The IRS recently provided tax inflation adjustments for 2024 income, and various limit increases for IRA and 401(k) plans. Basically, your standard tax deduction has increased, as well as the contribution amounts for retirement plans and IRAs. This means you can save more for retirement and potentially reduce the amount of tax owed on income.

A friendly reminder as we approach the end of the year to be aware of some key items for financial planning. Some have hard deadlines like December 31, or more realistically, December 29 this year. December 29 is really the last business day of the year for 2023. Don’t wait until the last week of December to start these items if they are applicable to you. Many professionals are overwhelmed at this time of year, people are on vacation, and some firms are not fully staffed, or are not taking on client requests. So, start early!

In decades past, it was the most common method of payment – cash only. These days, going cash only is relatively unheard of, and impossible with some merchants. However, going cash only has both pros and cons. It is often touted as a great way to get in touch with your cash flow and for good reason. So let’s take a look at the pros and cons of going cash only.

California Proposition 19 is a significant piece of legislation that impacts real property transfers and has tax implications within the state. Originally passed by California voters in November 2020, the new law took effect February 16, 2021.  This proposition introduced changes to the existing laws regarding the transfer of real property and the associated tax consequences. Even though the law has been around for a while, many are still confused by its intent.

Last week was National Estate Planning Awareness Week but any time is the right time to get started on your estate plan. Estate planning is still a topic that needs addressed considering only about 33% of Americans have any estate planning in place, according to LegalZoom. Having a basic estate plan is crucial for individuals who want to ensure their wishes are carried out and their loved ones are protected in the event of incapacity or death. An estate plan consists of several key components, including powers of attorney, healthcare directives, living wills, and living trusts. Let’s take a quick look at each of these basic components.

Even though we have seen advances in AI and robo advising, it seems human advisors are still in demand and add value.  Whether for home repairs or financial planning many folks these days feel they can go it alone. When it comes to your finances and planning your future, is that really the best choice? Sure, you can search the Internet and find a few retirement calculators and even articles on saving, investing and “Top 5” lists. But, is that information even relevant to your personal situation? How do you know if what you found fits into your financial plan or is even appropriate to your situation? What if you make a move only to learn later that your decision cannot be undone without costly consequences? An on-going relationship with your adviser can be invaluable.

With the chaos in our nation’s capital showing no signs of ending soon, this could be your opportunity to score in some areas of fixed income. With Washington spending in question for the new fiscal year, and given that 2024 is an election year, there’s good reason to think that spending cuts are not really on the table. In fact, it’s very likely we will be facing either a continuing resolution or a shutdown in November just in time for Thanksgiving week.

Investors seem to love data – good, bad, and ugly. Many investors are moved by data depending on their own goals. For most of us, we tend to focus on the macro picture (as we should). Day traders and those trying to beat the market read more into the daily headlines. For those of us planning for life transitions, big goals, and even retirement, staying focused on our plan and our time in the market is key.

Do you love Halloween? I do. I think it’s a great cultural tradition and lots of fun. It’s especially fun seeing the littlest among us in their costumes. I really like that it’s a fun tradition for all of us regardless of most religious affiliations, political affiliation, and even ethnicity. Everyone who wants to participate can participate if they choose. Halloween is also becoming a major contributor to the GDP. For 2023, the National Retail Federation projects Americans will spend $10.6 billion - with a 'B' - on Halloween candy, decorations, and costumes this year. Personally, I think I might contribute more than my fair share. I usually add one or two new costumes to our household's growing collection, we also decorate when we're home, and we spend more per trick-or-treater than those who buy candy. Read on and I’ll explain.

Last week, we discussed why the ‘save money’ mantra is ineffective for many people. Especially those folks who earn in the lower quintiles. This week, I want to flip that script just a bit and address those who do have better incomes and can save some cash, but simply are not. A reminder, if you will, that saving money really is a necessity. And, that you should save as much as possible.

We’ve all heard that for a successful retirement, we need to save money. With that admonishment usually comes stats about how much to save, how much to have saved by a certain age, and if we would just give up that one latte every day we could all retire as millionaires! This post is aimed at those who struggle to save, or who have insufficient income to save. So, why don’t more people cut costs and save money?

A change in the SECURE Act 2.0 that mostly affects higher earners who contribute to their qualified workplace plan, and make age 50 catch-up contributions, has been delayed until January 1, 2026. Starting in 2024, the change would have affected those earning wages of more than $145,000, who contribute to their 401(k), 403(b), or 457(b) workplace plan, and make the age 50 catch-up contribution. The change will require that the catch-up contribution amount be made as a Roth contribution. This mandatory Roth catch-up contribution requirement has now been delayed until 2026.

I still find people who tend to pooh-pooh being told to use an IRA to save for retirement. They assume that they’re saving enough through their workplace plan, or that they are going to hit the jackpot just in time with their company equity, or that Social Security will take care of them. Ok, not really a plan, but nice to dream about. You may be saving the maximum through your employer plan, but do you really want all of your money for retirement to be in that one account? And who doesn’t want more money in the future? There are many reasons to save additional in an IRA and it can make a big difference. Let’s take a look at some basics, and some projections.

Although President Biden's campaign promise to cancel up to $10,000 ($20,000 for Pell recipients) in Federal student loan debt was challenged by Republicans and defeated, there is still some good news on the student loan front. Further, it looks like some borrowers may still hear good news in the coming months thanks to actions via the temporary IDR Account Adjustment. The program retroactively adjusted the number of payment credit years that had not been properly credited to bring more borrowers into relief status for having made 20 or 25 years of payments as required. Even though this action corrected a wrong, Republicans are challenging the IDR Account Adjustment and trying to prevent borrowers the relief they are qualified for and were originally promised under their loan terms.

We have all been there. Struggling with how to juggle living and enjoying life while managing our money in the most advantageous way is a real challenge.  We want the best out of life, but at times we can be our own worst enemy. For some, lack of knowledge leads to indecision.  For others, a little knowledge can be a dangerous thing. I see people either making no decision, making a decision too slowly, or rushing and making the wrong decision based on too much confidence and not a deep enough understanding of the topic.  Let’s take a look at bad money habits to break

To be honest, any time is perfect for estate planning. The time to plan is now. You don't have to be old or super wealthy to need an estate plan. It may be possible for you to go DIY if you have a very simple situation, or you can hire an estate planning attorney for a more comprehensive package. The important thing is to do something sooner rather than later.

For decades we’ve been told to first max out our 401(k) or other qualified workplace plan, then save more in an IRA and a taxable brokerage account. But, is this really the best approach? Having long since crossed the infamous age 50 milestone, I am rethinking how I would have liked to have saved. I generally relied on the approach of 401(k) first, any additional savings into an IRA, and then a brokerage account. Mostly because when I started working and saving, we didn’t have a Roth account option. Now, I am starting to think we’ve relied too heavily on the workplace plan and that we should maybe give more thought to our saving and investing approach. Especially for those under age 50, and especially until the end of 2025.

The up markets may have you in a good mood these days.  We’ve just come off of the best continuous run the markets have seen since 2019. The Fed may show up this Wednesday and be a bit of a Grinch, but you don’t have to be. If you are looking to be generous, now is a good time to start your Christmas shopping. Yep, it’s Christmas in July! Not the actual day of celebration, but some tips for preparing for Christmas and the other year-end holidays. Christmas is just under 22 weeks away as of this writing. My gift to you is some advice on how to handle that extra expense. Not everyone celebrates Christmas but for a large number of families this is a major holiday and a very big expense. Christmas can be fun, but it puts many folks into a financial tailspin and creates unnecessary stress. So, how do you prepare for the expense in your budget to avoid the tailspin and reduce stress in a year when inflation is up and a recession may be looming?

According to AARP the low-tech crime of check washing is on the rise. There are various reasons for this increase, but the main reason is that it works! Lots of folks are still using paper checks to pay their bills and thieves are taking advantage. Read on for more about what it is, how it happens, and what you can do to avoid being a victim.

We just wrapped up June and celebrated July 4th. which means we are at the midyear point. This is a crucial time in financial planning. Although most of us are checked-out for summer, now is a key review time given that we are half way through our calendar year. There are several reasons for a midyear review but one key reason is that your adviser would love to hear from you. Everyone is at a different stage in their financial journey, but let’s take a look at a few key reasons to have a midyear review even if there are no changes.