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Author: Emily Promise

Planning for Intergenerational Wealth Transfer

Planning for Intergenerational Wealth Transfer

Posted on by Emily Promise

When most people think about wealth, they focus on the present – how to earn it, grow it, and protect it. But for many families, true financial success is measured by something greater: the ability to pass on not just assets, but also values, opportunities, and security to future generations. Therefore, intergenerational wealth transfer goes beyond writing a will. It involves creating a comprehensive strategy that aligns with your family’s goals, reduces risk, and ensures your legacy stands the test of time. 

Defining Your Legacy Beyond Wealth

Of course, wealth transfer involves money, but additionally, it involves the principles and priorities you want to instill in future generations. This could mean teaching children the importance of philanthropy, encouraging smart financial decision-making, or setting up family traditions that carry meaning across decades. Some families even formalize their legacy through mission statements or family councils, which can help align heirs around shared goals. This holistic approach ensures your wealth is not only preserved but also used in ways that reflect your values. 

Estate Planning Essentials

At the core of any intergenerational wealth transfer strategy is a strong estate plan. Documents like wills, trusts, and powers of attorney are foundational for directing how assets are distributed and ensuring your wishes are carried out. 

For high-net-worth individuals, trusts often play a particularly powerful role as they can minimize estate taxes, avoid probate, and provide protections that help shield wealth from creditors or mismanagement. Reviewing and updating estate planning documents regularly is key. Life changes such as marriage, births, and business transitions can significantly affect your legacy plan!

Tax-Efficient Wealth Transfer Strategies

A successful wealth transfer plan not only considers what is passed down, but also how. Without proper planning, estate taxes and other liabilities can erode the legacy you’ve built. 

One way to help reduce the taxable estate is through strategic gifting. Annual exclusion gifts, leveraging the lifetime exemption, or even establishing family limited partnerships (FLPs) are all ways to maximize tax efficiency. For families interested in philanthropy, charitable giving strategies, such as charitable trusts or donor-advised funds, can also provide dual benefits: reducing taxes while supporting causes that are important to you. Remember: these strategies are complex, and professional guidance is essential to ensure they are structured effectively. 

Incorporating Philanthropy

Many families choose to make charitable giving part of their intergenerational wealth transfer plan. Beyond tax benefits, philanthropy can help preserve family values by encouraging heirs to think about impact, stewardship, and community responsibility. Options like donor-advised funds or family foundations provide flexible ways to involve the next generation in giving decisions. This not only helps instill important financial values but also strengthens family bonds by creating a shared purpose. 

Preparing the Next Generation

One of the most common reasons wealth transfer fails is a lack of preparation among heirs. Passing down wealth without education and guidance can lead to misuse, conflict, or even financial loss. 

Preparing the next generation involves more than a conversation about inheritance. It is critical to provide financial literacy, engage heirs in family decision-making, and create opportunities to learn about investing, budgeting, and philanthropy early. These steps help ensure your legacy endures beyond assets, fostering a sense of responsibility and purpose. 

Working with Professionals

A successful intergenerational wealth transfer requires coordination in which financial advisors, estate planning attorneys, and tax professionals can each play a critical role. By working with a team that understands both your financial situation and your family dynamics, you can create a plan that is comprehensive, efficient, and future-focused. At Blakely Financial, we take a collaborative approach, helping families structure wealth transfer strategies that protect assets, minimize taxes, and align with their personal values. 

Are you ready to create a foundation that empowers future generations to thrive? Contact the Blakely Financial team today to take the next step in planning your legacy. Together, we can create a wealth transfer strategy that protects your wealth and sets your family up for success for generations to come. 

 

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
Financial Planning Tips: From Residency to Retirement

Financial Planning Tips: From Residency to Retirement

Posted on by Emily Promise

Medical training prepares you to treat complex clinical cases —but often your education does not include financial planning topics. As a resident, you’re navigating the exciting beginning of your career, often alongside long and exhausting hours. With so much on your plate, there’s rarely time to think about managing your limited budget, student loans, or long-term financial goals.  As you progress in your career, you may take on leadership positions, teaching responsibilities, or become more involved in your medical community, all of which can add to an already demanding schedule.

That is why laying the groundwork now with simple habits and clear strategies can make all the difference. The earlier you start, the more control and confidence you will have over your financial future. Let’s explore practical ways to build a strong foundation so you can focus on what matters most.

The following three tips will help you take control of your finances and put your income to the best use. Whether you are getting your first paycheck or nearing retirement, these tips apply to you just on varying levels. 

  • Understand Your Financial Picture 
  • Invest in Yourself and Your Future
  • Protecting Your Future

Understand Your Financial Picture

Start by getting clear on where you stand. Ask yourself:

  • How much are you earning versus spending? 
  • What does your personal balance sheet look like? (Savings/Assets vs. Student Loans/other Debts)
  • What are your fixed monthly expenses? (Think housing, utilities, food, transportation, student loan payments, etc.)

A budgeting tool such as Rocket Money or Quicken Simplifi can help track your monthly cash flow. Knowing what is coming in and going out is the first step in building any financial plan.

Once you have a handle on your income and expenses, the next step is to address any major debts. For many physicians, the most significant of these is student loans. On average, physicians entering residency in the U.S. carry about $200,000 to $250,000 in student loan debt. While in residency, you are often allowed to defer your loan repayments. 

As you begin to think about repaying your student loans, there are various repayment options, such as the SAVE Plan, which keeps monthly payments low based on your income; this is an income-driven repayment plan. If you work for a nonprofit hospital, you may also qualify for Public Service Loan Forgiveness (PSLF), which forgives your remaining loan balance after ten years of qualifying payments and service.

Invest in Yourself and Your Future

Financial success is not about perfection. It is about consistency. Set up systems to support your goals. Automate your savings, schedule monthly financial check-ins, and connect with a financial professional who understands the unique path of a medical career.

Starting early gives you more options, greater confidence, and long-term flexibility. You are already building a future that helps others. Now is the time to invest in yourself.

  • Develop a stepped savings plan that increases over time. Small contributions can make a lasting impact. Begin with automatic savings to both retirement accounts and outside investment accounts. Establishing this habit early will make it easier to increase your savings as your income grows, helping you build wealth steadily over time.
    • Set up automatic savings
      The best savings strategy is “out of sight, out of mind.” Open a high-yield savings account and schedule monthly transfers. Even $50 a month adds up over time.
    • Contribute to retirement accounts
      Review your employer benefits packet. Does your employer offer a 401(k), 403(b), or 457 plan? Contribute a portion of your paycheck to that account. If there is an employer match, make sure you are contributing enough to get the full match. This is essentially free money for your future.
  • Avoid lifestyle inflation: As you progress in your career, start increasing your contributions to your savings vehicles as your income increases. Resist the urge to immediately upgrade your car, apartment, or wardrobe. Keeping your expenses stable and living below your means will help you build wealth faster.
  • Ensure that your assets are diversified: both in type of assets (investments, real estate, etc.), but also in tax-form. You want to make sure you set up different tax buckets – such as ROTHs, Brokerage Accounts, and then Pre-tax retirement savings – this gets you all 3 tax buckets! 

Protect Your Future

Your ability to work and earn is your most valuable asset, and it is something you will want to protect. Protecting your future goes beyond insurance coverage, make sure you have a proper estate plan in place.

Here is what to consider:

  • Disability insurance: Look for a policy with own-occupation coverage, which pays benefits if you cannot work in your specific medical specialty, even if you can work in another field.
  • Life insurance: If you have dependents or co-signed loans, a term life insurance policy provides peace of mind by ensuring those obligations are covered if something happens to you.
  • Estate Planning: It is important to make sure that you have the proper documentation in place in case something were to happen to you. This includes basic estate documents, such as a Will, Power of Attorney, and Health Care Power of Attorney. You will also want to make sure that beneficiaries are listed on all of your investments, retirement accounts, and any life insurance policy. 

Your career in medicine is just beginning. By making intentional financial choices now, you are giving yourself the freedom to grow personally, professionally, and financially for years to come. Starting early and staying consistent will empower you to build a strong financial foundation so you can focus on what matters most: your patients, your passions, and your future.

Want to Talk One-on-One?

If you’d like to discuss any of these topics further, contact Emily Promise at Blakely Financial. AMWA members receive a 15% discount on our services. We’re here to help you build a financial plan that supports your career and your life.

Email: emily@blakelyfinancial.com  |  erin@blakelyfinancial.com
Phone: (336) 885 – 2530
Website: https://blakelyfinancial.com/

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
The Million-Dollar Question: How Much Do You Really Need to Retire?

The Million-Dollar Question: How Much Do You Really Need to Retire?

Posted on by Emily Promise

If you’ve ever wondered how much you need to retire, you’re not alone. If you Google this question, you’ll find a wide range of answers. So, how much do you need to retire? Some sources suggest that $500,000 might be enough, while others claim that $1.26 million is the new “magic number” for retirement in 2025. So, which is it?

The truth is, neither Google nor AI can give you a one-size-fits-all answer – because retirement planning is deeply personal. Your ideal retirement number depends on many individual factors, and what works for someone else may not work for you. Retirement isn’t just about covering the basics like housing, food, and healthcare. It’s also about your desired lifestyle. Do you envision traveling the world, picking up new hobbies, or helping fund your grandchildren’s education? These choices significantly impact how much you’ll need. For some people, $1 million may be more than enough to maintain a comfortable lifestyle. For others, particularly those living in high-cost areas or with expensive tastes, $10 million might still feel tight. This is where working through your own personal situation becomes invaluable – your vision for retirement will be translated into real numbers.

Several key factors influence how much you will need to retire comfortably, including: the age you wish to retire, your expenses – both necessities and desires, and the type of assets you retire on. The earlier you retire, the longer your savings need to last. Retiring at 55 requires a much larger nest egg than retiring at 70 because you’ll have more years to fund without a paycheck. Not all assets are created equal. Some people retire with the bulk of their wealth in retirement accounts like IRAs and 401(k)s, while others rely on brokerage accounts, real estate, or even rental income. The types of assets you hold – and how accessible they are – play a big role in your retirement plan. This relates to the tax nature of the different assets – which is a whole separate conversation! 

Another often-overlooked aspect is whether you want to leave a financial legacy. The popular book Die With Zero by Bill Perkins encourages people to spend their wealth while they’re alive, aiming to maximize life experiences instead of accumulating money for the sake of leaving an inheritance. But that philosophy isn’t for everyone. Many families still place a high value on leaving something behind for their children, grandchildren, or charitable causes. Your personal beliefs about legacy will influence how much you save, how you spend, and how you pass on your wealth.

In previous generations, many workers could count on employer-provided pensions to fund a significant portion of their retirement. Today, pensions are increasingly rare. The shift to 401(k)s and other self-funded accounts means the responsibility to save and invest wisely has fallen squarely on the shoulders of individuals.

This new reality makes careful retirement planning more important than ever.

So, how can you figure out your own “magic number” for retirement? Start with these simple steps. First, determine your estimated annual expenses. Next, envision what you want your retirement to look like – your lifestyle, activities, and goals. Finally, identify areas where you could be flexible or make adjustments if needed. A word of caution: be conservative with your estimates. It’s wise to overestimate your expenses and underestimate your asset pool. You’d rather have more than enough than risk falling short, especially if you live longer than expected.

 

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
Lifestyle and Wealth: Aligning Personal Goals with Your Financial Plan

Lifestyle and Wealth: Aligning Personal Goals with Your Financial Plan

Posted on by Emily Promise

When most people think about financial planning, they often focus on numbers: how much is in the retirement account, what the market is doing, or whether they’re on track for a particular net worth. But true wealth is about using your financial resources to support the life you want to lead, not just accumulating financial assets. At Blakely Financial, we believe your financial plan should reflect your values, lifestyle, and long-term goals as much as your financial data. 

Defining What Wealth Means to You

Before building your financial plan, it’s important to define what wealth actually means in the context of your life. For example, financial security means different things to different people. For one individual, it might be the freedom to retire early and travel the world, while for another, it might be about creating opportunities for their children or supporting a cause deeply personal to them. Take a moment to consider:

  • What does financial independence look like to you?
  • What life experiences or goals matter most to you?
  • What kind of legacy do you hope to leave for your loved ones or community?

When your financial plan is rooted in these personal priorities rather than generic benchmarks, it becomes a tool to help you live intentionally, not just accumulate wealth for its own sake. 

Setting Lifestyle-Driven Financial Goals

Once you’ve defined what matters most, the next step is setting clear, lifestyle-driven financial goals for yourself. These goals are focused on enabling the life experiences and milestones that are important to you.

Examples may include:

  • Planning for early retirement to spend more quality time with family.
  • Finding annual international travel or extended sabbaticals.
  • Contributing to causes you care about through charitable giving.
  • Saving for a child’s or grandchild’s education.
  • Building a financial legacy that supports multiple generations. 

Work with your financial advisor to ensure your financial plan prioritizes these goals, making them measurable and achievable, while balancing short-term needs and long-term aspirations. 

Building a Financial Plan That Supports Your Lifestyle

A lifestyle-focused financial plan integrates all aspects of your financial life to support your personal goals. Some of the essential components include:

  • Cash Flow Management: Ensuring your spending habits and savings strategies align with your priorities, leaving room for both day-to-day enjoyment and future aspirations.
  • Investment Strategy: Tailoring your portfolio to match your risk tolerance, time horizon, and desired lifestyle. For some, this may mean prioritizing steady, conservative growth. For others, a more aggressive, growth-oriented portfolio. 
  • Tax Planning: Proactively managing taxes to maximize available resources, whether through tax-advantaged accounts, charitable giving strategies, or thoughtful estate planning.
  • Estate and Legacy Planning: Structuring your wealth to benefit your family, support philanthropic interests, and ensure your assets are distributed according to your wishes. 

Adjusting Your Financial Plan for Life’s Milestones and Unexpected Turns

Life isn’t static, and your financial plan shouldn’t be either. Major life events like marriage, divorce, career changes, health challenges, or economic shifts can all significantly impact your financial strategy. This is why it’s essential to work with an advisor who not only builds a strong foundational plan but also proactively adjusts it as your life evolves. 

The Role of a Trusted Financial Partner

Navigating complex financial decisions can be overwhelming, especially when those decisions are tied to personal goals and multi-generational planning. This is where a trusted financial advisor makes a difference! At Blakely Financial, an advisor’s role goes beyond managing investments. We serve as partners and problem-solvers, ensuring every financial decision supports the lifestyle and legacy you envision for yourself and your family. 

Our personalized, relationship-driven approach means we listen closely to what matters to you and craft strategies designed to help you pursue those goals with clarity and confidence. 

Your wealth should work for you, allowing you to live a life you love and a legacy you’re proud of. Whether you’re focused on securing an early retirement, creating opportunities for your children, or giving back to your community, Blakely Financial is here to help you align your financial plan with your personal vision. If you’re ready to start building a financial strategy that supports your life’s priorities, reach out to our team today. 

 

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
Navigating Divorce with Financial Confidence

Navigating Divorce with Financial Confidence

Posted on by Emily Promise

Divorce is one of life’s most challenging transitions, affecting many aspects of your life, including your emotional well-being and your financial future. As difficult as the process can be, having a clear financial strategy can help you regain control, protect your assets, and plan for the next chapter of your life with confidence. At Blakely Financial, we’re committed to helping clients navigate these pivotal moments with clarity and purpose. In this blog, we’re sharing ways you can approach the financial side of divorce with confidence and care. 

Understand Your Financial Picture

Before you can make informed decisions, it’s essential to know exactly where you stand financially. Start by gathering important financial documents, including:

  • Bank and investment account statements
  • Tax returns from the past several years
  • Retirement plans
  • Debt records, including mortgages, credit cards, and loans
  • Property titles
  • Insurance policies

You will also want to create a comprehensive list of your assets and liabilities, noting which are jointly owned and which belong to you individually. Understanding your current household budget and anticipating how it will change post-divorce is key to protecting your financial well-being. 

Prioritize Immediate Financial Needs

While the long-term strategy is important, addressing immediate financial needs ensures your day-to-day security. Make sure you have access to your personal bank accounts and an emergency fund to cover essentials like housing, childcare, and legal expenses. If necessary, consider freezing joint accounts or credit lines to prevent any unauthorized activity. Also, review your insurance coverage, including health, life, and disability insurance, to make sure you are adequately protected during and after the divorce process.

Work with Financial & Legal Professionals

Divorce involves legal complexities and financial decisions that can have lasting effects, so we recommend assembling a trusted team to guide you through the process. This team should include a divorce attorney, a financial advisor, and, when appropriate, a Certified Divorce Financial Analyst® (CDFA®). 

At Blakely Financial, our advisors help clients model different settlement options, analyze the long-term impact of asset division, and develop a comprehensive plan for their new financial reality. Collaborative financial planning during a divorce can help prevent costly mistakes, preserve long-term financial health, and provide reassurance during this uncertain time. 

Divide Assets Strategically

When it comes to dividing assets during a divorce, it may seem obvious to just split everything down the middle, but in reality, it is important to instead understand how each asset serves your future. Think about the tax implications, growth potential, and liquidity of each asset. For example:

  • Retirement accounts may be subject to taxes and penalties if withdrawn early.
  • Real estate may come with ongoing maintenance costs and property taxes.
  • Investment accounts can offer growth opportunities but may fluctuate in value.

Work with your financial advisor to negotiate an asset division that supports your personal goals and financial stability. It’s also important to update estate planning documents, including wills, powers of attorney, and beneficiary designations, to reflect your new circumstances.

Plan for Your New Financial Future

As your life changes, so should your financial plan. Once the divorce is finalized, it’s time to set new, realistic short-term and long-term financial goals for yourself. To do this, revisit your retirement plan contributions, insurance coverage, and estate planning documents to ensure they align with your updated financial picture. Additionally, adjust your investment strategy to reflect your new circumstances, risk tolerance, and retirement timeline. Working with a financial advisor throughout this process can help you create a clear, realistic roadmap for your future. 

Maintain Financial Confidence Moving Forward

Your financial journey doesn’t end when the divorce papers are signed. Periodic financial check-ins are essential to track progress toward your goals, adjust plans as needed, and manage risk as life continues to evolve. With the right support and planning, financial independence and long-term security are within reach.

 

Divorce is never easy, but having a dedicated financial partner can make a meaningful difference. At Blakely Financial, we’re here to help you navigate life’s transitions with clarity, compassion, and confidence. If you’re going through a divorce or planning for one, our team is ready to provide personalized financial guidance tailored to your needs. Contact us today to learn more about how we can support you through this important chapter!

 

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.

Upcoming Change to the Ownership of Commonwealth Financial Network®

Posted on by Emily Promise

At Blakely Financial, maintaining the strong relationships we’ve built with each of our clients remains our highest priority. While Commonwealth is undergoing a change in ownership, I want to personally assure you that this will not impact the way we serve you. Our team remains the same, your investment strategy stays intact, and our commitment to your financial well-being remains as strong as ever. As part of our ongoing mission to serve you better, we are embracing new technologies that will enhance our ability to provide timely insights, streamline communication, and deliver even more personalized service. We’ll continue to keep you informed every step of the way, and if you have any questions or concerns about this transition, my team and I are always here to talk you through it. Most of the changes will occur behind the scenes and should be seamless for you.

 

May 19, 2025

Re: Consent to Assignment of Investment Advisory Agreement

Dear Valued Client:

We are writing to inform you of an upcoming change to the ownership of Commonwealth Financial Network® (“Commonwealth”). Through your financial advisor, Commonwealth serves as your investment adviser pursuant to an investment advisory agreement between you and Commonwealth.

In the second half of 2025, subject to customary approvals, Commonwealth’s parent company is expected to be acquired by LPL Holdings Inc. (“LPL Holdings”), the parent company of LPL Financial LLC (“LPL”), and a subsidiary of LPL Financial Holdings, Inc. (Nasdaq: LPLA), a Fortune 500 company. LPL, a registered broker/dealer and investment adviser, is a client-centric leader in wealth management, and provides an integrated platform of brokerage and investment advisory services.1

This ownership change may be deemed an “assignment” of your advisory agreement under the Investment Advisers Act of 1940, and, therefore, we are requesting your consent to the assignment. If applicable, we are also amending your existing advisory agreement with Commonwealth to provide that it may be assigned with your “negative” consent, which means the assignment will occur automatically unless you object. We want to assure you that the ownership change and assignment are not anticipated to result in a change to the personnel managing your account, your investment strategy, or the fees charged. The same team will continue to service your accounts with the same level of commitment and care.

If you object to the assignment or wish to terminate your advisory agreement, you must notify us before July 18, 2025, by emailing us at optout@commonwealth.com or writing us at Commonwealth Financial Network, Attn: Commonwealth Opt-Out, 29 Sawyer Road, Waltham, MA 02453-3483, including your name, address, and account number (if any). Please note that an objection will result in the termination of your advisory relationship, and we encourage you to speak with your advisor if you have any questions or concerns. Unless you contact us to object to the assignment or terminate your advisory agreement, your advisory relationship with your financial advisor and Commonwealth will continue in the same manner as before without interruption.

Further integration with LPL, including a change to account custodian, is not expected to occur until the second half of 2026. You will receive advance notice and additional details prior to this event.

We value your trust and look forward to continuing to provide you with investment advisory services. As always, should you have any questions, please contact your financial advisor.

Sincerely,

Trap Kloman

President and Chief Operating Officer

Commonwealth Financial Network®

 

1 For additional information regarding LPL and the transaction, please visit lpl.com. LPL’s press release announcing the transaction is available at lpl.com/news-media/press-releases/lpl-financial-to-acquire-commonwealth-financial-network.html.

Education Planning for the Next Generation: Strategic Wealth Transfer and 529 Investments

Education Planning for the Next Generation: Strategic Wealth Transfer and 529 Investments

Posted on by Emily Promise

One of the most powerful gifts you can give the next generation is the opportunity for a strong start. Whether thinking about your children’s future or your grandchildren’s, education planning is a strategic and meaningful way to pass on wealth, values, and financial stability. With the rising cost of education and evolving tax laws, thoughtful planning can ensure your financial support not only helps your loved ones today but also supports your long-term legacy. This is where 529 plans come in. 

Why Education Planning Belongs in Your Wealth Transfer Strategy

For high-net-worth families and individuals, wealth transfer is about building a legacy, not just numbers, and funding an education is one of the most impactful ways to do so. Helping a child or grandchild graduate debt-free opens doors for their future and reinforces a commitment to lifelong learning. 

Education planning also allows you to express your values while remaining strategic with your financial resources. It’s an opportunity to teach financial responsibility, support future goals, and make a lasting impact, all while benefiting from smart tax strategies. 

Understanding the 529 Plan Advantage

529 college savings plans are one of the most flexible and tax-advantaged ways to invest in education. These accounts allow your contributions to grow tax-deferred, and as long as withdrawals are used for qualified education expenses, they are completely tax-free. This includes tuition, room and board, books, and even some technology and equipment expenses.

Depending on your state, you may also receive a state tax deduction for your contributions. 529 funds are also flexible – they aren’t just for college anymore! Eligible expenses can now include K-12 education, certain vocational and apprenticeship programs, and more. 

Strategic Uses of 529 Plans for High-Income Earners

For high earners and legacy-minded individuals, 529 plans can serve a dual purpose:  education funding and wealth transfer. Here are some strategic uses of 529 plans you may consider:

  • Superfunding 529 Plans: One powerful strategy is “superfunding” a 529 plan. This allows you to contribute up to five years’ worth of gifts at once without triggering federal gift taxes. This is currently up to $95,000 per beneficiary for individuals or $100,000 for couples, and can significantly jumpstart the account’s growth potential. 
  • Maintaining Control and Flexibility: Unlike other forms of gifting, you retain control of the account and can change the beneficiary if needed. This flexibility is especially valuable for families with multiple children or grandchildren. 
  • Multi-Generational Planning: Some families are even using 529 plans to plan for future generations, opening accounts for grandchildren, or even children not yet born, to ensure education funding remains a part of the family legacy. 

New Rules, More Flexibility

Recent updates from the SECURE 2.0 Act have made 529 plans even more appealing: 

  • Roth IRA Rollovers: Unused 529 funds can now be rolled over into a Roth IRA for the beneficiary (subject to limits and requirements), reducing the risk of overfunding and offering an additional retirement boost. 
  • Expanded Qualified Expenses: The list of allowable education expenses has grown, offering more ways to use your savings efficiently.

These changes make 529 plans more versatile than ever and help ensure your contributions can serve multiple purposes over time. 

Integrating Education Planning with Your Broader Financial Plan

At Blakely Financial, we review education planning as a key part of a comprehensive financial strategy. From tax planning and retirement strategies to estate and legacy planning, we help our clients align their education goals with their full financial picture. We regularly review 529 plans as part of our ongoing planning process, helping you adapt to changes in tax law, family dynamics, or your financial priorities. 

Funding the next generation’s education is one of the most lasting and personal forms of wealth transfer. It’s a way to support your loved ones, reflect your values, and build a foundation for long-term success. Whether you’re just getting started or refining your existing strategy, our team at Blakely Financial is here to help. Let’s work together to create a plan that empowers the next generation and strengthens your legacy in the process. 

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation. 
The fees, expenses, and features of 529 plans can vary from state to state. 529 plans involve investment risk, including the possible loss of funds. There is no guarantee that an education-funding goal will be met. In order to be federally tax free, earnings must be used to pay for qualified education expenses. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10 percent penalty. By investing in a plan outside your state of residence, you may lose any state tax benefits. 529 plans are subject to enrollment, maintenance, and administration/management fees and expenses.
Financial Planning for Medical Professionals

Financial Planning for Medical Professionals

Posted on by Emily Promise

A medical career offers financial rewards, but also comes with unique challenges, from managing student loan debt to navigating complex tax situations and preparing for retirement. Unlike other professionals, physicians and medical specialists spend years in training, delaying peak earning potential, which makes strategic financial planning essential at every stage of your career.

No matter where you are in your medical journey, having a sound financial plan can help you build wealth, protect your income, and develop long-term financial security. In this blog, we’re breaking down key priorities in financial planning for medical professionals in each phase of your career.

Residency & Fellowship

During residency and fellowship, finances can feel tight. Limited income and high student loan balances make it crucial to budget wisely, manage debt efficiently, and protect your financial future.

Budgeting & Cash Flow Management

Creating and sticking to a realistic budget is essential at this stage. Residency salaries often don’t leave much room for discretionary spending, so tracking expenses and prioritizing necessities, such as rent, utilities, and loan payments, is key. Even small contributions to an emergency fund can make a difference.

Student Loan Repayment

Physicians often graduate with significant student debt. Explore repayment options, such as income-driven repayment (IDR) plans, refinancing, or Public Service Loan Forgiveness (PSLF) if you qualify. Making interest-only or small payments during residency can help reduce total loan costs over time. 

Insurance Coverage

Your most valuable asset is your ability to earn a high income in the future. Protect it by securing disability insurance, which can replace a portion of your salary if you become unable to work. Malpractice insurance is also essential, especially as you take on more responsibility in patient care. 

Early Career: Years 1-5 Post-Residency

After residency, income increases significantly, which can create a temptation to increase spending – a phenomenon known as “lifestyle inflation.” While it’s important to enjoy your hard-earned success, this phase should focus on building financial stability for the long term.

Income Management

With a jump in earnings, focus on using your new financial flexibility wisely. Pay down high-interest debt, such as credit cards or private loans, while continuing to grow an emergency fund covering three to six months’ expenses. 

Retirement Savings

This is the time to start maximizing retirement contributions. Many employers offer 401(k) or 403(b) plans, often with matching contributions. If you’re self-employed or have additional income, consider an IRA or a SEP IRA for tax-advantaged retirement savings. The earlier you start, the more you can benefit from compound interest. 

Tax Planning

As your salary rises, so does your tax burden. Work with a financial advisor or CPA to maximize deductions, utilize tax-advantaged investment accounts, and consider tax-efficient strategies to reduce liabilities. For those in private practice, structuring your business correctly can lead to substantial tax savings. 

Mid-Career: Years 5-20 Post-Residency

By mid-career, you are likely earning at your full potential, and wealth accumulation should be a primary focus. Your financial strategy should include investment growth, wealth protection, and long-term financial security.

Investment Diversification

Expanding your portfolio beyond traditional retirement accounts is essential for long-term growth. Consider a mix of stocks, bonds, real estate, and alternative investments to build wealth in a tax-efficient manner while managing risk. Talk to your financial advisor to decide which assets are best aligned with your risk tolerance and financial goals. 

Education Planning

If you have children, it’s time to start saving for their education. Tax-advantaged 529 plans can help fund college costs while allowing for tax-free growth and withdrawals for qualified expenses.

Practice Growth

If you own or are considering starting a private practice, this phase involves important decisions about business loans, partnerships, and operational efficiencies. Work with your financial team to optimize cash flow, manage business taxes, and plan for future expansion or succession. 

Late Career: 20+ Years Post-Residency

During the late career stage, financial planning should focus on preserving wealth, ensuring retirement readiness, and establishing a legacy. 

Retirement Planning

Now is the time to assess retirement readiness by evaluating savings, projected retirement expenses, and desired lifestyle. Consider downsizing debt and adjusting investments to align with your expected retirement date. Many physicians work longer than other professionals, but having a strong financial plan gives you the flexibility to retire when and how you choose.

Estate Planning & Wealth Transfer

Planning for your legacy involves more than just writing a will. Consider trusts, tax-efficient wealth transfers, and charitable giving strategies to preserve assets for your heirs and causes that matter to you. Proper estate planning ensures your wealth is distributed according to your wishes while minimizing potential tax burdens. 

Risk Management

As wealth grows, so does the risk of financial loss due to lawsuits, market fluctuations, or unforeseen circumstances. Review insurance policies, liability coverage, and investment risk exposure to ensure long-term financial security. 

At Blakely Financial, we specialize in working with medical professionals, providing personalized financial strategies tailored to the unique challenges of your career. Whether you’re just starting or planning for retirement, we’re here to help you build a strong financial foundation. Contact us today to schedule a consultation and start planning your future!

 

Diversification does not assure a profit or protect against loss in declining markets and cannot guarantee that any objective or goal will be achieved.
The fees, expenses, and features of 529 plans can vary from state to state. There is no guarantee that an education-funding goal will be met. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10 percent penalty. You may lose state tax benefits if investing in a plan outside your state of residence.
Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
Green Flags vs. Red Flags in Money Management

Green Flags vs. Red Flags in Money Management

Posted on by Emily Promise

When it comes to managing your money, small habits can make a big difference. The right financial decisions can set you up for long-term success, while poor habits can lead to stress and instability. Understanding the green flags as smart money moves and recognizing the red flags as warning signs of financial trouble can help you build wealth and avoid common pitfalls. Let’s break down the money management habits that can help or hurt your financial future.

Financial Green Flags: Smart Money Management Moves

These habits signal financial stability, confidence, and long-term success:

1. Paying Yourself First

A major sign of financial wellness is prioritizing savings before spending. Instead of waiting to see what’s left at the end of the month, set aside money for savings and investments first. Whether for an emergency fund, a home purchase, or retirement, prioritizing saving ensures you’re consistently building wealth.

2. Automating Your Finances

One of the simplest ways to stay on top of your finances is automation. Setting up automatic bill payments and savings contributions helps you stay consistent, avoid late fees, and grow your wealth without having to think about it. Automation takes the guesswork out of financial management, allowing you to focus on your long-term goals. 

3. Setting Financial Goals

Having a clear plan for your finances is a major green flag in money management. If you’re working toward retirement, a large purchase, or a long-term investment strategy, setting and tracking financial goals keeps you focused and on track. A plan gives your money purpose and helps you measure progress along the way. 

Financial Red Flags: Habits to Watch Out For

These money management habits can signal financial instability and lead to long-term challenges:

1. Living Paycheck to Paycheck

If all of your income goes directly to expenses without any savings cushion, it can be a sign of financial strain. Without an emergency fund or proper savings, you are left vulnerable to unexpected expenses, like car repairs or medical bills, which can create serious stress. Even small, consistent savings deposits can help break the cycle and build financial security over time. 

2. Ignoring High-Interest Debt

Credit card debt and high-interest loans can quickly spiral out of control if left unchecked. A red flag in money management is carrying large balances without having a repayment plan. Prioritizing debt payoff, starting with the highest interest rates first, can save thousands in interest and free up money for other financial goals. 

3. Skipping Retirement Savings

Delaying retirement contributions means missing out on valuable compound growth. Many people put off saving for retirement, thinking they’ll catch up later, but the earlier you start, the more you benefit. Even small contributions now can grow significantly over time, ensuring financial security in the future. 

Good financial habits take time, but small changes can have a large impact. If you recognize red flags in your own money management, it’s never too late to adjust course. Building wealth and financial stability starts with small, intentional decisions. 

If you are looking for guidance in creating a strong financial strategy, Blakely Financial is here to help. Contact us today to connect with a trusted advisor and get on the right track for a confident financial future!

 

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
The Pinwheel of Financial Wellness

The Pinwheel of Financial Wellness

Posted on by Emily Promise

January is Financial Wellness Month and the start of a new year – the perfect time to focus on and evaluate your financial health. Our pinwheel highlights the key areas we cover to create a comprehensive plan for every client at Blakely Financial. From investing to retirement and beyond, we make sure every piece of your financial wellness is in place. 

Budget Planning

When creating a comprehensive financial plan, it is important to begin by discussing your goals. Are you saving for college? Preparing for retirement? Looking to purchase a second home, or maybe remodel your kitchen? There is no one-size-fits-all plan for your finances!

Based on your goals, your financial advisor will help you create a budget to provide the confidence and clarity you need to relax and enjoy your years ahead while working towards your goals. They will work with you every step of the way to manage your estate, prepare your finances to support the people you care about most, and strengthen your financial legacy. 

Employer-Sponsored Retirement Plan

Take full advantage of any retirement plans offered by your employer. Some plan options may include 401(k)s, Roth IRAs, SEPs, and more. When choosing the right employer-sponsored plan for you, there are several elements to consider:

  • Does your employer offer a contribution match? If so, are you leveraging it properly?
  • How far away from retirement are you?
  • Are you saving enough to maintain your lifestyle during retirement?

It is important to fully understand all of your retirement plan options to maximize your savings. Sit down with your financial advisor to decide which option is best for you and your unique financial situation.

Life Insurance

No matter your current stage in life, the best thing you can do for yourself and your loved ones is to be prepared for anything life throws at you. Your financial advisor is here to help you prepare for the unexpected. They will help you create a comprehensive plan including life insurance options specific to your overall needs to protect your family’s financial future. 

Education & College Planning

Do you lay awake at night worrying about the cost of your children’s education? You are not alone! Planning college funds and paying for private schools can be intimidating. Meeting with a financial advisor can help you get started with a strong financial plan factoring in education and college planning, so you can sleep more soundly. By starting early, you can take advantage of tax-advantaged savings options like 529 plans, which grow over time to help offset rising tuition costs.

Estate Planning

Spending time now to properly plan for the future can provide financial security for your family and alleviate any stress you may have about the distribution of your assets. Although discussing end-of-life arrangements is not always comfortable, estate planning is essential to a sound financial plan. Working with your financial advisor along with an estate attorney can help you plan and preserve the legacy you have worked so hard to build. By incorporating strategies such as truss or gifting, you can ensure your assets are passed on efficiently and according to your wishes. 

Tax Planning

Properly planning your taxes is a major aspect of your financial wellness. This means taking advantage of all available deductions, optimizing your contributions, and more. Start thinking about what can be done now to save yourself from stress later on. Keep track of dates for your deductions, contributions, and donations. Consult a tax professional for guidance on your specific tax situation and for policies and regulations that may pertain to you. 

Health Care

As we age, the cost of health care rises significantly, making it essential to factor into your financial wellness and comprehensive financial planning. Consider expenses like premiums, out-of-pocket costs, and long-term care. Additionally, you may want to consider opening a Health Savings Account(HSA) if eligible, as it offers tax advantages and can be used to cover medical expenses in retirement. A trusted financial advisor can walk you through your options to help you allocate your funds wisely and ensure you and your family’s healthcare needs are covered without compromising your financial goals. 

Long-Term Care

Setting funds aside for long-term care in old age is often overlooked, but it is an integral part of any well-rounded financial plan. Long-term care insurance may be a practical solution to funding care needs, whether for at-home care or a nursing home, providing peace of mind for you and your loved ones. This type of insurance can also be a vital part of your estate planning, talk to your financial advisor to evaluate your options and ensure you are prepared.    

Social Security Optimization

Are you making the most of your social security benefits? To optimize your benefits you may want to consider:

  • Delaying claiming past full retirement age for higher payments
  • Coordinating spousal benefits strategically
  • Planning for potential benefit taxes based on your income

If you receive social security benefits, you can expect them to increase by 2.5% due to a cost-of-living adjustment in 2025. Limits for taxable earnings and income thresholds can also change year-to-year, so be sure to sit down with your advisor to see how these changes impact you and your finances. 

Retirement Income

Planning your retirement income is essential to ensuring your savings last throughout your golden years. An experienced financial advisor can help you develop a strategy to maximize income, minimize taxes, and meet your goals. Key considerations include creating a withdrawal strategy, managing Required Minimum Distributions (RMDs), factoring in inflation, and diversifying income streams. By regularly reviewing your spending patterns and income strategy, you can enjoy a fulfilling retirement with confidence!

A sound financial plan should include all of these aspects to ensure your long-term financial security. No matter your goals, you have a team behind you at Blakely Financial. Take the first step toward your financial wellness journey and contact us today!

 

529 plans involve investment risk, including the possible loss of funds. There is no guarantee that an education-funding goal will be met. In order to be federally tax free, earnings must be used to pay for qualified education expenses. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10 percent penalty. By investing in a plan outside your state of residence, you may lose any state tax benefits.
Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.