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Category: Financial Planning

The Pinwheel of Financial Wellness

The Pinwheel of Financial Wellness

Posted on by Emily Promise

January is Financial Wellness Month and the start of a new year – the perfect time to focus on and evaluate your financial health. Our pinwheel highlights the key areas we cover to create a comprehensive plan for every client at Blakely Financial. From investing to retirement and beyond, we make sure every piece of your financial wellness is in place. 

Budget Planning

When creating a comprehensive financial plan, it is important to begin by discussing your goals. Are you saving for college? Preparing for retirement? Looking to purchase a second home, or maybe remodel your kitchen? There is no one-size-fits-all plan for your finances!

Based on your goals, your financial advisor will help you create a budget to provide the confidence and clarity you need to relax and enjoy your years ahead while working towards your goals. They will work with you every step of the way to manage your estate, prepare your finances to support the people you care about most, and strengthen your financial legacy. 

Employer-Sponsored Retirement Plan

Take full advantage of any retirement plans offered by your employer. Some plan options may include 401(k)s, Roth IRAs, SEPs, and more. When choosing the right employer-sponsored plan for you, there are several elements to consider:

  • Does your employer offer a contribution match? If so, are you leveraging it properly?
  • How far away from retirement are you?
  • Are you saving enough to maintain your lifestyle during retirement?

It is important to fully understand all of your retirement plan options to maximize your savings. Sit down with your financial advisor to decide which option is best for you and your unique financial situation.

Life Insurance

No matter your current stage in life, the best thing you can do for yourself and your loved ones is to be prepared for anything life throws at you. Your financial advisor is here to help you prepare for the unexpected. They will help you create a comprehensive plan including life insurance options specific to your overall needs to protect your family’s financial future. 

Education & College Planning

Do you lay awake at night worrying about the cost of your children’s education? You are not alone! Planning college funds and paying for private schools can be intimidating. Meeting with a financial advisor can help you get started with a strong financial plan factoring in education and college planning, so you can sleep more soundly. By starting early, you can take advantage of tax-advantaged savings options like 529 plans, which grow over time to help offset rising tuition costs.

Estate Planning

Spending time now to properly plan for the future can provide financial security for your family and alleviate any stress you may have about the distribution of your assets. Although discussing end-of-life arrangements is not always comfortable, estate planning is essential to a sound financial plan. Working with your financial advisor along with an estate attorney can help you plan and preserve the legacy you have worked so hard to build. By incorporating strategies such as truss or gifting, you can ensure your assets are passed on efficiently and according to your wishes. 

Tax Planning

Properly planning your taxes is a major aspect of your financial wellness. This means taking advantage of all available deductions, optimizing your contributions, and more. Start thinking about what can be done now to save yourself from stress later on. Keep track of dates for your deductions, contributions, and donations. Consult a tax professional for guidance on your specific tax situation and for policies and regulations that may pertain to you. 

Health Care

As we age, the cost of health care rises significantly, making it essential to factor into your financial wellness and comprehensive financial planning. Consider expenses like premiums, out-of-pocket costs, and long-term care. Additionally, you may want to consider opening a Health Savings Account(HSA) if eligible, as it offers tax advantages and can be used to cover medical expenses in retirement. A trusted financial advisor can walk you through your options to help you allocate your funds wisely and ensure you and your family’s healthcare needs are covered without compromising your financial goals. 

Long-Term Care

Setting funds aside for long-term care in old age is often overlooked, but it is an integral part of any well-rounded financial plan. Long-term care insurance may be a practical solution to funding care needs, whether for at-home care or a nursing home, providing peace of mind for you and your loved ones. This type of insurance can also be a vital part of your estate planning, talk to your financial advisor to evaluate your options and ensure you are prepared.    

Social Security Optimization

Are you making the most of your social security benefits? To optimize your benefits you may want to consider:

  • Delaying claiming past full retirement age for higher payments
  • Coordinating spousal benefits strategically
  • Planning for potential benefit taxes based on your income

If you receive social security benefits, you can expect them to increase by 2.5% due to a cost-of-living adjustment in 2025. Limits for taxable earnings and income thresholds can also change year-to-year, so be sure to sit down with your advisor to see how these changes impact you and your finances. 

Retirement Income

Planning your retirement income is essential to ensuring your savings last throughout your golden years. An experienced financial advisor can help you develop a strategy to maximize income, minimize taxes, and meet your goals. Key considerations include creating a withdrawal strategy, managing Required Minimum Distributions (RMDs), factoring in inflation, and diversifying income streams. By regularly reviewing your spending patterns and income strategy, you can enjoy a fulfilling retirement with confidence!

A sound financial plan should include all of these aspects to ensure your long-term financial security. No matter your goals, you have a team behind you at Blakely Financial. Take the first step toward your financial wellness journey and contact us today!

 

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.
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.
Year in Review: Financial Updates

Year in Review: Financial News

Posted on by Emily Promise

As 2024 draws to a close, it is the perfect time to reflect on the year’s financial news and developments that have influenced individuals, businesses, and markets alike. From tax adjustments to changes in policies and trends, these key financial updates have posed both challenges and opportunities throughout the last year.

Tax Updates

2024 saw significant adjustments in tax laws, providing new opportunities for individuals and families to save. Here are a few:

  • Higher Standard Deduction: For 2024, the standard deduction increased to $29,200 for married couples filing jointly, $14,600 for single taxpayers and married individuals filing separately, and $21,900 for heads of household. 
  • EV Tax Credits Enhanced: Buyers of qualifying electric vehicles (EVs) now have the option to transfer the federal $7,500 EV tax credit to the dealer at the time of purchase, lowering the upfront cost of the car. This simplifies the process for buyers and incentivizes eco-friendly choices!
  • Retirement Contributions: Contribution limits for IRAs and workplace retirement accounts increased again in 2024. Individuals can now contribute up to $7,000 to traditional and Roth IRAs, with an additional $1,000 catch-up contribution for those over 50. The contribution cap for 401(k)s increased to $23,000, with an additional $7,500 for catch-up contributions.

Medicare Costs Rise

Medicare Part B premiums saw a 6% increase in 2024, rising to $174.70 per month and reversing the prior year’s decrease. Additionally, the deductible for Part B increased from $226 to $240. While some Medicare Advantage and Part D plans experienced slight adjustments, the changes highlight ongoing concerns about the affordability of healthcare. 

Retirement Policy Shifts

Retirement planning experienced several notable changes including:

  • Required Minimum Distributions (RMDs): As part of the SECURE 2.0 Act, the age to begin RMDs remained at 73 for 2024. 
  • HSA Contribution Limits: Health Savings Account (HSA) contribution limits reached record highs in 2024, with individuals able to contribute up to $4,150 and families up to $8,300, reflecting the growing importance of HSAs in healthcare and retirement planning. 

Inflation and Interest Rates

Inflation rates in 2024 remained more stable compared to the highs of 2022 and 2023. However, the Federal Reserve maintained its cautious stance by keeping interest rates elevated, aiming to curb any lingering inflationary pressures while ensuring economic growth. This policy reinforced the need for strategic financial planning with many borrowing costs, including mortgages, auto loans, business investments, and more. 

Real Estate Market Dynamics

Throughout 2024, the real estate market remained challenging due to the high interest rates. Homebuyers faced affordability issues as mortgage rates stayed above 7% for much of the year, leading to slower home sales and increased demand for rental properties. Sellers in competitive markets still benefitted, but many opted to wait for rates to drop before listing their homes.

It’s critical to stay informed and proactive when it comes to policy updates and your finances. At Blakely Financial, we are here to help you navigate these changes and plan for a healthy financial future. If you have questions or need guidance on how these 2024 financial updates may impact your goals, 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.
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.
5 Financial Frauds to Watch Out For

5 Financial Frauds to Watch Out For

Posted on by Emily Promise

Fraud Week falls in November, and we’re here to help you stay one step ahead. Did you know nearly 30% of Americans fell victim to fraud in the past year? With the rise of digital transactions and online communication, fraudsters are constantly coming up with new ways to target unsuspecting individuals. It is important to stay vigilant and keep your accounts secure. Protecting your finances is crucial to securing your future, and at Blakely Financial, your financial safety is our priority. From phishing scams to tax fraud, here are the top five financial frauds to watch out for and tips on how to avoid them. 

Phishing Scams

Phishing scams are one of the most common types of fraud, where scammers pretend to be a legitimate entity, such as your bank, a government agency, or even friends and family. They typically send out emails, texts, or social media messages designed to look real, asking for sensitive information like your Social Security number, credit card details, or login credentials. There are many types of phishing scams including:

  • Email Phishing: Emails appearing to be from a legitimate company but contain links to fake websites.
  • Smishing: Text messages often urging you to click a link or respond.
  • Vishing: Voice phishing, where scammers call you pretending to be from a legitimate institution.
  • Spear Phishing: Targeted phishing attacks aimed specifically at you, often using information about you to appear more convincing.

To avoid falling victim to phishing scams, always verify the sender’s email or phone number. If you receive an unexpected message from a company or other institution, contact them directly through their official website or phone number to confirm. 

Identity Theft

Identity theft occurs when fraudsters steal your personal information, such as your Social Security number, driver’s license, or bank account details, to open accounts or make purchases in your name. This can lead to significant financial losses and a damaged credit score, as well as the hassle of resolving other issues it creates. 

Avoid this financial fraud by regularly monitoring your credit report and bank statements. Check for any unfamiliar accounts or charges and report them immediately if found. You are entitled to a free credit report from each of the three major bureaus annually, and more information on how to get these reports can be found on the FTC website. Setting up fraud alerts or credit freezes can also add an extra layer of protection to your finances!

Investment Scams

Investment scams often promise extremely high returns with little to no risk. With this type of financial fraud, scammers may offer exclusive opportunities, insider information, or “guaranteed” profits to lure you into investing. Unfortunately these “too good to be true” investments often are, and can lead to significant financial losses.

To steer clear of investment scams, be sure to research any investment opportunity thoroughly before committing. Check with trusted financial sources, such as your financial advisor, or verify with the SEC’s Investment Adviser Public Disclosure website to ensure the company and representatives are registered and have a clean track record. Remember, if it sounds too good to be true, it probably is.

Credit Card Fraud

Credit card fraud occurs when unauthorized charges are made on your card or when a scammer opens a new credit card in your name. This can damage your credit score and lead to unexpected financial liability. With more people using credit cards for online purchases, credit card fraud has become increasingly common.

To limit your chances of credit card fraud, check your credit card statements monthly and report anything suspicious to your bank or card issuer immediately. Many banks and credit card companies offer fraud alerts or allow you to monitor transactions in real time through their apps, making it easier to catch fraudulent charges early. 

Tax Fraud

Tax fraud involves scammers posing as the IRS or other tax authorities to obtain sensitive information or payments from you. They may threaten legal action or claim you owe back taxes, urging you to pay immediately through unconventional methods like gift cards or wire transfers. The IRS has a clear policy that they never contact taxpayers by phone or demand immediate payment. 

Tax fraud is relatively simple to avoid as the IRS typically communicates by mail and will never call, text, or email to demand payment or ask for your personal information. If you receive a suspicious message claiming to be from the IRS, ignore it and report it to the IRS through their fraud reporting site. 

Fraud Awareness Week serves as a reminder to stay vigilant and informed about the evolving tactics used by scammers. Protecting yourself from financial fraud requires awareness, diligence, and quick action when something seems off. At Blakely Financial, we’re dedicated to helping you keep your finances secure. If you have any questions about securing your finances or want to learn more about fraud prevention, reach out to our team today. Together, we can work to build a safe and secure financial foundation.

 

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.
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.