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Author: Robert Blakely

Tax Day is Almost Here What You Should Be Doing Now

Tax Day is Almost Here: What You Should Be Doing Now

Posted on by Robert Blakely

Tax Day is just around the corner! With April 15th quickly approaching, now is the time to ensure your financial house is in order. Tax preparation often involves more than just filing paperwork. You’ll want to optimize deductions, minimize liabilities, and make strategic financial moves to protect your wealth. A little preparation now can help you avoid last-minute stress and even help maximize your refund. 

Gather and Organize Your Documents Before Tax Day

High earners often have multiple income sources, making tax preparation more complex. Start the process by gathering key documents such as:

  • W-2s and 1099s for wages, self-employment income, and investment earnings.
  • K-1s from partnerships, S-corps, or trusts. These may arrive later, so plan accordingly.
  • Capital gains and losses reports from brokerage accounts. 
  • Mortgage interest statements, property tax records, and real estate-related deductions.
  • Charitable donation receipts for cash and non-cash contributions. 

Use a checklist to make sure nothing is missing before filing. Keeping everything organized ensures a smoother filing process overall and helps avoid any missed deductions. 

Maximize Last-Minute Tax Strategies

One of the advantages of proactive tax planning is the ability to reduce taxable income before filing. Consider maxing out your contributions to tax-advantaged accounts like a traditional IRA or a Health Savings Account (HSA) to lower your taxable income. Additionally, review your capital gains strategies, such as tax-loss harvesting, to offset investment gains. Prepaying deductible expenses, such as property taxes or medical costs, can also reduce taxable income before filing, but be sure it makes sense for your overall financial plan before making a decision. 

Understand the Impact of Recent Tax Law Changes

With new tax laws and IRS updates, you should stay informed about:

  • Phaseouts and limitations on deductions and credits due to income thresholds.
  • Alternative Minimum Tax (AMT) exposure, which can impact those with high investment income or large deductions.
  • Roth contribution rules and backdoor Roth IRA opportunities, especially if you are over the income limit for direct contributions. 

A financial advisor can help you navigate these complex changes and identify the most tax-efficient strategies. 

Plan for Estimated Taxes and Potential Liabilities

Many high-income individuals have tax obligations beyond their W-2 wages, such as self-employment or side business income requiring quarterly estimated tax payments, investment gains or rental property income that may result in unexpected tax liabilities, or additional Medicare surtaxes for those earning above $200,000 (single) or $250,000 (married filing jointly).

If you expect to owe a significant amount, consider making an additional estimated tax payment to reduce potential penalties. 

Work with a Tax Professional

The more complex your financial situation, the more valuable professional guidance becomes. A skilled CPA or tax advisor can help you identify deductions or credits you may overlook, optimize your tax strategy for future years, including estate and gift tax planning, and ensure compliance with changing tax regulations to minimize audit risk. If you don’t already have a tax professional, now is the time to schedule an appointment before they get booked up. Talk to your financial advisor to see if they have any professional recommendations.

The countdown to Tax Day has begun! Use the upcoming weeks to prepare your documents, leverage last-minute strategies, and work with a trusted financial team to smooth the process and optimize your filing. At Blakely Financial, we help our clients navigate tax season with confidence. Contact us today for personalized guidance to ensure your financial strategy aligns with your goals. 

 

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.
Choosing Your Power of Attorney

Choosing Your Power of Attorney

Posted on by Robert Blakely

When it comes to financial and estate planning, choosing a Power of Attorney (POA) is one of the most important decisions you will make. This person is designated to act on your behalf in legal, financial, or healthcare matters if you’re unable to make decisions yourself, and selecting the right person for this role ensures that your wishes are carried out effectively and responsibly. At Blakely Financial, we know this decision can feel overwhelming. To help guide you, we’ve outlined key considerations and questions to ask when choosing your Power of Attorney.

What is a Power of Attorney?

A Power of Attorney is a legal document granting someone you trust the authority to make decisions on your behalf. POAs can serve a variety of purposes, from managing your financial accounts to making critical decisions regarding healthcare. There are different types of POAs, including:

  • Durable Power of Attorney, which remains in effect even if you become incapacitated.
  • Limited Power of Attorney, which grants authority for specific tasks or a limited time frame.
  • Healthcare Power of Attorney, which allows someone to make medical decisions for you.

Choosing the right person for this role is critical to ensuring your financial goals and personal wishes are respected.

Key Questions to Consider

  1. Do they understand your financial goals?

It is important to choose someone who understands both your short and long-term financial goals. Whether it is saving for retirement, contributing to a charitable cause, or protecting your legacy, your POA should have a clear understanding of what is important to you, so their decisions align with your priorities.

  1. Are they trustworthy and dependable?

Trustworthiness is a non-negotiable quality when choosing your Power of Attorney. This individual will have access to sensitive financial accounts and personal information as well as the ability to make significant decisions on your behalf. You need to choose someone who will act with integrity and in your best interest at all times. 

  1. Will they act in your best interests?

A strong POA must prioritize your needs above all else, even in tough or emotionally charged situations. For example, they may need to make difficult financial decisions during a family disagreement or resist external pressures that conflict with your goals.

  1. Are they comfortable making tough decisions under pressure?

Your POA must have the emotional resilience to handle stressful situations and the ability to think critically in these stressful times. This is especially important in moments of crisis, such as medical emergencies or legal disputes, where they need to make clear, well-thought-out decisions in your best interest.

  1. Do they live nearby or have the availability to step in quickly if needed?

Proximity and availability matter, especially in situations where immediate decisions are required. While a POA does not necessarily need to live in the same city, they should have the time and flexibility to act quickly when necessary. If your POA does live far away, frequent communication and travel availability should be considered. 

  1. Do they have the financial knowledge or willingness to seek professional advice when needed?

Your POA doesn’t need to be a financial expert, but they should have a basic understanding of finances or the willingness to consult professionals like financial advisors or estate attorneys to ensure informed and responsible decision-making.

  1. Will they communicate effectively with family members or other advisors involved in your plan?

Your POA may need to collaborate with family members, healthcare providers, or financial professionals to carry out your wishes. Strong, diplomatic communication skills are essential to avoid misunderstandings and conflicts. 

Other Considerations When Choosing Your Power of Attorney

In addition to choosing a primary Power of Attorney, it is wise to name an alternate in case your first choice is unable or unwilling to fulfill their responsibilities. This provides an added layer of security for your plan.

Remember, your POA designation must be formalized through a legal document for it to take effect. Working with both a financial advisor and an estate attorney helps ensure your plan is comprehensive and aligned with your goals.

Choosing your Power of Attorney is one of the most important decisions you’ll make when planning for the future. By considering these questions and working with a trusted advisor, you can feel confident in choosing a POA who will act in your best interest and uphold your wishes. For guidance on this or any other aspect of your financial plan, contact the Blakely Financial team today. We’re here to help you navigate every step of your financial journey. 

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.
Tax Benefits of Charitable Giving

Tax Benefits of Charitable Giving

Posted on by Robert Blakely

Charitable giving can make a powerful, positive impact. When planned strategically, charitable donations can not only benefit the causes you care about but also offer significant tax benefits such as deductions and other incentives to reduce your taxable income. In this blog, we’re exploring the various tax benefits of charitable giving to help you make informed decisions that support both your community and your financial future.

Charitable Contribution Deductions

As a donor, if you choose to itemize deductions on your tax return rather than take the standard deduction, you can deduct contributions made to qualified charitable organizations. These can include cash donations, property, or other assets donated to organizations like nonprofits, educational institutions, or religious groups. For cash donations, donors can generally deduct up to 60% of their adjusted gross income (AGI). For non-cash assets, such as real estate or personal property, the deductible amount may vary and may be capped at 30% of AGI, depending on the nature of the asset and the charity type.

Additionally, you may be able to make deductions for volunteering expenses. While volunteer time itself isn’t deductible, out-of-pocket expenses related to volunteer work may be. This can include travel, supplies, uniforms, and other costs directly associated with the charity, as long as they are necessary to the work being done. 

It is also important to note that some states offer additional tax incentives or credits for charitable contributions, which can enhance federal tax savings. Talk to your financial advisor to learn more about your options to maximize your tax savings while giving back to your community.

Qualified Charitable Distributions (QCDs) and Donor Advised Funds (DAFs)

A QCD allows individuals who are 70 ½ years of age or older to make tax-free donations directly from their IRA to charity, with an annual limit of $100,000 per person. QCDs are counted toward the Required Minimum Distributions (RMDs) for the year, allowing you to reduce your IRA balance without increasing taxable income and triggering additional income tax. This is particularly beneficial for those who do not itemize deductions, as this tax benefit doesn’t require itemization. 

DAFs are another tax-efficient way to manage charitable contributions. Contributing to a DAF allows you to receive an immediate tax deduction in one tax year and then decide which charities to support over several years. This flexibility is especially helpful for high-income years when you need a larger deduction or for folks who alternate between taking the standard deduction and itemizing in different years.  

Donation of Appreciated Assets

Donating long-term appreciated assets, such as stocks, bonds, or real estate, allows the donor to avoid paying capital gains tax and still claim a charitable deduction. 

When donating an asset held for over a year, the deduction amount is generally the fair market value of the asset at the time of donation. This benefits you as a donor significantly because you avoid the capital gains tax you would otherwise owe if you sold the asset, potentially increasing the tax savings associated with your charitable contribution.

Carryover of Excess Contributions

If your total charitable contributions exceed the allowable deduction limit for the year, you can carry over the excess and apply it to future tax years. Charitable contributions above the AGI limits can be carried forward for up to five years, allowing donors to maximize their deduction over time, spreading the tax benefits and potentially avoiding the need to limit annual giving. 

Estate Tax Benefits

For high-net-worth individuals, charitable giving can also be a strategic part of estate planning, as it reduces the size of the taxable estate, thereby lowering estate tax obligations.

Donations made as part of an estate plan can lower the estate’s value, which is especially beneficial for estates that exceed the federal estate tax exemption amount. Additionally, charitable bequests can be deducted from the estate’s gross value, which may reduce the overall estate tax liability. 

Our Favorite Charitable Organizations

Are you ready to make charitable contributions but unsure where to start? These are some of our team’s favorite organizations to support: 

  • Rob and Yesy’s pick: United Way, developing community resources and partnerships that support a broad array of critical health and human service needs in our community
  • Steve’s pick: Kiwanis, improving the world one child and one community at a time.
  • Emily’s pick: SPUR North Shore, mobilizing volunteers in service and enrichment opportunities to support the needs of the North Shore Community.
  • Larry’s pick: Wings for Widows, providing free, professional coaching and education to help widowed men and women navigate the financial trauma experienced in widowhood.
  • Donna’s pick: Junior League of High Point, committed to promoting voluntarism and developing the potential of women in our community.
  • Cara’s pick: Community Servings,  an organization providing medically tailored, nutritious, scratch-made meals to chronically and critically ill individuals and their families
  • Erin’s pick: Best Buddies, which serves individuals with intellectual and developmental disabilities (IDD) and their families.

To fully leverage the tax benefits of charitable giving, it is essential to fully understand the rules and regulations at hand. It is also recommended that you consult a financial advisor who can guide you in making tax-efficient donations. At Blakely Financial we are here to help you navigate these decisions so you can give with confidence, knowing your contributions are making a meaningful impact both for others and for your own financial future. 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.
What to Know About 401(k) Contributions

What to Know About 401(k) Contributions

Posted on by Robert Blakely

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

Posted on by Robert Blakely

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

Posted on by Robert Blakely

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

Posted on by Robert Blakely

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

Posted on by Robert Blakely

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?

Posted on by Robert Blakely

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

Posted on by Robert Blakely

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.