The importance of meal planning As important as an exercise program is, the same importance is placed on meal planning, both if you’re trying to lose weight, and cut back on your grocery budget. Yes, meal planning isn’t for just trying to shred some pounds and create a healthy lifestyle. Meal planning can help “shed” dollars out of your grocery budget, and also create healthy lifestyle changes with money. How can meal planning help me “shed” both in and out of the gym? Meal planning is also one of the main first steps when it comes to grocery shopping. By laying out your meals for the upcoming week, it helps you create the ingredients list you need to get for your next grocery haul, hopefully eliminating impulse buys because “you may need it this week for dinner”. It also helps you from wasting food before it goes bad because you are not purchasing things and not using them before they expire…or start to grow mold. And when you meal plan, you can decide on healthier options because you are prepping for them earlier in the week. You know what meat may need to come out of the freezer ahead of time to thaw, and if you work full time, helps you manage your time when you get home so you know how to prepare your dinner according to your schedule – helping you to avoid the very tempting chicken tender and tater-tot fast dinner option. You’re not only able to predict your calorie intake, but how much you are going to be spending on your groceries as well. How you prep for your meal planning can matter One week at a time Don’t get yourself confused or stressed out by trying to plan more than a week out. As the saying goes “take it day by day”, do the same with your meal planning and go a week at a time. Lay your days out however you like based on when you shop. If you have known plans for a certain day, be sure to add those days into your meal plan, “i.e., Sunday – Birthday party at mom’s house, Thursday – dinner out with the girls”. This allows you to know you can either skip this day from planning or if you’re bringing a side, know you just need to get those ingredients for that day. See where you can “double dip” When creating your meal plan, see what other items you can use from a previous meal. Are there tomatoes, lettuce, or other perishable items that you can use from one meal to the next for ingredients? Or even leftover protein to be used in another way other than the main course? I have a friend who meal plans like a pro. I watched her in action one time and here is an example of how she planned her week reusing both side and main entrée items for multiple meals: Monday – Pork Roast with onions, carrots, and potatoes Tuesday – Quesadilla Hamburgers and homemade fries Use leftover potatoes to make fries Wednesday – Kielbasa and sauteed cabbage and noodles with onions Used leftover onions Thursday – Pulled pork tacos with cabbage slaw Used the leftover pork, tortilla shells, and cabbage Friday – Pasta with Bolognese sauce and a side salad Used the leftover browned ground beef and noodles Don’t overcomplicate things No one said you had to create meals worth of Gordon Ramsey standards, or that they had to be Pinterest masterpieces. Keep your meals basic. Especially at first until you get the hang of things. You can always start to expand once you feel like you have the hang of things. Your goal with meal planning is to shop wisely, not prove you’re a world-class chef. Create “Theme Days” If you’re really stuck on how to get started, designate your days of the week to a theme day! To name a few: Soup Sunday, Taco Tuesday, Fish Friday. You don’t always have to stick to alliteration too. Make one night be “create your own personal pan pizza” (twist, how can you make it healthy with your ingredients), another night- make it a bar night: burger bar, nacho bar, baked potato bar, salad bar. And then there is the ever-popular and stands the test of time, themed dinner night – spaghetti night. Lastly, don’t be afraid to make “Leftover Night” a themed dinner option. We had PLENTY of these kinds of nights growing up, and something my husband and I do pretty regularly to help with food waste and fridge cleanout. Compile your plan into your list After the meal planning work is done, you need to create your grocery list to have the items needed for the week. For more ideas and suggestions on how to go about creating and organizing your grocery list, check out The Grocery Store Game – How to prep the right way, Part I – The Grocery List. Meal Planning is a Win-Win Whether you are trying to cut calories, or how much you are spending on groceries, meal planning is a necessity to accomplish either of these goals. But meal planning cannot be a one-time thing, or you will not be successful. It has to be consistent and needs to become a lifestyle change. If you make the changes and start implementing this into your weekly routine, I promise you will not only see the pounds start to drop (of course this will depend on your meal plan!), but you will also see your grocery budget drop because you will be in control of how you spend. If you are new to meal planning, or have been meal planning for a while and want to get better at it, try some of these tips out and see how you can “shed” some pounds and dollars! And if you need help finding ways to “shed” some dollars in your budget, schedule a meeting with our financial coach, Lindsey Curry today!

What happens when I sell a stock or bond that has increased in value? Have you been eyeing a new vehicle, rental property, or any mid-to-large expense but haven’t pulled the trigger because you aren’t quite sure what the tax consequences will be? If your plan is to purchase an item with cash or check then you don’t have to worry about tax consequences; but if your plan is to purchase an item using money out of your brokerage account, then you might want to read this article. What is a Capital Gain? According to Investopedia, a capital gain refers to the increase in the value of a capital asset when it is sold. Put in layman’s terms, a capital gain is when you sell something for more than what you purchased it for. So, if you bought a used car for $5,000 in 2019 and then sold it for $8,000 in 2021, you would technically have a $3,000 capital gain. This is the same in the investment world. If you bought into a mutual fund, stock, bond, ETF, etc. for $10/share in 2019 and then sold it for $15/share in 2021, you would have $5/share in capital gains that you would be responsible to pay. How are Capital Gains Taxed? In the example we used above, you held the asset for more than one year, so you would be responsible to pay long-term capital gains on the sale of the asset. See the charts below for 2022 and 2023 long-term capital gains rates based on filing status and taxable income. What if I sell an asset within a year of owning it? Keeping with the same example we used above, what would happen if you bought the asset in 2019 and then sold the asset in 2019? Great question! Since you held the asset for less than one year, you would be responsible to pay short-term capital gains. Short-term capital gains are taxed as ordinary income. See the chart below for short-term capital gains rates based on filing status and taxable income for 2022. Short-term Capital Gains Tax Rates for 2023 35% for incomes over $231,250 ($462,500 for married couples filing jointly) 32% for incomes over $182,100 ($364,200 for married couples filing jointly) 24% for incomes over $95,375 ($190,750 for married couples filing jointly) 22% for incomes over $44,725 ($89,450 for married couples filing jointly) 12% for incomes over $11,000 ($22,000 for married couples filing jointly) The lowest rate is 10% for the incomes of single individuals with incomes of $11,000 or less ($22,000 for married couples filing jointly). This article is not intended to be used as tax advice but rather more for educational purposes. If you have any specific questions about the taxation of capital gains or are looking for tax advice, please reach out to your local SmartVestor Pro or contact our CPA at Whitaker-Myers, Kage Rush.

You work hard to earn a living, but if you’re new to investing you might be wondering how exactly your money can go to work for you. At Whitaker-Myers Wealth Managers, we take a holistic approach to financial planning. Measuring risk is a critical step in establishing your financial goals. In this article, we’ll talk about the different types of risk to be aware of with regard to your investments. Keeping the Cash It can be a common misnomer that cash (or simply a savings account) is the best way to protect your money from the uncertainty of the stock market. While cash can be a smart strategy, it all depends on your objectives. If you are young, in good health, and have a long-term time horizon, then keeping your money in cash is not your best bet. The biggest reason for this is a word we’ve heard at nauseum in 2022: inflation. Keeping your money in cash not only strips it of its potential for growth, but it leaves it subject to inflation risk. As your money sits in the bank, it slowly loses purchasing power over time. As the monetary unit drops in value, your dollar today buys less as time goes on. Think about the soda fountains of the 1940s where a bottle of Coke cost a nickel. Now, that same soda would cost you as much as $1.99. To be clear, regardless of your situation it’s important to have an emergency fund and take advantage of a savings and checking account. Some banks even offer favorable interest rates for certain account balances. If you are close to retirement, the preservation of capital might be of utmost importance to you. In that case, cash and/or cash equivalents may be right for you. Money market funds, bank certificates of deposits (CDs), and cash might be wise for you – which is why it’s important to talk to a financial advisor about your objectives and risk tolerance. Letting your money work Equities, or as most people know them, stocks, have the potential for growth, as well as loss. Equities are shares of a company, and by buying those shares you become a partial owner of a company. Depending on the type of company, you could even receive quarterly payments called dividends, for simply maintaining your stake in the company. Because you are investing in a company, you are taking on what’s known as “business risk.” Whether it’s a new company, a company in poor financial shape, or one going through a reorganization, there is the chance that your shares could drop or experience a complete loss in value (If the company folds). This is not meant to scare you away from equities, but rather, encourage diversification. Owning equities can be a great way to participate in the growth of companies, but owning too large a percentage of one company, relative to your portfolio, should be avoided. A great way to own equities, and remain diversified is to own mutual fund shares. A mutual fund is a security that invests across several publicly traded companies in order to minimize an individual investor’s risk. As our friend Dave Ramsey likes to say, “Money is like manure: Pile it up and it stinks, spread it around and it'll grow stuff.” If you want to grow your money over the long term, then diversification is your best friend. There are other ways to diversify using equities, like investing in Exchange Traded Funds (ETFs). Talk to an advisor about what might be right for you. Somewhere in Between Goldilocks wasn’t wrong. If you are close to retirement or have a greater need for liquidity, then a portfolio heavily weighted in equities might not be the best for you, nor does it really allow you the time to let your money work. Cash and cash equivalents may be among the safest of investments, but they provide little to no return on your investment. Fixed income might be the most suitable for you if you‘re looking to strike the balance between safety and return. Fixed income like bonds and U.S. treasuries are debt obligations that make you the lender and the issuer the debtor. As an incentive, like on any loan, the lender gets to collect interest payments, and eventually a return of the principal. The higher the interest rate, the higher the semi-annual payment you receive as the owner of the debt. In an economic environment like the one in which we are in 2022, this type of security can pay handsomely. Government-backed securities like U.S. treasuries are backed by the “full faith and credit” of the U.S. government, which means, you can expect you will receive your principal back when the bond matures, or when it is called in early. Of course, every security has some type of risk – even the safest ones. When a bond gets called it means you miss out on future interest payments. Usually, this means that interest rates have come down, and the debtor is looking to sell bonds at a higher price, and pay less interest. If a bond has call protection, or simply no call feature attached to it, then it is going to last until maturity. This means that your money (principal) is locked up until the maturity date, subjecting it to liquidity risk. If you need money in six months to purchase a home, then it would be unwise to purchase debt securities with maturities of nine months. An alternative is to invest in fixed-income mutual funds or ETFs, which provide the liquidity of equity securities. Being aware of your risks and investment constraints is essential to developing both your investment strategy and overall financial plan. Your needs are unique to you and at Whitaker-Myers, we listen to those needs and make plans that suit our clients. If you’d like to talk about your financial objectives, schedule a meeting with me today.

Mistakes easily made with the grocery store. Have you ever run into the grocery store for “just a few things” and ended up with “a few things too many”? Or have you gone in with items in mind, but then just walked around aimlessly up and down each aisle and ended up with way more than you were expecting? What about when you log on for your click-and-go order and just start clicking on the items they “suggest” for you from either previous orders or because “others also bought” with items? The thing is, we are all guilty of this. And sadly, with how the price of groceries has increased over the last year, it is something that needs to be discussed, and better habits started to be formed. The importance of a grocery list One of the main reasons for creating a grocery list is so you know what items you absolutely need. Whether it be because you ran out of something, you need it as a specific item in a recipe, or because it is on the menu for this week’s meal plan, having specific items outlined is key. The other benefit is that you are not guessing as to what you need, leading you to possibly overspend on duplicate items or not-needed items. And it allows you to have less frequent trips (or virtual clicks). Which has been proven that the more store trips you make, the more you are to make impulse purchases. Meaning, more opportunities to break your grocery budget. How you organize your grocery list can matter There are several ways you can go about organizing your grocery list. The trick is making it efficient so that when you shop, you don’t wonder. Because if you wonder, that’s when unnecessary spending can happen. Meal Plan My tried and true suggestion is to start with your meal plan for the week. Go through what you will need to prepare each meal. Take Inventory Know what you have, and don’t have before going to the grocery store. As annoying as it may seem, standing in front of your fridge and pantry before making your list will help you know what you need to add to your list. However, this can be a double edge sword. It can make you realize you don’t have something, that maybe you don’t necessarily need (i.e., does not fit in with your meal plan for the week and could risk going bad before being used/eaten). A trick my husband and I have done to try and lessen our standing in front of the pantry or fridge and avoid “over needing” when writing out our grocery list, is a handy dandy magnetic notepad. We keep this on our fridge, and if we run out of something we use regularly (milk, eggs, butter, etc.), we can add it at the moment. Map out the store Think through the layout of your store while creating your list. Start with the back and work your way forward. Making a “map” of which aisles you need to hit to grab items on your list helps eliminate that “wondering” I’ve been talking about. You go in, go to the area you need to go to, and grab the items needed, all while working your way back to the front near the cash registers. Categorize your list This is helpful when you know your store layout. You can put all your dairy together in one section, then list all your grains/bread needed, and produce can be paired together… you kind of get the picture here. Hopefully categorizing your items will help you not forget something in that area, making you circle back to a previous area. Know your amounts Knowing how many items or amounts of an item you need is important too, especially if you are trying to copy a recipe. The last thing you want to do is get home from the store (or pick your grocery haul up from your online order) and realize you needed an extra cup of an ingredient, or one whole item to complete your meal/recipe. This not only helps you make the recipe/meal correctly and proportionally, but it also reduces the waste of ingredients. You’re not over-guessing because you don’t want to short-change yourself on an ingredient, but you can’t find a way to use said ingredient later before it goes bad because you bought too much of it. Shop Store Brand vs Name Brand Remember, the majority of the time, store-brand items are a fraction of the price when comes to name-brand items. And typically, you will not find a difference between the two besides the costs. And a little unknown fact, some items are the same exact thing, just packaged in either name brand or store brand! Step out of your comfort zone next shopping trip and try the store brand of a name-brand item. See what your thoughts are. If you hate it, all you have to do is deal with it until that item runs out. And if you don’t notice a difference, you could end up saving yourself large dollar amounts in the end. Let your grocery list help you Outside of making sure you have the right ingredients, and the right amount of ingredients, your grocery list is hopefully going to help you eliminate extra strolls around the store, or stop you from buying unnecessary purchases. When looking at coaching clients’ budgets, the grocery budget is one of the first places we suggest to start cutting back, especially if you express to us during meetings that you don’t meal plan, or make regular grocery lists. Let your grocery list help you by not overspending. It’s a great way to help you budget, especially if you are on a tight budget, and trying to find ways to cut your budget. If you need help tailoring your budget or creating one, schedule a meeting with our Financial Coach, Lindsey Curry. She can help review your existing budget and help you find ways to “trim the fat”, or if you’re just starting, show you helpful tips.

How do I save for my kid’s future college expenses? As Advisors, this is a common question that clients have for us. There are many ways to save for your child's future including 529s, ESAs, and UTMAs. For the purpose of this article, we will discuss what a 529 is as well as the advantages and disadvantages of using it to save for college expenses. A 529 is a tax-advantaged savings plan which means the interest that is accumulated within the account grows tax-deferred and no income taxes are paid on the growth if the money is used for qualified educational expenses (please see below for a list of qualified expenses). The other tax advantage of this account is that the person responsible for funding the account may receive a deduction from their state taxes. When the 529 was originally developed, it was for higher education only. This definition has since expanded and can now go towards K-12 schooling along with apprenticeship programs. The benefit of using a 529 to pay for grades K-12 If you live in a state that offers a state deduction, you can fund the 529, get the tax deduction, and use those funds to pay for your child's private school tuition. If we were to take Ohio for example, Ohio allows an individual to deduct $4,000 per beneficiary per year. If you had two children and maximized the contributions that would be $8,000 you can deduct from your state income taxes. Ohio’s state income tax ranges from 2.765% - 3.990%. If you fell in the middle of that range, that would be 3.3775%. This saves you approximately $302 per year. Take that across the span of a child’s 13 years in school and you have a savings of almost $4,000. Our President and Chief Investment Officer, John-Mark Young did a very informational video explaining how to get a tax benefit (if your state offers it) for using the 529 to pay for private school tuition for grades K-12. You can watch that video HERE. Types of 529 plans Educational Savings Plans This is an account where the account holder contributes money to a plan and the money is then invested in the stock or bond market. Then, when the child starts college or a trade school, they can use the funds from the 529 to pay for their education. Prepaid Tuition Plans This is where an account holder can lock in current tuition rates for their future student. Advantages of a 529 High contribution limits This is helpful since the average cost of tuition for a 4-year public university is over $25,000/year and over $100,000 for a 4-year bachelor’s degree. Flexible Plan Location: you can choose to have either an educational savings plan that is invested or prepaid college. Easy to open and maintain Tax-deferred growth No income tax on the growth as long as the money is used for qualified expenses State Tax deductions Can be passed from one child to another Disadvantages of a 529 Limited investment options Fees vary per state Restrictions with changing plans Must be used for education (you pay a 10% penalty and taxes if you use the money in a 529 for non-qualified expenses) Qualified Expenses: College, graduate, or vocational school tuition and fees Elementary or secondary school (K-12) tuition and fees Books and school supplies Student loan payments (up to $10,000) Off-campus housing Campus food and meal plans Computers, Internet, and software used for schoolwork (student attendance required) Special needs and accessibility equipment for students

How frightening it is to look at your ROTH, IRA Rollover, Brokerage Account, etc., and see a performance number with a dreaded minus next to it every quarter. Was it your choices that caused this? Or was it simply the market? Or, perhaps both. Should we put our money in our mattresses and have wonderfully peaceful and lumpy sleep? If you’re like the majority of Americans, you have, perhaps, had these feelings. Dread, second-guessing, loss of sleep. You are certainly not alone. In this article, we will dive into how an advisor should help educate the client in order to shift the mindset during a long down-market from scared, to opportunistic. The Mind and the Market If you’ve ever heard the saying “you should hate losing more than you love winning”, then you already understand how the mind works when it comes to money. It is a fact that people experience far stronger emotions when their account is in the red than when their account is in the green. Educating yourself is the best way to mitigate these feelings. We are here to help you with that task. What to feel as the market falls There are many emotions people naturally feel as the market falls, and there are always many questions. The worry is usually, how long and how far the market will fall, with fading hopes among the populous that it will ever return to its all-time high. It is your lucky day! I am here to tell you that the market always, since its existence, returned to its previous all-time high. Whether it takes 1 month after COVID to drop 37%, and come right back up, 1 year, 5 years, or even 10 years, the market always finds a way to claw back. The dot com bubble in ‘99 through the mortgage crisis of ‘09, the market had no gains, as there were two huge crises in just that time. Luckily, if an investor was continuing to buy into the market, they would've enjoyed around a 15% gain in 2010 alone. From the end of 2010 through 2020, the market enjoyed well over a 230% gain. It is always important to keep in mind, what is your time frame for this money? Will you be drawing income on this money in the next 5 years? Maybe 10 years? If it needs to be used during a down market, what are my options? Do not feel panicked, stressed, or anxious, by any means. Being uncomfortable is the greatest advantage you can have while experiencing a down market. Being uncomfortable leads to putting oneself in a better situation than before. Advantages of taking a capital loss If I sell now, wouldn’t I take Capital Losses? In an after-tax non-retirement account (brokerage, advisory, etc), if your stocks, bonds, mutual funds, etc, that make up your account value fall below their cost basis, and you choose to sell them, there would be a capital loss. A capital loss is not such a bad thing. Let’s say you’ve lost $40,000 in your account, and decide to ditch an old worthless mutual fund or stock, and reallocate into something that tracks with the market, like an S&P 500 index Exchange Traded Fund (ETF). There are two amazing benefits of capital losses. First, you can use $3,000 per year of capital losses that directly reduce your taxable income. That could lead to thousands of dollars in tax savings depending on your tax bracket. Secondly, and most importantly, it carries forward forever. Yes, forever. So, when your account comes roaring back and makes 25% over the next few years, and suddenly you have $50,000 in gain, there are now tax advantages. Let’s say you’ve used the losses for 3 years of income reduction, so you’re left with $31,000 in tax loss carry forward. When you sell your $50,000 of securities for a capital gain and want to deposit that into your account for a new car, down payment on a home, or help with your child's wedding, you will only have to pay a capital gains tax on just $19,000 of gains, rather than the full $50,000. Long-Term Capital gains tax is typically 15%, so that is a tax liability of $2,850 instead of $7,500. It is important to understand the benefits of losses during a down market because when the market is down, your assets are going to come back at some point, so you may as well take advantage of the capital loss carry-forward rule. Buy low… but how? As the saying goes, “buy low, sell high”. Well, congratulations, you’ve made it! … To a market that has lost 20% year to date. But what does this mean? The market, since its all-time high (January of 2022) has fallen 20 percentage points. This means most stocks and mutual funds have fallen by a percent in this range, perhaps better or worse, depending on the fund. There are many people who think the rich get richer because they can flood their accounts with cash when the market is low. Although this is certainly a tactic of people who hold onto cash for a long time, it all evens out in the long term, because they haven’t had the gains of the past either. The best way to get into the market is through forced savings. Weekly, bi-weekly, or monthly contributions into an investment account to buy shares as the underlying values are going up and down. This is a proven way to buy cheaper than the average price per share throughout time. If you have cash, and you’re investing regularly, this is the best-case scenario. Those with cash see a declined market as a black Friday sale, and all stocks are on clearance. When they secure the 20% sale, when the market just gets back to even, they are 20% ahead of everyone else. This is how you buy low. 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. One of our core values is to have the heart of a teacher which means 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.

What is an “influencer”? Influencers are more of a modern term gaining popularity in the last several years, due mainly to social media. By simple definition: an influencer is someone present on social media, who has gained a reputation through their followers, is regarded as someone with authority or expertise on a certain subject matter, and engages with large numbers of people through their social media accounts. They gain popularity through the posts that they put on their feeds, and by sharing day-to-day usage of various said products they are promoting on their stories. They also incorporate personal interactions with their followers, telling them about their day, what’s going on in their lives, etc. to make you feel more connected to them, and invested in their opinions and suggestions. Those who follow this said person can then go and watch these videos, or see the photos they post on their own time. With that being said, an influencer can range the gamut of topics from sports and fitness, to nutrition and fashion, to beauty and budgeting. Yes, you read that one correctly, even budgeting. Social Media and Budgeting can go hand in hand There are two people that come to mind when I talk about social media and budgeting. These are @debtfree.mom and @thebudgetmom. Both of these ladies share information about their daily lives, and how creating and STICKING to budgets help with their busy households. They share ways to stay out of debt, and what to look for as triggers to impulse spending, and they also share tips on things they have found to help cut dollars from their own personal budgets, plus much, much more. One of these influencers was recently on vacation. She hadn’t been posting as much as she normally does, for obvious reasons (i.e., spending time with kids and family) but each day she gave a breakdown of what they had been doing, and what they had spent. Things she has included in these updates ran from food purchased for meals in, beach snacks, to meals out, ice cream treats, fun evenings of putt-putt to how much they are spending on gas. She even shared on her stories about how their emergency fund came into effect while on vacation because their car battery died and had to be replaced while traveling! What a great – unexpected lesson for all of her followers! They make learning about budgets and finances fun with not only their daily stories, but they have found fun, creative ways to explain things through their various posts as well. So outside of budgeting, how else can an influencer also affect my budget? Shockingly enough I share this as a tip to help you save money. Because, even though one of an influencer’s main job functions is to promote products and drive business to said product, which in turn usually means making impulse buys for you, they offer promotional codes for following them. Now, I say this is a tip for helping with your budget because if you have been eyeing a product of theirs that you have been wanting to try now for a while, or have been patiently saving up to purchase, these promotional codes could save you sometimes amounts of 15-30% off items. If you follow a beauty and skincare influencer and already use the products they are promoting, this is a great way for you to save. You can either buy ahead at this discounted rate, knowing you will be eventually using the product in the near future or even better, it’s perfect timing and you were about to repurchase it anyway! An account I was following just the other day had a promotional code for workout items, that when you bought the one, promoted item, you got the other promoted item FOR FREE using the promotional code the influencer was sharing. It was close to a $250+ savings by doing this! Of course, you had to want (or be in the need) both of these items for this to be beneficial for you, but if you had been contemplating getting either one of these promoted items, and were waiting for the right moment, that moment would have been with this promotional code for sure! Beware of the *Sale* I know I have fallen victim to it too, “But it was on sale!”. So be careful with these promotional codes. Make sure it is something you truly have been thinking about getting, or in need of, OR that you have been *BUDGETING* for, before making the purchase. Just because it is “on-sale” or you are getting a discount, don’t let this derail you from what your true priorities are, and the hard work you’ve been putting in to stay on budget! I am sure you are already following @RamseySolutions on social media but if you do not already follow @debtfree.mom and @thebudgetmom, check out their Instagram page today to be positively influenced when it comes to your budget! If you’d like to meet with one of our financial advisors, or our financial coach, visit our website and schedule a meeting with one of them today!

In high school, there was this thing called “high waters.” If your jeans or khakis showed any of your socks or, worse yet, the skin from your shins, there would be immediate laughing and name-calling. “Are you expecting a flood to come in tonight with those high waters on,” kids would jokingly reference. I was at my daughter's choir concert, and all the “cool kids” had the most prominent high waters you’ve ever seen. I guess that’s back in style and vogue. In investments, the trend is your friend, and things come in and out of favor based on markets, economies, government decisions, and on and on. This year an exciting surprise has been what we call an inverted yield curve with government treasuries. An inverted yield curve means you can earn higher rates on short-term government bonds (such as a two-year) than long-term government bonds (such as a 30-year). Thus, for a limited time, if you have funds you’d like to earn a fixed rate of return with a guarantee from the US Government, assuming you hold until maturity, treasuries may be an option worth considering. What is a Treasury? As a result of this being out of fashion for the last 15 years because of historically low-interest rates, you may not be familiar with what a treasury is, so let’s dive in. They come in three basic fashions: Treasury Bills which are marketable government debt instruments with a maturity of one year or less. Treasury Notes are marketable government debt instruments with two – ten years maturity. Finally, there are Treasury Bonds which are marketable government debt instruments that have a maturity of twenty years or greater. These debt instruments carry the full faith and credit of the United States Government. That means, if held to maturity, they will pay you back your total principal balance plus the interest quoted on the bond. What is Marketable? You may ask, “what do you mean by marketable?” When you think of buying a two-year bond, your mind most likely goes to the fact that you must keep the bond for two years. That is true if you want the government's guarantee, stating that they will pay back the bond's total value plus interest. However, because they are marketable, which means there is a market for them, a secondary market, you technically could sell the bond 13 months into your 24-month commitment to getting your money back. However, this is where it gets tricky. What you get back will depend on that bond's current value, which changes daily based on several factors, such as yield, maturity, and call features (if any). Let’s use a quick real-life example. Let’s say you bought a two-year treasury in December of 2014, which would have been paying about 0.30% at the time (yuck). Then one year later, the Federal Reserve raised the Federal Funds rate by 0.25%. That increase had the effect of decreasing the price (market price) of that two-year treasury note you bought. Thus if you tried to sell it a month later, in January 2016, you most likely would have sold at a loss. However, if you held to maturity in December 2016, you would have received all your principal plus interest payments with no loss. Thus, the price movements only affect you if you sell the bond early. If you hold to maturity, there is no problem at all. When is Interest Paid & is it Taxable? The interest is paid every six months and has unique tax benefits. The interest will be taxable at a federal level but exempt from state and local taxes. This makes the treasury a little more attractive if everything else is equal (credit risk, interest rate, duration) than a standard corporate bond because of the tax-free nature of a portion of the interest. Current Yields This is changing daily; however, to give you a feel for how unique the opportunity within treasuries is right now, check out the following charts to see the last ten years of yields on a 6-month, 1-year, 2-year, and 10-year treasury. The 6-month yield. **As of 10/21/2022** The 1-year yield. **As of 10/21/2022** The 2-year yield. **As of 10/21/2022** The 10-year yield. **As of 10/21/2022** Bond or Cash Alternative? Many clients have excess cash sitting in their checking, savings, or emergency fund. This is because they didn’t want to take risks with the money; however, they have no immediate need for these funds. They may consider a 3-month, 6-month, 12-month, or 24-month treasury as an alternative. If they're with a major bank, they’re probably getting 0.04% or less on their savings, and if they’re with a small or online bank, they may be getting 2-3% on their savings, and right now, even the 3-month treasury has an annual yield of over 4.00% (this changes daily so check current rates). With interest rates spiking this year, bond funds have had their worst year since 1842. That means your bond fund is more than likely taken quite the beating in 2022. Suppose your bond fund continues to carry a high duration (note Whitaker-Myers Wealth Managers does not invest in bond funds with a high duration). In that case, you should consider if rates continue to climb in 2022 and 2023, you may be better served in a Government Treasury.

It’s the super bowl for Financial Planners and Tax Planners! Ok, maybe that is a little extreme but every year the IRS announces changes to tax brackets, standard deductions, Roth IRA, 401(k), and other retirement plan limits. We received those this week and are very excited to share them with you so you can start making plans around your budget in 2023. With record employee raises coming to folks in 2022, we highly recommend that you recalibrate your Baby Step 4 goals to match your current income and current limits to retirement accounts. Ok, let’s dig in…… 2023 Tax Brackets & Standard Deduction I want to first start with the standard deduction. The standard deduction is the amount of money you don’t pay tax on as long as you don’t itemize certain expenses such as the giving, state and local taxes, and mortgage interest. Since the Jobs and Tax Act of 2017, most individuals and families now take the standard deduction, making their tax situation somewhat easier to understand. That jumps 7% in 2023 to $27,700 for a married couple filing jointly, and it will increase to $13,850 for individuals and married couples filing separately. This is an excellent jump because it will provide families with additional tax savings in that more income comes to you tax-free! Likewise, the pay ranges on the tax code seven marginal rates will almost jump 7% for the tax year 2023. You can click here to see the updated brackets for both single and married filers. 2023 Retirement Plan Limits The Roth IRA and Traditional IRA limits for 2023 have been increased to $6,500 per year for those under 50 and $7,500 for those over the age of 50. Your 401(k), 403(b), or 457 plan will now allow you to contribute $22,500 each year if under 50, and if over 50, that limit will increase to $30,000 with the $7,500 catch-up contribution. Those with a SIMPLE IRA with our firm will now be able to contribute $15,500, up from $14,000. The SEP-IRA will increase to $66,000; your HSA contribution has been increased by $200 for an individual to $3,850 and $450 to $7,750 for a family HSA plan. The income limits for becoming ineligible for a Roth IRA will increase by $9,000 for a single filer to $138,000 in 2023 and go up by $14,000 for married filing jointly to $218,000 in 2023. Finally, a lesser-known benefit is the Savers Tax Credit. If you are filing jointly, contributing to a retirement plan or IRA / Roth, and making less than $72,500 in 2023, you’ll qualify for a 10% tax credit! WOW. If your income is less than that, it gets even better. You will qualify for this special tax credit if you make $36,250 or less as a single filer. Please put your Roth or IRA contributions on your tax return if you're under these limits. Otherwise, the IRS will not know to give you those benefits. Here is a summary of all the changes 401(k), 403(b), 457 and TSP Contribution Limit: $22,500 (Increase of $2,000) Annual Catch-Up Contribution for Employees over 50: $7,500 (Increase of $1,000) Overall Contribution Limit (Employer + Employee): $66,000 (Increase of $5,000) SEP IRA and Solo 401(k) Limits: $66,000 (Increase of $5,000) SIMPLE IRA Contribution Limits: $15,500 (Increase of $1,500) SIMPLE IRA Catch-Up Contributions For Emp. over 50: $3,500 (Increase of $500) Traditional IRA and Roth IRA Contribution Limits: $6,500 (Increase of $500) Traditional IRA and Roth IRA Catch-Up Contribution $1,000 (No Increase) Health Savings Account Contribution (Single) $3,850 (Increase of $200) Health Savings Account Contribution (Family) $7,750 (Increase of $450)

Scam Calls Don't Have to be Scary! ‘Tis the season for all things scary and creepy. There are a lot of things to be scared of but getting a scam call should not be one of those things. In this article, we will go over the steps to help you or those you know that might be more susceptible to these scammers. As long as you take steps to ensure you are safe from identity theft and financial loss, scam calls should be on the back burner of your mind. A quick note: If you have fallen for a scammer’s tricks in the past be sure to give yourself grace and don’t beat yourself up about it. Over the years, scammer’s techniques have become very sophisticated. This article is to help inform you to take the steps that will ensure your safety as well as the safety of those you care about. 10 Ways to Avoid Falling for Scams 1. Know whom you are dealing with Do your research! Look up the company website and cross-reference it with the Better Business Bureau (BBB). If you cannot find any information, then the odds are likely very high that it is not a legitimate company. Most of the time, scammers will present themselves as employees of a large corporation like Amazon or Microsoft. Call the number provided on their official websites to inquire if this is a legit offer or not because likely you will find that those companies do not make specific phone calls. As Dave Ramsey always says, don't invest in anything (or buy anything) that you don't fully understand. 2. Guard your personal information Scammers pretending to be from companies you do business with may call or send you an email, claiming they need to verify your personal information. Working with various financial institutions, you can be assured that they will never call you for personal information. If asked, hang up and call the place you conduct business with to report this. Chances are you are not the only customer who received these scam calls. 3. Stay safe online Do not send sensitive information. Look for clues about security on websites. At the point where you are asked to provide your financial or other sensitive information, the letters at the beginning of the address bar at the top of the screen should change from “http” to “https” or “shttp.” Your browser may also show that the information is being encrypted, or scrambled so that someone who might try to intercept it can’t read it. But while your information may be safe in transmission, that’s no guarantee that the company will store it securely. It can be important to see what websites say about how your information is safeguarded in storage. 4. Be cautious about unsolicited emails They are more than likely fraudulent. If you are familiar with the company or charity that sent you the email and you don’t want to receive further messages, opt out of the emails by unsubscribing (there is usually a link at the bottom of the email to do this). Sometimes the best approach may simply be to delete the email, especially if you don’t know who it is from. One email you might want in your inbox to help keep you educated on important financial matters is our Whitaker-Myers Wealth Managers, "Better than I Deserve" weekly newsletter. We write the content ourselves and you can join our mailing list HERE. 5. Resist pressure Legitimate companies and charities will be happy to give you time to make a decision. It’s probably a scam if they demand that you act immediately or won’t take “No” for an answer. Some scammers may also demand you pay off a loan immediately or damaging consequences may occur, always take time to look into who is requesting the money before you pay up. 6. Don’t believe promises of easy money If someone claims that you can earn money with little or no work, get a loan or credit card even if you have bad credit, or make money on an investment with little or no risk, it’s probably a scam. Oftentimes, offers that seem too good to be true, actually are too good to be true. 7. Fully understand the offer A legitimate seller will give you all the details about the products or services, the total price, the delivery time, the refund and cancellation policies, and the terms of any warranty. Contact the seller if any of these details are missing, if they are unable to provide the details, it may be a sign that it’s a scam. 8. Get off credit marketing lists Credit bureaus compile marketing lists for pre-approved offers of credit. These mailings are a goldmine for identity thieves, who may steal them and apply for credit in your name. Get off these mailing lists by calling 888-567-8688 (your social security number will be required to verify your identity). 9. Check your credit reports regularly If you find accounts that don’t belong to you or other incorrect information, follow the instructions for disputing those items. You can ask for free copies of your credit reports in certain situations. If you were denied credit because of information in a credit report, you can ask the credit bureau that the report came from for a free copy of your file. And if you are the victim of identity theft, you can ask all three of the major credit bureaus for free copies of your reports. Contact the credit bureaus at: Equifax, 800-685-111; Experian, 800-311-4769; TransUnion, 800-888-4213. “Everyone can request free copies of their credit reports once a year. In addition to the rights described above, a new federal law entitles all consumers to ask each of the three major credit bureaus for free copies of their reports once every 12-month period. Go to www.ftc.gov/credit or call 877-382-4357 for more details and to see when you can make your requests. You don’t have to ask all three credit bureaus for your reports at the same time; you can stagger your requests if you prefer. Do not contact the credit bureaus directly for these free annual reports. They are only available by calling 877-322-8228 or going to www.annualcreditreport.com. You can make your requests by phone or online, or download a form to mail your requests.” 10. Check with a trusted professional If you are not sure if something is a good idea, checking with your Financial Advisor for a second opinion is never a bad idea. At Whitaker-Myers Wealth Managers our Advisors have the heart of a teacher and would be more than happy to answer any questions you might have.

Time flies! I was reminded of that saying this week as my wife began prepping for her 5th season of coaching high school girls' basketball. Girls she coached when she started in jr. high are now entering their senior year. Time doesn’t slow down. In the financial planning world, that means for a limited time; you have opportunities to take advantage of some deadline “deals,” if you will, regarding financial planning. Below are a few that we think you should consider. Bunching Charitable Contributions The Jobs and Tax Act of 2017 was my career's single most significant tax change. It nearly doubled the standard deduction, and many itemized deductions were capped or eliminated. However, charitable giving is still deductible for those that itemize and don’t take the standard deduction. In 2022 the standard deduction is $25,900 (married) and $12,900 for those filing a single tax return or married filing separately. With the standard deduction jumping to $27,700 (married) and $13,850 (single) in 2023, this may be the year to bunch charitable contributions. Bunching charitable contributions means: making your entire 2023 charitable contribution in tax year 2022 to make your charitable giving (along with any other itemized deductions) exceed $12,900 (single or married filing separately) or $25,900 (married filing jointly). Let’s use a quick example. Take a look at this chart. Susan and William Jones are happily married and filing their returns together. They make $120,000 / year combined and tithe $12,000 to their church, pay $4,600 in state and local taxes, and $3,000 in mortgage interest. As you can see from the example here, if this client were to bunch their contributions, meaning contribute for 2022 and 2023 in one year, it would provide them an extra $1,254 in tax savings. Let’s say they bunch 2022, 2023, and 2024 charitable contributions into one tax year, 2022. Now they create an extra $3,894 in tax savings, and in 2023 and 2024, they take advantage of the higher standard deduction rates. One additional item to high is that you could give appreciated securities held longer than a year to a charity. This allows a deduction up to the fair market value of the investment. This can be a great way to eliminate a concentrated company position, either because of company stock options or an excellent investment into a company like Apple, Amazon, or another stock that has appreciated. Evaluate Emergency Fund In light of the massive interest rate increases the Federal Reserve has punished the bond and mortgage markets with this year, it has provided savers a better option for their emergency fund. However, many big banks, already flush with liquidity, have not increased their interest rates accordingly. I looked at a top 5 bank in the US that I spent half my career with, and they are only paying 0.04% on their savings account, and The Fed has moved rates up about 3% already this year! That isn't nice of that big bank. We recommend our clients consider the Schwab Money Market Fund as an alternative. This liquid account provides clients with a 2.92% current yield (as of 10/18/2022) and has no minimum investment sizes and required investment periods. If my $30,000 emergency fund were earning 2.92%, I would have made $876 in interest as opposed to my bank savings, which at .04% would have earned $12. In terms of your emergency fund. Now could be a great time to determine if inflation has warranted a larger emergency fund. Typically, people have avoided increasing their emergency funds, even if they needed to, because rates have been so awful. Now that you can earn a respectable speed on these deposits, you should ensure that your emergency fund is adequate. The Wall Street Journal, just this last weekend, informed us that more than half their economist surveyed expect a recession in 2023. If one does come, you should ensure your “rainy day fund” is ready because it may rain. Roth IRA Conversions This is something you’ll find in every single year-end planning article. But this year, it is essential to consider. Why? As of the writing of this article, the S&P 500 is down in the range of 25%. The Nasdaq (more tech-heavy stocks) is down about 35%, and if you were risky (think ARK investors), you are down 70% YTD. During every bear market, you typically see the full recovery happen within 1.7 years. Please read my article Bear Markets, Normal Not Fun, for a more detailed explanation. But if this is the case, your Roth IRA conversion is now at least 25% cheaper than it would have been otherwise. Let’s use Susan Jones again as our poxy. Susan Jones had an IRA worth $100,000 on January 1st, 2022. She now opens her statements and see’s that it’s worth $75,000 in October of 2022. Since we know Susan and her husband make $120,000 / year, we could assume that she is in the 22% Federal Tax Bracket. If she had converted her entire IRA on January 1st, Susan would have paid $22,000 in federal income taxes to make the conversion happen. If she converts today, it will only cost $16,500. That’s a savings of $5,500, and based on historical results, it may only take a year and a half for her to see that recovery happen, all in under the benefits of tax-free growth and tax-free withdrawals of a Roth IRA. Become a Better You Goal setting can be such an intimidating task. There may be hurdles you don’t think you can overcome to achieve a goal, maybe the time to complete the task doesn’t seem possible, or perhaps Eeyore is your spirit animal, and you think too negatively. Well, my friends at Ramsey Solutions, Rachel Cruze, Dr. John Delony, and George Kammel, have teamed up to put together an incredible planner for 2023 to help you achieve your goals in three critical areas of your life: financial, relational, and spiritual. What are the things you want the most in your career? Your relationships? In your walk with Christ? What if I told you I would be happy to give those things to you for Christmas this year? You’d reply, John-Mark, are you, Joel Osteen? Are you the prosperity Gospel guy? No – I am the sowing and reaping guy. I am a guy who believes with hard work, anything is achievable. I am the guy the believes Galatians 6:7 – Do not be deceived: God is not mocked, for whatever one sows, that he will reap. To bring this full circle, I am the guy that watched his wife and her team, through hard work, go from 3-18 to 20–4 in two short seasons. Hard work is not a 100% guarantee of success, but it is the main ingredient. This year, if you have dreams of improving those three areas: financial, relational, and spiritual, then consider purchasing or asking to be gifted the 2023 Goal Planner from Ramsey Solutions. You’ll learn the five essential guidelines for goal setting so you can determine your goals in those three critical areas, and once you apply these guidelines, you’ll be amazed at how attainable your goals are. The reality, this is so much more than a planner. This will inspire and encourage you to focus on the most critical areas of your life. 2023 is Almost Here There are only two months left in 2022. The time will fly with Thanksgiving and Christmas but spend some time planning. If you would like to discuss any of the ideas discussed above with any of our Financial Planners and Advisors, please don’t hesitate to reach out and schedule a meeting with us here or call the office at 330-345-5000 or 419-524-4562.

How Facebook Groups can save you money, or make you take a hit on your budget. Have you ever been sent a Facebook invite to join a “deals” page? Or are you a current member? I think I belong to about 3 or 4 and will have to say, there are both benefits and cons to being in a group like this, especially when it comes to saving money. If you’re in a group like this, you know what I mean. You are inundated daily with multiple posts showing discounts, percentages off, or BOGO sales flying off the advertised sites. All of these could be definite cost savings for you or could leave your wallet hurting from an impulse buy. What are “deals” pages? There are several kinds of pages I belong to that could be considered deals pages so I will say the true definition is open-ended. However, I will say the two main ones I have found are either a discount advertising page or a silent, online auction page. Discount Advertising Page From what I have learned about these pages, the administrator of this group posts daily deals that they have either received notifications about from the direct seller or deals people within the group have found and told them about. A lot of these discounts come as an already marked-down percentage from the seller, or they give a promo code for you to enter and receive the item at the discounted rate. If you order through the page, using the link provided in the post, then the administrator to this group will receive a certain percentage and can make a commission off items sold through that link from the seller. Again, from what I have seen on these pages, most of these deals are coming from Amazon, Jane, and other larger online wholesalers. Once you go through the provided link, you order the item(s), and either enter the promo code provided or watch the discounts applied at checkout. Then the item is shipped to you. Silent Online Auction Page These groups/pages have a bit of a different approach. Usually, the administrator of the group is the one selling the items. In the group that I belong to the man does it as a side job, so the posts are not as consistent as the Discount Advertising Pages from what I have noticed. He is also local to my area so does not do any shipping; all sales are pick-up sales. How he runs the page is like a silent auction. He posts the item (with a description and photos) and will either say what the starting bid is in the caption or let the first-person comment on the post be the first to throw a number out. Then if you would like to make a bid, you just leave your dollar amount in the comments section. After 24 hours, if your bid has not been beaten, he messages you that you are the winner and shares details of how you can pick the item up. Most of the items he is selling are surplus things he has either bought himself or gotten from auctions as well. Most of the items that I have seen are in relatively good shape or brand new. A lot of the time coming in the box, and perhaps might have some cut in the box as the reason it went to surplus. He will also share if there are any issues with the said item so you are aware when purchasing and making your bids. The benefits of these groups You can get some major steals if you catch the right sale. On one of the advertising pages, they had a code provided that if you bought one shirt, at a discounted rate, you got a promo code that had free shipping AND a Bogo offer. So, I basically got two shirts for like $7.00. Granted, they were shirts I liked and had a use for so that was beneficial too. I wasn’t just buying two shirts because they were such a great price. Another “achievement” from being in the silent auction group, I recently purchased a Baby Bjorn travel crib that usually retails on Amazon for $299.95 (or on “sale” for $269.99) for $16!!! With baby #2 on the way at the time, this was a no-brainer when I first started to bid but had no idea, I’d get it for this cheap or what the seller called it as I was picking it up, “the steal of the century”. I have also gotten things for my daughter at amazing prices. From toys for birthdays and Christmas to everyday “just because” things (FYI - why I have a “spoil her” line in my budget!). My sister and mom belong to the group as well and many times we have sent each other the link or tagged each other in the post to *hint* that something may be a good idea for a gifting item to someone else in the family or even a friend group we have. The sites I belong to are not just for clothing items or toys either. A lot of the time they will have tools, car accessories, outdoor décor or gardening things, and household items featured on the page as well to name a few. Cons to these groups You can very easily get caught up in the “sale” of the items. Both on the discount advertising page and silent auction group. And just because it is a good deal, doesn’t always mean you need it. Or need it RIGHT NOW. You might not have even been in the market for something, but because you see it at such a discount, sometimes you feel compelled that you may actually “need” it. And when you are on the silent auction pages, sometimes it’s easy to get lost in the excitement of “I’m winning” with a bid you put down. But is it something you truly need right now? And what if you don’t have these items planned for in your budget? That is where the real trouble can start. Because, yes, you can get some great deals, but at the same time, if you are not planning for these expenses in your budget, the “great deal” in the end may end up being a bad decision. Ways to help keep you in check with these pages/groups: I have seen a lot of things while scrolling through those pages and have had to stop myself a lot of times from clicking the order button (or putting down a bid). I have developed and used some tricks to help keep myself in line and in check with these “amazing steals”: Add it to your cart and let it sit there for several hours to think it over more You’ll either decide no/yes, you truly don’t/do need it. Or you will forget about it, proving you really didn’t need it after all. Set a price point you are not willing to go over if you are placing bids Ask yourself these questions before buying it How long can I use this? Is it seasonal and only be used for a short time? How many uses will I get out of this? Have I been looking to purchase something similar or this specific item before seeing it on sale? Can this be used as a gift for someone – and they truly need or want this? How good of a price discount is this? How will this impact my overall budget if I buy this? Ask a friend their thoughts – but be mindful of whom you ask I suggest someone who is budget-minded like yourself to be your accountability partner with these purchases. Capitalize on these pages, but execute with caution As I have said throughout the article, you can find some amazing deals with these pages/groups. The key is to keep yourself in check, not go “add to cart” crazy, and think through things before impulse purchasing. I will admit I have a few items that looking back now, I got caught up in the “sale” or “deal” that they were. Thankfully they were not full-blown retail prices, but in the end, could I have saved my money and had that left in my bank account? The answer is yes. So, I suggest if you know you’re an impulse buyer and tend to splurge on shopping, then I would not join one of these groups so they do not tempt you. However, if you are looking for some great deals, and are diligent with how you are spending your dollars, I say join one and see how you can come out on top with your purchases! If you need help with setting up a budget or have never created one before, our Financial Coach Lindsey Curry can meet with you and help you decide the best strategies for creating one.