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.

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.

In the world of personal finance, effectively managing debt is essential for achieving long-term financial stability. One often overlooked strategy is making principal-only payments on loans. Understanding this approach is increasingly important as individuals seek to minimize interest costs and accelerate repayment.   This article explores the advantages of principal-only payments, their potential impact on your financial journey, and key considerations for implementation. Whether you're tackling a mortgage, student loan, or other debt, this method could be transformative.   By making principal-only payments, you can save thousands in interest over the life of a loan. If you find yourself with extra cash while budgeting each month, consider directing that surplus toward your loans. This proactive strategy can help you pay off debt faster and pave the way to financial freedom.   Steps to Take Before Making Payments Before proceeding, confirm that your lending institution accepts principal-only payments and check for any early payoff penalties. The last thing you want is to have to owe more on something because you made something off early.   Loan Schedules to Consider If you receive a loan amortization  schedule at signing, you can see how much of each payment goes toward interest and the principal. If you didn't receive one, you can use an Amortization Calculator  to create a tailored schedule.   For example, with a $200,000 mortgage over 15 years ( Ramsey Solutions  recommendation) at a 6% interest rate and no extra payments, you'd pay approximately $103,788.46 in interest. Adding an additional $165 per month to principal payments could shorten the loan term by two years and save $15,534.28 in interest. Imagine the savings with even larger principal payments!   Loans That Benefit from Principal-Only Payments Several types of loans can benefit from principal-only payments: Mortgages: Reducing the principal on your mortgage can significantly decrease interest payments and help you pay it off faster. Saving you literally time and money. Student Loans: Extra principal payments, reducing overall interest, and shortening repayment periods can benefit both federal and private student loans. Auto Loans: Principal-only payments on auto loans can lower the total interest paid, allowing you to own your vehicle outright sooner. Personal Loans: Directing extra funds to the principal can save on interest and improve your credit score by lowering your debt-to-income ratio. Home Equity Loans: Applying extra payments to home equity loans can expedite debt reduction and save on interest. Credit Card Debt: Credit cards typically carry higher interest rates, but principal-only payments can reduce the balance and minimize interest charges. Business Loans: Paying down the principal on business loans can improve cash flow and free up funds for reinvestment. By making principal-only payments on these loans, borrowers can take significant steps toward financial freedom and reduce their overall debt burden.   How to Set Up Principal-Only Payments Setting up principal-only payments can vary by lender, but here are the general steps to follow: Review Loan Terms: Check your loan agreement for policies regarding extra payments, as some lenders may have specific guidelines. Contact Your Lender: Reach out to your lender’s customer service to inquire about the process for making principal-only payments. Specify Payment Allocation: Clearly indicate that you want extra amounts to go toward the principal when making a payment, either through a designated form or online portal. Use the Right Payment Method: Depending on the lender, you can often make principal-only payments through online banking, by phone, or by mailing a check. Confirm Payment Application: After making the payment, verify with your lender that it was applied to the principal as requested. Keep Records: Maintain documentation of all payments and any correspondence regarding principal-only payments to track your progress. Set Up Future Payments: If you plan to make principal-only payments regularly, consider automating transfers or setting reminders. By following these steps, you can effectively set up and manage principal-only payments on your loans.   Incorporating Principal-Only Payments with the Debt Snowball Method Integrating principal-only payments into the debt snowball method  can significantly enhance your debt repayment strategy. Here’s how: L ist Your Debts: Organize your debts from smallest to largest remaining balance, focusing on first paying off the smallest remaining balance. Make Minimum Payments: Continue making minimum payments on all debts except the smallest. Identify Extra Funds: Look for extra cash in your budget to allocate toward debt repayment. This is where principal-only payments come in. Contact Your Lender: For the debt you’re focusing on to pay off early, contact your lender to set up principal-only payments. Make Extra Payments: Direct your extra cash toward the smallest debt, ensuring those payments are designated as principal-only. Celebrate Small Wins: Once a debt is paid off, celebrate your progress to stay motivated. Move to the Next Debt: Apply the amount you were paying on the first debt to the next smallest debt, along with any principal-only payments. Repeat the Process: Continue this strategy, focusing on one debt at a time while incorporating principal-only payments. By tying principal-only payments into the debt snowball method, you can accelerate your journey to financial freedom, save on interest costs, and enjoy the satisfaction of eliminating debts one by one.   Conclusion Incorporating principal-only payments into your debt repayment strategy can be a powerful tool for achieving financial freedom. By focusing on reducing the principal balance of your smallest debts first, you save on interest and gain momentum and motivation as you accomplish each small victory. As you eliminate debts one by one, the impact of your principal-only payments compounds, allowing you to tackle larger debts more effectively.   Working with one of our financial advisors  or our financial coach  here at Whitaker-Myers Wealth Managers  can further enhance this process. They can provide personalized guidance, answer any questions, and help you develop a tailored debt payoff plan that aligns with your financial goals. With their expertise, you can navigate the complexities of your loans, optimize your payment strategies, and stay on track toward a more secure financial future. You can transform your financial landscape with discipline and dedication and pave the way for lasting stability.

Moving our intentionality discussion further, think about this - intentionality without purpose is essentially misdirection. As discussed in the previous post ( read Part 2 of this series ), a farmer can take care of their land to the best of their ability, but without planting a seed, nothing will grow. If the farmer’s end goal is to harvest crops, they should not only plant the seeds, but they need to plant the right kind of seeds. I can’t expect to reap corn when I plant strawberries. It may be a fun surprise, but it wouldn’t align with my end goals and expectations.   Define your why I love this saying, which I’ve heard on the Dave Ramsey  network many times: “If your why doesn’t make you cry, find a different why.” The saying is fairly simple but has much depth that can be explored.   The first line pulls at the passion strings. If your core values and beliefs do not embed the reason you are proceeding with an action or decision, the end result will likely reflect it. The second line realizes this and highlights that there are options to explore.  Find a different WHY. Our core values define what we believe and seed our WHY. Thus, our core values and why are our actions or intentions aligned and need to align with our goals.  I like looking at this from a motivational perspective, specifically intrinsic motivation and extrinsic motivation.   What Motivates You? Our motivation and goals change as we progress in our years, careers, and life journey. Early in my career, I wanted to find the most logical (potentially fastest) way to make six figures, and my focus was 100% on that goal. As I aged, I found that making money was great, but there are more important values I have in my life. So, I split my focus into 50% monetary growth and 50% value/fulfillment. Not to say I’m old, but now, I’m significantly more focused on fulfillment than monetary gain.   In one of my previous roles at a large hospital enterprise, one project I worked on was optimizing operations within a specific department. One task that was assigned by senior leadership was to increase patient visits without increasing our resource/headcount. As we dug through it, one of our solutions was to find various motivation factors for clinical staff. Pizza party, anyone? Maybe a team bonding outing at Top Golf? Sure, but we found that we would hit a roadblock quickly. We hit a roadblock even when we offered additional financial incentives, so more work = more pay. It became apparent that these extrinsic motivators only go so far. They build momentum for a very short period, then fall back to where it was beforehand. So then what?   Our focus shifted. We shifted to intrinsic motivation. What motivated our team? We found clearly that some found those other motivators ‘lame’ or a ‘waste of time’ or, more importantly, non-value add. So, how do we then focus on the intrinsic motivators? Luckily for me, this was healthcare. In healthcare, the majority of clinicians/staff are there because they want to give back and help improve the lives of those who come to their clinic/office/hospital. We focused on improving the interactions with patients, specifically improving time with patients and improving patient outcomes. This resonated most with the providers; our patient satisfaction scores went through the roof. It also accomplished our task not only in the short term but longitudinally as well.   Any why, Any How Friedrich Nietzsche said, “He who has a why to live can bear almost any How.” As discussed in this post, intentionality begins with understanding your core values, motivation, and goals. Intentionality is the strategic or tactical action to get to those goals. Though I would love to have a great infographic that shows this progress, from my research, I’ve found that this pathway is almost never linear.  The weaves and turns that come on our path continue to value or devalue our current goals. Our motivations change, life goals change, and focused intentionality changes. We’ll discuss the emotional components of intentionality in the next post. I hope you’re following along on the journey!   If you are on a financial journey and have questions about end goals, be sure to discuss these with your financial advisor . These goals can range from creating an emergency fund, paying off debt, or saving for retirement. Our team at Whitaker-Myers Wealth Managers  is there to help you through any part of the journey.

We are thrilled to announce that Grant Jennings has joined Whitaker-Myers Wealth Managers as a Financial Advisor in our Cincinnati, Ohio, office. Grant brings with him an impressive track record of nearly 17 years at Fidelity Investments, where he served as a Director, Retirement Planner and Retirement Relationship Manager. His extensive experience in helping individuals and families plan for their financial futures makes him a valuable addition to our team. Grant holds the prestigious Certified Financial Planner™ (CFP®) designation, which distinguishes professionals who have met rigorous education, training, and ethical standards. As a CFP®, Grant is well-equipped to provide comprehensive financial planning services, guiding clients through essential areas like retirement, investment strategies, tax planning, estate planning, and more. His holistic approach ensures that clients can build a solid financial foundation to achieve both short-term and long-term goals. President of Whitaker-Myers Wealth Managers, John-Mark Young, said about Grant, "The quality of any firm is reflected in the quality of the people at the firm. Our team is made up of people who continually amaze me with their dedication and selfless service to their clients, communities, and families. In Grant, we continue that trend of high-character thoroughbreds, as my friend Dave Ramsey refers to them. On a personal note, Grant is married to his wonderful wife, Lindsey, a dentist in Southern Ohio. Together, they are raising three beautiful children. Family is at the heart of Grant’s personal life, and this focus on family translates into his professional life as well, where he helps his clients secure financial futures for themselves and their loved ones. In his new role with Whitaker-Myers, Grant will be working closely with Dave Ramsey clients in Cincinnati and Dayton, Ohio along with Lexington, Kentucky. His expertise and alignment with the Ramsey philosophy make him the perfect fit for clients seeking financial peace and guidance. We are excited to see Grant bring his dedication, knowledge, and client-first approach to these communities, where his impact will be significant. We are truly excited to have Grant Jennings join our team at Whitaker-Myers Wealth Managers. We invite you to join us in welcoming him and look forward to the positive impact he will have on both our team and our clients. Grant can be reached at gjennings@whitakerwealth.com .

For most companies, the 4th quarter of the year is an essential time for registering for benefits.  According to the Bureau of Labor Statistics June data ,  benefits comprise 30% of a civilian employee’s total compensation.  The remaining 70% were wages.  For state and local government workers, benefits represented 38%.  So, when you enroll in your benefits in the 4th quarter, make sure you’re making thoughtful decisions about what you’re selecting and, if appropriate, consult your financial advisor.    When reviewing your benefits for the upcoming year, consider what benefit options have changed and what have stayed the same.  Contact your company’s benefits team/coordinator if you have questions about the plan.  Just because you chose one benefit option for the current year doesn’t necessarily mean having the same benefit the following year makes sense.  For example, if you have a group legal plan, you may have the option to enroll for one year to have a Will or Trust completed and then unenroll the following year.   Let’s walk through some popular benefits options you will likely have to choose from.   Health Insurance This is likely the most significant deduction in your benefits (unless you have an employer that covers all employees and their family's medical premiums).  You will want to be sure to evaluate the options carefully.  Some popular plans are a Health Maintenance Organization (HMO) and a PPO (Preferred Provider Organization).  Here’s a site comparing the two .    At a high level, H ealth maintenance organizations (HMOs)  have a network of doctors, hospitals, and other healthcare providers who provide their services for a specific payment, which allows the HMO to maintain costs for its members. A referral is required.  Cost and choice are the two features that set HMOS apart from other healthcare plans.    Preferred provider organizations (PPOs)  offer a network of healthcare providers for your medical care at a specific rate. Unlike HMO, a PPO allows you to receive care from any healthcare provider—in or out of your network.   Health Savings Accounts (HSA)  are available with a high-deductible health plan (HDHP). The linked article written by one of our team members does an excellent job of explaining the basics.   Flexible Spending Accounts (FSA)  are a great option if you don’t have an HDHP.  With this type of account, be sure to use the funds: by the end of the “grace period,” typically 2.5 months following the end of the plan year or spend your account below the annual carryover amount, which is $640 for 2024 and likely to Health Equity offers a vast list of Qualified Medical Expenses (QME)  that you can use to ensure you spend any remaining dollars.   Dental Insurance These plans vary quite a bit by employer.  Below is what a   typical plan  covers.    100% of routine preventive and diagnostic care such as cleanings and exams. 80% of basic procedures, such as fillings, root canals, and tooth extractions. 50% of primary services such as crowns, bridges, and implants.   If you need orthodontia/denture work done, asking for a couple of referrals from your dentist is helpful to understand different providers in your area and compare services and prices.  These expenses can be hundreds to thousands of dollars.  For any dental/orthodontia work your plan doesn’t cover, you should discuss with your advisor a plan of how to cover these expenses with your pre-tax Flexible Spending Account (FSA) or Health Savings Account (HSA).   Vision Insurance If you carry vision insurance and your plan offers a glasses/contacts allowance, ensure you maximize them yearly.  If you don’t need new glasses or contacts, you will want to understand what your vision covers to see if it’s necessary to keep every year.   Short- and Long-Term Disability  Your employer can sometimes pay for these.  If your company pays for it, great, let your advisor know.  You should also inform your advisor if they don’t pay for it.  We generally don’t recommend short-term disability unless it’s free/very cheap.  Another team member wrote this article about Long Term Disability Insurance   and the benefits it can provide you and your family. We also have a Disability Insurance Specialist   on our team. If you would like a quote, contact your advisor to discuss how this can fit into your financial plan.   Life Insurance Life insurance purchased through work is generally Group Term Insurance, similar to Term Insurance you would buy individually.  We recommend purchasing it outside of your employer if you get sick and have to leave your employer, and it’s not transferrable.  Here’s an article that gives further insight into Term Life Insurance .   Dependent Care Flexible Spending Account Dependent Care Flexible Spending or DCFSA accounts can be an excellent way for employees paying for care for children under 13, a disabled spouse, or an older parent in Eldercare to save on taxes.  If this is you, visit this site here to learn more .   Legal Plan If your company offers a legal services plan and can have a Will/Trust completed, this could be a great way to set one up for a significant discount. Usually, these would require an estate planning attorney to set them up.  You could enroll for the benefit one year and then not the next.  You should clarify what services the group legal plan covers and if a Will/Trust is part of them.  If you’ve been putting it off like most Americans, talk to   your Financial Advisor  today about establishing one through one of our partners.   Employer-Sponsored Retirement Plan Whether you have a 401(k), 403(b), 457(b), or a small business retirement plan, you should have had this discussion on the features of your plan.  It may require your advisor to review your Summary Plan Description (SPD) or call the plan custodian (the company through which the investments are managed) to obtain the SPD to understand the features.  If you need help managing your employer’s retirement plan, you should talk to your advisor because at Whitaker-Myers Wealth Managers, we are uniquely qualified to help you manage your current 401(k) or other employer plan.   You’re generally always able to change the amount contributed to your plan, whether at a $ or % level.  Most employers allow you to choose a separate contribution amount if you receive any bonus compensation.    You may want to be careful not to max out your 401(k) early because it could cost you the employer match if there’s no true-up provision for the plan .  If you’ve left your employer ,  you should notify your advisor to discuss your 401(k) options.  All these reasons are why you should consult your retirement contribution strategy with your financial advisor.   Tuition Reimbursement & Professional Development Many companies offer a benefit to partially or fully pay for you to get further education, whether a degree through a school, a certification program, or just a professional development course.  This could be a better return on investment than any mutual fund could ever return, so be sure you know what benefits your employer offers. Long Term Care Long Term Care  is not as commonly offered by employers, but the linked article can provide some good considerations for funding options.   Parking/Commuter Benefits If you have to pay for transportation via public transportation or pay for parking, hopefully, your employer offers commuter benefits.  This is a way to save tax-free up to the IRS 2024 limit of $315 (projected to be $325 for 2025) per month to pay for these expenses. Even if you work primarily from home and only go into the office a few days a week, this is another excellent way to save on taxes.  Here’s a site to check out if you have more questions .   The benefit of talking Benefits with an Advisor This is not a complete list of benefits employers offer, but it is some of the major ones typically offered.  As you build out your financial plan, you should discuss how to best leverage your company’s benefits with your advisor, given that it’s around a 1/3 of most employee’s total compensation. If you do not have a financial advisor, one of our trusted team members  would love to set up a complimentary meeting to discuss things with them and help answer any questions you may have.

From conversations I’ve had, most investors have a firm grasp of why stocks move up and down (because of market trends, economy, or supply and demand), but I don’t know if the same can be said for the bond market. Stocks are fairly simple: You buy a share of said company and make money if the company does well and when they pay dividends. Bond performance can be a bit more tricky.   In this week’s article, I hope to simplify the bond market to help readers understand exactly what they are investing in.   I Owe You Bonds are simply “I owe you’s” that entities pay back to investors. Similar to CDs that you would get at a bank. Like a personal credit rating, any institution that borrows money is rated by a rating agency; these ratings range from AAA, the highest rating, to CCC, the lowest rating. Anything below BBB is considered below investment grade. Just like your personal credit rating, if you are lending money to an institution with a lower credit rating, you will be compensated by a higher coupon or interest payment. Pretty simple so far. Generally speaking, the higher the credit quality, the safer the bond, and the lower the interest payment to investors.   Timing and Scenarios The next nuance is bond maturity or duration. Bond maturity and duration are not the same thing, but they are similar. So, for this example, I will just be talking about bond maturity.   Generally, the longer the maturity, the higher the bond's interest rate. This makes sense when considering things in mortgage terms: a 15-year mortgage has a lower interest payment than a 30-year mortgage. The thought behind this is that if I lend money to said company (i.e., Apple) for a year, and the bond matures, I get my principal back. This is a pretty safe bet, as opposed to lending them my money for 30 years. I would still receive annual interest payments and get my principal bank in 30 years, but the thought is that I would want to get paid extra for the risk that I took if Apple goes bankrupt and I never get my principal back. This is a much more likely scenario over a 30-year period than a 1-year period.    So, the longer maturity of a bond the riskier the bonds, and the more sensitive to interest rate moves it is. If your 30-year bond is paying 3% and new bonds are paying 5%, you need to sell it. Let's say you bought it for a face value of $1,000. You will have to discount your bond steeply to account for the lack of interest payments over the next 30 years vs the newer 5% bond. Nobody would want to pay you the total $1,000 when they could go get another bond that pays 5%. This was the phenomenon in 2022 when interest rates moved significantly higher in a short period of time; the market had to rerate existing bonds to account for the lack of interest.   Economic Conditions Influences Credit quality also performs differently in distressed markets. When economic conditions deteriorate, high-quality government bonds generally perform well. This makes sense because investors rotate out of stocks, which are economically sensitive, and into government bonds, which the US government backs. The opposite of “junk” or lower-than-investment grade quality bonds is true. This also makes sense because overleveraged companies with poor credit are typically the first to default as economic conditions deteriorate when volatility spikes and the stock market drops, like in 2008 and 2020 during COVID-19, junk bonds don’t protect investors much as their price action usually acts more like stocks.   The high yield index spread measures the difference in interest between investment and junk bonds, and as the chart below shows, it widens during crises. That said, make sure you understand what type of bonds you invest in, whether in a 401k or any other investment account(s). Be sure that the fund or individual bond achieves the proper diversification or income goal that you hope it will. As always, contact your financial advisor if you have questions about bonds or need help with 401k investments. The team of financial advisors  at Whitaker-Myers Wealth Managers  is ready to help answer questions and create a financial plan to help you achieve your financial goals.

Picking up from where we left off from where we left off with Part 1 of this series , it’s probably important to discuss intentionality in the context of investing, right? The logical thought is that the more intentional and focused I am with my money today, the more that my money will work for me tomorrow. Dave Ramsey  says it nearly every day, “live like no one else today, so you can live and give like no one else tomorrow.” The foundation of intentionality is not only a psychological construct but also an action and reaction component that determines if the intention is positive and yields the desired outcome.   Mud is fun to play with, but it won’t grow anything without seeds How do I reach my end goal if I’m not intentional? Most of you have likely heard the phrase that a farmer who plants cabbage cannot expect to grow corn. Another that states the farmer who waters the soil every day, makes sure to clean the weeds, and always watches for sunlight on his farm only has muddy soil if he doesn’t plant any seeds. Intentionality takes not only the reasonable steps but also the proper steps forward to bring success or the desired outcome. The Social Cognitive Science Research Center at Brown University identified five key components that makeup people’s concept of intentionality, and thus, an action is intentional if:   1.     There is a desire for an outcome 2.     A belief that the action will lead to the outcome 3.     An intention/desire to perform the action 4.     Skill to perform the action 5.     Awareness while performing it   You can read the study here: Intentionality | Malle Lab ( brown.edu )   So, intentionality is not only the longing for a specific outcome or action to achieve it, but intentionality requires the right action at the right time to reach the end goal. There is no way that we all have the proper skill set to accomplish every goal we set. No matter how hard I try, I can never learn everything in the world. So, what do we do? As stated in Proverbs 19:20-21, “Listen to advice and accept instruction, that you may gain wisdom in the future. Many are the plans in the mind of man, but it is the purpose of the Lord that will stand”. We seek advice from our mentors, pastors, teachers, supervisors, family, friends, and others. We learn from each other and base our growth, trajectory, and decisions based off of what we learn. This is an act of intentionality, and incorporating these learnings continues to build our intentionality mindset.   Desire vs Intentionality In the research shared above, the team at Brown University further defines desire vs. intentionality. The desire I have to accomplish a goal versus the intentional steps I’ve taken to achieve that dream should be defined clearly. Their research segmented desires as wants, as any ‘conceivable state’ and is the input function for the goal. On the other hand, the intention that one has is the ‘actionable state’ and the output function for that goal. Remember that neither addresses the capability or capacity to accomplish the objective.   Too academic? Unfortunately (or fortunately), we don’t stop there. This week, I hope you take away that the foundation of an intention, intentionality, or the intentional mindset is a desire for an outcome, belief the action will lead to the result, intention to perform the required action, skillset to perform it, and the awareness (right or wrong) while performing the action.   To help reach our financial goals, we need the support of our trusted financial advisors  to get us to the end goal because we don’t know everything, and we should take it! We’ll dive deeper into creating an intentional mindset in upcoming articles, so stay tuned!