Emily Promise, Author at Blakely Financial

Your Financial Planning Roadmap

Posted on October 2, 2024October 4, 2024 by Emily Promise

World Financial Planning Day falls on October 2nd, making it a great time to evaluate your financial health. No matter where you are on your financial journey, having a solid financial planning roadmap is key to reaching your goals. From your 20s to your 50s and beyond, each phase of life comes with new financial stops and important decisions to be made. Explore the various phases of your financial planning roadmap and the actions you can take within each stage to secure your financial future.

Starting Out (20s – 30s)

The first phase of your financial planning roadmap covers your 20s and 30s, focusing on building a foundation for a solid financial future with budgeting, saving, and planning for future financial goals like buying a home or starting a family. There are a few key steps you should take during this phase, including:

Build an emergency fund with 3-6 months of living expenses. Even minor unexpected expenses can significantly impact your finances if you’re unprepared!
Start contributing to retirement accounts like a 401(k) or IRA to benefit from compound interest. Take advantage of your employer’s 401(k) match if offered. There are quite a few options available when it comes to saving for retirement, so sit down with your financial advisor to review the specifics to make the most of your money.
Pay down high-interest debt, such as credit cards or student loans to improve your credit and minimize your total amount paid over time.
Set financial goals, such as saving for a home or future family needs. Having goals allows you to track your progress and adjust your financial actions as needed.

Building Wealth (30s – 40s)

The next stage of your financial roadmap takes place in your 30s and 40s and is all about growth and building on the foundation you have already set. Whether you are focused on career advancement, saving for a home, or planning for your family’s financial future, this phase is a critical time for making smart financial moves and fine-tuning your financial goals. During this stage, you should:

Maximize retirement contributions and take full advantage of employer matches. As you advance in your career and your annual earnings increase, you may be able to make additional contributions to your retirement fund, further securing your and your family’s financial future.
Diversify your investment portfolio to balance growth and risk. Consider stocks within different industries, bonds, real estate, and other investment opportunities to improve your portfolio. You never want all of your eggs in one basket!
Set up or review life insurance to protect your family’s financial future. It is important to have a plan in case anything happens to you and your loved ones unexpectedly.

Preparing for Retirement (50s – 60s)

In your 50s and 60s, it’s time to focus on securing your financial future and preparing for retirement. Whether you are paying off your mortgage, planning for healthcare, or making the final push toward your retirement savings goals, this stage is all about making sure you’re set for the years ahead. This phase of your financial roadmap is the time to take charge and fine-tune your retirement strategy to make sure everything is in place. We recommend:

Increasing retirement contributions and using catch-up contributions if applicable.
Paying off large debts, like mortgages, to reduce expenses in retirement. This leaves more money for the things you want to do!
Reviewing and updating your estate plan, including your beneficiaries.
Planning for Social Security and other income sources in retirement.

Following this checklist will help you confidently prepare for your next chapter!

Living in Retirement (60s+)

The last stage featured on your financial planning roadmap is living in retirement through your 60s and beyond. This phase is about enjoying the life you’ve worked so hard to build while ensuring your financial future remains secure. To best enjoy the rewards of your hard work and maintain your lifestyle with minimal financial stress:

Develop a withdrawal strategy to ensure your retirement savings last. You don’t want to run your savings dry within the first few years!
Manage your investments to align with your income needs and risk tolerance.
Monitor your healthcare and long-term care costs, ensuring you have adequate coverage for the care you need.
Review and update your estate plans periodically to protect your financial legacy.

Stay connected with Blakely Financial as we continue to provide the guidance you need at every stage of life for a prosperous 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.

Caring for Aging Parents

Posted on August 12, 2024 by Emily Promise

Today, individuals are living longer than ever before, and therefore it is important to be prepared for these later years. Caring for aging parents is one aspect of aging that can be particularly difficult to balance within your planning. In this blog, we are sharing tips for caring for aging parents, helping you prepare to support yourself and your loved ones throughout every stage of life.

Have the Difficult Conversation

The first step, and often the most challenging one, is to have a conversation with your parent to find out what they need or expect from you. Your parent may resist this discussion at first as they have lived a long time without full assistance from you, and accepting your new role in their life may be tricky to handle. Despite these feelings, it is important to have this conversation early on before a crisis occurs. Understanding and respecting your parent’s wishes can also significantly smooth the process.

Gather Information and Documents

It is essential to create a list of emergency contacts, including your parent’s medical providers, religious leaders, neighbors, friends, and financial, tax, and legal advisors. You should also gather copies of various documents including any legal documents, funeral plans, medical records, and medication information. Additionally, keep a current list of investment, bank, and insurance accounts, and locations of safe deposit boxes, real estate deeds, and automobile titles. It may be helpful to keep all of this information in one place, like on a USB drive, so it is readily available when you need it.

Evaluate Your Parent’s Situation

Evaluating your parent’s mental and physical capabilities and locating community services and programs to support their independence is critical, but can also be difficult for you to do on your own. In this case, a geriatric care manager can be vital, especially if you live some distance from your parent. This person can perform an in-home assessment, determine your parent’s housing needs, and recommend a plan of action based on their evaluation. Ask your parent’s doctor for a referral to a qualified geriatric care manager. The following are some questions you and/or a geriatric care manager will answer during this evaluation:

Can your parent remain at home? If your parent can no longer care for their home, it does not necessarily mean they have to move. In fact, staying in one’s home may offer better support and social networks than moving in with one’s children! If your parent can safely stay alone, consider dividing household chores up among family members or hiring someone to provide housekeeping, cooking, and personal care. As parents grow older, an assisted living facility or retirement community may be a better solution than living at home as these residences provide additional benefits such as transportation, access to medical personnel, and a richer social life.
Can your parent move in with family? Moving your parents into your or another family member’s home is also a solution. This is not the best choice for every family, and that is okay! Ask yourself:

- Will living together put stress on your relationship with your parent or with your family?
- Can you afford to remodel or renovate your home to provide a comfortable and private environment for your parent?
- Do you have the flexibility in your schedule to provide the necessary transportation?
- Will other family members step in to help, both physically and financially?
Can your parent continue to drive? Individuals over the age of 75, taking medications, or both, may have an impaired ability to drive a car. It may be difficult to know when older drivers have become a danger to themselves or others. Consider giving your parent’s friends and neighbors your contact information and ask them to make you aware of any changes in his or her driving skills, or suggest that they accompany you for errands rather than driving alone. Many communities offer driver’s education courses that teach best practices for seniors, including limiting drive time to daylight hours and good weather conditions and avoiding high-traffic situations. Again, this may be a very sensitive topic of conversation for your parent. For help approaching the conversation, visit the NIH National Institute on Aging website on older drivers.

Financial and Legal Issues Associated with Caring for Aging Parents

With age comes a loss of mental alertness, causing a higher likelihood of due dates for bills passing, insurance policies lapsing, and making poor financial decisions. Your aging parent will likely need your assistance with their financial, legal, and medical matters including:

Banking: Most banks will offer automatic bill payment services from checking or savings accounts, which is a convenient and ideal option if your parent is internet savvy. There is also the option of your parent giving you responsibility for their finances by having bills and financial statements sent to your address instead of theirs. You may also consider a bill-pay service, which receives a copy of invoices and then requests your parent’s bank or financial institution to send checks directly to payees.
Investments: If the day-to-day management of your parent’s finances is too much for you to handle yourself, reach out to your financial advisor. They will be able to recommend products that provide income on a regular basis, such as managed retirement income portfolios or bonds. They may also propose cash-management solutions allowing your parent’s monthly social security, retirement plan, and other payments to be automatically deposited into an account. You are typically able to access these funds via a debit card, unlimited check-writing capabilities, and online bill-pay services – everything that a bank checking account offers.
Insurance: Review your parent’s existing life and long-term care insurance coverage to make sure it still aligns with their needs and wishes. Make changes if necessary.
Legal Concerns: An elder law attorney can help you prepare documents to manage your parent’s health care and financial affairs, and many states even provide free legal services to the elderly. Your parent may wish to seek an attorney’s help in a variety of areas, including appointing a health care representative, understanding the process for qualifying for government programs such as Medicaid or veterans’ benefits or reviewing and updating estate planning documents, including their will, durable power of attorney, and any revocable trusts.

Taking Care of Yourself

Caring for aging parents can feel overwhelming at times, but you are not alone. Many local and national groups are available to support you in providing the care and services your parent and family need. For more information and to get started, visit the U.S. Administration on Aging’s Eldercare Locator.

Talk with your HR department to find out if you are eligible for leave under the FMLA, and ask about the availability of an employee assistance program (EAP). EAPs are intended to help employees deal with personal problems, including concerns about aging parents, that might adversely impact their work performance, health, and well-being.

Lastly, seek the help of your financial advisor. Not only can they help review whether your parent’s resources are sufficient to pay for care, but they can also help you determine how to balance your own goals with your parent’s needs. Contact the Blakely Financial team today to begin your planning.

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 Freedom for Women

Posted on July 8, 2024 by Emily Promise

Achieving financial freedom is a goal for many, but for women, it often comes with unique challenges. From wage gaps and career breaks to planning for longer life expectancies, women face distinct hurdles in their financial journeys. However, with the right knowledge, these obstacles can be overcome. In this blog, learn how to build wealth, take control of your financial future, and thrive in the financial world.

Understanding the Unique Challenges

The first step in gaining financial freedom as a woman is to understand the unique challenges you may face in the financial world. Here are a few you may come across:

Wage Gaps: Women often face wage disparities across various sectors and industries, which can significantly impact their long-term financial health.

Career Breaks Many women take career breaks for caregiving, which can impact their earning potential and career growth.

Longer Life Expectancies: Women typically live longer than men, which means it is crucial to plan for extra years of retirement.

Combating Challenges

While these challenges are very common among women, they can also be overcome. To combat wage gaps, women should be educated about industry salary standards and negotiation skills to ensure they are fairly compensated for their work. Additionally, supporting women’s access to leadership training and mentorship can help them reach higher-paying positions and close the wage gap.

Women can mitigate the financial impact of career breaks by engaging in proactive financial planning, such as saving specifically for this purpose. When speaking with your financial advisor, let them know this is part of your plan and they will help you factor it into your financial game plan.

When taking longer life expectancies into consideration, women should focus on extending their retirement planning to ensure they save enough to cover these additional years. Investing in robust healthcare plans and health savings accounts can address the rising medical costs associated with aging.

Essential Financial Strategies

When embarking on your journey toward financial independence, there are a few essential financial strategies to keep in mind:

Investing Early: Starting your investment journey early maximizes the benefit of compounding interest, which is crucial for building long-term wealth. Even small investments can accumulate significantly over time, helping women secure their financial future.

Diversified Portfolio: A mix of assets can manage risks and promote steady growth, safeguarding wealth against unpredictable market conditions. A diverse portfolio may include stocks across different industries and risk profiles, as well as other assets such as bonds and real estate.

Retirement Planning: Retirement planning is particularly important for women due to longer life expectancies and unique career trajectories. Effective strategies include maximizing 401(k) contributions and selecting suitable retirement accounts to ensure financial stability in later years. Be sure to research your employer’s retirement plan options and work with your financial advisor to select the one that best fits your unique situation and needs.

Learn and Grow

The journey to financial freedom is ongoing, requiring continuous learning, growth, and support. The following are key to a successful financial future:

Education & Awareness: Understanding the financial landscape is crucial for achieving financial independence. By educating yourself through workshops, webinars, and resources, you can become more aware and better prepared for any situation coming your way. Additionally, learning negotiation skills can help you secure better salaries and benefits, which is essential for building long-term wealth.

Strategic Planning: Strategic financial planning is essential for reaching financial independence. For example, having a plan that accounts for career interruptions by saving for sabbaticals or considering career break insurance can help create a solid path toward financial stability and independence.

Support and Community: Building a strong support system is crucial for women’s financial success. Engaging in mentorship programs for guidance and joining networks with other women facing similar financial challenges can provide valuable support.

With determination and the proper resources, women can confidently navigate their financial paths and achieve lasting financial security. If you want to learn how to gain financial independence, contact us today. We’re here to guide you every step of the way.

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.

Retirement Planning for Dads at Every Stage

Posted on June 10, 2024 by Emily Promise

Retirement planning is a journey spanning the entirety of your career, evolving as you move through different phases of your life. For dads, this process holds unique significance – not only are you securing your own future, but you’re also safeguarding your family’s long-term financial well-being. From the early days of your career to the time you decide to retire, every stage of your journey offers opportunities to optimize your retirement planning strategy. As Father’s Day approaches, let’s explore retirement planning for dads and what this may look like at each career stage, ensuring a smooth transition to a financially secure retirement for you and your family.

Early Career (20s to Early 30s)

In the early stages of your career, when you are in your 20s to early 30s, time is your greatest ally. To build a strong foundation in your retirement planning, you will want to begin contributing to your retirement accounts as soon as possible. Research any retirement accounts offered by your employer and be sure to enroll in one, such as an employer’s 401(k) plan. Once enrolled, strive to contribute enough to qualify for the full employer match, if it is available, as it essentially offers free money towards your retirement savings. Simultaneously, it’s essential to establish an emergency fund, which serves as a financial buffer during unexpected situations and emergencies. Aim to have three to six months’ worth of expenses saved in this account to avoid dipping into your retirement savings and preserve future compounding gains in case of emergency.

Mid-Career (Mid-30s to 40s)

As you progress into your mid-career in your mid-30s to 40s, your earning power typically increases, making it the perfect time to ramp up your retirement contributions! Strive to max out your 401(k) contributions and consider opening an IRA for additional tax-advantaged savings. Additionally, it is critical to start diversifying your investment portfolio beyond standard retirement accounts. Other assets may include real estate, stocks, and more. Talk to your financial advisor to see which options are best for you and your risk tolerance. Moreover, while it is tempting to focus solely on saving for your children’s education during these years, it is important to maintain a balance between funding their college accounts and boosting your retirement savings.

Late Career (50s to Early 60s)

When you reach your 50s to early 60s and retirement begins to inch closer, take full advantage of catch-up contributions in your 401(k) and IRA, which allow you to contribute additional funds if you are over 50. It is also important to reevaluate your retirement goals once you reach this stage. Ask yourself, “Am I on track to live comfortably?” and adjust your savings strategies accordingly. Additionally, focus on reducing or eliminating any outstanding debt including your mortgage, credit cards, and personal loans before retirement. Entering your retirement debt-free can significantly reduce your monthly expenses as well as financial stress.

Nearing Retirement (Late 60s and beyond)

In the years closest to retirement, develop a strategic plan for withdrawing from your retirement savings accounts to maximize your gains and minimize taxes. Speak with your financial advisor to learn more about tax-saving strategies and the best approach for you and your unique situation. In addition, consider any necessary lifestyle changes such as downsizing your home for cost efficiency, and begin to plan for healthcare needs. Understand your Medicare options and assess the need for supplemental policies or long-term care insurance, ensuring you are covered for any health issues that may arise during retirement.

As you navigate the joys of fatherhood, remember it’s also crucial to plan for your future. At Blakely Financial, we’re dedicated to helping dads at every stage of fatherhood work toward a comfortable retirement. From your first Father’s Day to enjoying your golden years, let’s make sure your financial plans are as strong as the legacy you’re building. Contact us today to get started.

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.

Quiz: How Financially Literate Are You?

Posted on April 9, 2024April 9, 2024 by Emily Promise

As we recognize Financial Literacy Month, we must assess our knowledge and understanding of key financial concepts that impact our daily lives such as budgeting, investing, borrowing, and more. Whether you’re a seasoned investor or just beginning your financial journey, this quiz offers an opportunity to reflect on your financial knowledge and take steps toward improving your financial literacy. Are you ready to see where you stand? Dive into our Financial Literacy Month quiz and put your knowledge to the test!

What is the effect of compound interest on an investment over time?

Decreases the total amount of interest earned
Increases the total amount of interest earned by adding interest to the principal and accumulated interest
Has no effect on the total amount of interest earned
Only applies to savings accounts

Correct Answer: 2

Compound interest allows you to earn interest not only on the initial principal amount invested but also on the accumulated interest from previous periods. Over time, this compounding effect results in the exponential growth of your investment, significantly increasing the total amount of interest earned.

Why is diversification important in an investment portfolio?

It guarantees a fixed return on investment
It reduces risk by spreading investments across various asset classes
It focuses investment in one sector to maximize returns
It ensures all investments will profit

Correct Answer: 2

The process of diversification involves spreading your investments across different asset classes to minimize risk. These may include stocks, bonds, and real estate. By diversifying your investment portfolio, you can mitigate the impact of adverse events affecting any single asset or sector. This will help stabilize returns and potentially improve long-term performance. If you’re struggling to diversify your investments, meet with your financial advisor to discuss your options.

Which of the following accounts offers tax-deferred growth?

Checking account
Certificate of Deposit (CD)
401(k) or Traditional IRA
Brokerage Account

Correct Answer: 3

Tax-deferred growth refers to the ability of investments to grow without being taxed until withdrawal. Both 401(k) plans and Traditional IRAs offer tax-deferred growth, allowing your investments to compound over time without being subject to immediate taxation on earnings. Everyone’s financial situation is unique, so be sure to talk to your financial advisor to be sure you are taking advantage of the best plans and accounts for you.

What is a “bull market”?

A market characterized by declining stock prices
A market in which stock prices are remaining stable
A market characterized by rising stock prices
A market that exclusively trades in agricultural stocks

Correct Answer: 3

A bull market is a period characterized by rising stock prices and investor optimism. During a bull market, investor confidence is high, leading to increased buying activity and upward momentum in stock prices across the market.

What does a fixed-rate mortgage offer that a variable-rate mortgage does not?

A mortgage rate that changes with the market
Lower interest rates over the life of the loan
The same interest rate and monthly payment throughout the life of the loan
Higher borrowing limits

Correct Answer: 3

A fixed-rate mortgage offers borrowers the security of a consistent, or fixed, interest rate and monthly payment throughout the life of the loan. In contrast, a variable-rate mortgage will have interest rates that fluctuate with market conditions, resulting in varying monthly payments and potentially higher levels of financial uncertainty for borrowers. Talk to your financial advisor to sort out which option is best for you and your financial health.

Whether you aced every question and passed with flying colors or found new areas to explore, taking the time to assess your financial literacy is a valuable step toward financial empowerment. Remember, financial literacy is an ongoing journey, and there’s always room to learn and grow.

If you found any questions throughout the quiz challenging or would like to delve deeper into any topics, contact the Blakely Financial team today. We are ready to help you navigate your financial journey with confidence! For additional resources and insights designed to boost your financial understanding, check out the Blakely Financial website.

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.

Managing Finances in a Blended Family

Posted on March 8, 2024March 11, 2024 by Emily Promise

Embarking on the journey of blended families brings both joy and unique challenges. Navigating the intricacies of a blended family requires careful consideration and planning, especially when it comes to managing finances. No matter your age or stage in life, open communication, and proactive financial strategies are essential for building a strong foundation for your new family’s future finances. In this blog, we’ll explore key considerations for managing finances in a blended family to set the stage for a prosperous and harmonious financial future.

Blended Family Basics

When entering into a blended family, there are some key items to consider to help navigate potential challenges. Above all, clear communication is paramount.

Clear communication is not only about how you’ll blend your children if you have kids in your marriage but also about how you will manage your finances in this new blended situation. It is important to ensure your wishes are clear to both families within a blended family so they are played out properly in the long run. Having clear communication across a variety of different areas within your life will make the financial planning process as seamless as possible.

Blended Family Estate Planning

Managing estate planning in blended families can present unique challenges. When entering into a blended family, it is critical to sit down with your new spouse to discuss several important topics, including estate planning. Estate planning is important and can be challenging for everyone, but there can be some additional difficulties and hurdles when it comes to entering a blended family.

You need to have an honest conversation regarding what would happen if something were to happen to you. This does not only include death. If one of you were to get sick, who is going to make medical decisions for you? Who is going to be able to cash your checks, manage your investment accounts with your advisor, and have that financial power of attorney? In the instance that you were to pass away, it is important to consider where you want your assets divided. Will they go to your new spouse, prior children, or somewhere else?

While these conversations may be difficult, they are necessary to have with your new spouse when entering a blended family. If you need help getting started with these, reach out to your financial advisor. They will have resources available to help guide you through the estate planning process.

Merge or Keep Separate?

Again, upfront conversations with your new spouse may be uncomfortable but are necessary so you are on the same page heading for a successful future. Your finances should be part of these conversations, particularly whether you will keep your finances separate or merge them. We’ve seen success both ways, the decision really depends on how you both want to work.

If you do opt for separate accounts, you will want to be sure to have beneficiary designations on those accounts, have payable on death on your bank accounts, and any other necessary precautions in place so that if something were to happen to one of you, the other would still have access to important accounts. One common approach is to have one house account where you both contribute money to cover joint bills, but then keep your separate accounts for your own mad money. Regardless of what this decision will look like for you, clear communication is key to finding a balance that works for both partners.

Finding Your Unique Advisor

When entering into a blended family situation, no matter what your age is, you must find a financial advisor who caters to your unique needs. If you’re further along in your career, you may already have established financial habits long before you entered into this new marriage, making it even more important to find an advisor who can work with you to help you reach your unique goals in the long term.

Blakely Financial’s own Emily Promise is a Certified Divorce Financial Analyst, CDFA®, Institute for Divorce Financial Analysts. With her experience, she can help guide you and your blended family toward a bright financial future together. Contact us today to get started.

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.

4 Ways to Prepare for a Prosperous Financial Future

Posted on February 8, 2024February 9, 2024 by Emily Promise

The first few months of the year are the perfect opportunity for introspection, strategic planning, and establishing goals. This period is especially crucial for managing your personal finances. By evaluating your present financial situation, setting goals, and laying the foundation for the future, you can significantly influence your financial objectives. In this blog, we will delve into four practical measures you can implement to ensure a secure financial future.

1. Develop Goals and Priorities

Each person and each financial situation is unique. As a result, there is no one-size-fits-all approach to creating your financial plan. Each individual has their own goals and unique objectives for the future. As you identify your needs, wants, and wishes, it’s also important to think about your long and short-term financial goals. For example, are you interested in retiring in the next 10-15 years? Is buying a second home in the next 2 years feasible? Taking the time to review your goals from the past, as well as outlining goals for the future, will help you lay the foundation for success.

Talk to your financial advisor to develop a financial game plan for your particular objectives. Be sure to consistently re-visit and re-evaluate your plan and priorities to ensure you’re on track to reach your goals.

2. Identify All Assets and Liabilities

Next, conduct a thorough review of your assets and liabilities. Start by compiling a comprehensive list of your liquid assets and tangible properties. This detailed inventory provides a clear view of your financial standing and is an opportune time to re-evaluate your beneficiary designations. Next, identify any liabilities you may have, such as mortgages, auto loans, student loans, and so forth. With a clear picture of your assets and liabilities, it’s time to consider your income. Are there any bonuses or salary increases expected this year? If so, how will they impact your financial planning? Utilize all this information to refine and update your yearly financial plan accordingly.

3. Identify Any Barriers to Achieving Your Goals

With your liabilities and assets clearly outlined, it’s now important to recognize any obstacles that might prevent you from reaching your financial goals. These barriers may include existing debts, like student loans, that limit your capacity to save. Acknowledging your personal financial constraints is an essential piece to planning. When you acknowledge potential barriers, you and your financial advisor are able to create a more realistic set of financial goals based on your individual situation.

4. Think About What Keeps You Up at Night

As you’re planning for the year, think about what’s keeping you up at night. For many, one question often looms large: how will I plan for long-term care without burdening my children? Long-term care insurance emerges as a practical solution, offering a versatile approach to funding care needs, whether for a nursing home or at-home care. This type of insurance not only provides peace of mind but also features options like receiving a cash benefit or allocating funds to your estate. If benefits are directed to your estate upon passing, they are typically exempt from income tax and can bypass the probate process. Consult with a financial advisor about long-term care insurance, as it can be a vital part of your estate planning strategy to ensure you’re prepared for any future care requirements.

Remember, preparing for a prosperous financial future is not only about financial planning but about setting the stage for a secure and fulfilling life ahead. The steps you take today can shape your financial tomorrow. Are you ready to plan the remainder of your year? Contact the Blakely Financial 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.

2024 Financial Planning Tips & Updates

Posted on January 22, 2024January 22, 2024 by Emily Promise

At the start of a new year, it is critical to reevaluate your financial status and strategies as well as consider the changes in rules and regulations that may impact your financial well-being. In this blog, we’re sharing information and updates to help you navigate your 2024 financial planning.

Changes in Contribution Limits

The new year is the perfect time to review your employer benefits to make sure you are taking full advantage of everything offered to save for retirement. It is also crucial to review and understand any changes to contribution limits for the year. The following are changes for 2024 and should be factored into your 2024 financial planning:

The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans, as well as the federal government’s Thrift Savings Plan, increased to $23,000, up from $22,500.
The limit on annual contributions to an IRA increased to $7,000, up from $6,500.
The IRA catch‑up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment but remains $1,000 for 2024.
The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), and most 457 plans, as well as the federal government’s Thrift Savings Plan, remains $7,500 for 2024.
There were also increases for SIMPLE and SEP contributions.

Social Security

In 2024, Social Security recipients will see their monthly payments rise by 3.2 percent. The maximum amount of earnings subject to the Social Security tax will increase to $168,600. The earnings limit for workers younger than full retirement age will increase to $22,320 and the earnings limit for people reaching their full retirement age will increase to $59,520.

Financial Planning as a Family Affair

Our concerns often extend beyond our immediate financial well-being to that of our family. Instilling financial responsibility and planning in our children to ensure they have a solid financial foundation is invaluable. Are your adult children entering the workforce and beginning to build their careers? If so, are they planning for their financial future? Encouraging your children to focus on financial planning is critical in promoting their financial security. A conversation with a financial advisor can help equip them with the knowledge necessary to make informed financial decisions to align with their objectives.

Additionally, it is essential to review your estate documents with your most current financial situation and goals in mind. Many things can change over the course of a year. Sit down with your financial advisor and review documents including wills, trusts, and beneficiaries. Do they still align with your current needs, wants, and wishes? If not, update your documents to prevent future complications and ensure a secure financial future and financial legacy for you and your family.

The Blakely Financial team is here to guide you through the financial planning process. Contact us today to get started. Together we can begin paving your path to a financially prosperous year.

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.

Your Guide to Year-End Financial Planning

Posted on December 20, 2023January 17, 2024 by Emily Promise

As 2023 comes to a close, now is a great time to review your financial plan. With 2024 coming quickly, it’s crucial to reevaluate your financial objectives, consider any life changes impacting your finances, and stay informed about the latest tax and finance developments. Before your yearly financial advisement meeting, here are four areas to consider for your year-end financial planning.

Tax Planning Strategies

The first step in your guide to financial planning, as the year ends, is to nail down your tax planning strategies. First, be sure to understand and utilize any tax deductions and credits available to you. Investigate credits such as child tax credits, education credits, and energy efficiency credits. A financial professional can also help you discover and optimize various deductions and credits.

Additionally, reexamine your finances to see if you can reduce your taxable income in other ways. One way to do so is to defer your income. Deferred income refers to income you have received but not yet earned. This is common if you offer products or services and have received advance payments. Another way to reduce taxable income is by accelerating your donations. Giving multiple years worth of charitable contributions in one year can bring you closer to the threshold.

Accounts such as FSAs and HSAs can also offer tax relief. Talk to your financial advisor to see if you qualify. They can help you choose the best option for your unique financial situation, understand your balances, your rollover options, and how to maximize your contributions.

It is important to note that tax laws change frequently. Thoroughly research any tax law changes that will affect you over the upcoming year.

Investment Portfolio Review

When conducting your year-end financial review, give your investment portfolio a check-up. Assess risk tolerance and make adjustments accordingly. Strategize your stock options. Is selling in January 2024 more tax-efficient than doing so this year? You can also look for opportunities for tax loss harvesting. This would involve selling underperforming investments to offset gains, potentially reducing your taxable income. The rules surrounding tax-loss harvesting are complex, so it is best to seek professional advice before taking action. Your financial advisor can help you assess the timing for selling your stock as well as your best options for investment overall.

Retirement Planning

Year-end is a great time to fine-tune your retirement plans! Are you maxing out your retirement contributions? If you are not currently, it is worth considering, especially to leverage employer-match benefits in workplace plans or increase traditional IRA contributions. Contribution limits change annually, so make sure you are up to date with the latest rules.

Additionally, if you inherited an IRA, specific rules apply to you in regards to how much you have to take up annually, or if it’s your IRA and you’ve reached the required minimum distribution age, you also have to take out distributions.

Another consideration is Roth conversions. If your current tax bracket has room, converting traditional IRA savings into a Roth IRA might be beneficial. This strategy involves paying taxes upfront for tax-free growth later. Consult your advisor to see if this suits your long-term tax strategy.

Make sure that you’re balancing what you’re setting aside for retirement as well as taxable savings. You don’t want all your money in one bucket or the other!

Charitable Giving

The end of the year is often referred to as the season of giving – it’s a great time to look at your charitable giving. This can be a great thing to do from a tax perspective as well as to fulfill personal needs.

The first thing to do is look at donor-advised funds, which are a flexible aspect of charitable giving. You can put lump sums of cash and appreciated securities into a donor-advised fund. From there, you’re able to get a full tax deduction from the amount of money that you put into it. You’re able to give these funds out for however long you want to the charities of your choice.

If you’re at the required minimum distribution age, you can start a qualified charitable distribution (QCD). This allows you to take your RMD (required minimum distribution) and give it directly to the charity of your choice.

Generally, a donor-advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution the organization has legal control over it. However, the donor, or the donor’s representative, retains advisory privileges with respect to the distribution of funds and the investment assets in the account. Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later.

Are you ready to talk to a financial professional about your year-end financial planning? Contact Blakely Financial today to get started.

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.

Giving Tuesday: The Power of Charitable Giving

Posted on November 14, 2023November 28, 2023 by Emily Promise

One of the greatest parts of the holiday season is giving. Giving Tuesday, a global generosity movement, takes place on the Tuesday after Thanksgiving each year.

What is Giving Tuesday?

Giving Tuesday began in 2012 as a simple idea: a day dedicated to encouraging people to do good. Since then it has grown into a movement meant to unleash the power of people and organizations to transform their communities and the world at large. It demonstrates the power of philanthropy and collective action, inspiring hundreds of millions of people a year to give, collaborate, and overall celebrate generosity.

How to Get Involved

Everyone can participate in Giving Tuesday and there are various ways to contribute. The first step to getting involved is choosing a cause that resonates with you and your values. Research the organization of your choice to ensure your contributions go somewhere reputable. After choosing your cause, there are many ways to give. Monetary donations are a common method, but you may also consider donating your time, skills, or other goods when appropriate. You can also participate in local fundraisers, community drives, or events.

Charitable giving is not limited to individuals – it can be embraced by businesses and organizations as well. Ask your employer about a matching program for employee donations, a team volunteer day, donating a portion of sales, or even donating products. Engaging in those activities will boost your organization’s corporate social responsibility while creating a significant positive impact on your community.

The Impact of Charitable Giving

Charitable giving is vital in addressing various societal issues such as poverty, hunger, education, health, and environmental conservation. There are a number of nonprofits and charitable organizations that do essential work for these causes, making tangible differences in the lives of those who need it most. Many of these organizations rely on the support of donors and volunteers to serve their respective communities. Donated dollars, goods, and time, contribute to providing meals to those who need them, educational opportunities to underserved communities, preserving natural habitats, and much more making the impact of philanthropy undeniable.

The Joy of Giving and Its Rewards

One of the most amazing aspects of giving is that it does not only benefit the recipients – it benefits the givers, too! Giving to others can be personally rewarding, leading to increased happiness and reduced stress. While you’re making the world a better place you’re also enhancing your overall wellbeing. In order to qualify for tax deductions, donations must be made to qualified organizations from the IRS guidelines.

In addition to emotional benefits, philanthropic giving also offers tax benefits including deductions, exemptions, and estate planning benefits. By working with your financial advisor, you can maximize these benefits while aligning your philanthropic goals and financial objectives.

Giving Beyond Giving Tuesday

Giving can be a year-round endeavor! While Giving Tuesday is a great way to get started, it is not the only opportunity to give. Talk to your financial advisor about building charitable giving into your long-term financial plan. Determine a fixed amount or a percentage of your income or assets you would like to allocate to philanthropy. Explore various philanthropic vehicles to maximize the impact of your donations. As a high earner, you have the unique opportunity to make a meaningful and lasting impact on the world through philanthropy. Start building your philanthropic legacy today!

Ready to begin building your charitable giving into your financial plans? Contact Blakely Financial today to get started.

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.