A Word of Caution

It’s important to understand a few things upfront. First, there are several types of standard homeowners policies, and each provides different coverage. What’s more, even policies of the same type often don’t provide exactly the same coverage. Another key point: To say that you’re covered for something doesn’t always mean that you’re fully covered. Out-of-pocket deductibles typically apply to the dwelling and personal-property portions of your policy, and every part of your policy is subject to coverage limits. Losses that exceed these limits must be paid out of your own funds.

Home Coverage

Are you covered if…?

• Lightning strikes a power line leading to your house and starts a fire?
  Yes. Fire damage is standard coverage.
• A delivery truck careens off the road and smashes into your house?
  Yes. Damage from vehicles is standard coverage.
• A pipe bursts in your cellar and covers your downstairs room with water?
  Yes. Water damage from burst pipes is standard coverage.
• A huge gust of wind blows a tree onto your house?
  Yes. Windstorm damage is standard coverage in most parts of the country.
• A repairperson damages your walls and ceilings?
  Yes. It doesn’t matter who caused the damage.
• The river behind your house floods, and you have water damage?
  No. Flood protection requires separate insurance. So does earthquake coverage.
• Your house slides down a cliff?
  No. You need separate insurance to protect against this.
• Mice infest your home and chew up your insulation?
  No. The same exclusion applies to infestation by insects and other pests.
• The market value of your home plummets?
  No. Market value has nothing to do with insurance, which is based on replacement cost.
• A house that you haven’t lived in for months is vandalized?
  No. To be covered, the house can’t have been vacant for more than 30 days.
• You need to upgrade your home to meet local building codes?
  It depends. You may need an optional endorsement for this.
• Your home is damaged by water coming in from backed-up sewers?
  It depends. This coverage may also require an endorsement.

Personal Property

Are you covered if…?

• A wild animal gets into your house and rips apart your upholstery?
  Yes, unless the animal is a rodent or a pet of yours. If the rodent or pet causes a fire, you’re covered for the fire damage.
• A thief breaks into your home and steals your stereo, jewelry, and the family silver?
  Yes, but keep in mind that separate coverage maximum limits apply to some types of personal property.
• Your golf clubs are stolen from the trunk of your car?
  Yes (even though the theft occurred off your premises), but you may not receive the full replacement value.
• Your wardrobe is ruined by the smoke from a fire?
  Yes. Clothing falls under personal property coverage.
• The power goes out on your block, causing the food in your refrigerator to spoil?
  Yes, under most policies ($500 is a standard limit).
• The laptop computer that you use for your home business is stolen?
  No. The laptop would be covered only if it were for personal use at home.
• Your boat is damaged in a storm?
  No, unless it meets the requirements for a “small-motor” boat. Boats generally require separate insurance.
• Your central air-conditioning breaks down in the middle of summer?
  No. Homeowners insurance doesn’t cover heating, cooling, and plumbing systems or home appliances for simple breakdown. If they are damaged by a covered peril, such as fire, they are covered.
• A repairperson scratches up your furniture?
  No, in most cases. Damage to your personal property is usually covered only when it’s caused by a named peril (e.g., fire or vandalism).
• A company dumps toxins into the creek that runs through your yard?
  No. The company that did this would be responsible for the cleanup bill and other damages.
• Your fine art collection is stolen?
  It depends. In many cases, you need a special endorsement to cover valuable art and antiques.
• The movers you hired damage your belongings?
  It depends. Some policies will cover insured property during a move. Otherwise, you need separate transit insurance.

Your Liability

Are you covered if…?

• You accidentally leave your boots on the front step, and your invited neighbor trips over them, breaking her hip?
  Yes. This is a straightforward liability question.
• You accidentally run your shopping cart over a man’s foot at the grocery store, breaking his foot?
  Yes. Your liability coverage protects you off your premises as well as on.
• Your son hits a baseball through your neighbor’s window?
  Yes, as long as your son didn’t break the window on purpose.
• Your dog bites a passerby on the street?
  Yes. However, many insurers will cover you only for a certain number of dog bites (in some cases, only one).
• After an accident at your home, the injured party brings a lawsuit against you, and you’re saddled with legal fees?
  Yes. Most homeowners policies cover the costs of defending you against lawsuits.
• A client is injured by falling boxes in your home office?
  No. Separate liability coverage is needed when you run a business out of your home.
• You’re renting out part of your house, and your tenant’s stuff is stolen from the premises?
  No, and you’re not liable, either. Your tenant needs renters insurance to protect his or her belongings.
• You beat up someone who insulted your wife?
  No. Homeowners insurance does not cover liability arising from injuries you have intentionally caused.
• You throw a rock at a squirrel and it hits and injures a neighbor?
  Yes, because even though throwing the rock was an intentional act, you didn’t mean to hurt your neighbor.
• You swing the sail on your boat and accidentally hit your passenger with it?
  No. Homeowners insurance does not cover liability arising from the use of boats and watercraft.
• You accidentally run someone over while driving down the street?
  No, because your auto insurance would cover your liability in a case like this.
• A tree falls from your yard into your neighbor’s yard, breaking his fence?
  It depends. Your neighbor’s insurance would generally cover damage to his own property. However, if you were negligent (e.g., your neighbor told you the tree was dying, and you did nothing), you’d have to turn to your own liability coverage.

If something just happened and you need to know if you’re covered, you should immediately call your insurer or agent or take a look at your policy. But if you’re simply wondering what’s covered (and what’s not) for future reference, you might start by familiarizing yourself with some real-life scenarios.

If you’re curious about your insurance needs or emergency funds, our experts at Choice Wealth would love to meet with you.

Important Disclosures:

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal professional.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

This article was prepared by Broadridge.

LPL Tracking #1-738016

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What is An Internal Audit?

An internal audit is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It evaluates a company’s internal controls, corporate governance, and accounting processes to ensure compliance with laws and regulations and maintain accurate, timely financial reporting and data collection.

Internal auditors are hired by companies and work on behalf of their management teams to provide them with the tools necessary to achieve operational efficiency by identifying problems and correcting lapses before they are discovered during an external audit.

Types of Internal Audits

There are several types of internal audits, each with a specific focus and purpose. Here are the main types of internal audits that business owners should be aware of:

1. Financial Audits
   Financial audits focus on the accuracy and completeness of a company’s financial records, reports, and statements. They aim to ensure that financial transactions are recorded correctly and financial statements are prepared in accordance with generally accepted accounting principles (GAAP) or other relevant accounting standards. This type of audit helps in detecting fraud, errors, and misstatements that may affect the company’s financial health.
2. Operational Audits
   Operational audits examine the efficiency and effectiveness of a company’s operations, including the use of resources, adherence to company policies and procedures, and the achievement of organizational goals. These audits aim to identify areas of improvement in processes, systems, and controls and provide recommendations for enhancing productivity, reducing costs, and improving overall performance.
3. Compliance Audits
   Compliance audits assess whether a company is adhering to the applicable laws, regulations, policies, and industry standards. These audits are essential for minimizing legal and regulatory risks and ensuring that the company operates within the boundaries set by various regulatory authorities. Compliance audits can cover a wide range of areas, such as labor laws, environmental regulations, and tax compliance.
4. Information Systems Audits
   Information systems audits evaluate the reliability, integrity, and security of a company’s information technology (IT) systems, infrastructure, and data. These audits help to identify vulnerabilities, assess risks, and ensure that the company’s IT systems are adequately protected against potential cyber threats, data breaches, and system failures.
5. Fraud and Investigative Audits
   Fraud and investigative audits focus on detecting and preventing fraudulent activities within an organization. These audits may be triggered by suspicious activities, whistleblowers, or routine analysis of company data. Auditors in this area specialize in identifying the signs of fraud, investigating the circumstances, and recommending actions to prevent recurrence.

Your Business Matters

Internal audits are vital for businesses, as they help ensure compliance with laws and regulations, maintain accurate financial reporting, and improve operational efficiency.

As a business owner, by conducting regular internal audits, you can proactively address potential issues and create a strong foundation for your company’s continued success. We would love to assist with your business’s audits. Give a team member a call today!

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

This article was prepared by FMeX.

LPL Tracking #1-05370931

The post Which Internal Audit is Best for Your Business? appeared first on Choice Bank.

One of the most challenging aspects of investing involves matching your tolerance for risk with your investment objectives.

Beyond Your 401(k)

Have you taken the time to really project the amount of money you may need in retirement? While setting aside a percentage of your income in a 401(k) is an important step, chances are you will need more than the current limitations may allow you to save. Most people supplement their employer-sponsored retirement benefits and Social Security income with personal investments. In order to develop a fitting plan, you need to have your goals in sight.

In 2025, your elective deferral (contribution) limit for your 401(k) is $23,500. If you’re age 50 or older, you may save an additional $7,500. While the contribution often rises in upcoming years and your employer may match contributions above this limit, will your employer-sponsored plan allow you to save enough? Cast your net as far as possible — can you contribute to your 401(k) and afford to invest in other opportunities? Increasing your savings rate now may help you later.

Asset Allocation and Diversification

Are you an aggressive, moderate, or conservative investor? Your answer probably depends in large part on your stage in life and your financial resources, and will most likely change over time.

Aggressive investors tend to have a longer time frame—as many as 35 years or more to save and invest until they reach retirement—and a greater capacity to withstand loss. For example (the following percentages will vary greatly by investor and their definition of the terms aggressive and conservative investments), stocks may account for 85% of a relatively aggressive portfolio compared to 40% for a more conservative portfolio. As investors near retirement, their asset allocation strategies generally change to account for lower risk tolerance and an emphasis on income over growth.

With a 401(k), you become responsible for managing your portfolio, not your employer. While one aspect of a retirement savings plan is investing for the long term, it is still important to stay involved and make adjustments as needed. Choosing to be an active money manager rather than a passive investor can help you maintain the appropriate allocation strategies and pursue your long-term goals.

Remember that it may be important to diversify within asset categories. For example, spread your equity investments among large-cap, mid-cap, and small-cap stocks, as well as vary your fixed-income investments with different types of bonds and cash holdings. The diversification strategy you choose for your 401(k) should complement your strategies for investments outside of your retirement plan.

Tax Considerations

Because retirement plans offer tax benefits, they carry certain restrictions, such as when withdrawals can be made without penalty. While funds in a 401(k) are made with pre-tax dollars and have the potential for tax-deferred growth, withdrawals made before the age of 59½ may be subject to a 10% Federal income tax penalty, in addition to the ordinary income tax that will be due.

Some 401(k) plans feature the Roth 401(k), too. If your employer offers this option, you may be able to designate all or part of your elective salary deferrals to a Roth account. Although contributions are made with after-tax dollars, earnings and distributions are tax-free, provided you have held the account for five years and are at least 59½ years old when you access funds.

If you’re looking to save specifically for retirement, in addition to your 401(k), consider a Roth IRA, which allows earnings to grow tax-free. While contributions are made with after-tax dollars, your withdrawals will be tax-free provided you are older than age 59½ and have owned the account for five years. Early withdrawals may be subject to a 10% Federal income tax penalty, unless you qualify for an exemption. Certain income limits apply.

Taking advantage of the tax benefits retirement arrangements offer is a valuable strategy, but also consider building more liquidity and flexibility into your overall savings and investment plan. In the event you need access to funds before retirement, have a contingency plan such as an emergency cash reserve and relatively liquid investments. However, keep in mind how accessing savings in the short term will affect your long-term goals.

As you look toward retirement, consider increasing your overall savings rate, maintaining appropriate asset allocation and diversification strategies, and planning for taxes. Over time, your investments will inevitably be affected by legislative reform and market swings, but with a long-term outlook and continued involvement, you are better positioned to manage the fluctuations and changes to work towards your objectives.

Investment returns and principal values will change due to market conditions and, as a result, when shares are redeemed, they may be worth more or less than their original cost. Past performance is no guarantee of future results.

Planning for retirement doesn’t have to be overwhelming. Talk to a financial professional to make sure your strategy fits your life and goals. Meet one of our team members today!

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

Asset allocation does not ensure a profit or protect against a loss.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

This article was prepared by AdviceIQ.

LPL Tracking #737710

The post Figuring Out a 401(k) Strategy That Works for You appeared first on Choice Bank.

A financial consultant is a professional whose calling in life is to work with you, the client, to manage the many financial aspects of your life while working toward specific financial goals. Good consultants provide high-quality financial guidance, help design strategies for safeguarding and growing your assets, identify your risk tolerance, and work to create a personalized investment plan and any other financial planning needs without compromising your values.

While you are trying to manage your finances, inflation continues to undermine buying power, higher interest rates suddenly boost the cost of borrowing, talks of tariffs or the possibility of a recession or some other economic issue could send the market into a collection of ups and downs and trying to keep everything in order can be daunting. A financial consultant is somebody who can help you navigate the ever-growing complex world of personal finance.

According to Fidelity, industry studies estimate that professional financial advice can potentially add up to 5.1% to portfolio returns over the long term, depending on the time period and how returns are calculated.

If you have never had the experience of working with a financial consultant, you may be wondering what they can do for you. Let’s dig a little deeper into what you can expect.

What Does a Financial Consultant Offer?

Financial consultants generally work for a firm, or they are self-employed and can service individual clients or entire organizations. Their services may vary slightly depending on their background and experience; however, typically they will examine your financial situation – including your assets, debts and expenses, and all other financially related documents and work with you to come up with strategies and create a financial plan that aligns with your goals.

There are many different reasons why people seek the help of a financial consultant. Most consultants will be able to advise on the following topics:

• Retirement planning
  – Cost estimation
  – IRAs, 401(k)’s (and other retirement accounts), Pension plans
  – Retirement spending
  – Benefit adjustments
  – Income planning
  – Annuities
  – Social Security
• Structuring an investment portfolio and identifying products that may be helpful
• Creating strategies for saving and budgeting
• Professional career development
  – Goal setting and how bonuses and raises could impact you financially
  – Networking in the financial industry
  – Mentorship through professional financial development
• Risk exposure and management
• Tax planning
  – Tax-loss harvesting
  – Tax-smart withdrawals
• Education planning
  – 529 plans
  – Accelerated gifting
• Estate planning
  – Creating trusts
  – Powers of attorney
  – Beneficiary designations
  – Guardianship
  – Wills
  – Charitable contributions
  – Asset distribution
  – Life insurance policies
• Health finance management
  – Health savings accounts (HSA)
  – Medicare
  – Medicaid
  – Affordable Care Act
• Generational wealth transfer planning
  – Creating communication channels with family members
  – Managing future wealth distribution and the financial impact
• Managing and paying down debt
  – Debt snowball
  – Debt avalanche
  – Creating repayment strategies
  – Debt consolidation
  – Budgeting
• How to create and manage an emergency fund

Working with a financial consultant can help to create a documented financial and investment plan that helps to highlight your short-term needs, long-term goals, and your values. You are not only making plans now, but you are also establishing a foundation for future decision-making and creating a map of sorts to help you stay the course, especially during times of volatility in the market or within your personal life.

The longer you work with a financial consultant, the easier it will be for them to start pinpointing areas that need improvement, allocating assets, and sharpening your focus in ways that impact your objectives and avoid unforeseen obstacles.

They are not only financial consultants, they can encourage you when times are unpredictable. They can help to curb unnecessary spending and fine-tune your approach to cash flow management. They can also intervene when you are grappling with an emotional decision-making scenario, and a much-overlooked aspect of having a financial consultant as an ally, they are an extra set of eyes on your finances to help thwart potential scammers and hackers. According to Bankrate, at least 1 in 3 Americans have faced a financial scam or fraud in the past year. It is helpful to have someone else monitoring your finances along with you, especially if you don’t have a great deal of experience.

When Should I Seek the Advice of a Financial Consultant?

There really isn’t a wrong time to meet with a financial consultant to assess your financial situation and discuss measures you can take to work toward improvement. Here are several life incidents that you may experience in your own life that may encourage you to want to change the way you manage your finances, including:

• You find yourself struggling to manage your finances day to day.
• You want to save for retirement but don’t know where to start.
• You are tired of living paycheck to paycheck and wish to seek ways to budget and save.
• You don’t have much money to invest but want to learn how to do it.
• You have money invested but aren’t happy with your progress and want to modify your current portfolio to benefit a changing market.
• Maybe you have a date when you think you may want to retire and want to get a head start on preparing for that moment.
• If you receive an inheritance and want to invest and manage it instead of watching it disappear, which historically is a common problem.
• You want to see if your tax planning strategy can be revised to provide enhanced returns.

A financial consultant generally has the educational background, experience, and knowledge, as well as being a neutral third party who can assess your financial interests and concerns without making emotionally driven decisions. You might think you don’t manage your money based on how you are feeling, but a study conducted by Nobel Prize-winning psychologist Daniel Kahneman indicated that we make financial decisions based on 90% emotion and only 10% based on logic. That is a staggering statistic that only highlights the importance of getting help from a financial consultant.

Do All Financial Professionals Who Call Themselves Financial Consultants Hold a Certification?

There are cases where individuals with no professional certification or training still call themselves financial consultants, so it is important to always inquire about the professional designations held by the financial consultant you are considering and to do your own research. Individuals who complete a financial planning program through the American College of Financial Services earn a designation called the “chartered financial consultant” (ChFC®). The ChFC® is a certification that the college has offered since 1982, and they are the only institution to do so. Successful candidates complete a rigorous program that provides the skills and knowledge to offer more specialized holistic services covering a broad range of financial topics, including divorce planning, retirement planning, and other business issues. Another accredited designation in the field of financial planning is the Certified Financial Planner (CFP®) certification. To become a certified ChFC® or CFP®, candidates must complete a rigorous program that includes both classroom study and real-world experience.

According to FINRA, to acquire a ChFC® designation, candidates must have:

1. Three years of full-time business experience within the five years preceding the awarding of the designation; and
2. A high school diploma or equivalent
3. There are eight online, self-study courses
4. Closed-book, proctored final course exams
5. Client-facing designees: 30 hours every two years, including one hour of ethics continuing education (CE)
6. Non-client-facing designees: one hour of ethics CE every two years.

In comparison,

 According to FINRA, to acquire a CFP® certification, candidates must have:

1. A bachelor’s degree (or higher) from an accredited college or university and
2. Three years of full-time personal financial planning experience or the equivalent part-time experience (2,000 hours equals one year full-time).
3. Candidates must complete a CFP-Board registered program, or hold one of the following:
   – Certified Public Accountant (CPA)
   – Chartered Financial Consultant (ChFC)
   – Chartered Life Underwriter (CLU)
   – Chartered Financial Analyst (CFA)
   – Ph.D in financial planning, finance, economics, or business administration
   – Doctor of Business Administration
   – Attorney’s license
   – CFP certification from outside the United States
4. Must pass the proctored final certification exam
5. Get 30 hours of continuous education every two years.

In comparison, both ChFC® and CFP® professionals provide full-service financial guidance on subjects such as wealth management, investing, retirement, and more. Non-officially, however, the ChFC® is considered more difficult to obtain than the CFP®, along with being more expensive.

Financial consultants are professionals who provide individualized guidance to help people work to manage and preserve their wealth. They also help with financial planning, investment management, navigating the complex world of insurance, tax management, and other more specific situations that require financial decision-making.

How Should I Prepare to Meet With My Financial Consultant?

When you first meet with a financial consultant, you can view it as an opportunity to conduct an interview, allowing you to learn about them just as they are trying to learn about you as a prospective client. You can ask them about their credentials, experience, educational background, fee structure, and investment philosophy.

Just as you expect your financial consultant to be organized and prepared, it will be beneficial if you are as well. Consider these suggestions on how to prep for your initial meeting:

• Have a list of your questions, such as,
  – How are you paid? What is your fee structure?
  – What are your credentials?
  – What is your investment philosophy?
  – How often do you communicate with your clients?
  – Are you a fiduciary at all times?
• A list of your assets and liabilities
  – Assets – Cash, investments, property, gold, and others.
  – Liabilities – Mortgages, auto loans, student loans, credit card debt, medical bills, and outstanding taxes.
• Retirement plan account statements
  – 401(k)s, IRAs, profit-sharing plans, defined benefit pensions, and others.
• Your tax returns
• Bank statements
• Insurance information
• Brokerage statements
• Legal financial documents like child support and alimony payment schedules
• Other relevant financial documents you may have

What Are the Challenges Some People Face When Searching For a Financial Consultant?

Finding a financial consultant for you may be time-consuming and expensive with high fees. Some consultants charge a flat fee while others charge hourly, monthly, or an annual rate, and the cost varies significantly depending on, for example, the type of service you seek and where you live.

However, a high-quality financial consultant can be worth the price tag if you can cut your expenses, save money, and create a beneficial financial strategy that works toward your long-term goals. This, in turn, creates a more secure financial situation for you and your family and helps to alleviate some of the financial stress and concern that impacts so many people.

I have heard that only rich people need a financial consultant. Is that true?

No, that is not true. A financial consultant can be beneficial for anybody looking to change the way they manage their finances. They can help with many different financial and professional questions, and it doesn’t necessarily have to break the bank. According to NASDAQ, there is no standard fee for financial consultants. Some may earn commissions, some charge an hourly rate or an annual fee, and others charge separately based on specific services. Just like comparison shopping for a new car, you can do the same when searching for the financial consultant you feel will benefit you and your family.

Not everybody needs a financial consultant, however, if you earn money and you hope to retire someday, you have a reason to consider talking to one.

Make an Appointment Today to Start Changing Your Life Tomorrow

Taking action is the first step toward getting your financial situation in order. It can be a stressful decision, regardless of your income level, though particularly unnerving if you are experiencing a financially leaner time in your life. You may be behind on bills, have lingering debt, problems with budgeting and saving, all the while still dreaming of one day retiring, and it can feel suffocating. This is exactly when hiring the services of a financial consultant can help.

Based on a survey conducted by the American Psychological Association, as many as 8 out of 10 Americans are stressed over concerns about money. Along with that, 75% of households live paycheck-to-paycheck, and credit card debt is growing.

The benefit of a financial consultant goes beyond immediate money issues. Money-related stress isn’t just about the dollars and cents; it can impact other aspects of a person’s personal life, including their relationship with their children and partner, and this can touch those across different socio-economic classes, including blue-collar workers, professional workers, and even executives in an equally diverse range of industries.

Do your research and find a financial consultant who is affordable for you and someone whose knowledge, background, and experience align with your wants, needs, and values.

Meet with a Member of Our Team

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by LPL Marketing Solutions

LPL Tracking #727063

The post What is a Financial Consultant and What Can They Do For You? appeared first on Choice Bank.

A financial advisor, unfortunately, often hears from clients after something has happened, and sometimes they’re limited in how they can help. Sure, they can often make the situation better, but if they knew about what you’re facing sooner, they could help avoid a lot of heartache and often save money. Here are times when you should reach out to your financial planner before these things happen.

Changing Jobs

There is a lot a financial advisor can advise you of when you are changing jobs, besides just whether or not to roll over your 401k.

• They can help you budget during your transition and when you start your new job.
• They can help you evaluate whether a new job offer fits within your overall long-term goals.
• They can help you evaluate your new company’s benefit plans and identify where you might see gaps in coverage.

In addition, it’s likely they can also help you network to your next job.

Getting Married

Most couples know that money is the #1 source of arguments in marriages. A financial advisor helps you identify your joint financial goals and walk you both through the financial planning process.

Buying a House

Your house is likely to be your largest investment and greatest asset for quite some time. Like any investment, there are risks to consider. Is this your first home, investment property, or vacation home? Depending on your circumstances, there are lots of headaches they can help you avoid in the future.

Having a Baby

Interestingly, many new parents spend hours agonizing over the color of the new nursery and very little time on financial planning matters that a baby introduces to their life. But, that’s where a financial advisor can help make a list of things to think about: 529 plans, tax implications, wills, new expenses, etc.

Starting a Business

Have the entrepreneurial bug? Well, as great as starting a business can be, it can also come with a lot of challenges, and most of them have nothing to do with money.

A financial advisor can help review your business plan, think through health insurance options, and determine whether you should consult or form an LLC. They can also help review your projected P&L and determine whether a SEP IRA or solo 401k makes sense. And again, they can probably help you network with similar entrepreneurs to best position you to succeed!

Getting Divorced

While every divorce is unique in its own way, the reality is that there is usually one common theme in all divorces – it destroys a retirement savings plan. And while every divorced person feels the financial impact, baby boomers suffer more, and the impact among women baby boomers is among the worst. A financial advisor can help you navigate the financial complexities of divorce.

Planning for Aging Parents

Are you considering a senior living center for your mother? Or maybe transitional housing with full-time care? Or visiting nurses? Many people, often entering retirement themselves, are finding themselves in a position of helping elderly parents or relatives to manage their finances and living arrangements. There are so many things to think about, including irrevocable trusts, durable power of attorney, health care directives, as well as options for the next chapters of your parent’s life. While a financial advisor is not an expert in all the nuances, they can help you sort through the issues and develop a plan.

Family Matters

Has your brother approached you about investing in his new business? Or maybe you are considering buying a new car for your son? Or maybe your sister needs a loan? All of these are emotional decisions as much as they are financial ones. A financial planner can help you determine what your options are financially. It could be that you simply can’t afford to invest in your brother’s new business, and knowing that can save you a lot of emotional heartache.

Planning Matters

Your financial advisor can help you sort through many of your major life decisions. All they need from you is a quick call or an email letting them know what’s going on. I’ll then help you think through your options, so that you can continue on your path to financial independence!

Do any of these situations apply to you? Give us a call. 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

LPL TRACKING 01-957929

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LIFO is a method of layoffs in which the last employees hired are the first to be let go. This method is often used because it is seen as the most fair and objective way to determine which employees will be laid off. The idea is that the employees who have been with the company the longest have had the most time to prove themselves and make valuable contributions to the company.

However, some critics argue that LIFO is not always the best method for layoffs. For example, if a company is trying to reduce costs by cutting staff, it may make more sense to let go of the highest-paid employees, regardless of how long they have been with the company. Additionally, if a company is trying to streamline its operations, it may make more sense to let go of employees in less essential roles, regardless of their tenure.

Another method of layoffs that is sometimes used is “first in, first out” (FIFO), in which the first employees hired are the first to be let go. This method is often used in unionized workplaces, where the seniority of employees is a key factor in determining layoffs. However, like LIFO, FIFO can also have its drawbacks.

For example, if a company is trying to reduce costs by cutting staff, it may make more sense to let go of the highest-paid employees, regardless of how long they have been with the company.

In addition to LIFO and FIFO, some companies may also use a “performance-based” approach to layoffs. Under this method, employees are evaluated based on their job performance, and those who are performing poorly are more likely to be let go. This approach can be beneficial in that it ensures that the company is retaining its best employees, but it can also be difficult to implement fairly, as performance evaluations can be subjective.

It is worth noting that there is no federal law mandating how employers must conduct layoffs. It is up to each individual company to decide the best way to proceed. Some states, however, have their own laws or regulations that employers must follow when conducting layoffs.

Layoffs can be a difficult and uncertain time for employees, and the method used to determine who will be let go can have a big impact on how fair and objective the process is perceived to be. While LIFO and FIFO are the most common methods used, performance-based approach and other methods are also used in some companies. Ultimately, it is up to the individual company to decide the best way to proceed, but it is important to consider all the options and their potential consequences.

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Important Disclosures:

Content in this material is for educational and general information only and not intended to provide specific advice or recommendations for any individual.

This article was prepared by FMeX.

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1. It May Not Cost as Much as You Think

Many people believe that financial services are expensive and only for the wealthy. Instead, financial services are helpful for almost everyone and may not cost as much as you think. Many financial professionals are available who may assist with your planning. This may make finding an affordable financial professional easier.

2. Financial Services Are More Than Your Investment Portfolio

When some people think of financial services, they may think it is maintaining an investment portfolio, but a lot more goes into it than most people think. Financial services considers your financial situation, such as current debt, income, and savings, and compares these with your future goals. By looking at your complete financial situation, your financial professional could devise a plan that allows you to work toward your future financial goals based on where you currently are and where you would like to be.

3. You May Be Further Along Financially Than You Think

Some people are afraid of working with a financial professional because they are fearful that the analysis may show they won’t have enough financial resources to get by in the future. The good news for some is that you may need less than you expect when you are older. If you have children, they may need less support when grown up and on their own. You may also have your home and other debt paid off and may spend less in your later years. You may feel some relief when creating a financial plan if you realize you may be in a better position than you think.

4. You Are Able To Change Your Financial Strategy

If you are anxious about making a plan for your finances because you fear you won’t be able to change it down the road, you have nothing to worry about. Financial strategies are fluid and often change. You adjust throughout your life based on your current financial situation and changes in your family and lifestyle. Your financial professional could help you stay on top of these changes and help you make needed adjustments to keep in line with your future goals.

The thing to do is push fear aside and contact a financial professional who has the tools, experience, and training to help with your planning.

Meet with a Choice Wealth Advisor

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

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But when merging your finances with your partner’s, it’s important to be transparent and enter the experience with an open mind. If you’re considering starting the journey toward joining your finances, this guide can help you navigate the process effectively and with more confidence.

Maintain Open Communication

Throughout the entire process of combining finances, it’s crucial to have open and honest communication with your partner. Start by discussing your individual financial situations, including income, debts, assets, existing accounts, and overall financial goals. This dialogue will help you each better understand the other person’s current financial status and expectations, allowing you to identify and work through any possible concerns sooner rather than later and establish a shared vision for your financial future. Then, as you move forward, conduct regular check-ins with each other to ensure that you’re staying on track and alleviate any new issues that may arise.

Determine Your Financial Goals

As part of your communication, you’ll want to identify your financial goals both as individuals and as a team. These should include short- and long-term objectives, such as saving for a down payment on a house, paying off student loans, planning for retirement, or pursuing a shared dream like starting a business or traveling the world. Aligning your goals and making them clear and achievable will provide a road map for your future financial decisions and keep you both motivated to continually work together to meet them.

Establish a System

There are various approaches to managing joint finances, so it’s important to determine which one will work best for you and your current situation.

Total Combination

This system involves combining all your individual bank accounts into one joint account. Though getting everything shifted may take some extra time and effort, it can ultimately simplify your financial management since most, if not all, of your payments would come out of this single account. You’d also have joint credit and debit cards, which would create more transparency by letting each person see where the money is going every month.

Proportional Contributions

With this method, you would each contribute to a joint account a set percentage of your paychecks that’s proportional to your individual income. If you or your partner makes substantially more than the other, this could be a good option as it can help ensure that one of you isn’t giving more than you can reasonably afford. You would also each maintain your own personal accounts separate from the joint one, which can allow for more financial autonomy and independence.

Equal Contributions

Similar to the proportional method, this approach entails maintaining individual accounts as well as a joint account. However, you would each contribute the same amount to the shared account every month to use on shared expenses such as the mortgage or rent, insurance, and groceries. This approach can work well if you have similar incomes and debts since it would prevent one person from contributing a disproportionate amount.

Follow a Budget

Developing a budget together is an integral part of merging finances, no matter what system you choose. By budgeting, you can better track your monthly income and your spending, enabling you both to understand where the money is coming from and where it’s going. To create a budget that works for each of you, start by first identifying your essential monthly expenses, which may include rent or mortgage, utilities, groceries, debt repayments, investments, and insurance. Once you have that general number in mind, you can then decide how much you want to save or set aside for your emergency fund based on your financial goals. Finally, allocate funds for discretionary spending, like entertainment, date nights, or other shopping.

After your budget is set, determine how you will handle your finances each month. For instance, one of you could take on the responsibility of managing deadlines and making payments while the other balances the checkbook, regularly reviewing your accounts and your spending habits to ensure you’re staying within budget. You could also trade off tasks or make them shared activities. Consider conducting a biweekly or monthly check-in where you sit down together to go over your finances and see how well you are sticking to your established budget.

Throughout the entire process of merging finances, be sure to keep your short- and long-term financial goals in mind so you can each have a clear idea of what you’re working toward and saving for each month. You should also regularly review and adjust your budget or financial system to accommodate changing circumstances, such as a new job opportunity. This periodic evaluation and open communication can help ensure that your strategy remains aligned with your evolving needs and aspirations as a couple, leading to a stronger financial future.

Wanting help for your plan to combine finances with your partner?  We would love to meet with you!

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This article was prepared by ReminderMedia.

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Your financial professional is there to help guide you through mastering the fear curve, working to shield you from significant losses, and better positioning you for pursuing substantial gains. Let’s explore five foundational rules to help you make more rational decisions and avoid the emotional roller coaster of investing.

1. Diversify Your Assets

Diversification is the cornerstone of both building and preserving wealth. It’s advisable to spread investments across various asset classes, including stocks, bonds, cash, real estate, collectibles, cryptocurrencies, and other alternatives. Diversification not only aims to increase the potential for overall returns but also reduces risk. Research consistently shows that asset allocation is responsible for over 90% of your investment returns.

2. Tune Out Short-term Forecasts

The market’s short-term movements are largely unpredictable. Despite the plethora of forecasts, even experts often miss the mark. For the majority of investors, especially those not engaged in day trading, daily market volatility should be a non-issue. Focus instead on the broader economic and financial landscape, ignoring the daily noise that can lead to hasty decisions.

3. Have a Risk-Management Plan

Protecting your current assets is a prerequisite for wealth generation. A sound risk-management strategy involves careful position-sizing, which limits the size of any single investment within your portfolio. A good rule of thumb is to ensure that a loss on any investment does not exceed 2.5–5% of your total portfolio value. This approach helps mitigate panic selling during downturns, allowing you to maintain composure and confidence in your investment strategy.

4. Use Systematic Investing

Regular, disciplined investing—known as systematic investing—can significantly impact your financial growth over time. This can be facilitated through automatic direct deposits into brokerage accounts, participating in employer-sponsored retirement plans, and opting for dividend reinvestment programs for mutual funds, ETFs, and dividend-paying stocks. This strategy helps in building wealth steadily, leveraging the power of compounding.

5. Create a Plan and Stick to It

After establishing an investment plan, it’s crucial to adhere to it, barring annual adjustments or necessary rebalancing. Constantly shifting strategies in reaction to market volatility is a common pitfall that leads to emotional investing. By committing to a well-thought-out plan, you can work toward safeguarding against the whims of market sentiment and better position yourself for long-term confidence.

Overcoming the fear curve is not about eliminating emotions but managing them effectively to make informed, rational investment decisions. Remember, in the realm of investing, discipline and patience are virtues that often lead to prosperity.

Need help taking the emotion out of your investing plan? We would love to meet with you.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Asset allocation does not ensure a profit or protect against a loss.

Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

This article was prepared by FMeX.

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Seeking the help of a professional to assist in one’s wealth planning leaves more time for them to focus on their primary specialty area, thus driving efficiency in managing results. Often, these individuals are focused on their careers, are business owners, or are high achievers with many goals. Here are ten ways a financial professional can assist high-performing individuals work toward improving their financial health.

1. Planning for Goals

A financial professional can develop a customized plan considering income, expenses, financial goals, risk tolerance, and investment strategies. This holistic plan considers all aspects of a high-performing individual’s financial life and aligns them with their goals.

2. Planning for Retirement

It’s vital to start planning early to maintain your desired lifestyle while working and after retirement. Financial professionals will work to understand your retirement lifestyle goals and devise a comprehensive plan based on your goals, risk aversion, and timeline.

3. Investment Advice Based on Your Situation

Investing can be a complex process. A financial professional can help with investment diversification and recommend suitable investment strategies to help manage financial goals.

4. Tax Planning

Efficient tax planning can result in significant financial savings. Financial professionals are equipped to recognize your tax liabilities and objectively propose strategies to mitigate taxes.

5. Risk Management and Insurance

From health insurance to life and property insurance, financial professionals can help you understand the importance of appropriate insurance coverage. Your assets may avoid early depletion with suitable insurance, making insurance essential to asset preservation.

6. Debt Management

Too much debt can hinder financial independence. Financial professionals work with you to determine appropriate strategies for prioritizing and paying off debts, maintaining a healthy credit score, and working toward financial confidence.

7. Estate Planning

Comprehensive estate planning ensures efficient wealth transfer to beneficiaries. Financial and legal professionals together will help guide you through complex processes such as drafting a will, setting up trusts, and tax implications based on your situation.

8. Education Funding

Whether you’re funding your child’s education or returning to school yourself, a financial professional can guide you on appropriate strategies for paying for education without jeopardizing your financial goals.

9. Emergency Funding

Unexpected situations that require immediate financial resources may arise. A financial professional will help develop a strategy for creating an emergency fund and determine the appropriate amount to set aside as you work toward a fully funded emergency fund.

10. Behavioral Coaching

Money decisions often involve a lot of emotions; market ups and downs and other significant life events can derail your long-term financial goals. If your emotions dictate your investment decisions, a financial professional can help you manage them to keep you on track toward pursuing your goals.

Remember, financial wellness is not just about acquiring wealth; it’s also about managing and preserving it for the future. High-performing individuals must seek guidance in this endeavor, as managing finances requires the help of a financial professional, time, and continuous effort.

Important Disclosures:

This material was created for educational and informational purposes only and is not intended as tax, legal, insurance or investment advice. If you are seeking advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

 All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.This article was prepared by Fresh Finance.

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Sources

https://www.forbes.com/advisor/investing/financial-advisor/what-is-a-financial-advisor/

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