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What to Know About 401(k) Contributions

What to Know About 401(k) Contributions

For 2024, the IRS announced a change in 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. Annual contribution limits increased to $23,000 from $22,500 as a cost of living adjustment. 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 unchanged at $7,500.

What does this mean for me?

If your employer offers benefits such as retirement plans, you will want to make sure you are taking advantage of everything offered to you to save for retirement. In order to take full advantage of this, it is important to understand any changes to contribution limits.

If you are already making the maximum contribution to your 401(k) each year, increases in contribution limits are good news for you, as you will be able to set even more money aside for retirement. If you are looking to maximize your retirement fund, you may want to consider contributing to both your employer-sponsored retirement plan and an IRA.

Making the Most of your 401(k)

One of the most important financial planning strategies when saving for retirement is maximizing your employer’s 401(k) match if offered. This extra money can significantly boost your retirement fund, especially if you consistently contribute enough to receive the maximum match. Take the time to thoroughly read over your company’s plan with your financial advisor to ensure you understand the specifics and make the most of your money.

Key Points to Remember About a 401(k)

Here are a few key points to keep in mind about a 401k):

  • A 401(k) 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 of your 401(k) before you hit retirement age.
  • 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.

Take advantage of any type of savings plan offered by your current employer. The earlier you begin and the more aggressive you are, the closer you will be to achieving your financial goals. If you have further questions about your 401(k), retirement savings, or any other aspect of your financial plan, it is always a great idea to speak with your financial advisor for guidance. Contact the Blakely Financial team today to get started.

If you are considering rolling over money from an employer-sponsored plan, you often have the following options: leave the money in the current employer-sponsored plan, move it into a new employer-sponsored plan, roll it over to an IRA, or cash out the account value. Leaving money in a plan may provide special benefits including access to lower-cost investment options; educational services; potential for penalty-free withdrawals; protection from creditors and legal judgments; and the ability to postpone required minimum distributions. If your plan account holds appreciated employer stock, there may be negative tax implications of transferring the stock to an IRA. Whether to roll over your plan account should be discussed with your financial advisor and your tax professional.
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.
National Nonprofit Day: How Blakely Financial Gives Back

National Nonprofit Day: How Blakely Financial Gives Back

To celebrate National Nonprofit Day on August 17th, we are recognizing the amazing and impactful work of nonprofit organizations within our community and around the world. Read on to learn more about our favorite local organizations and how the Blakely Financial team gives back to the community.

Kiwanis

Steve LaFrance, former President of Kiwanis of High Point, believes in improving the world, one child and one community at a time. Steve and the BFI team continue to support the Kiwanis’ mission. 

With clubs in nearly 80 nations and geographic locations, Kiwanis strives to be a positive influence in communities worldwide, so that one day, all children will wake up in communities that believe in them, nurture them, and provide the support they need to thrive. Kiwanis clubs are local groups of like-minded volunteers who love serving together to change children’s lives. When club members serve kids, they support the Kiwanis causes of: health and nutrition, education and literacy, and youth leadership development. Kiwanis clubs partner with each other and with organizations whose missions align with theirs all around the world to serve the kids who need it most and make an impact that lasts from infancy to adulthood.

SPUR North Shore

Blakely Financial is proud to support SPUR North Shore, where Emily Promise serves as the Treasurer and is also an active board member. SPUR strives to remove barriers to volunteering by providing a platform to cultivate a community of doers across the North Shore and nurturing the desire to make a difference.

Founder Jocelyn Cook wanted to create an organization where young children, families, and individuals could dive into giving back through opportunities that embraced busy schedules, varying experiences, and interest levels. The result is SPUR: an organization mobilizing volunteers in service and enrichment opportunities to support the needs of the North Shore community, embracing the notion that we don’t have to change the world on our own, we simply need to do our little bit of good to make a difference.

Junior League of High Point

Since joining in 2000 and serving as Past President, Donna Blakely, along with the Blakely Financial team, has remained dedicated to supporting the Junior League of High Point’s mission to advance women’s leadership for meaningful community impact through volunteer action, collaboration, and training, and their commitment to breaking down barriers that hinder women from achieving success.

Members of JLHP share a commitment to voluntarism and building a better community. Above all else, their goal is to promote and perpetuate social change in the High Point communities that will benefit the most. JLHP empowers women and provides valuable leadership training to give local women the tools they need to get involved, put their talents to work, and positively impact the Greater High Point Region.

United Way

Blakely Financial is proud to support the United Way and its twenty-five partner agencies that do so much for our neighbors in need. We LIVE UNITED with the United Way of Greater High Point

The United Way’s mission is​ to develop resources and partnerships to make measurable differences in people’s lives, fighting for the education, health, and financial stability of every person in every community. Programs funded by United Way help children learn and families thrive, build self-sufficiency and independence, create stronger and safer neighborhoods, and improve the health of our communities. 

How Blakely Financial Gives Back: Serving Nonprofit Organizations, Endowments, and Foundations

As an independent financial planning firm, we serve our clients with objectivity, integrity, and experience with the goal of providing clarity, insight, and guidance regarding their financial goals. We act as fiduciaries for our clients by providing financial planning and advisor-managed investment solutions through Commonwealth Financial Network®.

For nonprofits, endowments, and foundations, Blakely Financial provides trusted advice and professional guidance to maximize your group’s financial resources. We help you address the challenge of finding the correct balance of risk and rewards in the management of your assets to support your mission for generations into the future.

 

To learn more about supporting nonprofit organizations or about working with Blakely Financial as a nonprofit organization, contact us 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.
The Benefits of Investing in a Second Home

The Benefits of Investing in a Second Home

Owning a second home is not just about having a getaway spot – it’s a strategic investment offering multiple financial and personal benefits. Whether it’s a beachfront condo, a mountain cabin, or a house in a serene village, we’re exploring the multifaceted benefits of investing in a second home.

Investment Potential

Investing in a second home can be a smart financial move. Many properties, especially those in sought-after vacation destinations not only hold their value but also appreciate over time. This appreciation paired with choosing the right location and maintaining the property well can turn your second property into an increasingly valuable asset in your long-term investment strategy as years pass.

Rental Income

One of the most appealing aspects of owning a second home is the opportunity to generate income through rentals. When you are not using the property, you can rent it out to travelers or even long-term tenants. This rental income can help cover the cost of the mortgage, necessary maintenance, and property taxes, allowing you to own and maintain this additional property with minimal personal expense. If your vacation home is in a popular destination, it can command high rental prices, especially during peak tourist seasons, and provide you with substantial supplemental income. 

Tax Deductions

Second homes can also offer tax advantages. As the property owner you have the potential to enjoy tax deductions on mortgage interest and property taxes, much like with your primary residence. These tax benefits can help make owning a second home more affordable while also easing your overall tax burden. It is important to speak with a tax professional to fully understand and maximize these benefits based on your own unique financial situation and both local and national tax laws. 

Diversified Assets

Diversifying your investment portfolio is a fundamental strategy used to mitigate risk, and real estate plays a vital role in this diversification. Investing in different types of properties in various locations allows you to reduce the risks associated with market fluctuations in any single investment area. A second home adds a tangible asset to your portfolio, which is often less volatile when compared to stocks and other financial investments. 

Customizable Vacations and Family Gatherings

Aside from the financial benefits, a second home provides a personal retreat tailored to your preferences. It eliminates the hassle of booking hotels or dealing with the uncertainties of vacation rentals and other accommodations. More importantly, it serves as a consistent gathering place for family and friends, helping to build cherished memories in a familiar setting. Owning a second home ultimately means customizable vacations where the only thing you need to plan is how to enjoy your time!

Retirement Preparation

For many, a second home is not just used as a spot to vacation or retreat but also as a potential retirement destination. When purchasing a second home during your working years you can also transition it into your ideal retirement residence. This approach allows you to become acclimated to the community and area you wish to retire in and gives you the advantage of planning ahead for the lifestyle you wish to live in retirement

Second homes present a unique blend of investment opportunity and personal sanctuary. Contact Blakely Financial today to see how a second home can enhance your financial plan!

 

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.
Investing in Your Graduate’s Future: Planting Seeds for Long-Term Success

Investing in Your Graduate’s Future: Planting Seeds for Long-Term Success

Graduation is right around the corner! It’s an exciting time to celebrate your child’s accomplishments and look ahead to their future. As a parent, you play a crucial role in setting them up for success, and one of the best ways to do so is by investing in their future. There are countless ways to sow the seeds for long-term financial security and prosperity. In this blog, we are delving into ways you can invest in your graduate’s future journey today, so they can watch the returns flourish in years to come.

Roth IRA Contributions

Consider starting a Roth IRA for your child if they’ve earned income. A Roth IRA offers tax-free growth and withdrawals in retirement, providing a valuable tool for building financial security over the long term. By making contributions to a Roth IRA early on in your child’s life, you can leverage the power of compounding growth and set them on the path to a comfortable retirement. While Roth IRAs can also be used for educational expenses, in order to withdraw money without being charged taxes or penalties, you must be over 59 ½ years old and the account must be at least five years old.

529 College Savings Plan

Investing in a 529 college savings plan is an excellent option to support your child’s educational goals. These plans offer tax-free growth and withdrawals for qualified education expenses, making them a tax-efficient way to save for college. Parents are not the only people eligible to contribute, allowing family and friends to give a lasting gift to the beneficiary’s future. 

Whether your child plans to attend a traditional four-year college or university or pursue vocational training, a 529 plan can help ease the financial burden of higher education and provide valuable opportunities for their future. If your child receives a scholarship or decides against further eligible education, 529 savings plans offer the flexibility to change the beneficiary to avoid paying taxes and fees on unused savings.

Custodial Accounts (UTMA/UGMA)

Opening a custodial account, such as a Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA), allows you to invest in stocks, bonds, or mutual funds on behalf of your child. These accounts are a great investment option because they offer flexibility and control, allowing you to manage the assets until your child reaches adulthood (at 18 or 21, depending on the state). Introducing your child to the world of investing early on can help them develop valuable financial literacy skills and set them up for financial success in the years to come. 

Additionally, the funds can be used for the minor’s benefit before they take control of the account, including to help pay for college! Earnings are taxed at the minor’s tax rate, subject to kiddie tax rules. Before pursuing custodial accounts, talk to a financial professional to confirm which tax rules apply and how to best manage the funds. 

Financial Literacy Education

Investing in your child’s financial education is perhaps one of the most valuable investments you can make. Providing access to resources and courses on financial literacy from a young age can equip your child with the knowledge and skills necessary to manage and grow their finances effectively. From budgeting and saving to investing and retirement planning, a strong foundation in financial literacy sets the stage for a lifetime of financial success. 

As graduation season approaches, now is the perfect time to start investing in your graduate’s future. Regardless of the investment options you choose, every investment you make lays the groundwork for their long-term success. By contributing to your child’s journey to financial literacy and prosperity today, you can help create a bright and prosperous future for your graduate tomorrow. If you need assistance getting started, contact Blakely Financial today. Our team is here to help you discover the best investment options and work towards a secure financial future for you and your family. 

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.
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 Literacy Month Our Favorite Podcasts

Financial Literacy Month: Our Favorite Podcasts

April is Financial Literacy Month, a time dedicated to empowering everyone with the knowledge necessary to make informed and effective financial decisions. There are many ways to improve your financial literacy, and we are thrilled to share some of our favorite resources to boost your financial wisdom. As a listener of the following podcasts, you’ll gain valuable insights from experts, hear real-life stories, and listen in on thought-provoking discussions on a wide range of financial topics. 

Planet Money

Financial Literacy Month Podcast: Planet Money

Our first highlight is Planet Money, a podcast by NPR that makes economics fun, understandable, and relevant. The podcast can take any topic and relate it back to the economy, helping you understand both the economy and the world as a whole. 

Episodes are typically around 30 minutes or less. Here are some recent examples of episodes we’ve enjoyed:

Planet Money can be found anywhere you listen to your podcasts!

BiggerPockets

Dive into the world of finance, entrepreneurship, and real estate with our next podcast pick: BiggerPockets. Whether you’re a seasoned investor or just getting started, BiggerPockets offers invaluable insights to help you build your wealth and navigate the complexities of real estate investment.

Most episodes are less than 1 hour long. Here are some recent episodes we enjoyed:

BiggerPockets is available anywhere you listen to your podcasts!

Bloomberg’s Masters in Business

Our next feature is Bloomberg’s Masters in Business. This podcast brings the insights of the world’s leading business minds right to your ears. Delve into deep conversations with industry pioneers in finance, economics, and beyond. Discover the strategies and stories behind successful business ventures, elevating your understanding and inspiring you with every episode. 

Episodes vary in length, ranging from just 5 minutes to over an hour long. Here are some episodes we’ve enjoyed recently:

Masters in Business is available wherever you listen to podcasts!

Exploring podcasts during Financial Literacy Month offers an engaging and accessible way to expand your financial knowledge and empower yourself to make informed decisions about your finances. Whether you’re looking to improve your budgeting skills, learn about investing, or gain a deeper understanding of economic concepts, these podcasts provide valuable resources to help you navigate your financial journey with confidence. Grab your headphones and start listening – your healthy financial future awaits!

For more personalized advice and insights, contact the Blakley Financial team today. Our advisors are available and ready to assist you in your journey toward strong financial literacy and well-being.

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: Are You and Your Partner Financially Compatible?

Are you and your partner in financial harmony? Establishing a financially secure future together is an invaluable act of love. Taking the time to sit down with your partner and explore your financial perspectives can strengthen your bond. Discuss and align your financial goals to ensure you’re both navigating in the same direction. Celebrate love not just with romantic gestures, but with the commitment to make wise financial decisions together. Here’s to a love-filled day underscored by the promise of a secure financial future!

In terms of your financial communication, do you and your partner:

  1. Regularly discuss financial matters
  2. Occasionally talk about finances
  3. Rarely discuss money matters

It’s never too late to start discussing your finances! Building a life together with your partner involves frequent financial choices. Get in the habit of discussing financial matters early on to build a financial future full of both of your needs, wants, and wishes. 

How do you envision your ideal retirement together?

  1. Traveling and enjoying your leisure
  2. Living a frugal and comfortable life
  3. We haven’t discussed our retirement plans.

Having a conversation with your partner about retirement will help you develop a retirement plan to meet both your goals. Speak with your financial advisor about each of your retirement goals and carefully evaluate your current financial health to properly craft a financial plan to ensure a happy retirement.

In the event of a financial windfall, what would you and your partner prioritize?

  1. Saving and investing
  2. Paying off debts
  3. Splurging on a shared experience

Life is full of uncertainties, but there is a way to prepare for them financially. Consider risk management to protect your wealth during unexpected circumstances. Have you considered diversifying your investment portfolio? Do you have an emergency fund? Sit down with your financial advisor to create a risk management strategy to ensure you are prepared in the event of a financial windfall. 

How do you and your partner handle budgeting?

  1. We create a joint budget together
  2. Each manages their own finances
  3. We don’t have a specific budgeting strategy

Whether you and your partner have a financial plan together or separately, it is important to maintain a budget to ensure a healthy financial future. If you are struggling to create a budget, talk to your financial advisor. Together, you can come up with a plan fit to your unique financial situation and goals. 

Chocolate and flowers may steal the spotlight this Valentine’s Day, but remember financial planning is an act of love and the heart of your family’s future! Setting the groundwork for a stable future through financial planning is a powerful way to show your loved ones just how much you care about their well-being. Contact the Blakely Financial team 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.

Tis the Season: End-of-Year Tax-Saving Strategies

As the year draws to a close, so does the window for strategic tax planning and benefits. The decisions you make regarding your finances before December 31st can significantly impact your tax liability and overall financial well-being for the year ahead. Here we’ll explore end-of-year tax-saving strategies you can take advantage of before the year-end deadline to improve your financial picture in the upcoming year. 

Capitalize on Retirement Contributions

We’re nearing the end of the year, but there’s still time to boost and capitalize on your retirement savings. Be sure you are contributing to retirement accounts, like a 401(k) or an IRA, as they offer immediate tax advantages while helping ensure a secure, financially healthy future. Assess your current contributions and consider optimizing them before the yearly deadline to enjoy both short-term and long-term tax benefits. For IRAs, contributions can often be made until the tax filing deadline of the next year (usually April 15th). Remember: it is important to take a look at your entire financial picture before making significant changes to your financial plan. Talk to your financial advisor to find the best course of action to continue on a path to financial security. 

Leverage Health Savings Accounts and Flexible Spending Accounts

Health-related expenses can take a toll on your finances, but utilizing Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can offer significant tax relief. Both HSAs and FSAs allow you to save for qualified healthcare costs. Any contributions made to these accounts may be tax-deductible, helping to reduce your taxable income. Whether or not you can open an HSA is dependent on your health insurance. These typically offer higher contribution limits and allow you to carry over funds. Opening an FSA is dependent on your employer. This type of account typically has lower contribution limits and does not allow you to carry over funds, so be sure to use them before the end of the year to avoid forfeiting them. Some FSAs allow a grace period or a limited carryover, but it depends on each individual plan. It is vital to weigh your options carefully and discuss any plans with your financial advisor to ensure the best financial outcome for you. 

Optimize Investment Portfolios

End-of-year is a great time to fine-tune your investment strategy. Consider tax-efficient investment practices such as:

  • Diversifying your account types
  • Holding investments for more than one year to qualify for lower capital gains tax rates

Take this opportunity to speak with a financial professional. They can help you diversify and rebalance your portfolio for tax efficiency and long-term growth. 

Charitable Giving for a Purpose

The final months of the year are the season of giving, and your generosity can translate into tax benefits. Charitable contributions to qualified organizations offer the opportunity for tax advantages including deductions, exemptions, and estate planning benefits. Consider various giving options to optimize your end-of-year tax-saving strategies. For example, explore bundling multiple years’ worth of donations into one tax year to exceed the standard deduction. Consult your financial advisor about your philanthropic giving to optimize your financial situation while bettering the world around you. Regardless of the details, remember to gather receipts and any other necessary documents surrounding your charitable contributions to claim the deductions. 

Explore Deductions and Credits

Among the end-of-year tax-saving strategies, there is an abundance of tax credits and tax deductions that should not be overlooked. Tax credits offer a direct reduction of your tax liability. Investigate credits such as:

Thoroughly research any deductions and credits to ensure you meet the eligibility criteria. Take the necessary steps to maximize them to put more money back in your pocket. If you need help discovering which ones are available to you, speak with a financial professional. 

After addressing your current end-of-year tax-saving strategies it is important to review your financial health as a whole. Revisit your financial goals and begin adjusting for the upcoming year. Being financially proactive and making informed decisions will help to optimize your tax situation and begin the new year on solid financial ground. If you are looking to improve your overall financial outlook and secure your financial future in the new 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.
National Fraud Awareness Week: Can You Spot the Fraud Warning Signs?

National Fraud Awareness Week: Can You Spot the Fraud Warning Signs?

According to data from the FTC, consumers lost nearly $8.8 billion to fraud in 2022. The highest reported loss amount came from investment scams and imposter scams. National Fraud Awareness Week, taking place from November 12th through 18th, is an annual event meant to promote anti-fraud awareness and education in hopes of minimizing the impact of fraud. This week serves as a reminder that fraud can strike anyone, anywhere, at any time. Awareness is the first line of defense against fraud, and we are here to help you sharpen your fraud detection skills. Look out for the following fraud warning signs to protect yourself and your finances.

Unexpected Requests & Suspicious Contacts

One of the most prominent fraud warning signs is receiving unsolicited requests for your personal information. These requests can come through emails, phone calls, text messages, and more. The fraudsters will ask for sensitive personal data such as your Social Security number, credit card details, or passwords while posing as trusted individuals or organizations. They frequently use fake names, profiles, or email addresses to deceive fraud victims. Be wary of these requests and be sure to verify the legitimacy of any suspicious or unverified contacts before sharing your information with them or completing any financial transactions. 

Payment in Unusual Forms

Is someone asking you for an unusual form of payment? These odd methods are more difficult to trace, and therefore a fraudster favorite:

  • Gift cards
  • Cryptocurrency
  • Wire transfers

Always verify the legitimacy of requests for financial transactions, especially from unknown and unverified sources. 

Too Good to Be True Offers 

Messages promising extraordinary financial gains, immense discounts, or exclusive limited-time opportunities should be handled with caution. If you think an offer is too good to be true, it probably is. Fraudsters will try to lure you with these rewards, so carefully evaluate the offer before taking their bait. Remember, legitimate opportunities typically take time and effort before experiencing benefits and rarely promise instant and effortless wealth. 

Urgent or High-Pressure Tactics

Urgent and high-pressure tactics are a common way fraudsters manipulate their victims. Limited time offers, immediate financial decisions, and threatening messages are all fraud warning signs. It is important to be cautious when someone tries to push you to make quick and financially significant choices without allowing time for proper consideration. If the source is legitimate, they will likely provide time to evaluate your options and make a decision best for you. 

Unusual Account Activity

A crucial part of detecting fraud is closely monitoring your financial accounts. Keep an eye out for any unusual or unauthorized transactions on your bank and credit card statements. If you spot unfamiliar account activity, promptly report the incident to your financial institution as it could be a clear indication of fraudulent activity. 

Another piece of unusual activity to look out for is any notifications of unexpected changes to your account information such as your passwords, email addresses, or contact details. Fraudsters may attempt to take control of your accounts by altering this information, so it is important to investigate promptly. Confirm any changes with the respective organization through a verified contact method when investigating.

Poorly Designed or Unprofessional Communications

Generally speaking, fraudsters are not investing in the aesthetics of their communications. If you receive a poorly designed or unprofessional email, document, or website, proceed with caution as it can be a fraud warning sign. Look out for mistakes in spelling and grammar, too. Legitimate organizations will typically maintain a professional, polished, and proofread online presence, so evaluate the quality of the materials you receive to help determine their legitimacy.

Remember, awareness is the key to fraud prevention, and it is a collective effort to educate. If you still have questions about spotting fraud warning signs, contact Blakely Financial today. We are happy to help you protect your finances. 

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.

Monstrous Money Mistakes

It may be the season of spooky haunts and horrors, but don’t let these monstrous money mistakes lead you to the financial graveyard!

Investment Zombies

Don’t neglect your investment strategies. Just like zombies mindlessly wander, not actively managing investments can lead to missed opportunities or poor performance, even for high earners. Revisit and reevaluate your investment portfolio periodically to be sure you are diversifying your investments and maximizing your returns. Talking to your financial advisor can help you avoid an investment zombie apocalypse.

Estate Planning Ghouls

Failing to create a comprehensive estate plan can haunt families after a high-earning individual passes away. This mistake can lead to unnecessary taxes, legal battles, and confusion over asset distribution. Meet with your financial professional to discuss the best estate planning options for you and your loved ones. Review your plan annually and make adjustments to reflect any life changes that may occur.

Lifestyle Vampire

This monstrous money mistake involves succumbing to lifestyle inflation. High earners might start spending excessively as their income rises, without properly considering the long-term impact on savings and investments. Don’t bite off more than you can chew with your spending.  It is crucial to find a balance between your desired lifestyle and your long-term financial goals and well-being to really enjoy life to the fullest. 

Debt Demons

Credit card ghouls, student loan specters, and mortgage monstrosities. Oh my! These debt demons come in many forms and can feel like never-ending financial nightmares if not managed properly. Be sure to explore interest rates and different repayment options to pay down your debt, and even consider refinancing your loans or mortgage to make payments more manageable. Utilizing a budget can help you do this more easily. Exorcize these debt demons and keep control of your financial future!

Budget Banshee

You’ll hear the eerie wails of the budget banshees if you neglect proper budgeting. The shrieks serve as haunting reminders of overspending, impulse purchases, debt, disorganized finances, and unexpected expenses. Create a budget unique to your financial situation by tracking your income and expenses and establishing your financial goals. Explore where you may be able to save and remain disciplined when it comes to your spending. Don’t forget to factor an emergency fund into your budgeting to cushion the impact of any unexpected financial shock! Evaluate your financial health routinely and adjust your budget accordingly to banish the budget banshees. 

If you need help battling these monstrous money mistakes, contact Blakely Financial 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.
Optimizing Your 401(k) Contributions

Optimizing Your 401(k) Contributions

What is a 401(k) plan?

A 401(k) plan is a company-sponsored retirement plan that allows eligible employees to contribute a portion of their salary to a variety of investment options. 401(k) contributions are typically “before tax” money, meaning the amount you choose to contribute is deducted from your paycheck before taxes are taken out and you are paying taxes on a smaller portion of your salary. 

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.

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.

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 and an easy way to save for the future. If you have just entered the workforce, retirement may be the last thing on your mind. Or if you are an older employee nearing retirement, you might be thinking it is too late. At any stage of life, 401(k)s can offer specific advantages that make them a great option for investing and saving.

Making the Most of Your 401(k) Contributions

Many employers offer matching contributions to 401(k)s. For example, your employer may offer a 4 percent match, where they will contribute the same amount you do, up to 4 percent. While this is their limit, you can personally contribute more. If you are not contributing to your company’s 401(k) plan and they have a match, you are leaving money on the table! Don’t be concerned if you cannot contribute the maximum amount to your retirement plan. Simply participating in an employer-sponsored plan puts you in a great position for a successful retirement, especially if you start early. If you are unsure about the specifics of your company’s plan, take the time to read over it thoroughly, perhaps with your financial advisor, so you can make the most of your money.

Combined Savings Strategy

A large number of people find success in a combined savings strategy using both a 401(k) and an IRA to truly maximize their retirement funds. A study conducted by the Employee Benefit Research Institute (2020) found that, on average, individuals who owned both a 401(k) and an IRA at some point during the six years of the survey had combined balances about 2.5 times higher than those who owned only a 401(k) or an IRA. People who owned both types of accounts consistently over the period had even higher balances. Talk to a financial advisor to explore your options and decide which is best for you based on your own income and circumstances.

A Few Key Points to Remember about 401(k)s

  • It is a retirement savings plan, so once you put money in it is best to leave it in. 
  • There are penalties if you take the money out before retirement age.
  • 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.

No matter what, 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. If you have questions, it is always a great idea to call a financial advisor for guidance. Contact the Blakely Financial team today to get started saving for your 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.