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Author: Emily Promise

Traits of a Millionaire Woman

Traits of Millionaire Women

Posted on by Emily Promise

Presented by  Emily Promise

How does a millionaire woman look? Well, millionaires – women and men – come in all shapes and sizes. 

First, we will look at the profile of a millionaire woman. Here are some basic facts:

  • 2/3rds of millionaire women come from a dual-income household
  • 2/3rds have children
  • Only 5% of millionaire women are business owners

Millionaire women and women, in general, all share the following traits: 

  1. Express increased concern, and exhibit more stress, regarding preparing for their financial future versus men
  2. Are more concerned about the future versus the present
  3. Love having a financial plan – women are natural planners

All millionaire women have a plan. Women, in general, love the idea of a financial plan – it serves as a road map to reach their goals, whatever those may be.

Women take on myriad roles in life and, to coordinate everything, planning is a vital component! (Think about trekking the kids around to all their extra activities without a schedule or forethought!)

When it comes to finances, it takes diligent savings to amaze the wealth that women have. As they say, money does not grow on trees.

One final trait that all millionaire women share is that they want their concerns addressed. Whether it’s the financial concern of having enough money, or the personal, such as how will I care for my aging parents, women want someone to go to as a trusted advisor to provide clarity, insight, and guidance to elevate their concerns.

 

Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other specialized advice we can provide towards your financial well-being.

EMILY PROMISE is a financial advisor with BLAKELY FINANCIAL, INC. located at 1022 Hutton Ln., Suite 109, High Point, NC 27262 and can be reached at (336) 885-2530.

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.

Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.

Prepared by Commonwealth Financial Network®

 

 

 

Traditional IRA Vs. Roth IRA: Choosing the Best Fit

Posted on by Emily Promise

Traditional IRA Vs. Roth IRA: Choosing the Best Fit
Presented by EMILY PROMISE CFP®, AIF®, APMA®, CRPC®

IRAs are a type of savings account designed to help you put money away for retirement in a tax-advantaged way. Two of the most common types are traditional and Roth IRAs. How do you know which one you should invest in? There are several factors to consider, so let’s take a closer look at their similarities and differences to help you choose the best fit.

The similarities between traditional and Roth IRAs include the following:

  • Contribution limits: Total annual contributions to your traditional and Roth IRAs combined cannot exceed $6,000 if you are younger than 50 or $7,000 if you are age 50 or older.
  • Contribution deadline: The deadline is the same as your tax return filing deadline (not including extensions).
  • Withdrawals: You can withdraw money at any time, but distributions may be subject to tax and penalty. For traditional IRAs, withdrawals prior to age 59½ may be subject to a 10 percent premature withdrawal penalty, unless an exception applies. For Roth IRAs, withdrawals of the principal are tax and penalty-free. If you are younger than 59½ and have had the account for less than five years, however, you may have to pay taxes and/or a penalty on any earnings withdrawn.
  • Rollovers: Direct rollovers are accepted from outside qualified retirement plans (i.e., 401(k)s), and they may be taxable.

There are, however, some key differences between these account types, as summarized below:

  • Traditional IRAs
    • Contributions may be tax-deductible, depending on your income level.
    • Contributions grow tax-deferred, meaning you pay taxes only when you withdraw the money.
    • You must begin taking required minimum distributions (RMDs) at age 72*.
  • Roth IRAs
    • Not everyone is eligible to contribute; income restrictions apply.
    • Contributions are not tax-deductible. But distributions are tax-free if the account has been open for at least five years and the account owner is age 59½ or has qualified for an early withdrawal exception.
    • Roth IRAs do not have RMDs.

There are a lot of details to take into consideration before deciding on which account you would like to open, and it’s important to be well-informed before making a decision. If you have further questions regarding either type of IRA and which one would be best for you, we welcome you to contact us.

Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other expert advice we can provide towards your financial well-being.

EMILY PROMISE is a financial advisor with BLAKELY FINANCIAL, INC. located at 1022 Hutton Ln., Suite 109, High Point, NC 27262 and can be reached at (336) 885-2530.

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.

Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.

Prepared by Commonwealth Financial Network®

 

*If you turned age 70½ before January 1, 2020, then you must begin taking RMDs at age 70½.

Plan For A Vacation Day

Posted on by Emily Promise

Presented by EMILY PROMISE CFP®, AIF®, APMA®, CRPC®

Most of us are dealing with frigid temperatures, snow and ice but are probably dreaming of white sandy beaches, sunshine and perhaps a fruity drink with an umbrella in it.  It definitely is a great time to begin to plan for vacation! Here are some simple ways you can prepare for that getaway to ensure you enjoy it to the fullest when the time comes.

Begin by estimating your costs

To begin planning your vacation, you will need to research your desired destination. This will give you a better understanding of how much the trip will cost. Take everything into account including identifying the average hotel rate. Factor in transportation costs and determine how much you will spend on food and entertainment. Do not forget to budget in a little extra for emergencies, such as a flat tire or parking charges. Once you gather all your costs, you will see just how much you will need to go on vacation.

Create a realistic budget

Vacations are meant to be fun and relaxing, so do not go into debt going on one. Create a realistic budget that everyone can agree upon. Identify where you can cut costs. Maybe for lunch one day you pack sandwiches for your family instead of eating at a local café or chose to self-park instead of valet. Identifying where you can free up money will help keep costs down and will allow you to enjoy yourself during the trip and when you get back home!

Open a vacation savings account

Opening a separate savings account dedicated to vacations is a great opportunity to put money away for that special trip. Each week deposit a decided amount and do not pull the money out until the time comes to take that vacation. Fifty to one hundred dollars a week will build up in no time and you will end up with a nice chuck of change to vacation with. Though it may not be enough to cover the entire cost of your vacation, it will certainly help with your budget.

Identify expenses that drain your pocket now

Do you really need that $5 cup of coffee every morning before work? Buy the same brand of coffee and make it at home. Try cutting back on unnecessary expenses and we promise you will not miss them. Take those dollars you save and put them in your vacation account. You will be pleasantly surprised at how much your vacation budget grows once you cut out those unnecessary purchases.

Do some extra planning ahead of time

Before arriving at your vacation spot, plan your stay. Is there a tourist spot that you would like to visit? Or a well-known restaurant that you are dying to try? Look up coupons for that area on-line or call the local travel center to see if they have any discount deals available. This will prepare you ahead of the trip and save you a couple of dollars in the process.

There is always a ‘Staycation’ Option

Of course, if money is tight, or you prefer the comfort of your own bed, you do not have to travel anywhere to relax. Plan a ‘staycation’. Turn off your phone and become a tourist in your own town. Visit museums. Go to local parks. Pack a picnic lunch and a blanket and go out into your backyard for a fun dinner under the stars. Get creative and you might even enjoy being able to just relax at home without worrying about a budget.

No matter where you might go for your getaway, remember that budgeting is always a good idea and planning ahead takes the stress out of travel.

Stay warm this winter while enjoying planning for your upcoming vacation and always remember to consult with your financial advisor to work towards your travel dreams and goals as well as your financial future.

Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other expert advice we can provide towards your financial well-being.

EMILY PROMISE, CFP® is a financial advisor with BLAKELY FINANCIAL, INC. located at 1022 Hutton Ln., Suite 109, High Point, NC 27262 and can be reached at (336) 885-2530.

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.

Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.

Creating a Holiday Budget

Posted on by Emily Promise

Authored by EMILY PROMISE CFP®, AIF®, APMA®, CRPC®

Do you ever wonder where your money goes? Especially around the holidays? Well, you are not alone. Not only are you spending money on gifts, but the holiday season also comes with a myriad of other expenses that include entertaining, decorations, travel to relatives, holiday cards, mailing of packages, and charitable giving. If you are hoping to avoid the dreaded overspending and exorbitant bills in the new year, come up with a spending budget now that is realistic and one that you can stick to.

Putting together a holiday budget is a lot like preparing a monthly spending budget. Identify how much money you have coming in and where you want to allocate those dollars. Calculate your normal monthly living expenses and earmark what is left to your holiday budget.

Start by listing all the people you would like to purchase a gift for. To keep this cost down, consider homemade gifts that might cost less. Budget for sending out those holiday cards and any decorations you might be purchasing. Think about do-it-yourself decorations. With so many great ideas available on-line nowadays, you can do a lot of things by yourself and save dollars in the process. Make sure to add in any extra entertaining you will do and how much the food and drink will cost. Consider potluck if you are entertaining to help keep within your budget. If you have a favorite charity that you support, include your donation in your overall holiday budget.

Once you put a list together of your expected expenses, if you see that there is not enough money to do the things you would like to do, consider other income streams. Do you have a Christmas Club at your bank that you could stash money into throughout the year? Can you take on a small part-time job to help increase your income stream for those extras? How about selling those unwanted items in your closet for a little extra cash? Try putting aside the money you spend every day on that fancy coffee and earmark it for the holidays? If you are lucky enough to get a year-end bonus, can part of that bonus be used for holiday spending? But a word to the wise, remember to never count on that bonus and spend it before it is in the bank.

Continue to track your expenses daily to make sure you are staying within your budget. Opening up a separate bank account with your allocated holiday budget may help you stay the course. And in today’s mobile world, checking on your balance is as easy as checking your app on your phone on a daily basis to monitor how you are tracking.

Doing a little preparation upfront before you begin spending for the holidays will help you to stay on track and not overspend. And when you stay within your budget, you will thank yourself in January when those bills begin to roll in.

Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other individualized advice we can provide towards your financial well-being.

EMILY PROMISE, CFP® is a financial advisor with BLAKELY FINANCIAL, INC. located at 1022 Hutton Ln., Suite 109, High Point, NC 27262 and can be reached at (336) 885-2530.

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.

Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser

Understanding 401(k)’s

Posted on by Emily Promise

All about 401(k)’s

Presented by EMILY PROMISE CFP®, AIF®, APMA®, CRPC®

A 401(k) plan is a company-sponsored retirement plan that eligible employees can contribute a portion of their salary into a variety of investment options. In some instances, employers may also offer to make matching contributions. 401(k) plans are an easy way to save for the future through payroll contributions.

If your company offers a 401(k) plan and you are not participating, you may want to revisit your decision as they are a great opportunity to save for retirement. Beginning early and consistently contributing to a 401(k) plan throughout your working years can assist you in reaching your financial goals for retirement.

If you have just entered the workforce, retirement may be the farthest thing from your mind. Or if you are an older employee nearing retirement, you might be thinking it is too late. For both life stages, 401(k)s can offer specific advantages that make them a great option for investing and saving.

401(k) contributions are typically ‘before tax’ money. The amount you choose to contribute is deducted from your paycheck before taxes are taken out.  This means you are paying taxes on a smaller portion of your salary.  There are limits each year on just how much you can put in your 401(k).   In 2020, the maximum amount one can contribute is $19,500. If you are 50 or older, you can make a catch-up contribution of $6,500 in addition to the $19,500 for a total of $26,000.

Many plans also offer options for employees to make post-tax ROTH 401(k) contributions from their paychecks. Post-tax ROTH contributions do not lower an employee’s taxable income, but they do grow tax-free and aren’t taxed upon withdrawal.

Many employers offer matching contributions. For example, your employer may offer a 4 percent match. This means they will contribute the same amount that you do, up to 4 percent. Of course, you can personally contribute more, but the company will match only 4 percent.  If you are not contributing to your company’s 401(k) plan and they have a match, you are leaving money on the table! Make sure to begin contributing at least to the amount of the match as soon as you can.

An additional benefit of a 401(k) plan is that when you finally pay the taxes on your 401(k) contributions, you may be at a lower rate. Typically, you begin withdrawing money from your 401(k) when you retire and you may very well be in a lower tax bracket at that time; thus you could end up paying less tax on your savings when you do eventually withdraw funds.

A few key points to remember about a 401(k); It is a retirement savings plan, so once you put money in, it is always best to leave it in. There are penalties if you take the money out before retirement age. Also keep in mind that if you change employers, you can roll your vested balance into your new employer’s 401(k) plan or into another qualifying retirement account such as an IRA.

If you have questions, it is always a great idea to call your financial advisor for guidance. But no matter what, please take advantage of any type of savings plan your current employer offers as the earlier and more aggressive you are, the closer you will come to achieving your financial goals.

Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other expert advice we can provide towards your financial well-being.

EMILY PROMISE, CFP® is a financial advisor with BLAKELY FINANCIAL, INC. located at 1022 Hutton Ln., Suite 109, High Point, NC 27262 and can be reached at (336) 885-2530.

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.

Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.

College Students, Start Investing Now!

Posted on by Emily Promise

Presented by EMILY PROMISE CFP®, AIF®, APMA®, CRPC®

With all that you have on your plate, from a full class load to sports practice and part-time jobs, thinking about investing is probably the farthest thing from your mind. But now is the time for you to take advantage of your youth and start planning for your financial future. Below are a few tips so you can start investing now which will pay dividends in the future.

By investing now, you are taking advantage of extended time in the market. The earlier you start investing, the more time there is for your money to grow. You can start investing now with any amount of funds. Whether it be $1,000 or $10,000, the most important thing is that you get in the habit of investing and paying yourself first.

Begin by putting a small amount each month (or even each week into your savings account, this will get you in the habit of saving for your future. By getting in the habit and setting up automatic drafts from your checking account into an investment account, you will never miss the funds.

Ways to start investing now:

  • Open up an individual investment account
  • Open a ROTH – if you have earned income
  • Start an automatic monthly draft into your investment account
  • Review your income and spending habits to determine how much you can afford to stash away into an investment account.
  • Look for ways to save money … bring your own lunch, skip the Starbucks line… then invest the money you saved!
  • Set goals, so you have something to save for
  • Seek the help of a financial advisor

Bottom line start investing today. The sooner you begin investing for your future, the sooner you secure your financial future. Your 40-year-old self will thank you for starting young.

Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other individualized advice we can provide towards your financial well-being.

EMILY PROMISE, CFP® is a financial advisor with BLAKELY FINANCIAL, INC. located at 1022 Hutton Ln., Suite 109, High Point, NC 27262 and can be reached at (336) 885-2530.

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.

Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser

Planning Life’s Biggest Vacation: Estate Planning

Posted on by Emily Promise

Presented by EMILY PROMISE AIF®, APMA®, CRPC®

Part of planning for ‘life’s biggest vacation’, aka retirement, involves not only making sure you are saving money to help make your goals and dreams come true, but also planning in the event that something happens to you. It is never pleasant to think about, but preserving all that you have worked for is very important.

By definition, estate planning is a process designed to help you manage and preserve your assets while you are alive and to conserve and control their distribution after your death according to your goals and objectives. But what estate planning means to you specifically depends on who you are. Your age, health, wealth, lifestyle, life stage, goals, and many other factors determine your particular estate planning needs. For example, you may have a small estate and may be concerned only that certain people receive particular things. A simple will is probably all you will need. Or, you may have a large estate, and minimizing any potential estate tax impact is your foremost goal. Here, you will need to use more sophisticated techniques in your estate plan, such as a trust.

Elements of an estate plan
A plan generally comprises four elements:

  1. The last will and testament is a blueprint that directs who will receive your property upon your death and the specific circumstances in which they will receive it. Your will governs only property that flows through probate. For example, financial assets with beneficiaries other than your estate, jointly owned property with rights of survivorship, and assets in a trust funded during life are not distributed under the terms of your will.
  2. The durable power of attorney (POA) authorizes someone, often called an agent, to handle your financial affairs if you were to become incapacitated. Without a durable POA, your family members would have to institute legal proceedings and request a probate court to appoint a guardian to carry out these responsibilities.
  3. The health care power of attorney (HCPOA) is a document that authorizes someone to make health care decisions if you are not able to. It can also allow your wishes to be known about end-of-life decisions in the event that you are unable to communicate. The latter may be part of your health care POA document or an advanced medical directive, also referred to as a “living will.”
  4. A trust is a formal arrangement allowing the trustee to hold assets. The trustee distributes assets to your beneficiaries at the time that you direct in the trust document. There are two basic types of trusts: a living trust and a testamentary trust. A living trust is funded during your lifetime and may receive your estate assets after probate is complete. It is often called a revocable trust because you retain the right to make changes or remove property during your lifetime. A testamentary trust is created after your passing and your will is approved by the probate courts.

Important considerations

Estate planning can be complex. It is important to keep the following in mind:

  • Be sure that your beneficiary designations reflect your wishes. Contact your current and former employers, your financial advisor, and your life insurance agent for the required paperwork to make any changes, if necessary.
  • Don’t make the mistake of assuming a change in your circumstances, like a remarriage, will make a prior designation null and void. Always make beneficiary changes on the correct paperwork specific to the financial institution.
  • Include both primary and contingent beneficiaries for your accounts. If your primary beneficiaries die before you, without a backup beneficiary, the death benefit would be paid to your estate. This can result in unnecessary fees and delays associated with probate, as well as accelerated taxes.
  • Relatives with special needs or disabilities rarely inherit directly. Receiving an inheritance outside of a special needs trust could mean the loss of valuable government benefits.
  • You can name a beneficiary of your retirement accounts, but be aware of the tax impact. In the end, the advantages of having the retirement accounts managed by a trustee may outweigh the tax disadvantages.

Remember that your plan should be reviewed every year or so and should reflect any life changes. Perhaps you got married, had children, lost a spouse, remarried. All these life changes will require review of your estate documents to reflect new beneficiaries or other changes.

Working with your financial advisor in conjunction with an estate attorney can help you plan for life’s biggest vacation and help preserve the legacy that you have worked so hard to achieve.

Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other expert advice we can provide towards your financial well-being.

EMILY PROMISE is a financial advisor with BLAKELY FINANCIAL, INC. located at 1022 Hutton Ln., Suite 109, High Point, NC 27262 and can be reached at (336) 885-2530.

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.

Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser

Prepared by Commonwealth Financial Network and Broadridge Advisor Solutions