financial planning Archives - Blakely Financial

Financial Planning for Medical Professionals

Posted on April 9, 2025April 15, 2025 by Emily Promise

A medical career offers financial rewards, but also comes with unique challenges, from managing student loan debt to navigating complex tax situations and preparing for retirement. Unlike other professionals, physicians and medical specialists spend years in training, delaying peak earning potential, which makes strategic financial planning essential at every stage of your career.

No matter where you are in your medical journey, having a sound financial plan can help you build wealth, protect your income, and develop long-term financial security. In this blog, we’re breaking down key priorities in financial planning for medical professionals in each phase of your career.

Residency & Fellowship

During residency and fellowship, finances can feel tight. Limited income and high student loan balances make it crucial to budget wisely, manage debt efficiently, and protect your financial future.

Budgeting & Cash Flow Management

Creating and sticking to a realistic budget is essential at this stage. Residency salaries often don’t leave much room for discretionary spending, so tracking expenses and prioritizing necessities, such as rent, utilities, and loan payments, is key. Even small contributions to an emergency fund can make a difference.

Student Loan Repayment

Physicians often graduate with significant student debt. Explore repayment options, such as income-driven repayment (IDR) plans, refinancing, or Public Service Loan Forgiveness (PSLF) if you qualify. Making interest-only or small payments during residency can help reduce total loan costs over time.

Insurance Coverage

Your most valuable asset is your ability to earn a high income in the future. Protect it by securing disability insurance, which can replace a portion of your salary if you become unable to work. Malpractice insurance is also essential, especially as you take on more responsibility in patient care.

Early Career: Years 1-5 Post-Residency

After residency, income increases significantly, which can create a temptation to increase spending – a phenomenon known as “lifestyle inflation.” While it’s important to enjoy your hard-earned success, this phase should focus on building financial stability for the long term.

Income Management

With a jump in earnings, focus on using your new financial flexibility wisely. Pay down high-interest debt, such as credit cards or private loans, while continuing to grow an emergency fund covering three to six months’ expenses.

Retirement Savings

This is the time to start maximizing retirement contributions. Many employers offer 401(k) or 403(b) plans, often with matching contributions. If you’re self-employed or have additional income, consider an IRA or a SEP IRA for tax-advantaged retirement savings. The earlier you start, the more you can benefit from compound interest.

Tax Planning

As your salary rises, so does your tax burden. Work with a financial advisor or CPA to maximize deductions, utilize tax-advantaged investment accounts, and consider tax-efficient strategies to reduce liabilities. For those in private practice, structuring your business correctly can lead to substantial tax savings.

Mid-Career: Years 5-20 Post-Residency

By mid-career, you are likely earning at your full potential, and wealth accumulation should be a primary focus. Your financial strategy should include investment growth, wealth protection, and long-term financial security.

Investment Diversification

Expanding your portfolio beyond traditional retirement accounts is essential for long-term growth. Consider a mix of stocks, bonds, real estate, and alternative investments to build wealth in a tax-efficient manner while managing risk. Talk to your financial advisor to decide which assets are best aligned with your risk tolerance and financial goals.

Education Planning

If you have children, it’s time to start saving for their education. Tax-advantaged 529 plans can help fund college costs while allowing for tax-free growth and withdrawals for qualified expenses.

Practice Growth

If you own or are considering starting a private practice, this phase involves important decisions about business loans, partnerships, and operational efficiencies. Work with your financial team to optimize cash flow, manage business taxes, and plan for future expansion or succession.

Late Career: 20+ Years Post-Residency

During the late career stage, financial planning should focus on preserving wealth, ensuring retirement readiness, and establishing a legacy.

Retirement Planning

Now is the time to assess retirement readiness by evaluating savings, projected retirement expenses, and desired lifestyle. Consider downsizing debt and adjusting investments to align with your expected retirement date. Many physicians work longer than other professionals, but having a strong financial plan gives you the flexibility to retire when and how you choose.

Estate Planning & Wealth Transfer

Planning for your legacy involves more than just writing a will. Consider trusts, tax-efficient wealth transfers, and charitable giving strategies to preserve assets for your heirs and causes that matter to you. Proper estate planning ensures your wealth is distributed according to your wishes while minimizing potential tax burdens.

Risk Management

As wealth grows, so does the risk of financial loss due to lawsuits, market fluctuations, or unforeseen circumstances. Review insurance policies, liability coverage, and investment risk exposure to ensure long-term financial security.

At Blakely Financial, we specialize in working with medical professionals, providing personalized financial strategies tailored to the unique challenges of your career. Whether you’re just starting or planning for retirement, we’re here to help you build a strong financial foundation. Contact us today to schedule a consultation and start planning your future!

Diversification does not assure a profit or protect against loss in declining markets and cannot guarantee that any objective or goal will be achieved.

The fees, expenses, and features of 529 plans can vary from state to state. There is no guarantee that an education-funding goal will be met. 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. You may lose state tax benefits if investing in a plan outside your state of residence.

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.

Celebrating 30 Years of Blakely Financial

Posted on March 11, 2025March 13, 2025 by Blakely Financial

From Robert Blakely, Founder of Blakely Financial:

“It is exciting to be celebrating 30 years in the financial planning and investment management field. I started in 1995 with no clients and just the desire to help make a difference in people’s lives through financial planning. As with any new business the first few years were tough. In 2000 I decided to partner with Commonwealth Financial Network which was an important decision for myself and our clients. With the network of Commonwealth advisors I was able to leverage years of experience of others and our growth truly began. I added my first employee in 2001 and another experienced advisor joined in 2002. My wife, Donna, who had been there with her support for years, joined us in 2003.

We can truly state that we have been blessed in ways that I never really imagined when I first started. We have been blessed with amazing friendships and meaningful relationships for which we will be forever grateful.

As excited and optimistic as I was when I started in 1995, today in 2025, I am as equally so for the future of our firm and our clients. We have great and caring team members. and with Emily Promise as President and Owner of Blakely Financial I truly believe the future for our clients and team is going to be even better.

Thank you to everyone for your friendship, trust, confidence and support for the past 30 years.”

A Legacy of Personalized Financial Planning

Since its founding, Blakely Financial has prioritized individualized financial strategies tailored to each client’s unique goals and needs. We believe in building lasting relationships and guiding clients through every stage of life, from wealth accumulation to retirement and succession planning.

This client-first approach has earned national recognition, including Blakely Financial’s recent honor as one of Forbes’ Best-in-State Wealth Management Teams. The firm’s success reflects the deep trust our clients place in us, and the firm remains committed to delivering financial strategies to support their present and future.

The Growth of Blakely Financial: Key Milestones

Over the past three decades, Blakely Financial has evolved, expanding our specialization and team to better serve our clients. Some of our key milestones include:

2009: Steve LaFrance joins Blakely Financial, bringing deep analytical knowledge to the team.
2017: Emily Promise joins Blakely Financial, bringing a fresh perspective and experience in financial planning.
2021: Larry Albert and Becky Linhart become partners, strengthening the leadership team and expanding the firm’s capabilities.
2023 & 2024: Emily is named to Forbes’ Top Next-Gen Wealth Advisors and Top Next-Gen Wealth Advisors Best-in-State, solidifying her reputation as a rising leader in the industry.
2025: Blakely Financial partners with Curran & Keegan, expanding its reach while maintaining its commitment to personalized service and multigenerational financial planning.

Blakely Financial as a Trusted Partner & Problem Solver

At Blakely Financial, we know financial planning is about more than investments. We work to build trust and guide individuals and families through life’s milestones to secure their financial futures. Our clients turn to us for:

Comprehensive wealth management strategies tailored to their evolving needs.
Succession planning and wealth transfer, ensuring their legacy is protected.
Multigenerational financial stability, helping families build a foundation for the future.

The firm’s commitment to acting as a fiduciary ensures that every recommendation is made with our client’s best interests in mind.

Looking to the Future: Leadership & Growth

Emily Promise, now leading Blakely Financial, is committed to continuing the firm’s legacy while embracing new opportunities for growth and innovation. With our team of experienced advisors, the firm is well-positioned to support clients through comprehensive financial planning, estate strategies, and long-term investment solutions.

Blakely Financial remains dedicated to our community-focused approach, ensuring clients feel supported, empowered, and confident in their financial futures.

Thank You to Our Clients & Community

Blakely Financial’s success over the past 30 years is a testament to the loyalty and trust of our clients. We are honored to be a part of their financial journeys and are committed to helping families, individuals, and business owners achieve their financial goals for generations to come.

As we celebrate this milestone, we look forward to the next 30 years of growth, innovation, and continued service as a trusted financial partner to our clients and community. To learn more about our services and how we can support your financial goals, contact the Blakely Financial team today.

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other financial tips we can provide towards your financial well-being.

Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.

2025 Forbes Best In State Wealth Management Teams, created by SHOOK Research. Presented in Jan 2025 based on data from March 2023 to March 2024. 11,674 Management Teams were considered, approximately 5,300 teams were recognized. Not indicative of advisor’s future performance. Your experience may vary. For more information, visit https://tinyurl.com/3s5r8z87

Green Flags vs. Red Flags in Money Management

Posted on March 10, 2025March 11, 2025 by Emily Promise

When it comes to managing your money, small habits can make a big difference. The right financial decisions can set you up for long-term success, while poor habits can lead to stress and instability. Understanding the green flags as smart money moves and recognizing the red flags as warning signs of financial trouble can help you build wealth and avoid common pitfalls. Let’s break down the money management habits that can help or hurt your financial future.

Financial Green Flags: Smart Money Management Moves

These habits signal financial stability, confidence, and long-term success:

1. Paying Yourself First

A major sign of financial wellness is prioritizing savings before spending. Instead of waiting to see what’s left at the end of the month, set aside money for savings and investments first. Whether for an emergency fund, a home purchase, or retirement, prioritizing saving ensures you’re consistently building wealth.

2. Automating Your Finances

One of the simplest ways to stay on top of your finances is automation. Setting up automatic bill payments and savings contributions helps you stay consistent, avoid late fees, and grow your wealth without having to think about it. Automation takes the guesswork out of financial management, allowing you to focus on your long-term goals.

3. Setting Financial Goals

Having a clear plan for your finances is a major green flag in money management. If you’re working toward retirement, a large purchase, or a long-term investment strategy, setting and tracking financial goals keeps you focused and on track. A plan gives your money purpose and helps you measure progress along the way.

Financial Red Flags: Habits to Watch Out For

These money management habits can signal financial instability and lead to long-term challenges:

1. Living Paycheck to Paycheck

If all of your income goes directly to expenses without any savings cushion, it can be a sign of financial strain. Without an emergency fund or proper savings, you are left vulnerable to unexpected expenses, like car repairs or medical bills, which can create serious stress. Even small, consistent savings deposits can help break the cycle and build financial security over time.

2. Ignoring High-Interest Debt

Credit card debt and high-interest loans can quickly spiral out of control if left unchecked. A red flag in money management is carrying large balances without having a repayment plan. Prioritizing debt payoff, starting with the highest interest rates first, can save thousands in interest and free up money for other financial goals.

3. Skipping Retirement Savings

Delaying retirement contributions means missing out on valuable compound growth. Many people put off saving for retirement, thinking they’ll catch up later, but the earlier you start, the more you benefit. Even small contributions now can grow significantly over time, ensuring financial security in the future.

Good financial habits take time, but small changes can have a large impact. If you recognize red flags in your own money management, it’s never too late to adjust course. Building wealth and financial stability starts with small, intentional decisions.

If you are looking for guidance in creating a strong financial strategy, Blakely Financial is here to help. Contact us today to connect with a trusted advisor and get on the right track for a confident 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.

SECURE 2.0 Act: Key Changes to Your Retirement Planning

Posted on February 7, 2025March 6, 2025 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.

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

Posted on February 5, 2025 by Robert Blakely

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

Gather and Organize Your Documents Before Tax Day

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

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

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

Maximize Last-Minute Tax Strategies

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

Understand the Impact of Recent Tax Law Changes

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

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

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

Plan for Estimated Taxes and Potential Liabilities

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

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

Work with a Tax Professional

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

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

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other financial tips we can provide towards your financial well-being.

Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.

The Pinwheel of Financial Wellness

Posted on January 14, 2025 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

Posted on January 14, 2025 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

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.

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.

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.

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.

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.

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.

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 News

Posted on December 12, 2024 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

Posted on December 12, 2024 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.

Tax Benefits of Charitable Giving

Posted on November 6, 2024November 8, 2024 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.