Financial Wellness Archives - Blakely Financial

Navigating Divorce with Financial Confidence

Posted on June 2, 2025 by Emily Promise

Divorce is one of life’s most challenging transitions, affecting many aspects of your life, including your emotional well-being and your financial future. As difficult as the process can be, having a clear financial strategy can help you regain control, protect your assets, and plan for the next chapter of your life with confidence. At Blakely Financial, we’re committed to helping clients navigate these pivotal moments with clarity and purpose. In this blog, we’re sharing ways you can approach the financial side of divorce with confidence and care.

Understand Your Financial Picture

Before you can make informed decisions, it’s essential to know exactly where you stand financially. Start by gathering important financial documents, including:

Bank and investment account statements
Tax returns from the past several years
Retirement plans
Debt records, including mortgages, credit cards, and loans
Property titles
Insurance policies

You will also want to create a comprehensive list of your assets and liabilities, noting which are jointly owned and which belong to you individually. Understanding your current household budget and anticipating how it will change post-divorce is key to protecting your financial well-being.

Prioritize Immediate Financial Needs

While the long-term strategy is important, addressing immediate financial needs ensures your day-to-day security. Make sure you have access to your personal bank accounts and an emergency fund to cover essentials like housing, childcare, and legal expenses. If necessary, consider freezing joint accounts or credit lines to prevent any unauthorized activity. Also, review your insurance coverage, including health, life, and disability insurance, to make sure you are adequately protected during and after the divorce process.

Work with Financial & Legal Professionals

Divorce involves legal complexities and financial decisions that can have lasting effects, so we recommend assembling a trusted team to guide you through the process. This team should include a divorce attorney, a financial advisor, and, when appropriate, a Certified Divorce Financial Analyst® (CDFA®).

At Blakely Financial, our advisors help clients model different settlement options, analyze the long-term impact of asset division, and develop a comprehensive plan for their new financial reality. Collaborative financial planning during a divorce can help prevent costly mistakes, preserve long-term financial health, and provide reassurance during this uncertain time.

Divide Assets Strategically

When it comes to dividing assets during a divorce, it may seem obvious to just split everything down the middle, but in reality, it is important to instead understand how each asset serves your future. Think about the tax implications, growth potential, and liquidity of each asset. For example:

Retirement accounts may be subject to taxes and penalties if withdrawn early.
Real estate may come with ongoing maintenance costs and property taxes.
Investment accounts can offer growth opportunities but may fluctuate in value.

Work with your financial advisor to negotiate an asset division that supports your personal goals and financial stability. It’s also important to update estate planning documents, including wills, powers of attorney, and beneficiary designations, to reflect your new circumstances.

Plan for Your New Financial Future

As your life changes, so should your financial plan. Once the divorce is finalized, it’s time to set new, realistic short-term and long-term financial goals for yourself. To do this, revisit your retirement plan contributions, insurance coverage, and estate planning documents to ensure they align with your updated financial picture. Additionally, adjust your investment strategy to reflect your new circumstances, risk tolerance, and retirement timeline. Working with a financial advisor throughout this process can help you create a clear, realistic roadmap for your future.

Maintain Financial Confidence Moving Forward

Your financial journey doesn’t end when the divorce papers are signed. Periodic financial check-ins are essential to track progress toward your goals, adjust plans as needed, and manage risk as life continues to evolve. With the right support and planning, financial independence and long-term security are within reach.

Divorce is never easy, but having a dedicated financial partner can make a meaningful difference. At Blakely Financial, we’re here to help you navigate life’s transitions with clarity, compassion, and confidence. If you’re going through a divorce or planning for one, our team is ready to provide personalized financial guidance tailored to your needs. Contact us today to learn more about how we can support you through this important chapter!

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: Books to Read

Posted on April 9, 2025April 15, 2025 by Steve LaFrance

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

How Not to Invest by Barry Ritholtz

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

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

Quit Like a Millionaire by Kristy Shen and Bryce Leung

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

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

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

Rich Dad Poor Dad by Robert T. Kiyosaki

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

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

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

Get a Financial Life by Beth Kobliner

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

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

Principles by Ray Dalio

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

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

Reading is just the beginning of reaching financial literacy. Applying what you learn is what truly makes a difference! If you’re ready to take the next step in your financial journey, Blakely Financial is here to help. Our team will develop personalized strategies tailored to your goals, helping you make the most of your financial future. Contact us today to get started.

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

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

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.

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.

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.

5 Financial Frauds to Watch Out For

Posted on November 6, 2024 by Emily Promise

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

Phishing Scams

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

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

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

Identity Theft

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

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

Investment Scams

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

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

Credit Card Fraud

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

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

Tax Fraud

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

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

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

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

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

Your Financial Planning Roadmap

Posted on October 2, 2024October 4, 2024 by Emily Promise

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

Starting Out (20s – 30s)

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

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

Building Wealth (30s – 40s)

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

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

Preparing for Retirement (50s – 60s)

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

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

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

Living in Retirement (60s+)

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

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

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

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

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

Financial Freedom for Women

Posted on July 8, 2024 by Emily Promise

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?

Posted on April 9, 2024April 9, 2024 by Emily Promise

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?

Decreases the total amount of interest earned
Increases the total amount of interest earned by adding interest to the principal and accumulated interest
Has no effect on the total amount of interest earned
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?

It guarantees a fixed return on investment
It reduces risk by spreading investments across various asset classes
It focuses investment in one sector to maximize returns
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?

Checking account
Certificate of Deposit (CD)
401(k) or Traditional IRA
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”?

A market characterized by declining stock prices
A market in which stock prices are remaining stable
A market characterized by rising stock prices
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?

A mortgage rate that changes with the market
Lower interest rates over the life of the loan
The same interest rate and monthly payment throughout the life of the loan
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.