What should I do if my identity is stolen? Finding out that you are a victim of identity theft is very unnerving. You start having millions of questions, the first of which is likely, “What should I do now?” If you have Identity Theft Protection, the first step is to file a claim with that company. If you don’t have identity theft protection, it might be worth calling a company to see if they can help you if you sign up now. Dave Ramsey recommends Zander Insurance for identity theft insurance, which I use personally. If you are a victim of identity theft and file a claim with them, they assign a case worker to help you with the next steps. I will walk through the steps I took personally during a run-in with possible identity theft. Nine Things to Do if Your Identity is Stolen Credit Freeze If you don’t already have a credit freeze on all 3 of the credit bureaus, it would be recommended to call and/or go online to add a credit freeze to each of them separately. If you have a freeze on your credit, this should eliminate the ability for someone to take out loans, credit cards, etc., in your name. Fraud Alert As an added layer of security on your credit – you can add a fraud alert on all three credit bureaus. This means they will call the phone number on file in the alert to confirm identity instead of the phone number on the submitted application. Put a freeze on ChexSystems ChexSystems is the system that most banks use when opening an account, so this layer of security should help protect you from having bank accounts opened in your name. Add extra security to your bank accounts Call your bank where your checking and savings are, let them know what happened, and see how you can add an extra password or voice ID to access your accounts. Add extra security to your investment accounts This is similar to your bank but for your investments. Call the Custodian that holds your 401(k) and/or IRAs and add an additional password or voice ID to access your accounts. Change ALL of your passwords Especially for your online banking, the portal you use to view your 401(k) and/or IRAs, and your email. Run your credit report You need to ensure there is nothing on there that shouldn’t be. If so – be sure to contact the company and dispute it. Look at your online banking or bank statements You want to make sure there are no unusual transactions. Notify your Financial Advisor and CPA Knowing that you have had this happen would be important for anyone who helps you with your finances and financial planning. Knowledge is power As I mentioned, having a run-in with identity theft can be very scary, but it is helpful to know what actions you need to take to minimize the impact. The benefit of identity theft insurance is not only the monitoring they do to alert you if there is an unusual activity quickly. Having a case worker walk you through the above mentioned steps (and more if needed for your specific situation) is extremely valuable. If you have any questions specific to your financial needs, please get in touch with one of our Financial Coaches or Financial Advisors; they would be more than happy to help you.

On April 6th, 2023, Chris from Dallas, Texas (one of the SmartVestor Pro Markets Whitaker-Myers Wealth Managers serves) called Dave to ask, "Should I be concerned about the National Debt reaching 30 trillion dollars and how that should affect our personal financial strategy? Dave went on to tell this young man that for his entire career, the end of the world has been predicted (maybe sometimes even guaranteed), including books like Bankruptcy 1984, The Coming Economic Earthquake and books written by his friends about the end of the world because of Y2K. Dave reminded listeners and fans that these types of "scenarios" cannot and should not affect your investing because there will always be a reason to worry and fret. Our job as Smartvestor Pros is to educate you on these events and keep you invested in your goals. With that said, let's talk about the US Dollar. The U.S. dollar has been in the headlines due to an anticipated pause in Fed policy and concerns over the currency's place in the global financial system. However, to borrow Mark Twain's famous line, reports of the dollar's death are greatly exaggerated. While the role of the dollar has declined by some measures over the past two decades, fears of the dollar's demise are not new among investors and economists. What does the dollar's role mean for investors going forward? For many, the value of the U.S. dollar is viewed as a barometer of the country's importance on the global stage. It's been a century since the U.S. dollar overtook the British pound as the leading global currency. Many worry that the dollar could lose this status through poor U.S. policies or from the news last year in 2022 (that has only recently seemed to garner the attention of our clients) that Russia, China, and other BRICS countries have the desire to create a competing world currency. However, these concerns are not new and evolve with every economic cycle. The dollar remains strong but has weakened over the past six months In the 1980s, it was feared that the yen would overtake the dollar as the Japanese economy boomed. Since the 2000s, it has been feared that the euro or the Chinese renminbi would become a new global reserve currency. More recently, some expected cryptocurrencies such as Bitcoin to quickly upend the dollar-based system. Despite numerous challenges to the dollar and concerns over U.S. fiscal and monetary policies, none of these scenarios have yet occurred. While the dollar's importance should not be taken for granted, it's important to have a broader perspective on why it remains the world's reserve currency. The value of any major currency reflects a wide array of global economic trends and, as a medium of exchange, permeates every part of the global economy. The dollar plays a central role in this dynamic. According to the IMF, the dollar made up 58% of the world's currency reserves held by central banks at the end of 2022. The next largest share was held by the euro at 20%, followed by the yen and British pound at 6% and 5%, respectively. The Chinese renminbi's trails far behind at only 2.7%. The global payments numbers tell a similar story. According to SWIFT, a major global payments network, the dollar was used in 41% of transactions. This compares to the euro, pound, and yen with 36%, 7% and 3%, respectively. Only 2.2% of SWIFT transactions used the renminbi. The fact that the dollar is central to global trade, the price of oil is denominated in dollars, and many foreign currencies are pegged to the dollar, have helped to preserve its status. The dollar reached parity with the Euro last year These numbers put into perspective the latest headlines around several emerging market countries, known collectively as the BRICS nations, that plan to increase competition with the dollar. These countries, of which China is the largest, established the Shanghai-based New Development Bank in 2014 as an alternative to the World Bank and the IMF. While this may help reduce these countries' reliance on the dollar in some areas of trade and in foreign debt, it does not solve the underlying need for a currency that is stable and trusted globally. A case in point is that during times of stress, investors often flock to the dollar as a safe haven asset. Even as inflation began to rise in 2021, which would normally weaken a currency, the dollar rallied due to the robust U.S. economic recovery compared to the rest of the world and the prudent tightening of monetary policy by the Fed. The dollar even reached parity with the euro last year for the first time since 2002. So, while the rise of China in the geopolitical and economic spheres should not be underestimated, this does not mean that the dollar will be supplanted overnight. While Americans do benefit from a trusted dollar, what's important is that the dollar is trusted globally because of the vibrancy and strength of the U.S. economy. After all, the dollar is not backed by gold but by the "full faith and credit" of the U.S. government. Thus, the dollar reflects expectations around the prudent management of the economy, geopolitical issues, inflation concerns, and many other factors. When it comes to investing, there are three key ways in which the value of the dollar will continue to impact portfolios, regardless of the role of the dollar. First, the importance of the dollar doesn't tell the whole story since having a currency that is too strong can be problematic if it makes U.S. goods and services more expensive to the rest of the world. In other words, a stronger dollar can make it more difficult for U.S. companies to compete abroad, reducing profitability. Around 2015, a surging U.S. dollar resulted in an "earnings recession," driven also by the fact that the share of international revenue for U.S. companies has increased over time. Thus, having the dollar at a sensible level is often better than a dollar that is too strong. Fortunately, the dollar has backed away from its recent peaks with the dollar index (DXY) declining from around 114 to 102 in recent months. A weaker dollar is a tailwind for international investments Second, just as a dollar that is too strong may not be ideal for global corporations, it can also act as a drag on foreign investment returns by U.S. investors. In general, currencies can add an additional layer of complexity to international investing that doesn't exist when buying and selling domestic stocks. When the dollar strengthens, international investments lose value for dollar-based investors since they are made in foreign currencies which become weaker. This dynamic hurt foreign returns last year alongside many other challenges. Fortunately, it's the direction and not the level that matters, and the weakening dollar has helped to push international returns higher this year. If you have watched my weekly video series, "What We Learned in the Markets this Week," you've probably noticed the MSCI EAFE, which is an index of developed market stocks excluding the US, has generated a total return of 11.6% in dollar terms so far this year vs 7.56% for the S&P 500 (Growth / Growth & Income) and 1.70% for the Russell 2000 (Aggressive Growth). Third, fiat currencies - i.e., currencies not backed by gold - are only trusted to the extent that their countries maintain appropriate fiscal and monetary policies. Thus, an important driver of last year's dollar rally was the Fed's rate hikes in response to inflation alongside the shrinking money supply. Conversely, the expected pause in Fed rate hikes later this year is one important reason the dollar may be weaker in the coming months. This could help support corporate profitability as well as investor returns. The bottom line? As Dave told Chris, there will always be concerns around the dollar's place in the global economy and/or a myriad of other economic (US based or world based) scenarios to worry about. Investors should maintain a broader perspective on why the dollar plays such an important role and focus instead on how the dollar impacts the economy and returns. Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

If The Financial Aid Awards Are Lacking In April, parents of high school seniors are looking at their financial aid letters. It's a stormy time for many families. Parents are trying to figure out how to bridge the gap between the school's sticker price, and the amount of aid their student receives. The award letters are inconsistent and hard to decipher. Over the past decade, seismic shifts have occurred in the number of students applying to college. Demographically, there are fewer of them. Economically, fewer can afford going into the debt it would take to enroll. And there is also the fact that many students are choosing work over college than ever before. This means that many colleges are very nervous that they may not get enough "heads in the beds" come May 1st. It also means that at many private colleges parents and students have the "power" of the consumer. Power to NEGOTIATE. It's important not to be intimidated by what the college tells you to pay. The closer May 1st gets, the more fluid the college's position may become, making it likely your student can be awarded additional funding. It's almost there for the asking. In fact, your student may already have received a note from a college with more scholarships or grants. If they didn't, have your student contact the college and ask them for help. The phrase, "if you don't ask you don't get" is real. But some colleges-- especially private colleges-- are waiting for your student to reach out and ask for help, which is code for more free money. As I just wrote, some will reach out to you first, but don't wait for them. Maybe this will give you more confidence: everyone knows what a loss leader is. Long ago colleges figured out that to get a student to attend, they may have to lose a little revenue to get it back, and then some in the student's sophomore, junior and senior years. Don't feel bad or intimidated by asking for more funding. In reality, what you are asking for is a "tuition discount". These tuition discounts are already part of the formula they use to attract students like yours. They are already baked into the cake, so to speak. One last thing: you won't get another bite at the apple. The first award package will be the best your student will ever get. So, get as much as you can now or forever hold your peace. If you have a high school junior, NOW is the time to start putting together a list of colleges that your student will apply to next year. The schools that are on this list will determine outcome for your student and your finances! Putting the right schools in the mix is KEY to getting the best possible deal for your student. Your list must include schools that will offer your student generous discounts to attend. These schools' offers can be used as bargaining chips to induce favored schools to sweeten the pot. I can help you put the right list of schools together. This one college planning technique may save you tens of thousands of dollars on your college costs! Contact our team of Financial Advisors to schedule a college planning meeting and get started! Avoiding Student Debt: Not Easy, But Doable Student debt is like the weather-- everyone talks about it, but nobody does anything about it. If you really want your student to graduate debt-free, here are some gutsy suggestions: 1. College coursework in high school If your student is off to college in the Fall, then this ship has sailed. But for high school students, this is a great way to earn college credits. 2. "Test out" of classes (general courses) Some colleges let students test out of general education courses if they prove they know the material well. 3. The CLEP or College Level Examination Program Some colleges are more willing to let students test out of all sorts of courses if they prove they know the material well. And the selection of courses are many and varied. 4. Take an extra class per semester Years ago, students studied 2-3 hours per credit per week. According to one survey conducted by the National Survey of Student Engagement, most college students spend an average of 10-13 hours/week studying, or less than 2 hours/day-- less than half of what is expected. Only about 11% of students spend more than 25 hours/per week on schoolwork. If they took one extra class per semester, they would spend 15 hours per week studying. That can take 2/3 of a year off the bill! 5. Take an online class during Intersessions. Online classes during breaks can be very inexpensive compared to the college your student attends. For example, a single course at UMass Boston Online costs between $200-1,700. 6. Summer classes Summer school, while no picnic, is a great way to save money and avoid debt. And studying while catching some rays doesn't sound so terrible. None of these loan-eliminating ideas are a horrible burden. Not compared to the burden of $350/month for 10 or 20 years. And there is still time for students to hang out with fellow students and discuss Kant, Camus, and Sartre-- we can always dream can't we? High School Juniors: More States Require The FAFSA to Graduate High School Eight states, including Alabama, California, Colorado, Illinois, Louisiana, New Hampshire, Texas, and now Indiana, make it mandatory for high school seniors to complete the Free Application for Federal Student Aid (FAFSA). There are many good reasons to file the FAFSA, even if you think you won't qualify for financial aid. If you want to receive federal student and parent loans, you have to file the FAFSA. Colleges use the FAFSA to determine which students qualify for both need-based aid AND merit scholarships. Do not leave free money on the table! Some schools consider filing the FAFSA as a strong sign of intent from the student. In some cases, it increases the likelihood of college acceptance. You are showing the school that you are behind your student's decision to attend college. Filing for student aid does not hurt your student's chance of acceptance. Future doctors, lawyers, engineers, etc. may become contributing alumni. Colleges are businesses. They think about these things. Whether you make $25K a year or $250K a year, the only way to find out if you are eligible for financial aid is to apply. Finally, if a tragic event occurred that caused a change in circumstance, having a FAFSA on file allows a school to respond quickly to that change. The 2024-2025 FAFSA is going to change. The Expected Family Contribution (EFC) will no longer determine the minimum amount of money parents will pay at any college. The EFC is being replaced by the Student Aid Index (SAI). Not only will the number of questions decrease, which is good, the reduction of parents' contribution for more than one student in college at the same time go away, which is obviously wrong. Right now, small businesses are exempt from today's EFC. However, the SAI is going to include the value of all businesses. Obviously, this is a very negative change for most parents of small businesses, especially if they run their business from a building that they own, like a convenience store. The good news is that there is a way to avoid having your business assessed. If you own and live on a family farm, you are also going to be penalized. For some reason, home equity isn't assessed, but a family farm is. At the moment, there is no way around this, but this is definitely grounds for appealing to exclude the family farm. It's a reasonable request. Why all these changes? While expanding access to those who can least afford college, these changes have always hurt middle to upper-middle-class college families. The good news is that you have time to figure this out. As of this writing, the 2024-2025 FAFSA will be delayed by at least two months. Now is the time to reach out for a discussion as to what can be done to avoid the financial negatives that are coming. Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures. Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner. Whitaker-Myers Wealth Managers is not giving tax, legal or accounting advice, consult a professional tax or legal representative if needed.

Portfolio Rebalancing Investors often diversify their portfolios to mitigate risk and increase their chances of long-term success. However, over time, the investments in a portfolio may shift, creating imbalances and potentially increasing risk. That is where portfolio rebalancing comes into play. Portfolio rebalancing is adjusting the composition of an investment portfolio to bring it back to its original asset allocation. This involves selling investments that have performed well and buying more underperforming ones. The goal is to restore the portfolio to its initial asset allocation or to a new, updated one that reflects the investor's current objectives and risk tolerance. Why rebalance a portfolio? There are several reasons why investors may want to rebalance their portfolios. First, as mentioned above, the natural tendency of investments to shift over time can lead to imbalances. For example, a stock that was initially a tiny percentage of the portfolio may grow in value and become a much more significant portion. This could create a situation where the portfolio is too heavily invested in one area, which can increase risk. Secondly, rebalancing can help investors stay on track with their long-term investment goals. It ensures their portfolio remains aligned with their risk tolerance and investment objectives. For example, if an investor's risk tolerance changes over time, rebalancing can help them adjust their portfolio accordingly. Finally, rebalancing can help investors take advantage of market fluctuations. Selling high-performing assets and buying underperforming ones can help investors capitalize on market trends and increase returns. How often should a portfolio be rebalanced? The frequency with which a portfolio should be rebalanced depends on the investor's goals and risk tolerance. Generally, it is recommended that investors rebalance their portfolios at least once a year to ensure that their asset allocation remains aligned with their objectives. However, depending on their circumstances, some investors may rebalance more frequently or less frequently. For example, a more conservative investor may want to rebalance more frequently to ensure that their portfolio does not become too heavily weighted in stocks. On the other hand, a more aggressive investor may choose to rebalance less frequently, allowing their portfolio to take advantage of market trends and potentially achieve higher returns. How to rebalance a portfolio The process of rebalancing a portfolio can be relatively simple. First, look at the portfolio’s current asset allocation and compare it to the target allocation. If the portfolio is out of balance, the investor must determine which assets to buy and which to sell. When selling assets in a taxable brokerage account, it is essential to consider the potential tax implications of any gains or losses. Selling investments that have appreciated significantly can trigger capital gains taxes, reducing the total return on the portfolio. Investors may consider selling depreciated assets or those in sectors or industries they no longer believe in. In retirement accounts like IRAs, investors do not need to worry about capital gains taxes from buy/sell transactions. Investors should consider their long-term investment goals and risk tolerance when buying assets. They should choose assets that align with their objectives, which will help bring the portfolio back into balance. Conclusion Portfolio rebalancing is an essential part of long-term investing. It helps investors mitigate risk, stay on track with their goals, and take advantage of market trends. While the frequency of rebalancing depends on the individual investor, it is essential to review the portfolio regularly and make adjustments as necessary. By doing so, investors can ensure that their portfolio remains aligned with their objectives, increasing their chances of long-term success. Your advisor at Whitaker-Myers Wealth Managers is committed to keeping your portfolio balanced and aligned with your goals and objectives. If you are not a current client, I encourage you to explore our website, YouTube page, and blog articles and contact one of our advisors to discuss how we can serve you. Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures. Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner. Whitaker-Myers Wealth Managers is not giving tax, legal or accounting advice, consult a professional tax or legal representative if needed.

When to go against the grain As the article title says, many clients must work to rewire their brains in a bear market. This isn’t easy for everyone to do, and the reason is simple…. Reactions tend to be caused by actions, whether because of the free-fall in the market or the market gaining 10% in a month. When many people see trends in the market, it is easy to go with the grain. But in this article, we will explore why sometimes it is better to go against the grain. Market on Sale For the last 14 months, the market has fallen. The market has gone from its all-time high in January 2022 to its lowest point in two years, back in October 2022. Since then, it has been deviating between 10% higher than that and back down to close to the October 2022 levels. So, all that is to say that the market is far from its all-time high, even after 14 months. For some, it can be tempting to want to jump ship when the market is down. Sometimes we receive calls from clientele wanting to pull their money and hold it into cash, for they do not know how much further the market can go. They start to feel a bit of panic. This is when I tell clients that even in the most significant financial crisis of our age, which happened in 2007 through 2009, the lowest the market ever got was down 40%. In October 2022, the market was down 25%. These current times do not echo catastrophe nearly the same way as 2007 through 2009. So, what does this mean? It means those who continue to contribute to their accounts and flood their extra cash into investments, and the market will only be that much more ahead of those who are not doing the same. While others are sitting on the sideline until they see the market improve, those who choose to invest and capture the market on sale will be that much more ahead. This is a crucial concept to understand. Going Against the Grain The decades-old adage of buy low, sell high seems to be a talking point for most people when discussing investments and timing in the market; however, people rarely abide by that elementary concept. And it is for these two simple reasons: what is low? And what is high? This is all the personal perception and opinion of each client. When discussing the stock market, we can think about buying low in percentages. If the market was at its all-time high in January 2022 and fell 5%, then you could be buying low. After all, as previously discussed, you would be getting a 5% sale in the market. On the other hand, many people may not feel that is low enough, and the market will go much lower. This is a fair point given that the market at one point this year had fallen to as low as -25%. However, there are always people who miss out on timing this because they never feel that it is the right time. Knowing how low the market needs to be in order to buy in and how high it needs to be in order to sell are always impossible questions to ask oneself at the time. No one knows the future, everyone’s timeline for their money is different, and everyone’s goals for their money are different. Therefore, buying low and selling high means something different for everyone. What does it mean for you? The power of speaking with your advisor As mentioned, everyone has different goals and timelines with their money, so it is important to speak to a Financial Advisor about your specific needs and goals. Please get in touch with one of the Financial Advisors here at Whitaker-Myers Wealth Managers; we would be happy to help you! Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures. Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner. Whitaker-Myers Wealth Managers is not giving tax, legal or accounting advice, consult a professional tax or legal representative if needed.

What do I do with extra cash? Much has changed in the last two years regarding interest rates and how it affects the money in my accounts. We are now in an environment where there is a real benefit to be made if you know where to look, both in a regular savings account or with interest-bearing investments. I want to review some options to get the most out of your hard-earned money. Where to look Big Banks The big banks still aren’t paying you; a JP Morgan Chase savings account is currently yielding .01%. This hasn’t changed in a while. Given the turbulence in the banking industry, Chase doesn’t need to offer a high-interest rate to attract customers. People are happy to be paid nothing for having their money at the largest bank in the US. If you are concerned about the recent volatility of the banking sector, then this is a good option for you. High Yields Savings Account The second option, and the one that I generally recommend for emergency savings, is a high-yield savings account. Citi bank offers a 3.85% interest rate on their high-yield savings account. On an emergency fund of 30k, you would be getting paid over $1,000 annually in interest. Not bad at all. Citi is the 4th largest bank in the US and, without a doubt, is systematically important, with 1.93 trillion in assets. All things considered, likely one of the safest places to have money. Bonds The third option for excess savings would be to look into US treasuries. US Treasuries are bonds that the treasury issues. They are backed by the full faith of the US government in principle and interest. Not FDIC insured, they do carry interest rate risk but can offer an even better rate of return if you are willing to hold the bonds to maturity. A current 6-month bond yields 4.6% annually. One year yields 4.3%. These rates are as of the writing of this article. Again, these bonds do carry interest rate risk. Meaning if interest rates increase and you need to sell the bond before it matures, you may be forced to sell at a discount that could eat into your profits or even lose some money. On the other hand, if interest rates go down, you could potentially make money on the sale before the bond's maturity. Money Market The Schwab Money Market, which has a current yield of 4.49%, might be something you want to consider putting part of your Emergency Fund in. You likely don’t want to put the entire amount of your emergency fund in there because it takes a few days to get the money out if you need it. So, having part of your emergency fund in high-yield savings at a local bank, as mentioned in option one above, and the remainder in the Schwab Money Market might make a lot of sense for you. Be sure to talk to your Financial Advisor to discuss the specifics of how this would work for you. Knowing your options If you are sitting on significant cash reserves and aren’t getting a competitive interest rate, I strongly encourage you to explore some of the available options. This is a relatively new phenomenon as we are exiting a low-interest rate environment that has lasted over a decade. If you would like to talk to one of our financial advisors and see what options would work best for you, schedule a meeting with one of our ten advisors today! Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures. Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner. Whitaker-Myers Wealth Managers is not giving tax, legal or accounting advice, consult a professional tax or legal representative if needed.

Buying a Home and HELOCs Being a SmartVestor Pro, and a general adviser to people around me, I have received a few questions over the last six months about buying a home. The other question I have received over that time is, “My house is paid off, but I have other debt; should I do a home equity line of credit?” We will discuss both below. Interest Rates & What it Means A lot of the news lately has been talking about rising interest rates. The federal reserve sets this rate, and the interest rate is the number in which banks and credit unions borrow and lend to each other. Of course, the banks and credit unions do not take on this interest rate themselves; they pass it along to the consumer. A year ago today, the average mortgage rate was 3.263%. For those who don’t understand what that means, that number represents the interest on top of the principal you still owe on your home. At this time last year, many people were still refinancing their homes, which means they captured the current interest rate by using the equity in their homes. This background is essential in understanding because interest rates today are nowhere near that. As of February 10, 2023, the interest rate is 6.61% - more than double a year ago. Buying a Home So, what does this mean? If you are looking to buy a home in the next year or so and it is not an immediate need, waiting until you hear that interest rates are lower or have fallen might be a good idea. This would likely keep you from spending hundreds of dollars extra per month. If you can help it, wait this out. On the other hand, there is an argument not to wait to buy a home. This argument is: you bite the bullet, pay the higher interest rate for as long as it takes for interest rates to come down, and refinance the home with the equity you’ve built, as I mentioned earlier. But this is all personal preference, and you should consult your financial professional before making this decision. Home Equity Line of Credit Lastly, a home equity line of credit (HELOC) allows you to take a certain amount of money from the equity you’ve built in your home and take on current interest rates to repay the home equity line of credit. Using a HELOC to pay off other debt can be tempting, but we, like Dave Ramsey, do not recommend doing this. This is because of a couple of reasons: If you default or misstep in any way on the HELOC, you could be putting your home at risk. When you consolidate debt, it tends to ‘feel’ like you did something about the debt when, in fact, you still have the debt and need to pay it off with gazelle intensity! In conclusion, knowing how this all works is important because sometimes people hear about interest rates but don’t fully know how it impacts things when it comes to buying a home or using the equity in your home. The power of speaking with your advisor As mentioned above, if you are considering buying a home and are trying to figure out what is right for you financially, I would be more than happy to help, as would any of the other Financial Advisors on our team. If you are looking for a way to pay down your debt, contact our Financial Coaches. Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures. Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner. Whitaker-Myers Wealth Managers is not giving tax, legal or accounting advice, consult a professional tax or legal representative if needed.

Why do you invest? Ok I get it... you probably invest because you're trying to retire at some point in your life or you'd like to make some major purchase in the future. But why are we putting money in the stock market? What's the benefit of investing in companies like Apple, Boeing, Google, Berkshire Hathaway or JPMorgan Chase? Considering that the Schwab Money Market is paying close to 4.4% today, why not just keep the money in there? The answer is the same reason why some of America's richest citizens are exactly that... the richest citizens. Let's start with Jeff Bezos; for nearly two decades his salary from Amazon was $81,840. Is that how he became one of America's richest men? Certainly not! The reason was this: he owned shares of a business (that he founded) that continued to grow in value over time. Controlling shares of companies (owning a business) is a common trend amongst the world's wealthiest individuals and families. And what a time to be alive because you get to put money into these publically available companies every two weeks through your 401(k) and Roth IRA. The richest family in America? The Waltons and half their wealth is in a publically traded company, that their patriarch, Sam Walton, founded called Wal-Mart. Starting a business is the single best way to get rich in America. The next best way? Piggybacking off founders like Jeff Bezo of Amazon, Sam Walton of Wal-Mart, Elon Musk of Tesla, SpaceX, and StarLink. And the reason those companies are worth more and more over time is that over time their earnings continue to grow. They grow because their top line (sales) get larger, they grow because they cut expense through efficiency, they grow because they as a company have investments that are adding income. Earnings are what drive the value of a stock. It's called cash-flow. You're buying the cash flow, current and future, of a company when you invest in them. Yes, sometimes you invest in a company that has an erroding cash flow, and it proves to be a bad investment. But on the aggregate the stock market is full of companies that are continuing to make more today than they made yesterday in cash-flow. Therefore with that introduction - let's answer the question of what is happening to earnings right now. If you listen to my weekly market video "What We Learning in the Markets The Week," we discussed how corporate earnings are a standstill right now. Why is that? While major stock market indices have rallied this year, investors continue to receive mixed signals from the economy. On the one hand, inflation is improving, which has allowed interest rates to stabilize at a lower level. On the other hand, last week's jobs report was a significant surprise to the upside, with 517,000 net new jobs created in January and the unemployment rate falling to 3.4%, the lowest in over 50 years. Although the inflation data suggest the Fed could slow or pause its rate hikes, the jobs data mean that they may need to keep their guard up. This uncertainty creates confusion as markets adjust to financial conditions. What should long-term investors focus on to stay invested toward their financial goals? The stock market follows earnings trends over years and decades Stock market investors don't directly invest in the economy. Instead, they are impacted by economic trends through the revenues and profits of the companies in which they invest. When the economy is growing rapidly and consumers are doing well, company sales tend to improve. When inflation is rising or the job market is competitive, costs may rise. At a macroeconomic level, the job of companies is to balance these opportunities and risks. Over long periods of time, the stock market tends to follow earnings trends, which in turn follow economic cycles. Given the importance of earnings, it's no surprise how much coverage there is of individual company earnings reports in the news and in the investment industry. However, for long-term investors, the aggregate earnings picture for the S&P 500 matters much more. At the moment, about 50% of S&P 500 companies have reported fourth quarter earnings. This was a quarter during which costs were elevated compared to the year before due to inflation and rising wages, while consumer spending was weakening and there were fears of an upcoming recession. This led to lowered earnings estimates which has allowed 69% of S&P 500 companies that have reported to beat expectations so far, while 65% have beaten on revenues. Overall, S&P 500 companies are estimated to have grown earnings by 7.4% in 2022, but will only experience 3.5% growth over the next twelve months, before accelerating again in 2024. Earnings are expected to slow across market categories Just as many economists expect flat or slightly negative economic growth in 2023 before seeing a recovery in 2024, many expect earnings growth to be meager this year as well. In this way, both sets of data point to a "reset" as the world adjusts to the shocks of the past few years - or as many investors like to refer to it, a "v-shaped recovery." In this context, there are two facts to keep in mind. First, corporate earnings are still at record levels for large cap companies with S&P 500 earnings-per-share reaching about $218 on a trailing basis. Analysts are not anticipating negative growth in 2023 - just slower growth to no growth. This does differ across market size and style categories, however. Mid caps (or Aggressive Growth in our Dave Ramsey vernacular), for instance, are expected to see earnings decline in 2023 while small caps (also Aggressive Growth) could see faster growth. However, both of these size categories are much more attractively valued than their large-cap counterparts, despite these earnings trends. Second, if inflation continues to slow, costs may improve and help support profitability across companies of all sizes. After all, rising costs due to higher goods prices and growing wages have crimped earnings over the past year. Similarly, if consumer confidence returns and spending rebounds, this could help prop up earnings. This is a balancing act since the flip side of consumer spending is wage growth, which represents higher costs for businesses. Wages are still growing 5.1% year-on-year, but this has eased from recent peaks. Corporate costs could improve as inflation eases Of course, the specific circumstances differ across individual companies and industries. Thus, it's also positive that seven of the eleven S&P 500 sectors are expected to experience positive earnings growth over the next year, despite the challenging environment. The exceptions are the commodity-sensitive materials and energy sectors which benefited from rising prices last year, and the real estate sector which has been directly hit by rising rates. It's important to keep in mind that analyst forecasts are not always accurate and are subject to change based on economic conditions. Still, expectations for this year align with slower growth trends across the economy. However, they also suggest that earnings could rebound once the underlying fundamentals improve and inflation stabilizes. Either way, record earnings continue to support valuations which are the most attractive in years. The bottom line? To cut through the noise, investors should continue to focus on their long-term goals and enjoy the fact that they're getting to own some of the best companies the world has ever seen. Continue to execute your current Baby Step and reach out to one of our Financial Coaches for help on Baby Steps 1, 2, and 3 and our Financial Planners for Baby Steps 4, 5, 6, and 7! Let's continue to live and give like no one else! Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

I like my job but need more income; what should I do? This is a common question during any period, but the continued high inflation environment is making this a more and more frequently asked question. In this article, we will share some suggestions on how to increase your income. Do I, or do I not…like my job We will start with the obvious option, if you don’t care for your job or are indifferent about it, then possibly the best solution to increasing income is getting a higher-paying job that fits your skill set. If you are trying to decide, take some time to reflect, write out the pros and cons of the job, and if the ultimate decision is to look for a job, take the time to research and investigate job options before quitting your current position. But I like my job… So, we will focus on those who either like their job or have a strong tie to it that switching jobs is not desired or even a possibility. Another fairly obvious point, but still should be brought up to those needing more income……if you work in a job that pays commissions or bonuses based on sales or production, work harder and smarter to increase your income directly through your efforts. For the rest of you that do not find it practical to switch jobs or are on a set salary, we offer some possible options: Ask for a raise This might be uncomfortable to do, but for many individuals, it is a possibility that could be explored and an excellent solution to improving cash flow. Doing a serious self-assessment and talking to trusted co-workers that feel you are in good standing to warrant a raise is a good idea. Be strategic in taking this approach. For instance, if you have a review coming up, that could be an ideal time. Another way to justifiably ask for more income is to offer to take on more responsibility. Be prepared to explain how you are capable and could be an asset to the company. Ask for extra hours Asking to work overtime is an approach that could be well received by a boss or an owner to show that you want to pursue more income. It also shows that you are willing to work for it. Work a second job or start a side hustle Although increasing the work week or having a shorter weekend may not sound appealing initially, if you genuinely enjoy the job that you are currently in, look for something similar in the same field to make this option less daunting. The same mindset goes for a side hustle; if it is outside your current field, do something you enjoy and have some know-how. For many, the need for more income is only temporary, so the extra time spent and sacrifices should feel more doable. Sell current possessions or engage in some controlled buying and selling transactions With so many online selling options, if you have some items you can part with (i.e., electronics, unused workout equipment, etc.), this could help meet a temporary income shortage. A traditional garage sale could also be utilized if more desired. Either option should be a tiny investment (if any) and likely yield hundreds of dollars. Some current possessions that could spill into controlled buying and selling would be hobby items: sports cards, coins, stamps, sports or concert tickets, quilts, or any collectibles. Here is where knowledge in these areas can help you make quick buys for quick sales at a profit. I emphasize controlled buying and selling because you do not want to get stuck with inventory that you can’t sell and hurt your cash flow rather than the desired intent of increasing your income. Make current emergency funds or ear-marked cash more productive We are focusing on the negatives of inflation squeezing budgets and thus the need for more income, but a positive that can help dampen the impact of inflation is the growing yields on cash and safe short-term options. Most money markets yield over 4%, and short-term (6-12 month) Treasury Bonds yield nearly 5% as of the writing of this article in February 2023. Short-term bond funds that are likely past most of the downside they faced in 2022 have yielded around these same levels and could have a little capital appreciation as investors are looking to lock in some return before the Fed may decide to reverse course and begin lowering rates. If you are good with assuming a little risk, bank notes still pay coupons around 10% or better. This will not be the primary income source solution, but multiple sources can all add up, and getting your cash to kick off $20-$120 extra a month can offset a shrinking income. Streamline the budget There are likely a few regular monthly purchases that are more of a want, not a need, and thus can be eliminated when looking at your budget. Like working a second job, if you feel like you are giving up pleasures you resent having to do, remember that it is likely only a temporary interruption. So, if cutting out Netflix, Spotify, or Starbucks is frustrating, try to view it as appreciating it more when you can return to some minor “luxuries” months down the road. Adding in savings as a priority here within the budget could be a plus, even if it is just saving change like $1 bills or $10 a week; in the end, it all adds up. Pay off debt to boost cash flow Ideally, you do not have any extra debt outside of a mortgage. But for many Americans, there are additional debt items people are trying to pay off monthly, from student loans, car loans, and credit card debt, to name a few. You lose money every month by paying additional dollars on your monthly payments with high-interest rates. As Dave says, use your largest wealth-building tool, your monthly income, to its most significant potential, and not pay someone else (i.e., credit cards, banks, etc.) besides yourself each month. If you find yourself in this boat and you have a decent emergency fund, then going from 6 months’ expenses covered down to 3 months, and applying those dollars towards paying off your debt, would make sense. It will help create extra dollars in the budget and enable you to build the emergency account back up once those debt items are paid off. And if you are truly following Dave’s baby steps, decrease your emergency fund to $1,000 and apply any existing savings towards your debt to get that paid off as fast as possible. We also suggest you refrain from borrowing from a retirement account. Stopping non-mandatory payroll deductions These are usually related to healthcare or insurance. So, although HSAs or FSAs are beneficial, if there is no specific need right now for those dollars, then temporarily delaying those probably makes sense. Also, some supplemental insurances may not be needed any longer, or could be less of a priority, and could boost your take-home pay for more pressing immediate needs if you choose to stop them at this time. Sometimes charitable contributions of organizations you no longer support or other unnecessary items you forgot about may be running through payroll and could be eliminated. Tax withholdings could also be reduced if you usually get money back on your taxes, so you use those funds sooner to address a temporary shortfall. Short-term sacrifices for long-term goals Most Americans would say they strongly desire a higher income. Surprisingly when asked, most people respond very similarly regardless of their current income level, with “about 10% more, and I would be content.” With this being a general attitude, you may get there by implementing just some of these strategies, and if you implement most of them, your cash flow may increase more than 10% higher than your current level. We mentioned multiple times that taking some of these measures or changes is temporary; you may find that you can return to the old budget and expenditures. Ultimately, you may make some of your changes permanent because you find you are happier with a reduced budget. Then pursuing your financial goals, especially if inflation subsides, becomes more accessible and accelerates even faster. We should all be good stewards and work hard at our jobs, but don’t forget to continue to work hard, and being disciplined at increasing your income can also be productive. If you are looking for ways to tackle your debt, decrease your monthly expenses, or create a budget, reach out to one of our financial coaches and schedule a meeting. Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures. Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

New Year New You With the majority of the holiday festivities now behind us, and the anticipation of the new year upon us, are you trying to decide on a new year’s resolution? Not sure what to set as your goal for the coming year? Keep thinking to yourself “New Year, New Me!”? A lot of times new year resolutions focus on creating new habits and most of the time, these center around a new healthy lifestyle. And although eating healthier, working out more, losing weight, and getting more sleep are excellent new routines to try and build, don’t forget the importance of practicing good behaviors with money/finances. Set Finances as a Priority Much like any new year resolution, you have to set your finances as a priority. Whether it be deciding to track your checking withdrawals, setting goals on saving for a specific reason (or just throughout the year), scheduling a meeting with an advisor and start investing, or deciding to sit down and commit to a monthly budget, the first step is acknowledging that focusing on your finances is just as important for a healthy lifestyle as losing 10 pounds. Be Intentional While meeting with a client recently, we were discussing the importance of being intentional. This included not only being mindful of what they were spending their money on, whom they were spending it on, or how much they were spending, but also when they were spending their money. This means thinking through if there are certain times of the year that you know you will be spending more than normal, or if there are upcoming situations where you may be spending money outside of your monthly bills. Knowing ahead of time when you may be spending more than you normally do, will help you smartly spend your money, finding either meaningful gifts, items at a discounted price, or just helping you save for the large purchases to come. Be Proactive During the meeting that I mentioned above, we started talking about ways to be more proactive. And through the conversation, the idea of reviewing your upcoming year now can help set you and your budget up for success. They threw out the idea of the week between Christmas and New Year, or even the first week after the new year, they would take out their 2023 calendar and look over each month. They are going to write down birthdays, holidays, and special occasions (i.e., weddings, anniversaries, graduations, etc.) that they were aware of, and jot them down. Not just on the calendar, but also on a spreadsheet to start thinking through how they will need to allocate more dollars for those specific months, or how to plan for these things in the coming months. Just as important as it is to meal plan when you are starting with a new healthy eating regimen, as it is to do the same when mapping out your monthly finances. Be Consistent Doing something once doesn’t make it a habit. Even doing something twice, doesn’t make it a change. Doing something over and over, especially when you are starting a new routine, is what will give you the most success in sticking with it. In the beginning, this can be hard. Especially if it is something you don’t care to do or something that makes you uncomfortable. However, the more often you can set aside time to focus on finances, and working on a budget, the more it will become second nature. Making and setting up your budget is the easy part. Tracking your expenses throughout the month and making them fit into your budget is the hard part. But you have to keep with it to make it worth it. Pencil in 2-3 times a week you can dedicate to checking in on your budget and making sure it is up to date. The more you do this over and over again, the fewer errors you will have, and will be less likely to overspend. Be Patient Remember this new habit or lifestyle isn’t going to be instant. It’s going to be a work in progress, but it will become normal for you if you stick with it. You just have to be patient and give it time. Stretching those “muscles” of focusing on your finances by setting a budget, reviewing expenses, and doing it daily, will soon feel as if you have always done these things. Sticking to new year’s resolutions can be hard, but are worth it in the end. If you want to make focusing on your finances a new year’s resolution, reach out to a member of our team. We have 11 financial advisors on staff and a certified master financial coach ready to help you make your finances a priority!

New Year’s Resolution: 2023 When it comes to fresh starts, there is no better time than the start of a new year. People are hopeful, excited, and have new energy to start the year strong. This article aims to help organize, create a process, and ensure the correct actions are being taken. These actions will help one to thrive now, and in the future, and relieve an immense amount of stress. Through discipline and optimism, one could find themselves on the path to a healthy and happy financial life, no matter their income level. This is all made possible by paying off debt, saving up, and automating one’s investing. Pay Off Debt Some people feel like they can never dig themselves out of debt. When every month you have expenses that go to a credit card, a car, and other debt, it may seem like there is nothing that can be done. To focus on paying off debt, it is important to realize that as long as you aren’t going backward each month, it is very important to put any excess into paying down debt. Some people carry debt with them, yet have a lot saved up in a checking/savings account. It is crucial to use those funds to pay down or pay off items that are being paid for month over month. This concept is so important to financial freedom that it is necessary to sell some things you may not need any longer. Being debt free allows someone to build up an emergency fund, save aggressively for retirement or other goals, and grow net worth exponentially. Pay for your future self, not a bank or a creditor. If you need help starting a budget and paying off debt, our Financial Coach, Lindsey Curry would be more than happy to help you with that. Save Up Your non-mortgage debt is paid off, congratulations! Your monthly expenses are still going toward taxes, rent/mortgage, utilities, etc. What should be done with the rest? Whatever it may be, it is important to treat yourself as a reward for your diligent work on paying off debt and completing baby step 2. Having this extra money per month is the greatest advantage someone can have as they start to save. Building up an emergency fund should be the next priority. An emergency fund is a personal budget set aside as a financial safety net for future mishaps or unexpected expenses and should be in the amount of 3-6 months of expenses. For example, if someone pays a $1,200 mortgage and their other utilities, etc. add up to another $1,300, then in this situation, they would need to have $7,500 at the very least in their savings account at all times. Saving an emergency fund is great because there is a buffer when something unexpected comes up that you wouldn't have previously been able to afford. This could be needing tires, paying for an unexpected injury, etc. Events like this could possibly lead to going into debt if not properly buffered by the emergency fund. Automatic Investing Fantastic, you have moved on to investing! Debt is paid off, an emergency fund is funded, now what? The extra money first went towards paying down and paying off debt. Then the extra money went to an emergency fund. The next place it goes is into a managed investment account. That is the fun, but difficult part. It is a great feeling to have peace of mind. No immediate debt, and a fully-funded emergency savings account. Now it is time to enjoy all that extra money, right? Yes, and no. As previously mentioned, it is so important to reward yourself for the multi-year efforts that have been given. Go on vacation, and buy yourself something nice. One thing to know about human nature is that if there is money in your pocket, you’re going to spend it. If there is no money in your pocket, you just have to go home. That is a lot of what disciplined savers do. Now that you are in a position where there is surplus cash flow, the greatest thing to do for yourself is to set up an automatic withdrawal from your bank account, into your investment account. Check out this video about Dollar Cost Averaging for the benefits of regular investing. This removes the temptation to spend money on things that aren’t always needed and delays gratification for the future. The power of speaking with your advisor As overwhelming as the stock market, timing, capital losses, and more can become, always feel free to use an advisor you know to just ask questions. It is our passion to help people understand these topics. When it comes to the life work of our clients and prospects, no decision is ever taken lightly. No account value is disregarded because all concerns and questions hold such a heavyweight in a time like this. We hope you’ve learned a great deal from this article, and more importantly, reduced some stress from your life today.

Dueling Contributions Beginning Baby step 4 (Funding retirement accounts) can be exciting for anyone who has emerged victoriously from their suffocating debt pile. A common phrase is often shared among our Baby step 4 clients once they breathe a deep sigh of relief: “What now?” Besides the obvious next steps, meeting with a financial advisor, creating a financial plan, and opening retirement accounts, there can sometimes be confusion surrounding the topic of funding those accounts. In this article, we will examine some of the options and which ones are appropriate, and when. Go Corporate Once you’ve paid down debt, it’s time to start investing 15% of your income in retirement accounts. Whether you work for a company that offers a 401(k), or you’re a government employee and take advantage of the TSP, it’s important to know whether your employer offers a matching contribution. If they do, then we recommend contributing up to that amount, maximizing your exposure to “free money.” Not every workplace plan offers a match, so don’t just assume either way. Do the proper research and determine what is available to you. Depending on the plan, there may be a vesting schedule with the matching contribution, so be careful. If you don’t plan to be with an employer long-term, then it might backfire if your money isn’t fully vested and you terminate employment. All things considered, employer plans are generally a good opportunity to begin funding your retirement, so make sure you take advantage of the opportunity if it exists. Roth Until You Can’t Once you’ve met your matching employer contribution, the next thing to do would be to max out a Roth IRA. Starting in 2023 the contribution limit is $6,500 for an IRA. If you file taxes as an individual, or head of household, the maximum modified adjusted gross income (MAGI) for a full contribution is $138,000, and contributions phase out at $153,000. For married couples filing jointly the MAGI limit is $218,000 with a $228,000 phaseout. If you think there is a chance that your income will bump into the ceiling, then a Roth might not be for you. If your income exceeds the respective threshold and you make Roth contributions then you will be subject to a 6% excise penalty each year the funds remain in the account. If you know your income will be within the permissible range, then a Roth IRA allows you to take advantage of tax-free growth. That could turn out pretty nicely for you when you start taking tax-free distributions in retirement. Contributions to a qualified plan can help lower your MAGI if you’re on the cusp and hoping to contribute to a Roth IRA. Traditional IRA If you exceed the income limits for the Roth IRA, then a traditional IRA is your next best bet. The same $6,500 contribution limit exists, but the income limit does not apply here. A traditional IRA is pre-tax, so your earnings grow tax-deferred. When you take distributions in retirement, you’ll pay at your tax rate at the time of distribution. There is a silver lining to a traditional IRA, however. Since the contributions are tax-deferred, you may be entitled to some tax deductions during the year of your traditional IRA contributions. Other Considerations If you can put away more than 15% of your income for retirement, then the next move for you would be to go back to your employer plan once you’ve hit the maximum on a Traditional or Roth IRA. The 2023 limit for elective deferral plans is $22,500. This higher limit allows you to contribute more toward retirement, but it comes with a cost, perhaps. The investment options might be somewhat limited on these plans, which is another reason we recommend maxing out an IRA if at all possible before going back to the employer plan. A Taxable brokerage account is another option for those who want to retire early. Since you can’t draw money from an IRA before the age of 59 ½ you would need another source of income in early retirement. Dave Ramsey calls this a bridge account because it bridges the gap between early retirement and that magic number of 59 ½. Retirement planning has many moving pieces and every situation is different, which is why it is important that you talk with a financial professional about your objectives. At Whitaker-Myers, we have a team of advisors who utilize sound financial planning as part of our comprehensive approach to serving our clients. Reach out today to schedule a meeting and begin planning your future.