I have never seen my LinkedIn feed blow up with so much Dave Ramsey content from other financial advisors as I did about one year ago. Keep in mind, Dave Ramsey and most financial advisors do not get along. There is a hate-hate relationship between the two parties. I'm not sure why - probably most of it relates to how financial advisors think Dave Ramsey's 10-11-12% market return estimates are incorrect, a lot of it is jealousy (from the financial advisor side as they don't have 10 million people tuning in to hear their advice), and some of it is just good ole fashion financial planning - we're dealing in a world of unkowns so two people can have an opinion and actually both might be wrong! While this isn't the video that set Social Media, YouTube, and Reddit ablaze, it's one that gets to the same argument: What Should My Retirement Withdrawal Rate Be ? So this begs the question - is my friend Dave Ramsey right? Is the 4% rule just outdated information from a bunch of broke financial advisors (by the way, I would agree - most financial advisors are actually broke because of too high a lifestyle)? Or said another way...... "How much can I safely pull from my portfolio each year without running out of money?" Let’s talk about that—without the fluff, without the Wall Street double-speak, and from a Financial Advisor that does LOVE Dave Ramsey and the folks at Ramsey solutions but is also deeply rooted in academic financial planning (see my designation library for a proxy on that). The 4% Rule: Where It Came From (And What It Really Means) Back in 1994, a guy named Bill Bengen  did something that no financial advisors had done at the time: he actually ran the numbers. He sought to determine the safe annual withdrawal amount from a portfolio that would last 30 years, despite potential wars, recessions, inflation, and market crashes. Bengen’s research used historical market data from 1926 to 1993 . He built a simple portfolio: 55% US Large Cap Stocks  (think: VOO) 40% Intermediate-Term Bonds  (think: BND) 5% Cash (think: US Treasury) He tested every possible retirement start date within that window, using quarterly start dates, including the absolute worst-case scenario: retiring in October 1968 , right before a brutal stretch of high inflation and lousy markets. What he found was this: if you withdrew 4.15% of your portfolio in year one , and then increased that amount each year for inflation, you would not have run out of money in any 30-year period. In the worst-case scenario (October 1968), the retiree would have seen their last check bounce, meaning they would have run out of money at the end of the 30 years, but every other retiree would have had something left. That’s right— 4.15% was the worst-case success rate . And because people like simple rules, it got rounded down and became known as “The 4% Rule.” So when my friend Dave Ramsey says 4% is too low, is he right? Based on history, more than likely, yes, he is correct. Are you getting ready to enter a decade where inflation is going to run at an average of about 7% per year, so your withdrawal will need to increase by that amount each year, to break even, while the stock market delivers nominal total returns of just 1.6%? I pray the answer is no, and therefore you can probably take a higher withdrawal rate than 4%. As a matter of fact, Bill Bengen agrees.... It Gets Better: Bengen’s Research Didn’t Stop There After publishing his original work, Bengen kept refining the data. In his book “ A Richer Retirement, ”  he explored how diversifying into more asset classes could increase that safe withdrawal rate. If you would like to read this book by Bill Bengen (be careful, it is a tough read, as it is very numbers-oriented), please contact your Financial Advisor to see if your relationship qualifies you for a free copy. Here’s what he found: Adding US Small Cap Stocks (which we call Aggressive Growth ) increased the rate to 4.5% Including even more categories like Micro Caps, Mid-Caps, International Stocks, and Treasury Bonds pushed the number closer to 4.7% In other words, a well-diversified portfolio—like the ones we build at Whitaker-Myers Wealth Managers —can give retirees a better shot at a higher withdrawal rate without increasing risk, even in the worst-case scenario (Oct 1968). But Let’s Be Clear: This Is About Smart  Risk, Not More  Risk Bengen’s findings didn’t include fancy hedge funds or speculative plays. He wasn’t chasing yield. He proved that good asset allocation makes a difference—especially when markets get choppy. Dave Ramsey says, money is like manure, left in one spot, it stinks, spread out, it helps things grow. Ecclesiastes 11:2 says, "Give a portion to seven, or even to eight, for you know now what disaster may happen on earth." So it's Biblical and Bengen approved! That said, you need to be careful when you start adding conservative assets like bonds. If you're 30, 40, and sometimes even older, we’re not putting you in bonds just because retirement is on the horizon. You don’t have a sequence of return risk yet. However you might be in bonds and you don't even know it! Ever heard of something called a Target Date Fund? This is a fund that does the investing for you. It was an excellent invention for 401(k)s because many people didn't know what to invest in and didn't have access to a Financial Advisor. However, even the most aggressive target date funds, such as the Vanguard Target Retirement 2070 Fund , has 8% of the portfolio in bonds. Think about that - this person is retiring in 2070. We are in 2025 as of the writing of this article. This hypothetical 20-year-old that is being put into this fund in their 401(k) has 45 years until retirement, and you're placing 8% of the money in an asset class that has historically delivered half the returns of the stock market, therefore taking double the time actually to double, on those dollars. I was in Chicago last year for a training from the Investments & Wealth Institute while obtaining my Retirement Management Advisor (RMA®) designation . Christine Benz came in to do one of the trainings. She is great! One of the best minds on retirement planning in the country, and she works for a great research firm, Morningstar. I asked her this question: "Why do 20, 30, 40, and sometimes older individuals need bonds in their target date funds? I know they need them at some point closer to retirement, but why now, why at 20?" I don't want to say she didn't have an answer - who knows, she probably doesn't want to upset the big boys like Vanguard, but she said this, "John-Mark, that's why they have you (Financial Advisor), and if they don't have you, a target date fund is better than sitting in a money market with all your money." I 1000% agree, Christine! Get a good Financial Advisor. But once you do hit retirement, the game changes. Now you’re not just building wealth—you’re drawing from it. And the timing of your withdrawals can work for you or against you. And this is where you can't go all in on stocks, like Dave implies someone is doing in the video mentioned above. Read my article, Bear Markets, Normal Not Fun to completely understand why you can't be all in on stocks during retirement. You might have an entire year that stocks will be dropping, and thus you shouldn't be selling. You might have 1.7 years (603 days) that you need to wait until stocks get back to where they were (or even longer). That necessitates another type of asset class (see Ecclesiastes 11:2 above). Enter: Monte Carlo Simulations (A Fancy Name for Real-World Stress Testing) While Bengen's research showed us that 4.15% was the most that could be taken out in a worst-case scenario, and even that can be improved by incorporating some sound Biblical wisdom into your portfolio, that was the worst-case scenario. Bill Bengen has mentioned in a recent interview that 4% was the worst-case scenario, 12% was the best-case scenario (if you were the luckiest retiree), and the average withdrawal rate was 7% based on his research. So he argued, if you were to make a rule out of his work, you would call it the 7% rule, not the 4% rule. However, 7% means there are scenarios where historically you would have been unlucky (not the unluckiest retiree, just unlucky) and you would have run out of money despite taking a 7% withdrawal rate. How would I measure the risk of taking such a withdrawal rate? At Whitaker-Myers, we don’t just cross our fingers and hope. We run Monte Carlo analysis—a powerful tool that runs your retirement plan through 1,000+ different market scenarios to test one thing: At what probability your plan survive a lifetime of ups and downs without forcing you to cut back—or worse, run out of money? It’s not based on average returns or best-case outcomes. It’s based on reality: markets crash, inflation spikes, recessions happen. We test your plan against all of it. If you’re planning to withdraw 4%, 5%, 6%, 7%, 8%, 9%, 10%, etc, we want to know: How often does that succeed over a 30+ year retirement? What if you live longer than 30 years? What happens if inflation goes nuts? Monte Carlo gives us insights into what those answers could look like. How We Help Boost Your Withdrawal Rate (Without Gambling) We’re not in the business of stretching any withdrawal rate to make things look good on paper. But there are real-world ways we work to improve the numbers: 1. Turning Off Dividend Reinvestment If you're taking monthly withdrawals, it doesn’t make sense to reinvest dividends automatically. Why? Because dividends and interest arrive on a predictable schedule. That means if you need $2,000/month and you're receiving $700 in dividends, you're only relying on $1,300 from market-timed withdrawals. That helps reduce sequence risk. One of my favorite books, "What The Happiest Retirees Know" , author and financial advisor Wes Moss argues for an all dividend portfolio to meet your income needs. I don't know if I agree with that, as I don't want to miss out on those companies that have a pitiful dividend payment (or none) but have grown, because they're changing the world like Nvidia and Tesla. But we definitely believe in some dividend stocks or funds, and in our opinion, at retirement, those dividend reinvestments should be turned off. 2. Private Equity & Private Credit For qualified investors, we may recommend private market investments like private credit, which tend to have higher yields and less emotional volatility. Since these aren’t priced daily like public stocks, you're not tempted to make rash decisions when markets get ugly. This isn’t magic—it’s just thoughtful planning and using tools the average investor doesn’t even know exist. You can read a recent article I wrote about this subject: Where Have All the Aggressive Growth Stocks Gone? Rebalancing Rebalancing is one of the most innovative, most disciplined ways we help boost your retirement withdrawal rate. It means regularly adjusting your portfolio back to its target mix—selling some of what’s gone up and buying what hasn’t. Over the last 30 years, the stock market has been up about 80% of the time (annually), and in those up years, the average return is nearly 20%. That’s when we take gains from high-performing assets like stocks and move them into more stable, non-correlated investments like bonds, real estate, or U.S. Treasuries. This locks in profits and reduces exposure before the next market downturn. So instead of gambling or chasing returns, you're consistently buying low and selling high—on purpose. When the crash does come (and it will), you’re not forced to sell stocks at a loss to fund your retirement. You’ve already moved some of that growth into assets that tend to hold up better, giving you income and stability when it matters most. This strategy protects your portfolio from the sequence of return risk, especially in the early years of retirement. Rebalancing isn’t market timing—it’s risk management that helps your money last longer. At our firm, this is done through a mixture of technology and our excellent trading team! So... What’s Your  Withdrawal Rate? If you’ve saved well, appropriately diversified, and built your plan with a team that knows what they’re doing, you might be able to withdraw more than 4%—safely. Anyone who tells you it can only be 4% doesn't understand the research. Anyone who tells you that you can withdraw 10% or 11% doesn't understand non-sequentially returns (the stock market doesn't go up in a straight line). But here’s the bottom line: Your number isn’t some rule of thumb. It’s your plan. Your goals. Your risks. Your life. That’s why we don’t give cookie-cutter advice. We build a custom withdrawal strategy around you, backed by research, battle-tested by history, and confirmed by real-world simulations. If you're nearing retirement—or already there—don't guess your way through this. And most importantly, we don't put our hope for future success, happiness, and prosperity in our withdrawal rate. 1 Timothy 6:17 says, "As for the rich in this present age, charge them not to be haughty, nor to set their hopes on the uncertainty of riches, but on God, who richly provides us with everything to enjoy"

This month, let’s talk about how to make wise, informed choices in the college application process—without letting emotions or pressure lead to financial regret. We’ll break down the pros and cons of applying Early Decision, highlight key FAFSA changes, and tackle one of the trickiest financial aid questions. Most importantly, we’ll look at all of it through the lens of financial peace and stewardship. What Is Early Decision (ED)? Many colleges offer Early Decision I (ED1)  or Early Decision II (ED2) . These are binding  agreements—if your student gets in, they are committing to attend that school and must withdraw all other applications. It’s not a legal contract, but it’s treated like an honor code. The key difference between ED1 and ED2 is timing: ED1 applications are due around November, while ED2 deadlines are in January, giving families a little more breathing room. The Dave Ramsey Perspective on Early Decision Before you or your student sign up for something binding, let’s stop and apply some common-sense wisdom: Pros Slightly Better Acceptance Rates:  Some colleges do admit more ED students. Peace of Mind:  Getting an answer early can relieve some stress. Cons (and Why They Matter Financially) It Limits Your Options:  You can’t compare scholarships or negotiate aid  offers when you’ve already committed. That’s like agreeing to buy a car before seeing the price tag. Pressure and Rushed Choices:  ED deadlines come fast, and major financial decisions made under pressure often lead to regret. Potential Financial Strain:  If you commit before knowing the total cost, you risk borrowing to cover the gap—a huge red flag. Remember: student loans are not “good debt.” One Basket, One Egg:  If you’re not accepted, you’ve spent time and energy that could’ve gone into better, non-binding options. Ramsey-Style Recommendation If you’re 100% confident the school is affordable without debt —and your family has saved for it—then Early Decision could make sense. Otherwise, go for Early Action  or Regular Decision  so you can compare aid packages and choose the school that aligns with your budget and your values. The New FAFSA The new Free Application for Federal Student Aid (FAFSA) is expected to launch on time, with a few helpful updates: Family-owned businesses with under 100 employees, family farms, and fishing businesses are now exempt  from reporting their net worth on the FAFSA. The application process is expected to be smoother this year—though waiting a couple of weeks (until mid-October) before submitting is wise to avoid early glitches. Ramsey Tip: Even if you think you make too much, fill out the FAFSA. You may still qualify for scholarships, work-study, or institutional aid—and it keeps all your options open. How to Answer “How Much Will You Contribute?” on the CSS Profile Private colleges using the CSS Profile  often ask parents how much they expect to contribute. Be realistic and honest. Don’t inflate your ability to pay; colleges use this to calculate need-based aid. If you’re unsure, aim for 8–12% of your Adjusted Gross Income (AGI)  as a rough starting point—but never commit to more than you can pay in cash or savings. If your financial situation changes—job loss, medical bills, or other major events—use the “special circumstances” section or write an appeal letter. Always make sure the FAFSA and CSS Profile match to avoid delays. Why You Should Always Apply for Scholarships and Grants Even if you’ve worked hard to stay debt-free and save, here’s why it’s smart to apply: You Might Qualify After All:  College prices rise faster than expected, and the formula can surprise you. It Opens More Doors:  Many merit scholarships require a completed FAFSA, even if you don’t qualify for need-based aid. Colleges Reward Financial Stability:  Schools often prefer students who can pay responsibly and graduate on time. Final Word: Don’t Let College Create Lifelong Debt College should be a blessing, not a financial burden. Applying Early Decision might sound appealing, but it’s rarely the best financial move unless you know exactly what you’re committing to and can pay for it in cash or with existing scholarships. Make a plan: Know what you can afford before applying. Compare offers. Say no to loans. Pick the school that fits your budget, not your ego. Remember—your child’s future is shaped more by hard work, discipline, and integrity than by the name on a diploma.

As parents or future parents, a frequent question we encounter is: "What vehicle should I use to save for my child’s education?" Two popular—or often considered—choices are 529 college savings plans and UTMA (Uniform Transfers to Minors Act) custodial accounts. Each option comes with its own benefits, drawbacks, and trade-offs. Often, a strategic combination of the two can provide flexibility, tax efficiency, and more options. In my opinion, you should never leave your children's money just sitting in the bank. We teach our kids about the rule of 72, which states that by dividing your rate of return into 72, you can determine how long it will take to double your money. For instance, a 10% return will double your money every 7.2 years (10/72 = 7.2). However, your local bank typically offers around 1% interest on savings. There's a bank in my hometown that entices kids with gimmicks: open an account, deposit money, and spin a wheel for a small prize, while they lend out your child's $10,000 savings at 6%, earning $600 a year and paying you very little. This arrangement benefits the bank. If the money will remain untouched for 10, 15, or even 20 years, it's probably better to invest it. Options like the UTMA or the 529 can provide this opportunity. What if my child receives a birthday check from grandma? That's wonderful—you don't need a bank to cash your child's check. You can easily deposit that check into their 529 or UTMA account. Your child shouldn't visit a bank to conduct transactions until you're teaching them how to effectively manage a checking account. Avoid the misconception that a 2-year-old needs a savings account. It's important to understand that a 529 or UTMA can also be held in a savings account. Simply opening these accounts doesn't mean the funds are automatically invested. You need to actively invest the money once it's in these accounts. Therefore, we suggest consulting a Financial Advisor who can offer personalized advice suited to your specific circumstances. Below is a comparison and a framework I often use (with caveats) in working with families. What is a 529 plan? What is a UTMA? 529 Plan (Qualified Tuition Programs) A 529 plan is a tax-preferred savings vehicle created under Section 529 of the Internal Revenue Code. Contributions are made with after-tax dollars (i.e. no federal deduction, though many states offer state tax deductions or credits). You can use this tool from Scholars Edge 529 to see if your state has a tax benefit. The key benefit: tax-deferred growth, and tax-free withdrawals when used for qualified education expenses  (tuition, fees, books, supplies, and in many cases room & board). If you withdraw funds for non-qualified purposes, earnings are subject to income tax plus typically a 10% penalty. For financial aid purposes, because the 529 is usually owned by a parent, it is considered a parental asset , and its impact on aid eligibility is relatively modest (roughly 5.64% of the value is assessed in many FAFSA formulas). 529 plans often have aggregate contribution limits (which in many states are well above $300,000) and may allow contributions from multiple family members, subject to gift tax rules. UTMA (Custodial) Accounts A UTMA account (Uniform Transfers to Minors Act) is a custodial account in which an adult (the custodian) holds assets for a minor. Once the child reaches the age of majority (depending on state law), the assets become fully theirs. There is no restriction on how the money is used. Essentially, any expense that “benefits the child” is allowed (not just education). The assets and their growth are taxed annually under special rules. The first $1,350 is tax exempt (no taxes), and the next $1,350 is taxed at the child's tax rate, which is 10%. Gains after that are taxed at the parents' tax rate. Because the account is in the name of the child, for FAFSA financial aid calculations, it is considered a student asset , which hurts aid eligibility more (roughly 20–25% of the account’s value may count). There are no contribution limits specific to UTMA (though gifts above the federal gift-tax annual exclusion may trigger reporting). Why you can’t “double-dip” with education tax credits + 529 on the same tuition dollars One critical nuance many families overlook: you cannot claim the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC) on tuition dollars that are paid using 529 plan distributions. In other words, the same dollar of tuition can’t get a 529 tax benefit and  be used to generate a tax credit. AOTC and LLC income limits For the American Opportunity Tax Credit: The full credit phases out for taxpayers with Modified Adjusted Gross Income (MAGI) between $80,000 and $90,000 (single filers) and $160,000 to $180,000 (married filing jointly). Above those thresholds, you lose eligibility. The Lifetime Learning Credit has the same phase-out ranges ($80,000 to $90,000 for single, $160,000 to $180,000 for married). If your income is above those top ends, you cannot claim the credit at all. Because of this limitation, in higher-income families, funding entirely via 529 may make sense. But in “middle” income or borderline cases, you might want to preserve flexibility so you can use the tax credits. As a practical example, if you pay a child’s tuition of $8,000 in a given year: If you pay it via a 529 withdrawal, that $8,000 is “used up” in the sense that it cannot also be used to claim an education tax credit. If instead you pay out-of-pocket (or from a taxable account) the first $4,000 and claim the AOTC on that, and perhaps use 529 withdrawals or other sources for the remainder, you may get more total tax benefit—especially if your income keeps you within the credit phase-out range. The AOTC and LLC are pretty powerful tax credits. The AOTC, for example, is a maximum of a $2,500 annual credit (per eligible student) for the first $4,000 of qualified expenses, and even 40% of the credit is refundable (meaning if you have no tax liability, the IRS pays you). Because credit works for the first $4,000 of qualified educational expenses, perhaps a $4,000 payment from your UTMA (which wouldn't only cost you $1,500 after your tax credits) and the balance from your 529 would optimize your situation. Thus, blindly “filling up” a 529 account and using it for all of college costs might leave money on the table if you are in a position to benefit from AOTC or LLC. My Guiding Strategy: Use UTMA early, then shift to 529 In working with many families, I often recommend a hybrid, staged approach, though always with the caveat: each family’s situation (income, estate plan, risk tolerance, anticipated college cost, state tax environment) can change the calculus. Here’s a sketch of the approach I often favor: Begin with UTMA (custodial) funding for the early years, targeting a specific threshold (e.g., $10,000–$20,000). In those early years, the growth in a UTMA (assuming good investment returns) is often small relative to the child’s tax brackets and possibly below the kiddie tax thresholds. For example, a 10% return on a $5,000 account balance is $500. This is under the $1,350 that is tax-free; therefore, you would get the same benefit you get in a 529 plan (tax-free growth), but you wouldn't be limited to using the funds for educational purposes. You retain full flexibility: the money in UTMA isn’t forced to be used for education. If the child doesn’t go to college, or if circumstances change, you can repurpose it for a home down payment, business startup, or other purposes. You preserve the ability to use the education tax credits (AOTC or LLC) on tuition dollars because you haven’t locked all funds into a 529 yet. Once the UTMA reaches the threshold (say $10k–$20k), begin shifting new savings toward a 529, gradually increasing the proportion allocated to the 529 over time. The reason: the compounding and tax-free benefits of the 529 become more powerful as the balance grows. If desired, convert or “roll” portions of the UTMA into a 529 (if allowed by your state) in years when the tax impact is minimal and before the FAFSA/aid calculation year. But beware: converting/cashing out UTMA for 529 contributions triggers capital gains and unearned income in that year, which may push some income into the kiddie tax or higher brackets. It may be smart to spread the realization of gains from the UTMA over several years, to avoid “bunching” too much income in one year. Why this blend works: you get some flexibility and tax credit optionality early, and then lean into the tax-advantaged compounding of the 529 later. It’s a balance. Illustrative savings goal: $166/month from birth To show how meaningful this strategy can be, consider this hypothetical: Suppose you commit $166/month starting at your child’s birth for 18 years. If the portfolio earns 10% annually, the future value is roughly $98,900 At 8% return, it would grow to about $79,600 At 6% return, it would hit around $64,800 These are strong sums—especially given the many options available to your child (college, trade school, first home, etc.). If you began with a UTMA cushion of, say, up to $10–$20k, the portion still invested in the 529 would benefit from decades of compounding at tax-free growth. Key Trade-Offs & Risks to Watch Kiddie tax & unearned income: If unearned income in a UTMA is larger than the $2,700 ($1,350 at 0% and $1,350 at 10%), it may be taxed at the parent’s marginal rate under the kiddie tax rules. Financial aid impact: UTMA assets are more heavily penalized in FAFSA calculations (student asset) than 529s (parental asset). That can significantly reduce need-based aid. Conversion tax liability: If you convert from a UTMA to a 529, any capital gains must be realized and reported, which can trigger higher tax costs if done poorly. State tax differences: Some states provide deductions or credits for contributions to in-state 529 plans—benefits UTMA doesn’t enjoy. Changing plans : If your child decides not to attend college, 529 funds not used for education could face penalties and taxes (unless you roll to another beneficiary or use under certain permitted options). There is also now a provision that allows you to move 529 plans to a child's Roth IRA after the funds have been in the 529 plan for 15 years. Income limitations on tax credits: If your family income is high (above the phase-out thresholds), the benefit of preserving options for credits may be minimal, and an all-529 strategy may be more attractive. Putting it all together: What to consider when designing your plan When crafting a savings strategy for education, here are key questions to ask: What is your current and projected income? If your income is likely above or close to the AOTC/LLC phase-out, you may not get much benefit from preserving credit eligibility. How much flexibility do you want? Do you want to ensure the funds are used for education, or do you want the option to repurpose them? If you value using them for purposes other than education, you would lean more towards the UTMA. What is your risk tolerance and investment preference? The more years remain and the more willing you are to invest the account into stocks, the more the 529’s tax-free growth becomes compelling. How will this interact with your larger financial plan? College funding is one goal among many (retirement, estate planning, liquidity, etc.). You don’t want to over-prioritize a college account at the expense of other goals. What is your state’s 529 tax incentive? If your state offers a deduction or credit for 529 contributions, that tilts the balance more in favor of 529. When to convert UTMA to 529, if ever? Plan ahead for capital gains, timing around FAFSA, etc. In many cases, a hybrid “UTMA-first, then shift to 529” strategy gives you a “best of both worlds” pathway—especially for families in the middle-income range who are trying to maximize tax credits and maintain flexibility.

At a meeting I recently attended in Chicago on October 9, 2025, Morningstar’s research team provided invaluable insights into the strategy of wide moat investing , highlighting its strategic advantages. The session was conducted by Morningstar's Director of Equity Research (North America) Damian Conover , and Head of Global Equity Research Dan Rohr , who both contributed extensive experience and analytical expertise. Understanding the Moat Advantage A “moat” refers to a company’s ability to maintain competitive advantages over its peers, protecting its long-term profitability and market share. Morningstar’s focus on identifying firms with strong moats is integral to achieving investor success, aligning with their mission to empower investors. Structure and Expertise : Damian Conover, responsible for Morningstar’s North American equity research, highlighted the organization’s robust analyst community, which boasts an average of 16 years of industry experience. This level of expertise is crucial for accurately assessing a company’s moat. Commitment to Quality : Morningstar’s detailed process for assigning moat ratings involves a combination of foundational analysis and intense review by the Moat Committee. This thorough vetting ensures that only companies with sustainable advantages are classified as having wide moats, providing a reliable choice for long-term investments. The Research Process: Driving Long-term Value Structured Evaluation : Dan Rohr underscored the importance of consistency, fairness, and transparency in evaluating analyst performance. These principles ensure that the research process remains unbiased and focused on long-term investor interests. Performance and Incentives : The Ratings Achievement Award, which grants restricted stock based on long-term call efficacy, reflects Morningstar’s commitment to prioritizing accurate evaluations over short-term market movements. This focus on long-term outcomes aligns incentives to ensure analysts strive for the most accurate and beneficial insights for investors. The Moat Investing Edge Independence and Objectivity : Morningstar’s analysts adopt an independent stance, avoiding corporate influence that may cloud judgment. This objectivity enables them to provide clear and reliable investment recommendations, driving better outcomes for investors seeking to build a portfolio supported by robust fundamental research. Long-term Focus : The research emphasizes the importance of long-term success over quarter-to-quarter performance. By focusing on sustainable advantages and intrinsic value, investors can potentially achieve consistent, above-market returns with reduced risk. Conclusion The insights shared during the meeting highlight how wide moat investing, backed by rigorous research and a focus on long-term success, can serve as a powerful strategy in the financial world. For investors interested in building resilient portfolios, Morningstar’s methodologies offer a reliable pathway to identifying and investing in companies poised for enduring success. The Van Eck Morningstar Wide MOAT ETF offers clients exposure to companies with enduring competitive edges. This ETF emphasizes not only these sustainable advantages but also considers valuations—specifically the price paid for stocks relative to their earnings—as important as these WIDE MOATs. Our team values this approach because from 2007 to this year, the MOAT Focus Index has surpassed the S&P 500 in 91% of five-year rolling periods and 100% of ten-year rolling periods. For more information on wide moat investing and Morningstar’s research methodologies, please talk with your Whitaker-Myers Wealth Managers Financial Advisor .

If you’ve owned your home for several years, there’s a good chance the value of your property has increased over that period (especially in a high-demand area). Selling a home with a large capital gain can eat into years of equity by way of taxes to the IRS, which is why some homeowners choose to stay in the same home indefinitely. However, a new bill has been introduced in Congress that could change that in a big way.   The “Current” Law from 1997 Current IRS rules state that if you sell your primary residence, you can exclude up to $250,000 in capital gains if you’re filing single and up to $500,000 if you’re married filing jointly.   To qualify, you must have lived in the home for two of the last five years. The IRS calls this a section 121 exclusion. It means you have to have owned the home for at least two years (730 days) and lived in that home as your primary residence for at least two years (730 days) of the last five years.   These thresholds were set in place in 1997 by the Taxpayer Relief Act of 1997 and have remained unchanged since. Inflation hasn’t been taken into consideration, and the reality is that home prices have more than tripled in some markets. The issue is that more homeowners are crossing the exclusion line, especially in high-cost states like New York and California.   The Proposed Change: Doubling the Exclusion or Eliminating Capital Gains on Home Sales Entirely There are two bills currently introduced in the House of Representatives:   H.R. 1340 – More Homes on the Market Act.  H.R. 1340 was introduced on February 12, 2025, by Rep. Jimmy Panetta (H.R.-CA-19). This bill is the reintroduction of H.R. 1321, which died with the end of the 118 th  Congress. This bill carries similar rules to the current capital gains exclusion, with two big changes:   First, it aims to double the current exclusion to $500,000 for individuals filing single and $1,000,000 for people married filing jointly. Secondly, the exclusion would adjust to inflation starting from the year 2024 based on a specific cost-of-living formula.   The goal of H.R. 1340 is to incentivize homeowners to sell their homes, which would in turn increase the housing supply and possibly alleviate inflated housing prices.   H.R. 4327 - No Tax on Homes Act (To amend the Internal Revenue Code of 1986 to eliminate the dollar limitations on the exclusion of gain from sales of principal residences, and for other purposes)  H.R. 4327 was introduced on July 10, 2025 by Rep. Marjorie Taylor Greene (R-GA-14). The main component of this bill is that it would eliminate the capital gains exclusion. This would be great, however, I don’t think this will make it very far down the road to being signed into July 10, 2025, by Rep. Marjorie Taylor Greene (R-GA-14) law. It would seem to have been created more so as a media attention grabber.   Here’s a Real-World Example of H.R. 1340 – More Homes on the Market Act Let’s say you’re a married couple who bought your home in 1998 for $300,000 and now you’re selling it for $1.2 million—your capital gain: $900,000.   Under current law, $500,000 is tax-free, but the remaining $400,000 is taxable. Under the new proposal, the full $900,000 could be tax-free. Depending on your income bracket, that could mean saving tens of thousands of dollars in taxes.   Why Now? What’s Next? What Can You Do? While the No Tax on Homes Act is a political stunt, the More Homes on the Market Act may have some traction. H.R. 1340 is intended to unlock more housing inventory, especially from retirees or long-time homeowners who are hesitant to sell due to tax consequences. The passing of H.R. 1340 could help ease the currently tight housing supply, giving sellers more flexibility to move, downsize, or relocate.   If you’ve ever seen Schoolhouse Rock “I’m Just a Bill,” you would know that the proposed legislation needs to make it out of committee and pass through both houses of Congress and then be signed into law by the President. Although the More Homes on the Market Act from the 118 th Congress failed, this one may be gaining some bipartisan traction.   What you can do now is track the bill’s progress if you plan to sell your home. Talk to a financial advisor or tax professional about capital gains on real estate and how it may affect you. If you do plan to sell soon, it may be worth waiting to see what happens to these bills.

Many people dream of retirement as a “set it and forget it” phase of life, but the reality is, staying on top of changes in the law can make a significant impact on how much you save and when you can access your money. The SECURE 2.0 Act   is a perfect example of why keeping your retirement plan up to date matters. This law has updated contribution limits and shifted the required minimum distribution (RMD)   age. That means not only can you potentially put more money away each year, but you also get more time before you’re required to start taking withdrawals from your pre-tax accounts. Both of these changes can have a major impact on your long-term strategy. Bigger Contribution Limits in 2025 Let’s start with contributions. For 2025, the standard 401(k), 403(b), and 457(b) limit has been increased to $23,500 , up from $23,000 in 2024. For folks aged 50 and older, the traditional catch-up contribution of $7,500 hasn’t changed. That means you can put away a total of $31,000  if you’re over 50. But here’s something new and exciting: SECURE 2.0 introduced a “super catch-up”  for people aged 60–63. This allows you to contribute $11,250  on top of your standard limit, bringing the total to $34,750 . This is especially helpful for anyone who may have started saving later in life or who wants to make up for earlier shortfalls. Keep in mind, though, that the super catch-up is only available in employer plans that have opted into this enhanced feature. Catch-Up Contributions for Higher Earners If you earn more than $145,000 , there’s a new wrinkle: any catch-up contributions you make must now be Roth contributions , meaning they’re after-tax dollars. This is something to plan for if you’re in that income bracket and want to maximize your retirement savings efficiently. RMD Changes – More Time to Convert to Roth One of the biggest changes in SECURE 2.0 is the RMD age bump . Previously, you had to start taking withdrawals at 72. Now, the age has increased to 73 , and it will rise again to 75 in 2033. Here’s an example: if you turn 73 in 2024, your first RMD  is due by April 1, 2025, and your second RMD  is due by December 31, 2025. Why does this matter? The extra 1–3 years before RMDs begin gives you a bigger window for Roth conversions . Having more time allows you to: 1.    Spread conversions over multiple years, avoiding a jump into higher tax brackets. 2.    Intentionally fill lower tax brackets before pre-tax distributions start, potentially saving thousands in taxes over time. IRA Contribution Limits Remain Steady Not everything has changed. The annual contribution limit  for traditional and Roth IRAs is still $7,000  for 2025, with an extra $1,000 catch-up for those 50 and older. Conclusion SECURE 2.0 gives retirees and pre-retirees more flexibility and power over their retirement savings. Whether it’s the super catch-up, Roth contribution requirements, or the delayed RMD age, understanding these changes can help you save more efficiently, manage your tax bracket, and ultimately make your retirement years more secure. If you're unsure where to start or want to learn how SECURE 2.0 may affect your finances, don’t hesitate to connect with your financial advisor  today.

Tammi and I have been avid fans of Dave Ramsey and Ramsey Solutions  for more than 30 years. We were married at age 20 and found ourselves in a challenging financial situation. Fortunately, we discovered Dave Ramsey, in fact, on a clearance rack cassette tape in an Indianapolis bookstore. We listened to his advice and were captivated; it changed our lives forever. This journey transformed our finances, our marriage, and redirected my professional career.   Today, I work as a Financial Advisor  at Whitaker-Myers Wealth Managers  and hold the additional designation of Certified Ramsey Solutions Master Financial Coach. Over the past 15+ years, I have had the privilege of helping many hundreds of clients with their money management and financial planning.   Many earn good incomes, yet we struggle to manage our God-given resources effectively. Who needs solid money management skills? We all do. Here are some more lessons learned regarding our money management.  Don’t fall for these pitfalls.   Money Management Pitfalls   # 1 – Avoid Debt Financing Proverbs 22:7 states that “the borrower is slave to the lender.”  When we owe a debt, we are not actually in control of our finances or our labor.  My wife and I lived this way for years before waking up and changing our lives forever.  We lived on deferred interest financing, such as 12-month “same as cash.”  We also had a USAA Credit Card with 0% interest for 12 months.  We purchased a lawn mower, an exercise bike, and consolidated our debt on this credit card.  We did not pay the full balance on the card within the 12 months and suffered the consequences.  The high retroactive interest charge at the end of the promotional period was brutal.  Please do not fall for it like we did.  Learn from our mistakes.  It is not worth it. My wife and I have learned to be patient, save money, and then carefully proceed with the purchase if it is still important.    # 2 – A Strong Marital Bond Ecclesiastes 4: 9-11 states, “Two are better than one….”  Tammi and I eventually learned the importance of a strong marital bond and focused on working together.  We struggled with this early in our marriage.  We later heard Dave Ramsey use the metaphor that two oxen yoked together can produce exponentially greater power than they could individually.  We learned to work together not only on our finances but also while raising our children and caring for each other. Avoid the pitfall of trying to do it alone. You are both in charge of your destiny.  Work together with love and respect.   # 3 – Start Investing ASAP 2 Corinthians 9:6 states, “whoever sows sparingly will also reap sparingly.”  We learned that it is important to begin our investment journey as early as possible.  The “Rule of 72” helps us to calculate the number of years needed to double our retirement portfolio.  At an average annual market rate of return of 10%, it will take 7.2 years for our investment to double.  So, Tammi and I realized that the sooner we began, the more 7.2-year increments we have before needing the funds.  This knowledge helped us to become laser-focused and gazelle-intense about making it to baby step # 4 (15% into retirement).  Avoid the pitfall of delaying your investment journey.   Focus, work together, and start.   Would You Like to Learn More Effective Money Management Ideas? As I mentioned earlier, one of my primary goals as a Financial Advisor is to help clients manage their finances more effectively. If you’d like to explore more, please use my calendar link  to schedule an introductory session.

The question of whether to hire a financial advisor arises many times throughout life—when starting a career, seeking guidance from your parents, buying a home, changing jobs, starting a family, and beyond.   What do these have in common?  They are all life-impacting events that significantly impact your personal finances.  Having a financial advisor in your corner may be exactly what you need to implement important actions and recommendations to save and protect for the future. We will discuss how financial advisors work, what they charge, and if it’s worth it.   To Fee or not to Fee   The way financial advisors get paid can feel like throwing darts blindfolded—it’s all over the place. That’s why it’s important to ask the right questions to get the full picture.   One of the most important is: How are you compensated?  Advisors may be paid in many different ways. Common answers you’ll hear include, ‘We charge a percentage of the assets we manage,’ or, ‘We charge a one-time or annual fee for creating your financial plan.   If you do not hear those first two things said, make sure to ask: 1.     Are you able to sell me commissionable products? 2.     What are your conflicts of interest? o   The conflicts of interest usually appear in the form of their recommendations at the end of your meetings   Products like Whole Life insurance  and proprietary funds such as American Funds' “Growth Fund of America” are products and investments that pay a commission to the salespeople.   While paying an advisory fee is not unusual, the question to you might be “Is it worth it?”.    We encourage you to consider the following: 1.     Do you value professional advice and do you feel it’s worth the fee? 2.     Do you have the time to implement your own financial plan?  3.     Do you have your tax plan in order?  4.     Have you spoken to an estate planning attorney about setting up your Will or Trust?  5.     Do you know which one you should choose between the two?  6.     Have you found your favorite low-cost ETFs and mutual funds that represent Dave Ramsey’s 4 categories of investing?  7.     Have you discovered your own investment philosophy?  8.     Do you have life insurance?  9.     Are you confident in your coverage amount?  10.  Do you know what is needed in Life coverage and for how long?  11.  Are you adequately protecting your greatest asset - your income - in the case of a long-term disability? 12.  Will you know when you can retire? 13.  Do you know your monthly expenses? 14.  Do you know what your income floor needs to be in retirement?   I am, of course, asking this in a bit of a tongue-in-cheek manner because I would venture to guess that those without a financial advisor would not know the answer to these questions.   Financial advisors charge their fees for the service they provide to you, which helps you answer important questions about your situation and helps solve those problems.   Value Add   Is value truly being added to my situation?  Well, Vanguard believes so, and so do we.  On investments alone, having a financial advisor to navigate the emotions and the cyclical nature of investing can add value.  Some clients balk at the idea of paying 1.25-1.5% of their assets on an annual asset fee.  Here is why that is not the right perspective:   Vanguard uses variables like suitable asset allocation using broadly diversified funds/ETFs, Cost-effective implementation (expense ratios), rebalancing, behavioral coaching, tax allowances and asset location, withdrawal order for client spending, and total-return versus income investing.  These variables, when deployed by a financial advisor, have been shown to improve average annual returns by about 3%   Financial Planning & Asset Management   Financial Planning and asset management often go hand in hand.  In the top paragraph, entering a financial planning conversation would many times include getting those numerous questions answered.  Sometimes people want to limit their scope of engagement to investment advice.   Find a financial advisor who can do both.  If you want to simplify your relationship with investment management, great.  If you just want advice on how to get out of debt, all the better.  If you want a truly comprehensive financial plan—one that addresses investments, retirement, insurance, taxes, and estate planning—you’ll have every aspect of your financial life covered and your biggest questions answered.   Many times, firms include financial planning with their asset management fee.  Sometimes companies charge separately for a financial plan, and sometimes that is your only fee, a fee for advice.   Conclusion   There are many questions to ask when finding the right advisor, and my hope with this article is for you to be better prepared when deciding whether to hire or not to hire that financial advisor.   Hiring a financial advisor would be worth it  -  coming from a financial advisor (there is my conflict of interest).  All jokes aside, considering the 3% potential value add from your investments and the comprehensive review of your financial life by a professional, it is more than worth it.   If you're unsure where to start, don’t hesitate to contact one of our financial advisors  today. Having a team of advisors on retainer and speed dial to help navigate your financial life is quite a benefit.  Take advantage of this service today.

Understanding the 50/30/20 Budget Rule   The 50/30/20 budget rule is a straightforward framework for managing your finances. It divides your income into three main categories: 50% for needs, 30% for wants, and 20% for savings and investments— assuming you are debt-free .   For instance, if you take home a monthly paycheck of $5,000, your budget will look like this:   - $2,500 (50%) for Needs: This covers essentials such as housing, utilities, groceries, and transportation. - $1,500 (30%) for Wants: This includes non-essentials like dining out, entertainment, and hobbies. - $1,000 (20%) for Savings and Investments: This amount is crucial for building wealth and planning for retirement.   If your financial situation only allows for an 80/20 budget, you may need to adjust your spending priorities. In this case, 80% of your income is allocated to needs and wants, while 20% goes toward savings and investments. Using the same $5,000 paycheck example, your budget could be structured as follows:   - $3,250 (65%) for Needs: Adjusted to ensure all essentials are met. - $750 (15%) for Wants: A reduced amount to accommodate higher needs. - $1,000 (20%) for Savings and Investments: This portion remains unchanged, as prioritizing your future financial health is vital.   Given the rising cost of living, it may be necessary to trim your wants further and allocate more of the 80% to your essential needs. However, the 20% earmarked for savings and investments should always be a priority, as it supports your retirement goals and wealth-building efforts.   If you need help determining your budget, calculating specific amounts, or categorizing your expenses, reach out to our Financial Coaching Team, Joe Mains   or Jonah Kearns . Additionally, if you’re looking to plan for retirement, don’t hesitate to contact one of our SmartVestor Pros   to get your plan underway!

For high-income earners, backdoor Roth IRA contributions   are a powerful way to build tax-free retirement savings. On a separate note, rolling over an old 401(k)  into an IRA can also be a smart move for better investment options and lower fees. However, when these two strategies intersect, the outcome can either work in your favor—or create an unexpected tax bill—understanding why  is critical before making a move. The Backdoor Roth in Brief The backdoor Roth IRA allows taxpayers above income limits to fund a Roth account by: Making a non-deductible contribution to a traditional IRA. Converting that contribution to a Roth IRA. Because the contribution is after-tax and converted quickly, the process is usually tax-free. This strategy is popular because Roth accounts offer tax-free growth and no required minimum distributions (RMDs), making them a cornerstone of long-term planning for high earners. Where Things Go Wrong Rolling a 401(k) into a traditional IRA introduces pre-tax dollars into the mix. When you later convert funds to a Roth, the IRS applies the  pro-rata rule (aka the aggregation rule)   across all your IRAs—not just the one you contributed to. Formula:  after-tax contributions ÷ total IRA balance = tax-free percentage. Example: You contributed $7K this year in after-tax contributions to your Traditional IRA to then “backdoor” to your Roth IRA You also made a $100K pre-tax rollover from an old employer into your Traditional IRA, or even a separate Rollover IRA Only about 6.5% of your conversion is tax-free, and 93.5%  of your conversion is taxable! This could turn what should have been a tax-efficient move into a costly surprise. Why Growth Makes It Worse A 401(k) rollover doesn’t just bring contributions—it brings years of market growth. That growth, while positive for your portfolio, increases the taxable portion of any Roth conversion. The larger your IRA balance, the smaller the tax-free percentage of your conversion. This is why timing and account structure are crucial when combining these strategies. When a Rollover Still Makes Sense Despite the risks, there are situations where rolling over a 401(k) into an IRA is still beneficial: Better investment options or lower fees:  Many 401(k) plans have limited menus or high costs. Account consolidation:  Combining multiple old retirement plans into a single IRA can simplify management and bring peace of mind, which for some investors may be a higher priority than optimizing for tax efficiency. Strategic Roth conversion:  Converting the entire IRA in a low-income year can make sense for long-term tax-free growth. No future backdoor Roth plans:  If you don’t intend to use the backdoor Roth strategy in the future, the pro-rata issue becomes irrelevant! The Bottom Line Both strategies can be valuable—but not always together. Before rolling over a 401(k) or executing a backdoor Roth, consult a qualified financial professional .  Proper planning can help you avoid unnecessary taxes and make the most of these powerful tools.

We are honored to share that Whitaker-Myers Wealth Managers has once again been named to ETF.com ’s prestigious list of the “Top 50 RIA Firms in the United States.” This marks the second consecutive year that our firm has received this recognition, a testament to our continued commitment to expertise, growth, and leadership in helping clients navigate the ever-evolving world of Exchange Traded Funds (ETFs) . ETF.com ’s annual Top 50 list highlights advisory firms across the country that have demonstrated exceptional knowledge and application of ETFs in portfolio construction, as well as meaningful impact in serving their clients. To be included among such an accomplished group of peers is both humbling and energizing for our team. What This Recognition Means for Our Clients At Whitaker-Myers Wealth Managers, we believe investing doesn’t need to be complicated—it needs to be intentional. ETFs provide us with a powerful, flexible, and cost-efficient tool to help our clients pursue their financial goals. This award validates the work we do every day to combine world-class research, tax-aware planning, and personalized advice with ETF-based strategies that help clients invest wisely for the long term. This honor also reflects our mission: to serve with the heart of a teacher , providing clarity and confidence in a complex financial world. Recognition from ETF.com affirms that our approach is not only resonating with clients, but also making a mark across the broader advisory industry. Looking Ahead As we celebrate this recognition, our focus remains on the future. With markets constantly evolving, we will continue to adapt, innovate, and stand alongside our clients with wisdom, discipline, and unwavering fiduciary care. We are deeply grateful to our clients, colleagues, and partners who make this possible. Thank you for trusting us with your financial journey. About the ETF.com Top 50 List All brokers and RIA firms included in ETF.com ’s Top 50 RIA Firms list have been verified through FINRA/SEC. The ETF.com Leaders list is meant to be a starting point for all potential clients searching for an advisor that utilizes ETFs in portfolios. Clients are encouraged to vet credentials and interview multiple professionals to get a full sense of their approach to investing, financial planning, and more. While advisors and firms have been checked, clients should double-check any and all metrics for any advisor they consider, as they were self-reported. No fee or compensation was provided or required for consideration or inclusion on this list. All individuals or entities listed were selected based solely on merit, publicly available information, and/or information provided directly by applicants. 👉 You can view the full list of honorees here: ETF.com Top 50 Firms .

September signals a new school year and, for parents of high school seniors, an important crossroads: preparing your student for college  without sabotaging your own financial future. The first step is to know the real cost of college—before anyone signs a single loan document. Use each school’s Net Price Calculator  to estimate out-of-pocket costs and build your family’s budget around that number. Only consider schools you can pay for with a mix of savings, cash flow, scholarships, and grants. Steer clear of loans whenever possible; debt is not a graduation gift. Encourage your student to meet with their school counselor early. Counselors can guide them through applications, deadlines, and financial aid options. Create a written calendar of every key date—test registrations, application cutoffs, scholarship deadlines—so nothing sneaks up on you. Test scores still matter, especially for merit scholarships. If your student’s SAT or ACT score could use a boost, schedule a retake this fall and pair it with focused practice. Scholarships beat loans every time. Get ready to file the FAFSA as soon as it opens, and if a college requires the CSS Profile, gather documents ahead of time. Some schools may still offer tuition breaks for families with multiple students in college, so be sure to ask. Ramsey Tip: If a school’s cost doesn’t fit your budget, move on—no “dream school” is worth decades of debt. Finally, avoid letting interest pile up. If you or your student already have federal loans in process, make small interest payments as soon as the funds are disbursed. Better yet, work hard to cover college without borrowing: apply for scholarships, work part-time, and choose affordable schools. College is a launch pad, not a financial anchor. Plan wisely, live on a written budget, and teach your student to pursue higher education with clear eyes and a debt-free mindset. Enjoy these last warm weeks knowing you’re steering your family toward financial peace.