Need some extra cash? How about a side hustle? If you ask this question to anyone, I don’t think many people would say, “No thanks, I’m good.” So, if you want to make some extra money, what are some ways to increase your cash flow? Here are a few tips, and ideas to help you start a possible side hustle. It’s called a side “Hustle” for a reason Remember, if you are looking for extra cash, more than likely you are going to need to put in some extra work (or hustle), and sometimes it might be a bit harder, and maybe even a little messier, than you had hoped. Whether it be the type of service(s) you are offering, to putting in the leg work to get the marketing, website, etc. up and running, time and effort will need to put forth. How to get started Think about what you are naturally good at, have a genuine interest in, or have a skill set to offer. This will make your side hustle more enjoyable, and also feel more like a hobby than extra work. Do you have any specific talents? These can range the gamut from speaking another language, to knowing a musical instrument, or even just be really good at organizing things. Perhaps you could pick up a side job teaching someone how to do one of these skills. Have something that you enjoy doing yourself? You could create a side business creating crafts for people – wood art, crocheting/sewing items, painting canvases or murals. What if you liked to garden? You could offer lawncare/landscaping services. Have extra time and don’t mind running errands? Become a personal shopper through Insta-Cart, grabbing people food as a GrubHub driver, or pick up shifts driving people around through Lyft or Uber. If you have some spare time but don’t want to leave the house – fill out surveys. You won’t make much off each survey, but these are pretty fast and simple ways to earn cash without much effort. Do you enjoy children and consider yourself responsible? Join your local Facebook Babysitting group and see if you can babysit in the evenings or weekends. Like washing cars or cleaning houses? Pick up extra hours and cash by creating a client rotating list and every few weeks either wash their cars, or clean their houses. Whatever it might be, the first step is to write down these ideas that seem the most interesting to you, and something you think you may want to do on your down time. Then narrow that list down to 2-3 options to give you a clearer picture of how you can accomplish one of these options as you go through the next steps. Next, think through the amount of time you can commit Once you have your ideas down, think through how much time you have to commit to your potential side hustle. You need to think through multiple aspects of the time commitment here. Things to think about include: How long it will take you to set it up? Do you need to do marketing for this? Create a website or rely on word of mouth? Do you create a social media page? How long will the task itself take to do? *Pay attention here – this time could impact your pricing* Is there prep time needed? How long will it take me to do the actual task? Is there follow-up needed? How much time are you able and/or willing to commit to this? Do I want it to be an everyday, every week, or just a few times a month thing? Do I realistically have that much extra time each day/week/month to commit to it? Will there be something I have to give up to be able to achieve this goal? Set your goal Think through “what is your main goal”. Is it to get some extra cash a few times a month to be able to spend on your afternoon coffee runs and feel guilt free? Or is the goal a way to start supplementing your income and helping you build you emergency fund or pay off debt? Knowing and having a clear understanding of what you want the goal of this side business to be can help answer some of the above questions in regards to time commitment. Research, Research, and Research See if others have done what you are thinking about doing. Ask yourself, how have they have been successful, or, how what has failed? Look and see what they are doing online. Do you know someone else or a business that is currently doing this? Reach out to them and see if you can pick their brain on how they got started. Get their feedback. Take suggestions on things that they saw work or didn’t work. Also, create a checklist for yourself. See what you need to have to get this off the ground and running. This could include a certification of some sort, to office supplies, to online promotions, etc. Don’t also forget to consider any upfront costs such as materials possibly needed, or work space and rentals you may need to have to accomplish whatever it is that you have decided to undertake. How do you know when to change it from a “Side Hustle” to a business? If you feel like you are working two full time jobs, this could be a pretty good indicator your side hustle has moved on to being your business opportunity. Another indicator that you may need to consider making this your new full-time job, is when you are turning down other jobs or work opportunities associated with your side business because you don’t have enough time to accomplish these tasks. If this is something you start to see with your side hustle and want to make it into a business, that is great, however, make sure you give it time to have actual data and know this can be stable, productive income for you. You need to see steady, consistent growth overtime with your side hustle before you decide to quit your day job. And make sure you have run the numbers, can live off the income, have reviewed all the legal structure and tax paperwork you will need to fill out. Also, don’t forget you may need to find new insurance coverage if yours is currently through your employer. Be sure you understand how all of these things can affect your overall bottom line. Fast cash is nothing without the hustle Whichever route you decide to go with, remember making “fast cash” is not really a thing if you want to start a side hustle. Time, work, energy and organization all need to go into it to make it successful. From the start of the process, to being smack dab right in the middle of it, how much “hustle” you put into it, regardless of what you decide to do, will give you’re the reward you are looking for in the end.

How many times can you think of something in your life that was painful but ultimately ended up being for your own good? One of the most quoted verses we recite to each other during times of hardship or worry, is Paul’s words to the Romans, divinely inspired by God, which says, “And we know that for those who love God all things work together for good, for those who are called according to his purpose” Romans 8:28. Yet we all have this perception that life should be easy, smooth and calm and in a sinful world, it is anything but that. The stock market is part of that fallen world sometimes but most of the time it’s a wonderful blessing from God. It’s quite honestly one of the most amazing feats of American ingenuity, allowing common folks like you and I, a chance to buy companies that in other parts of the world or generations ago, would have only been available to the super elite. Yet here we are in 2022 and companies that create incredible shareholder and community value we get a chance to invest into and own a piece of. Yet for many people the stock market is sadly something they fear and often misunderstand, hence the plentiful amount of data that shows us, as Financial Advisors, how most people do the opposite of Warren Buffett’s sage advice, they buy high and sell low. Ouch! In today’s article, my intention is to walk you through a quick example of how stock market drops, such as the bear market we are in today, if you’re under the age of 60, should be something you are rooting for, every once in a while, to help create even more value, than would have been possible should the market gone up in a straight line. 2018 Case Study Who remembers 2018? We had just come off President Trump’s first year in office and he successfully negotiated the Jobs & Tax Act of 2017, which gave us all money right back in our pocket, in the form of lower tax rates and he was in the midst of doing what he did best – negotiating – a new trade deal with our largest trading partner China. On top of that the Federal Reserve President, Jerome Powell was feeling pretty good about the economy, and as a result, he and his board of governors were ready to start increasing interest rates. Economically everything seemed to be going well. Around the second half of the year as the trade deal with China got tense and the market started to react negatively to higher interest rates, and eventually hit a nearly 20% decline on Christmas Eve. The only negative stock market year during President Trumps tenure in office, happened this year. What happened to investors that started investing in 2018? How did they fare since then? They saw a negative 20% in 2018, a negative 35% in 2020 and the over 20% negative returns so far this year. No way with three negative 20% returns in that period of time, that we still came out with a positive result, right? Well, the numbers may surprise you. Let’s dig in Ben & Arthur – A New Twist Let’s play the Ben & Arthur game, like Dave Ramsey does in Financial Peace University, just with a twist. Let’s assume Ben had $10,000 and he came to his Financial Advisor at Whitaker-Myers Wealth Managers, on January 1st of 2018. Ben is very excited because 2017 was such a great year for the stock market and he feels like this is a great time to invest. Ben leaves his money invested from January 1st 2018 through yesterday’s close on the stock market, July 6th 2022. Arthur on the other hand, didn’t quite have the cash to invest in January 2018 but finally around the end of the year contacted his Financial Advisor at Whitaker-Myers Wealth Managers, who graciously offered to meeting with him and get his funds invested on Christmas Eve 2018 (12/24/2018) and Arthur, too, left his money invested until yesterday’s close of business July 6th 2022. Who would have had more money today and would it even be a positive result, with all those negative numbers, they had to suffer through, that I mentioned above? Before we dive into the numbers, can you agree with me that logic would argue that Ben who invested nearly 12 months before Arthur, should have more money? In Dave Ramsey’s Ben & Arthur, that is the point, right? Whoever starts earlier ends up doing better. However, in that example they look at straight line, linear growth, which we know is impossible. Do market fluctuations or Bear Markets create good opportunities for me to invest? Said another way, if I’m younger (under 60 is definition of younger in investing, in my opinion) is a Bear Market a good thing for me? To understand what happened to Ben take a look at this chart right here. You can see that Ben invested $10,000 to start 2018. He saw it get to as high as $11,000 in 2018 before taking quite the tumble near the end of the year. Not to fear, it recovered until COVID-19 when the market fell another 35%, of which he quickly recovered from and then finally he has lived through our latest market turmoil and he is sitting with $14,600 just a few short years later. Arthur on the other hand, who invested during an almost bear market (-19.80% in 2018) has a chart which can be seen here. He saw his investment shoot straight up because he used some Warren Buffett tricks, he bought low and then he too had to deal with a -35% during the COVID years, while simultaneously to Ben suffering through our recent rout yet he now sits with $16,600. Wow! Nearly $2,000 more on $10,000 investment or 20% higher, because he invested on a 20% dip! Think about that with me for a minute. If you were putting into your 401(k) or your Baby Step 4 Roth IRA during the year 2018 the money you put in during January 2018, while still positive actually didn’t do as well as your deposits that were put in during December of that year. Meaning that the near Bear Market of 2018 actually was a huge blessing to you as an investor. A nearly 20% blessing. The trade war with China, a man-made issue, actually became your best friend, in terms of your rate of return. 2022 Implications What we see from the Whitaker-Myers Ben & Arthur example, is that dollar cost averaging, or saving and investing money each and every pay period can help take the emotion out of investing and turn a Bear Market (a 20% decline or more) into something that actually long term provides significant benefit to you. Knowing what we now have just learned, let’s start to re-train our brain and begin enjoying these stock market drops. Not because we enjoy watching the value of our investments decline from what they once were but rather because the greatest wealth building tool in the world has given us a cheat code – an opportunity to buy things for a limited period of time, that are cheaper, sometimes much cheaper, than they previously were. If we believe Romans 8:28 and I mean REALLY BELIEVE IT, don’t we owe it to ourselves to trust the process that has worked for 100 years. Here’s another cheat code – if it doesn’t work, it didn’t matter what you did anyways, it’s Revelation time. As always, your Financial Advisor at Whitaker-Myers Wealth Managers is here to have the heart of a teacher and help you understand how this current market is affecting your plan to achieve your goals and retire. Reach out to us today!

Tis the Season! Wedding Season that is! With statistics showing 80% of all weddings taking place between May and October every year. And what better occasion to either practice AMAZING budgeting skills, or watch how easily it can be to BUST your budget, than a wedding. In a recent poll from The Knot, the average wedding in 2021 from across the United States cost $28,000 (number of guests, time of year, and location not specified). Oh, and these numbers did not include engagement ring costs, or honeymoon. Now for some people when they hear that only one day could cost them on average almost $30,000, they often ask, is it worth it? And I would agree with those who ask that question. That is a lot of money to spend on “just one day”. BUT I also disagree in the fact that you should NOT forgo a wedding just because you don’t think “it’s worth it”. Weddings are meant to be a fun, enjoyable experience with your family, friends, and loved ones. It’s a day to always remember, and a day to cherish for a life time. Maybe I’m getting sentimental because my own wedding anniversary was just here on the 16th of June (love you hunny!), and yes, I fall within one of those 80 percenters. But I will still to this day, say it was one of the best days of my life, I would not change one thing about it, and that I had the BEST time. So, I say, YES, HAVE THE BIG WEDDING! But do it in a reasonable, and comfortable way that is not going to break the bank, or leave you (or loved ones) in debt because of it. And I know from planning my own wedding, how that can feel like you are being “cheap” or “cutting corners” on a day that means so much to you. But there are ways you can still have a wedding on a budget, but have it be in disguise that no one will ever know! How to get started The wedding business did not become an over 300-BILLION-dollar industry just because flowers smell good and look pretty. Realize going into planning, that they know weddings are going to be emotional for you. And that you are going to want everything to be “perfect”. They play on the psychology and use it to their advantage. That’s why going into planning, you have to have a plan. Kind of like “having a meeting before the meeting” idea (office humor anyone?). Before you start looking for the “dress of your dreams”, or taste testing your menu, sit down with your to-be-spouse, and if any family member(s) are helping contribute to the expenses. Have a “family budget meeting” with them. Set what the preferred end budget expense should be, and what major elements you would like to include in your day. Think of all types of vendors you could want or need, all little items you think you “have to have”. Write them down. Because if you don’t, these are the things you will think about later and blow your budget on. Then set some realistic expectations for the dollar amount you have to spend on your day. Figure out your timeline for your wedding, and start adding a line item in your monthly budget to start saving for your wedding (cough cough…..sinking fund). Time of year/day of week matters Remember how I said 80% of weddings fall between May – October? Well getting married on one of these “off season months” could save you a lot with your vendors/venues. First off, you’re more than likely going to have more date options, and they sometimes give discounts during this slow time, because discounted work is still better than no work/business. Day of week affects pricing also. Saturday is of course going to be the most popular, and in turn cost more. Consider a Friday or Sunday for again, better date options/availability, and also pricing. Do I say “I do” to a Wedding Planner? First and foremost, you do not need a wedding planner. I repeat, YOU DO NOT NEED A WEDDING PLANNER. What you need is a hand dandy, trusted notebook (and sometimes excel if you want a digital copy of things). If you want to get super fancy, they sell wedding organizers online for like $20 – 35. Again, something I don’t think is necessary if you keep good notes, and organize your notebook in sections, but if it helps you feel like you’re on track, it’s still cheaper than a wedding planner, so have at it. The key here is what I already said, keep good notes. You need to keep notes of who you talked to (vendors and venues) and their estimated quotes they give you. You need to keep track of dates they have available, what all their services include for each specific package/price, and it never hurts to ask if they have any types of discount pricing. If you start to feel overwhelmed with details, ask a friend or a loved one to sit down and talk through details with you. More often than not, someone in your close circle has been married before, knows the feelings you’re having right now, and can help you talk through them. Also, if you feel you need a wedding planner to “make sure everything goes just right and perfect” the day of the wedding, ask a trusted family member not part of the wedding party, or even maybe an organized co-worker that you are friends with to be “point person” that day. Chances are they will say yes and feel a bit honored you trust them this much. Then when working with vendors, give them their name and phone number to contact. Discuss with your friend/family member prior to the day what your goals and expectations are and how you would like them to handle something if something were to come up during the ceremony/reception. And remember, you are the only one who will know if something “does not go off as planned”. To everyone else, it will be as how you planned it. Example, we were not planned to cut our cake until after dinner/before first dances, etc. When we got to the reception area, my “in charge day of co-worker” notified me the cake was starting to lean a bit sideways and did not think it would last another 1-1.5 hours in the 89* heat (yes, it was miserably hot out in full tuxes and ball gown). So, we told the DJ after we made our entrance to notify everyone that we were cutting the cake and to head that way. We cut the cake, smiled for pictures, and then went to our seats. No one knew besides me and a few people. And it did not ruin the day. A fallen cake, cut 1.5 hours later would have been a possible way to ruin the day I would think. Have a concept in mind before you start shopping Let’s jump back now to the planning piece of the wedding details. I like to tell people have an idea of what the feel of the wedding that you want will be. Is it country chic, eloquent and formal, or clean lines and modern? This will help you envision what type of venues to look at, dresses to steer towards, and how you can possibly decorate for the reception. Where should I shop? Check out Facebook. See if there are any local Wedding Resale pages you can join. Items on these sites range from wedding décor, signage, center piece items, to even wedding dresses. Some worn, some never worn besides when they tried them on and either changed their mind, or the wedding changed/did not happen. If you are making decorations, center pieces, never underestimate the power of your local dollar store. They often have candle votives, various size and shaped vases, and other items you could potentially use vs. heading to your chain craft store. I also read about a couple who recently were featured on Good Morning America because of their “Wedding on a Budget” story, and she shared she bought her dress online from the website Shein for $45! Again, it all goes back to your taste, and what you are looking for, but there are deals out there, you just have to be open to finding them. Also, don’t forget to shop your family and friends… Have family members and friends gift you their talent(s) Do you have any family members that perhaps are in the wedding industry themselves? Or do they have any specialized talents? Some examples of how we had family and friends “gift us their talents” for our wedding saved us several hundreds of dollars. My college roommate and her husband like to make YouTube videos on the side. Hello wedding video! One of my high school friends loves to paint. She created a canvas with our names, wedding date and picture for our guests to sign which now hangs in the entry way of our home. My best friend does design work and made our wedding invites. All we had to do was pay for printing from a print shop which was way cheaper than doing them online. All of these were HUGE savings! Again, your family members or friends may feel honored in this unique way to celebrate your special day with them. Not only did it help us save money – which of course is a HUGE benefit, but I personally felt lucky that I have people in my life that wanted to do those things for us, and to show us their love for us through their talents. Plus, if they do this as a side business, it’s additional marketing for them as you tell people of their services! Remember roses are red and violets are blue, but what’s the best flower option for you? Flowers can add up….and FAST. So how do you still have a beautiful bouquet without blowing your budget? There are a few routes you can go with this direction. Silk flowers are usually less expensive than real flowers, especially if you want something out of season from a florist. It’ll take some time and creativity, but you can usually make your bouquets, boutonnieres, etc. for a fraction of the price. If you really want real flowers, I suggest looking into Sam’s Club or Costco. You can usually buy bulk flowers for a lower price, sometimes as low as $1 a flower. Again, you’ll have to create the various items yourself, but in the long run you are saving more than you would with using a florist. They also have some pre-made bouquets available as well, which average about $10 a bouquet…can’t beat that. Which ever direction you go, fake, bulk, or through a florist, limit your flowers to wedding party only. Skip on flower arrangements for tables, decorations, etc. These items will eat away at your budget and fast. Now, let’s talk reception This is where the majority of your budget will be going. Between linens and centerpieces, to guest gifts, caterer, DJ, bar, etc. etc. The list could go on, but it all starts with the venue. Venue Remember when shopping for the venue, make sure to ask some important questions that could impact your budget. Can I bring in my own alcohol? Can I bring in my own caterer/food items? How many tables/chairs are provided through the venue? Or do I need to rent my own? Are linens included? What do tables look like, can you get away with little or no linens? Do you have any décor that can be used (free of charge – or cost per items)? Is it a flat fee for room rental? Or do you also charge a per person cost on top of room rental? If a barn or outside facility, are there restrooms/handwashing stations? Does the venue supply these rentals or do you need to rent these additional items? Also, don’t be afraid to look for a family member or friend that has a lot of open land/barn you could use. But be aware of a lot of additional elbow grease, set up/clean up and lots of logistics that come into play for this option. I am not saying it is a bad option, and could be cheaper for you in the long run. But beware of all the preparation time and possible costs that could come with that as well. Centerpieces You can spend more here than you would actually think. Be smart about your centerpieces. At the end of the day, people are either going to take them home (and later throw them out), you will throw them out at the end of the night, or they will sit in your basement for years later. A great place to shop for these items is that wedding resale page I mentioned earlier. You can usually get items others have used at a discounted price vs. paying full price for them. Also, keep this site in mind for your resale items! Think of ways you could potentially make your centerpieces? Or what could you collect over the months to use as your centerpieces that are cost effective? For our centerpieces, I started collecting glass bottles of various sizes and colors. I asked family and friends to save any wine/liquor bottles, and even went to a couple of restaurants around town and asked them to do the same for me. Then one weekend my then fiancé and I filled the bath tub up with water (multiple, multiple times) and peeled labels off bottles. I bought some twinkle lights, votive candles from the dollar store and added some greenery I bought in bulk cases and boom, unique centerpieces I didn’t mind throwing away at the end of the day. I also went to a summer wedding where the couple bought wide, but short vases. Filled them with water, then sliced limes, lemons and oranges to float in them with a floating candle. It was so pretty, simple and smelled great. Bonus, it helped keep bugs away. They said they just bought big crates of each fruit and was super cheap. Caterer Shop around for this if you’re able to, and think of outside of the box ideas. Caterers don’t always want to do the same thing over and over again. See if they have a unique spin, or menu idea. Sometimes these changes can be better pricing depending on what you do. The type of meat you choose will raise food costs too. Be aware of what protein(s) you are serving as that can affect your budget. Talk options with your caterer. Get lots of ideas before settling on the “normal”. Also, remember a buffet is always going to be cheaper than a plated meal per person. And from my own experience both personally, and working at a wedding/event venue during college, food usually stays warmer because it’s constantly being replenished vs. held in a hot box, put on trays and then carried to the specific tables. Bar Same as the buffet, a Beer and Wine bar will always be cheaper than a full bar. Alcohol is one of the largest up-charges in the industry and where you can spend a good portion of your budget, especially if it is an open bar. If you want something besides just beer and wine, consider adding one or two signature drinks (Bride and Groom drinks) for your guests to choose from to your beer and wine bar. FYI – this still includes sodas, water, etc. If you want a full bar, don’t go all out and do top shelf. Majority of the time the liquor is getting mixed with something anyways, and a lot of times drinks get put down after a few sips and are forgotten about. Consider doing drink tickets if you really want to keep an eye on budget. Allot each person 2 tickets, and once they are used, it turns to a cash bar. OR you can have an open bar until a certain time, and then turn it into a cash bar for the rest of the night. DJ Ever heard of a “DJ in a Box”? It is a music system which comes with hundreds of songs from all kinds of genres for you to choose from. You can create your own playlists from the options available, choose from playlists already created based off event suggestions, or a combination of both! It comes with the computer system with pre-downloaded songs and speaker so you can set up anywhere. Depending on your rental company, these can range from under one hundred dollars to a couple hundred dollars. Or, some people are skipping the preloaded portion of the music system, creating their own play lists from music off their phones or Spotify, and renting just a sound system they can hook the phone up to. Designate a “DJ” from your family or friend group, and have them take requests or make special announcements. This way if you don’t want the “Chicken Dance” played at your wedding, have no fear because you picked all the songs! Favors Do yourself a favor when it comes to favors and stick to something cost efficient and useful. A lot of guests usually don’t take their favors with them if they do not have a use for them, or if they are big and bulky. Which means you are left with a lot left over favors, and out a lot of money at the same time. I often suggest a favor that be used at the reception, or easily thrown in their bag to take home with them. My go to suggestion for this is to make a small “pre-teaser” dessert. And cookie bars work GREAT for this. They are easy to make in large batches, majority of people like cookie bars (and able to eat them with various diets/allergies), and they are very economical to make. The most you’ll spend is the time it takes to make and wrap them. Things that don’t need to make the cut... Yes, they may look magical on Pinterest, but these are the things that no one is going to notice if they never make it to your wedding, or if you splurge and buy the pre-made structures or items. Programs You do not need to tell how you know your wedding party; a lot of people already know why your sister is your maid of honor. Also, it’s not like they need to plan for intermission; the timing or agenda of how your wedding ceremony will play out is not a reason to spend money on paper and printing costs to just be left on church pews, or venue chairs. Menu cards If you are doing a buffet, talk to your caterer ahead of time and ask them to include menu cards for you. These are usually free of charge and they typically print them on nice card stock and in a pretty font. If you do go with the plated meal route, guests can always ask a server what the meal is if they did not pick their option. If they did pick their food option, usually you coordinate this with the venue so their servers know how to place these options. Fancy Signage Everyone knows the bar is the bar, the photo booth is the photo booth, and the dessert table is the dessert table (you get the picture). You don’t need signage telling everyone what everything at your wedding is. Unless you want to call out something specific, like tribute to those who can’t be there that day, or specific ingredients for allergies, or even the bride and groom specialty drink, I say skip the signage and save yourself the dollars you’d spend on these. And if you do want to do something like this, buy a nice frame (average $5 max) and print something in a nice font matching your color scheme and put it in the frame(s). Seating Charts Print your own and make it simple. Again, look at Pinterest for inspiration, but don’t get married to the over cost items that are used literally once. For ours, we used sticker paper I found online, and empty spray-painted wine bottles. Each wine bottle got a table number and everyone sitting at that table was listed on that sticker sheet. Then we took crates we had from home (we store our blankets in these in the living room) and stacked the wine bottles around and in the crates. At the end of the night, I threw the recycled wine-bottles away, and took my crates home. Most I spent was on the spray paint and sticker paper. All said, you can still have the wedding of your dreams… Mostly because you will be marrying the person of your dreams, but also because you can have a nice wedding, that is affordable, and has “Pinterest feel” without the expense. Remember, you don’t have to pay whole sale, name-brand, or full price for everything. Shop around, think outside of the box, and remember, it is for only one day. I know it’s hard because you will want it all to be perfect, but be reasonable with your wants are as well. If you are realistic with what you want, and can afford, you will have the wedding of your dreams. You don’t have to cut things out entirely, or sacrifice something, but you can have a discounted wedding and no one even needs to know.

Have you ever made a decision in the past that, years and years later, you came to regret? I’m sure we all have. We work with teachers all over the country, but one conversation that continually happens with educators in Ohio is their frustration with the pension system that they’re under. In recent years the requirements to be able to retire with full benefits has changed, of course not in a good way. According to STRS’s website, which can be seen here, to be able to retire with full benefits you must achieve 35 years of service or age 65 with at least five years of service. For example, a teacher that starts at age 23, would become eligible for retirement with unreduced benefits at age 58. This leads to the questions: Is the STRS Defined Benefit Plan (Pension) the best option for me? Would I regret my decision to enroll in the defined benefit pension plan, later in life? STRS Defined Contribution Plan This is a plan available to teachers in the State of Ohio that acts more like a 401(k) plan, as opposed to the traditional pension plan. Let’s look at the specifics of the defined contribution plan vs. the defined benefit (pension) plan. Teacher Contribution Amounts: Contribution required by teacher for defined contribution plan: 14% Contribution required by teacher for defined benefit plan: 14% Therefore, we see as a teacher your contribution does not change – meaning it doesn’t cost you anything extra to participate in one plan over another School District Contribution Amounts: Contribution required by school district for defined contribution plan: 9.53% Contribution required by school distribution for defined benefit plan: 14% The school district is required to make a contribution into STRS. If you participate in the defined contribution plan, you’ll receive a 9.53% contribution (think of this like a 401(k) match) into your account. How is my Retirement Benefit Determined? The defined contribution plan will determine your benefit, meaning what you can annuitize into an income stream or roll over to your IRA, when you retire, based on the deposits you and your employer have made – which is 23.53% of your salary each year and the subsequent investment performance of those deposits. STRS gives you a host of investment options along with target date funds, that will invest your dollars based on your age and expected risk tolerance at that age. A list of investment options in the STRS plan can be found here. We will walk you through an example below, however consider if you had a 401(k) that forced you contribute 14% of your pay and gave you a match of 9.53%. It would be hard to image a scenario, where that person didn’t do well into retirement. The defined benefit plan will determine your benefit by how many years you have provided service or your age + a minimum amount of service. Since this article is geared towards the new teacher, who must elect which plan is appropriate for them upon hiring, based on today’s STRS rules, you would need to work 35 years to reach your full unreduced benefit. The amount of contribution by you and your employer has no factor in how your benefit is calculated. Essentially, those contributions are your ticket into getting the pension. Should you leave employment and not stay in teaching, you will be refunded whatever you have put into STRS plus potential interest and a portion of your employer contributions (after 5 years). Hypothetical Example Let’s assume Susan is a new 23-year-old teacher having to make her decision around the defined contribution or defined benefit. Her starting salary will be $32,000 and she’ll average 2% raises over her career. How should she weight the options in front of her regarding these two different retirement plan options? In the defined contribution plan, with an average annual rate of return of 7.22%, she’ll have approximately $1,418,112 at age 58, which using the 4% distribution rule, would create $56,724 worth of annual income and (and this is important) she owns an asset worth $1,418,122, meaning if she just lives on the interest, the principal is able to be passed to her children, other family or charities she cares about. You can see the annual growth projection of this here. In the defined benefit plan, after working 35 years and contributing the same amount into the defined benefit plan, Susan would receive a monthly benefit of $4,093 which would annualize into $49,116. Additionally, if Susan was married and wanted to cover her spouse on this pension (so if she died before him, he would receive her pension still) she is going to get even less than $4,093. Finally, Susan does not own this pension, meaning that when she dies, if she had been paid out the money she had put in STRS (her contribution), there is no benefit left for her children, family or charities. You can see the STRS pension calculation we ran here. One argument we hear from those opposed to the defined contribution plan is that, “you’re assuming you get a 7% rate of return, what if that doesn’t happen?” Valid question, however the alternative plan, the defined benefit pension is only able to provide a benefit to you because the money is invested into stocks, bonds, private investments and real estate. Meaning if the stock market for whatever reason had a 35-year window where it didn’t average 7%, we would argue the pension is in big trouble as well considering it is providing you a monthly pension, only because the money has been invested and presumably did some reasonable rate of return. As always, we encourage those skeptical to view the Prudential Asset Allocation Chart, which shows the returns of the market over the last thirty years. Other Considerations Some other items you may want to consider when determining which plan is correct for you are: While you are 100% vested in your deposits in the defined contribution plan, your employer contributions are vested at 20% per year. This means that if you leave teaching after three years, you would receive 100% of your contributions (plus or minus the investment returns) and you would receive 60% of the employer contributions (plus or minus the investment returns). Survivor Benefits: In the defined contribution plan, if you were to pass away, the amount of contributions you and your employer have made (assuming your vested in employer contributions) would be refunded to your beneficiaries. There is no monthly benefit available to them. This is why term life insurance while you’re young is so important. Disability Benefits: There are no disability benefits in the defined contribution plan, so you would want to talk to your Financial Advisor about the possibility of obtaining a disability insurance policy. If you’re young and healthy these should be very affordable and easy to obtain. Health Insurance: You will not be eligible for the STRS health insurance plan. Three main alternatives to consider are: Would I be comfortable with a medical sharing plan in retirement? You can read more about these from the article we wrote last year. Would I be eligible for Medicare at age 65 because my spouse is enrolled in Social Security? Does my spouse have health insurance coverage in retirement for our family through their employer? Additional Savings Options For the educator, participating in either the defined benefit or defined contribution plan, we highly encourage them to stay away from the annuity salesmen & women that come to their benefit fairs. It is always sad for us to see how many teachers, many who are already getting a guaranteed pension because they enrolled in the defined benefit plan (pension) are being sold annuities which have much higher fee’s (if they are variable annuities) and/or much lower returns (if they are fixed or indexed annuities). Your retirement money is long term money and putting it in a low yielding investment vehicle that pays your advisor a high commission is not a great option. We strongly encourage teachers to consider opening a Roth IRA, to supplement their STRS plan. These dollars can be invested in mutual funds or ETFs, that have been vetted and approved by their trusted Financial Planner. Conclusion We are big believers in the Ohio STRS Defined Contribution plan because it allows you, the participant, to be able to save and invest for your future like you would in a 401(k), without the governmental control of a pension, which has consistently changed over time and not for the better. However, every situation is unique and it is our advice before electing either the defined benefit or defined contribution plan in STRS that you reach out to a Financial Planner who can understand your unique situation.

A key component to smart investing is ensuring that your investments are diversified. Diversifying your portfolio incorporates a variety of different asset classes to reduce the volatility of your portfolio overtime. Mutual funds and exchange-traded stocks (ETFs) both serve this purpose while having unique features that differentiate them. Mutual funds have been around since 1924 while ETFs launched in 1993. A main component that separates the two is how they are traded. Mutual funds can only be purchased at the end of each trading day. The price of the mutual fund is determined by a calculation called the net asset value. However, ETFs can be bought at anytime throughout the trading day hours (9:30am to 4:00Pm Eastern time). Mutual funds, in general, have a higher minimum investment requirement than ETFs. This minimum can range anywhere from a $250 initial deposit to funds that have a minimum investment of $3,000. Mutual funds typically have higher internal expenses than ETFs. The higher expense ratio with mutual funds is due to how they are managed. Many mutual funds are actively managed meaning that a team or a fund manager is actively making choices of buying and selling stocks in an attempt to try to beat the market. This takes significantly more effort than a passively managed fund whose investment securities are automatically selected to match an index. Mutual funds can be split into two categories: Opened-Ended Funds and Close-End Funds. The majority of the mutual fund marketplace is occupied by open-ended funds. The number of shares the fund can issue is limitless. They can be bought and sold directly between investors and the fund company. Despite there being no limit on shares that can be issued, the value of an individual’s shares is not affected by the number of shares outstanding. Close-End Funds have only a specific number of shares and does not issue new shares even as investor demands increase. Net asset value (NAV) is not used in close-end funds to determine price. Instead, price of the fund is driven by investor demand. Exchange-traded funds (ETFs) share a lot of similarities with mutual funds and individual stocks. From a price standpoint, ETFs can be as cheap as the price of one stock plus fees or commission. Also, ETFs can also be sold short just as a stock can. These funds possess many tax advatanages with one of them being delayed capital gains tax. Mutual funds pay capital gains tax while holding shares, but ETFs do not pay capital gains until the sale of the product. ETFs separate themselves from other forms of investments with their creation/redemption process. The creation process is the buying of all the underlying securities and bundling them into the exchange fund structure. A specialist who is empowered to create or redeem ETF shares will buy the underlying securities and put them into a trust. The redeeming of an ETF is often referred to as “unwrapping” the ETF back into individual securities. It is the reverse process of the ETF creation. This process keeps the value of the ETF in line with its net asset value (NAV) so that it does not sell at a discount or premium. In summary, both options are good investments. Each one offers specific advantages depending on what you are looking for out of your investment. If you want to short sell or are looking to intraday trades, ETFs would be an investment to look in to. If you want a fund that will try outperform the market by selecting what it believes are the right investments, an actively managed mutual fund could be the investment option for you. These goals and criteria are important to think about so that you can tell you financial planner what you are looking for. This will allow them to customize a plan and investments that will best suit your financial needs. To discuss your specific investments and learn about more about Mutual Funds and ETFs please contact one of our Financial Advisors today!

Did you know: Good Driving Habits Can Lead to Better Gas Mileage And More Dollars In Your Bank Account? There are several things you can do while not only driving, but also with keeping up on car maintenance that can impact your gas budget. And with increasing gas prices lately, anywhere you can find a few extra dollars to save, may be worth changing some old habits. Roll Down Your Windows and Turn Down Your AC With summer heat starting to climb for many of us, take the opportunity on “free” air conditioning and roll down your windows while driving. By rolling down the windows, you help release the hot heat that has been inside your car all day, but while driving, will also keep your car cool with constant airflow. When you use your AC, you use more gas to cool down your vehicle, especially the higher the temperature increase. But what if you do want to use your AC? I get it, open windows means tasseled hair and lots of knots if you have long hair, and some people don’t care for the wind in their face. If you can, try rolling down your windows to allow your car to cool down first. This way your AC doesn’t work over time in trying to get rid of all that hot air right from the start, and then try to maintain a cool temperature. Same Goes for your Heater I know no one wants to think of winter and cold right since we finally got out of that season, but the same idea could go for your heater. During the colder months, when you turn your heater on, turn it to the lower settings and let your car gradually warm up, vs. having it on full blast on the warmest setting. You’ll create better fuel efficiencies by letting your car progressively get warm, as opposed to trying to warm it up in the first few minutes you get in the car. If you have access to one, try parking in a garage to not only keep the snow off, but also allow your car to be in a warmer climate so not as much energy and gas is used to warm it up to your preferred temperature. Go the Speed Limit You can save some money by letting your foot up off of the gas pedal and go the speed limit. Even going 5 -10 mph over the speed limit can decrease your fuel efficiencies. According to AAA’s fuel savings tips, it can save you a few miles per gallon. Not to mention, you can be saving on the speeding ticket you will more than likely avoid by going the speed limit. Use Cruise Control When you are able to, especially on the highway, use cruise control. It avoids the constant acceleration/deceleration and keeps your car at a continuous speed. By having to increase your speed constantly, you are spending more gas trying to get to that higher speed, than if you were to stay at the same constant speed. Keep Tires Inflated Make sure your tires are at the correct tire pressure. According to the U.S. Department of Energy, if your tires are inflated at the correct pressure, you could improve your vehicle’s gas milage on average by 0.6%. Not only will it help with gas prices, but keeping your tires inflated correctly, can help with the lifespan of the tires. Reduce Excess Weight and Cargo When you travel with additional weight, you create more of a drag, which in turn can burn more fuel. If you’re able, always make sure to unpack your car of heavy or unnecessary items when not need for the trip, or end destination. Also, I agree they are a space saver for vacation, but don’t forget to remove your car’s roof top carrier when it is not being used. These are not ideal for aerodynamics as they increase wind resistance on your vehicle, resulting in lower fuel economy. Don’t be a Racecar Driver Accelerating like your Mario Andretti when the stop light turns from red to green may sound like a good time if you have the need for speed, but it also drinks up your gas much more quickly than if you gradually increased your speed. Same goes for decelerating. Rather than go full speed up until the last minute to your planned turn or stop vs. gradually coasting, can also make you go through gas quicker speed. And my guess, it’s not the kind of speed that is all that appealing to your bank account. The Day of the Week Matters Many sources and reviews say that you should avoid filling up your tank, if at all possible, on the weekends. Typically, more people are traveling (leisurely) on the weekends so more traffic out and about calls for more consumers to be pulling up the pumps. Which means gas companies are going to take advantage of this and drive the gas prices up. Also, try to avoid Mondays or Fridays as well. They tend to be higher since they bookend the weekend and again, those gas companies are going to try and capitalize you being out on the road. Aim to fill up mid-week to see a better number at the pump. Holidays Have you ever noticed how the price increases around holidays? Again, it’s the gas companies’ way to make an extra buck or two by knowing more people will be out traveling to see loved ones, or go on vacation. Being aware of this ahead of time may encourage you to get gas a few days before an upcoming holiday to hopefully avoid that increase. Take a look at your budget, and see how much you are spending on gas each month. Then try implementing these tips and see how much you can save at the pump this year. If you need help with budgeting, schedule a meeting today with our Financial Coach, Lindsey Curry and see where else she can find you extra dollars in your budget.

Turn on CNBC, Fox Business or any other news media and you’re hearing a term that is never any fun and it’s … “bear market.” A bear market refers to when the market drops by 20% or more within a sustained period of time – typically two months or more. Another definition that is used to describe bear markets is when investors are more risk-adverse than risk-seeking. It has been a couple of years since we have seen a bear market which explains the reaction that has spurred from the current state of the market. In efforts to reel you back in to facts instead of the emotions that the media can evoke in you, here are some friendly reminders about bear markets: bear markets are normal, they will come to an end, they will be painful. Take a look at this chart. You can see as of June 15th the S&P 500 was down 20.72% year to date. Bear market for the S&P 500 – check! Other parts of the market have been in a bear market for much of the year. The Nasdaq, which tracks tech heavy stocks is down 29.82% for the year – bear market for the Nasdaq – check! The Russell 2000 which tracks many of your smaller company stocks (aggressive growth in Dave Ramsey language) down 23.94% for the year – bear market for the Russell 2000 – check! How Long Does a Bear Market Last? Take a look at this chart. The average bear market for the S&P 500 is -30.2% and takes 338 days to go from peak to trough (bottom). However there have been very short-lived bear markets, such as 2020 when it only took 33 days to reach peak to trough, 1998 when it only took 45 days to reach peak to trough and 1990 when it only took 87 days. The peak for the S&P 500 was reached on January 4th of this year thus we are currently 162 days into this bear market. In 2011, the market fell into a bear market because of European credit issues along with slowing growth in the United States. During that market we saw it take 157 days to reach the bottom and roughly 144 days to breakeven. Additionally, the longest bear market was in 2002 when it took 929 days to reach the trough and then 1,694 days to breakeven. Finally, the decade with the most bear markets was the 1970’s, which not surprisingly was during a time of high and uncontrolled inflation. Every market is different and nothing is guaranteed. Mark Twain said, “history never repeats itself, but it often rhymes.” Unfortunately, we can’t tell you when the bear market is going to end. Conversely, we do know it won’t last forever and thus the current market provides excellent opportunity for entering new money into your retirement accounts through either your 401(k) or Roth IRA. Stock Market Provides Good Risk-Adjusted, Inflation Protected Returns Historically Looking back through history you are able to see that stock investments like the S&P 500 are not positive 100% of the time. If you look at the bottom left-hand side of the Prudential Asset Allocation Chart you’ll see dating back to 1992 that the S&P 500 is positive 83% of the time and negative for only 17%. This results in an average gain of 17.91% when the market is positive and an average return of 10.65% when accounting for the negative returns one would have received, since 1992. Economic cycles are guaranteed. Dave Ramsey says, "it's going to rain, so you better have an umbrella." Although variables for the cycle can vary, it is still a cycle and it will not last forever. Should you desire to discuss your portfolio or individual situation, please reach out to one of our Financial Advisors today.

With increasing gas prices, seeing inflation every day at the grocery store, coming off a 2 year long and counting world pandemic, and hearing new updates daily of a war going on overseas, can often make anyone question the market and ask the question of, “Am I going to be, okay?” The talk of “a possible recession” can also make even the most laid-back person a bit nervous about their finances, and put someone in a panic attack if they are tight on cash to begin with. Unfortunately, no one can predict the future, and that crystal ball is still broke telling us when the next recession will hit. But the reality is, there will always be the chance of a recession at any given time, whether it will be in a few months, next year, or even five years from now, there is no certain timeframe to confirm when it will be. What should I do, when I don’t know what to do in this situation? The most important thing you can do for yourself right now, and at any moment in time for that matter, is to take a deep breath, collect your thoughts, and create a well-informed plan. Don’t go into freak out mode. Focus on the things that you can control. Here are a few things you can do to make sure you are setting yourself in a good financial situation if we were to go into a recession. You could call this a “things you can control” checklist… Your Emergency Fund Like Dave Ramsey, we at Whitaker-Myers Wealth Managers suggest an emergency fund that will cover your monthly expenses for 3-6 months. Obviously, that is a broad range and can drastically impact your savings, but it is more dependent on your situation and your comfort level. The suggestion of a 3-month emergency fund vs. a 6-month emergency fund has several factors that come into play, mainly coming down to are you a single or dual income household? If you are a single income household, we suggest trying to save more of that 6-month range, as it gives you more of a cushion since there is not another income to help support you or your family. If you are a dual income household, more than likely both breadwinners will not lose their jobs, or be laid off at the same time, so a 3-month emergency fund is suggested. However, if the current world and economic situations are worrying you at this time; and you are feeling pressured and have a bit of anxiety from what is going on, perhaps you have a conversation with either yourself or spouse. Discuss increasing your emergency fund to start saving more from each pay check because that will give you more of a sense of ease and comfort. Or if you are just starting out in the baby steps, it’s suggested to save $1,000 as your starter emergency-fund. Again, if you are worried and have hesitations about how things are, then increase your emergency fund to an amount where it helps your feel more comfortable if something were to happen and you would need to dip into it. Remember, Emergency-Funds are “break the glass” type of moments. Not, “I want to buy this new couch” moments. Debts and Mortgages If you have either of these, continue to try and get these paid off in a timely manner. The less debt you have, means the less you are giving your income to someone else, and the more of your income you have to put in your bank account. Don’t stop attacking these to set money aside for increasing your emergency fund. It may seem like the right idea, however, now you have created yourself a bigger mess by delaying your debt. Your debt isn’t going to go away, so better to continue to pay it off when you know for sure you have the means and are able to do so. Again, it is not for certain that a recession will happen, so before it potentially does, continue paying off your debt (or your mortgage) with the same intensity as you have been doing, before you are left trying to figure out how to pay them off with potential stress or worry of job loss, etc. One exception to this would be if you know you will be losing your job in the near future. If you see the writing on the wall that your job is being eliminated or your company is going out of business, it is a good idea to pile up as much cash as possible. Dave Ramey always says that you should be working through the baby steps and the only exception to that would be to pile up cash in order to avoid going further into debt, especially when you know a life change is coming up! Current Investments KEEP INVESTING – don’t stop because something “might happen”. If that was the case, no one would ever invest anything. Continue to put the suggested 15% of your income towards your investments, or continue with the plan you currently have. The key is, just don’t stop or decrease your investments because you are worried. And most importantly – don’t take anything out (or more than what is normally taken out of your monthly withdrawals). If you have questions, call or set up an appointment with your financial advisor, ask those questions, and discuss strategies. Even a simple phone conversation with them could help your worried mind and allow you to get a few extra winks of sleep at night. Budget There’s that “B” word again that you always hear me talking about. If you have never done a budget before, maybe now is the time you start one. This will help keep you on track from over spending, and help you set boundaries on your daily living expense to help you save more in case something were to happen. Track your planned dollars and dollars spent We suggest using the EveryDollarApp through Ramsey Solutions. If you have a Ramsey+ membership, you can use the premium version and link your bank account to it. If an app doesn’t seem like the thing for you, an excel sheet will do just fine. The important thing to remember is to start the month out with target numbers for each line item, and go back in and track those expenses routinely. Review the budget a few times a week to make sure you are not overdrawing on the dollar amount you set for yourself in a specific category. This also gives you the ability to adjust your budget as needed to cover unforeseen expenses, or if you notice you are overspending in a category, you can pull from another area to compensate and still keep the dollar amount you want to go into your savings “safe” from being spent. Trim the budget where you can Take a look at the items you are spending money on and see where you can “trim the fat” to put a few extra dollars in your emergency fund each month. Do you have several streaming services; what about canceling one of them? Have a coffee addiction; set out a specific amount of cash and that is your limit to splurge on coffee. When the dollars are gone, looks like it’s coffee from the break room for you until your month resets. Who knows, you may find multiple things you were spending your money on monthly that you realize you can go without for some time, or don’t need at all. Delay instant gratification We live in a society where things are at our fingertips and we can know answers immediately. Sometimes wanting something is as simple as a click of the “Buy Now” button, and you get it two days later (thanks Amazon Prime). Try delaying the immediate urge to purchase an item in that moment because you like it or “deserve it”. Or postpone going out to lunch by yourself and reserve that to only when you make lunch plans with a friend every so often. I know these aren’t fun things to do, but they can help you save several dollars a week. This adds up to a lot at the end of the month that you can put towards paying off your debt or putting in your emergency fund if you are worried right now with the current economic status of things. Don’t be a Dooms-Day Prepper We understand no one wants to hear the words “recession prepping” because no one wants to have to deal with it. But we also don’t want you going overboard with things like selling your home, liquidating your investments or stock piling dollars under your mattress. We are not saying being prepared is a bad thing, in fact it is something we encourage. However, we don’t want the talk of recession keeping you awake at night and going to extremes. We want you to feel confident and ready for anything to come your way if something financially were to happen. We know money can cause emotional reactions and cause more stress in already stressful situations. Hence why we encourage being prepared with a plan. Get yourself in a good state of mind Again, if you are worried about the potential of a recession happening soon, review this checklist. Are you following our suggestions? Are you able to say with confidence you are doing these things to prepare yourself in a logical, informed matter? If you are worried, again, reach out to your financial advisor and have a conversation with them. And if talking with them does not calm your nerves or help you sleep better at night, create a support system that can help ease your worries. This could include close family members and friends, or you could reach out and talk to a counselor if you feel it has gotten that far. Financial situations can be stressful, and with the fear of potential job loss could increase these worries and concerns further. Having the right support in place, or at least identifying who you would reach out to, can help set you up for success if something like a recession were to occur. Lastly… Remember, you will get through this. No, inflation is not fun, and we all do not like it, but you will be able to make it through the rough patches. And if a recession does happen, you will get through that as well. And by being prepared, logically, you will weather the storm just fine. Our Chief Investment Officer just wrote an article last month giving a market update (spoiler alert: he shares data from a few different economists and their forecasts are not as negative as what you might be seeing on TV recently). The article is packed with a lot of information and as we all know, knowledge is power so if you haven’t already, be sure to check out that article HERE.

Each morning when I get to my office the first thing, I do is tune the television to Fox Business. I’m not using Fox Business to provide any kind of research or decision-making; I simply use it as it is intended which is for entertainment and informational purposes only. Normally it is just background noise while I go about my day but I do occasionally tune in to my favorite show, Making Money with Charles Payne. Out of all the shows on Fox Business from opening bell to market close, I find Charles to be very well-articulated and probably the most realistic and educated of all the Fox Business hosts. But one thing Fox, CNN, CNBC, and the other 24-hour news networks have in common is that they would like the average person to believe that the world is coming to an end. Between talking heads arguing about the complete economic and social collapse of our society, we get the commercial that tells the us the only thing that will save us all is buying gold from Fancy Name Capital. I would like to share five reasons why I disagree with that and send a warning, especially to those nearing or already in retirement, to steer clear of these “investments” and stick to the plan you and your financial advisor have put together. If you have not had a conversation with an advisor about retirement and investment planning, please schedule a meeting with us. Basically, Zero Federal Regulation I tend to be perfectly at ease with as little federal government regulation in our lives as necessary. However, I welcome government organizations like the SEC when it comes to protecting investors from scammers, charlatans, and snake-oil salesmen. Physical gold, silver, platinum and other precious metals are not securities. The industry is not regulated by the SEC, FDIC, or backed by the full faith of the USA. They are regulated by Federal Trade Commission (FTC). The FTC is the organization that is tasked with regulating basically anyone selling anything. They are notoriously understaffed and have an incredibly difficult time trying to police physical gold and silver schemes. This lack of regulation has made the physical gold, silver and other precious metals industry a hotbed for not so ethical business practices. Boiler room schemes, targeting vulnerable age groups and making it as hard as possible to recoup your investment after you are in are just some of the unethical and sometimes illegal activities within this industry. Liquidity Physical precious metal dealers will tell you your investment is completely liquid! Whenever you want to get out, they will gladly sell your investment often within 72 hours. But, there’s a catch…If you need immediate liquidity, you will likely never get the fair value of your investment back in cash. This is a point where the dealer has leverage over you and whatever situation you might be in. Just like any old business negotiation, the one who is the most desperate has the most to lose. Because gold and other precious metals are simply commodities like rocks, lumber, or oil their value is only worth what the buyer is willing to pay. If the dealer is buying back the precious metals they sold you, they will give you the lowest possible offer to make a larger spread when they sell it to the next consumer that comes along. The best way to get the highest price for your precious metals is to sell it on the open market yourself. This involves more time, skill, knowledge and know how then most people care to invest their time into. Another important note about precious metals and liquidity is that it is not an income-generating asset like stocks and bonds. It is not a good investment for someone that needs to generate income from their investment or is taking regular distributions to meet income needs. Investment Returns The returns on gold and other precious metals are entirely based on their price appreciation. With all investment returns, time is on the side of the investor. Typically, the longer someone has to hold their investment the higher return they will see over someone with a shorter time to invest. But if I had to choose an investment from the previous 30 years, I would take Large-Cap stocks 1639% of the time over gold or silver. The chart here shows the 30-year returns of the Total Return Stock Index (BLACK) vs. Gold (YELLOW) and Silver (GRAY). The Total Return Stock Index is the return of Large-Cap stocks assuming all cash payouts, including dividends, are reinvested. A $10,000 gold investment made in 1992 would be worth approximately $54,000 today while a $10,000 investment in Large-Cap stocks in 1992 would be worth approximately $174,000. “BUT WHAT ABOUT DURING SHORT TERM VOLATILITY AND MARKET UNCERTAINTY!” -Screams the gold dealer. I will entertain that with the chart shown here. Keep in mind this is through one of the most uncertain times of our lifetime (COVID + current market situation) and I am still buying and holding the S&P 500 rather than running to precious metals. Dates: January 1, 2020 – May 24, 2022 Returns: Total Return Stock Index (PINK) = 24.25% S&P 500 (PURPLE) = 26.77% Dow Jones (GREEN) = 21.39% Gold (ORANGE) = 21.85% Silver (BLUE) = 22.24% Hidden Fees The return charts above do not even include the hidden or “not so discussed” fees and that come along with buying physical gold and other precious metals. If you hold physical gold in an IRA for example, the gold will be purchased through a dealer and sent to a custodian where you will be charged fees for storage and insurance annually. The dealer and custodian will likely charge maintenance fees and don’t forget the markups, commissions and transaction fees associated with buying and selling the commodity. An example of this: You want your gold dealer to sell $100,000 of gold bullion you own. The dealer might charge a sales fee of 15% to cover “marketing and listing costs” so you are stuck paying $15,000 dollars to sell. In contrast, if you have $100,000 worth of an S&P 500 Index fund with Whitaker-Myers Wealth Managers and want to sell $100,000, it costs you $0 in fees. Volatility Precious metals are volatile. In fact, gold has about the same volatility as the S&P 500. With regards to possible returns, according to historical data, it would be more prudent to take a similar amount of risk investing in the S&P 500 with a chance of much higher returns than gold. These are just 5 reasons why investing in physical gold and other precious metals can be a dangerous and expensive endeavor. Alternative investments from stocks, bonds and cash can be something that might benefit your portfolio but we would not recommend large portions of your total portfolio be allocated to these alternative investments. Also, before looking to gold and precious metals do some research or talk to us at Whitaker-Myers Wealth Managers about REITS or broad based commodity ETFs. These alternative investments achieve the diversifcation benefit you desire without the hidden fees, lack of liquidity and oversight and general unfamilarity that can make investing dangerous for the uninformed. If you do feel like you need to have gold, consider a gold ETF instead of physical gold which your Financial Advisor can discuss with you. It will be less expensive and easily liquid for the fair market value at the time you sell. Before making any investment decisions you should speak with a professional about the risks, fees, tax implications and other information necessary to make an informed decision.

2022 has presented some unique challenges to investors regardless of age and the risk composition of your portfolio. Stocks have seen a near bear market (at the time of this writing May 2022) and bonds have seen the worst start to the year since 1842. Basically, if you’re alive, you’ve never seen a market like this. That’s not a reason to panic, bail on your strategy or do anything of the sort, but it has provided investors and investment advisors alike, the opportunity to review your current strategy for enhancements either through more diversification or tactically added asset classes you wouldn’t have considered in the past. One option that has become more popular has been real estate investing. Nearly every person that is an investor, has some real estate exposure in their life because of their home. If you’re fretting about your stock or bond returns for 2022, one thing that may cheer you up would be to review your Zillow home value, relative to what it was a few years ago and you’ll quickly see you have an asset still in appreciation mode, most likely (Note: it’s one reason why when we do Financial Planning we track your total net worth, home and all, because it’s helps you to see, even when stock market assets are declining other assets on your balance sheet can be still appreciating). However, an area that many investors do not get exposure into, unless you’re a business owner, is commercial real estate. This chart let’s you see that during the last thirty years, both stocks and private real estate have led the way in terms of performance, with real estate getting a slight edge, because according to the NCREIF Property Index, real estate has had much better downside protection. Take a look on your local MLS and check the price of any large commercial real estate for sale and you’ll quickly realize this is not something you can typically do on your own. However, investors do have the ability to collectively pool their investments together much like you do in a mutual fund or ETF, with the experience and expertise of a seasoned management team that will make all the buy, sell and hold decisions, through Real Estate Investment Trusts or “REITS”. What Is a REIT? REITS give you the property owner, the ability to invest in multiple real estate projects without the headache of tenants and toilets. REITs are required to distribute 90% of their income to the investors, meaning they can only leave 10% inside the fund for additional real estate acquisition purposes and at least 75% of the fund has to be invested in real estate. You can find REITS that specialize in a certain type of real estate, such as retail, office or student housing and you can find REITs that specialize in certain industries such as healthcare. Why Purchase a REIT? There could be many reasons why you would like to purchase a REIT however commons reasons are consistent income, capital appreciation and diversification. When owning real estate that is occupied by a tenant, you are going to receive rent and that rent, or at least 90% of it, must be distributed to you the investor. This would provide you a level of current and consistent income that can help meet your retirement income needs along with your stocks and bonds. Additionally, over time, real estate has shown the ability to appreciate, especially if purchased in a the right area. Therefore, real estate can provide you with the best of both worlds, current income and future appreciation potential. Of course, with any investment, there is no free lunch, so as an investor I could be purchasing a REIT, that if not properly run and/or if they don’t execute upon their strategy, doesn’t achieve the objectives of the fund or the investor. Thus, as with any investment, we believe due diligence and the help of an investment advisor is warranted. Tax Benefits of REITS IF a REIT is purchased within a brokerage or non-retirement account (Dave Ramsey calls these bridge accounts), it can provide the investor with certain tax benefits that help make the investment more attractive. Before we dig into the tax benefits let’s first understand the two main ways a return is generated on a REIT. First, the rent that is collected from the tenants of the properties owned within the REIT is considered “income”. This income is generally taxable in the year you receive it and taxed at your current income rates. Second, the REIT is investing in property and that property has the potential to appreciate over time. When your REIT sells the property that has appreciated over time, then you’ll be taxed at a long-term capital gains tax rate (assuming property is held for longer than one year). Finally, you can receive what are called Return of Capital Distributions. These are distributions paid to you that are not taxed, at least initially. A return of capital distribution would lower your cost basis meaning that if you bought a REIT for $50 / share and they distributed $2 to you through return of capital, it would lower your cost basis to $48 however, the $2 distribution would not be taxable at the time of distribution. Tax Cuts and Jobs Act of 2017 This tax cut put in place by President Donald Trump, made most REITS qualify for a 20% deduction in their dividends. This deduction, called the Section 199A Qualified Business Income deduction, allows the investor that has pass through income, which is what a REIT is doing, to deduct 20% of the that income from their tax return. Let’s look at an example below: Sample REIT distribution: Ordinary Dividend (Section 199A): $1.80 / share Long-Term Capital Gain: $1.00 / share Return of Capital Distribution: $0.20 / share Total Distribution: $3.00 / share In this example, if you owned 200 shares of the REIT you would have received a $600 distribution. However, the tax implications of that distribution would have been as follows: $1.44 of the ordinary dividend would have been taxable at the investor’s current income tax bracket (using the 20% deduction). $1.00 would be tax at the client’s long term capital gains tax rate which is 0%, 15% or 20% $0.20 would be not taxable however it would lower the cost basis of the investment meaning it would be taxed when the investment was sold either at short term or long-term capital gains tax rates, depending on how long the investor held the asset. All in, the investor was paying tax, initially on $2.44 of the $3.00 distribution, therefore providing a more tax efficient investment potentially, than other options available to the investor. Conclusion Should a REIT be a good option for you, as an investor? Perhaps, especially as you are near retirement and your goal shifts from asset growth and accumulation to asset growth, principal protection and consistent income to replace your employment income. Your Financial Advisor Team at Whitaker-Myers Wealth Managers is poised to discuss the different REIT options available to our clients, to determine if they would meet your unique goals and objectives.

Even though it’s the demand for negativity in the first place that drives the bulk of the news and information we see all the time, my goal in this quick piece is to give you what is hopefully a nice, quick breather from the typical top headlines and narratives. Inflation is a word that can, and especially now, leave a bad taste in your mouth. Let’s touch on this inflation topic a little bit for the month of April but also point to some other facts: As of end of April ’22, the overall PCE deflator (“consumer prices” – the Fed’s preferred measure for inflation) was up 0.2% from March ’22 However, average gross personal income rose 0.4% month-over-month as well as disposable (or after-tax income) at a rise of 0.3% from March to April, both outpacing the 0.2% inflation number The 0.2% increase from March to April is not necessarily optimal but much improved from the previous month-over-month result, where the increase for the same measure was +0.9% from February to March The 0.2% jump in April brings us to a 6.3% annual increase in the PCE deflator (or inflation) looking from April ’21 to ‘22 Although lagging the 6.3% number, personal income rose 2.6% for the average working American for this same time period Using data manipulation transparently, if you take governmental transfer payments out of the equation (exclude stimulus checks and unemployment benefits as a result of the pandemic from meeting the definition of personal income for this 365 days), then the hypothetical rise in personal income is actually 8.4% and specifically 12.7% for the private sector, both significantly outpacing inflation for the past year From April ’21 to April ’22, spending on goods is up 6.4% and 10.8% for services year-over-year With modern technology, the pandemic originally put a much bigger damper on demand for services in comparison to goods – with these numbers above and even just a simple eye test, it’s easy to be economically optimistic especially regarding service-heavy industries such as Healthcare, Utilities, Energy, etc. It is easy to get caught up in negativity and that’s not to say that we would pretend to look at high inflation, for example, as a positive in and of itself. But, we also and certainly do not want to ignore positive signs, either! High inflation obviously causes more money to come out of your pocket for an average purchase/expense, however, these numbers show that on average, there should be more money in the same pocket in the first place (in terms of income). More specifically, we are truly looking at a much more positive short-term trend. While personal income rose 0.5% from Feb. to March, the inflation number was higher at 0.9%, a loss for the average American. While inflation rose 0.2% from March to April, personal income rose at double the rate at 0.4%, arguably a short-term WIN for the average American more recently. Lastly, even though my point about stimulus payments and unemployment uses data manipulation, we think it’s arguable that the concept behind it was and still is the #1 driver of this inflationary environment. This inflated influx of cash into our money supply as a result of the pandemic and certain policies that came with it should not be a normal, sustainable, and recurring event moving forward that we are currently battling with and CAN fully recover from. Source Material To view, Click Here Article: April Personal Income and Consumption Entity: Data Watch – First Trust Advisors L.P. Authors: Brian S. Wesbury Robert Stein, CFA Strider Elass Andrew Opdyke, CFA

I-Bonds and Treasury Inflation-Protected Securities (TIPS) are investments that offer principal protection. These investments are designated to offer low-risk investment opportunity that also protects purchasing power. In addition, they both have built in features that combat fluctuating inflation rates. Although they share similarities, these investments contain their own differences in how they are bought, taxed, the difference in their holding periods and many other factors. What are I-Bonds? I-Bonds are savings bonds that are issued by the US government. Because all Treasury securities are backed by the “full faith and credit” of the US government, they are considered amongst the safest investments you can make. I-Bonds are non-marketable meaning they must be purchased directly from the government and cannot be bought or sold through secondary security markets. These bonds are exempt from any state and local taxes, meaning they offer an additional benefit if you live in a high tax city or state. Owners of these bonds can wait to pay taxes when they cash in the bond. They may also pay taxes when the bond matures or when they give the bond to another owner. I-Bonds can earn interest for up to 30 years and cannot be cashed in for at least 12 months of owning it. Cashing in an I-Bond before the 5 year holding period results in a forfeiture penalty of three months interest. Anything after 5 years is penalty free. They have a minimum contribution of $25 and a maximum of $10,000 per year. The I-Bond can be 100% tax free if you use the bond to pay for college tuition or fees. These bonds can be purchased electronically at any time online from Treasury Direct or available on paper using your tax refund. What are Treasury Inflation-Protected Securities (TIPS)? Treasury Inflation-Protected Securities (TIPS) also provide protection against inflation. The principal of a TIPS will increase with inflation and decrease with deflation, based on the Consumer Price Index. TIPS are marketable meaning they can be bought and sold in secondary securities markets. When a TIPS reaches maturity, it pays the greater between the adjusted principal or original principal. TIPS pay interest twice a year at a fixed rate. This rate is applied to the adjusted principal. Unlike I-bonds, TIPS have no minimum holding periods, trades like a stock and pays taxes on interest yearly. The life span of TIPS ranges from 5, 10, and 30 years. TIPS can be purchased at auction through TreasuryDirect, or through banks, brokers, and dealers. During times of deflation, TIPS can go down in value, but they will always be worth at least the original principal amount at redemption. I-bonds will never dip below the bond’s value in the prior month. Any upward inflation adjustments received with I-bonds can not be eroded due to a later period of deflation. Looking into purchase limits of TIPS, auction noncompetitive bidding has a limit up to $5 million. While competitive bidding has a limit up to 35% of the offering amount. I-bonds have a $10,000 limit for electronic bonds and a paper bond limit of $5,000. These limits apply to the recipient of the bond. In terms of taxes for TIPS, semiannual interest payments and inflation adjustments that increase the principal in TIPS are subject to federal tax in the year that they occur. However, like previously mentioned are exempt from state and local income taxes. In regards to I-bonds taxation, tax reporting of interest can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first. Similarly, to TIPS, I-bonds are subject to federal income tax, but is exempt from state and local income taxes.