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Author: Steve LaFrance

Building a Resilient Financial Plan for Life's Uncertainties

Building a Resilient Financial Plan for Life’s Uncertainties

Posted on by Steve LaFrance

Life rarely goes according to plan. Market volatility, career changes, health concerns, and unexpected expenses can test even the most carefully crafted financial strategies. While we can’t predict every twist and turn, we can prepare for them with proactive planning rather than reactive decision-making. 

A resilient financial plan provides you with the flexibility to adapt to change while maintaining focus on your long-term objective. At Blakely Financial, we believe the ability to weather life’s uncertainties is one of the most important skills for building, protecting, and growing wealth over time. 

Core Principles of Financial Resilience

A truly resilient financial plan rests on three foundational principles:

  1. Flexibility: The ability to pivot and adjust your strategies as circumstances change without derailing your long-term goals. 
  2. Diversification: Reducing risk by spreading investments across asset classes, sectors, and geographies.
  3. Liquidity: Maintaining access to cash or liquid assets so you can respond to opportunities or emergencies quickly. 

Keeping these pillars in mind ensures your financial plan remains strong even in turbulent times. 

Step 1: Build and Maintain a Strong Safety Net

An emergency fund is your first line of defense against life’s surprises. For high-income households, we recommend maintaining three to six months of living expenses in easily accessible accounts. These funds should be kept separate from investments earmarked for long-term goals, ensuring you can cover unexpected costs, such as medical expenses, home repairs, or a sudden job loss, without disrupting your portfolio. Money market accounts, high-yield savings accounts, or short-term certificates of deposit (CDs) can be excellent vehicles for this safety net. 

Step 2: Manage Risks with Insurance and Asset Protection

A resilient financial plan goes beyond investments, shielding you from risks that could derail your financial future. This includes life and disability insurance to protect income and family security, long-term care insurance to cover potential healthcare needs later in life, and umbrella policies to provide extra liability coverage beyond standard policies. 

For business owners or those with significant assets, advanced asset protection strategies and estate planning tools can further safeguard your wealth from legal or creditor risks.

Step 3: Plan for Market Volatility

Market downturns are inevitable, but they don’t have to derail your goals. A thoughtful asset allocation strategy tailored to your objectives, time horizon, and risk tolerance can help you ride out volatility without making emotional decisions. Diversification across multiple asset classes can limit losses in turbulent times, while regular rebalancing ensures your portfolio remains aligned with your intended risk level and seizes potential opportunities when the market shifts. 

Step 4: Prepare for Major Life Transitions

Major life transitions such as career changes, relocation, marriage, divorce, inheritance, or health challenges can significantly impact your finances. The more flexible your plan, the easier it is to adapt without sacrificing your long-term vision. Scenario planning can help you make decisions from a place of confidence rather than fear. 

Step 5: Regularly Review and Update Your Plan

A financial plan is not a “set it and forget it” document. It should be a living strategy that evolves as your life, the economy, and tax laws change. At a minimum, we recommend annual or semi-annual reviews to evaluate:

  • Changes in personal goals or circumstances
  • Market conditions and portfolio performance
  • Tax and estate planning opportunities, including adjusting for tax law changes
  • Potential gaps in insurance coverage

Working closely with your financial advisor during these reviews ensures your plan remains robust and relevant. 

The Role of a Trusted Financial Advisor

Financial resilience is built on proactive planning, and having a trusted advisor by your side can help you anticipate challenges before they arise. At Blakely Financial, we take a holistic approach to design plans that adapt to life’s unexpected turns. If you’re ready to strengthen your financial resilience, contact us today. Our team is here to help you prepare for whatever comes next! 

 

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.
Social Security Key Factors to Consider

Social Security: Key Factors to Consider

Posted on by Steve LaFrance

Social Security is one of the most important income sources for American retirees, yet many people claim benefits without a clear strategy, resulting in missed opportunities and reduced lifetime income. It’s essential to make smart, informed decisions about when and how to claim Social Security and to integrate this benefit into a broader financial plan for long-term confidence. In this blog, we’re taking a closer look at what you should know about optimizing Social Security benefits. 

How Social Security Benefits Work

Your Social Security retirement benefit is based on your highest 35 years of earnings, adjusted for inflation. To qualify, you typically need to earn 40 work credits, equivalent to approximately 10 years of work. 

Understanding your Full Retirement Age (FRA), which is the age at which you’re entitled to 100% of your benefit based on your earnings record, is key. FRA ranges from 66 to 67, depending on the year you were born. Claiming before your FRA will permanently reduce your benefit, while delaying beyond FRA increases it by 8% per year until age 70. 

Key Factors to Consider When Claiming Benfits

There are several important factors to consider in deciding when to claim Social Security, including:

  • Claiming Age: You can begin benefits as early as 62, but doing so reduces your monthly benefit. Waiting until FRA or beyond can significantly increase your payout.
  • Life Expectancy: If you have a family history of longevity or are in good health, delaying benefits might pay off in the long run. 
  • Spousal Benefits: Married couples should coordinate their claiming strategies to maximize household income. Spouses can receive up to 50% of the other’s FRA benefit. 
  • Taxes on Benefits: Depending on your total income, up to 85% of your Social Security benefits may be taxable. Effective tax planning can help you manage this. 
  • Other Retirement Income Sources: The timing of your Social Security claim should align with withdrawals from retirement accounts, pension income, and other investment assets. 

Common Claiming Strategies

There is no real “best time” to claim benefits, but there are proven strategies worth considering, including:

  • Delayed Claiming: Waiting until age 70 offers an 8% increase in benefits for each year you delay past FRA, providing valuable guaranteed growth. 
  • Spousal Strategies: Couples can stagger claiming ages to maximize benefits and survivor protections. 
  • Coordinating for Two-income Households: When both spouses have earned benefits, strategic timing can significantly increase total household retirement income. 
  • Survivor and Divorcee Benefits: Widows, widowers, and divorced individuals may be eligible for benefits based on a former spouse’s earnings record, which is an important planning consideration. 

Be sure to speak with your financial advisor about which strategies are best for you and your unique financial situation. 

Integrating Social Security into a Broader Retirement Plan

It’s important not to view Social Security in isolation. The age you claim affects how and when you might draw down other retirement accounts like 401(k)s, IRAs, and taxable investments. Market conditions, inflation expectations, and healthcare expenses should also be factored into your decision. 

At Blakely Financial, our advisors can make projections to help you understand how different claiming strategies will affect your overall financial picture both immediately and throughout your retirement. 

Working with a Financial Advisor to Optimize Benefits

Optimizing Social Security benefits is a highly personalized process. The right strategy for you will depend on your health, financial goals, other income sources, tax situation, and family circumstances.  Our advisors specialize in retirement income planning and Social Security optimization, using sophisticated tools to help you make informed decisions that fit your long-term goals. We also stay on top of legislative changes and Social Security rules so we can ensure your plan remains aligned with your goals. 

The decision about when and how to claim Social Security can have a lasting impact on your financial future, and a well-crafted claiming strategy integrated with your overall financial plan can help you secure greater peace of mind and a more confident retirement. Contact Blakely Financial today to begin exploring your options. 

 

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.
Strategic Education Funding: Advanced Approaches

Strategic Education Funding: Advanced Approaches

Posted on by Steve LaFrance

Higher education has never been more valuable – or more expensive. As tuition costs rise year after year, many families are looking for strategic ways to fund their children’s or grandchildren’s education without sacrificing their own financial security. The good news is, beyond traditional savings, there are other strategies you can use to make a meaningful difference. At Blakely Financial, we understand that proactive, tax-smart education planning is essential to maintaining multi-generational wealth. In this blog, we are highlighting several advanced approaches families can consider when building an education funding plan that aligns with their long-term goals.

Maximize 529 Plans with Tactical Contributions

529 college savings plans remain one of the most tax-efficient ways to save for education, offering tax-free growth and tax-free withdrawals for qualified education expenses. Did you know there are advanced strategies you can leverage beyond regular monthly contributions? These include:

  • Front-Loading Contributions: Take advantage of the IRS provision that allows you to contribute up to five times the annual gift tax exclusion in a single year per beneficiary. For 2025, this is up to $95,000 for individuals or $190,000 for a married couple, potentially jumpstarting education savings early.
  • State Tax Benefits: Some states offer tax deductions or credits for 529 contributions. If you live in a participating state, this can provide immediate tax savings on top of long-term growth potential. 
  • Use Beyond College Tuition: 529 plans can now be used for graduate school, certain apprenticeships and trade programs, and even K-12 tuition (up to $10,000 per year per student).
  • Changing Beneficiaries: If one child doesn’t use all of their 529 funds, you can easily transfer the account to another qualifying family member without penalty.

Custodial Accounts (UGMA/UTMA)

Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) accounts offer flexibility for saving toward a child’s future. Unlike 529 plans, funds aren’t limited to education expenses and can be used for anything that benefits the child. The key advantages include no contribution limits and broad investment options, however, there are important considerations to make note of:

  • Assets belong to the child once they reach the age of majority. This is usually 18 or 21, depending on your state.
  • Custodial accounts are counted as student assets on financial aid applications, which can reduce eligibility for need-based aid. 

These accounts can play a role in a broader education funding strategy, but should be carefully coordinated with financial planning aid. 

Utilize Tax-Efficient Investment Accounts for Flexibility

For families seeking flexibility and long-term tax efficiency, taxable brokerage accounts can be an effective college funding vehicle. Advantages include:

  • No restrictions on how or when the money is used.
  • Potential for long-term capital gains tax treatment if held for over a year. 
  • Flexibility to pivot funds for other financial priorities if education costs are lower than anticipated.

As with any investment strategy, it’s crucial to match your asset allocation to your time horizon. More aggressive investments may be appropriate when children are young, gradually shifting to conservative options as college years approach. 

Explore Financial Aid Positioning Strategies

Even for high-earning families, strategic financial aid positioning can be valuable. Key tactics include:

  • Minimizing Student-Held Assets: Since student assets are weighted more heavily in financial aid formulas, consider reducing or repositioning these funds before applying for aid. 
  • Timing Income and Gifts: Large financial moves, like bonuses or asset sales, can impact aid eligibility if they occur in key income reporting years. Working with an advisor can help time these events wisely.
  • Utilizing Tax-Advantaged Accounts: Maximize 529 plans, IRAs, and other accounts that may not count as heavily against aid formulas. 

Smart financial aid positioning can help preserve eligibility for grants, scholarships, and need-based aid opportunities, even when total household wealth is significant.

Roth IRAs for Dual-Purpose Savings

Roth IRAs are typically viewed as retirement vehicles, but they also offer strategic flexibility for education funding. Contributions to these accounts can be withdrawn tax-free at any time, and earnings can be withdrawn penalty-free for qualified education expenses.

This approach is especially appealing for families unsure if their children will attend college or for those who want to maintain flexibility for retirement. If the funds aren’t needed for education, they can continue growing for retirement on a tax-advantaged basis. 

Cash Value Life Insurance as a Supplementary Tool

For families interested in diversification and asset protection, cash value life insurance can serve as a supplemental education funding tool. Policyholders can borrow against the policy’s cash value tax-free, and these loans typically don’t factor into financial aid formulas. While this strategy isn’t right for everyone, it can be a powerful component of a complex wealth transfer and education funding plan when paired with traditional savings vehicles. Talk to your advisor about which options are best for you and your family. 

 

Education funding is more than saving for tuition; it’s about preserving family wealth and creating opportunities for the next generation. When you work with Blakely Financial, we will help you develop a comprehensive education funding plan to work in harmony with your broader wealth management goals. Ready to explore your options? Contact us today to schedule a consultation and build a strategic and personalized plan for your family’s financial future. 

 

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

Financial Literacy Month: Books to Read

Posted on by Steve LaFrance

Financial Literacy Month is the perfect time to sharpen your money management skills and take control of your financial future. One of the best ways to improve your financial knowledge is through reading, and we’ve rounded up some of our favorite books offering insights, smart investing strategies, and real-world financial wisdom to help you avoid investment pitfalls, retire early, or build long-term wealth.

 

How Not to Invest by Barry Ritholtz

Many investment books focus on what you should do, but How Not to Invest takes the opposite approach, highlighting common mistakes investors make and how to avoid them. Barry Ritholtz, a respected financial expert, provides insights into behavioral biases, poor decision-making, and misleading investment trends that can negatively impact financial growth. By learning what not to do, investors can make more informed decisions and develop a stronger, more disciplined investment strategy.

This book is particularly useful for those who want to gain confidence in their investing approach and avoid costly missteps that can slow down wealth accumulation.

Quit Like a Millionaire by Kristy Shen and Bryce Leung

Many people believe building wealth and retiring early are only possible for high earners, but Quit Like a Millionaire challenges this notion. Kristy Shen and Bryce Leung share their real-life journey of achieving financial independence and retiring in their 30s despite growing up in poverty and without relying on an ultra-high salary.

The book provides a practical roadmap for achieving financial freedom, covering topics such as smart saving habits, investment strategies, and how to optimize expenses without sacrificing quality of life. The authors also explain why traditional financial advice doesn’t always apply to modern lifestyles and how to break free from outdated money myths. 

This book is ideal for anyone looking to take control of their financial future and explore alternative paths to financial independence.

Rich Dad Poor Dad by Robert T. Kiyosaki

This personal finance classic introduces two contrasting mindsets about money: one from a “rich dad” who understands how wealth is built, and one from a “poor dad” who follows traditional financial thinking. Robert Kiyosaki argues that financial success is not just about working hard but about making smart financial decisions, leveraging investments, and building assets that generate long-term income. 

Rich Dad Poor Dad breaks down key concepts like the difference between assets and liabilities, the importance of financial education, and why traditional schooling often fails to teach real-world financial skills. 

This book is a worthy read, whether you’re just starting your career or are looking for a fresh perspective on money, offering timeless lessons on wealth-building that challenge conventional financial wisdom.

Get a Financial Life by Beth Kobliner

Navigating personal finance can feel overwhelming, especially for young professionals balancing student loans, rent, credit card debt, and early-stage investing. Beth Kobliner’s Get a Financial Life provides a clear, straightforward guide to managing money in your 20s and 30s, covering essential topics like budgeting, debt repayment, investing, insurance, and retirement planning. 

Unlike some financial books that assume readers have a background in finance, this one breaks down complex financial concepts into easy-to-understand, practical advice. This book is especially helpful for those looking to establish strong financial habits early in life and create a foundation for long-term financial security. 

Principles by Ray Dalio

Ray Dalio, billionaire investor and founder of Bridgewater Associates, shares the core principles that have guided his career and investment philosophy. While Principles is not solely about finance, it shares valuable knowledge and advice on decision-making, risk assessment, and long-term strategic thinking – all of which are essential for building and maintaining wealth.

Dalio discusses the importance of developing clear financial and personal principles, using data-driven decision-making, and adapting to the changing world of finance. His principles are not just applicable to investing but also to business, leadership, and personal growth, making this a great read for anyone looking to refine their approach to financial and life success.

 

Reading is just the beginning of reaching financial literacy. Applying what you learn is what truly makes a difference! If you’re ready to take the next step in your financial journey, Blakely Financial is here to help. Our team will develop personalized strategies tailored to your goals, helping you make the most of your 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.
SECURE 2.0 Act Key Changes to Your Retirement Planning

SECURE 2.0 Act: Key Changes to Your Retirement Planning

Posted on by Steve LaFrance

Big changes are here for retirement planning in 2025! The SECURE 2.0 Act is designed to make saving for retirement easier and more accessible. Several key updates are taking effect this year that could impact your retirement savings strategy. 

Higher Catch-Up Contributions for Ages 60-63

Starting in 2025, individuals ages 60 to 63 can contribute more to their retirement plans. The new limit allows you to contribute up to $10,000 or 150% of the regular catch-up contribution limit for that year (indexed for inflation). This applies to 401(k), 403(b), and similar plans, providing a valuable opportunity for those nearing retirement to boost their savings. 

Mandatory Automatic Enrollment for New Plans

To encourage retirement savings, newly established 401(k) and 403(b) plans must automatically enroll employees at a contribution rate of 3% to 10%, with automatic annual increases of 1% until reaching 10% to 15%. Employees still have the ability to opt out or adjust their contribution rates. 

Emergency Savings Linked to Retirement Accounts

Employers can now offer Emergency Savings Accounts (ESAs) linked to their retirement plans. This allows employees to save up to $2,500 in post-tax contributions. 

Withdrawals are penalty-free to provide financial flexibility in case of emergencies and any unused ESA funds can be rolled over into the employee’s retirement account for long-term savings. 

SIMPLE and SEP Plan Enhancements

Employers offering SIMPLE IRAs can now:

  • Provide higher contribution limits for employees.
  • Make additional employer contributions beyond the standard match.

Additionally, both SIMPLE and SEP IRAs will allow Roth contributions, giving employees more tax-planning flexibility.

Starter 401(k) Plans

For employers without retirement plans, starter 401(k) plans offer an easy alternative. These plans feature auto-enrollment with contributions between 3% and 15% of salary. 

This option expands access to retirement savings for small businesses and employees without existing plans.

Long-Term, Part-Time Worker Eligibility

Part-time employees now have an easier path to retirement savings. Workers only need 500 hours per year for 2 consecutive years, down from 3 years, to be eligible for employer-sponsored retirement plans.

Roth Treatment for Catch-Up Contributions

Employees earning over $145,000 annually must now make Roth catch-up contributions (post-tax) rather than pre-tax contributions. This ensures tax revenue is collected upfront but allows for tax-free growth in retirement.

These important updates to the SECURE 2.0 Act can expand savings opportunities, encourage automatic enrollment, and provide more flexibility for both workers and retirees. If you’re unsure how these changes will impact your financial plan and future, reach out to the Blakely Financial team today to discuss strategies tailored to 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.
Securing Your Legacy: Questions to Guide Your Family Business Succession and Transition

Securing Your Legacy: Questions to Guide Your Family Business Succession and Transition

Posted on by Steve LaFrance

Family businesses are built on hard work, shared values, and a vision for the future, and therefore, planning for family business succession can be challenging. Succession planning involves more than just passing the baton – it is often a complex and emotional process addressing family dynamics, aligning on a long-term vision, and making strategic decisions to protect the business’s success and your family’s legacy. Thoughtfully addressing critical questions can help ensure a smooth transition and safeguard what you and your family have worked so hard to build. Here are five key questions to help guide your family through this process:

What are the history, values, and objectives of our family?

The first step in successful succession planning is to take a step back and reflect on the history, values, and objectives that have shaped your family business. Understanding these elements of your business’s core identity ensures future decisions and leadership transitions remain consistent with your family’s legacy and mission. 

To address this question, hold discussions with family members to revisit the story of your business’s founding and the values that have guided it through the years. Identify shared goals for the future such as growth, community impact, or preserving family leadership. Aligning on these factors ensures continuity, keeps the business grounded in its identity through transitions, and provides clarity for future leaders. 

Is the best solution to divide the business to avoid conflict?

Conflict is one of the biggest threats to family business continuity. For some families, dividing the business among heirs may seem like the simplest solution to prevent disputes, but it is not always the best option. Splitting the business can dilute its operational and financial strength, making it harder to compete and thrive in the long run. 

This decision requires careful consideration. Evaluate whether dividing the business is financially and operationally viable and consider the implications for brand identity, customer relationships, and overall profitability. Openly discuss these potential risks and benefits with family members and trusted advisors. Proactively addressing the possibility of division ensures all family members understand the implications and helps reduce the risk of misunderstandings or conflict later on.

What role should a board of directors play?

A board of directors can serve as a stabilizing force during and after a leadership transition. Whether the board consists of family members, external advisors, or a combination of both, it can help provide structure, accountability, and impartial guidance. The professionalism and skill a board brings to the decision-making process are crucial to reducing the risk of emotionally driven choices.

Define the board’s composition, role, and authority, and consider whether it will include independent directors who bring valuable industry knowledge and an unbiased perspective. Additionally, set clear guidelines for how the board will operate and support the transition process. A well-structured board can mediate conflicts, support decision-making, and keep the business focused on its long-term objectives. 

Should multiple siblings and/or cousins take over the business together?

When multiple family members inherit leadership roles in the family business, it can lead to collaboration – or conflict. The keys to avoiding power struggles are clear communication and expectations. Without defined roles and responsibilities, transitioning to joint leadership can lead to confusion, inefficiency, and disputes jeopardizing both the business and family relationships. 

Evaluate each individual leader’s skills, interests, and commitment to the business. Based on this evaluation, clearly define roles, responsibilities, and decision-making processes. You may even want to consider implementing leadership development programs to prepare the next generation for their roles. Establishing a framework for co-leadership will help ensure a smoother transition, accountability, and minimal risk of misunderstandings or conflicts. 

Is everyone aligned on the long-term vision for the business?

Regardless of the type of business, ensuring all stakeholders share a common vision is critical to maintaining cohesion and driving the organization forward after a transition. In a family business, every family member involved must share a unified vision for its future. Misalignment can create internal conflict and tension and derail plans for growth or stability. 

Facilitate honest and open discussions among family members about long-term goals, including strategies for growth, expansion, diversification, modernization, and maintaining a steady focus on the core business. Be sure to incorporate the perspectives of younger generations, as their insights can help drive the innovation and modernization necessary for success. Coming together with a unified vision fosters cohesion, builds trust, and ensures all stakeholders are working toward the same goal to preserve the business’s longevity. 

Planning for family business succession is no small task – it’s a process requiring thoughtful consideration and honest communication. Every family business is unique, and working with experienced advisors who understand both the financial and emotional aspects of succession can make all the difference. The Blakely Financial team is ready to guide you and your family through this important journey, helping you secure your legacy and protect your family’s hard-earned success. Contact us today to get your planning 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.
Beware of the Financial Skeletons in Your Closet

Beware of the Financial Skeletons in Your Closet

Posted on by Steve LaFrance

We all have financial habits or forgotten accounts hiding in the shadows, going unnoticed until they start causing trouble. These “financial skeletons” can slowly drain your wealth, create stress, and keep you from achieving your financial goals. At Blakely Financial, we’re here to remind you of these financial skeletons in your closet and help you uncover smarter ways to grow and maintain your wealth. 

Stagnant Savings Accounts

Leaving your money in a stagnant savings account is like burying it in a cursed chest that only loses its shine. While your savings may feel secure, leaving your money in a low-interest account can slowly drain its value over time, thanks to inflation. Move your money to a more lucrative spot before inflation turns your savings into dust!

Savings accounts are valuable for short-term liquidity and emergency funds but to build long-term wealth, consider a diverse variety of investments including stocks, bonds, real estate, and more. 

Underfunded Emergency Fund

An underfunded emergency fund is the financial boogeyman hiding under your bed. You may not see it, but you never know when a financial surprise will creep up—a medical emergency, car repair, or unexpected expense can strike at any moment. Without a well-funded emergency fund, you could find yourself scrambling to cover the cost, leaving your financial stability on shaky ground. 

We recommend building an emergency fund with 3 to 6 months’ worth of expenses saved to provide peace of mind when life throws you a curveball. Create good saving habits by making consistent contributions to your fund and regularly monitoring your progress. Even small contributions will get you closer to financial security!

Neglected Retirement Accounts

Beware the dusty tombs of your forgotten retirement accounts! Left unchecked, these relics from the past can become financial traps full of hidden fees and poor investments. If you’ve hopped from job to job over the years, you may have left behind old 401(k)s or retirement accounts without a second thought. These forgotten accounts can quietly lose value with missed growth, hidden fees, or poor investment performance, leaving your future at risk. Don’t let your golden years turn into a financial nightmare – unearth those accounts and bring them back to life!

You have a few options for old employer retirement accounts including keeping them with your old employer’s plan, rolling your 401(k) over into an IRA or into your new employer’s plan, and cashing out. All options have benefits and disadvantages, so it is important to understand and weigh your options. Talking to your financial advisor can help you figure out which is best for you and your unique financial situation. 

 

From high-yield savings accounts to strategic investments, we’ll make sure your money is working for you, not wasting away as financial skeletons in your closet. 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.
Building Wealth Investing in Real Estate

Building Wealth: Owning Real Estate

Posted on by Steve LaFrance

Owning real estate has long been regarded as a key strategy for accumulating wealth. For high-net-worth individuals and experienced investors, real estate offers distinct opportunities to not only preserve wealth but also generate substantial returns. In this blog, we will explore how residential real estate can be used to build wealth and diversify your investment portfolio.

Long-Term Benefits of Owning Real Estate

-Owning real estate offers significant advantages, particularly for those seeking long-term stability and growth. Whether you’re purchasing a primary residence or acquiring an investment property, both approaches can provide substantial returns. In the case of an investment property, you benefit from the ability to write off operational expenses, reducing your taxable income while capitalizing on property appreciation rates, which often outpace inflation in high-demand areas.

For high-end real estate, appreciation is typically more pronounced, driven by market exclusivity and demand for luxury living. Premium properties can see appreciation well beyond the average 3-5% per year, particularly in top-tier markets. Additionally, luxury real estate can serve as a hedge against market volatility, offering a tangible asset class. By diversifying into real estate, you can help mitigate risk and have potential for steady, long-term returns.

Short-Term Benefits of Strategic Property Investments

High-net-worth investors can also benefit from short-term real estate strategies. One option is acquiring properties in need of renovation, transforming them into high-end homes, and selling at a significant profit—a practice known as “flipping.” However, for those with a long-term wealth-building mindset, another approach is acquiring multi-family residences, living in one unit, and renting out the others.

This strategy not only provides immediate rental income but also offers a tax-efficient way to expand your real estate holdings while benefiting from lower primary residence interest rates. Over time, as you make strategic improvements, you increase the property’s value and rental income potential. By repeating this process across multiple properties, you can build a robust real estate portfolio with relatively modest initial capital.

Enhancing Your Wealth Through Real Estate

Whether you are looking to expand your portfolio with luxury real estate or explore high-end investment properties, Blakely Financial is here to support your financial goals. We understand the unique needs of high-net-worth individuals and can provide strategic guidance on integrating real estate into your comprehensive wealth management strategy.

Contact us today to discover how investing in real estate can elevate your financial plan and help you achieve long-term financial success.

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.