As we near the conclusion of this tax season, I have been reflecting on how confusing the tax process can be.  For those who don’t live in the financial world on a daily basis, taxes can be an even more confusing topic. Some financial advisors partner with CPAs to help interpret and implement various tax codes, working closely with their clients during tax season.   The Importance of a CPA According to the National Association of the State Board of Accountancy, as of August 29, 2024, there are approximately 671,855  certified public accountants (CPAs) in the United States.  For the fiscal year 2023, Forbes reports  that the IRS processed more than 162 Federal individual tax returns and supplemental documents.  Easy math tells us that, from the individual filing perspective, each CPA is responsible for approximately 241 filers.  This does not include the various other responsibilities CPAs attend to, such as taxes for businesses, partnerships, and trusts.   A key question people often ask is: “When is the best time to find a CPA?”  When asked, Kage Rush of Whitaker-Myers Tax Advisors shared that the best time to look for a CPA is before tax season begins. By already being scheduled and on their calendar, you can avoid the late rush of trying to get in at the last minute and the potential for needing to file for an extension.   Now that you are on your CPA’s schedule, what information and paperwork do you need to gather before your meeting?   Tax forms to bring In addition to bringing a copy of last year's tax return, having the correct paperwork that shows your income and employment status is necessary. Additionally, if you invest, having the proper forms is needed to file your taxes correctly.   Below are some simplified overviews for each tax form you may be required to bring, which inform the IRS of your income and how your employment status should be reported.    Work Forms W-2 This form informs the IRS that a company employs you and is only responsible for half of the Social Security and Medicare tax. Which, if you did not know, for each individual, the Social Security, and Medicare tax  is 15.3%. The employer pays half of this amount (6.2% for Social Security and 1.45% for Medicare). The W-2 shows the IRS your Gross income, how much you paid towards State, Local, and Federal taxes, including Medicare and Social Security, and if you contributed to an employer's retirement plan.   1099 – NEC The 1099 NEC indicates to the IRS that you are filing as an Independent Contractor.  As a contractor, you are now responsible for paying the entire 15.3% of Social Security and Medicare taxes. This allows the IRS to determine the starting point for your base taxes.  Then, as an independent contractor, you can include your business deductions on your 1099 to lower your income and reduce your tax burden.  An important side note for 1099 contractors: It is recommended that you file quarterly estimates to avoid significant penalties from the IRS.     Investment Forms After your work tax forms, if you invest in IRAs or Brokerage accounts, you will also need tax forms from these different accounts.    5498 If you saved money in a Roth IRA or a pretax IRA, your custodian (the company that holds your IRA, such as Fidelity or Charles Schwab) will send you this tax form in You might ask, “If I have to have all my tax information completed by April 15th, why do custodians wait until May to send me this form?” The simple answer to this question is that individuals have till April 15 to make contributions for the prior tax year.  One reason an individual might use this contribution strategy is to determine their tax liability and then make a contribution to reduce that tax burden, or ensure they fall within the income range to make contributions for their Roth IRA.    However, if you want to file your taxes before April 15, you can request the amount you contributed for the prior year from your financial advisor and then report it on your tax return. Once your Form 5498 comes in May, you should keep it with your other records.    1099 If you are investing money in a non-retirement brokerage account, you will receive a 1099-Composite tax form.  This informs the IRS of realized gains within your Brokerage account.  It will categorize the gains as either Short-Term or Long-Term gains .  Short-term gains are taxed at ordinary income rates. Short-term gains occurs when an investment is sold within one year of purchase for a gain. Individuals that day trade with single stocks  will see this type of gain. Long-term gains occur when a person buys a position and holds it for longer than 365 days.  At this point, you benefit from potentially lower Capital Gains  tax rates.    1099–R This is a significant tax document for clients who are now retired and are collecting income from a Pension, an Annuity, Retirement/profit-sharing plans, IRAs, and Insurance Contracts. This informs the IRS of the total amount of money you received from these various income sources and the federal taxes that were withheld.    1099 – SSA This tax form is one document that makes little sense to me since a person that is receiving Social Security Benefits is only collecting a benefit for which they paid FICA taxes their entire working lives! And now that they are collecting a benefit, a portion of the benefit may be taxable. Regardless, this form provides the IRS with the total amount of benefits you received in the prior tax year. The helping hand As shared, taxes can be confusing. Knowing which tax forms you need and the reasons for each one is beneficial to know ahead of time. However, if you have questions, always feel free to reach out to your financial advisor . If you’d like help filing your 2025 taxes or tax preparation assistance for 2025, schedule a meeting with Whitaker-Myers Tax Advisors  to guide you through the process.

Introduction One topic that comes up very often during initial meetings with clients is whether or not they have a will or trust set up. We believe estate planning is essential to creating a holistic financial plan. We want to ensure that our clients know where their assets will be going after they pass and their options for how the assets will be distributed. In this article, we will define “trust” and paint an overview of the different types of trusts and how they compare to a will and one another.    What is a trust? Before explaining what a trust is, a few terms are important to know when describing a trust. The first is the grantor or settlor  – this is the person who creates the trust and sets its specifications. Next, the trustee , which can either be an individual or an institution, oversees the grantor’s assets and makes sure they are handled and or distributed according to the trust.   A trust is a legal contract in which a third party holds and manages the grantor's assets on behalf of their beneficiaries . Depending on the type, trusts can be set up during the grantor’s lifetime or after their death and can be customized to help meet the grantor's goals.   How a Trust Differs from a Will Although both a will and a trust are used to distribute assets, there are several significant differences between the two.    The first and probably most significant difference is that most wills go through the probate process, in which a court validates the will. Trusts generally avoid the probate process, making them quicker to administer and more private. It also allows trusts to avoid any legal fees that would come up from probate.    The second difference is when each one goes into effect. A will only takes effect after the person passes away. Depending on which type of trust is created, it can either go into effect immediately after creation or at a specified time. The third difference is the management of assets. A will can only control how assets are distributed, which is then executed by an executor after the person passes. However, a trust allows for ongoing management of assets, both while the grantor is alive and after their passing. The trustee can manage the estate during the grantor’s lifetime or distribute assets according to specific instructions after the grantor passes away. The last main difference between a will and a trust is that a trust can specify what happens should the grantor become incapacitated before death. A will does not address this possibility, which means that a couple’s affair would have to be managed by a court-appointed guardian if they were incapacitated.   Types of Trust There are several different types of trusts, each with a specific purpose. The following are the most common types and what distinguishes them.   Revocable Living Trust This is one of the most flexible types of trusts. It allows the grantor to alter or revoke the trust at any point during their lifetime. The grantor maintains control of the assets while they are living, and upon their death, the trust distributes assets accordingly while avoiding probate. One drawback of this type is that, since it is revocable, the assets are still considered a part of the grantor’s estate and may be subject to estate taxes.   Irrevocable Trust As the name would suggest, in an irrevocable trust, once the assets are transferred to the trust, the grantor no longer owns them, and the trust is managed according to its terms. This provides asset protection from creditors and may reduce estate taxes since the assets would not be considered a part of the grantor’s estate. Any changes to the trust would have to be approved by the trust's beneficiaries.   Testamentary Trust This type of trust is created through a will and does not come into effect until the person’s death, much like an irrevocable trust. The will outlines the terms of the trust. The downside of this type is that since it is created using a will, the assets must go through probate.   Special Needs Trust These are designed to provide for the financial needs of a person with disabilities while maintaining their government benefits, such as Social Security and Medicaid. Charitable Trust Charitable trusts are established to benefit a specific charity or the public in general. There are two main types of charitable trusts: Charitable Remainder Trusts (CRT) and Charitable Lead Trusts (CLT). In a CRT, the grantor places assets into the trusts, which then pays the beneficiaries for a set period of time, which can be either their lifetime or a set number of years. The remaining assets are then given to the charity. A CLT is the opposite, in which the trust pays income to a charity for a set amount of time, and after that, the remainder is given to the beneficiaries. Spendthrift Trust This type of trust is designed to help the beneficiaries from squandering their inheritance. It is capable of protecting assets from creditors and ensures the beneficiaries receive the money gradually.    Conclusion Whether you choose a will or a trust depends on your specific situation, goals, and needs. If your financial situation is straightforward and you do not mind your assets going through probate, then a will may suffice. If you prefer privacy, avoiding probate, and want to protect your assets from creditors, you may want to consider setting up a trust.   Whitaker-Myers Wealth Managers  has partnered with EncorEstate Planning, a national estate planner, to help clients get their estate planning  in order. If you have any questions about what would be more beneficial to you, reach out to a financial advisor  on our team.

STRS announced an early retirement incentive  for members with the defined benefit (also known as the BD Plan, which is the pension plan) of any age and with 33 years of service, or those aged 60 and with at least 5 years of service between June 1, 2025, and July 1, 2027.    There are also options to take a reduced benefit, which I’m generally not a fan of, but can be evaluated if you have an estimate for a reduced age or amount to compare to an unreduced one.   Below is a table indicating the eligibility requirements: So, the question is, should I take STRS up on this offer? What you’d like to do may differ from what you can afford financially.  To determine what you should do depends on the rest of your financial situation.   If you’d like to see which option is best for you, here’s what you’ll want to do. Run your STRS pension (retirement benefit) estimate for: 1)     the earliest age at which you’re eligible (when you have 33.0 years of service) or the end of the school year 2)     when you hit 34.0 years of service (the normal years of service requirement) or the end of the school year after you hit 3)     If you’d like to consider a third option for comparison, feel free to run that as well.   (It’s very easy to run different estimates)   STRS has instructions on how to run an estimate here .   If your district has negotiated salary increases for the next several years, make sure to include those salary increases when running your retirement benefit estimate.  If you’re not aware of what those are, you can contact your district’s treasurer’s office.   Next Steps for Retirement Planning If you’d like help with running this estimate or have exceptional circumstances (eligible to buy back time), we recommend scheduling a meeting with an STRS counselor to discuss this further.   Once you have your estimates, you should reach out to your financial advisor at Whitaker-Myers Wealth Managers to discuss the best option for you.

Lifestyle creep has a way of quietly sucking away your wealth unless you understand how to manage it. The key to long-term prosperity is learning how to manage surplus money without relinquishing control over your finances.   Recognizing and Managing Lifestyle Creep You've found your first big-kid job or landed that great promotion—finally, financial independence! But before you know it, you're renovating your apartment, buying all-new clothes, or dining out every evening. Ring a bell? That's lifestyle creep  raising its ugly head. While it's okay to treat yourself, allowing your spending to increase simply because of your income can prevent you from ever becoming wealthy. In this article, we will discuss what lifestyle creep is, how to identify it, and how to avoid it while still living a fulfilling life.   What is Lifestyle Creep? Lifestyle creep occurs when your spending gradually increases in line with your income. What that means is that rather than investing or saving, you start spending more on current items or additional items, unintentionally. A bit of indulgence here, a pricey upgrade there, and before you know it, your bank balance isn't growing as it should.   Lifestyle creep occurs when your spending increases as your income rises, but your savings don’t.   A common sign is upgrading to a nicer apartment or car, or buying more clothes or accessories, simply because you received a raise, not because you actually need them. If you notice that you're spending more each month but not saving much, it could be a problem. You might also find yourself justifying impulse purchases by thinking, "I work hard, so I deserve this."   Another warning sign is using credit cards to buy things you don’t need, with the intention of paying them off later. Ultimately, if you’re still struggling financially despite earning more money, it’s a good idea to take a closer look at your spending habits.   How to Keep Lifestyle Creep at Bay Below are a few suggestions on how to spend less, save more, and stay on track.   Create Clear Financial Goals Before you continue to spend, ask yourself this: Where do I want my money to be directed? Whether it's towards a house, paying off debt , or creating an emergency fund , having a goal in mind will make it easier to resist unnecessary spending.   Automate Savings and Investments Make it simple to save. Automatically transfer money to savings or increase 401(k) or Roth IRA contributions when you get a raise. You won't even notice it.   Create a budget At Whitaker-Myers Wealth Managers , we suggest creating a Zero-Based Budget plan . This plan allows you to designate your monthly income, telling it where and how it will be utilized, knowing you are the one in control of your money.   Avoid Big Ticket Purchases Impulse purchases are the cause of lifestyle creep. Use the 24-hour rule—wait 24 hours before making a discretionary purchase, especially one of a significant dollar value. You will probably find that you don't need it.   Track Your Spending You can't fix what you don't measure. Utilize budgeting programs like Mint, YNAB, or Personal Capital to track where your money is being spent. Or our personal favorite from Ramsey Solutions, the EveryDollar Budget App .   Stop Comparing Your Life to Everybody Else's Social media causes your life to become too readily compared to everyone else's highlight reel. You don't need to go on the same luxury vacation simply because your best friend is going away. Stick to your budget instead.   Celebrate Victories Without Breaking the Bank It's okay to treat yourself—just be mindful of it. Rather than blowing your paycheck on new shoes or a designer handbag each time you receive a raise, consider buying something more worthwhile, such as a weekend trip or a delicious meal. Preventing Lifestyle Creep: Achieve Financial Success with Whitaker-Myers Wealth Managers Lifestyle creep is sneaky, but you don’t have to fall into the trap. By setting financial goals, automating savings, and being mindful of where your money goes, you can enjoy your income and build wealth for the future.   At Whitaker-Myers Wealth Managers , we specialize in helping young professionals create a financial plan that supports their long-term goals while still allowing them to enjoy life today. Whether you're looking to invest wisely, eliminate debt, or plan for the future, we’re here to guide you every step of the way.   Don't wait until lifestyle creep takes control—take action today! Meet with a financial advisor and start making your money work for you.

In a global economy where international trade policies, such as tariffs, can heavily affect an investor’s portfolio, understanding how different types of companies will be affected by these shifts is valuable for investors to understand their portfolios. This article looks at Dave Ramsey’s four investment categories —Growth, Growth & Income, Aggressive Growth, and International—and examines how potential tariffs will likely affect each category.   Growth The Growth category consists of already large, well-established companies that expect to continue to grow. Examples include Apple, Amazon, Microsoft, and Ralph Lauren. A lot of Growth companies would also be considered blue-chip companies.   Of all four categories, the Growth category will most likely feel the weight of the potential tariffs the most. Due to the size of these companies, most have heavy international reach in one way or another. Whether companies get materials from foreign countries, build products in a foreign country, or sell the products in foreign countries, they will feel the impact of tariffs that may be put in place. At some point in their business process, these companies will be forced to pay higher prices for their products, which will inevitably be passed to consumers. Higher prices typically decrease sales of a product. Additionally, when U.S. products are more expensive in a foreign country, consumers of that country will be driven to the cheaper alternative, which will most likely be the products made in that country.   Growth & Income The Growth & Income category consists of large, well-established companies, but don’t expect to see rapid growth like the Growth category does. Because of this, these companies pay dividends to their shareholders as an incentive to invest with them. Some examples of this category are McDonald’s, Walmart, Exxon Mobile, General Electric, and more.   Much like the growth category, the size of these companies most likely expands into international business. However, the Growth & Income category is a highly diverse group of types of companies, and the degree of effect of the tariffs depends on the kind of company. A company like Walmart, which sells a large portion of imported products, will feel a significant hit due to the increase in product prices to sell due to the tariffs. On the other hand, a company like McDonald’s, whose international reach is simply having locations in foreign countries, has almost all of their products are sourced locally for the restaurant, meaning they do not import many, if any, products. Because of this, they will not feel much of an impact from the tariffs at all.   From the investor side, these companies are typically built to be good investments as they will try to continue providing dividends to their shareholders. There may be slight dips in stock price due to the tariffs, but the dividends will ease that dip. Additionally, you will not have officially lost anything until these stocks are sold, which means your account will continue to grow (although the dips may make it not seem that way) as you are paid the dividends from these companies.   Aggressive Growth The Aggressive Growth category includes smaller companies looking to grow in size. Some well-known examples of this are Chipotle, Roku, Hasbro, GAP, and more. Although these may seem like big, well-established companies, they are still relatively small compared to some other companies in terms of their market share.   Companies in the aggressive growth category are expected to do well if tariffs are implemented. Tariffs will make the products foreign companies send to the U.S. more expensive. Consumers are almost always driven to the less expensive product. Since U.S. company products will remain at the same price while foreign products will become more expensive, more consumers will be driven to the domestic products. This will increase sales and revenue for the U.S. companies.   It is also important to consider the smaller size of these companies. Most smaller companies are not built to have the same reach as the bigger companies. Although it is not a uniform rule across the board, most smaller companies do not have the international reach that big companies have, if they have any at all. Without the international pull, these companies will feel much less of the tariffs negatively, if they feel it at all. When factoring this all together, the companies in the aggressive growth category will feel little to no negative impact from the impact while simultaneously getting a boost in revenue as consumers are driven to their now cheaper products.     International The International category includes companies based outside of the U.S. There are around 54,000 companies located outside of the United States. In comparison, only around 10,000 companies are located inside the U.S. This means there is a lot more investment opportunity outside the U.S. than within. Many of these companies are unfamiliar to U.S. citizens, but some well-known examples include Sony, Nestlé, Samsung, and many more.   International companies are expected to do well in the wake of the potential tariffs being implemented. Tariffs will make U.S.-exported products more expensive in other countries. Since consumers are almost always driven to the less expensive product, more expensive U.S. products will drive consumers to the products produced in that country. International companies will likely see an increase similar to the aggressive growth category. They will likely see an increase in sales and revenue from these tariffs, and will likely perform well in these times.   It also helps that the U.S. dollar will most likely become weaker globally because of this. As the U.S. dollar weakens, foreign currencies will become relatively stronger for the most part. A stronger currency will be very beneficial for the foreign companies, as it will make their currency able to buy more.   This is why Dave’s four categories are so important to invest in over the long run. They are designed to minimize risk in uncertain times, mitigating dips in the market to feel less of an impact in your portfolio than if you were only investing in one category.   The Expertise of a Financial Advisor Knowing and understanding how current economic situations, such as possible tariffs , can affect investments can be confusing, overwhelming, or even scary at times . But that is why having the help and expertise of a financial advisor  is so beneficial.   If you would like to meet with one of our financial advisors to discuss this more in-depth, review your investments, or create a financial plan, reach out to a member of our wealth management team   today!

National Debt With the new administration in place and past their first 100 days, we continue to see a moderate amount of clarity around what a second Trump presidency means for the country. A large focus has been on the deficit and reducing waste in the government, and rightfully so. In 2024, we unfortunately had a deficit of 1.8 trillion dollars in the US.   That is a lot of debt. Which means, Dave Ramsey and his team at Ramsey Solutions are not happy. To put that in perspective, there are 1,000 billion in a Trillion, and 1,000 million in a billion. The national debt currently sits at 36 trillion.   So, what’s the problem? The problem is in the weeds. In 2024, the US generated $4.9 trillion in revenue. And the US spent, among other things, the following: Social Security $1.5T, Medicare $865B, Medicaid $618B, defense $850B, and Interest on debt $881 B. The total is $4.71 trillion in spending annually.   These items seem to be untouchable, and rightfully so. All but defense fall under entitlements, which are mandatory pieces of our spending. That is not good; we have $200 billion left for everything else, like transportation, natural resources, education, energy, agriculture, and space.   The point is that we cannot cut enough discretionary spending to get to a balanced budget. We must grow our tax income through economic growth, increase tax rates broadly in hopes that the extra tax revenue doesn’t come at the cost of economic development, or reduce defense spending.   Efforts in Trying to Fix the Debt Problem There has been a recent push to remove excess government spending through DOGE efforts. They have found many areas of government that have waste and abuse, and have worked to correct these abuses. The goal is to balance the budget and eventually get to a point where we run a surplus, which hasn’t been done since 1998 under Clinton.   I believe DOGE's efforts have been somewhat effective in finding and eliminating waste. They are a great start; however, much like cleaning up personal finances, eliminating debt can be a long and painful process.   The national debt is now roughly 7.3 times our annual tax revenue. Let's say your annual take-home pay is $75k. The equivalent personal debt would be $547,500. The outlook isn’t good. But if you are disciplined, you can get things paid off. It would require additional jobs, side hustles, and lowering your spending, but it is possible (sounds a little like Gazelle Intensity for all the Dave Ramsey fans out there!).   This is the kind of approach we need to embrace as a nation if we are serious about reducing the national debt and securing long-term fiscal stability. While we haven’t yet seen comprehensive, solution-focused conversations that could realistically lead to a balanced budget, there is reason to believe such discussions are within reach. Entitlement programs and defense spending remain complex and sensitive issues, but with thoughtful leadership and bipartisan cooperation, progress is possible. Americans hold differing views on the role we play in global affairs and border protection, yet there is common ground to be found. The most promising path forward lies in strong, sustained economic growth that boosts tax revenues and reduces our reliance on borrowing. With innovation, responsible policymaking, and shared commitment to prosperity, we can meet this challenge head-on. The math may be tough, but so are we – and with the right momentum, a balanced budget is an achievable goal.   The Support of a Financial Advisor With times of uncertainty, which often create uneasy feelings about finances, having the guided help of a financial advisor can create clarity and peace during choppy markets. If you do not have a financial advisor and would like to talk to one, reach out to a member of our team and schedule an appointment today.

Introduction If you’ve read our blog articles, visited our website, or watched our YouTube channel, you can probably surmise that we are all about the Ramsey Solutions 7 Baby Steps. We are committed to the Baby Steps because they work - I speak from personal experience, having gone through my own Baby Step Journey. One of the steps that I discuss frequently with clients is Baby Step 4: saving 15% of your income for retirement. Sounds simple, but there are better ways to achieve this than others. This article aims to provide a few different Baby Step 4 scenarios and the optimal way to structure retirement savings.   Recap of the Ramsey Solutions Baby Steps Step 1: Save $1,000 in a beginner emergency fund Step 2: Pay off all consumer debt using the debt snowball (smallest $ to largest $) (not including a mortgage) Step 3: Save 3-6 months of expenses in a fully funded emergency fund. Step 4: Save 15% of your income for retirement. Step 5: Save for your children’s college. Step 6: Pay your home off early. Step 7: Build wealth and give.   Credit: https://tinyurl.com/2f65asxd   Some FAQs When It Comes to Baby Step 4 Should I be saving 15% of my NET income or GROSS income? When we discuss saving 15% of your income, this refers to 15% of your gross income, not your take-home pay. One way to determine this is to add up your W-2 wages or refer to line 9 of the income section on your Form 1040 tax return.   Does my 401(k) or other employer-sponsored plan match count toward my 15% contribution? No. Your savings are your savings. If you have access to an employer match, that's essentially free money to add to your 15% savings.   Should I be saving more than 15%? This will depend on your goals, means, and discipline. Sometimes, people try to save more than 15% for retirement, which can harm their overall plan. You should follow the Baby Steps in order, and if there is money left to save after saving 15% for retirement, consider saving for your children’s college. Alternatively, if you don’t have children but own a home, make an extra payment to your mortgage. If these steps are all satisfied and you still have money to save, then saving in a brokerage account or maxing out your 401(k) or Roth IRA might make sense for your specific situation.   Should I complete Baby Steps 3 and 4 simultaneously? No. Baby Step 3 (fully funded emergency fund) is crucial to staying debt-free. Trying to tackle steps 3 and 4 more often than not ends in “something coming up,” and it sends you straight back to Baby Step 1.   Why shouldn’t I just save 15% of my income into my employer's 401(k)? Employer plans are great, but they limit you to the investments within the plan. Having an investment account outside of your plan, like a Roth IRA, opens your investment options to virtually any marketable security.   What is the order of savings for Baby Step 4? A simple rule of thumb for the order of retirement savings: Match beats Roth, Roth beats Pre-Tax.   Always start by contributing up to the match in an employer-sponsored plan. This is FREE MONEY!   Next, consider a Roth IRA, which is an account outside of your employer-sponsored plan. The funds added come from your checking or savings and have already had tax paid on those funds. The funds can be invested and grow tax-free, then withdrawn tax-free after age 59 ½. For 2025, you can save up to $7,000 ($8,000 for those aged 50 and above) in a Roth IRA per person. If you are married and file jointly, your spouse can also save up to $7,000 ($8,000 for those aged 50 and above) in their own Roth IRA.   If you have satisfied the match and maxed out your Roth IRAs, then you would return to your employer plan and increase your contributions to meet 15% of your gross household income.   I don’t have an employer plan, what now? Start with a Roth IRA. If you max out the Roth IRA option, consider a Taxable Brokerage Account to save the remaining funds. Taxable Brokerage accounts do not offer the tax-free growth that a Roth IRA does, and you would owe capital gains tax when you sell an investment, as well as potentially some interest and income tax each year, depending on the investments selected.   I make too much to contribute to a Roth IRA; what are my options now? If you do not have any funds in a Traditional IRA, you can use the backdoor Roth contribution method. Essentially, you make a non-deductible contribution to a Traditional IRA and then convert it to a Roth IRA. This allows high-income earners to contribute to a Roth IRA even if they are not eligible to contribute directly to one. Alternatively, you could also save in a Taxable Brokerage Account.   Hypothetical Examples Now, let’s examine various Baby Step 4 scenarios and break down a savings plan.   Example 1: Single Professional with/ Employer Plan making $60,000/year In this hypothetical, let’s say this single professional makes $60,000 gross income per year and has access to a 401(k) with a 100% match up to 5% of salary through their employer.   • $60,000 x 0.15 = $9,000 Savings Goal (15%) • 5% goes to the 401(k) to get the full match or $3,000 • $9,000-$3,000 = $6,000 left to satisfy 15% • $6,000 goes into a Roth IRA   Example 2: Single Professional with/ No Employer Plan making $60,000/year In this hypothetical, let’s say this single professional makes $60,000 gross income but does not have an employer plan available to them. •   • $60,000 x 0.15 = $9,000 Savings Goal (15%) • $7,000 goes into a Roth IRA • $9,000-$7,000 = $2,000 left to satisfy 15% • $2,000 goes into a Taxable Brokerage   Example 3: Single Professional with/ Employer Plan making $120,000/year In this hypothetical, let’s say this single professional makes $120,000 gross income per year and has access to a 401(k) with a 100% match up to 5% of salary through their employer.   • $120,000 x 0.15 = $18,000 Savings Goal (15%) • 5% goes to the 401(k) to get the full match or $6,000 • $18,000-$6,000 = $12,000 left to satisfy 15% • $7,000 goes into a Roth IRA • $12,000-$7,000 = $5,000 left to satisfy 15% • $5,000/$120,000 = 4.2% back to the 401(k) (increase 401(k) total savings to 9%)   Example 4: Married Couple filing jointly with/ Employer Plan making $120,000/year In this hypothetical scenario, let’s say a married couple has a single income of $120,000 gross per year and has access to a 401(k) plan with a 100% employer match up to 5% of their salary.   • $120,000 x 0.15 = $18,000 Savings Goal (15%) • 5% goes to the 401(k) to get the full match or $6,000 • $18,000-$6,000 = $12,000 left to satisfy 15% • $7,000 goes into a Roth IRA • $5,000 remaining goes into a Roth IRA for the spouse   Example 5: Married Couple filing separately with/ Employer Plan making $120,000/year In this hypothetical scenario, let’s say this married couple has a total annual income of $120,000 ($60,000 each), gross, and both have access to a 401(k) with a 100% match up to 5% of their salary through their employer. However, they file separately.   • $120,000 x 0.15 = $18,000 Savings Goal (15%) • 5% goes to each of their 401(k) accounts to get the full match or $6,000 total between the two • $18,000-$6,000 = $12,000 left to satisfy 15% • Because they file separately, they make too much to contribute to Roth IRAs • They would increase their 401(k) 10% to make each contribute 15%, or consider a Taxable Brokerage as a bridge account   Example 6: Married Couple filing jointly with/ No Employer Plan making $60,000/year In this hypothetical, let’s say this married couple files jointly, earns a gross income of $120,000, but does not have an employer-sponsored plan available to them.   • $120,000 x 0.15 = $18,000 Savings Goal (15%) • $7,000 goes into each Roth IRA, totaling $14,000 • $18,000-$14,000 = $4,000 left to satisfy 15% • $4,000 goes into a Taxable Brokerage   Conclusion As you have probably gathered from the above examples, many other scenarios can be created by reworking the math for each scenario. Keeping in mind that “Match beats Roth, Roth beats Pre-Tax” is a good starting point. Still, there are many nuances to finance, and having a professional in your corner can be an asset in avoiding common blunders when it comes to planning and investing. It is always recommended to consult with a financial advisor. If you do not have a financial advisor, please reach out to the team of financial advisors with Whitaker-Myers Wealth Managers. They have the heart of a teacher and are ready to listen to your questions and help get you on a path to fulfill your financial goals. This article is not meant to provide advice.

Managing Money Tammi and I have been avid fans of Dave Ramsey and Ramsey Solutions  for more than 30 years. We were married at age 20 and found ourselves in a challenging financial situation. Fortunately, we discovered Dave Ramsey, in fact, on a clearance rack cassette tape in an Indianapolis bookstore! We listened to his advice and were captivated; it changed our lives forever. This journey transformed our finances, our marriage, and redirected my professional career.   Today, I work as a Financial Advisor  at Whitaker-Myers Wealth Managers  and hold the additional designation of Certified Ramsey Solutions Master Financial Coach. Over the past 15+ years, I have had the privilege of helping many hundreds of clients with their money management and financial planning.   Many earn good incomes, yet we struggle to manage our God-given resources effectively. Who needs an effective budget and solid money management skills? We all do. A significant part of an effective budget is the Sinking Fund, which we use to pay for future needs and wants.    What is a Sinking Fund? Simply put, a sinking fund  is a strategic way to save money for future needs and wants.   Congratulations! You have completed baby steps 1 to 3. You have created a strong monthly budget, paid off your debt, and saved for your emergency fund. But how do you pay for future needs or wants? Some examples include car repairs and replacement, home repairs, clothing, gift-giving (for birthdays or holidays), medical co-pays, and more. We coach clients to build future needs and wants into their strong monthly budget. With summer just around the corner, and vacations on many people’s minds, let’s use vacation planning as an example of a future want.   How does our family go on a weekly vacation each year?  To help you get started on your vacation sinking fund experience, I share how my family has developed our plan for a vacation sinking fund.   First, our family creates a vacation plan together and executes it together.   I encourage you to start with a “staycation” the first few years as you get your budget in line, pay off debt, and establish your emergency fund. This “staycation” means taking advantage of free local attractions, such as state parks, while you save for your initial “going away” vacation budget. Have a conversation with your spouse or family members and decide on an agreed-upon amount to save monthly to achieve your desired vacation budgeting goal. For reference, our family chose to begin with two years of staycations while we built our initial vacation budget.   Once you have established your vacation fund, create a thoughtful plan together. Start by setting aside your travel expenses, such as gas and meals, for the trip to and from your destination. Next, outline a daily spending plan.   My family was accustomed to using the envelope system and applied it to our vacation. We placed a certain amount per day into an envelope, which we used to track and control our spending on activities, meals, and souvenirs.    An essential part of our plan is to go grocery shopping as soon as possible upon arrival at our destination to help reduce our weekly food costs. However, this is a suggestion, not a rule that you have to follow, as long as you build all food costs into your overall vacation sinking fund number.   We know everyone will be hungry, so we try to plan accordingly. Typically, we only purchase food for snacks and meals that will cover the first few days of our stay, which helps us avoid overspending on food. Remember, you can always return to the store and buy more as needed, but you can’t return uneaten food.   We also plan our daily activities, expenditures, and souvenir purchases in advance, gathering everyone’s input to make the vacation as meaningful as possible. This approach is a great way to have fun while staying on a budget.   Finally, we have learned from our vacation planning experiences and make yearly improvements. I highly encourage that this step not be skipped!   I’d like for you to know that it is possible to experience guilt-free spending, freedom, and peace while vacationing. Most importantly, you can have fun making memories with your family and friends!   Would You Like to Learn More Effective Money Management Ideas? As I mentioned earlier, one of my primary goals as a Financial Advisor is to help clients manage their finances more effectively. If you’d like to explore more, please use my calendar link  to schedule a complimentary session.

Over the last four years, you may have heard the many warnings of an impending recession. Despite media outcry, a recession has yet to hit, with a brief exception at the height of the pandemic. With the recent market volatility, primarily induced by current trade policy, let’s answer some of the questions we commonly hear regarding the word “recession.”     What is a recession? In short, a recession is defined as a period of economic decline. This means that rather than growing, the economy is shrinking. When an economy is shrinking, it means that consumers and businesses are spending less money. A more fiscally conservative approach sweeps across the nation as uncertainty leads people to pull back and focus on the bare essentials. The ripple effect can be wide as companies lay off employees and demand decreases for goods, bringing prices down. This can also mean investor sentiment declines and money floods out of equities and into less volatile investments like bonds .   What are some of the indicators of a recession? GDP: Gross Domestic Product is the total value of goods and services produced in a country during a year. This number can fluctuate, and a decrease in GDP is a primary indicator of a recession. A common measure of whether a country has entered a recession is two consecutive quarters of declining GDP. While it is a key indicator, it is by no means the only factor to consider.   It’s important to note that we likely won’t know we are in the midst of a recession while it's happening. GDP helps economists look back at what has taken place in the economy. When we look back, we’ll realize what we lived through, which brings to mind a poignant moment from The Office, when Andy Bernard says , “I wish there were a way to know you were in the good old days before you actually left them.” While a recession isn’t exactly “the good old days”, it’s the retrospective lens that allows us to see a moment in a way we simply can’t in the present. In other words, the lagging indicators are the ones that reveal the reality of a recession.   What are lagging indicators? While leading indicators  predict economic events and conditions, lagging indicators  are economic data points that pivot after the conditions of the economy have already changed, much like a tornado warning confirms that a storm is already underway. Lagging indicators would include things like interest rates, earnings from corporations, and the unemployment rate. The presence of these things alone does not mean a recession has taken place, but they do help paint the broader picture.   What will a recession mean for my investments? As mentioned above, a recession can mean that investors pull their money out of the stock market and put it in places subject to less volatility. In a recession, many investors are scared to stay invested and/or put more money into the market. In reality, as the value of investments drops, it presents an opportunity to “buy low.” That being said, everyone’s situation is different, so consult with a financial professional to see what is right for you when it comes to investing in a recession.   Despite what the pundits may be saying, we don’t know if a recession is coming, and there is really no good way to know for sure either, until we look back in time. Historically speaking, the market and the economy have always recovered from recessionary territory.   If you have questions about investing, reach out to your financial advisor to discuss these questions. Our team of advisors is always willing to help and offer guidance to reach your financial goals.

At first glance, these two ideas—getting rich and building wealth—might seem synonymous. After all, don’t both imply having a lot of money? However, as any seasoned financial advisor will tell you, there is a critical distinction not only in the definitions of these terms but, more importantly, in the mindset they represent. Understanding Wealth vs. Riches Let’s begin by defining wealth. According to Britannica , wealth encompasses the total value of an individual’s property, possessions, and financial holdings. A more precise financial definition, however, subtracts liabilities—what you owe—from your assets to determine your net worth. That’s the truest measure of wealth. Contrast that with the more casual definition of being “rich,” which often focuses simply on high income or large sums of liquid cash. Culturally, the image of a rich person is often associated with lavish lifestyles, big spending, and high-profile purchases. But high income does not automatically translate to lasting wealth—especially if it’s coupled with poor financial habits. Tangible Assets vs. Liquid Wealth Wealth is typically characterized by tangible and appreciating assets: real estate, business interests, precious metals, and investment portfolios. Those who focus on building wealth generally prioritize asset accumulation, diversification, and long-term value. Conversely, a “get-rich” mindset often prioritizes liquidity and immediacy—cash in the bank, flashy purchases, and sudden windfalls. The issue? This approach leaves little margin for error and can quickly evaporate under financial pressure. As Proverbs 13:11 wisely states, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.”  The pursuit of lasting financial security requires discipline, not shortcuts. A Strategy for Building Wealth A foundational strategy for long-term wealth is to invest early and consistently. For instance, purchasing a home early in adulthood often becomes the first major asset in a person’s portfolio. From there, modest but consistent surplus income—perhaps a few thousand dollars here and there—can be used to invest in: Diversified stock or mutual fund portfolios Real estate Small business ventures By your 30s or 40s, many individuals can begin branching out—acquiring rental properties, launching a side business, or increasing their exposure to alternative asset classes. Simultaneously, retirement savings through 401(k)s, IRAs, and brokerage accounts should be steadily built and maintained. A diversified portfolio not only enhances your potential for growth but also provides protection during economic downturns. For example, if a market correction occurs six months before retirement and you're overexposed to stocks without sufficient cash reserves, you could be forced to sell at a loss. However, if your portfolio includes real estate income, commodities, or other alternative income streams, you’ve built a buffer against such volatility. The Cost of a “Get-Rich” Mindset A fixation on quick wealth often leads to financial instability. Studies show that 70% of lottery winners are broke within three to five years. Similarly, professional athletes and entertainers who experience overnight success often find themselves struggling financially within a few years of retiring. Why? Because sudden riches without financial literacy, discipline, and long-term planning are unsustainable. By contrast, those who build wealth slowly develop essential character traits along the way—patience, discipline, humility, and self-control—traits highlighted in Galatians 5:22-23 and respected by individuals of all backgrounds and beliefs. The Silent Millionaire The most financially secure individuals rarely flaunt their success. As illustrated in The Millionaire Next Door , they live below their means, invest wisely, and avoid impulsive financial decisions. Meanwhile, individuals chasing the appearance of wealth often prioritize image over substance. Life Lessons in Discipline This principle isn’t limited to finance. Consider weight loss or physical fitness—quick fixes often lead to temporary results. True transformation happens through consistent, disciplined effort over time. The same applies to financial well-being. Whether it’s someone using steroids to gain muscle fast or crash dieting to shed pounds, these shortcuts are unsustainable and often harmful. Similarly, high-risk “hot” investments—unverified stock tips, unresearched real estate, or speculative collectibles—can lead to disappointment and loss. Discipline wins in the long run. Have a Plan, Not a Fantasy The get-rich mindset often lacks strategy. It’s reactive, emotionally driven, and rooted in impulse: “Spend now, think later.” In contrast, the wealth-building mindset is proactive. As Luke 14:28 advises: “For which of you, wanting to build a tower, doesn’t first sit down and calculate the cost to see if he has enough to complete it?” This mindset involves: Doing the research Educating yourself Seeking counsel Counting the cost Taking measured action Many people get stuck in “analysis paralysis,” saying things like “I almost invested in that property”  or “I considered buying that stock.”  Often, fear of failure holds them back. But the Bible reminds us not to fear or worry—365 times in fact. Eventually, you must act in faith and take calculated risks if you hope to grow your wealth. Final Thoughts: Gratification Deferred, Wisdom Gained One key differentiator between getting rich and building wealth is delayed gratification. We’re not discouraging dreams of a vacation home or a classic car. Dream boldly—but pursue those dreams in the right time and in the right order. With time and maturity, many people realize that the impulses they once felt so strongly fade with perspective. Waiting often brings clarity—and better decisions. It’s also crucial to distinguish between legitimate wealth-building opportunities and reckless gambles disguised as “investments.” Not all investments are created equal. A friend’s “can’t-miss” penny stock tip, a sight-unseen real estate flip, or a trendy collectible with no history of value are often more risk than reward. Mistakes will happen. Even the most successful investors stumble. But what sets wealth builders apart is that they learn, adjust, and continue moving forward with discipline and purpose. Let’s Build Together At Whitaker-Myers Wealth Managers , we’re committed to helping you take the long view—recognizing the dangers of a get-rich-quick mentality and guiding you toward sustainable, lasting financial success. You don’t need to chase riches. You can build wealth—steadily, intentionally, and with wisdom. And our team of financial advisors would be honored to partner with you on that journey.

How investor psychology influences decisions, especially during market volatility  In the world of investing, logic and data often take center stage. However, even the most seasoned investors can fall prey to emotions, instincts, and cognitive shortcuts that cloud judgment, especially during periods of market volatility . These psychological tendencies, known as behavioral biases, can lead to decisions that may not align with long-term financial goals.   Understanding these biases is a crucial step toward becoming a more disciplined and confident investor. Let’s explore some of the most common behavioral biases and how they might impact investment decisions.   Loss Aversion Most investors feel the pain of losses more intensely than the pleasure of equivalent gains. This can lead to overly conservative decision-making or panic selling when markets dip. For example, during a downturn, an investor might sell assets at a loss to avoid further decline, missing the potential for recovery.   Tip: Keep a long-term perspective and remember that market fluctuations are a normal part of investing.   Herd Mentality Following the crowd can be comforting, but it often results in buying high and selling low. Investors may rush into popular stocks or sectors simply because others are doing the same, especially when headlines fuel fear or euphoria.   Tip: Focus on your personal financial plan and risk tolerance rather than short-term trends or popular opinion.   Overconfidence Investors who believe they can consistently “beat the market”  may take on excessive risk or trade too frequently. This can lead to higher costs and lower returns over time.   Tip:   Diversification and discipline typically outperform frequent trading and market timing over the long run.   Recency Bias This occurs when investors place too much weight on recent events, such as a market rally or a crash, and assume those patterns will continue indefinitely.   Tip: Historical perspective and a balanced portfolio can help counteract emotional reactions to short-term news.   Anchoring Investors often fixate on a specific price point, such as the price they paid for a stock, and base decisions around it, rather than its current value or future potential.   Tip: Re-evaluate investments based on fundamentals and your overall strategy, not arbitrary price points.   Turning Awareness into Action Recognizing these biases is the first step; managing them is the next. Here’s how to stay grounded: Have a plan:  A well-defined financial plan provides a roadmap and helps guide decisions when emotions run high. Work with a professional:  An advisor can act as a sounding board and help keep your investment strategy on track. Review regularly:  Periodic check-ins help you stay aligned with your goals and make adjustments based on data, not emotions.   Final Thoughts Behavioral biases are part of human nature, but they don’t have to control your investment outcomes. With awareness, education, and support, you can navigate volatility with confidence and stay focused on what matters most: achieving your long-term financial goals. Want to talk more about your plan or how to manage through uncertainty? Connect with one of our SmartVestor Pros .

Concerns that a trade war could lead to a recession have rippled across global markets. Investors have been watching closely as China responded to recent U.S. trade actions with retaliatory tariffs, increasing the perceived risk of a full-scale economic standoff. As a result, markets in Asia and Europe declined alongside U.S. equities, and we’ve seen a familiar “flight to safety,” with bond prices rising and yields falling. However, on April 9th, 2025, the landscape shifted dramatically. In a surprise move, President Trump announced a pause on all tariffs except those targeting China—a decision that immediately changed the tone of the markets. I was on the phone with a client at that very moment, reassuring her that, in my view, an inflection point could come at any time, and when it did, we could see a sharp, unexpected rally. As our call wrapped up, I paused and said, “Something just happened—and it’s big.” The market had erupted into a massive rally right around 1 p.m., validating the very scenario we had just discussed. This moment serves as a powerful reminder: markets don’t wait for clarity—they respond to it in real time. Investors who remain disciplined and long-term focused are often the ones best positioned to benefit when sentiment and policy shift unexpectedly. Despite the rally, we don't know what tomorrow holds. My favorite verse I quote is from Ecclesiastes 11:2 - "Divide your portion to seven, yes even to eight, for you do not know what calamity may come upon the earth." So in light of the NCAA tournament that saw UCONN win a national championship on the women's side and Florida take home the prize on the men's side - let's talk about why your portfolio, much like these two impressive basketball teams, needs to be excellent in both it's offense and it's defense. Portfolio balance and financial planning are even more important today In sports, as well as investing, a winning strategy requires a combination of both offense and defense. Defense involves maintaining a portfolio that can withstand different phases of the market cycle. Stock market uncertainty and unexpected life events are inevitable, so always being ready to play defense is important. Going back to Feb 19th, while the stock market cratered, the bond market's return (using the Vanguard Total Bond Fund ETF "BND" ) was +0.83%. Comparatively, the S&P 500 returned -18.76%, the Nasdaq Composite Returned -23.77%, and the Russell 2000 returned -22.62% over that same period. That is the definition of lockdown defense. Offense, on the other hand, involves taking advantage of market opportunities that emerge from changing conditions. The irony is that while periods of market uncertainty may be unpleasant, they also represent times when asset prices and valuations are the most attractive. Ultimately, portfolios that are tailored toward financial goals need both offense and defense. How can investors position in today’s market environment to both protect from risk and take advantage of opportunities? Two of the key principles of long-term investing are diversification and maintaining a long time horizon. This is showcased in the accompanying chart which depicts the range of historical outcomes across stocks, bonds, and diversified portfolios. It also shows how these ranges change when time horizons are increased. For instance, it’s easy to see that over just one-year periods, the stock market can vary significantly, from gaining 60% in 1983 when the market recovered from stagflation fears, to -41% during the global financial crisis. Moving beyond just one-year periods and a stock-only portfolio underscores why these are powerful ways to think about investing and financial planning. Diversifying might reduce the maximum returns an investor can experience, but it also reduces risk. This is evident in the balanced portfolio consisting of 60% stocks and 40% bonds. So far this year, the S&P 500 is 13% lower, but a 60/40 mix of these indices has declined only 4.6%. After all, the goal is not simply to grow a portfolio at the fastest but most volatile rate, but to have the highest possible probability of achieving your financial goals. A diversified portfolio historically has a much narrower range of outcomes, allowing investors to better plan toward their goals. Similarly, extending your time horizon by even a few years can have a significant impact on the range of outcomes. History shows that, since World War II, there has not been a 20-year period in which any of these assets and portfolios have experienced annual declines, on average. The same is true over 10-year periods for many diversified asset allocations. While this is only illustrative and is no guarantee of future performance, it clearly shows the importance of thinking long-term. Volatility can create opportunities What about market opportunities? The accompanying chart shows that the VIX index, often known as the stock market’s “fear gauge,” can spike on a periodic basis. These peaks correspond to sharp drops in the market, such as in 2008 or 2020. These are times when markets are the most nervous and, in many cases, investors feel as if the situation will never stabilize. This chart, which is similar to a chart I showed on my recent YouTube Video , also shows the returns of the S&P 500 over the next year. As we discussed above, there is never any certainty about returns over any single year for the stock market. However, it’s clear that the greatest market opportunities often emerge when investors are the most worried. This is the heart of the famous Warren Buffett quote to “be fearful when others are greedy, and greedy when others are fearful.” This is especially true when markets face liquidity concerns rather than solvency issues. Liquidity problems arise when market downturns force leveraged investors—those using borrowed money—to sell off assets to cover their positions. This often leads to price declines even when the fundamentals of the asset remain solid. It’s a prime example of how short-term market moves can become disconnected from long-term realities, creating unique opportunities for patient, disciplined investors. As Dave Ramsey teaches, we should stay far away from debt—both personal debt and margin debt—because borrowing to invest adds unnecessary risk and can force investors into painful decisions during volatile markets. It's important to note that this is not an argument for market timing. Even when the VIX is high, there is no guarantee that markets will rebound quickly. Instead, investors should view this as additional support for taking a portfolio perspective. Market downturns often occur when valuations are the most attractive, and thus, it can make sense to shift toward – not away – from these assets. Of course, what makes sense for a given portfolio depends on the specific circumstances. Really, the most prudent scenario may be - just build a plan (baby step 4) and execute it. You'll probably execute it in good times and bad times, and that'll lead to some excellent entry points in your investment portfolio. Valuations are more attractive today So, which assets have helped this year, and which are more attractive today? Bonds have played an important role this year as interest rates have fallen, helping to balance portfolios and partially offset declines in other asset classes. Bonds are able to do this because they typically exhibit lower volatility than stocks and often move in the opposite direction. For this reason, investors often say that “bonds zig when stocks zag.” Holding the right balance of “uncorrelated” assets helps investors prepare for challenging times. Valuations, while potentially stretched for the S&P 500 (nearly 20X), which is why we recommend a more balanced and valuation-focused approach to your S&P 500 exposure, or growth and growth & income in Dave Ramsey's Vernacular , the valuations of the Russell 2000 (Aggressive Growth) are around 14X earnings, and the valuations of the MSCI EAFE (International) are around 14X, providing historically good ten-year forward-looking returns when you buy stocks at those (Russell & MSCI EAFE) valuation points. Indeed, they are more attractive today after this recent drawdown. While it is still unclear where earnings will settle after accounting for tariffs, we should get insight very soon as earnings season kicked off with Delta Airlines today, and Friday will include the big banks (JP Morgan, Citi, Wells Fargo). Some sectors, such as Information Technology, Communication Services, and Consumer Discretionary, have seen multiples decline more amid the broader pullback. Interestingly, assets such as gold, which often serve as safe havens, have struggled more recently. Gold prices rose to new all-time highs earlier this year, resulting in double-digit returns over the past year. Investors are typically drawn to this asset class for many of the same reasons they are interested in bonds – it can serve as a store of value in times of uncertainty. However, gold prices have also retreated as economic fears have weighed on all commodities. This highlights the importance of not focusing only on a single asset class, but viewing it from a holistic portfolio perspective. The bottom line? Offense and defense are both important in times of market uncertainty. They help investors manage risk and take advantage of attractive opportunities that may emerge