Financial Advisors with the heart of a teacher. It’s one of the first things you see on our website. It’s one of the sayings you’ll hear Dave Ramsey and the crew at Ramsey Solutions, constantly preach. It’s what we try to instill in the life blood of any financial advisor that puts on the green and white Whitaker-Myers jersey (ok, ok we don’t actually have jerseys….. yet). To that end, clients will see a few new reports uploaded to their Morningstar Client Login Portal each month. These reports are designed to provide clients with a better understanding of their investments. Let’s dive into what you’ll begin seeing each month. Stock Intersection Report The Stock Intersection Report actually X-Ray’s your mutual funds and ETFs to help you understand what you’re investing in. You might ask, “aren’t I investing into mutual funds” and the answer would certainly be yes. However, let’s consider what a mutual fund is for a moment. It’s a basket of stocks, assuming it’s a stock mutual fund, that the fund manager has picked, that spreads your risk amongst many different companies. Therefore, if one company has a bad year, gets bad news about it published, goes bankrupt, I didn’t lose all my eggs because they weren’t in one basket. As a result, when you see a mutual fund on your statement, you can assume that you’re invested in a few hundred different stocks (or bonds if it is a bond mutual fund). Which stocks are you invested in? That is exactly what this report helps you understand. The featured picture helps this client understand their largest holding(s) when combining all their mutual funds together and x-raying them. In this example, Amazon at 2.03%, is the largest holding of this portfolio and that is because five of their mutual funds invest into Amazon. The T. Rowe Price Blue Chip Growth Fund has $6,677.45 of the clients’ money invested into Amazon, which equates to 1.13% of their portfolio. Following that Invesco’s QQQ has $389.50 invested into Amazon and so-on. As a point of comparison, the S&P 500’s top five holdings are: Apple (5.48%), Microsoft (5.21%), Google (3.94%) Amazon (3.84%), Facebook (2.21%) Performance Summary Report This monthly performance summary report will give you a view of your portfolio’s performance since your inception with Whitaker-Myers Wealth Managers to the ending of the previous month. The returns are shown on an annual basis, over the past four rolling years and a since inception return which is an annualized number, meaning if I see 9.66%, it means 9.66% per year, since inception. Please keep in mind, if you view your account on the Charles Schwab website (schwab.com) Schwab will show you a Gain/Loss tab but that is reporting a tax gain or loss, which is used by your advisor and/or accountant to help you calculate the amount of taxes owed when an investment is sold. This report from Morningstar should be used when determining your rate of return. Portfolio Holding Analysis This report provides you with an analysis of each of your mutual fund holdings. Specifically, we added this report because it provides you the Morningstar Rating for each of your mutual funds. While not an end all, be all, Morningstar Ratings can provide a client with an idea of how well a fund as performed, relative to its benchmark (how it should have performed based on peers and the stock market in general). Every fund category has its own benchmark. For example, the benchmark a growth & income fund would use, would be different than the benchmark an international fund would use. How are you to decipher all this information? One way, is the Morningstar Star Rating. Five is the best and one is the worst. People are generally visual – therefore if I see the majority of my funds at a four- and five-star classification, I can be confident to know I’m in solid performing mutual funds and/or ETFs. Conclusion It’s our desire that this information is helpful and creates an even deeper sense of understanding when reviewing your investments. One thing we know, is they can never replace the person-to-person learning and understanding a financial advisor, with the heart of teacher can provide. Should you have any questions or need access to your own personal Morningstar Client Portal, please reach out to your advisor today.

An all to common scenario in our office is, Client A walks in, has done an excellent job of saving money, presumably enough money to retire on, yet it’s all in tax deferred, retirement vehicles that certainly have their many benefits but all too soon, this client, will begin to have to deal with the dreaded Required Minimum Distributions (at current law, age 72) and at some point those RMD’s look to become more than the client wants or needs, therefore forcing taxes on an asset that would be better to be left to a tax favored account. This is where Roth conversions earlier in your retirement lifecycle (either pre or post retirement) can make a lot of sense for the right person. Roth conversions are the process of taking pre-tax money, which could be money in your Traditional IRA, 401(k) or another pre-tax asset and moving (converting) it to your Roth IRA. This requires you paying tax today, but once in the Roth your money will start growing tax free, will be distributed tax free and there will be no Required Minimum Distributions in the future. There are a few common planning ideas around Roth conversions: The 12% Roth Conversion For those that are in the 12% tax bracket considering utilizing the rest of this bracket to complete your Roth conversions. For a married couple, the 12% federal income tax rate goes all the way up to $81,050. With a standard deduction of $25,100 that couple could earn up to $106,150 and remain in the 12% bracket. Once you go above this taxable income level the rate jumps to 22%. For non-married individuals the 12% federal income tax rate goes up to $40,525 with a standard deduction of $12,550. This means a single individual could have taxable income of up to $53,075 and still remain in the 12% bracket. Let’s say a couple’s income was going to be $75,000. With the standard deduction ($25,100) they would only pay taxes on $49,900 therefore leaving them up to $25,100 to convert to their Roth IRA while staying in the 12% bracket. If they choose to convert the entire $25,100 pushing them to the top of the 12% bracket, this would cost them $3,012 in federal income taxes. If the $3,012 tax price tag was too expensive, they could consider converting a smaller amount that would still be in the 12% tax bracket and would fit their budget. Below are examples of client’s scenarios we’ve been able to utilize the 12% tax bracket strategy: When one spouse decides to leave the workforce for a few years to care for young children or an aging parent. This provides an income drop that allows the client to now utilize the remaining 12% bracket for Roth conversions. One spouse may retire before the other because of age differences or job stress level situations. This provides the drop in income for a few years needed to maximize the 12% bracket. When a client retires, they may see a drop in their taxable income. While time is not on your side anymore there may be situations where a Roth conversion at the 12% bracket makes sense to reduce future RMD’s, that may force you into the higher brackets. Fill Out the Bracket Another idea that is common in the financial planning world is the fill out the bracket that your currently in. While this can certainly be a little costlier for high income earners, it may be prudent to explore what tax bracket you are currently in and determine if you should pursue a Roth conversion to the top of that bracket. The federal brackets today are 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your decision to fill out your bracket with a Roth conversion may partly depend on your thoughts around where tax rates will be in the future but if you’re like me, you’ve got to believe they’ll be going higher over time. Stock Market Drop? Convert Last year during the height of the COVID-19 pandemic the stock market dropped over 30% at its worst. Later in the year, the market fully recovered and the S&P 500 ended the year up 18.40%. When the market dropped it provided a unique window for clients to do Roth conversions and have all the recovery happen inside of the Roth IRA. For example, an asset that was worth $10,000 may have dropped to $7,000. If the $7,000 was converted, you would owe tax on the $7,000 conversion. If the money was subsequently reinvested when it was converted the asset would have reaped all the recovery and subsequent growth inside of your Roth IRA. Get a Tax Pro As we constantly mention to our clients, please consult with your local tax professional. It’s well worth the cost to ensure you don’t make mistakes on a Roth conversion. The advisors of Whitaker-Myers Wealth Managers are happy to discuss your personal situation to determine if a Roth conversion may make sense for you.

You too can create good habits, learn new behaviors, develop effective skills, and make decisions with confidence wherever you might find yourself today. As your coach, we will work together, tailor plans, and I will help you to realize your life and money dreams. I want you to feel comfortable and confident about your life and your money. My wife and I have personally walked these steps during the past 30+ years. We spent ½ of our marriage doing things the wrong way before spending the second ½ doing them the right way. I will help you to go further faster because I have been there and can show you the way. So, where do you find yourself today? See how I can help you to navigate every step of your journey. Let Us Begin to Take These Baby Steps Together Step # 1: Save a Beginner Emergency Fund The first and sometimes the hardest baby step is saving your beginner emergency fund. We are going to create an effective spending plan, give every dollar a purpose, and save an emergency fund. As your coach, you can trust me to help you with a personalized strategy to do so. And, doing so makes all the difference. You will receive judgment-free personalized attention, compassion, love, and support from me as your coach. Step # 2: Eliminate Debt How will it feel when you are completely debt-free of all non-mortgage debt? Leveraging the skills and strategy from step # 1, we are going to attack the debt with high intensity to get it out of your life once and for all. As your coach, I show you the way with milestones and celebration to help to motivate you to keep going and realize success. I walk with you during your journey and help you with the habits, skills, and behaviors to get it done. Step # 3: Save Your Emergency Fund Great job completing steps # 1 and # 2. Now, we are having fun, saving money, and building security for yourself and your family. You now have the skills necessary to realize success and during this baby step, you are going to save either a 3-month or 6-month emergency fund. As your coach, I am going to help you determine how much to save, why, and where to put it. This is an essential part of your overall financial plan. Step # 4: Invest for Retirement We are going to partner with an excellent financial advisor to invest your hard-earned resources to create financial freedom. As your coach, I am going to help you to design a plan, outline questions to ask, and help you to select an advisor who is going to represent you and your interests well. We are also going to outline together the amount that you may want to save to realize the retirement of your dreams and why. Step # 5: Save for College Education Take a moment and think about the joy and blessing of contributing to your child’s college education. We are going to leverage the partnership with the excellent financial advisor from step # 5 to optimally invest your college funds for your child. We are also going to talk about options, experiences, and how my wife and I paid cash for three children to graduate from college debt-free. Step # 6: Pay off Your Mortgage And, for the Coup de Grâce, get debt out of your life once and for all. You too can pay off your home mortgage! As your coach, I am going to show you how to achieve the ultimate in debt freedom by paying off your home too! Step # 7: Live and Give Like No One Else So, why do we want to rid ourselves of debt, build savings, save for a comfortable retirement, help our child with college, and completely payoff our home? To build God’s Kingdom. We have an opportunity to live and give like no one else. As your coach, I am going to offer ideas and help you to build relationships within your household and within your community. The most fun you will ever have with money is to bless others. Let us get started with a no-obligation introductory session. We will meet each other, review possibilities, and you decide if coaching is the right path for you and your family. You can schedule a time and date convenient for you at www.jm-financialcoaching.com.

Those of us that love and respect Dave Ramsey have heard him say that there are two types of investments he makes on a regular basis. The first, being mutual fund investing based on his principals of diversification (Growth, Growth & Income, Aggressive Growth & International) and also paid for, in cash, real estate. This leads many clients to ask the question, should I be purchasing real estate within my global investment strategy and how does it compare to the investing I may be doing into mutual funds? Great question and let’s take a look below. Before you dive into scenarios of what returns could look like in either mutual fund investing and real estate investing let’s discuss some basic foundational principals. First, I am assuming that the person considering buying real estate would be looking at a below $1 million property (commercial or residential) and would be buying the property after they have hit Baby Step 7 and are still actively contributing to Baby Step 4 and perhaps Baby Step 5 (if applicable). The investor would buy the property with all cash so as to not go back into debt therefore allowing the piece of real estate to be a blessing and not a potential curse. If there is a mortgage on the property and the rent stops paying for 3 months (which trust me can and will happen at some point) you don’t want to have to worry about finding the money to pay the mortgage. If you need a refresher on the 7 Baby Steps please visit Dave’s website www.daveramsey.com to catch up. Within real estate investing there are three types of return to be generated. Value increase (or potential decrease) of the property based on real estate values in the general proximity of your piece of real estate. Cash flow from the property which is derived from the rent paid to you from your tenant, whether they be a renter or commercial tenant. Finally, Deprecation of the property provides a tax incentive to own real estate because you’re able to depreciate the value of the real estate offsetting some the income, potentially saving you tax dollars. Stock Market investing most commonly would see only two of these three potential sources of return which are value increase (or decrease) and cash flow, to the extent the stock investment is paying a dividend (the shareholders portion of the profits paid to them). Let’s run through a quick example: Johnny buys a piece of residential real estate for $80,000 and intends to rent the property for $800 / month. After he accounts for maintenance and other potential repairs he plans on clearing for himself $600 / month. The property is in an area that has historically seen a 2% increase in real estate prices annually. The depreciation value is about $560 in tax savings. Johnny’s annual return is 9.70% ($7,200 annual rent + tax savings) +2% appreciation on property = 11.70% return. If Johnny were to increase the rent to $1,000 and clear $800 / month, it would increase his total return to 14.7%. Historically over the last thirty years 1991 – 2020 the stock market (using the S&P 500) has averaged 10.70% per year. There are certainly things we didn’t account for within this example (renter trashes your home or real estate market crashes hence the value of the property plummets) but this gives you a general of idea of how one might consider the return of a piece of real estate against the mutual fund investing you might be doing through your advisor at Whitaker-Myers Wealth Managers. One final factor to consider, is what is commonly called the “hassle factor”. Your mutual fund investments are not going to call and bug you about a broken dish washer or that they don’t like the curtains you put up in the living room. For some people, especially those that are not inclined to fix things themselves, this increased workload from their investments, which in turn could take away from family, relaxation or just general personal non-work time, might create a scenario where an investor may prefer to be in mutual fund options that just provide them a monthly statement and that is the extent to which they are bugged about the investment. Real estate investing for the right person might provide them with an attractive risk / return opportunity, but certainly is not appropriate for everyone. Your advisor at Whitaker-Myers Wealth Managers is happy to discuss the pros and cons of this scenario in addition to modeling the potential real estate purchase in your financial plan.

If you are going to college to be a teacher, the Teacher Education Assistance for College and Higher Education (TEACH) Grant might be beneficial for you. Let’s look at what it is and who is eligible. What is the TEACH Grant? The TEACH Grant Program provides grants of up to $4,000/year to student who are going to college in order to begin a career in teaching. This grant is a little different from other Federal grants because it requires you to complete four years of qualifying teaching. If you don’t complete that teaching obligation, then the grant turns into a direct unsubsidized loan that must be repaid in full with interest. The interest will be charged from the date the TEACH Grant was given. As you know, we follow Dave Ramsey’s principles around here so we would advise you to only take this grant if you are 100% sure that you will fulfill the teaching obligation so that this remains a grant and does NOT turn into a loan. If you receive the TEACH Grant, you will be required to sign a TEACH Grant Agreement to Serve where you agree to teach in a high need field, at an elementary school, secondary school, or educational service agency that serves low-income families, and complete at least four academic years within eight years after completing the course of study for which you received the TEACH Grant. Schools that participate in the TEACH Grant Program determine which programs that they offer are eligible for the TEACH Grant. For this reason, you should contact your Financial Aid office to discuss this grant. Who is eligible for the TEACH Grant? Here are some of the eligibility requirements for the TEACH Grant: Meet the eligibility criteria for federal student aid Complete the FAFSA Be enrolled at a college that participates in the TEACH Grant Program Be enrolled in a program that is eligible for the TEACH Grant Meet certain academic achievement requirements Receive TEACH Grant counseling Sign a TEACH Grant Agreement to Serve (mentioned above) To ensure that you are eligible for the TEACH Grant, it is recommended that you discuss it with your school’s Financial Aid office. This article was intended to give you an introduction and basic overview of the TEACH Grant, if you are interested in learning more, you can read more at studentaid.gov.

In the absence of hope, despair and status-quo become acceptable. This is the feeling I get when talking to many families about the chances they feel their children will be able to get through college debt free. No hope so status quo (student loans) become acceptable. Perhaps a family hasn’t had the means to save because of poor financial habits in the past and now, after getting connected to Dave Ramsey and Ramsey Solutions, they’ve finally found their way out of debt, built an emergency fund, yet one problem – their child is 16 and they’re staring down the barrel of almost nothing saved for college. What’s an advisor like us to say to this client? Perhaps we could tell them that over the next two years they could save $1,890.58 / month and at a 10% rate of return they’d have approx. $50,000. Yet, as you’re probably thinking, who has $1,890 / month laying around, especially considering you should not put your retirement on hold (Baby Step 4 is before Baby Step 5, right!) to fund your kids’ college. Good news, as an eternal optimist, because I believe in the power of positive thinking and positive attitudes, we’ve got some excellent recommendations to guide your student through college debt free. Of course, you can always find reasons, why YOUR child won’t be able to do some of the things we recommend in this article and if that’s you, I don’t think there is much we can do to help you, however if you’re open to ideas and suggestions let’s walk down this road together. First things, first Just like in real estate, where the common phrase “Money is made at the buy” is so important to your ability to be successful as a real estate investor, college success is dictated, many times by school choice. For example, according to collegecalc.org, colleges in Ohio can be as cheap as $2,802 / year (Belmont Technical College) to $54,346 / year (Oberlin College). Let’s say that little Johnny, tells us he wants to go to The Ohio State University. We know that tuition costs at main campus are going to run us $9,852 however we’ll also have to fork out the cost of dorm, food, car, etc. because Johnny will have to move down to Columbus. Instead we know that we could send him to the Mansfield Regional Campus (assuming we live in or around Mansfield) for $7,416. Or we could send them to the Wooster Regional Campus for $7,416. Thus, saving an additional, $2,400 / year plus the costs of room, board & other misc. expenses. Now this may not be what Johnny wants to do but remember, you are still the adult and it gives you a great opportunity to teach Johnny about economics such as, what economic benefit are you getting for the additional $2,400 / year plus expenses? Nothing at all! Tuition Reimbursement Programs One of my favorite pieces of advice is tuition reimbursement programs at some of the best employers for young people. This is exactly what I did when going through college and it was extremely helpful in two ways. First, it allowed me to keep my out of pocket costs for college to a minimum but additionally because I was juggling 20 – 25 hours (sometimes more) of work along with my school schedule, I learned the importance of time management and built a resume while in school. So here are some great examples of employers that will provide tuition reimbursement and the amount they reimburse in parentheses. AT&T ($5,250 after 6 months at company) Bank of America or probably any bank for that matter. I worked for PNC Bank, they paid for most of my MBA ($5,250 after 6 months at company) Chipotle ($5,250 or 100% of tuition yearly if you enroll in one of the specific degrees offered through their partner programs) Home Depot ($1,500 per year for part time hourly workers) Starbucks (full tuition to Arizona State University online degree program after working 240 hours and continuing to work 20 hours per week) UPS ($5,250 for part time and full-time employees from day 1) Walmart ($1 per day cost for part- & full-time employees to earn college degrees in demand fields at one of their online partner colleges). Target ($3,000 per year) Verizon – another favorite of mine because I worked with them one year during undergrad and they paid all my tuition that year ($8,000 / year if the degree is applicable to Verizon operation or $5,250 if not). Lowe’s ($2,500 / year for full time employees with one year of service) Chick-fil-A (Tuition discounts and grants for more than 100 colleges and universities that partner with them). Best Buy ($3,500 per year if you work 32 hours / week) Fidelity (90% of education costs with a maximum payment of $10,000 per year, after 6 months of service). Scholarship Search & Apply As Dave Ramsey says, during your child’s senior year, their full-time job should be searching for and applying for college scholarships. A simple Google search will yield a couple websites to visit to narrow down scholarships your child might be well suited for. A favorite of mine is https://bigfuture.collegeboard.org/scholarship-search They have scholarships and internships for more than 2,200 programs, totaling nearly $6 billion. A board of directors I once sat on, had a $1,000 scholarship they gave each year. Sadly, for the three years I sat on their board, we only had about two kids apply for the scholarship each year (50% chance!). Imagine, with great school choice, such as The Ohio State University Mansfield Campus, example above, how even $1,000 could have a huge impact (15% of your costs would be covered). How did Johnny do? In our hypothetical example above, Johnny has decided to attend The Ohio State University Mansfield Campus which means he’ll need to come up with $7,416 per year. Mom & Dad (you) have decided you’ll help cover $1,200 of the cost ($100 / month). Johnny applied for and received a $500 scholarship from his local community bank. He also got a job at UPS working from 7am – 10am each morning, meaning he’ll need to take afternoon classes – no big deal! He gets paid $14 / hour (my guess) which is $252 / week on a six-day workweek. Guess what – that’s his spending money because between his scholarship, $1,200 from you, $500 from his scholarship and the $5,250 that UPS will reimburse him for he is out almost nothing. Some of you may be instantly thinking my child can’t work while in school. They need to focus on school! Well, you’re wrong! According to a study done by the National Center for Educational Statistics (https://nces.ed.gov/pubs94/94311.pdf) among full time, full year undergraduates those working only 1-15 hours per week while enrolled were more likely to have GPA’s around 3.5 or higher. Acknowledging the fact that you have little saved is the first step. The second step shouldn’t be to instantly pursue student loan options. Create a plan for your child, that helps them to create life long skills instead of burdening them with life long debt. As always, your Whitaker-Myers Wealth Managers Financial Advisor is here to help you take those steps towards financial freedom.

Imagine making the short drive to your local grocery store. It’s a drive you’ve made so many times that you’re practically on auto pilot. So much so that you don’t see a young man riding his motorcycle towards you and you turn in front of him. The accident sees him life flighted to the hospital where he’s in the ICU for several days. He survives, but his injuries are significant, his ability to provide for his family is in jeopardy, and full recovery seems out of the question. Who will pay his medical bills? What about pain and suffering? Your auto insurer is responsible for the injuries sustained, but there has to be a limit, right? What if you selected state minimum coverages when you purchased auto insurance? In Ohio, that’s $25,000 per person to pay bodily injury. Or, your agent recommended limits of $100,000 or even $300,000 -- surely that’s enough? In this example, even $300,000 wouldn’t be enough. If you don’t have an umbrella policy, you could be responsible for whatever your auto policy doesn’t cover. Imagine your home and personal assets at risk. Because without an umbrella, they are. Put simply, an umbrella policy is a layer of liability that is excess over your home and auto insurance. Generally, umbrella policies are available in increments of $1MM. They provide a layer of protection against significant claims that could result in financial devastation. The story at the beginning of this article is true. The young man on the motorcycle is a dear friend of mine and fellow pastor of our church. He has 4 young kids, and a 5th on the way. His life will never be the same. And accidents like this happen every day. Are you properly protected? Or are you risking everything? I’d be happy to review your home and auto insurance to make sure you are properly protected. And don’t be tempted to think you can’t afford an umbrella policy. Lots of factors determine the price but, generally, an umbrella policy will only cost between $125 and $200/year, for each $1MM layer. You’ve worked hard to be wise with your money, pay down debt, invest well, and build wealth. Why risk everything, when adding an umbrella policy is only a phone call away? *Insurance products offered through Whitaker-Myers Insurance Group and licensed agents.

Tomorrow is October 1st which means that we are heading into the holiday season! This is the time of year when it seems as though there are expenses that can sneak up on us if we don't plan ahead for them. Here are a few items that you might want to add into your October budget. Decorations & Pumpkins - Whether you are decorating for the season or getting pumpkins for the kids to carve, it is the time of year to be stopping by the pumpkin patch! Family Pictures - This is the time of year that many people get their family pictures taken for Christmas cards and that sort of thing. Costumes - It's time to be buying a costume for the kids if you celebrate Halloween! Gifts - Whether you are buying hostess gifts or starting to plan ahead for Christmas, it is a good idea to add this into your budget as early as possible. We are big fans of Dave Ramsey's advice to save all year for Christmas gifts because then it isn't such a hit to your budget in the last couple of months. Apple Picking - Many local orchards have U-Pick apple picking going on and this can be a cheaper (and more fun) way to get your apples but it is more of a cost up-front since you typically buy a bigger bag than what you would in the store. Candy - Whether you are giving out candy for Halloween or just buying it for yourself, this is that wonderful time of the year where all the mini candy bars are available and they are hard to resist when you walk past them in the store. Just me?! Travel - I know we are all traveling less right now but if traveling is in the plans for the holidays, starting to build it into the budget now will help you spread out the expense over a couple of months! Hopefully this got you thinking about things you might need or want to add into your October budget. If you are looking for ways to save money and/or make extra money, check out this article from Dave Ramsey's budgeting program, EveryDollar: October Challenge: Scare up Some Extra Cash for Halloween

I recently went on New Day Cleveland to share some Quarantine Budget Tips and I wanted to share them here as well. This pandemic has impacted all of us in one way or another and as we know, money touches all areas of our lives, so here are a few tips that might help you when it comes to your life and money right now. Emergency Fund – We all know that we should have an emergency fund but when things are going well, it doesn’t always seem urgent or important to save. Unfortunately, I think this pandemic made us all realize how quickly an emergency can happen. If you found yourself without an emergency fund during this time, give yourself grace – that has happened to all of us, but use this as motivation to start the habit of saving every month, even when things are going well…. Especially when things are going well. Emergencies happen and building in this habit of saving will allow you to have a cushion between you and life the next time something happens. Continue and/or Start Meal Plan/Prep – Meal planning and prepping is a common money saving tip because it helps reduce the amount of money you spend going out to eat. I bring this up here because since many people are home more often it might seem less important to plan and prep dinner, but the reality is you are likely still working, doing virtual school, etc and dinner time can sneak up on you before you know it and if you don’t have plan, you might spend more grabbing take-out. Use Amazon Smile to donate to your favorite charities when you shop! - This tip won’t help you save money but will help your dollar go further when you are shopping with Amazon. You can go to smile.amazon.com and select the charity you would like to support and then every time you make a purchase with Amazon, they will donate a portion to that charity. It doesn’t cost you anymore do to this either! Use online cash-back and coupon programs such a Rakuten (Ebates) and Honey. - A lot of us are shopping online more often and a good way to save money is to use the cash back and coupon apps/programs. Rakuten (used to be Ebates) is a cash back program. The way to use it is by going to the Rakuten website or app first and then navigating to the website you want to shop with. If that website participates in the Rakuten program, you will earn a percentage back and that comes in the form of a check paid out quarterly by Rakuten. Honey is a program that searches for coupon codes when you go to checkout with a website. You can add it as an extension on your browser and then when you get to the checkout screen, Honey will search for active coupon codes for you to use. Hopefully some of these tips help you with saving some money during this time! If you have any questions or want to discuss your specific financial situation, please feel free to reach out to one of us. You can meet our team of advisors here.

Fall in Ohio is a magical time, isn’t it? The heat of the summer is dissipating yet the sting of winter’s cold days is far enough off that we aren’t yet worried. There is no greater place to spend your September and October months than in this beautiful state watching a high school football or soccer game. However, once every four years the beauty of God’s creation here in Ohio comes under a little stress as one of the great battle ground states in the Presential election. That often leads to a series of questions from clients around, how should my investment strategy change during an election year? The perception is, because there is uncertainty and perhaps a new President that you may or may not agree with, that will crash the stock market and along with that crash, you’ll see your savings drop. As an advisor to many families across Ohio, South Carolina, Georgia, Florida and Texas, we as a firm need to understand if this assumption is reality and if so, how should we react. This article hopefully helps you to see our perception of the election and stock market. Studies on Election Years and Market Returns Dimensional Funds, a respected fund company, based out of Austin, Texas did a study in 2019 showing that the stock market has been positive overall in 19 of the last 23 election years from 1928-2016. We have posted the chart below that shows the S&P 500 total returns during each election year dating back to 1928. The most recent examples of a negative stock market annual return in an election year, have been in 2008, which was not the result of an election but rather the result of a global financial crisis brought on by the one thing that we hate more than anything DEBT! The second most recent example of a negative total return for the S&P during an election year, was the 2000 election which featured President Clinton’s VP in Al Gore and his Republican counterpart, George W. Bush. More academic research on the topic, by Yale Hirsch, who wrote the book, The Stock Traders Almanac, and furthered by Pepperdine professor Marshall Nickles in a paper called, “Presential Elections and Stock Market Cycles,” has presented data that shows it’s actually best to invest on Oct. 1st of the 2nd year of presential term and sell on December 31st of year four. Therefore, their research says, don’t sell out during the election year because it’s part of what has historically been some of the best years of a President’s term. Furthermore when studying returns, data does show that returns are better in midterm election years as opposed to non-midterm years and I believe this is very explainable in the fact that the stock market doesn’t like uncertainty, so when the leader of the free world is somewhat uncertain (although narrowed down to two people) that would generally impact returns. Notice, I didn’t say, that non-midterm years were negative though. Therefore should you sell out of your investments just because the returns are not as good as they’d be in another year? Certainly Not! You Can’t Outsmart the Market Dave Ramsey says the best book for investing is Aesop’s Fable, The Tortoise and the Hare. Why? Many of us get sidetracked from our investing strategy from all these outside issues that may or may not have an impact on the market. The bottom line, many times is, if we held to our strategy, we’d do better than trying to outsmart the market. One question, you could honestly ask yourself, in March of 2020, if I could have pushed a button and said I’ll just take a 0% return for 2020 as opposed to the negative return your statement was showing at that point, would you have taken it? Many probably would, however had you stayed true to your strategy today you’re in a much better place, just six short months later. It’s hard to time, outsmart and be better than the market because there are so many factors you can’t anticipate. As you’re probably reading or hearing, the Presidential race is tight and as of today there is no clear-cut winner. Don’t let that impact of what-if’s, maybe’s or that might happen, effect the strategy you have in place for your family’s financial future. Market drops will always happen, Presidential election or not, thus your primary concern when investing should be your goals and objectives for your money, not who is moving into or out of the White House. Dave Ramsey always says, you control your outcome not the President so don’t let them dictate your investment decisions.

At Whitaker-Myers Wealth Managers, we all have the heart of a teacher, and it’s important that we consider all financial planning instruments and strategies for our clients. Due to the historical lack of awareness and knowledge with Health Savings Accounts (HSAs), it’s also important that we educate on what HSAs are, who is eligible to open and contribute to one, and why it could be a beneficial financial planning tool for specific clients. What is a HSA and who is eligible? A health savings account is a triple-tax-advantaged investment account that can be used to pay for qualifying medical expenses before and during retirement. The general rule of thumb is: those who qualify for a HSA are individuals or families with a high-deductible health plan. More specifically, a HSA-qualified consumer driven health plan with minimum annual deductibles of $1,400 for individuals and $2,800 for families. If one were still unsure if they would qualify or not, it is spelled out in a little more detail on our website. Features of a HSA with Whitaker-Myers Wealth Managers We believe that a HSA can be thought of as a triple-tax-advantaged account that can act as a hybrid between an emergency fund and investment account. Historically and even today, most health savings accounts pay a low annual rate of interest that does not keep up with inflation, let alone the rising annual costs of healthcare. Not to mention, many potential investors are left out of this knowledge and opportunity due to the unfortunate nature of many investment advisors not wanting to put time and effort into educating and working with people who are not extremely high-net worth clients. With your eligibility and our financial planning & investment management capabilities, we can offer the accessibility of a health savings account along with the availability of high quality mutual funds with long track records that will allow your contributions and account to grow over time, with fund recommendations being based on clients’ risk tolerance and time horizon among all other factors. Finally, what is this triple-tax advantage that has been mentioned twice already? To put it briefly, contributions are funded pre-tax, the account grows tax-free, and distributions for qualifying medical expenses are tax-free. Qualifying medical expenses include most services provided by licensed health providers, in addition to diagnostic devices and prescriptions. Even acupuncture and substance-abuse treatment are two specific examples that would typically qualify. Putting your HSA to use As mentioned above, qualifying medical expenses will always be tied to all 3 tax-advantaged features. The great thing about a HSA, that is not also present in other investment vehicles and insurance products, is that the account is YOURS, with no strings attached. It is important to mention limitations, but that essentially only includes the 20% penalty that would be tied to non-qualifying medical expenses before age 65 and the annual contribution limits. Current annual contribution limits are $3,550 for individuals and $7,100 for families, with a $1,000 annual catch-up contribution at age 55. However, once you reach age 65, a HSA is treated like a separate IRA account where distributions can be taken out for essentially anything, medical or non-medical. With this feature, you were still free from taxes with the contributions and the growth of the account. Post-retirement, qualifying expenses will still be taken out without any tax, still giving the triple tax savings. We believe these features give credibility to the fact that HSAs offer amazing tax advantages and flexibility with usage. Not-so-fun facts One other aspect of HSAs that we can agree on is that this isn’t the most glorious or thrill-seeking form of investing and financial planning compared to thinking about something such as purchasing a vacation home, but neither is paying for costly medical expenses or bearing the burden of financial disaster with extreme cases. Here are some specific facts and statistics that can help reiterate this: The average couple today needs almost $300,000 for healthcare expenses in retirement During WW2 in the U.S., the daily cost of staying in a hospital room could be as low as $100 in today’s dollars Today, this cost is typically going to run you a few thousand dollars, and yes, we are still talking per day In the past 20 years, healthcare spending in America has had a net increase of over a trillion dollars The total value of all HSAs in the U.S. today exceeds $64 billion, with this number being only $1.7 billion in 2006 While it is good that this statistic shows more awareness and usage of HSAs, much of this could very well be the result of how many U.S. citizens struggled with healthcare costs and financial disaster, especially during the 2008-09 recession It’s also clear and inevitable that many will struggle with these costs with the combination of poor planning and resources and the pandemic and economic downturn we are currently facing Less than 10% of Americans use HSAs while nearly 50% of U.S. households use mutual funds in other forms (401k, IRA, etc.) Using the total value of all health savings accounts in the U.S. of around $64 billion, this number roughly equates to the total market capitalization of Cigna Corp, which is only the 27th largest individual publicly traded healthcare company This is just a specific example, but in a “fight” between common citizens and healthcare corporations, it seems like the corporations are winning Is a HSA right for you? Remember, to be eligible, you must have a high-deductible health plan. This does not mean that every person who has this type of health plan should be starting and funding a HSA with us right away. Just like with any other client or potential client, using Dave’s baby steps is the simplest yet most effective place to start. We are focusing on expressing the value of starting HSAs with us for specific clients who are on or past Baby Step 4. As a reminder, baby step 4 involves contributing 15% of annual income towards retirement, with baby steps 5 & 6 consisting of saving for children’s education and paying down a house mortgage early. Depending on the specific client’s circumstances, baby steps 4-6 can be taken on simultaneously, and some situations will cause a client’s needs to place more priority on baby steps 5 & 6 before thinking about a HSA. However, here are some hypothetical situations to put some of this into perspective: A high-income client is on baby step 4 (15% income towards retirement), is contributing up to the employer match on their 401k, is also contributing the maximum annual limit to a Roth IRA, and still has some chunk of that 15% to put towards retirement Depending on the situation, the recommendation may be to fund or increase contributions to an HSA or contribute the remaining chunk back to the 401k It is so important to consider the HSA for clients that are eligible because of the triple-tax savings and high flexibility of the account itself Employers have been shifting healthcare costs to employees over the years, but some may still be able to get matching contributions from employers for HSAs Just like with a 401k match, this needs to be thought of as free money or guaranteed 100% return on your money For those who can easily use their typical spending budget for prescriptions and routine doctor’s visits but still want to feel protected with the safety net of a HSA, you can reimburse yourself out of your HSA for qualifying expenses at a later date, even years later, which allows for your account to continue growing without withdrawal disruption Conclusion Hopefully you as the reader now have a good idea of what health savings accounts are and the suitability and benefits of using them. If you are eligible and interested in opening a HSA with WMWM or even just interested in learning more or asking questions, please contact us and we would be more than happy to help for potential and existing clients!

Creating a Will can be really intimidating. It’s one of those things that most people know they should have but it just always sits on the “To-Do” list because they don’t want to think about it, they are afraid it’s going to be expensive, or they don’t even know where to begin. You Want to Decide What Happens to Your Belongings and Your Children Ahead of Time As Dave Ramsey says, having a will and life insurance is a way for you to tell your family that you love them, even after you have passed away. This is because, when there is a will there is clarity. Everyone knows your wishes for your things and there is no guessing on your family’s part on what you would have wanted done with your belongings. If you have young children, this is especially important because you want to be the one that decides who will take care of them if you aren’t here to do so. It’s important that you decide that and have a conversation with the person you chose to make sure they are okay with being their caregiver. Also, you might want to share other important information with them including your values, financial situation (life insurance), etc. Creating a Will Might Be Easier Than You Think If you have been putting off creating a will because you are not ready to pay a large amount of money to an attorney, you will be happy to hear that there are cheaper options. Dave Ramsey recommends Mama Bear Legal Forms. You can see that on his website, here. I always describe services such as Mama Bear as a “fill in the blank” form. As in, they will send you a form and there will be blanks where you need to fill in your personal information and they will give you instructions on how to do that. If you have a more complex situation and would prefer to work with an attorney, know that there are attorneys that have more reasonable prices especially when it comes to wills. It just takes calling a few to find out their rates and/or asking family members or your Financial Advisor who they recommend in the area. If ultimately, you would prefer to work with an attorney in order to have a more personalized will but do not have the time or money right now, consider creating a will with a service such as Mama Bear and just update it later. This is because it is important to have a will sooner than later! Have Clarity on What is In Your Will In the Legacy Journey, Dave Ramsey talks about having a “reading of the will” every year with his family. This is definitely not what is normal, but you know Dave does not want to be “normal”. Too many times, families get into arguments when someone has passed away, either because there was not a will and they can’t agree on a decision or because they are shocked by what was in the will because they didn’t expect it. Once you create your will, if you made a decision to leave someone out of your will or made a choice that might surprise your family, consider having that conversation yourself. This will make it easier on the person that you chose to be the executor of your will, so that they don’t have to be the one to break the news. Fun fact, August is "National Make a Will Month" so there is still time to get a Will and go into the Fall knowing that you have a plan in place to leave a legacy for your family!