Basic Insurance In addition to health, home, umbrella, and auto insurance, each family and most individuals should consider a few other types of insurance to protect their assets and overall financial plan. Planning for the unexpected is important, and insurance serves that purpose. It's a safety net that provides relief in times of crisis, ensuring your financial plan stays on track. It's not an investment that grows over time; it's a shield that protects your financial plan from being derailed, provides peace of mind, and reduces the burden of unexpected events. Here are a few additional types of insurance to consider for yourself and your family.   Life Insurance Life insurance is a must for individuals who have people who depend on their income or even their non-income support to get by day to day. And even if you are single, you might consider a policy that will at least cover your funeral expenses vs. leaving it to your family/friends to figure out and arrange when already dealing with grief.   Among the various life insurance options, term life insurance  stands out for its affordability and suitability for most individuals. Other types, such as whole life or universal life, often come with a higher price tag for the coverage they offer.   Several factors, including age, health, coverage amount, term length, and occupation, influence the cost of life insurance. A common guideline is to choose a policy with a death benefit of ten to twelve times your household income. As the Ramsey Solutions Team  suggests, stay-at-home parents should also consider a policy covering child care and home care costs, somewhere between $250,000 to $400,000.   As far as length of term goes, consider a 15 to 20-year policy. Life insurance is only necessary when someone depends on one’s income to go about their daily life. Eventually, children grow up and move out, and this should be enough time to build wealth and become self-insured.   Lastly, life insurance costs continue to increase, so getting covered sooner rather than later will save money. Locking into a level-term policy will ensure the price does not change for the policy's full term. The need for an additional policy may occur as income goes up. In that case, adding extra coverage is possible with an additional policy.   Long-Term Disability Insurance Long-term disability insurance  is also a must-have for working adults. Becoming disabled and unable to work for a prolonged period can be devastating to a family. The Social Security Administration claims that “About 1 in 4 of today’s 20-year-olds will become disabled and entitled to Social Security disabled worker benefits before reaching age 67, and 65% of the private sector workforce has no long-term disability insurance.” - SSA.gov     That is a crazy statistic and furthers the need for long-term disability insurance. You can get Social Security Disability, but that can take a long time. First, you need to be approved for the government benefit, and then, if you are approved, you must wait five months before you can get your first payment.   Having a long-term insurance policy can bridge that gap. A common question is, “Should I have short-term disability too?” Short-term benefits last between three to six months, depending on the coverage. That is also how long it takes for long-term policies to start. Planning correctly can avoid the need for short-term disability insurance if you have a fully funded three to six-month emergency fund .   The cost of long-term disability is typically 1-3% of your income. Even if you have a relatively safe job, that does not eliminate the need for coverage. However, it can help lower the cost.   Identity Theft Protection With the rise of AI and technology in general, protecting your identity is more critical now than ever. Millions of people are victims of identity theft  every year, and that number is growing. In 2023, 5.7 million identity theft cases were reported to the Federal Trade Commission (FTC), and identity theft cases have almost tripled in the last decade. – FTC Stats   The cost of identity theft protection varies, but finding an affordable policy with a quick internet search is easy. Here are a few easy ways to avoid becoming the victim of identity theft: Beware of phishing emails or spam calls. Do not give away your social security number unless you know it is safe to do so. Watch for mail or packages and get them promptly when they arrive. Shred documents with sensitive information. Use strong passwords or a password generator  for online accounts. Do not use easy-to-guess security questions. Always use two-factor authentication. Do not use public wi-fi to check your bank account or other sites with sensitive information. Add alerts to your credit cards and bank account.   Where to look These additional types of insurance can be a lifesaver when one least expects it. This article is meant for general informational purposes and should not be taken as advice. Several of our agents at Whitaker-Myers Group  are licensed in multiple states and would be happy to discuss in more detail these insurance products or any other type of insurance you are looking for.     If you would like to talk to someone about how these could benefit your financial plan, we suggest contacting your advisor. If you do not have an advisor, Whitaker-Myers Wealth Managers has a team of advisors  ready to help answer your questions.

We are thrilled to announce that Whitaker-Myers Wealth Managers  has been named one of the Top 50 RIA Firms in the United States  by ETF.com ! This prestigious recognition is part of the ETF.com Leaders: Top Advisors & Firms List , which highlights financial professionals and firms that demonstrate exceptional expertise, growth, and leadership in leveraging exchange-traded funds (ETFs) to help clients achieve their financial goals. For the last decade, Whitaker-Myers Wealth Managers has been dedicated to providing clients with personalized, comprehensive financial strategies designed to grow and protect their wealth. This honor reflects the hard work and dedication of our team , as well as our commitment to innovative and client-focused investment solutions. "We appreciate ETF.com 's recognition of our forward-thinking investment philosophy and process, rooted in the principles taught by Dave Ramsey and leveraging the next generation of diversified investment options such as ETFs ,"  said John-Mark Young , President and Chief Investment Officer of Whitaker-Myers Wealth Managers. As a firm that embraces the power of education and disciplined financial planning, we are proud to be among the leaders shaping the future of wealth management. ETFs, with their cost efficiency, transparency, and flexibility, play a critical role in helping us design portfolios that align with our clients’ unique objectives while remaining agile in today’s dynamic markets. This recognition inspires us to continue innovating and building on our mission to deliver financial clarity, peace of mind, and long-term success for our clients. We would like to thank our clients, partners, and team members for their trust, collaboration, and dedication—without you, this achievement would not have been possible. To learn more about how our team can help you build a brighter financial future, contact us at 330-345-5000 or visit our website at www.whitakerwealth.com . Let’s continue this journey together!

Defining your investment plan When choosing the best way to invest in the stock market, it is good to look at a few items that make up the stock market. Knowing what stocks, ETFs, and mutual funds are is essential in determining the best action plan when investing. Through this knowledge, one hopes to understand better what stocks, ETFs, and Mutual funds are. Stocks The definition of a stock is: “In finance, stock consists of all the shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares”. When one buys a share of Microsoft, Facebook, or Tesla, they become a fractional company owner. Stocks allow stockholders to vote on board members and give the stockholder the potential to receive dividends. When someone invests aggressively, they would have a portfolio made up almost entirely of stocks. Stocks are risky, as they measure a given company's performance and perceived value. If a company is deemed worthless, then so is your proportional ownership in that company. The pro of a stock is that a stockholder can benefit from growth in a company, long-lasting performance in the form of dividends, and a small say in what is happening in the company. ETFs The definition of an Exchange Traded Fund (ETF) is: “A marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.” The best metaphor to explain ETFs is in the definition. It is a basket. Within that basket are multiple assets. Let’s say that someone thinks the S&P 500, which tracks the performance of the 500 most valuable companies in the USA, is the best “basket” to invest in. Well, there is an ETF for that. Custodial companies like Schwab, Vanguard, and Fidelity have their own ETFs that track the S&P 500. Although Exchange Traded Funds (ETFs) take two days to settle, their price is always live during market hours, just like a stock. It is constantly fluctuating during that time too. What is made up of this basket depends entirely on what the ETF was created to track. It does not change. Mutual Funds The definition of a Mutual Fund is: “A professionally managed investment fund that pools money from many investors to purchase securities.” Mutual Funds have a fund manager. This person decides what comes in and out of the mutual fund and acts accordingly based on market trends. They take the pooled money and diversify the fund for those who buy into it. Mutual fund pricing is not live and is updated at the market’s closing of each trading day. The mutual fund also comes with a management fee for purchasing into their fund. The power of speaking with your advisor Everyone has different goals and risk tolerances, and that is why it is important to speak with your advisor to make sure your assets are allocated appropriately. If you have more questions, be sure to reach out to your Financial Advisor today.

Beginning Steps In recognition of Small Business Month, Whitaker-Myers Wealth Managers is partnering with our CPA and fellow small business owner, Kage Rush, to discuss the thought process and steps needed to open and continue to operate a successful small business or side hustle. This article will be the first of three on organizing a small business and the early steps. Starting a small business can be an exciting opportunity. Still, it can also present new risks and challenges for entrepreneurs who may not know what all is entailed with running a small business. Many people have ideas they think will work for a small business but don’t always have a business plan to execute the vision. Regarding your business venture, there are several factors to consider when starting a small business. Questions to ask yourself We list a couple of questions below to consider when you are starting a small business: Is there a market in your area for the service/project you are creating? If the market for your product is not for local clients, what is the hurdle needed for the service/product to be easily accessible to the markets you want to service? How competitive is the market for your service/product? If there is similar competition for your service/product, then your margin for error can be tight, or revenue could be harder to generate because of competitive pricing. How much money or capital is needed to start the business before it becomes sustainable on its own? If the business is not profitable for several years, the owner(s) must be willing to fund it until it is sustainable. Do you want to be the business's sole owner, or do you want to bring on partners to share the company's burden? What is your goal/purpose for creating the business? Will you need to hire employees at the start of the business? How much time are you willing to commit to the business? What are the risks associated with starting the business? If risk is associated with your business, you may want to consider putting the business in a Limited Liability Company (LLC). We recommend contacting qualified attorneys for this to ensure the proper setup of the LLC. Will this business become your full-time job and source of wages/income? Creating a Business Plan Answering these questions helps entrepreneurs create business plans to help meet their objectives. The business plan enables you to set goals for the business, track progress towards those goals, and give you a vision of what the business will look like once you have created your business plan. The definition of a business plan is “a document that sets out a business’s future objectives and strategies for achieving them.” The critical part of that definition is the word “document,” meaning you want to have a written plan that can be referenced and checked to hold yourself accountable. Goals for a business plan should be specific, obtainable in a reasonable period, and measurable. A bad example of a goal for a business plan is to say, “My goal is to become the greatest tax preparer on the planet!” . While some of my clients may feel that way, there is no easy way for me to measure success on that goal. A better example of a goal for a business plan is to say, “I want to add 75 new clients for the tax year 2023.” The purpose is clearly defined. We have a time period to reach that goal and can measure the success of that goal by how many new clients we gain between now and April 15th, 2024. Setting up your game plan Once a goal is established, the next step is creating a game plan for reaching that goal and creating checkpoints. Using the example goal from above, if my goal is to add 75 new clients by April 15th, 2024, I need to add 18 clients a quarter, or 6 clients a month between now and April 2024, to succeed. Our goal checkpoints can now be measured to see if our goal is progressing to completion, whether we are behind on the goal, or if we are exceeding those expectations. Monitoring these checkpoints for your goals is essential because it holds you accountable to your business plan and helps you take a step back and take a macro view of your business. Next Steps… I hope this article helped provide insight into the thought process behind starting a small business. Our next article (Part II) will cover the type of business entities to choose from to form your small business, the tax implications and reporting associated with that choice, and how to determine what setup best suits your needs. If you are interested in starting your own small business and have accounting questions or need accounting services, please get in touch with your financial advisor or visit our tax website to schedule an appointment.

Annuities “You get an annuity; you get an annuity, you get an annuity, and in fact… everyone gets an ANNUITY!”   It's not a common phrase you would expect to hear from a Dave Ramsey  enthusiast.  And for GOOD REASONS! Annuities are a very complex investment system and require a very in-depth breakdown. However, this article intends to give a 30,000-foot overview. We will start by looking at the common terminology to understand annuities and the pros and cons of the annuity product.       What is an Annuity? Let’s start by defining an annuity and some common terminology used with annuities.   Annuity An investment product, where the insurance company agrees to make payments to the Annuitant; these payments can either be made immediately or in the future   Accumulation Phase A   period of time in which the annuity grows (funds are accumulating)   Annuitization Phase Payments to the annuitant begin   Annuitant The individual who opens the annuity with the insurance company   Beneficiary Persons who are entitled to a death benefit if the terms of the Annuity contract permit    Common Types There are several different kinds of annuities as well. With so many available, knowing which one could benefit you can be overwhelming. Below are the most common types of annuities, to name a few. Immediate Annuity The insured person provides a large lump sum, and the Insurance company starts to provide immediate payments to the insured person Deferred Annuity Payments to the insured person start at some future date The insured party can either provide an initial large lump sum payment or make periodic payments Flexible Premium Deferred Annuity Insured persons make payments, which they can change the amount they regularly contribute; just like investing, the less you contribute, the less your potential income stream is Single Premium Deferred Annuity Initial Large lump sum payment Commonly purchased with proceeds from a life insurance policy Fixed Annuity Funded with a significant initial contribution Insured receives a fixed interest rate over a period of time Variable Annuity Funded with an initial contribution Invested into sub-accounts that are tied to either the equity or bond market No guarantee of returns   Payment Types Knowing how the annuity would be paid out is important to be aware of, as there are several different ways to do this. Pure Life Annuity Payments are made to the annuitant throughout their lifetime.  Anyone wishing to provide an asset to their heirs would not use this investment vehicle. Refund Option Annuitants can choose a period of time when their heirs receive a payment proceeding the annuitant’s death if the annuitant dies before the end of the annuity The annuitant buys a $100,000 annuity and only collects $75,000 before their death; the balance ($25,000) goes to the annuitant’s heirs Period of Time Certain Annuity The annuitant can choose a length of time where the annuity is guaranteed. However, it will continue throughout the entire lifetime of the annuitant The annuitant chooses a “10-year Period of Time Certain Annuity”, but if the annuitant dies in year 7, the annuitant’s heir will receive payments for 3 years  The annuitant chooses a “10-year Period of Time Certain Annuity”, but if the annuitant dies in year 40, since the annuitant received a monthly payment for all 40 years, the annuitant’s heir will not receive any benefit Joint and Survivor Annuity This annuity will cover two annuitants; typically, these are two spouses, and this option will make payments for both the annuitants' lives  Annuitant buys a Joint Survivor Annuity, and one of the annuitants dies within three years, but the spouse dies 30 years later; the surviving spouse will receive monthly payments for their whole life No benefit for heirs   Benefit Rider This is a benefit an annuitant can purchase, allowing the upside potential of the equity market along with a guaranteed rate of return and principal protection.  Cost ranges from .3% - 2% annually Guaranteed Minimum Accumulation Benefit Guarantees for a specified period of time an investor’s contract will be at a minimum amount of invested regardless of performance Has principal protection with upside potential Funds are invested in sub-accounts Guaranteed Minimum Income Benefit Guarantees annuitant a minimum amount of income during their lifetime regardless of the investment performance The minimum monthly amount is based on the annuitant’s initial investment The annuitant must wait for a specified period of time before annuitization Guaranteed Minimum Withdrawal Benefit Guarantees a percentage, usually 5%-7%, of the amount invested can be withdrawn annually until the entire amount is recovered Principal protection Guaranteed Lifetime Income Benefit Guarantees a certain percentage, usually 2-8%, of the original investment can be withdrawn each year as long as the annuitant lives Percent is usually based on age, with young individuals receiving a lower percentage    Taxation of Annuities As with everything in life, one must consider the tax associated with an annuity. Growth of the investment is tax deferred.  Then, when the annuitant elects to start distributions, growth is taxed at Ordinary income.  If the annuitant outlives the original benefit of the annuity, all payments following that point are taxed at Ordinary income.  The annuitant purchases $100,000 annuity.  He receives $2,000 a month.  Of that $2,000, $833 is principal of his original $100,000 and the $1,167 is interest.  After 10 years, he has received the $100,000 that he contributed.  100% of distributions following this point will be taxed at Ordinary Income.   As mentioned at the beginning of this article, annuities are complicated to understand; in fact, many people within the financial community don’t fully understand them.  This information will help clarify this complex product in future articles.  At Whitaker Myers Wealth Managers , we have a team of financial advisors available to help answer questions and create financial plans to help try and reach your financial goals. If you don't have an advisor, reach out to one of our team members today!

Life Insurance: Term Life Insurance Specifically As followers of many of Dave Ramsey's  principles, we should be familiar with his thoughts on Life Insurance. If you’re not familiar, these are his blanket thoughts taken directly from ramseysolutions.com : “If anyone depends on your income for their daily needs, you should have life insurance in place with a death benefit worth 10–12 times your annual income. Even though there are many different types of life insurance, the only kind we recommend is term life insurance”.   While this is a great place to start, there are certainly more areas to consider when deciding how much coverage is right for you.   Please also consider reading this article: DO YOU HAVE TERM LIFE INSURANCE?   Considering the DIME Test The DIME test is an acronym for Debt, Income, Mortgage, and Education. When I mentioned other items to consider when finding an appropriate amount of Term Insurance, this is what I meant.   D - Debt I - Income (times number of years left with a dependent) M - Mortgage E - Education Expense   Case example: A 30-year-old man and a 28-year-old woman are married and have a 6-year-old He makes $70,000 per year; she doesn’t work They have $50,000 of consumer debt left between the two cars $160,000 left on the mortgage For education expenses, we blanket estimate $50,000 per child Therefore, using the DIME test, we see that $50,000 (cars) + $840,000 (70k*12 years) + $160,000 (mortgage) + $50,000 (school cost) = $1,100,000 in needed coverage for the husband and roughly $250,000 to $300,000 for the wife to pay off the house and the cars and save for college since she doesn’t work.   Life insurance is a difficult subject and not a fun topic many want to discuss. However, knowing they have all their bases covered, like debt, mortgage, and college, makes the subject more tolerable when speaking with clients. This helps relieve the stress and discomfort of paying bills or figuring out this piece of the finance puzzle when thinking about a potential loss of life within your family.    Considering Reinvestment of Proceeds In the case above, you could see how someone making a relatively good income ($70,000 per year) can quickly need massive amounts of coverage.   Another example: If the breadwinner was making $300,000 per year and their youngest was three years old, suddenly, that calculation would become a needed coverage of over $4,500,000 ($300k*15 years).   While that is still affordable coverage for someone making that amount of money, $4,500,000 is probably not the perfect amount of coverage. First, we need to ensure that the coverage amount always pays for consumer debt, education savings, and mortgage. After that, we must look at reinvestment opportunities for the surplus death benefit.   When speaking about income replacement, once those portions are paid for (the D, M, and E portion of the acronym), the living beneficiary will have very low expenses, meaning they won’t necessarily need to live off $300,000 per year. Being able to invest an amount like $1,500,000 or $2,000,000 in tax-free death benefits will be more than enough for a surviving spouse with no debt, no mortgage, and education fully funded to live on.   The surviving spouse should reinvest the lump sum into the market and allow the money to work for them.   Losing a spouse or other family member is a crippling event, and the stress of finances should never cause grieving to be interrupted.   How to Get Started If you want to learn more about Term Life insurance , you can ask one of our financial advisors   questions. We also have a licensed insurance agent  on the team that they can refer you to for Term Life Insurance Policies. He can help answer any questions you have, create a quote, or write a policy for you if needed.

After a historic campaign, Donald Trump has won the 2024 presidential election and Republicans have won control of the Senate. For half the country, this is a cause for celebration, while for the other half, this is a disappointing result that will require time to process. This reflects the divisions in our country on both social and economic matters that we hope will heal in time. The stock market has performed well across both parties It’s clear that political outcomes can influence our daily lives and the direction of the country. However, regardless of which side of the aisle you’re on, history shows that the impact of politics on portfolios is often overstated. It’s important in the coming weeks to not overreact in either direction, but to instead keep a level head. Putting politics aside, what might this result mean for the economy and financial markets over the next four years? From a broad perspective, history shows that the stock market and economy have performed well under both parties over the past century. In the coming weeks, there will likely be both bullish and bearish predictions. Some may expect a significant rally similar to the 2016 election, while others will expect issues like tariffs to slow the global economy. When it comes down to it, long-term investors should continue to walk the line by staying invested, diversified, and focused on fundamentals. On the one hand, stock market valuations are already well above average, making it more important to be thoughtful when building portfolios, ideally with the guidance of a trusted advisor. On the other hand, investors should also be wary of overly pessimistic views on the market. It's likely that predictions for market crashes have been made about every president in modern times. In recent years, it was certainly said about Obama in 2008, Trump in 2016, and Biden in 2020. Thus, it's important to separate personal and political feelings from financial plans and investments.   This is not to say that good policies don’t matter, but instead that business cycles are driven by factors beyond politics. What’s more, policy changes tend to be incremental, even when a President’s party controls Congress. History also shows that it is very difficult to predict how any particular policy might affect the economy and markets since stock prices adjust to new policies and companies adapt quickly as well. The Tax Cuts and Jobs Act will likely be extended Regarding taxes, a Republican Party victory makes it likely that much of the Tax Cuts and Jobs Act will be extended beyond its 2025 expiration. The TCJA overhauled the tax code for both individuals and businesses, including cutting corporate taxes to 21%, reducing many individual rates across tax brackets, lowering income taxes for many Americans, doubling the estate tax exemption, and more. In addition, the uncertainty over these provisions during the election season made tax planning more complex. The expiration of the TCJA would create a potential “tax cliff” for many individuals and businesses. As a result, Roth IRA conversions, for instance, reportedly increased leading up to the election as individuals took advantage of current low tax rates. It’s important to maintain perspective around tax policy since these issues can be politically charged. While taxes have a direct impact on households and companies, they do not always have a straightforward effect on the overall economy and stock market. This is because taxes are only one of the factors that influence growth and returns, and there are many deductions, credits, and strategies that can reduce the statutory tax rate. The market has performed well across many tax regimes across history, including periods when the highest marginal rates were between 70% and 94% after World War II. Taxes today are low by historical standards. As the national debt grows, it’s prudent for investors to expect tax rates to eventually rise. Planning for this possibility is only growing in importance. Tariffs and trade wars are back in focus Looking at proposed policies, many investors worry that a second trade war could result from tariffs on major trading partners including China, the European Union, Mexico, and Canada. During his first term, President Trump increased duties on many goods including steel, aluminum, solar cells, washing machines, and more. On the campaign trail earlier this year, he proposed raising tariffs further, including up to 60% on China. Unlike tax policy, which requires congressional approval, the president can impose tariffs through executive order. While many worry that this could harm the economy, analyzing tariffs can be complex. The Trump administration’s use of tariffs in 2018 and 2019 was often as a negotiating tactic, leading to a “Phase One” trade deal with China in early 2020. While the merits of the deal can be debated, the worst-case predictions for the economy and market never occurred. In theory, tariffs can be inflationary since they increase the final costs of goods for consumers. Additionally, they run counter to long-held economic views that open trade creates mutual benefits for trading partners. However, they can also help to protect domestic industries from unfair trade practices, as well as secure intellectual property from theft and forced transfers. The reality is that many tariffs imposed by the Trump administration were continued under President Biden. The current tariff proposals reflect the trends of de-globalization and protectionism that have emerged over the past decade. Once again, while tariffs and trade wars may impact certain industries and businesses, it’s important to not overreact with our portfolios. Investors should focus on years and decades, not days and weeks With the election now over, investors will shift their focus back to other economic considerations such as the Federal Reserve’s next rate decision, corporate earnings, and consumer spending. The fact that a significant source of uncertainty has been lifted could be enough to improve investor sentiment, as it has in past election seasons. Ultimately, the business cycle is what has driven long run returns over the past century, and not two or four-year election cycles. These long-term business cycles are the result of broader factors such as industrialization, globalization, the information technology revolution, trends in artificial intelligence, and more. For investors with financial plans spanning years and decades, focusing on these longer-run trends is far more important than reacting to daily headlines. The bottom line? Regardless of political views, investors should stay invested and diversified as the election season comes to a close. Clarity around taxes, tariffs, and other policies will help, but maintaining perspective around long-term trends is still the best way to achieve financial goals. If you have questions about investing, reach out to your financial advisor. If you don't have an advisor, reach out to a member of the Whitaker-Myers Wealth Managers financial advising team , as they will be happy to discuss your questions.

The Efficient Market Hypothesis  (EMH) The efficient market hypothesis (EMH) is a theory that suggests that share prices accurately reflect all available information. This implies that it is impossible to consistently achieve returns that outperform the market by using strategies based on publicly available information, as stocks are always trading at their fair value. The underlying assumption is that investors are rational and act quickly to incorporate new information into the stock price, ensuring that the market remains efficient. This theory has significant implications for investment strategies, as it suggests that passive investment approaches, such as investing in index funds, are more likely to yield optimal results compared to active trading strategies.   Weak, Semi-Strong, Strong forms The EMH has three different forms: weak, semi-strong, and strong.   Weak Form The weak form of EMH posits that current stock prices reflect all historical price data, rendering technical analysis, which relies on identifying patterns in past price movements (more on that here ), ineffective in predicting future price movements. However, proponents of the weak form believe that fundamental analysis, which involves evaluating a company's financial performance and intrinsic value, can still be utilized to identify potentially undervalued stocks.   Semi-Strong Form The semi-strong form contends that stock prices reflect all publicly available information, including historical prices, financial statements, and news releases. Consequently, both technical and fundamental analysis are considered futile in consistently outperforming the market. According to this form, the only way to achieve superior returns is through non-public or insider information.   Strong Form The strong form of EMH asserts that stock prices incorporate all public and private information, making it impossible to gain an advantage over the market, even with insider information. This form argues that any apparent discrepancies in stock prices are quickly rectified by market participants who have access to all available information. The strong form represents the most extreme version of EMH, suggesting that all information is entirely and instantaneously reflected in stock prices. While the EMH is a widely accepted theory in finance, it has been subject to criticism and debate.   Challenges/Arguments against the EMH One of the main arguments against EMH is the existence of market anomalies, which are patterns in stock prices that contradict the hypothesis. The "value effect," for example, suggests that stocks with low price-to-earnings ratios (value stocks) tend to outperform stocks with high price-to-earnings ratios (growth stocks). This contradicts the EMH because it suggests that investors can use publicly available information (price-to-earnings ratios) to identify undervalued stocks and generate excess returns. Other anomalies include the "January effect," where stock prices tend to rise in January, and the "small-firm effect," where smaller companies tend to outperform larger companies.   Another challenge to EMH is the success of investors like Warren Buffett, who have consistently outperformed the market over extended periods. Proponents of EMH argue that these successes are merely due to chance or luck, as in a market with many participants, some are bound to outperform the average. However, critics contend that certain investors' consistent and long-term success suggests that skill and knowledge can lead to superior returns. The existence of portfolio managers and investment houses with superior track records further supports this argument.   Conclusion Despite the criticisms, EMH remains an influential theory in finance, and empirical research has found that its conclusions hold true in many cases. Studies have shown that passive investing strategies, such as investing in low-cost index funds, tend to generate better returns than active trading strategies over the long term. This is because passive investing minimizes transaction costs and avoids the risks of trying to time the market  or pick individual stocks . However, it is important to acknowledge that markets are not perfectly efficient, and skilled investors may have opportunities to generate alpha or excess returns. Additionally, the level of market efficiency can vary across different markets and asset classes .    As always, investing can be confusing or overwhelming. That is why the team of Whitaker-Myers Wealth Managers  prides itself on having the heart of a teacher  to help answer your questions and help guide you to a successful outcome.

As the November 5 presidential election approaches, polls indicate a tight race between former President Donald Trump and Vice President Kamala Harris. With both candidates intensifying their campaigns in key swing states, investors may be concerned about the potential impact of either outcome on their investment portfolios. The current political climate is characterized by deep divisions, leading to heightened emotions surrounding this election. In such an environment, investors must prevent political sentiments from interfering with their long-term financial strategies. As my friend Dave Ramsey consistently says, what happens in your house is so much more important than what happens in the White House. He goes on to remind listeners that he has made money under both parties and while specific policies can make it harder to be a profitable publicly traded company or small business, there is probably nothing any President can do to take down this beautiful country and economic power. That will be King Jesus's decision as to when that happens. Speaking of our friend Dave Ramsey , recently, he came out on an episode letting the world know who he was voting for. That clip can be seen here . Additionally, he did an excellent interview with President Trump. That interview, where they mainly focused on his ideas around improving the economic climate for small businesses, can be watched or listened to here . Estate planning faces uncertainty due to potential tax policy changes While the election results may significantly affect our daily lives as citizens, voters, and taxpayers, it's important to separate political preferences from investment decisions. Historical evidence suggests that economic and market conditions tend to influence election outcomes rather than vice versa. Therefore, it's advisable to exercise your right to vote at the polling station but refrain from making investment decisions based on political leanings. How can investors maintain a balanced perspective in the coming weeks? One of the most intricate areas affected by the election outcome is tax policy. The impending expiration of the Tax Cuts and Jobs Act (TCJA) at the end of 2025 creates uncertainty regarding the future of individual and corporate taxes, potentially leading to a "tax cliff." The candidates have divergent approaches to corporate taxes, individual rates, capital gains, tax credits, and other related issues. It's essential to maintain perspective on tax policy, as these topics can be politically charged. While taxes directly impact households and businesses, their effect on the overall economy and stock market is not always straightforward. This is because taxes are just one of many factors influencing growth and returns, and various deductions, credits, and strategies can mitigate the impact of statutory tax rates. From a historical standpoint, current tax rates are relatively low. This will remain true whether the top marginal tax rate is 37% or 39.6%. Given the growing federal debt, it's prudent for investors to anticipate potential tax rate increases in the future, regardless of the election outcome. Planning for this possibility, ideally with guidance from a trusted advisor, is becoming increasingly important. Estate taxes represent an area where rates are particularly low by historical standards. This tax, levied on the transfer of assets to heirs after death, saw its exemption amount doubled by the TCJA. After inflation adjustments, the exemption has reached $13.6 million for 2024. Without further action, this would revert to the pre-TCJA level, adjusted for inflation, which economists estimate would be approximately $6.8 million per individual in 2026. Despite estate taxes contributing only a small fraction of government revenue and affecting a limited percentage of the population, it has become a contentious political issue. The future of estate taxes will largely depend on the election results, including Congressional races. For many affluent households, this could significantly impact their tax and estate planning strategies. Election results may influence global trade and tariff policies The candidates also present differing views on potential trade policies, particularly regarding tariffs. While the trend towards deglobalization and reshoring of manufacturing is likely to continue, the approach to using tariffs for enhancing U.S. competitiveness and generating revenue may vary depending on the election outcome. It's worth noting that many of the tariffs implemented during President Trump's administration were maintained by the Biden administration. Historically, tariffs played a significant role in trade and were a major source of U.S. government revenue. However, their importance has diminished in recent decades. The establishment of organizations and agreements such as the WTO, NAFTA, the USMCA, and others has helped reduce trade barriers among major partners. Nevertheless, tariffs have been periodically used to protect domestic industries and intellectual property, including sectors like steel, electronics, semiconductors, and agricultural goods. For investors concerned about a potential trade war, it's important to remember that similar fears in 2018 and 2019 did not lead to the worst-case scenarios some had predicted. The economy remained robust during this period, with unemployment near historic lows and inflation virtually non-existent, despite being late in the business cycle. Ongoing negotiations between key trading partners eventually helped alleviate some concerns. As illustrated in the accompanying chart, the U.S. has maintained trade deficits with numerous countries across various trade regimes. Economic growth has occurred under administrations of both major parties Historical evidence demonstrates that economic growth and bull markets have occurred under administrations of both major political parties. While this may seem counterintuitive, it underscores the fact that politics often has a limited impact on the economy and markets. Specifically, factors such as the business cycle and broader trends like the advancement of artificial intelligence and technology, declining inflation, and a strong job market tend to have a more significant influence. I recently obtained my Advanced Certificate in Blockchain and Digital Assets from DACFP and I can't even begin to describe how bullish I am right now on the potential for blockchain technologies in the future. As a matter of fact, the future is kind of here in that we are already using blockchain in many situations that I would argue have nothing to do President Trump or Vice-President Harris. Here are two great examples. 1. Supply Chain Transparency and Traceability Blockchain is revolutionizing supply chains by providing transparency and traceability from production to the end consumer. For example, major food companies like Wal-Mart are using blockchain to track produce, meat, and dairy from farms to stores. With blockchain, each step of the supply chain is recorded immutably, ensuring that consumers can trace the origin of products and verify authenticity, sustainability practices, and food safety. This reduces fraud, enhances food safety, and allows consumers to make informed choices. 2. Financial Inclusion Through Decentralized Finance (DeFi) Decentralized finance, or DeFi, uses blockchain to provide financial services without traditional banks. Through DeFi platforms, people can borrow, lend, save, and earn interest on digital assets directly on the blockchain. This is especially impactful in regions where access to banking is limited, allowing millions of unbanked individuals to participate in the financial system, secure loans, and grow savings. DeFi helps foster financial independence, creating new opportunities for economic growth globally. As you can see, Despite the perceived importance of this election, it's worth noting that policy changes are often implemented gradually due to the system of checks and balances in our political structure, and technology like that described above does not care about who sits in the White House. Campaign promises may differ substantially from what candidates can actually achieve once in office. Regarding taxes, neither candidate is proposing a return to pre-Reagan era levels when top marginal rates reached as high as 94%. In terms of trade, while tariffs may increase, they are unlikely to reach the levels experienced during the Great Depression nearly a century ago. Keeping these facts in perspective is crucial when planning for the next four years. The bottom line? While the election is significant for various reasons, its long-term impact on the stock market and economy is often overestimated. Economic growth has occurred under both Democratic and Republican administrations, and it's essential for investors to maintain perspective during this election season.

John-Mark Young , President of Whitaker-Myers Wealth Managers, has recently achieved two advanced certifications to further elevate his expertise in retirement planning and digital assets. Young earned his Retirement Management Advisor (RMA®) certification from the Wealth and Investment Institute , as well as an Advanced Certificate in Blockchain and Digital Assets from the Digital Assets Council of Financial Professionals (DACFP) . This specialized training equips him with deeper insights into both traditional retirement planning and the emerging role of digital assets, enhancing his ability to serve clients as they navigate an increasingly complex financial landscape. The RMA® designation is highly regarded among financial professionals, as it focuses on comprehensive retirement planning, including managing sequence-of-returns risk and optimizing retirement tax strategies. Sequence-of-returns risk—the risk of experiencing negative returns early in retirement—can significantly impact a retiree’s savings. John-Mark's RMA® certification provides him with advanced strategies to help mitigate this risk, allowing his clients to retire with greater financial security and confidence. John-Mark's expertise in retirement tax planning , another critical area of focus in the RMA® program, is invaluable for clients who want to maximize their retirement income by minimizing tax liabilities. This knowledge enables him to offer tailored strategies that align with his client’s goals, making retirement planning more effective and personalized. In addition to his RMA® certification, the Advanced Certificate in Blockchain and Digital Assets from DACFP empowers John-Mark to navigate the complexities of digital assets, such as Bitcoin and Ethereum. With digital assets poised to play an increasingly significant role in the future economy, John-Mark can now better assess how these emerging assets might fit into a client’s retirement portfolio. For clients interested in digital assets, his expertise provides a valuable perspective on incorporating crypto responsibly into a diversified investment strategy. These dual certifications represent a well-rounded approach to modern financial planning, blending traditional retirement planning with knowledge of the fast-evolving world of digital assets. John-Mark's commitment to continued education and forward-thinking strategy reflects Whitaker-Myers Wealth Managers mission to provide clients with up-to-date, comprehensive financial guidance. As John-Mark incorporates these advanced skills into his practice, his clients stand to benefit from his deepened expertise in managing both established and emerging assets for a secure and prosperous retirement.

The Whitaker-Myers Group, a cornerstone of the Wooster community and a trusted resource in insurance, wealth management, and tax advising, has been awarded the prestigious Business of the Year Award by the Wooster Chamber of Commerce . This award recognizes outstanding business leadership, dedication to the community, and commitment to providing high-quality services. This achievement marks a significant milestone for Whitaker-Myers, which comprises Whitaker-Myers Insurance Agency , Whitaker-Myers Wealth Managers , and Whitaker-Myers Tax Advisors . Together, these branches offer comprehensive support to individuals, families, and businesses in Wooster and throughout the nation, emphasizing a personalized approach to financial wellness. Seth Buckwalter , Vice President of Whitaker-Myers Insurance Agency, expressed immense pride and gratitude for this recognition. “This award is a testament to the hard work and dedication of our entire team, whose commitment to excellence drives us daily. It also honors the legacy of past owners and employees like Scott Allen and Scott Young whose vision and leadership laid the foundation for our success,” he said. John-Mark Young , President of Whitaker-Myers Wealth Managers, a nationally registered RIA , also took a moment to recognize the valuable partnership with Dave Ramsey and Ramsey Solutions , noting that, as a National SmartVestor Pro, Whitaker-Myers Wealth Managers has been able to reach more clients and serve them with the same level of integrity and transparency that Ramsey Solutions advocates. “We’re incredibly grateful to Dave Ramsey and the Ramsey Solutions team for believing in us and allowing us to represent them locally in Wooster and throughout much of this great country. Their support has been invaluable in helping us expand our impact and deepen our relationship with clients across our communities.” As Whitaker-Myers Group celebrates this accomplishment, they remain focused on their mission to provide exceptional service while supporting the Wooster community and many of the communities with which they operate. With this award, Whitaker-Myers Group solidifies its place as a vital, community-oriented institution poised to serve future generations.

I’ve inherited an IRA… now what do I do? Inherited IRAs can seem overwhelming when the time comes to inherit one. It seems self-explanatory when you are first listed as a beneficiary of an IRA. Upon the unfortunate passing of the owner, you inherit part or all of the IRA (depending on how many beneficiaries are listed.)   However, the part that gets many people confused is the moment that they are notified they are inheriting the IRA. When the rubber hits the road, and you are presented with a set of rules that come with inheriting an IRA, it can seem quite complicated. The best way to organize these rules is with two buckets: Spousal Beneficiary and Non-Spousal Beneficiary.   Can I roll this into my personal IRA? This question is commonly asked or just assumed by many individuals. The answer is dependent on those two buckets mentioned. Are you a spousal beneficiary  or a non-spousal beneficiary ?   Spousal Beneficiary If the decedent was your spouse, you can rollover the inherited IRA dollars into your personal IRA. This allows you to comingle those dollars into an existing IRA and treat those funds as your own. This gives the benefit of delaying required minimum distributions (RMDs)  until you turn age 73. You can also keep it in the inherited IRA and be subject to those RMD rules (generally, you must liquidate the entire IRA by the end of the 10th year following the original account holder’s death.) Having these options as a spouse offers flexibility in how you want to liquidate the IRA to ensure you are tax efficient as possible.   Non-Spousal Beneficiary If you are a non-spousal beneficiary, you must open an inherited IRA. This is a separate IRA that is exclusive for those inherited dollars. You can invest in this inherited account as you wish as it is sheltered in the IRA, meaning you will not recognize any gains by selling and buying within the account. Any distributions that are made from an inherited IRA are taxed as ordinary income.   This leads to the 2nd option for non-spousal beneficiaries, taking a lump-sum distribution. Lump-sum distributions can have significant tax implications as the beneficiary recognizes the distribution as taxable income. In specific circumstances, some beneficiaries may prefer a lump-sum distribution if the inherited IRA is small, and they could use the money to put on their mortgage or other loan payments. It is always important to contact your financial advisor  and CPA  before taking a lump-sum to ensure that you will not incur a tax burden from the distribution.   Conclusion Inherited IRAs can be complicated, but the first step is accessing your options for where and how you can move the funds. Visualizing which “bucket” you fall into can offer guidance on the processes available. Contact your financial advisor if you are expecting to inherit an IRA. They can help apply the various, more complex rules to your situation to ensure you do what is best for you financially.