How to Change Your W-4 and Increase Your Take-Home Pay

February 15, 2022

Are you looking for a quick way to increase your savings or find some extra money to pay down debt? If you are like millions of other taxpayers currently overpaying your income taxes to the IRS each year, you still have time make adjustments to how much you are sending Uncle Sam. The average refund was $2,827 in 2020 with over 125 million refunds issued. This is a substantial amount of money to be loaning out to the IRS at zero percent interest. Continue reading “How to Change Your W-4 and Increase Your Take-Home Pay”

7 Steps To Fit Student Loans Into Your Financial Life Plan

March 18, 2019

What started out as whispers of a potential financial crisis related to recent student loan borrowing has grown to a cacophony of fear, frustration, and concern. The staggering amount of student loan debt in our country has been a shocking wake-up call. As a result, many recent graduates are in need of guidance.

While high student loan balances are having a significant impact on people of all ages, they are particularly stressful for younger employees or those who went back to school during the “Great Recession.” We often hear the anxiety in employees’ voices about having student loans and wanting to pay them off sooner versus later.

But as my colleague Kelley Long notes, there are situations where student loan debt isn’t as bad as it seems. In a Forbes contribution she highlighted the importance of prioritizing other personal financial goals before worrying about making extra payments on student loans. Here are a few financial wellness steps that generally should be taken before making any extra payments on student loans:

Step 1: Make a list of your most important goals.

Student loan debt may seem like a significant burden, but it doesn’t have to be the fun killer that prevents you from reaching meaningful life goals. No matter how tight your budget is, it is important to have a written financial plan to provide guidance when prioritizing where to allocate your time and financial resources.

In fact, the simple act of putting your specific goals in writing and the steps needed to accomplish them actually increases the likelihood you will achieve those goals. Your financial plan doesn’t have to be anything too elaborate. As Carl Richards points out in his book appropriately named The One-Page Financial Plan: A Simple Way to Be Smart About Your Money, you can accomplish big things with a basic plan.

Many people assume that just because they have student loans, they will never be able to buy a home or retire. A simple one-page financial action plan that helps you set SMART goals could be the solution to help you feel like you are making as much progress as possible as you fit student loan payments into other areas of your financial life.

Step 2: Create (and follow) a personal spending plan.

This one sounds like a no-brainer yet only one out of three Americans actually follows a budget and tracks income and expenses on a regular basis. Depending on which repayment plan you have, student loan payments are typically 10 to 15 percent of discretionary income.

Over 40 percent of student loan borrowers are not currently making any payments. If your loans are currently in deferment status, try to go ahead and incorporate your future payments into the spending plan. Instead of paying your loan servicer, you can start saving some of those payments and get into the habit of making the payment to yourself.

For those who are making payments, the average monthly payment is $351 for borrowers between the ages of 20 and 30. Choosing the right repayment plan is about more than just minimizing your current payments. Knowing how long it will take to become debt-free and how much you will pay in total interest over the life of your loan are major factors to consider. To learn more about choosing the right repayment plan for federal student loans visit Studentaid.ed.gov.

Step 3: Establish a starter emergency fund.

This is the “baby steps” stage that sets the framework for creating a fully funded safety net account. The starter safety net fund typically ranges from $1k-$2k in an account separate from your regular checking account and will come in handy if any unexpected medical, auto, or home expenses occur.

Step 4: Contribute enough to your retirement plan at work to get the full employer match.

If you work for a company that offers some type of matching contribution to your retirement plan, don’t be like the 25 percent of workers who are leaving free money behind. Take advantage of these matching contributions by at least contributing up to the matching amount. A contribution rate escalation program, if provided, can also help you reach that full matching level over time, even if it’s difficult to do now.

Step 5: Eliminate high interest credit card debt and personal loans.

When it comes to paying off loans and other debt obligations, it is important to realize that not all debt is created equal. Low interest student loans or mortgage debt are generally okay since the interest may be tax-deductible and they can help build your credit score. However, try to keep these payments under 25% of your monthly income.

For those other debt obligations with interest greater than 6% such as credits cards, the best approach is to create a plan of attack to eliminate that high interest debt first.

Step 6: Fully fund your emergency savings.

Do you have enough to cover at least 3 to 6 months of basic living expenses? The majority of Americans don’t have enough savings to cover 1 month’s worth of expenses. This is where it helps to be different than the average American and pay yourself first. Set up an automatic transfer from your paycheck into a separate savings account until you’ve built up enough savings.

If you are experiencing student loan anxiety, you may feel the urge to bypass this important step. My best guidance is to avoid this temptation and focus on building up an emergency fund first just in case a life happens moment occurs along the journey. If you participate in a health savings account or contribute to a Roth IRA, you can choose to include these funds in your emergency stash. Just keep in mind that you will typically need at least 3 months of liquid savings before investing those funds.

Step 7: Make sure you are on track to replace at least 80% of your income during retirement (or your own goal).

This is a difficult financial priority to focus on if you are in the early career stages and feel burdened by student loan debt. Paying off student loans may feel like a more urgent priority, but it is generally recommended to save at least 10-15% of income throughout your working years to achieve financial independence. You can use this retirement calculator to see where you stand and try to increase contributions as needed. See if your employer has an auto rate escalator feature which is a painless way to give your retirement savings a raise each year.

It is important to point out that the previous action steps are recommended before paying extra on student debt. If you have student loans that are starting to feel more like a mortgage payment, remember that creating a financial plan that is simple and flexible is the first step you can take to assume control over your situation. As my colleague Kelley Long wrote, she didn’t like making those 10 years of student loan payments, but she was happy to finally be done and have some other life goals completed as well.

How To Withdraw Over $100k From Your 401(k) Tax-Free During Retirement

January 11, 2019

Do you know how your retirement accounts will be taxed at retirement? If not, you might want to get up to speed with the IRS tax code (or work with an advisor who is) otherwise you may be missing out on some significant tax savings. Let’s start with the basics of how different sources of retirement income are taxed:

Common retirement income sources taxed as ordinary income

Traditional retirement accounts, including deductible IRAs, pre-tax 401(k)s, and inherited traditional retirement accounts are taxed as ordinary income in the year of distribution and pension benefits are taxed as ordinary income in the year received. (which means it will be taxed as if you earned it working during that year.)

Another source of taxable ordinary income during retirement is Social Security, but only a portion depending on the amount of total income from other sources. To estimate the taxable portion of Social Security benefits, check out this helpful calculator.

Common retirement income sources taxed as capital gains

Some sources of income during retirement may be taxed at preferential capital gains tax rates (basically lower rates than you pay on income that you earn working, aka “ordinary income”.) These sources include proceeds from the sale of stocks and mutual funds that are NOT held in a retirement account, which are subject to long-term capital gains tax treatment if held for over one year prior to sale. (Losses may be used to offset gains in the same year. Up to $3,000 in net losses may be deducted from income and losses that exceed $3,000 may be carried forward.)

Qualified dividends are a special type of dividend that also receives capital gains tax treatment (aka most people only pay 15% tax on dividends, even if they are in, say, the 32% tax bracket.)

Real estate is also subject to capital gains tax treatment when sold. There is, however, a special exclusion that applies to the sale of a primary residence. If a taxpayer lives in a primary residence for at least 2 of the previous 5 years before sale, the taxpayer may exclude up to $250,000 ($500,000 if married filing jointly) in capital gains from tax.

Common tax-free sources of retirement income

Not all sources of retirement income are taxable. Roth IRAs and Roth 401(k)s are tax-free when the account has been open for at least five years and the owner is at least age 59½. This is referred to as a qualified distribution. Inherited Roth accounts are also tax free as long as the deceased owned the account for at least five years.

Health Savings Accounts (HSA) are tax-free if funds are used for qualified expenses. Funds used for non-qualified expenses are taxed as ordinary income and subject to a 20% penalty tax if withdrawn before age 65 (after age 65, it’s just taxed as income when not spent on medical expenses.)

Finally, withdrawals from your regular savings account may be spent without incurring additional tax liability, although as you probably know, you pay taxes on any interest as you earn it.

Running a few ‘what if’ scenarios

Once you have a general understanding of how your different income sources will be taxed during retirement, you can run a few different “what if” scenarios. For example, let’s assume Hank and Cindy each are age 61 and recently retired at the beginning of the year. They would like to delay the start of their Social Security benefits until full retirement age or later (66 since they were born in 1954). They both have retirement plans from their former employers and can start making distributions penalty-free now that they are over 59½.

Their goal is to minimize taxes as much as possible and to take out just enough from their 401(k) accounts to stay in the safe zone of not outliving their money during retirement. Here is a quick snapshot of their retirement savings:

Hank’s 401(k) = $325,000
Cindy’s 403(b) = $275,000
Emergency savings/“rainy day” fund (checking, savings, CDs) = $150,000

Now, let’s assume that Hank and Cindy have an annual retirement spending goal of $42,000 per year ($3,500 per month). The mortgage is paid off and they are completely debt-free. Based on a generally accepted but widely debated 4% “safe withdrawal rate” rule, they could actually withdraw up to $24,000 in Year 1 of retirement. In this example we’ll stick with a $20,000 withdrawal from Hank’s 401(k), which is realistic based on this How Long Will it Last Calculator. The remaining $22,000 in annual income would come from their checking and savings accounts.

Looking at how their withdrawals will be taxed

How will Hank and Cindy be taxed using the 2018 income tax tables? The $20,000 retirement plan distributions are included as taxable income. The $22,000 coming from their regular checking and savings is after-tax return of principal and would not be taxed. (Only interest earned would be included as taxable income).

Hank and Cindy choose a married filing jointly tax status and their total income tax for 2018 will be a grand total of $0. Yes, that is zero. Here is how they will be taxed:

A quick review of the current Income Tax Rate Table shows us that a married couple filing jointly is taxed at the 12% marginal tax bracket for income over $19,050 but less than $77,400. But keep in mind that your total deductions and exemptions are subtracted from your income to determine your taxable income. The total deductions amount is either your standard deduction or your itemized deductions, whichever amount is greater.

The standard deduction is a fixed amount based on your age and filing status (e.g., $24,000 for married couples filing jointly in 2018). Hank and Cindy’s taxable income will look something like this:

Total Income: $20,000

– Total Deductions: $24,000

= Taxable Income: $0

Note: Hank and Cindy benefited from maintaining an emergency savings account that eventually transitioned into their short-term retirement income bucket. Most financial planners would suggest keeping assets that will be needed within a 3 to 5 year time horizon in safe, conservative investments such as cash equivalents, savings, CDs, or short-term fixed income instruments. This is sometimes referred to as the “safety bucket.

Using a Roth account instead of a savings account

In this example, a similar result could be obtained if the additional $22,000 retirement income was funded through tax-free sources such as a Roth IRA or Roth 401(k).

A similar result with taxable investments

If this couple held taxable investments in a brokerage account, they could also take advantage of historically low long-term capital gains rates (currently 0% for the 10% and 12% marginal tax brackets).

In essence, they could “fill up” the 12% income tax bracket with long-term capital gains up to the marginal tax bracket cap of $77,400 and not have to pay a dime of federal income taxes on that growth. But they would still want to invest that money in tax-efficient investments such as passively managed mutual funds or ETFs with relatively low turnover and low costs.

Remaining tax-free until Social Security starts

In summary, this type of retirement funding strategy could be replicated for the next 5 years until this couple has reached full retirement age for Social Security purposes. By that time, they could realistically take out over $100,000 from their retirement nest egg completely tax-free.

The secret is found within a simple concept known as tax diversification. Having multiple retirement income sources that are each taxed in a different manner can help you legally use the complicated IRS tax code to your advantage.

This is an example of just one of many different ways to minimize taxes during retirement. As you approach retirement, go ahead and run a few different “what-if” scenarios to examine your projected taxes. You can use this simple TaxCaster tool from TurboTax if you want to run a quick estimate using the current tax tables.

Keep taking full advantage of your retirement plan at work, especially up to the max to get the match. But take a second look at Roth IRAs, taxable accounts, HSAs, and good old-fashioned savings as well to help you obtain optimal tax diversification.

7 Financial Steps To Take Before The Year Is Over

December 14, 2018

It’s safe to say that you will start to hear a lot of talk about New Year’s resolutions over the course of the next few weeks. Since money and wealth are integrated into many aspects of the life journey, it isn’t too surprising that financial resolutions are generally near the top of those well-intentioned “to do” lists for the new year. But if you’re like me, you’ve broken most of them before Groundhog Day.

That’s why this year I’ve decided to make and keep some New Year’s resolutions before the new year even starts. That’s my financial holiday gift to myself. Here are some actions you can take before the year is over as an opportunity to make sure you are doing everything to improve your own financial wellness during 2019 (and beyond):

1. Create a plan to aggressively fund your savings account

Over the past year, I’ve met with many individuals and families who are dealing with some major life changes and challenges that have made the emergency safety net a necessity. This may seem like a basic step, but most households report being woefully off track with this fundamental financial goal. According to a Federal Reserve report on financial well-being, less than half of U.S. households have enough savings to cover a $400 emergency without using credit or relying on friends and family.

A general guideline is to keep around 3-6 months of basic living expenses in an emergency savings fund. Some people are better suited maintaining an emergency savings fund of 6-12 months of living expenses (especially those in an uncertain job situation or with concerns about the economy). If paying off debt is a current priority, you should at least maintain a starter emergency fund of around $1k-2k even if you are in debt reduction mode.

In addition, consider contributing to a Roth IRA or HSA since these accounts provide tax advantages and may also be considered a supplemental part of your emergency fund. Just be sure to keep your core emergency savings in relatively stable, liquid assets that are not subject to market volatility.

2. Review your income tax withholding

Are you looking for a quick and easy way to increase your take-home pay so you can free up extra dollars to save in 2019? Or maybe you’re worried that you haven’t had enough withheld due to the tax change this year? You may need to adjust your income tax withholding, especially if you’ve had any changes in your income or expenses so far this year or if you’ve received a large tax refund in the past and you’re tired of loaning your money to Uncle Sam at zero interest.

It may seem easy to continue with this forced savings program right now, but with a little discipline and a few simple changes to your Form W-4, you can put that money from your upcoming paychecks to work for you right now rather than waiting to file your tax return. For a calculator you can use to figure out your recommended tax withholding, visit the IRS withholding calculator or this alternative version from TurboTax.

3. Establish a separate savings or checking account for irregular expenses

It may be too late to save for travel expenses over the holidays if you do not already have a plan in place. However, it’s not too late to start planning for upcoming vacations or to start setting aside money for the 2019 holiday season or annual expenses such as taxes and insurance.

This is where a planned spending account comes into play. You probably have heard of this concept a time or two before, but not everyone has a formal plan in place to prepare for irregular expenses. In fact, these non-systematic expenses are usually the ones that can blow up a budget and create financial stress.

This effective money management technique simply requires us to create a separate account for those expenses that don’t occur on a regular basis but still belong in your personal spending plan. Rather than turning the calendar to December and wondering how to pay for those holiday gifts, taxes, insurance, HOA dues, etc., you can go ahead and work them into your spending plan right now.

4. Schedule a “money talk” with a spouse, significant other, or friend

It is important to have regular conversations about your financial goals if you are married or in a committed relationship. Regardless of your money personality or who normally handles different financial roles (paying bills, spending money, investing, planning, etc.), regular money dates can help couples overcome prior roadblocks to working together as a team.

If you do not have a financial planning partner or your significant other is creating significant roadblocks on your path to financial freedom, you can reach out to a trusted friend or family member to serve as your accountability partner or voice of reason. Then again, some of our friends aren’t the best models of financial responsibility so you can always reach out to a CERTIFIED FINANCIAL PLANNER™ professional or financial wellness coach for additional guidance.

5. Review your membership accounts and subscription fees

With all of the different account subscriptions and memberships that we maintain in today’s connected world, it is easy to lose track of the actual costs of these conveniences. That is why it’s advisable to complete an annual inventory of these type of accounts. As a result, Amazon Prime, Netflix, Hulu, Spotify, etc. each have to answer the same question at least once every six months from me – are you still worth keeping?

6. Verify your debt reduction plan is on track

Not surprisingly, debt consistently remains at the top of the list of obstacles holding people back from reaching their important goals like retirement or simply building up savings. Our latest research suggests that many households are still in need of a plan to reduce or eliminate high interest debt.

If debt reduction is near the top of your financial to-do list for next year, check out our Debt Blaster Calculator to see if you are on track to get those credit card balances and other creditors out of your life. If you don’t have a plan, your new year financial checkup should provide you with an excellent place to start.

7. Re-balance your investment portfolio

One investment best practice behavior that most financial professionals recommend is to re-balance your portfolio on at least an annual basis. If you haven’t reset your target asset allocation for current and future investments, the end of the year is an ideal time to do so. Take advantage of automatic re-balancing if it’s available through a retirement plan at work to simplify this process with a click of the button. While you are examining your retirement portfolio, you can also review your answers to important questions about the status of your own retirement plans.

Taking all seven steps between now and the end of the year is an unlikely goal for most of us. But a little dose of financial awareness during the busy holiday season can provide you with lasting gifts of financial wellness. Try choosing 1-2 of these action steps and commit to checking them off your “to do” list. Don’t wait until next week or next year to start turning those good intentions of yours into a meaningful financial life plan!

How To Manage Your Finances If You Hate Dealing With Money

November 09, 2018

Do you sometimes know what to do with your money but still don’t take action on that knowledge? A recent financial coaching discussion reinforced the influence of the “knowing – doing” gap. It also helped illustrate how the gap between our financial knowledge and actual money-related behaviors can sidetrack progress towards important life goals.

The story of Maria

Here was the situation. Maria (not her real name) is a recently divorced mother of two who was struggling to balance making payments on her student loans, car loan and credit card bills with a desire to begin saving for unexpected expenses and most importantly to her – retirement. She knew that despite the fact she still had enough income to meet her family’s basic needs, there wasn’t much breathing room and something needed to change.

Maria used spending tracker tools like Mint.com in the past and she understood that an emergency fund would help her break the cycle of living paycheck to paycheck. She also understood how important setting aside money for retirement and her children’s future education costs are during this season of life.

When we know what to do, but still don’t do it

Maria’s biggest obstacle wasn’t knowledge. It was avoidance. Money arguments are often linked to divorce and her prior marriage seemed like a constant wave of disagreements about how to best manage their finances. Avoiding money matters became her coping mechanism of choice. As a result, she put her credit card payments on auto-pay and didn’t really know how much debt she had accumulated since the divorce was final.

How we become money avoiders

In general, money avoiders tend to view money as negative and a source of fear, anxiety, or possibly even disgust. Money avoiders often have beliefs that wealthy individuals are greedy. They also tend to develop thoughts that they don’t deserve money or that money is bad (and quite possibly the root of all evil) so it’s not okay to accumulate more wealth during your lifetime than you will actually need.

Money avoiders may experience conflicting beliefs that having more money and wealth could improve their life satisfaction, self-worth, and social status, while at the same time believing all the negative things. This belief system can create a tug-of-war between feelings of contempt toward money and wealthy individuals to placing too much emphasis and value on the role of money during their life journey.

Money avoidance can involve both “doing” and “not doing” things. Not surprisingly, money avoiders have difficulty organizing financial statements and frequently struggle discussing money matters. It may seem like a no-brainer suggestion to simply get organized, but money avoiders are pretty darn good at…well…avoiding!

Are you a money avoider?

This financial coaching scenario isn’t unique. Money avoidance is a common obstacle on the path to attaining an authentic sense of financial wellness. You may be a money avoider if any of the following are true:

You have financial denial

This occurs when we tend to minimize our money problems or try to avoid thinking about financial matters altogether rather than accept and deal with our financial realities. People with issues related to financial denial have trouble opening bank or credit card statements. They don’t see the need for a financial plan. Money avoiders also struggle to communicate with their partner about money and have a tendency to avoid savings or building wealth.

Symptoms:

Frequent late fees
Regular overdraft charges
Accumulating significant debt
You don’t open your statements

You have financial rejection

Have you ever known anyone who appeared to feel guilty about having money? People who reject money, another sub-group of money avoiders, often feel that they do not deserve good things in life. Accumulating money is viewed as an undeserved gift. This is a common money-related problem that some people experience after inheriting large sums of money.

Symptoms:

Rapidly spending an inheritance
Actively avoiding the acquisition of wealth
Taking an unconscious vow of poverty
Giving money away to your own detriment

You have difficulty spending money

Living within your means and spending less than you make is considered a best-practice behavior. At the extremes, this can become a potentially self-destructive financial behavior. These spending difficulties common among money avoiders are often based on seemingly irrational feelings of fear or anxiety. They may also be accompanied by self-sacrificing tendencies and a sense of guilt whenever they spend money.

Symptoms:

Guilt over spending money
Excessive frugality even when you have money available
Spending money causes physical pain

You avoid risk to an excessive degree

Some people would rather do nothing than lose anything. Risk avoidance may come in the form of how people choose to invest. Risk avoiders tend to focus on things such as market risk rather than why they are investing in the first place.

Symptoms:

You keep your retirement savings in cash or the lowest risk option, even when you have more than 10 years to go
You have large amounts of cash set aside that are way more than enough to cover emergencies
You check your investment accounts daily and obsess over every market movement

How to overcome money avoidance

Let’s go back to the original financial coaching scenario. Maria acknowledged having a long history of trying to avoid money. Ignoring bank account and credit card statements and refusing to open statements from her 401(k) provider were just some of the symptoms. Maria was essentially sabotaging her financial success. Here are some steps Maria started taking to move into the direction of meaningful change.

1. Start talking about money and life. (Reframe how you think about money.) Maria was encouraged to think about her own money story and the experiences that helped shape her beliefs about money. She also started identifying ways to challenge money scripts that were supporting her avoidance of money matters.

2. Make a list of “SMART” life goals. In order to get Maria focused on her financial plans, the core focus of her coaching discussions centered around her life. She dedicated time in between her roles as mom and employee to establish meaningful goals that were Specific, Measurable, Achievable, Relevant, and Time-Bound. This helped her prioritize the things that mattered the most and filter out some of the noise and distractions.

3. Express gratitude. Maria began a gratitude journal and committed to writing down 3-5 things she was grateful for each day. Shifting her attention to the “gifts” that she was grateful for in life provided a new sense of appreciation of what was good about the world and her life. This was a refreshing alternative to focusing on what was wrong in her financial life.

4. Commit to daily check-ins and weekly check-ups. (Start small.) Reversing over a decade of financial avoidance doesn’t just change with the flip of the switch. Maria decided to use her bank’s spending tracker app to monitor where her money was going. After breaking through the fear of the unknown, she dedicated 45 minutes to reviewing where her money went over the last 3 months.

The next day, she used this information to begin setting some spending limits for the next 2 weeks. She set an alert on her phone to remind her to log into her online banking app at the same time each day during her lunch break. This helped her increase the overall awareness of her financial situation and made her weekly spending plan reviews easier to stick with.

5. Focus on the quick wins first. The last thing money avoiders like Maria want to worry about is a list of 20 things to do to take control of their financial life. That would be too overwhelming. Instead, she was encouraged to take small steps such as checking her credit report, logging into her 401(k) account and gathering her credit card statements. Small wins helped her build up the courage to start finding solutions to her lack of financial wellness.

6. Seek out professional guidance and social support. Maria had already started to seek out the financial wellness coaching services offered by her company as an employee benefit. Her financial wellness plan also included self-care for emotional well-being to help her deal with the aftermath of divorce. Maria is still working to build her social support network and gradually feels more comfortable talking about her finances in a proactive manner.

The best news is that Maria is no longer a money avoider. She is now turning knowledge and awareness into an actionable plan that will continue to improve her sense of financial wellness. What step(s) will you or the money avoider in your life take?

A version of the post was originally published on Forbes.

The Pros And Cons Of In-Service Withdrawals From Your 401(k)

August 31, 2018

A solid financial plan requires the examination of all available opportunities to use financial resources to meet important life goals. Many 401(k) plans have a unique feature that can either create a world of opportunity for your retirement plans or create a tax and retirement planning nightmare. This 401(k) plan feature is known as an in-service withdrawal.

It is widely understood that distributions from a 401(k) plan that are made before you reach age 59 ½ are taxed as ordinary income. But the real kicker is the fact that minus a few exceptions, they are also subject to an additional 10% early withdrawal penalty.

The in-service withdrawal exception

In-service withdrawals or “in-service distributions” allow you to take distributions or roll your contributions over to an IRA after reaching age 59 1/2 while you are still an employee of the company. (It is important to note that not all 401(k) plans have the option to allow participants to take an in-service distribution while still actively employed. According to the Plan Sponsor Council of America, it has been estimated that up to 77% of 401(k) plans allow in-service withdrawals, so check with your 401(k) provider first.)

Typically, the only way to access elective deferrals to a 401(k) plan while you are still working is through a hardship withdrawal or 401(k) loan. Certain triggering events such as financial hardship must occur related to reasons such as unreimbursed medical expenses, buying a primary residence, paying for college tuition, funeral expenses, and to avoid eviction or foreclosure. Hardship withdrawals are subject to ordinary income taxes PLUS a 10% penalty if you are under age 59 ½. You also must prove that you have no other funds available.

In contrast, in-service withdrawals at age 59 ½ (if offered) that are not due to financial hardship are not subject to the 10% penalty and have no restrictions on how you use these assets.

Here’s how it works:

For example, let’s assume you’re still working for an employer and just reached age 59 ½. If your plan allows for an in-service withdrawal, you may choose to either rollover your 401(k) money to an individual retirement account (IRA) or you can even take a cash distribution. There are no penalties if you’ve reached age 59 ½, but withdrawals from a pre-tax 401(k) are still taxed as ordinary income.

This is where it gets tricky from a tax planning perspective. If your distribution is taxed as ordinary income, it will be added to your earned income for the tax year in which you take money out of the 401(k) plan. The distribution could potentially put you in a higher marginal tax bracket and may completely negate the benefits of making contributions to your retirement plan in the first place.

You can avoid having an in-service withdrawal become a taxable distribution by completing an IRA rollover. In fact, if you take a cash distribution and change your mind, there is a 60-day window to complete a rollover to an IRA. This will continue to allow for tax-deferred growth and could potentially give you more investment options to choose from and more flexibility with how your retirement portfolio is structured. This is why it’s the most common in-service distribution.

Reasons to consider an in-service distribution

The primary reason to consider an in-service withdrawal from your 401(k) is the added control and flexibility that comes with rolling assets into an IRA. If you are unhappy with the investment lineup within your 401(k) plan or have high administrative fees and expenses, it may be a welcome relief to know that you have an exit strategy while still remaining with your employer.

Individual retirement accounts may provide you with more (or different) investment choices than the ones offered in an employer sponsored retirement plan. They may allow for greater overall diversification through investments such as individual stocks, ETFs, individual bonds, no-load mutual funds, CDs, separately managed accounts and a number of other choices.

How to find out if your retirement plan allows in-service distributions

In-service distributions may potentially be available through a variety of qualified retirement plans in addition to 401(k)s. Profit-sharing plans, pension plans, employee stock ownership plans (ESOPs) and 403(b) plans are examples of other qualified retirement plans that allow for withdrawals while still working. Since each qualified retirement plan is unique, there are different withdrawal rules governing each specific type of contributions (salary deferral, employer matching contributions, profit sharing, rollover, etc.).

Check with your plan administrator or review a copy of your employer’s summary plan description (SPD) to find out if your plan offers an in-service withdrawal option. In addition to the age 59 ½ requirement, some plans may have a length of service requirement. You should also make sure that taking an in-service distribution will not hurt your ability to continue contributing to your employer’s qualified retirement plan and will not create any problems with your plan’s vesting schedule.

The potential downsides of an in-service distribution

Having more control and flexibility over how and when to access your retirement savings doesn’t necessarily mean this is the smartest financial decision. There are some compelling arguments against taking in-service withdrawals once you reach age 59 ½. Here are just a few of those downsides to consider:

Cash distributions may end up creating a greater tax burden than waiting until full-retirement to take money out of your 401(k) plan. As retirement nears, the urge to eliminate credit card debt or pay off a mortgage can be significant. You may even have a major purchase (e.g., boat, car, second home) that you want to make and your retirement plan would seem like a logical option. Unfortunately, you will likely pay significantly higher taxes if you take an in-service distribution while you are still working. Waiting until retirement to take out 401(k) assets is often a better alternative since your income level and taxes will likely be much lower.

IRA rollovers will allow you to continue to defer taxes until you choose to withdraw the funds in retirement. However, IRA rollovers also have potential drawbacks you must be aware of.

You will lose the ability to delay required minimum distributions (RMD) beyond age 70 ½. In reality, this one may not seem as big as a concern because who really wants to work into their 70’s? But with retirement confidence levels low, you may either work beyond the so-called “normal” retirement age out of necessity or because you want to work as long as possible (mind and body willing of course). There are no RMDs from 401(k) plans as long as you are still working (and you don’t own a 5% or bigger stake in the company).

You will not be able to use a net unrealized appreciation (NUA) strategy if employer stock is rolled into an IRA. This is important if you have highly appreciated company stock in an employer-sponsored retirement plan. Favorable NUA tax treatment allows you to pay income taxes only on the stock’s cost basis. When you eventually sell shares of stock, you are taxed at long-term capital gains rates, which could be significantly lower. Of course, you must weigh the potential tax savings of using the NUA strategy with the risk of having too much invested in any individual stock holding if you decide to hold on to company shares.

You will no longer have access to borrowing options once 401(k) assets are rolled into an IRA. While borrowing money as retirement approaches isn’t on the top of everyone’s list of potential goals, it remains an option within 401(k) plans if provided by your employer. IRAs do not have loan provisions and you would have to take a taxable distribution to gain access to your assets.

401(k)s tend to have broader federal protection from creditors. IRAs have federal protection from bankruptcy protection, but that protection has limitations. General creditor protection is decided at the state level. As a result, 401(k) assets tend to have broader protection from potential lawsuits. If you have a pending lawsuit (or think there may be the possibility of one in your future) you should think twice about rolling assets from a 401(k) plan to an IRA.

It is possible that an IRA rollover may end up costing you more in the long run. Always compare the fees, costs, and services to make sure that a rollover fits your short and long-term financial plans. Also, keep in mind that conflicts of interest may exist if financial advisors stand to benefit from your IRA rollover decision. Financial services companies benefit from money in motion and view the IRA rollover market as a significant business opportunity.

There are plenty of valid reasons to consider an in-service withdrawal from your 401(k) plan. Just be sure that your financial advisor is operating in your best interests and not simply trying to generate assets under management (AUM) fees or earn commissions from the sale of investment or insurance products. Consult a fee-only financial planner or utilize the services of unbiased financial wellness providers to learn more about in-service distribution options.

A version of this article was originally published on Forbes.

What You Need To Know Before Listing Your Home For Sale

August 10, 2018

Choosing when to buy or sell a home is one of those crucial financial planning decisions that will have a lasting impact on your journey to financial independence. For many Americans, home equity remains the single largest asset on the personal net worth statement.

While it’s important to never try to time the stock market, it’s just as difficult to time the housing market. The millions of homeowners who purchased real estate prior to the housing bubble provide evidence of the inherent challenges of predicting future housing prices and economic conditions. Regardless of your current level of confidence in the housing market, there are many reasons that may prompt your desire to sell a home or investment property.

Whether you are relocating for work, moving to a more desirable neighborhood, making room for a growing family, or downsizing you need to take steps to make sure that your house is ready to sell. The peak season for selling a home in most housing markets across the country is typically during the spring. However, there are some strategies that you can put into action to help sell your home regardless of the season or current economic conditions that are out of your control.

Here are some tips and suggestions to help you get ready to sell your home or investment property:

Research your local housing market

If you have lived in your current home for at least a couple of years, you most likely have a general idea of housing prices in your neighborhood and local economic conditions. It is still a good idea to do some additional homework and research housing activity in your area. One place to find local and regional housing statistics is through the National Association of REALTORS® on REALTOR.org.

Find out how many houses are currently on the market in your area and the average number of days they have been listed. It’s also helpful to look at comparable homes in your neighborhood to get a general idea of what the competition looks like. A comparable or “comp” home has similar features and is usually located within a close proximity to your home.

Examining the number of bedrooms, bathrooms, lot size, and other features are important when seeking out comparable properties. If you really want to go the extra mile in reviewing comparable properties, visit open houses and search real estate websites that publish on the Multiple Listing Service (MLS).

Set a reasonable asking price

Pricing your home correctly from the start is extremely important. Avoid making emotional decisions or anchoring your listing price to the home’s previous value.

If you live in a “hot” market, there are more buyers than sellers and prices are likely being driven up by that demand. You can often price your house more aggressively as long as you stick within reasonable price limits. In a “cold” market, buyers tend to be more selective and pricing usually needs to be at or slightly below market value to attract an offer.

Interview real estate professionals and other potential team members

Do your homework if you decide to utilize the service of a real estate agent. It is suggested to interview 2-3 potential realtors to make sure you are choosing the best professional possible. You can use this guide to help you find the right questions to ask when talking with a real estate agent.

Other potential members of your professional team include a closing attorney, home inspector, photographer, landscaper, handyman, painter, and home stager. If you decide to go the DIY route, be sure to understand state laws regarding the sale of real estate. Some states require sellers to provide disclosure forms that obligate you to report any known facts about the property’s condition that may impact the value or the desirability to purchase the home.

Improve your home’s curb appeal

When it comes to buying a home, first impressions have a significant impact. While significant landscaping updates aren’t likely to play a major factor in a buyer’s decision making process, it does help to avoid anything that could detract from that positive first impression.

Get rid of the clutter

This step includes removing personalized photos, memorabilia, and other knickknacks. It often helps to get an independent, objective assessment of what should stay and what should go during the staging process. Major renovations aren’t usually necessary, but a fresh coat of paint and minor repairs can leave a potential buyer with a good first impression. It’s also helpful to have different pictures and furniture layouts available to provide buyers with a vision of how various spaces could be used in different ways to meet their lifestyle needs and desires.

Give your home as much social media exposure as possible

Realtor.com, Trulia, and Zillow are a few examples of real estate websites that expose your home to potential buyers. You may also find success in getting the word out about your desire to sell via social media sites. Many realtors use YouTube videos, Pinterest groups, and blogs to obtain potential buyer lists and market their services. Facebook is another potential site to help get the word out that you are in the process of selling.

Estimate the potential profit (or loss)

Before you ever get to the point of reviewing a purchase offer, you should already evaluate potential gains or losses within your acceptable price range. The selling price will be reduced by the following items:

Real estate sales commissions
Fees paid at closing
Title charges
Government recording and transfer charges
Any additional settlement charges
Debt obligations related to paying off any existing mortgages
Home repairs included in the sales contract or repair work completed prior to putting your house on the market
Preparation work to get your house ready for the market such as landscaping, painting, etc.

Understand current tax laws

Selling a home is a taxable event. The good news is that the IRS provides tax breaks for homeowners. The main requirement is that you generally must have used the house as your primary residence for 2 out of the previous 5 years. The current capital gains exclusion amount is $250,000 for single taxpayers and $500,000 for married couples that file jointly.

Capital gains are based on your home’s selling price after subtracting any deductible closing costs, selling costs, and your tax basis in the property. Your cost basis on a primary residence is the original purchase price plus any related purchase expenses. Then you can also add in the cost of capital improvements and subtract any depreciation and casualty losses or insurance payments. HomeGain provides a capital gains calculator to help calculate your profits. IRS Publication 551 provides additional information on determining the cost basis of assets.

Whether you are absolutely planning to sell your home within the next year or simply reviewing your options, it is important to have an exit strategy. Your home may be the location for countless memories (both good and bad). However, avoid letting emotions drive your selling decisions and incorporate some strategies into your financial plan that will help you get your house sold on your terms with confidence.

A version of this post was originally published on Forbes.

Should You Use The Brokerage Window In Your 401(k)?

July 27, 2018

Are you a hands-on investor seeking investments beyond your 401(k) plan’s core list of investment choices? If so, you may have an option available in your retirement plan at work that most retirement savers aren’t aware of – the self-directed brokerage account (SDBA). This “brokerage window” option available in some retirement plans gives participants the ability to invest in mutual funds, exchange-traded funds (ETFs) and in some cases individual stocks and bonds.

Who typically uses a self-directed brokerage account in a 401(k) plan?

According to Aon Hewitt, approximately 40% of employers offer self-directed brokerage account options, but participation rates remain low. Aon Hewitt found that only around 3 to 4 percent of retirement plan participants with access to SDBAs actually use this self-directed option.

The SDBA option has generally been more popular among retirement savers who have larger retirement plan balances or who work with an outside financial advisor. For example, Schwab recently reported that the average account balance of those using this option is just over $260,000. Compare this to Fidelity’s reported average balance of all 401(k) participants, which is just under $100,000.

What does a self-directed brokerage account offer?

The main benefit is that SDBAs give you more flexibility when it comes to the investment options available. Access to a wider range of investment choices than the default ones presented in your plan can be a refreshing alternative if you are generally unhappy with the investment options available in your plan.

For example, if your 401(k) plan does not include access to target date funds or asset allocation funds, you can use the SDBA to add this fund to your retirement portfolio. This can also be appealing if you are simply using the self-directed windows to gain access to asset classes not represented in your core investment lineup such as emerging market stocks, international small cap, and value or growth-oriented funds. SDBAs can even help you diversify with alternative asset classes such as real estate and commodities.

Beware of the paralysis of too many choices

But as behavioral finance studies on the paradox of choice have shown us, too many options can hinder participation rates in 401(k) plans. Choosing the right investments for your goals, risk tolerance, and time horizon also requires discipline. Most investors lack a written game plan or investment policy statement. As a result, many individual investors are prone to the “behavior gap” and underperform the actual funds they own due to mistakes related to emotional decision-making and market timing.

Self-directed brokerage accounts are designed for advanced investors who know how to research and manage their investments. FINRA warns investors that the additional choices commonly associated with self-directed accounts require additional responsibilities. In order to follow a disciplined investment plan, you can start by focusing on things within your control such as asset allocation, contribution rates, minimizing costs, and asset location (i.e., pre-tax vs. Roth 401(k)).

Pay attention to the fees

Minimizing your overall investment costs is one thing you have some control over as an investor. That’s why it is just as important to understand all fees and expenses associated with a self-directed brokerage account as it is to know your core 401(k) plan expenses.

Some 401(k) plans charge an annual maintenance fee for using the mutual fund or brokerage window. It is also necessary to identify if there are any commissions and transaction costs associated with trades made through SDBA accounts. You can check your plan’s fee disclosure to better understand the actual costs related to your 401(k) plan.

Check mutual fund expenses

In some cases, you may also see an increase in mutual fund expenses when you go outside your core investment options. This is because most funds available in the SDBA are retail share classes which tend to be much more expensive than the institutional funds many large retirement plans provide access. On the other hand, if your 401(k) plan has expensive mutual funds, the self-directed brokerage account is a potential remedy.

How does its performance compare?

Finally, it is important to note that there is a reason self-directed brokerage accounts are underutilized. The average investor is often better served simplifying their investments as much as possible. That is why it is important to establish benchmarks to track your performance.

Self-directed brokerage accounts give you an opportunity to try to outperform or diversify your plan’s core options. But if you choose to take the self-direct route and find that your investment performance consistently lags the core investment portfolio, you may need to take a simpler approach to your retirement savings plan.

A version of this post was originally published on Forbes.

How To Create Your Own Investment Policy Statement (And Why It’s Important)

June 28, 2018

Are you confident that your investments are well positioned to help you reach your financial life goals? This can be a difficult question to answer if you do not have a written action plan already in place to help provide guidance for your investment decisions.

While the overall mood of investors has improved dramatically since the Great Recession, many investors still lack confidence that their asset allocation is appropriate for their age and risk tolerance. This is just as much a matter of lack of financial knowledge as it is a statement of fear and anxiety surrounding investing during uncertain times.

Putting a buffer in place for your emotions

The unfortunate reality is that we are not all rational beings when it comes to our financial decision making. Emotional decision making and our own innate biases lead to what is often referred to as the “behavior gap.” The behavior gap has been demonstrated through Dalbar’s Quantitative Analysis of Investor Behavior (QAIB) studies, which consistently show that average investors tend to earn below average returns.

The best way to avoid having your investments become a victim of your own emotions is to have an investment policy statment (“IPS”) in place, and to commit to referring to it any time you feel like straying from your plan. This can also help you to establish your plan in the first place.

What is an investment policy statement (IPS)?

An investment policy statement is a written document that defines how an investment portfolio should be managed. It typically includes details about investment objectives, potential investment strategies (active vs. passive management), risk tolerance, types of investment asset classes, selection criteria for investments, and monitoring and rebalancing procedures.

The main purpose is to make sure guiding policies and principles are in place during moments of uncertainty. This ultimately helps verify that decisions are consistent with your goals and desires.

Who needs an IPS?

Foundations, non-profits, pension plan advisors, and institutional investors generally have written investment guidelines. But according to an industry survey conducted by Russell Investments, 61 percent of financial advisors in the U.S. do not create a written investment policy statement for their clients.

The percentage of investors without a written plan who do not receive some type of professional guidance is likely much higher compared to those with financial advice. This is a concern because the burden for achieving important life goals such as retirement or funding a child’s education rests squarely on individuals.

It’s probably not too surprising to see Financial Finesse’s research indicates that only 46% percent of investors are confident that their investments are allocated appropriately. In short, everyone needs an IPS.

Perhaps more important for a DIY investor

Perhaps the key is to avoid thinking that an IPS is just for professional investors or those who love paperwork. In fact, the IPS is just as important for the DIY investor as it is for those who are working with a trusted advisor. It is also a working document and not just another financial statement to file and forget.

How to create your own IPS

If you do not already have a written set of guidelines for your portfolio, you should go ahead and put your investment plans in writing. (Check out the Morningstar worksheet and statement templates if you are looking for a basic template to create your statement.)

Keep it simple

It’s important that you don’t get lost in the details because simple is okay as long as you have some general guidance in place. If you find this IPS discussion a bit too heavy for your personality, you can always complete a basic IPS by taking the note card approach to writing down your investment plan. In any case, here are some important questions that an investment policy statement will address by category:

Answer the following questions:

Investment Objectives

What are your financial goals?
What is your time horizon for funding this goal?
How much will you need to fund the goal each year?

Investment Philosophy

What is most important to you as an investor?
What is your comfort level for risk?
What are your allowable asset classes (stocks, bonds, etc)?
What is your target asset allocation mix?
How much of a loss are you comfortable with over various time frames (1 month, 1 year, 5 years)?
Do you have any special tax considerations?

Portfolio Monitoring and Review

How much do you intend to invest each month?
What is the expected rate of return for the portfolio?
Are there any upcoming withdrawal and deposit expectations?
What are the benchmarks for the portfolio (DJIA, S&P 500, Russell 2000, MSCI EAFE, etc.)?
How often will you review your investment plan?
Will you take advantage of automatic contribution rate escalator features in your 401(k)?
When will you re-balance your portfolio?

Keeping your IPS up-to-date

Next time you review your investment performance, take a few moments to review your investment policy statement. An IPS may not guarantee that we won’t succumb to the urge to make an impulsive investment decision during the next significant market downturn (or period of irrational exuberance). However, a policy-driven investment plan can help you stay focused on your big picture financial plans rather than simply react to emotions and current events.

How Golf Can Help With Your Finances

May 23, 2018

With a busy work schedule, two incredible kids (a.k.a. “the monsters”), research and writing obligations, there isn’t too much time in my life for golf these days. But as I prepare to join my buddies for our annual Memorial Day golf outing this weekend, I’m hoping I’m not too rusty. While daydreaming about hitting the golf links for what Mark Twain referred to as “a good walk spoiled,” it dawned on me that the game of golf has many parallels to managing our personal finances.

Goal setting

It is essential in golf (or any other important endeavor) to set realistic goals. I used to play regularly to a five handicap when I was a card carrying member of the “DINK” society (Dual Income No Kids). My goal during those days was generally to try and shoot in the 70’s – not pro material but not too shabby either. Now since I only play about five to six rounds a year, I am just trying to shoot in the mid- 80’s. Priorities change and I have adjusted my expectations to the reality that I shouldn’t expect to immediately return to my previous form.

This is also true with managing our personal finances. It is important to set “SMART” and realistic goals. This makes the financial part of our lives more relevant and is the first step on the path to success.

Practice, patience, and persistence

Perhaps the biggest similarity between the game of golf and our financial lives is the need for practice and effective routines. The best golfers develop their swing and mental toughness with a never-ending process of hitting balls on a range and they use strength and training programs to support their swing development. I realize that I will not get back to the good old days of golf anytime soon but over time and with some practice, it is a real possibility.

As our financial lives develop, we need to develop routines and discipline to help simplify how we manage our money too. From routine budgeting and paying ourselves first to automatic savings programs and debt reduction strategies, it is possible to simplify our financial lives by creating habits.

We might not always get things right the first time, but just like weekend golfers get an occasional “mulligan” from their buddies, we should all take advantage of a second chance to get our personal finances in order – no matter how far off the beaten path we may have ventured.

Tracking progress over time

Whenever I do decide to start taking my golf game seriously again, it will be important for me to track my scores and see how I am progressing over time. This will help with motivation and let me know when I need to adjust my training routine. Golfers can track their progress using a handicapping system or by simply saving old scorecards.

Proper tracking is required when taking financial life goals seriously too. Goals should never be set and forgotten. Here are some suggestions to track your financial progress:

Track your net worth on an ongoing basis using a financial organizer.
Review your investment portfolio and track how your investments are doing in comparison to appropriate benchmarks.
Review your risk tolerance on a regular basis and as your life goals or circumstances change.
Re-balance your investments on a regular basis.
If you are working on paying off debt, make sure you are getting there the quickest way possible by using a DebtBlaster calculator.
Check your credit history. Order a free copy of your credit reports every 12 months from annualcreditreport.com and use services such as creditkarma.com and freecreditscore.com.

Rewarding yourself

The game of golf can be frustrating to both beginners and veterans of the game. Whether the obstacles are lakes, creeks, sand, or my unorthodox swing, there are potential setbacks around every corner of the golf course. The best approach is to prepare for them and minimize their effects.

However, it does come with some rewards to make up for all the lost balls and broken clubs. It is a great way to get outside and enjoy exercising (especially if you decide to walk the course like I do), nature, the sound of the ball rattling around the bottom of the cup after a perfectly aligned putt, the camaraderie of spending time with friends after a round, or signing a card knowing you just reached a personal best.

The same is true with managing personal finances. Whether the potential obstacles are taxes, inflation, economic uncertainty, health care costs, or paying for my kid’s college education while balancing the need to save for retirement, there are ways to prepare for obstacles without letting them paralyze you with fear.

Long-term goals also take time to achieve and sometimes it helps to have a little reinforcement along the way so managing our personal finances should include some built-in rewards for progress. The next time you review your family’s personal spending plan (a.k.a. “budget”) or pay off a credit card balance in full, be sure to reward yourself a little.

Golf is similar to financial planning in that they both require goals, practice, patience, and persistence. Of course, they can also both be frustrating at times. But with the right attitude, consistent routines of good habits, and proper guidance from coaches, a path to success can be established.

A version of this post was originally published on Forbes

How To Decide If You Need Umbrella Liability Insurance

April 18, 2018

In today’s extremely litigious society, it’s not usual to hear stories of people suing other people for things like injuries, property damage, medical costs or even for libel and slander. It’s also not uncommon to hear how that process often leads to the defending party declaring bankruptcy, sometimes for a thing that they had insurance to cover, like a car accident. It wasn’t because the person didn’t have insurance, it was because they weren’t adequately insured with the right type of insurance.

I used to think that umbrella insurance was only for rich people who had a lot of investments to protect, but I’ve reconsidered. With pre-teens who often have friends over and a rambunctious dog around the house, we are by no means swimming in money, but heaven forbid, should one of those kids get injured on our property, I want to make sure that we wouldn’t have to sell our home in order to pay for any expenses resulting.

What umbrella liability insurance covers

Umbrella coverage is an often-underutilized type of insurance that covers you in case of a lawsuit that exceeds the regular coverage provided by your automobile, homeowner’s, or renter’s policies. Umbrella insurance also provides coverage for claims that may be excluded by other liability policies related to issues such as false arrest, libel, slander, and liability coverage on rental units you own.

While you may already know that the cost of this extra peace of mind is reasonable, the main point is that for around 50 cents to a dollar a day (as a very rough average), umbrella or excess liability insurance, kicks into effect when the protection from your regular policy is completely exhausted.

Above and beyond your standard coverage

For example, while your homeowners or renters insurance policy might provide liability protection of up to $300,000, an umbrella policy can add between one and 10 million dollars of extra protection. In this highly litigious world, it’s not unusual for settlements and legal costs to exceed that $300,000 figure.

A common myth is that umbrella insurance is only for the super wealthy. The somewhat eye-opening reality is that if your assets (including retirement accounts and, in many states, your home equity) and your future income exceeds the liability limits on your auto and renter’s or homeowner’s policy, you could have major problems should you ever end up being faced with a major lawsuit. It is not inconceivable for middle-class families to lose almost everything and even have their wages garnished to satisfy a lawsuit arising from a serious car accident, freak injury at their home, or accusation of libel or defamation of character. Even if you win the lawsuit, an umbrella policy can help recover some of your legal costs.

Are you at risk?

There are certain situations or life circumstances that could put you at a higher risk. Here are two ways to evaluate your potential need for umbrella coverage:

If you own a dog, have a pool, have a trampoline or other playground equipment, or have a teenage driver in the household you may be at a higher risk due to higher risk for accidents or injury on your property or on your watch.
Ownership of assets such as a primary residence, retirement accounts, brokerage accounts, vehicles, boats and recreational vehicles are also at risk, so if you have a lot of stuff, you will want to protect these assets with an umbrella policy.

Finding coverage

To learn more about umbrella policies and to get a quote, a good place to start is by reaching out to your home and auto insurance agent — there are often discounts for bundling policies. You may also want to check any professional organizations or clubs you belong to. For example, my college alumni association is always sending me promotional material for a group policy discount offered to all alumni. You may also want to check with your HR to see if there is a discount program offered to employees that you can sign up for during open enrollment.

Insurance may not be the most exciting topic and contemplating the need for it can be downright depressing, but ignoring it can leave you or your family in dire straits. So do your family a favor this spring and make sure you’re properly insured.

What A Financial Coach Hopes To Teach His Kids About Money

April 10, 2018

My family and I just returned from an amazing vacation, which has me reflecting on some of the major life lessons that I have been trying to teach my children. As a financial planning professional, many of these life lessons have a financial theme, but the most impactful money lessons are really the ones that are about life – not just “getting through life” or “trying to make ends meet” though. I’m talking about living a life of purpose and meaning.

“If a person gets his attitude toward money straight, it will help straighten out almost every other area in his life.” –Rev. Billy Graham

This is a simple yet powerful quote that stresses the importance of having a proper mindset when it comes to managing personal finances. Here are a few lessons that I’m trying to communicate to my children as they continue to learn and grow.

True financial wellness requires action

Financial wellness is more than just a feel-good buzzword/phrase. It’s where financial education and action meet to produce real results. Financial wellness requires knowledge and action with the end result being a positive sense of well-being backed up by actual financial behaviors that help us instead of create stress. No matter what my children are trying to accomplish in life, I want them to take action and always feel empowered to change their circumstances and the lives of others in a positive manner.

Countering harmful money beliefs

Money isn’t the root of all evil. This is a potentially harmful money belief that is often based on a distorted view of personal or family experiences. Stories of corporate greed, financial fraud, and other money-related wrongdoings help perpetuate this belief.

The reality is that “love of money” is the problem, and financial avoidance is not the solution. I don’t want my children to ever forget to express gratitude for their financial blessings, but I also don’t want them to forget their duty to be good stewards of their future resources. A healthier but not obsessive focus on money matters is needed in this day and age where money remains a taboo topic for many.

It’s not about luck

Wealth doesn’t require luck. Where are the real role models anymore? Pro athletes, musicians, and actors dominate most of the news cycle and trending social media feeds. This isn’t anything new, but what is alarming to me is the idea that wealthy individuals somehow accumulated their riches by luck or greed.

Now I realize that we occasionally hear about the Bernie Madoffs of the world who cut corners or the lottery winners that hit the jackpot. But the Millionaire Next Door is more likely to have achieved his or her success through hard work, persistence, trade-offs, and having a dream they were willing to turn into an actionable plan. I want my children to realize that it’s true that some people have more obstacles to overcome in life. However, your background doesn’t guarantee future success nor does it predict certain failure.

Never judge your success or status in life through financial measures

Perhaps the greatest lesson that I want to convey to my children is that their own determinations of successes or failures in life should never be assessed by their income or net worth statement. This sounds like such a simple concept, but I’ve met too many pre-retirees that were financially prepared to leave the workforce but lacked purpose and meaning in their lives because they were too focused on accumulation rather than living a life.

Experiences matter more than stuff

I want my children to enjoy spending time with me as their dad and mentor and not focusing on just spending time with their stuff. This applies to me as well. If I decided to be too product-oriented as a parent, that could be sending some negative messages to the people that I care about the most.

This doesn’t mean that we cannot enjoy some creature comforts that make life enjoyable. But it does mean that there always needs to be balance, and I want my children to value time more than the things that could rob me of that valuable time with them. As a result, we make sure our spending plan prioritizes those summer camp experiences as well as family vacations and plenty of staycations.

Avoid debt if at all possible

Never let debt become your master. The average American household has over $130k in debt. Among households carrying credit card balances, the average debt is $15,762.

Borrowing makes sense in so many situations, yet the struggle is real for those who are having trouble making ends meet because they are over leveraged. What’s the joy in busting it at work all day just so you can keep up with credit card bills, auto loans, and mortgage payments on a lifestyle you couldn’t afford in the first place? For my own children, I will constantly guide them to challenge the status quo and never become a slave to debt.

Remember that your current circumstances aren’t forever

It’s not surprising that retirement preparedness research suggests negative debt attitudes are related to decreased retirement confidence and lower overall financial wellness. More immediate consequences of debt can be seen in the eyes of recent graduates who are entering their post-grad lives feeling burdened by their loans. Many are delaying future life goals such as marriage or buying a home based in part on debt concerns. My advice to them is to not allow your current circumstances to create a sense of stagnation in life. Believe you can make real change happen and explore all alternatives to take financial action that will move you beyond the current situation.

Money is simply a tool

In my professional role as a financial planner, you may be a little surprised to hear that I do not enjoy talking about money. I guess that I better clarify that I frankly don’t get pleasure out of just talking about money, but I do enjoy discussing ways to integrate money decisions into lives in a way that gives financial resources more purpose and meaning. Money does create opportunities, but ultimately you have to decide how to use it in your life. You can either become a wealth accumulation tool in pursuit of money or allow your wealth to do incredible things for yourself and others.

Keep the big picture in mind

Always dream beyond your current financial or life circumstances. I’m working with many individuals and families that are dealing with some major obstacles on the path to financial freedom. My message to them is the same that I try to convey to my own children. Don’t ever give up.

No matter how good or bad your current financial status may seem, it is essential to look ahead and plan for the future. Live in the moment, plan for the future, and thrive. It’s that simple.

A challenge for parents

As you consider the money lessons you’d like to teach your own kids, I suggest asking yourself the following question:

What message am I sending the people that I care about most?

Asking these types of questions as early as possible during parenthood may be the key to set up the next generation for a true path to financial wellness that is based on a solid foundation.

How To Use Tax Time To Proactively Plan Ahead

March 30, 2018

Whether you are still trying to get your tax information organized to meet this year’s income tax filing deadline or using this time of year as a proactive start to your tax planning efforts based on the new tax law, here are a few tips to help make the most of that time.

When you’re not sure about DIY software vs. using a tax pro

Online tax preparation software is relatively inexpensive and fairly easy to use if you take the time to go through the step-by-step guidance and Q&As — which one is best is open for debate in our industry. However, the key is that you have to be committed to getting it right — if you are more interested in finishing your return than finishing it accurately, your tax software may create a “garbage in, garbage out” situation according to my colleague Greg Ward.

How you should do your taxes generally depends on the complexity of your financial situation and the amount of time you are willing to devote to trying to complete your return on your own. If you are not sure if you are cut out to prepare your own returns with some guidance, check to see if you qualify for free income tax preparation services (generally for lower income people) or at least kick the tires and give online tax preparation software a free spin. Most tax software packages allow you to start for free and do not require payment until you are ready to file.

If you know you want to use a tax pro, check out these tips from my colleague Kelley on finding one in your area.

When you’re worried about being able to file on time

When time is running out to stay off of Uncle Sam’s naughty list and complete your income tax returns prior to the April deadline, the good news is that you can request a six month extension to wait until October to file. The most important thing to know here is that while you can push back your filing deadline, you still have to pay any taxes due by the April deadline. Expecting a refund? You’ll have to wait until you file to get that… If you’re not sure what you’ll have due, you’ll have to do your best to estimate — any underpayment will be subject to interest and penalties.

I have worked with many people that need the extra time to overcome the procrastination demons or simply pull together financial records for rental properties, investments, and small businesses. Some small business owners even use those extra six months to allow for more time to set aside money for last minute SEP IRA or other self-employed retirement plan contributions. If you decide to extend, you do have to file a Form 4868 to let the IRS know that you’re on it.

When you need last minute tax-savings tips

If you find yourself owing for the year and want to find a few ways to reduce the balance due, there are some steps you can take, although you’ll have to come up with more money in total.

Contributing to a deductible IRA is an option if you are working but not covered by a qualified plan (like a 401k) at work or if you are participating in a plan and have income below certain limits.
If you have a nonworking spouse under age 70 1/2 and enough earned income, you can make a deductible contribution to a spousal IRA too, subjected to higher income limits.
Health savings account (HSA) contributions are another excellent way to save on taxes today and for health care expenses now or later in life if you are covered by a high deductible health plan, assuming you didn’t max out your contributions for the prior year already. Remember that if you are age 55 or older, there is an additional $1,000 catch-up contribution beyond the annual limits.
Contact your HSA custodian to see how to make your contribution via direct deposit and verify that it is assigned as a previous year contribution — you don’t have to do it through payroll.
For both IRA and HSA contributions, the April deadline still stands even if you file an extension, so be sure to take action soon.

When you want to get to owe/refund: $0

It is essential to go beyond focusing on the amount you overpaid or the amount you owe on IRS Form 1040 when trying to get both numbers to zero. Determining if you are on track to receive a tax refund or will end up owing the IRS in the current year is a good place to start with a proactive income tax plan.

Update your paycheck withholdings

In order to make changes to your withholding, you will need to fill out a new Form W-4 and provide this form to your payroll department. However, prior to making any changes to the W-4, you might want to review the IRS withholding calculator to estimate the correct withholding for you and your family’s situation. If you are looking for a second opinion or just want to double check your entries, try the TurboTax W-4 withholding calculator.

When you want to reduce your taxes for the current year

Filing your tax return should not be the end of your tax planning efforts but should mark the next step in your current year plans. This process of planning ahead requires a quick assessment of where you stand today. To get started with your income tax planning, take some time to get your important financial documents together. Organize your financial statements and have a copy of your most recent tax return on hand.

Maximizing all tax savings options

Remember that the goal should not be to just “get it right” in the eyes of the IRS or just minimize the amount of taxes owed. You will still want to make sure you maximize all potential tax exemptions, deductions, and credits but also consider reallocating investments in taxable accounts to more tax-efficient options. Plan ahead so you can contribute as much as possible to your employer’s retirement plan, IRAs, HSAs, and possibly 529 college savings plans.

Give with purpose and meaning to charitable organizations with an added bonus of tax benefits from Uncle Sam for your good deeds. If you start the planning today, you will not have to scramble at the end of the year to find last minute techniques to lower your taxes.

A final word about tax planning

Whether you prepare your taxes using tax preparation software or use the help and guidance of a tax preparer, you should review your tax return and look beyond the bottom line of owing money or getting back a refund. Be sure to make a note of anything on the return that you do not completely understand and use it as motivation to educate yourself about these specific items. The more familiar you become with the information that appears on your tax return, the better positioned you will be to plan to minimize your taxes in the future.

Are Your Money Beliefs Holding You Back?

March 12, 2018

If you are looking to improve your financial wellness, it is important that you are aware of the role your financial attitudes and beliefs have in shaping your future. These beliefs help explain key differences between savers, spenders, and people who try to avoid money matters completely. They can be extremely stubborn and are difficult to change since they can become a part of our ongoing “money script” or life story that follows our financial behaviors.

Financial wellness starts early in life

Drs. Brad and Ted Klontz used the term “money scripts” to describe financial beliefs that are often developed early in life and are frequently passed from one generation to the next. No matter where you are on the journey to reach your financial life goals, it’s always helpful to be aware of your past experiences with money whether they were positive or negative. Take a moment to answer these simple questions:

What are some of your earliest money-related memories and experiences?

Was money a frequent source of arguments or was the topic often avoided?

What are your current “money scripts” or financial belief patterns?

Four types of money beliefs

According to research performed by Dr. Brad Klontz and Dr. Sonya Britt, professors at Kansas State University, three out of four primary money beliefs (money avoidance, money status, and money worship) are linked to potentially destructive financial behaviors. For example, these patterns of money beliefs have been associated with having lower levels of net worth, lower income, and higher amounts of revolving credit. The other money belief, money vigilance, was not linked to problematic financial behaviors.

Do you identify with any of these money beliefs?

In general, money avoiders tend to view money as negative and a source of fear, anxiety, or disgust and often have beliefs that wealthy individuals are greedy. Money avoiders think that they don’t deserve money or that money is bad and the root of all evil. In addition, they also tend to believe that it’s not okay to accumulate more wealth during your lifetime than you will actually need.

Money avoiders may experience conflicting beliefs that having more money and wealth could improve their life satisfaction, self-worth, and social status. This belief system can create a tug-of-war between feelings of contempt toward money and wealthy individuals to placing too much emphasis and value on the role of money during their life journey.

Money worshipers believe that having more money will solve all of their problems and money is the key to happiness. An associated money script is that “things will get better in life if I just had more money.” Another common belief is that the accumulation of more money will lead to increased happiness and overall life satisfaction. For the money worshiper, money is viewed as a scarce resource and there will never be enough of it. Money worshipers may prioritize work over family and social relationships.

People with money status belief systems tend to define their self-worth by their financial net worth. They also place a great deal of emphasis on buying the hottest new items with leading brand names and quality. Money is a sign of success for those with strong money status beliefs. As a result, these individuals may pretend to possess more wealth than they actually have and may overspend to provide others with an impression they have achieved financial success.

Money vigilance is typically associated with themes of frugality and people with these money beliefs tend to focus on the importance of saving, use discretion when discussing financial matters and express anxiety about not saving enough for emergencies. Money vigilant people are most likely to pay attention to their financial well-being. A common belief for the money vigilant is that people should work hard for their money and not expect financial handouts. They also tend to be more anxious and guarded when discussing money matters with people outside of their closest network of friends and family.

Do your money beliefs support your life goals or are they creating a roadblock?

Some of these money beliefs are not problematic. In many situations, they may even be encouraged. It’s at the extremes where these money beliefs can cause problems.

Money worship beliefs can lead to compulsive spending, work-life imbalances, and hoarding behaviors. These beliefs can also be associated with financial dependence, giving money to others they cannot afford to part with, and ignoring or not paying attention to one’s own financial situation.

Money status beliefs are associated with compulsive spending problems and being financially dependent on others. Money status beliefs may also lead to secret spending or financial infidelity.

Money avoiders have trouble setting financial life goals and struggle sticking to a personal spending plan or budget. This money belief is also linked with overspending and compulsive buying. Not surprisingly, money avoiders have difficulty organizing financial statements and frequently struggle discussing money matters.

Money vigilant beliefs can help provide wealth protection. But this watchful approach can also prevent you from enjoying the benefits of achieving a positive state of financial wellness.

Are your money beliefs helping support your financial behaviors or are they creating roadblocks for your financial life plan? If you are having trouble following a budget, eliminating debt, or saving, your money scripts may be holding you back. You can take this quiz, which is the Klontz Money Script Inventory (KMSI) if you want to complete your own self-assessment to examine your own money beliefs.

It’s never too late to rewrite your script

The good news is that you have the opportunity to rewrite these money scripts. While money beliefs can be passed on from one generation to another, they do not have to be permanent. Once you’ve identified your patterns of thinking about money, you can begin to examine how changing those beliefs can fundamentally improve your financial situation. Then you will truly be ready to take mindful, deliberate steps to turning resolutions of change into reality.

This post was originally published on Forbes.

Should You Be Paying Off Your Home Equity Loan Sooner?

February 27, 2018

When it comes to the new tax law, by now you have most likely already heard that the income tax brackets were lowered, standard deductions increased, and there is a cap on state and local tax deductions. But there is another major change that could have an effect on your personal finances. The tax reform law alters the ability to deduct interest on home equity loans or home equity lines of credit.

Changes to the mortgage interest deduction

The newly-enacted law places restrictions on home mortgages. The first restriction affects people who purchase a home between now and 2026 — basically you can only deduct interest paid on up to $750,000 in mortgage debt. The second part is that mortgages eligible for the itemized deduction must be used to purchase or improve it, including a home equity loan or HELOC (home equity line of credit). (Note that if you took out your mortgage on December 14, 2017 or earlier, you will still be able to deduct interest on up to $1 million in debt, but the home equity loan restriction affects all outstanding loans)

Can I still deduct my home equity loan interest?

Because of the way the law is worded, it was initially assumed by many that if you have a home equity loan or line of credit with a balance, that the interest you pay would no longer be deductible as mortgage interest. However, this may not be true in all cases — according to recent IRS guidance, in many cases you can continue to deduct interest paid on home equity loans, as long as they were used to buy, build or substantially improve the home that secures the loan.

Deductible versus non-deductible

For example, if you use a home equity loan to build an addition to your home or complete major renovations, the interest is likely deductible. But if you use a home equity loan to consolidate credit card debt or pay for your pet’s trip to the vet, you will not be able to claim the mortgage interest deduction. A loan is deductible if it is secured by your main home or second home (known as a qualified residence) and does not exceed the cost of the home and meets other requirements.

When to re-prioritize debt paydowns

If you are no longer eligible for the home equity interest deduction, you may need to re-prioritize paying it down, but it’s important to look at the big picture. Since home equity loans and HELOCs often offer lower interest rates, you first need to consider your overall financial wellness before redirecting dollars to paying down home equity debt.

Focus on this first

In general, you should have a fully funded emergency fund, save enough to capture any matching contributions in an employer’s retirement plan, and eliminate higher interest debt such as credit cards or personal loans before paying down your home equity loan or line of credit (see Financial Priority Checklist).

Making your money work hardest for you

If you already have your financial foundation in place your decision really comes down to where your money will work hardest for you. Financially speaking, your decision should be based on your after-tax cost of borrowing versus your after-tax return on your investments. If you are no longer able to deduct the interest on your home equity debt then your actual interest rate will become the main point of comparison.

However, if you have a variable interest rate you must also consider the significant likelihood of your interest rate creeping higher in the near future with the possibility of rising rates. There is also something to be said about the emotional aspect of eliminating debt. Paying off your home equity loan or HELOC ahead of schedule makes sense if it frees up cash flow to help you focus on future life goals such as paying for college or transitioning to retirement.

As you can see, a lot has changed as a result of the recent tax law reform. One thing remains the same – you must constantly review your own financial plans to see how these changes will affect you.

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Are Your Money Beliefs Holding You Back?

December 11, 2017

Have you ever stopped to take inventory of how you arrived at your current financial state of affairs? I don’t mean simply thinking about how you ended up in your career, what your net worth is or how much money you make. I’m referring to your early lessons about money that you picked up either through observation or activities during childhood and adolescence.

It starts early in life

These life experiences are often passed on from our parents or extended family and may represent overall cultural events. Money beliefs can be extremely stubborn and are difficult to change since they can become a part of our ongoing “money script” or life story that follows our financial behaviors. No matter where you are on the journey to reach your financial life goals, it’s always helpful to be aware of your past experiences with money whether they were positive or negative.

Four types of money beliefs

Money beliefs play a major role in guiding your current and future financial behaviors. These beliefs help explain key differences between savers, spenders, and people who try to avoid money matters completely. According to research performed by Dr. Brad Klontz and Dr. Sonya Britt, professors at Kansas State University, three out of four primary money beliefs (money avoidance, money status, and money worship) are linked to destructive financial behaviors. The other money belief, money vigilance, was not linked to problematic financial behaviors.

Which are you?

Generally speaking money avoiders tend to view money as negative, think the wealthy are greedy, and that they don’t deserve money.

Money worshipers believe that having more money will solve all of their problems, money leads to power and life satisfaction, and money is a scarce resource and there will never be enough of it.

People with money status belief systems tend to define their self-worth by net worth and place a great deal of emphasis on buying the hottest new items with leading brand names and quality.

Money vigilance is typically associated with themes of frugality and people with these money beliefs tend to focus on importance of saving, use discretion when discussing financial matters and express anxiety about saving for emergencies.

Are your beliefs a support or roadblock?

It’s never too late to rewrite your script

The good news is that you have the opportunity to rewrite these money scripts. By learning what your belief system is, you can begin to examine how that may translate into your financial situation, then take mindful, deliberate steps to change.

Want more helpful financial guidance, delivered every day? Sign up to receive the Financial Finesse Tip of the Day, written by financial planners who work with people like you every day. No sales pitch EVER (being unbiased is the foundation of what we do), just the best our awesome planners have to offer. Click here to join.

The 6 Step Estate Planning Checklist

September 07, 2017

Estate planning is an essential part of the financial planning process. Yet, it is often the most overlooked element of a basic financial plan. Only 4 out of 10 adults have wills and trusts in place. But an estate plan is so much more than that.

You may be thinking you don’t need to worry about this because you don’t have an “estate,” or you’re too young to worry, or you don’t want to pay for the necessary documents, or that simply thinking about estate planning will somehow alter the universe in a way that speeds up your checkout date on Planet Earth.

I understand. There are far more pleasant things to think about than death and dying. In fact, I used to think the same thing until that life changing event occurred about a dozen years ago – my wife and I found out we were expecting a child.

What’s your “aha moment?”

The birth of a child is a common “aha moment” that can trigger a desire to get your estate planning affairs in order. But it’s not the only one. Other life events could be the death of a loved one, legacy planning after accumulating wealth, or health concerns that create a need to make sure you have somebody there to make important decisions on your behalf.

But really, don’t be like me. You shouldn’t wait for some major life change to spark the need for an estate plan. That’s because the word “estate” can be misleading when it comes to this type of financial planning.

Estate planning deals with more than just who gets your stuff when you die and doing it properly can save your family and friends a lot of headaches should your time come too soon. Unfortunately, most people mistakenly think they need to have a family or significant wealth for an estate plan to matter. That’s not true, it matters even for single people who never plan to marry or have kids.

Here is a simple estate planning checklist to help get you started.

Step 1: Determine what matters to you. You can start creating your estate plan by establishing meaningful goals. Here are some important questions to get you started:

What do you want your estate plan to accomplish?
Are you concerned about choosing an executor to follow through on your final wishes?
Do you need to name a guardian for your children?
Is charitable giving in your current and/or future plans?
Are you seeking ways to avoid probate?

After you’ve established the “why” behind your estate planning, take action and avoid the dreaded procrastination monster. This can shelve your plans for months (or years) unless you commit to sticking with a few personal deadlines. You can use this Personal Estate Planning Worksheet to help you get organized and write down some of your goals.

Step 2: Get organized and assess your overall financial situation. It never hurts to focus initially on your total financial wellness. Part of this process could involve completing a net worth statement that includes a list of your assets and liabilities. Creating a summary of your financial resources puts you in a better position to determine where you stand. It also helps you start thinking about who you want to eventually receive your assets after you pass away.

Step 3: Have basic estate planning documents created. This is where your estate plan gets transitioned from good intentions to an actual plan. The important documents below will allow you to state your wishes for how to distribute assets when you die. You also can use wills to name guardians for your children.

You can also decide who you want to make important financial or medical decisions if you are ever unable to make them yourself. These documents should usually be part of every estate plan:

Step 4: Determine if you need advanced planning strategies. Life can get complicated. If your living situation has a few complications due to divorce, you have a loved one with special needs, or you have concerns about heirs’ ability to manage wealth, you may need to use a document which gives you more control. Trusts are legal arrangements that allow you to determine how and when property is distributed to your heirs. In certain situations, a trust may be necessary to maintain even more control over the distribution of your estate. If funded properly, many trusts can also help you avoid probate (wills are subject to probate).

Step 5: Update your beneficiary designations and title assets appropriately. Many people think that once a will has been created that their estate planning work is done. That’s far from the truth, especially considering the fact that the will only controls the distribution of assets that are subject to probate, which is the formal process of paying off debts and distributing property. Depending on the state you live in, probate can potentially be an expensive and time-consuming process.

Keep in mind that not everything transfers through probate, including your 401(k) or any IRA accounts you have. Therefore, it’s important to identify assets that do not pass to others by will. These are often called will substitutes and include any accounts with beneficiary designations such as insurance policies, retirement plans, IRAs, and annuities. Any jointly owned property or accounts bypass probate as well as accounts designated as payable on death (POD) or transfer on death (TOD).

Step 6: Find a professional or DIY approach to put your plan into effect. Not sure where to turn for help in creating your important documents? See this guide on How to Choose an Estate Planning Attorney. You may also check with your employer to see if they provide a prepaid legal service or free online document preparation.

If not, sites like LegalZoom and Nolo provide online tools to help get these documents created, which is important if you are concerned about the costs of hiring an attorney or have a fairly straightforward plan. Just remember that if you don’t have these important documents in place you still have an estate plan—it just happens to be a plan based on the intestacy laws of your state and probably isn’t how you want your stuff to go.

Estate planning may not seem like a top priority, but it is an important aspect of every complete personal financial plan. It’s also a great way of aligning your financial decisions with your life goals and the things that matter the most to you. That’s why it’s necessary to personalize your goals and create a basic plan to protect the people, organizations, and things you care about the most.

A Few Last Words

November 30, 2015

It’s amazing how fast time flies but today marks my final appearance as a weekly blog contributor for Financial Finesse and you will have a new voice who will communicate her passion about financial wellness topics. I’ll still be here at Financial Finesse doing that financial wellness thing that I do along with conducting some research and continuing education for other CERTIFIED FINANCIAL PLANNER™ professionals. I will also occasionally make some guest appearances here on the Financial Wellness@Work blog, but you can still follow my Forbes contributions and my new role as the retirement planning expert writer for About.com. I may even be able to complete writing another book tentatively titled Live, Plan, Thrive by the end of 2016. Continue reading “A Few Last Words”

Meet Brian Kelly, Money Coach

November 23, 2015

I recently had the chance to sit down with Brian Kelly, CFP®, an expert “money coach” and one of our more recent additions to the financial planner team and the Think Tank at Financial Finesse. I asked him a series of questions designed to find out more about how he became interested in joining our group of financial planning professionals who are committed to providing unbiased financial guidance to employees in the workforce. Here is a summary of our discussion with some unique insights about how an experienced financial planner uses an unbiased perspective to help others learn how to take control of their financial future: Continue reading “Meet Brian Kelly, Money Coach”

Will You Still Need Life Insurance When You Retire?

November 16, 2015

Many important decisions must be made as you approach retirement. How much income will you need?Are you on track to retire? How much will your health care cost? What are the best investment options? Continue reading “Will You Still Need Life Insurance When You Retire?”