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Tag: Financial Advising

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.
Your Financial Planning Roadmap

Your Financial Planning Roadmap

Posted on by Emily Promise

World Financial Planning Day falls on October 2nd, making it a great time to evaluate your financial health. No matter where you are on your financial journey, having a solid financial planning roadmap is key to reaching your goals. From your 20s to your 50s and beyond, each phase of life comes with new financial stops and important decisions to be made. Explore the various phases of your financial planning roadmap and the actions you can take within each stage to secure your financial future. 

Starting Out (20s – 30s)

The first phase of your financial planning roadmap covers your 20s and 30s, focusing on building a foundation for a solid financial future with budgeting, saving, and planning for future financial goals like buying a home or starting a family. There are a few key steps you should take during this phase, including:

  • Build an emergency fund with 3-6 months of living expenses. Even minor unexpected expenses can significantly impact your finances if you’re unprepared!
  • Start contributing to retirement accounts like a 401(k) or IRA to benefit from compound interest. Take advantage of your employer’s 401(k) match if offered. There are quite a few options available when it comes to saving for retirement, so sit down with your financial advisor to review the specifics to make the most of your money.
  • Pay down high-interest debt, such as credit cards or student loans to improve your credit and minimize your total amount paid over time.
  • Set financial goals, such as saving for a home or future family needs. Having goals allows you to track your progress and adjust your financial actions as needed. 

Building Wealth (30s – 40s)

The next stage of your financial roadmap takes place in your 30s and 40s and is all about growth and building on the foundation you have already set. Whether you are focused on career advancement, saving for a home, or planning for your family’s financial future, this phase is a critical time for making smart financial moves and fine-tuning your financial goals. During this stage, you should:

  • Maximize retirement contributions and take full advantage of employer matches. As you advance in your career and your annual earnings increase, you may be able to make additional contributions to your retirement fund, further securing your and your family’s financial future. 
  • Diversify your investment portfolio to balance growth and risk. Consider stocks within different industries, bonds, real estate, and other investment opportunities to improve your portfolio. You never want all of your eggs in one basket!
  • Set up or review life insurance to protect your family’s financial future. It is important to have a plan in case anything happens to you and your loved ones unexpectedly. 

Preparing for Retirement (50s – 60s)

In your 50s and 60s, it’s time to focus on securing your financial future and preparing for retirement. Whether you are paying off your mortgage, planning for healthcare, or making the final push toward your retirement savings goals, this stage is all about making sure you’re set for the years ahead. This phase of your financial roadmap is the time to take charge and fine-tune your retirement strategy to make sure everything is in place. We recommend:

  • Increasing retirement contributions and using catch-up contributions if applicable. 
  • Paying off large debts, like mortgages, to reduce expenses in retirement. This leaves more money for the things you want to do! 
  • Reviewing and updating your estate plan, including your beneficiaries. 
  • Planning for Social Security and other income sources in retirement. 

Following this checklist will help you confidently prepare for your next chapter!

Living in Retirement (60s+)

The last stage featured on your financial planning roadmap is living in retirement through your 60s and beyond. This phase is about enjoying the life you’ve worked so hard to build while ensuring your financial future remains secure. To best enjoy the rewards of your hard work and maintain your lifestyle with minimal financial stress:

  • Develop a withdrawal strategy to ensure your retirement savings last. You don’t want to run your savings dry within the first few years!
  • Manage your investments to align with your income needs and risk tolerance. 
  • Monitor your healthcare and long-term care costs, ensuring you have adequate coverage for the care you need. 
  • Review and update your estate plans periodically to protect your financial legacy. 

 

Stay connected with Blakely Financial as we continue to provide the guidance you need at every stage of life for a prosperous 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.
Caring for Aging Parents

Caring for Aging Parents

Posted on by Emily Promise

Today, individuals are living longer than ever before, and therefore it is important to be prepared for these later years. Caring for aging parents is one aspect of aging that can be particularly difficult to balance within your planning. In this blog, we are sharing tips for caring for aging parents, helping you prepare to support yourself and your loved ones throughout every stage of life. 

Have the Difficult Conversation

The first step, and often the most challenging one, is to have a conversation with your parent to find out what they need or expect from you. Your parent may resist this discussion at first as they have lived a long time without full assistance from you, and accepting your new role in their life may be tricky to handle. Despite these feelings, it is important to have this conversation early on before a crisis occurs. Understanding and respecting your parent’s wishes can also significantly smooth the process.

Gather Information and Documents

It is essential to create a list of emergency contacts, including your parent’s medical providers, religious leaders, neighbors, friends, and financial, tax, and legal advisors. You should also gather copies of various documents including any legal documents, funeral plans, medical records, and medication information. Additionally, keep a current list of investment, bank, and insurance accounts, and locations of safe deposit boxes, real estate deeds, and automobile titles. It may be helpful to keep all of this information in one place, like on a USB drive, so it is readily available when you need it.

Evaluate Your Parent’s Situation

Evaluating your parent’s mental and physical capabilities and locating community services and programs to support their independence is critical, but can also be difficult for you to do on your own. In this case, a geriatric care manager can be vital, especially if you live some distance from your parent. This person can perform an in-home assessment, determine your parent’s housing needs, and recommend a plan of action based on their evaluation. Ask your parent’s doctor for a referral to a qualified geriatric care manager. The following are some questions you and/or a geriatric care manager will answer during this evaluation:

  • Can your parent remain at home? If your parent can no longer care for their home, it does not necessarily mean they have to move. In fact, staying in one’s home may offer better support and social networks than moving in with one’s children! If your parent can safely stay alone, consider dividing household chores up among family members or hiring someone to provide housekeeping, cooking, and personal care. As parents grow older, an assisted living facility or retirement community may be a better solution than living at home as these residences provide additional benefits such as transportation, access to medical personnel, and a richer social life.
  • Can your parent move in with family? Moving your parents into your or another family member’s home is also a solution. This is not the best choice for every family, and that is okay! Ask yourself:
    • Will living together put stress on your relationship with your parent or with your family?
    • Can you afford to remodel or renovate your home to provide a comfortable and private environment for your parent?
    • Do you have the flexibility in your schedule to provide the necessary transportation?
    • Will other family members step in to help, both physically and financially?
  • Can your parent continue to drive? Individuals over the age of 75, taking medications, or both, may have an impaired ability to drive a car. It may be difficult to know when older drivers have become a danger to themselves or others. Consider giving your parent’s friends and neighbors your contact information and ask them to make you aware of any changes in his or her driving skills, or suggest that they accompany you for errands rather than driving alone. Many communities offer driver’s education courses that teach best practices for seniors, including limiting drive time to daylight hours and good weather conditions and avoiding high-traffic situations. Again, this may be a very sensitive topic of conversation for your parent. For help approaching the conversation, visit the NIH National Institute on Aging website on older drivers.

Financial and Legal Issues Associated with Caring for Aging Parents

With age comes a loss of mental alertness, causing a higher likelihood of due dates for bills passing, insurance policies lapsing, and making poor financial decisions. Your aging parent will likely need your assistance with their financial, legal, and medical matters including:

  • Banking: Most banks will offer automatic bill payment services from checking or savings accounts, which is a convenient and ideal option if your parent is internet savvy. There is also the option of your parent giving you responsibility for their finances by having bills and financial statements sent to your address instead of theirs. You may also consider a bill-pay service, which receives a copy of invoices and then requests your parent’s bank or financial institution to send checks directly to payees. 
  • Investments: If the day-to-day management of your parent’s finances is too much for you to handle yourself, reach out to your financial advisor. They will be able to recommend products that provide income on a regular basis, such as managed retirement income portfolios or bonds. They may also propose cash-management solutions allowing your parent’s monthly social security, retirement plan, and other payments to be automatically deposited into an account. You are typically able to access these funds via a debit card, unlimited check-writing capabilities, and online bill-pay services – everything that a bank checking account offers. 
  • Insurance: Review your parent’s existing life and long-term care insurance coverage to make sure it still aligns with their needs and wishes. Make changes if necessary. 
  • Legal Concerns: An elder law attorney can help you prepare documents to manage your parent’s health care and financial affairs, and many states even provide free legal services to the elderly. Your parent may wish to seek an attorney’s help in a variety of areas, including appointing a health care representative, understanding the process for qualifying for government programs such as Medicaid or veterans’ benefits or reviewing and updating estate planning documents, including their will, durable power of attorney, and any revocable trusts. 

Taking Care of Yourself

Caring for aging parents can feel overwhelming at times, but you are not alone. Many local and national groups are available to support you in providing the care and services your parent and family need. For more information and to get started, visit the U.S. Administration on Aging’s Eldercare Locator. 

Talk with your HR department to find out if you are eligible for leave under the FMLA, and ask about the availability of an employee assistance program (EAP). EAPs are intended to help employees deal with personal problems, including concerns about aging parents, that might adversely impact their work performance, health, and well-being. 

Lastly, seek the help of your financial advisor. Not only can they help review whether your parent’s resources are sufficient to pay for care, but they can also help you determine how to balance your own goals with your parent’s needs. Contact the Blakely Financial team today to begin your planning. 

 

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.
Retirement Planning for Dads at Every Stage

Retirement Planning for Dads at Every Stage

Posted on by Emily Promise

Retirement planning is a journey spanning the entirety of your career, evolving as you move through different phases of your life. For dads, this process holds unique significance – not only are you securing your own future, but you’re also safeguarding your family’s long-term financial well-being. From the early days of your career to the time you decide to retire, every stage of your journey offers opportunities to optimize your retirement planning strategy. As Father’s Day approaches, let’s explore retirement planning for dads and what this may look like at each career stage, ensuring a smooth transition to a financially secure retirement for you and your family.

Early Career (20s to Early 30s)

In the early stages of your career, when you are in your 20s to early 30s, time is your greatest ally. To build a strong foundation in your retirement planning, you will want to begin contributing to your retirement accounts as soon as possible. Research any retirement accounts offered by your employer and be sure to enroll in one, such as an employer’s 401(k) plan. Once enrolled, strive to contribute enough to qualify for the full employer match, if it is available, as it essentially offers free money towards your retirement savings. Simultaneously, it’s essential to establish an emergency fund, which serves as a financial buffer during unexpected situations and emergencies. Aim to have three to six months’ worth of expenses saved in this account to avoid dipping into your retirement savings and preserve future compounding gains in case of emergency.  

Mid-Career (Mid-30s to 40s)

As you progress into your mid-career in your mid-30s to 40s, your earning power typically increases, making it the perfect time to ramp up your retirement contributions! Strive to max out your 401(k) contributions and consider opening an IRA for additional tax-advantaged savings. Additionally, it is critical to start diversifying your investment portfolio beyond standard retirement accounts. Other assets may include real estate, stocks, and more. Talk to your financial advisor to see which options are best for you and your risk tolerance. Moreover, while it is tempting to focus solely on saving for your children’s education during these years, it is important to maintain a balance between funding their college accounts and boosting your retirement savings. 

Late Career (50s to Early 60s)

When you reach your 50s to early 60s and retirement begins to inch closer, take full advantage of catch-up contributions in your 401(k) and IRA, which allow you to contribute additional funds if you are over 50. It is also important to reevaluate your retirement goals once you reach this stage. Ask yourself, “Am I on track to live comfortably?” and adjust your savings strategies accordingly. Additionally, focus on reducing or eliminating any outstanding debt including your mortgage, credit cards, and personal loans before retirement. Entering your retirement debt-free can significantly reduce your monthly expenses as well as financial stress. 

Nearing Retirement (Late 60s and beyond)

In the years closest to retirement, develop a strategic plan for withdrawing from your retirement savings accounts to maximize your gains and minimize taxes. Speak with your financial advisor to learn more about tax-saving strategies and the best approach for you and your unique situation. In addition, consider any necessary lifestyle changes such as downsizing your home for cost efficiency, and begin to plan for healthcare needs. Understand your Medicare options and assess the need for supplemental policies or long-term care insurance, ensuring you are covered for any health issues that may arise during retirement. 

 

As you navigate the joys of fatherhood, remember it’s also crucial to plan for your future. At Blakely Financial, we’re dedicated to helping dads at every stage of fatherhood work toward a comfortable retirement. From your first Father’s Day to enjoying your golden years, let’s make sure your financial plans are as strong as the legacy you’re building. 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.
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.
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.
Managing Finances in a Blended Family

Managing Finances in a Blended Family

Posted on by Emily Promise

Embarking on the journey of blended families brings both joy and unique challenges. Navigating the intricacies of a blended family requires careful consideration and planning, especially when it comes to managing finances. No matter your age or stage in life, open communication, and proactive financial strategies are essential for building a strong foundation for your new family’s future finances. In this blog, we’ll explore key considerations for managing finances in a blended family to set the stage for a prosperous and harmonious financial future. 

Blended Family Basics

When entering into a blended family, there are some key items to consider to help navigate potential challenges. Above all, clear communication is paramount.

Clear communication is not only about how you’ll blend your children if you have kids in your marriage but also about how you will manage your finances in this new blended situation. It is important to ensure your wishes are clear to both families within a blended family so they are played out properly in the long run. Having clear communication across a variety of different areas within your life will make the financial planning process as seamless as possible. 

Blended Family Estate Planning

Managing estate planning in blended families can present unique challenges. When entering into a blended family, it is critical to sit down with your new spouse to discuss several important topics, including estate planning. Estate planning is important and can be challenging for everyone, but there can be some additional difficulties and hurdles when it comes to entering a blended family. 

You need to have an honest conversation regarding what would happen if something were to happen to you. This does not only include death. If one of you were to get sick, who is going to make medical decisions for you? Who is going to be able to cash your checks, manage your investment accounts with your advisor, and have that financial power of attorney? In the instance that you were to pass away, it is important to consider where you want your assets divided. Will they go to your new spouse, prior children, or somewhere else? 

While these conversations may be difficult, they are necessary to have with your new spouse when entering a blended family. If you need help getting started with these, reach out to your financial advisor. They will have resources available to help guide you through the estate planning process.  

Merge or Keep Separate?

Again, upfront conversations with your new spouse may be uncomfortable but are necessary so you are on the same page heading for a successful future. Your finances should be part of these conversations, particularly whether you will keep your finances separate or merge them. We’ve seen success both ways, the decision really depends on how you both want to work. 

If you do opt for separate accounts, you will want to be sure to have beneficiary designations on those accounts, have payable on death on your bank accounts, and any other necessary precautions in place so that if something were to happen to one of you, the other would still have access to important accounts. One common approach is to have one house account where you both contribute money to cover joint bills, but then keep your separate accounts for your own mad money. Regardless of what this decision will look like for you, clear communication is key to finding a balance that works for both partners. 

Finding Your Unique Advisor

When entering into a blended family situation, no matter what your age is, you must find a financial advisor who caters to your unique needs. If you’re further along in your career, you may already have established financial habits long before you entered into this new marriage, making it even more important to find an advisor who can work with you to help you reach your unique goals in the long term. 

Blakely Financial’s own Emily Promise is a Certified Divorce Financial Analyst, CDFA®, Institute for Divorce Financial Analysts. With her experience, she can help guide you and your blended family toward a bright financial future together. 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.

2024 Financial Planning Tips & Updates

Posted on by Emily Promise

At the start of a new year, it is critical to reevaluate your financial status and strategies as well as consider the changes in rules and regulations that may impact your financial well-being. In this blog, we’re sharing information and updates to help you navigate your 2024 financial planning. 

Changes in Contribution Limits

The new year is the perfect time to review your employer benefits to make sure you are taking full advantage of everything offered to save for retirement. It is also crucial to review and understand any changes to contribution limits for the year. The following are changes for 2024 and should be factored into your 2024 financial planning:

  • 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, increased to $23,000, up from $22,500.
  • The limit on annual contributions to an IRA increased to $7,000, up from $6,500. 
  • The IRA catch‑up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment but remains $1,000 for 2024.
  • 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 $7,500 for 2024.
  • There were also increases for SIMPLE and SEP contributions.

Social Security

In 2024, Social Security recipients will see their monthly payments rise by 3.2 percent. The maximum amount of earnings subject to the Social Security tax will increase to $168,600. The earnings limit for workers younger than full retirement age will increase to $22,320 and the earnings limit for people reaching their full retirement age will increase to $59,520. 

Financial Planning as a Family Affair

Our concerns often extend beyond our immediate financial well-being to that of our family. Instilling financial responsibility and planning in our children to ensure they have a solid financial foundation is invaluable. Are your adult children entering the workforce and beginning to build their careers? If so, are they planning for their financial future? Encouraging your children to focus on financial planning is critical in promoting their financial security. A conversation with a financial advisor can help equip them with the knowledge necessary to make informed financial decisions to align with their objectives. 

Additionally, it is essential to review your estate documents with your most current financial situation and goals in mind. Many things can change over the course of a year. Sit down with your financial advisor and review documents including wills, trusts, and beneficiaries. Do they still align with your current needs, wants, and wishes? If not, update your documents to prevent future complications and ensure a secure financial future and financial legacy for you and your family. 

The Blakely Financial team is here to guide you through the financial planning process. Contact us today to get started. Together we can begin paving your path to a financially prosperous year. 

 

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.