusion, with two big changes:   First, it aims to double the current exclusion to $500,000 for individuals filing single and $1,000,000 for people married filing jointly. Secondly, the exclusion would adjust to inflation starting from the year 2024 based on a specific cost-of-living formula.   The goal of H.R. 1340 is to incentivize homeowners to sell their homes, which would in turn increase the housing supply and possibly alleviate inflated housing prices.   H.R. 4327 - No Tax on Homes Act (To amend the Internal Revenue Code of 1986 to eliminate the dollar limitations on the exclusion of gain from sales of principal residences, and for other purposes)  H.R. 4327 was introduced on July 10, 2025 by Rep. Marjorie Taylor Greene (R-GA-14). The main component of this bill is that it would eliminate the capital gains exclusion. This would be great, however, I don’t think this will make it very far down the road to being signed into July 10, 2025, by Rep. Marjorie Taylor Greene (R-GA-14) law. It would seem to have been created more so as a media attention grabber.   Here’s a Real-World Example of H.R. 1340 – More Homes on the Market Act Let’s say you’re a married couple who bought your home in 1998 for $300,000 and now you’re selling it for $1.2 million—your capital gain: $900,000.   Under current law, $500,000 is tax-free, but the remaining $400,000 is taxable. Under the new proposal, the full $900,000 could be tax-free. Depending on your income bracket, that could mean saving tens of thousands of dollars in taxes.   Why Now? What’s Next? What Can You Do? While the No Tax on Homes Act is a political stunt, the More Homes on the Market Act may have some traction. H.R. 1340 is intended to unlock more housing inventory, especially from retirees or long-time homeowners who are hesitant to sell due to tax consequences. The passing of H.R. 1340 could help ease the currently tight housing supply, giving sellers more flexibility to move, downsize, or relocate.   If you’ve ever seen Schoolhouse Rock “I’m Just a Bill,” you would know that the proposed legislation needs to make it out of committee and pass through both houses of Congress and then be signed into law by the President. Although the More Homes on the Market Act from the 118 th Congress failed, this one may be gaining some bipartisan traction.   What you can do now is track the bill’s progress if you plan to sell your home. Talk to a financial advisor or tax professional about capital gains on real estate and how it may affect you. If you do plan to sell soon, it may be worth waiting to see what happens to these bills.

Many people dream of retirement as a “set it and forget it” phase of life, but the reality is, staying on top of changes in the law can make a significant impact on how much you save and when you can access your money. The SECURE 2.0 Act   is a perfect example of why keeping your retirement plan up to date matters. This law has updated contribution limits and shifted the required minimum distribution (RMD)   age. That means not only can you potentially put more money away each year, but you also get more time before you’re required to start taking withdrawals from your pre-tax accounts. Both of these changes can have a major impact on your long-term strategy. Bigger Contribution Limits in 2025 Let’s start with contributions. For 2025, the standard 401(k), 403(b), and 457(b) limit has been increased to $23,500 , up from $23,000 in 2024. For folks aged 50 and older, the traditional catch-up contribution of $7,500 hasn’t changed. That means you can put away a total of $31,000  if you’re over 50. But here’s something new and exciting: SECURE 2.0 introduced a “super catch-up”  for people aged 60–63. This allows you to contribute $11,250  on top of your standard limit, bringing the total to $34,750 . This is especially helpful for anyone who may have started saving later in life or who wants to make up for earlier shortfalls. Keep in mind, though, that the super catch-up is only available in employer plans that have opted into this enhanced feature. Catch-Up Contributions for Higher Earners If you earn more than $145,000 , there’s a new wrinkle: any catch-up contributions you make must now be Roth contributions , meaning they’re after-tax dollars. This is something to plan for if you’re in that income bracket and want to maximize your retirement savings efficiently. RMD Changes – More Time to Convert to Roth One of the biggest changes in SECURE 2.0 is the RMD age bump . Previously, you had to start taking withdrawals at 72. Now, the age has increased to 73 , and it will rise again to 75 in 2033. Here’s an example: if you turn 73 in 2024, your first RMD  is due by April 1, 2025, and your second RMD  is due by December 31, 2025. Why does this matter? The extra 1–3 years before RMDs begin gives you a bigger window for Roth conversions . Having more time allows you to: 1.    Spread conversions over multiple years, avoiding a jump into higher tax brackets. 2.    Intentionally fill lower tax brackets before pre-tax distributions start, potentially saving thousands in taxes over time. IRA Contribution Limits Remain Steady Not everything has changed. The annual contribution limit  for traditional and Roth IRAs is still $7,000  for 2025, with an extra $1,000 catch-up for those 50 and older. Conclusion SECURE 2.0 gives retirees and pre-retirees more flexibility and power over their retirement savings. Whether it’s the super catch-up, Roth contribution requirements, or the delayed RMD age, understanding these changes can help you save more efficiently, manage your tax bracket, and ultimately make your retirement years more secure. If you're unsure where to start or want to learn how SECURE 2.0 may affect your finances, don’t hesitate to connect with your financial advisor  today.

Tammi and I have been avid fans of Dave Ramsey and Ramsey Solutions  for more than 30 years. We were married at age 20 and found ourselves in a challenging financial situation. Fortunately, we discovered Dave Ramsey, in fact, on a clearance rack cassette tape in an Indianapolis bookstore. We listened to his advice and were captivated; it changed our lives forever. This journey transformed our finances, our marriage, and redirected my professional career.   Today, I work as a Financial Advisor  at Whitaker-Myers Wealth Managers  and hold the additional designation of Certified Ramsey Solutions Master Financial Coach. Over the past 15+ years, I have had the privilege of helping many hundreds of clients with their money management and financial planning.   Many earn good incomes, yet we struggle to manage our God-given resources effectively. Who needs solid money management skills? We all do. Here are some more lessons learned regarding our money management.  Don’t fall for these pitfalls.   Money Management Pitfalls   # 1 – Avoid Debt Financing Proverbs 22:7 states that “the borrower is slave to the lender.”  When we owe a debt, we are not actually in control of our finances or our labor.  My wife and I lived this way for years before waking up and changing our lives forever.  We lived on deferred interest financing, such as 12-month “same as cash.”  We also had a USAA Credit Card with 0% interest for 12 months.  We purchased a lawn mower, an exercise bike, and consolidated our debt on this credit card.  We did not pay the full balance on the card within the 12 months and suffered the consequences.  The high retroactive interest charge at the end of the promotional period was brutal.  Please do not fall for it like we did.  Learn from our mistakes.  It is not worth it. My wife and I have learned to be patient, save money, and then carefully proceed with the purchase if it is still important.    # 2 – A Strong Marital Bond Ecclesiastes 4: 9-11 states, “Two are better than one….”  Tammi and I eventually learned the importance of a strong marital bond and focused on working together.  We struggled with this early in our marriage.  We later heard Dave Ramsey use the metaphor that two oxen yoked together can produce exponentially greater power than they could individually.  We learned to work together not only on our finances but also while raising our children and caring for each other. Avoid the pitfall of trying to do it alone. You are both in charge of your destiny.  Work together with love and respect.   # 3 – Start Investing ASAP 2 Corinthians 9:6 states, “whoever sows sparingly will also reap sparingly.”  We learned that it is important to begin our investment journey as early as possible.  The “Rule of 72” helps us to calculate the number of years needed to double our retirement portfolio.  At an average annual market rate of return of 10%, it will take 7.2 years for our investment to double.  So, Tammi and I realized that the sooner we began, the more 7.2-year increments we have before needing the funds.  This knowledge helped us to become laser-focused and gazelle-intense about making it to baby step # 4 (15% into retirement).  Avoid the pitfall of delaying your investment journey.   Focus, work together, and start.   Would You Like to Learn More Effective Money Management Ideas? As I mentioned earlier, one of my primary goals as a Financial Advisor is to help clients manage their finances more effectively. If you’d like to explore more, please use my calendar link  to schedule an introductory session.

The question of whether to hire a financial advisor arises many times throughout life—when starting a career, seeking guidance from your parents, buying a home, changing jobs, starting a family, and beyond.   What do these have in common?  They are all life-impacting events that significantly impact your personal finances.  Having a financial advisor in your corner may be exactly what you need to implement important actions and recommendations to save and protect for the future. We will discuss how financial advisors work, what they charge, and if it’s worth it.   To Fee or not to Fee   The way financial advisors get paid can feel like throwing darts blindfolded—it’s all over the place. That’s why it’s important to ask the right questions to get the full picture.   One of the most important is: How are you compensated?  Advisors may be paid in many different ways. Common answers you’ll hear include, ‘We charge a percentage of the assets we manage,’ or, ‘We charge a one-time or annual fee for creating your financial plan.   If you do not hear those first two things said, make sure to ask: 1.     Are you able to sell me commissionable products? 2.     What are your conflicts of interest? o   The conflicts of interest usually appear in the form of their recommendations at the end of your meetings   Products like Whole Life insurance  and proprietary funds such as American Funds' “Growth Fund of America” are products and investments that pay a commission to the salespeople.   While paying an advisory fee is not unusual, the question to you might be “Is it worth it?”.    We encourage you to consider the following: 1.     Do you value professional advice and do you feel it’s worth the fee? 2.     Do you have the time to implement your own financial plan?  3.     Do you have your tax plan in order?  4.     Have you spoken to an estate planning attorney about setting up your Will or Trust?  5.     Do you know which one you should choose between the two?  6.     Have you found your favorite low-cost ETFs and mutual funds that represent Dave Ramsey’s 4 categories of investing?  7.     Have you discovered your own investment philosophy?  8.     Do you have life insurance?  9.     Are you confident in your coverage amount?  10.  Do you know what is needed in Life coverage and for how long?  11.  Are you adequately protecting your greatest asset - your income - in the case of a long-term disability? 12.  Will you know when you can retire? 13.  Do you know your monthly expenses? 14.  Do you know what your income floor needs to be in retirement?   I am, of course, asking this in a bit of a tongue-in-cheek manner because I would venture to guess that those without a financial advisor would not know the answer to these questions.   Financial advisors charge their fees for the service they provide to you, which helps you answer important questions about your situation and helps solve those problems.   Value Add   Is value truly being added to my situation?  Well, Vanguard believes so, and so do we.  On investments alone, having a financial advisor to navigate the emotions and the cyclical nature of investing can add value.  Some clients balk at the idea of paying 1.25-1.5% of their assets on an annual asset fee.  Here is why that is not the right perspective:   Vanguard uses variables like suitable asset allocation using broadly diversified funds/ETFs, Cost-effective implementation (expense ratios), rebalancing, behavioral coaching, tax allowances and asset location, withdrawal order for client spending, and total-return versus income investing.  These variables, when deployed by a financial advisor, have been shown to improve average annual returns by about 3%   Financial Planning & Asset Management   Financial Planning and asset management often go hand in hand.  In the top paragraph, entering a financial planning conversation would many times include getting those numerous questions answered.  Sometimes people want to limit their scope of engagement to investment advice.   Find a financial advisor who can do both.  If you want to simplify your relationship with investment management, great.  If you just want advice on how to get out of debt, all the better.  If you want a truly comprehensive financial plan—one that addresses investments, retirement, insurance, taxes, and estate planning—you’ll have every aspect of your financial life covered and your biggest questions answered.   Many times, firms include financial planning with their asset management fee.  Sometimes companies charge separately for a financial plan, and sometimes that is your only fee, a fee for advice.   Conclusion   There are many questions to ask when finding the right advisor, and my hope with this article is for you to be better prepared when deciding whether to hire or not to hire that financial advisor.   Hiring a financial advisor would be worth it  -  coming from a financial advisor (there is my conflict of interest).  All jokes aside, considering the 3% potential value add from your investments and the comprehensive review of your financial life by a professional, it is more than worth it.   If you're unsure where to start, don’t hesitate to contact one of our financial advisors  today. Having a team of advisors on retainer and speed dial to help navigate your financial life is quite a benefit.  Take advantage of this service today.

Understanding the 50/30/20 Budget Rule   The 50/30/20 budget rule is a straightforward framework for managing your finances. It divides your income into three main categories: 50% for needs, 30% for wants, and 20% for savings and investments— assuming you are debt-free .   For instance, if you take home a monthly paycheck of $5,000, your budget will look like this:   - $2,500 (50%) for Needs: This covers essentials such as housing, utilities, groceries, and transportation. - $1,500 (30%) for Wants: This includes non-essentials like dining out, entertainment, and hobbies. - $1,000 (20%) for Savings and Investments: This amount is crucial for building wealth and planning for retirement.   If your financial situation only allows for an 80/20 budget, you may need to adjust your spending priorities. In this case, 80% of your income is allocated to needs and wants, while 20% goes toward savings and investments. Using the same $5,000 paycheck example, your budget could be structured as follows:   - $3,250 (65%) for Needs: Adjusted to ensure all essentials are met. - $750 (15%) for Wants: A reduced amount to accommodate higher needs. - $1,000 (20%) for Savings and Investments: This portion remains unchanged, as prioritizing your future financial health is vital.   Given the rising cost of living, it may be necessary to trim your wants further and allocate more of the 80% to your essential needs. However, the 20% earmarked for savings and investments should always be a priority, as it supports your retirement goals and wealth-building efforts.   If you need help determining your budget, calculating specific amounts, or categorizing your expenses, reach out to our Financial Coaching Team, Joe Mains   or Jonah Kearns . Additionally, if you’re looking to plan for retirement, don’t hesitate to contact one of our SmartVestor Pros   to get your plan underway!

For high-income earners, backdoor Roth IRA contributions   are a powerful way to build tax-free retirement savings. On a separate note, rolling over an old 401(k)  into an IRA can also be a smart move for better investment options and lower fees. However, when these two strategies intersect, the outcome can either work in your favor—or create an unexpected tax bill—understanding why  is critical before making a move. The Backdoor Roth in Brief The backdoor Roth IRA allows taxpayers above income limits to fund a Roth account by: Making a non-deductible contribution to a traditional IRA. Converting that contribution to a Roth IRA. Because the contribution is after-tax and converted quickly, the process is usually tax-free. This strategy is popular because Roth accounts offer tax-free growth and no required minimum distributions (RMDs), making them a cornerstone of long-term planning for high earners. Where Things Go Wrong Rolling a 401(k) into a traditional IRA introduces pre-tax dollars into the mix. When you later convert funds to a Roth, the IRS applies the  pro-rata rule (aka the aggregation rule)   across all your IRAs—not just the one you contributed to. Formula:  after-tax contributions ÷ total IRA balance = tax-free percentage. Example: You contributed $7K this year in after-tax contributions to your Traditional IRA to then “backdoor” to your Roth IRA You also made a $100K pre-tax rollover from an old employer into your Traditional IRA, or even a separate Rollover IRA Only about 6.5% of your conversion is tax-free, and 93.5%  of your conversion is taxable! This could turn what should have been a tax-efficient move into a costly surprise. Why Growth Makes It Worse A 401(k) rollover doesn’t just bring contributions—it brings years of market growth. That growth, while positive for your portfolio, increases the taxable portion of any Roth conversion. The larger your IRA balance, the smaller the tax-free percentage of your conversion. This is why timing and account structure are crucial when combining these strategies. When a Rollover Still Makes Sense Despite the risks, there are situations where rolling over a 401(k) into an IRA is still beneficial: Better investment options or lower fees:  Many 401(k) plans have limited menus or high costs. Account consolidation:  Combining multiple old retirement plans into a single IRA can simplify management and bring peace of mind, which for some investors may be a higher priority than optimizing for tax efficiency. Strategic Roth conversion:  Converting the entire IRA in a low-income year can make sense for long-term tax-free growth. No future backdoor Roth plans:  If you don’t intend to use the backdoor Roth strategy in the future, the pro-rata issue becomes irrelevant! The Bottom Line Both strategies can be valuable—but not always together. Before rolling over a 401(k) or executing a backdoor Roth, consult a qualified financial professional .  Proper planning can help you avoid unnecessary taxes and make the most of these powerful tools.

We are honored to share that Whitaker-Myers Wealth Managers has once again been named to ETF.com ’s prestigious list of the “Top 50 RIA Firms in the United States.” This marks the second consecutive year that our firm has received this recognition, a testament to our continued commitment to expertise, growth, and leadership in helping clients navigate the ever-evolving world of Exchange Traded Funds (ETFs) . ETF.com ’s annual Top 50 list highlights advisory firms across the country that have demonstrated exceptional knowledge and application of ETFs in portfolio construction, as well as meaningful impact in serving their clients. To be included among such an accomplished group of peers is both humbling and energizing for our team. What This Recognition Means for Our Clients At Whitaker-Myers Wealth Managers, we believe investing doesn’t need to be complicated—it needs to be intentional. ETFs provide us with a powerful, flexible, and cost-efficient tool to help our clients pursue their financial goals. This award validates the work we do every day to combine world-class research, tax-aware planning, and personalized advice with ETF-based strategies that help clients invest wisely for the long term. This honor also reflects our mission: to serve with the heart of a teacher , providing clarity and confidence in a complex financial world. Recognition from ETF.com affirms that our approach is not only resonating with clients, but also making a mark across the broader advisory industry. Looking Ahead As we celebrate this recognition, our focus remains on the future. With markets constantly evolving, we will continue to adapt, innovate, and stand alongside our clients with wisdom, discipline, and unwavering fiduciary care. We are deeply grateful to our clients, colleagues, and partners who make this possible. Thank you for trusting us with your financial journey. About the ETF.com Top 50 List All brokers and RIA firms included in ETF.com ’s Top 50 RIA Firms list have been verified through FINRA/SEC. The ETF.com Leaders list is meant to be a starting point for all potential clients searching for an advisor that utilizes ETFs in portfolios. Clients are encouraged to vet credentials and interview multiple professionals to get a full sense of their approach to investing, financial planning, and more. While advisors and firms have been checked, clients should double-check any and all metrics for any advisor they consider, as they were self-reported. No fee or compensation was provided or required for consideration or inclusion on this list. All individuals or entities listed were selected based solely on merit, publicly available information, and/or information provided directly by applicants. 👉 You can view the full list of honorees here: ETF.com Top 50 Firms .

September signals a new school year and, for parents of high school seniors, an important crossroads: preparing your student for college  without sabotaging your own financial future. The first step is to know the real cost of college—before anyone signs a single loan document. Use each school’s Net Price Calculator  to estimate out-of-pocket costs and build your family’s budget around that number. Only consider schools you can pay for with a mix of savings, cash flow, scholarships, and grants. Steer clear of loans whenever possible; debt is not a graduation gift. Encourage your student to meet with their school counselor early. Counselors can guide them through applications, deadlines, and financial aid options. Create a written calendar of every key date—test registrations, application cutoffs, scholarship deadlines—so nothing sneaks up on you. Test scores still matter, especially for merit scholarships. If your student’s SAT or ACT score could use a boost, schedule a retake this fall and pair it with focused practice. Scholarships beat loans every time. Get ready to file the FAFSA as soon as it opens, and if a college requires the CSS Profile, gather documents ahead of time. Some schools may still offer tuition breaks for families with multiple students in college, so be sure to ask. Ramsey Tip: If a school’s cost doesn’t fit your budget, move on—no “dream school” is worth decades of debt. Finally, avoid letting interest pile up. If you or your student already have federal loans in process, make small interest payments as soon as the funds are disbursed. Better yet, work hard to cover college without borrowing: apply for scholarships, work part-time, and choose affordable schools. College is a launch pad, not a financial anchor. Plan wisely, live on a written budget, and teach your student to pursue higher education with clear eyes and a debt-free mindset. Enjoy these last warm weeks knowing you’re steering your family toward financial peace.

In July of 2025, Chief Financial Planning Officer Tim Hilterman  wrote an article highlighting some of the changes to the tax law  in the recent “Big Beautiful Bill.” In this article, we’re going below deck and exploring one of those changes in more detail – the Senior Tax Bonus. A key feature of this bill is what’s being called the senior bonus, or senior deduction. Beginning in 2025 and running through 2028, taxpayers aged 65 or older can take an additional “bonus” deduction of $6,000 for single filers and $12,000 for those married filing jointly. Functionally, this is like ordering a stack of three pancakes and getting a fourth. This bonus deduction stacks on top of the normal (also recently changed) standard deduction . Here is what the bonus deduction, stacked with the standard deduction, could look like:   Standard Deduction for 2025 · Single (65+): $15,750 o   + $6,000 Senior Deduction o + $2,000 extra deduction = Total Deduction of $23,750 · Married Joint (both 65+): $31,500 o   + $6,000 Senior Deduction ($12,000 total) o  + $1,600 extra deduction per person ($3,200) = Total Deduction of $46,700   This is available whether or not you itemize or take the standard deduction. Still, it is important to note that there is a phase-out that applies for those above certain Modified Adjusted Gross Income (MAGI) thresholds. If you fall in one of these phase-out windows, your bonus deduction goes away: ·         Single: $75,000-$175,000 ·         Married Joint: $150,000-$250,000   What It Means for Seniors This change could mean significant tax relief for many retirees. A married couple over the age of 65 will be able to deduct $46,700 before paying a dime of federal taxes, potentially resulting in zero federal tax on social security for up to 88% of people. This is a 12% increase in the number of people who could be paying no tax on social security income.   Because this bonus is available alongside itemization, retirees get the benefit of writing off things like donations, mortgage interest, etc., that would not pair with taking the standard deduction, which of course can’t be claimed if you itemize. This also encourages some older folks to continue earning if needed, since the bonus deduction reduces taxes on that earned income as well, to some degree.   Examples: · Single (65+): AGI =   $85,000 o   Standard Deduction: $15,750 o   Senior extra:  $2,000 o   Bonus deduction:  $5,400 (phased) =  Total Deduction: $23,150   · Married Joint (both 65+) : AGI + Social Security = $72,000 o   Get full $12,000 senior bonus deduction and likely owe little to no federal income tax.   The second example above is, in essence, the long-promised “no tax on social security.” It certainly isn’t a broad-sweeping no-tax on social security for all, but it can net out to such a reality for those people in certain income situations, in part, because of the new bonus deduction.   Key Highlights To wrap up, let’s do a quick recap on this bonus deduction: · Most eligible seniors will see a reduction in their tax bill o   Many Americans in the right situations will end up owing little to no taxes · Works with itemization o   Unlike other deductions, this bonus works in conjunction with itemized deductions · Income Thresholds o   This makes planning important when it comes to MAGI · Short-Term o   This is set to expire after 2028, making it a brief window to maximize.   If you want to learn more about the impact of the recent tax bill or have other questions about taxes, reach out to our CPA, Kage Rush . Kage and Tim also did a recent webinar going over the One Big Beautiful Bill, discussing the changes. You can catch the replay on our YouTube Channel and watch other videos created by our team. Lastly, don’t forget to schedule a meeting with your financial advisor to talk more holistically about your savings strategy and overall plan for retirement.

Did you know that as an Ohio resident, you have the power to decide where a portion of your state tax dollars go? Thanks to the Ohio Scholarship Granting Organization (SGO) tax credit, you can choose to support local Christian schools instead of sending all of those dollars to the state government. This tax credit gives you a dollar-for-dollar reduction in your Ohio state income taxes—up to $750 per individual taxpayer or $1,500 if you're married (by each spouse individually taking the $750 credit)—when you contribute to scholarships through a certified SGO like the Ohio Christian Education Network (OCEN) SGO . That means you can redirect your tax dollars to help fund scholarships for students in need at Christian schools across Ohio. Your gift doesn’t cost you anything extra—it simply allows you to choose whether your tax dollars support government spending or give a child access to Christian education. Why Tax Credits Are More Powerful Than Deductions It’s essential to understand the difference between a tax credit and a tax deduction. A deduction  lowers your taxable income, which only reduces your tax bill by the percentage of your tax rate. In contrast, a credit  directly reduces the amount of taxes you owe—dollar for dollar. Example:  If you donate $750 to a qualified charity and you’re in the 25% tax bracket, a deduction saves you about $187.50 in taxes ($750 x 25%). But with the Ohio SGO tax credit, that same $750 donation reduces your Ohio tax bill by the full $750. That’s why this program is so powerful—it makes your donation essentially “free,” while giving you the ability to direct your dollars toward a cause you believe in. Kage Rush, CPA of Whitaker-Myers Tax Advisors , explains it this way: “A tax credit is always more valuable than a deduction because it reduces your taxes dollar-for-dollar. With Ohio’s SGO program, you’re not only lowering your state tax bill—you’re also choosing to support Christian education directly. It’s one of the rare opportunities in tax planning where doing good and saving money align perfectly.” Keep in mind, this tax credit is nonrefundable , so you need to ensure with your tax professional that you will at least owe, $750 or $1,500 (if married and both spouses claim the credit) in state income taxes. Otherwise, you would only want to give up to the amount of state income tax you owe. Why School Choice Matters School choice is about giving families—especially those with lower incomes—the freedom to select the education that best fits their child’s needs. Too often, a child’s educational opportunities are limited by their zip code or family income. The SGO tax credit helps level the playing field by making Christian education more affordable for families who would otherwise be unable to access it. By participating, you empower parents to make choices that reflect their values and provide their children with the best opportunities for academic and personal growth. Derric Taylor , Accountant at Whitaker-Myers Tax Advisors , reflects on his own experience: “Christian education at Mansfield Christian School and Cedarville University played a foundational role in shaping who I am today. It provided me not only with a solid academic foundation but also with a biblical worldview that has guided my personal life and professional career. Supporting school choice means giving more students the same opportunity to grow academically and spiritually in an environment that points them to God.” The Importance of a Christian Worldview We live in a world where many of society’s struggles stem from a rejection of God and His authority. Without a foundation rooted in His truth, moral clarity can quickly fade. Christian schools provide not only strong academics, but also a worldview that points students to the Lord as the source of truth, hope, and purpose. Supporting Christian education means supporting the training of young men and women who will carry those values into their families, workplaces, and communities. As Dr. Cy Smith, Superintendent of Mansfield Christian School and host of the Clearly Christian  podcast, reminds us: "Students will adopt the worldview that's presented in front of them in the classroom, and nothing our kids experience today is value-neutral, not even school. Either they are learning about the world from God's perspective, or they are not. The only way to turn things around in our country is to train the next generation to lead with a biblical worldview, and the greatest hope we have to get there is Christian education." You can explore more of Dr. Smith’s insights on shaping a biblical worldview through his podcast: Clearly Christian with Dr. Cy Smith . How to Donate Donating is simple and only takes a few minutes: Go to OCEN’s Donation Portal . Create an account (a quick and easy process). Click “Donate Now”  and fill out your personal information. Select the Christian school(s) you would like to support. Choose your payment method—either mail a check or pay online with a debit/credit card. Submit your donation. Through your account, you’ll be able to view past donations and download tax receipts. For tax credit purposes, OCEN SGO’s tax ID number is 31-1787824 . Partner With Whitaker-Myers Tax Advisors At Whitaker-Myers Tax Advisors , we believe in making tax planning simple, effective, and meaningful. Our team can help you take advantage of this SGO credit and ensure it is correctly reflected on your tax return. We’ll guide you through the process so you can confidently know that your dollars are working for both your financial benefit and the future of Christian education. By working with us, filing your taxes becomes more than a routine chore—it becomes a chance to make a lasting impact. Additionally, it helps our Financial Advisors better understand your situation, enabling them to provide more specific and impactful advice. Let us help you make the most of this incredible opportunity to lower your tax bill while investing in Ohio’s next generation.