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Tax Day is Almost Here What You Should Be Doing Now

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

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

The Pinwheel of Financial Wellness

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.
5 Financial Frauds to Watch Out For

5 Financial Frauds to Watch Out For

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

Phishing Scams

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

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

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

Identity Theft

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

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

Investment Scams

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

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

Credit Card Fraud

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

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

Tax Fraud

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

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

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

 

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
Your Financial Planning Roadmap

Your Financial Planning Roadmap

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.
Financial Freedom for Women

Financial Freedom for Women

Achieving financial freedom is a goal for many, but for women, it often comes with unique challenges. From wage gaps and career breaks to planning for longer life expectancies, women face distinct hurdles in their financial journeys. However, with the right knowledge, these obstacles can be overcome. In this blog, learn how to build wealth, take control of your financial future, and thrive in the financial world.

Understanding the Unique Challenges

The first step in gaining financial freedom as a woman is to understand the unique challenges you may face in the financial world. Here are a few you may come across:

  • Wage Gaps: Women often face wage disparities across various sectors and industries, which can significantly impact their long-term financial health.
  • Career Breaks Many women take career breaks for caregiving, which can impact their earning potential and career growth.
  • Longer Life Expectancies: Women typically live longer than men, which means it is crucial to plan for extra years of retirement.

Combating Challenges

While these challenges are very common among women, they can also be overcome. To combat wage gaps, women should be educated about industry salary standards and negotiation skills to ensure they are fairly compensated for their work. Additionally, supporting women’s access to leadership training and mentorship can help them reach higher-paying positions and close the wage gap.

Women can mitigate the financial impact of career breaks by engaging in proactive financial planning, such as saving specifically for this purpose. When speaking with your financial advisor, let them know this is part of your plan and they will help you factor it into your financial game plan.

When taking longer life expectancies into consideration, women should focus on extending their retirement planning to ensure they save enough to cover these additional years. Investing in robust healthcare plans and health savings accounts can address the rising medical costs associated with aging.

Essential Financial Strategies

When embarking on your journey toward financial independence, there are a few essential financial strategies to keep in mind:

  • Investing Early: Starting your investment journey early maximizes the benefit of compounding interest, which is crucial for building long-term wealth. Even small investments can accumulate significantly over time, helping women secure their financial future. 
  • Diversified Portfolio: A mix of assets can manage risks and promote steady growth, safeguarding wealth against unpredictable market conditions. A diverse portfolio may include stocks across different industries and risk profiles, as well as other assets such as bonds and real estate.
  • Retirement Planning: Retirement planning is particularly important for women due to longer life expectancies and unique career trajectories. Effective strategies include maximizing 401(k) contributions and selecting suitable retirement accounts to ensure financial stability in later years. Be sure to research your employer’s retirement plan options and work with your financial advisor to select the one that best fits your unique situation and needs. 

Learn and Grow

The journey to financial freedom is ongoing, requiring continuous learning, growth, and support. The following are key to a successful financial future:

  • Education & Awareness: Understanding the financial landscape is crucial for achieving financial independence. By educating yourself through workshops, webinars, and resources, you can become more aware and better prepared for any situation coming your way. Additionally, learning negotiation skills can help you secure better salaries and benefits, which is essential for building long-term wealth. 
  • Strategic Planning: Strategic financial planning is essential for reaching financial independence. For example, having a plan that accounts for career interruptions by saving for sabbaticals or considering career break insurance can help create a solid path toward financial stability and independence.
  • Support and Community: Building a strong support system is crucial for women’s financial success. Engaging in mentorship programs for guidance and joining networks with other women facing similar financial challenges can provide valuable support. 

 

With determination and the proper resources, women can confidently navigate their financial paths and achieve lasting financial security. If you want to learn how to gain financial independence, contact us today. We’re here to guide you every step of the way.

 

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
Quiz: How Financially Literate Are You?

Quiz: How Financially Literate Are You?

As we recognize Financial Literacy Month, we must assess our knowledge and understanding of key financial concepts that impact our daily lives such as budgeting, investing, borrowing, and more. Whether you’re a seasoned investor or just beginning your financial journey, this quiz offers an opportunity to reflect on your financial knowledge and take steps toward improving your financial literacy. Are you ready to see where you stand? Dive into our Financial Literacy Month quiz and put your knowledge to the test!

What is the effect of compound interest on an investment over time?

  1. Decreases the total amount of interest earned
  2. Increases the total amount of interest earned by adding interest to the principal and accumulated interest
  3. Has no effect on the total amount of interest earned
  4. Only applies to savings accounts

Correct Answer: 2

Compound interest allows you to earn interest not only on the initial principal amount invested but also on the accumulated interest from previous periods. Over time, this compounding effect results in the exponential growth of your investment, significantly increasing the total amount of interest earned.

Why is diversification important in an investment portfolio?

  1. It guarantees a fixed return on investment
  2. It reduces risk by spreading investments across various asset classes
  3. It focuses investment in one sector to maximize returns
  4. It ensures all investments will profit

Correct Answer: 2

The process of diversification involves spreading your investments across different asset classes to minimize risk. These may include stocks, bonds, and real estate. By diversifying your investment portfolio, you can mitigate the impact of adverse events affecting any single asset or sector. This will help stabilize returns and potentially improve long-term performance. If you’re struggling to diversify your investments, meet with your financial advisor to discuss your options.

Which of the following accounts offers tax-deferred growth?

  1. Checking account
  2. Certificate of Deposit (CD)
  3. 401(k) or Traditional IRA
  4. Brokerage Account

Correct Answer: 3

Tax-deferred growth refers to the ability of investments to grow without being taxed until withdrawal. Both 401(k) plans and Traditional IRAs offer tax-deferred growth, allowing your investments to compound over time without being subject to immediate taxation on earnings. Everyone’s financial situation is unique, so be sure to talk to your financial advisor to be sure you are taking advantage of the best plans and accounts for you.

What is a “bull market”?

  1. A market characterized by declining stock prices
  2. A market in which stock prices are remaining stable
  3. A market characterized by rising stock prices
  4. A market that exclusively trades in agricultural stocks

Correct Answer: 3

A bull market is a period characterized by rising stock prices and investor optimism. During a bull market, investor confidence is high, leading to increased buying activity and upward momentum in stock prices across the market.

What does a fixed-rate mortgage offer that a variable-rate mortgage does not?

  1. A mortgage rate that changes with the market
  2. Lower interest rates over the life of the loan
  3. The same interest rate and monthly payment throughout the life of the loan
  4. Higher borrowing limits

Correct Answer: 3

A fixed-rate mortgage offers borrowers the security of a consistent, or fixed, interest rate and monthly payment throughout the life of the loan. In contrast, a variable-rate mortgage will have interest rates that fluctuate with market conditions, resulting in varying monthly payments and potentially higher levels of financial uncertainty for borrowers. Talk to your financial advisor to sort out which option is best for you and your financial health. 

Whether you aced every question and passed with flying colors or found new areas to explore, taking the time to assess your financial literacy is a valuable step toward financial empowerment. Remember, financial literacy is an ongoing journey, and there’s always room to learn and grow. 

If you found any questions throughout the quiz challenging or would like to delve deeper into any topics, contact the Blakely Financial team today. We are ready to help you navigate your financial journey with confidence! For additional resources and insights designed to boost your financial understanding, check out the Blakely Financial website

 

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

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.
Advanced Tax Planning Tips for 2024

Advanced Tax Planning Tips for 2024

As the tax season draws near, it presents a perfect opportunity for both business owners and employees to refine their financial strategies and ensure a brighter, more efficient fiscal future. Whether it’s exploring advanced tax planning, making the most of employee benefits, or simply understanding the wealth of options at your disposal, being informed is the first step toward financial empowerment. In this article, we dive into some key tax planning insights, aiming to navigate this tax season with ease and set the stage for a year filled with prosperity and informed financial decisions.

For Business Owners:

Surround yourself with a team of professionals, including a tax professional and financial advisor, to explore tax deductions, credits, and strategies to fit your business into your overall financial picture.

Consider retirement savings options like SEP IRAs for self-employed individuals or SIMPLE or 401(k) plans if you have employees. Consult with your professional team to choose the best option for your situation.

Restricted Stock Units (RSUs) for Employees:

Restricted Stock Units (RSUs) are a form of stock compensation given by employers, which vest over time. Understanding your RSUs’ vesting schedule is critical, as it dictates when you can sell or hold your shares. Deciding whether to keep vested shares or sell them involves assessing the company’s potential growth against immediate financial gains and considering the tax implications of each choice.

Due to the complexities of RSUs, including their potential impact on your taxes and investment portfolio, consulting with a financial professional is highly recommended. An advisor can guide you through the intricacies of your RSUs, helping you to integrate them into your overall financial strategy effectively. This way, you can make informed decisions that balance immediate benefits with your long-term financial objectives, optimizing the value of your RSUs in alignment with your personal goals.

Employee Stock Purchase Plan (ESPP):

An Employee Stock Purchase Plan (ESPP) allows you to buy company stock, typically at a discounted rate, which can be a great financial opportunity. Key considerations include the discount rate, its fit within your financial plan, and its effect on your investment diversity. Before participating, assess how the plan impacts your financial goals and risk tolerance. Consulting a financial professional is beneficial for navigating ESPPs’ tax implications and integrating this investment into your overall strategy efficiently. Deciding on ESPP participation should align with your broader financial health, and professional advice can ensure it complements your portfolio effectively.

Rollovers: Combining Retirement Accounts:

Consider consolidating multiple 401(k) or 403(b) accounts from past jobs into one account for easier management and to simplify future required minimum distributions. Though not mandatory, consolidation can streamline your financial management.

If you are considering rolling over money from an employer-sponsored plan, you often have the following options: leave the money in the current employer-sponsored plan, move it into a new employer-sponsored plan, roll it over to an IRA, or cash out the account value. Leaving money in a plan may provide special benefits including access to lower-cost investment options; educational services; potential for penalty-free withdrawals; protection from creditors and legal judgments; and the ability to postpone required minimum distributions. If your plan account holds appreciated employer stock, there may be negative tax implications of transferring the stock to an IRA. Whether to roll over your plan account should be discussed with your financial advisor and your tax professional.

Pension Plans:

If you’re entitled to a pension plan, explore all payout options carefully to choose the best option for your financial situation. Discuss with your financial advisor to fully understand how your choice integrates with your broader financial goals.

Engaging with knowledgeable professionals and staying informed about your financial options allows for informed, strategic decisions that support your long-term financial success. Proactive planning is key. For personalized advice and to integrate these tax planning tips into your financial strategy, consider reaching out to financial professionals like the Blakely Financial team.

If you are considering rolling over money from an employer-sponsored plan, you often have the following options: leave the money in the current employer-sponsored plan, move it into a new employer-sponsored plan, roll it over to an IRA, or cash out the account value. Leaving money in a plan may provide special benefits including access to lower-cost investment options; educational services; potential for penalty-free withdrawals; protection from creditors and legal judgments; and the ability to postpone required minimum distributions. If your plan account holds appreciated employer stock, there may be negative tax implications of transferring the stock to an IRA. Whether to roll over your plan account should be discussed with your financial advisor and your tax professional.

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.

4 Ways to Prepare for a Prosperous Financial Future

The first few months of the year are the perfect opportunity for introspection, strategic planning, and establishing goals. This period is especially crucial for managing your personal finances. By evaluating your present financial situation, setting goals, and laying the foundation for the future, you can significantly influence your financial objectives. In this blog, we will delve into four practical measures you can implement to ensure a secure financial future.

1. Develop Goals and Priorities

Each person and each financial situation is unique. As a result, there is no one-size-fits-all approach to creating your financial plan. Each individual has their own goals and unique objectives for the future. As you identify your needs, wants, and wishes, it’s also important to think about your long and short-term financial goals. For example, are you interested in retiring in the next 10-15 years? Is buying a second home in the next 2 years feasible? Taking the time to review your goals from the past, as well as outlining goals for the future, will help you lay the foundation for success. 

Talk to your financial advisor to develop a financial game plan for your particular objectives. Be sure to consistently re-visit and re-evaluate your plan and priorities to ensure you’re on track to reach your goals. 

2. Identify All Assets and Liabilities

Next, conduct a thorough review of your assets and liabilities. Start by compiling a comprehensive list of your liquid assets and tangible properties. This detailed inventory provides a clear view of your financial standing and is an opportune time to re-evaluate your beneficiary designations. Next, identify any liabilities you may have, such as mortgages, auto loans, student loans, and so forth. With a clear picture of your assets and liabilities, it’s time to consider your income. Are there any bonuses or salary increases expected this year? If so, how will they impact your financial planning? Utilize all this information to refine and update your yearly financial plan accordingly.

3. Identify Any Barriers to Achieving Your Goals

With your liabilities and assets clearly outlined, it’s now important to recognize any obstacles that might prevent you from reaching your financial goals. These barriers may include existing debts, like student loans, that limit your capacity to save. Acknowledging your personal financial constraints is an essential piece to planning. When you acknowledge potential barriers, you and your financial advisor are able to create a more realistic set of financial goals based on your individual situation.  

4. Think About What Keeps You Up at Night

As you’re planning for the year, think about what’s keeping you up at night. For many, one question often looms large: how will I plan for long-term care without burdening my children? Long-term care insurance emerges as a practical solution, offering a versatile approach to funding care needs, whether for a nursing home or at-home care. This type of insurance not only provides peace of mind but also features options like receiving a cash benefit or allocating funds to your estate. If benefits are directed to your estate upon passing, they are typically exempt from income tax and can bypass the probate process. Consult with a financial advisor about long-term care insurance, as it can be a vital part of your estate planning strategy to ensure you’re prepared for any future care requirements.

Remember, preparing for a prosperous financial future is not only about financial planning but about setting the stage for a secure and fulfilling life ahead. The steps you take today can shape your financial tomorrow. Are you ready to plan the remainder of your year? Contact the Blakely Financial team today. 

 

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.

Tis the Season: End-of-Year Tax-Saving Strategies

As the year draws to a close, so does the window for strategic tax planning and benefits. The decisions you make regarding your finances before December 31st can significantly impact your tax liability and overall financial well-being for the year ahead. Here we’ll explore end-of-year tax-saving strategies you can take advantage of before the year-end deadline to improve your financial picture in the upcoming year. 

Capitalize on Retirement Contributions

We’re nearing the end of the year, but there’s still time to boost and capitalize on your retirement savings. Be sure you are contributing to retirement accounts, like a 401(k) or an IRA, as they offer immediate tax advantages while helping ensure a secure, financially healthy future. Assess your current contributions and consider optimizing them before the yearly deadline to enjoy both short-term and long-term tax benefits. For IRAs, contributions can often be made until the tax filing deadline of the next year (usually April 15th). Remember: it is important to take a look at your entire financial picture before making significant changes to your financial plan. Talk to your financial advisor to find the best course of action to continue on a path to financial security. 

Leverage Health Savings Accounts and Flexible Spending Accounts

Health-related expenses can take a toll on your finances, but utilizing Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can offer significant tax relief. Both HSAs and FSAs allow you to save for qualified healthcare costs. Any contributions made to these accounts may be tax-deductible, helping to reduce your taxable income. Whether or not you can open an HSA is dependent on your health insurance. These typically offer higher contribution limits and allow you to carry over funds. Opening an FSA is dependent on your employer. This type of account typically has lower contribution limits and does not allow you to carry over funds, so be sure to use them before the end of the year to avoid forfeiting them. Some FSAs allow a grace period or a limited carryover, but it depends on each individual plan. It is vital to weigh your options carefully and discuss any plans with your financial advisor to ensure the best financial outcome for you. 

Optimize Investment Portfolios

End-of-year is a great time to fine-tune your investment strategy. Consider tax-efficient investment practices such as:

  • Diversifying your account types
  • Holding investments for more than one year to qualify for lower capital gains tax rates

Take this opportunity to speak with a financial professional. They can help you diversify and rebalance your portfolio for tax efficiency and long-term growth. 

Charitable Giving for a Purpose

The final months of the year are the season of giving, and your generosity can translate into tax benefits. Charitable contributions to qualified organizations offer the opportunity for tax advantages including deductions, exemptions, and estate planning benefits. Consider various giving options to optimize your end-of-year tax-saving strategies. For example, explore bundling multiple years’ worth of donations into one tax year to exceed the standard deduction. Consult your financial advisor about your philanthropic giving to optimize your financial situation while bettering the world around you. Regardless of the details, remember to gather receipts and any other necessary documents surrounding your charitable contributions to claim the deductions. 

Explore Deductions and Credits

Among the end-of-year tax-saving strategies, there is an abundance of tax credits and tax deductions that should not be overlooked. Tax credits offer a direct reduction of your tax liability. Investigate credits such as:

Thoroughly research any deductions and credits to ensure you meet the eligibility criteria. Take the necessary steps to maximize them to put more money back in your pocket. If you need help discovering which ones are available to you, speak with a financial professional. 

After addressing your current end-of-year tax-saving strategies it is important to review your financial health as a whole. Revisit your financial goals and begin adjusting for the upcoming year. Being financially proactive and making informed decisions will help to optimize your tax situation and begin the new year on solid financial ground. If you are looking to improve your overall financial outlook and secure your financial future in the new year, contact the Blakely Financial team today. 

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.