How Will Tariffs Impact Your Investments?

I know this may come as a shock, but fundamentally, the topic of tariffs is actually good. Government leaders implement tariffs on foreign products and services to restrict imports by tacking on additional taxes or fees. The goal is to make foreign products less attractive to domestic consumers.

Tariff supporters argue that they helps correct trade inequities and boost domestic production and growth. They believe that well-targeted tariffs foster fair trade and create a more open and robust international marketplace, despite the tension in the short run.

Those against the idea argue that establishing tariffs is a highly arbitrary fix to flaws in a very complex international market that will lead to unnecessary and unproductive trade wars that historically have ended tragically.

What's Going On Now?

 
  • President Trump has threatened to implement tariffs on nations to correct trade imbalances, unfair exporting practices and marketplace offenses.
  • Trump imposed tariffs on Chinese goods as punishment for the country’s intellectual property theft.
  • The U.S. trade deficit with China has reached a record high of more than $375 billion.
  • Trump has also instituted tariffs on steel and aluminum shipments from Canada, Mexico, and the European Union.
 

Who Will It Help? Who Will It Hurt?

First, who is expected to gain from the U.S. policy on tariffs?

 
  • U.S. steel producers stand to gain significantly. The 25% steel tariff makes a strong argument to go for domestic steel.
  • The U.S. aluminum market has been growing with the implementation of tariffs.
  • Foreign firms serving the markets affected by U.S. tariffs may benefit.
 

Second, who is expected to get the short end of the tariff stick?

 
  • American whiskey exports may suffer. U.S. whiskey producers shipped $737 million in bourbon to Europe in the 12 months prior to March 31.
  • Harley-Davidson and other U.S. motorcycle manufacturers say tariffs will put the brakes on production.
  • Prices for beer and soda, in aluminum cans, may rise.
 

Tariff Impact on Stock Market

Tariffs—and the potential for a trade war—will loom heavy on the stock market, most analysts believe. But by how much, to what extent, and in what direction remains unanswered.

Investors, at this point, are breathing a little easier, as the U.S. stock market seems to be adjusting to the news of the tariffs. Traditional wisdom suggests trade wars don’t produce positive, short-term results. However, Trump’s reasoning rests on the premise that vast trade imbalances favoring foreign countries has unfairly put the brunt of global economic development on U.S. shoulders.

While U.S. stocks have largely climbed to unprecedented heights following Trump’s “Tax Cuts and Jobs Act” and other economic incentives in late 2017 and early 2018, the market has undergone some remarkable shifts, including the sudden 12% drop in February 2018.

We help our clients wade through the challenges and opportunities of the market, on both the personal and professional levels. When you invest in developing a relationship with an independent financial professional, you invest in your future.

Contact us today to learn more!

 

Certain sections of this commentary contain forward-looking statements based on reasonable expectations, estimates, projections and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.

Credit Card Dos and Don'ts

The Basics: A credit card is issued by a financial company that gives the holder an option to borrow funds, usually at the point of purchase. Credit cards charge interest and are used primarily for short-term financing. Interest typically begins to be charged one month after a purchase is made, and borrowing limits are pre-set according to an individual’s credit rating.

If you're like me, you probably receive multiple offers weekly from credit card companies seeking new customers with easy to complete applications. In fact, I'd be willing to bet you have one or two sitting in your mailbox right now! These of course are almost always unsolicited. Before you sign on the dotted line and mail in one of those application, you need to know more. Here are some dos and don’ts regarding credit cards.

 
"Do not save what is left after spending, but spend what is left after saving."
                                    - Warren Buffett
 
 

Dos

Shop around. The credit card industry is very competitive, so compare interest rates, credit limits, grace periods, annual fees, terms, and conditions.

Read the fine print. The application is a contract, so read it thoroughly before you sign it. Watch for terms such as “introductory rate,” and be sure you know when that introductory rate of interest expires.

Pay your bill in full each month. Pay off your statement each month in full and on time; otherwise, you will begin paying interest charges and may be charged late fees. Paying off your bill each month can also help ensure that you stay out of debt.

Track your spending. Look closely at your credit card statements each month to be sure that you actually approved the charges that appear. Mistakes can happen, and you don’t want to pay more than you agreed to.

Pay attention to changes in your credit agreement. Occasionally, the credit card company will send you updates on the contract you have with it. If you don’t pay attention, you could miss something important.

 
 

Don’ts

Don’t spend money you don’t have. Buying things without the money in your savings account can lead you down a dangerous path. Before you know it, you could be in a lot of debt with no way to pay it off.

Stay below your maximum credit limit. Creditors want to see that you know how to use your card wisely. Keeping your balance low and making payments in full are good ways to do that. Just because the option to spend more is there doesn’t mean that you should take advantage of it.

Don’t sign up for store credit cards just to receive a discount. Opening a credit line at a store to obtain a discount on a purchase then and there may not be a good idea. Remember that credit cards affect your credit score and that opening too many can actually hurt it. Plus, store credit cards tend to have much higher interest rates than those offered by financial institutions.

Don’t apply for additional credit cards if you have balances on others. Pay your balances on existing cards before you open new accounts. Getting in this habit will make you less likely to open too many accounts.

Don’t give your credit card to someone else. Whether you authorize it or not, giving your credit card to someone else to use is against the law.

 

Although having a credit card is important in helping you to establish a credit history, they are often misused. A credit card can be a powerful tool in the hands of a responsible individual, but it can be even more powerful in a destructive way in the hands of someone who is unaware of its pitfalls. Keep these tips in mind before obtaining and using a credit card.

Building Your Budget: Start With The Basics

A budget is an estimate of income and expenses for a set period of time. Creating a budget can help you get control of your finances and achieve important financial goals, including buying a car, saving for college, purchasing a home, and providing for a family. It can also be beneficial in meeting unexpected financial challenges, such as losing a job. Honestly I know this doesn't sound fun or exciting, but budgeting will help you improve every aspect of your financial life, and the earlier you begin, the better off you’ll be.

Write down your financial goals.

Before you start evaluating how much you can actually save each month to achieve your important goals, you should consider setting some near-term financial goals. This is essential to tracking your progress. So you need to:

 

· Determine what percentage of your paycheck you would like to save.

· Decide how much money you would like to save each month or how much money you need to save in order to achieve one of your longer-term financial goals.

· Consider how much money you want to allocate to future purchases, as well as how much you want to contribute to an emergency fund and a retirement plan.

 

Whether your goal is to put away a couple of hundred—or a few thousand—dollars every year, you need to know what that amount is. Once you have a realistic idea regarding how much you’d like to save, review the steps below, which can help you determine precisely how much you actually can save.

Next Steps

 

1. Track your income for a month. Figure out how much you make per month. Think in terms of your net income, that is, the amount of money you actually take home (i.e., your net pay) after federal, state and local taxes; contributions to employer-sponsored health insurance; and so forth have been subtracted from your gross pay.

2. Track your expenses for a month. This is the most important step to budget creation. You should record every purchase you make—without exception. No dollar should escape accountability. If you bank online, it is extremely easy to track noncash expenses and debit card charges by simply exporting the information from your user login to a spreadsheet.  

3. Create spending categories. Split your expenses into luxury items and necessities. Necessities would include rent, groceries, car payments, insurance, utilities, and so on. Luxuries would include dining out, entertainment, and other unnecessary items (e.g., extra trips to Starbucks).

To be safe, you should include your saving goal as a necessary item, so you would be less likely to sacrifice saving for other luxuries. Excel is a wonderful tool for this because you can color code your expenses, making it more obvious to tell which type of expense is which.

4. Evaluate your budget. This is the final step in budget preparation. Take a good look at your expenses. Do you see numerous luxury items that you can live without? One benefit to having expenses displayed on an electronic spreadsheet is the ability to make quick and easy calculations. You can set limits on your spending based on the results of your calculations. 

 

Besides preparing yourself for big purchases later in life, your budget can help save you from going into debt in the event of an emergency that requires you to unexpectedly spend a large amount of money.

Check your budget frequently

Keep in mind that it’s important to check your budget frequently to be aware of any changes that may have occurred in your financial situation. Every three months is a good rule of thumb for tracking your spending habits. Not doing so could result in overspending, under saving, and therefore delaying your big financial goals.

What are you waiting for? Get started now!

Now that you know how valuable a budget can be to your financial future and achieving your dreams, what are you waiting for? No doubt you’ll want to begin a savings program as soon as possible. Begin by considering the steps outlined here. Our Wealth Wise Plan program would provide you with personalized financial portal to help you track, monitor and improve your budget and cash flow situation. Contact Us today!

Should You Consolidate Your Retirement Accounts?

If you’re like many of the young professionals I work with every day, myself included, you’ve probably had a few different jobs at this point in your career. In many cases you may have started saving for retirement using the available employer plan or even an individual retirement account (IRA). As you change jobs, it may make sense to consolidate all of your savings into one account to achieve a coordinated investment plan.

Why consolidate?

Consolidating your retirement accounts offers several potential benefits:

 

Less administrative hassle. You’ll receive just one account statement, making it easier to keep track of your funds. Consolidating your accounts also simplifies required minimum distribution calculations and tracking. You’d be surprised how often we discover clients have additional accounts they forgot they even had.

No overlap. If you have multiple accounts, that doesn’t necessarily mean that your investments are properly diversified. In fact, your money may be invested in similar asset classes with significant overlap. Consolidating your retirement accounts gives you a clearer view of your asset allocation picture, as well as any adjustments you may need to make.

Easier rebalancing. Any retirement savings account requires periodic rebalancing to keep it in line with your objectives. By consolidating your accounts, you’re more likely to achieve a cohesive investment strategy.

Proper Beneficiary Management. I can’t tell you how often we see clients with multiple IRAs and 401k plans, all with different beneficiary designations. Even more shocking is how often that information is incorrect or outdated. Consolidation makes it much easier to keep these up to date and accurate.

 

How to consolidate

Moving a retirement account to a new employer plan or to an IRA can be done via direct rollover or trustee-to-trustee transfer.

With a trustee-to-trustee transfer, the funds are sent directly from one plan to another. The plan administrator will make the check payable to your new IRA custodian (never to you directly). That is why this type of transfer is often referred to as a direct rollover. Unlike regular rollovers, there is no tax withholding requirement for this type of transaction. When requesting a transfer from your employer’s plan or another retirement account, be sure to use the right terms to avoid unwanted tax consequences. If you’re unsure, contact your financial planner for assistance.

Should you move your employer plan to an IRA?

A former employer will generally let you keep your money in its retirement plan for as long as you want. You may also choose to move those savings to an IRA. Before making the switch to an IRA, however, it’s wise to consider the following factors:

 

Investment choices. An employer’s 401(k) plan may be lower cost, but your choice of investments will be limited, as 401(k) plan sponsors tend to simplify the investment decision for employees by reducing the number of options. With an IRA, you have a potentially unlimited choice of investments, including individual stocks, mutual funds, and alternative investments rarely offered by employer plans.

Control over distributions. Another benefit of IRAs is that you have more control over when your retirement savings are paid to you. Distribution requirements vary among IRA providers, so be sure to understand the choices available to you and your beneficiaries.

Creditor protection. If creditor protection is a concern, both employer plans and IRAs safeguard your retirement savings from creditors to a certain extent. Employer plans generally offer better protection than IRAs do, however. The level of protection an IRA offers depends on your state laws.

Early withdrawal. One reason to keep funds in an employer account, at least temporarily, is that you may need to tap into your retirement savings before you reach age 59½. There is no tax penalty for taking a distribution from your former employer’s plan after you reach age 55. Although you’ll still pay income taxes, you will avoid the 10-percent penalty for early withdrawal, which would be assessed if you withdrew funds from an IRA before age 59½. Exceptions to the penalty on early IRA distributions include:

 
 
  • Unreimbursed medical expenses that amount to more than 10 percent of your adjusted gross income
  • Disability
  • Distributions from a beneficiary IRA upon the death of the original IRA owner
  • Qualified higher-education expenses
  • Qualified first-time home purchase
  • Distributions under a “substantially equal payment” plan, per Section 72(t) of the Internal Revenue Code
 

A Retirement Strategy That Works For You

As you can see there are some great benefits to consolidating your retirement accounts, however, there are many factors that should be considered. I recommend working with a financial planner to determine what is right for you. Please feel free to reach out to me if you have questions. I'd rather develop the best strategy for you and help you implement it properly, than you potentially creating issues trying to do it yourself.

Is a 529 the Best Way to Save for College?

For parents with aspirations of sending their children to college, the costs associated with doing so can be daunting. For decades, the price of higher education has risen at a rate close to three times that of the Consumer Price Index. And although the rate of increase recently has subsided to some degree, this expense continues to be among the most significant faced by parents. 

Let's consider the following statistics:

 
  • According to Trends in College Pricing 2017 produced by The College Board, a nonprofit organization serving students and schools, the average published tuition and fees for in-state students at public four-year colleges and universities for 2017–2018 are $20,770.
  • In addition, the study states that the average published tuition and fees at private four-year colleges and universities for 2017–2018 are $46,950.
 

There is no question that the pursuit of higher education will come at a substantial cost.  You may be searching for the best way to save for that moment when your child leaves home and the bills roll in. To celebrate National 529 Day, let's take a closer look at 529 plans and their effectiveness when it comes to saving for college.

What is a 529 plan anyway?

Excellent question and probably a great place to start! A 529 plan is a qualified tuition savings program listed in section 529 of the Internal Revenue Code. While these plans are governed by federal law, the 529 plan itself is sponsored by the individual state and managed by a mutual fund company that provides the underlying investment choices for the plan. If the state savings plan meets the federal requirements, the plan’s balance and the future distributions from the plan receive favorable tax treatment.

Income tax benefits

A 529 plan provides some very nice tax benefits, with the primary benefit found in the tax treatment of contributions, earnings, and distributions. Contributions to a 529 plan are typically invested in a mixture of stock and bond mutual funds. Similar to an IRA, the earnings on the contributions are tax deferred; however, unlike a traditional IRA, distributions from the 529 plan are tax free, as long as they are used to pay for qualified higher education expenses.

Qualified higher education expenses are defined as expenses incurred for the enrollment and attendance of a full- or part-time student at an eligible educational institution. Common qualifying expenses for both full- and part-time students include tuition, books, supplies, and associated fees.  For a detailed list of what is included, visit www.savingforcollege.com

The Tax Cuts and Jobs Act of 2017 includes an expansion of 529 savings plans that allows families to save for K−12 expenses as well as college expenses. 529 plans will be able to use qualified distributions of up to $10,000 per year, per student, for elementary and secondary school expenses.

The effect on financial aid

529 plans not only provide substantial income, gift, and estate tax savings, but they also often have minimal effects on financial aid. 529 plans owned by parents are considered parental assets; this means they are assessed at a rate of 5.64 percent when determining how much a family is expected to contribute to tuition costs. Plans owned by students are considered student assets; student assets are assessed at a much higher rate of 20 percent. Qualifying distributions from 529 plans also receive advantageous treatment when determining eligibility for the subsequent year of financial aid. 

A wise choice

When considering all of the options available to parents, a 529 plan offers the most beneficial means to save for college. Tax deferral on the growth of underlying investments, tax-free withdrawals for qualifying higher education expenses, the possibility of a state income tax deduction, the low impact on eligibility for financial aid, and the gift and estate tax benefits make a 529 plan an excellent vehicle for saving toward higher education goals.

If you'd like to discuss what makes the most sense for you, please don't hesitate to give us a call. 

 

The fees, expenses and features of 529 plans can vary from state to state. 529 plans involve investment risk, including the possible loss of funds. There is no guarantee that a college-funding goal will be met. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10% penalty. By investing in a plan outside of your state residence, you may lose any state tax benefits. 529 plans are subject to enrollment, maintenance and administrative/management fees and expenses.

What is the Big Deal with Bitcoin?

I certainly wasn't surprised when I started getting the "should I buy Bitcoin" questions - the media attention alone drives people to it. The troubling part though, is in many cases these questions are coming from people who aren't following any of the basic personal finance principles.

I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.
                                                   - Warren Buffett

Easily one of my favorite quotes from Warren Buffett and for good reason - investor behavior never fails!

"Cryptocurrency" is arguably the most popular buzzword in the global economy right now. While Bitcoin is currently the most well-known cryptocurrency, most people don't understand it beyond the hype and reported skyrocketing value.

The overarching goal of any cryptocurrency is to replace cash, credit, and electronic wire transactions with a digital medium of exchange that isn’t issued by any bank or backed by any federal government.

Small Transactions

Bitcoin was originally viewed as an ideal system for small online transactions, like credit card fees. However, because those online fees are too expensive for retailers—plus with a limited supply and varying demand—Bitcoin’s real-world application has been hampered. To date, only a few established retailers will accept Bitcoin as a form of payment. Among them, you'll find names such as Overstock, Expedia, Newegg, and Dish Network.

Scarcity

Bitcoin’s high level of scarcity has partly influenced its reported high market value. Although you can purchase Bitcoin using online cryptocurrency exchanges, Bitcoin was originally earned via a process known as mining, which is basically a lottery system using a specialized computer program. This lottery system favors those with the biggest and fastest machines, which means people will always need better programs and higher Bitcoin prices to make mining worthwhile—leading to its scarce supply.

The Influence of Cryptocurrency

At this time, it’s hard to tell how much cryptocurrencies are influencing the markets. There are currently at least six other forms of cryptocurrency worthy of attention in the marketplace—and in recent months and years, upwards of 3,000 other cryptocurrencies have been developed and released since Bitcoin was created. However, many of them died out due to a lack of interest and use.

The Future of Cryptocurrency

Governments around the globe are looking at the potential for regulating cryptocurrencies. At the moment, Bitcoin is controlled by a global network of computers that track all purchases and transactions through a system known as Blockchain.

Blockchain keeps Bitcoin decentralized, making it hard for governments and regulatory bodies to control it and other cryptocurrencies. The decentralized nature of Bitcoin, plus its surging value, is diminishing its chances of becoming a more widespread currency. At the moment, most people are turning to Bitcoin as a means of investing with hopes of a big payoff, rather than using it in commercial transactions.

Reports of investors who bought Bitcoin early and generated wealth has led to droves of people precariously investing in the cryptocurrency based on emotion and fear of missing out. As with any investment, there is risk involved with investing in cryptocurrency, and no one can predict its future value.

It’s important to keep an eye on your long-term goals, and before investing in cryptocurrencies, talk to a financial planner to make sure your investment aligns with your financial plan. 

 

This article is intended strictly for educational purposes only and is not a recommendation for or against cryptocurrency.

The Powerful Effects of Compound Interest

Getting an early start on your retirement savings may end up being one of the best financial moves you can make for yourself and your family. Thanks to the power of compound interest, you have the opportunity to make your money work for you and grow exponentially in many cases on a tax-deferred basis.

Think of interest as a fee paid for using borrowed money. The original amount of money in your  account (without added interest) is known as the principal. Compound interest is beneficial because it’s calculated based on the principal plus the interest, resulting in greater interest accrual over the life of the investment.

The benefits of saving early and often

Let’s look at the investing choices of two hypothetical investors, Amy and John.

 

Amy

Amy started investing at age 25. She invests $3,600 per year for 15 years at an 8-percent interest rate and then stops. At age 40 her account has grown to $104,500. By age 70 her investment has grown to $1,050,000.

John

John didn’t start investing until he was 40. He invests $3,600 per year for 30 years at an 8-percent interest rate. At age 40 he has $0 in his account. At age 70 his account has grown to $450,000

 

Clearly this is for illustrative purposes only.  The figures above do not represent the performance of any specific investment and assumes no withdrawals, expenses and tax consequences.

By now you're probably saying, “Okay, I get it. Saving earlier is better than later.” While this is a key point (and one you’ve probably heard before), many people don’t realize just how important it is until they fall into financial trouble. After all, many things can get in the way of retirement saving besides procrastination, such as paying off a mortgage, car loans, sending kids to college, and unexpected injuries or illnesses. The best way to be prepared is to kick off a pattern of saving and take advantage of compound interest as early as you can.

Retirement Readiness

Although retirement may be the furthest thing from your mind at this point, recognizing how costly it can be may help you stick to a savings plan. Here’s an overview of some of the expenses that may come into play:

 

Income taxes. When you begin withdrawing funds from retirement accounts, you may lose more of your financial “nest egg” than you thought possible to income taxes.

Everyday expenses. Groceries, home maintenance and insurance, utilities, and other basic living expenses can eventually start to chip away at your savings.

Travel and hobbies. Many retirees want to travel and take up new hobbies (after all, this is what retirement should be about). Unfortunately, such dreams may not happen if you haven’t saved enough to cover the more crucial expenses highlighted above.

 

Ready to start saving big?

Clearly, getting an early start on your retirement savings (and sustaining that habit over time) can greatly improve your future financial stability. To see how much your money could grow, schedule a free consultation with us here.

Emergency Fund: Preparing For The Unexpected

You’ve probably heard how important it is to establish and maintain an emergency fund. Unfortunately, most people don’t fully realize how important this is until a financial emergency strikes. Are you financially prepared for a leaky roof? How about a broken-down car? If you lost your job, how long would you be able to support yourself and your family until you got a new one? 

An emergency fund is money that you’ve set aside to be used in these critical situations, whether its to handle a minor home repair or to pay for something more serious, like medical bills. Despite the importance of having an emergency fund, however, more than three in five Americans have accumulated no savings for unforeseen expenses, according to a recent Bankrate report.

So what do you do? 

Set a goal

How much you need to save depends on a variety of factors. Generally speaking, your emergency fund should cover three to six months of living expenses. I always tell clients to start with three months and aim to work your way up to six months. There are plenty of free online tools that can help you figure out how much you should have on hand.

Keep your funds accessible

It’s important to pick a bank and a savings vehicle that will give you easy access to your emergency fund when you need it. Consider keeping a portion of your money in a regular savings account, as it will provide some return and you’ll be able to withdraw it at any time without penalty. Online banks such as Ally Bank offer significantly higher interest rates when compared to your local banks. For longer-term funding, you might want to use a savings vehicle with higher interest, such as a certificate of deposit (CD) or multiple CDs.  

Avoid savings pitfalls

Naturally, there may be obstacles to overcome as you build your emergency fund. Take a look at some of the most common pitfalls and ways to avoid them:

 

Using your credit card as an emergency fund.

Although credit cards may be convenient, there is a lot to consider before turning to plastic. Using your credit card will likely resolve the immediate need, but when you think about interest on the debt and possible penalties, it may not be worth it in the long run. 

Cheating other accounts to fund your emergency stash.

Withdrawing money allocated to other resources, particularly your retirement savings account, can do long-term damage to your financial picture. If you borrow from your retirement account and default on the loan, you could face serious tax implications and penalties. Think of it this way: taking cash out of your retirement account is like stealing from your future self.

Thinking that you can’t afford it.

The most common excuse for not maintaining an emergency fund is that you don’t make enough money to save. Although your budget may be tight, you don’t need to put away hundreds or thousands of dollars all at once. Starting small works just as well. You might try making your morning coffee at home instead of buying it or bringing your lunch to work instead of going out. The savings may not be dramatic initially, but it will add up.

 

Start today!

Establish your savings goal, figure out how much money you need to put away every month, and stick to the plan. Remember: it’s better to have an emergency fund and never use it than to face hard times with no means to support yourself and your family! If you have questions or want help, please don't hesitate to send me a message.

 
"It's not how much money you make, it's how you save it"
                                            -Anonymous
 

Six Reasons You Need More Than A Robo-Advisor

You may have read about the rise of so-called “robo-advisors”, online investing platforms that use computer-generated algorithms to create strategies and manage your money.

These platforms provide simple portfolio management with very little human interaction at rock-bottom prices. With the increasing popularity of these platforms, you might be asking yourself: Do I even need a financial advisor?

I think you do. Here are 6 reasons why:

 

Reason 1 | We Treat You like a person, not just an account number

We put you at the center of everything we do. Our meticulous discovery process thoroughly drills down into your unique personality, goals and needs. We think clients have better financial outcomes with custom-built strategies. Robo-advisors use algorithms to fit you into pre-existing strategies based on your age, risk tolerance, and investment horizon. They can’t fully understand your unique needs because they’ve never met you personally.

Reason 2 | We keep you involved in investment decisions

We emphasize ongoing, personalized communication because we believe informed clients make more intelligent financial decisions. We customize our level of communication to your desires and present you with as little or as much technical detail as you would like. Robo-advisors are targeted towards clients who prefer a hands-off approach to investing – one that does not allow for talking through things face-to-face.

Reason 3 | We coach, guide and hold you accountable

Everyone has different purposes for their money; we help you define it and hold you accountable to the strategies we create together. Think of us as a real-life financial coach. Robo-advisor algorithms are designed around simplistic variables like age, target retirement date, risk tolerance and income level. A computer doesn’t care if you reach your goals.

Reason 4 | We Make Sure Your Financial Strategies Keep up with your life

We proactively monitor your strategies and update them as your needs change. When you pass one of life’s important milestones, we’ll know and make sure your strategies keep up with your life. Robo-advisors use automated re-balancing algorithms to make changes to your portfolio. They don’t know when you get married, have a child, or buy a house.

Reason 5 | We provide knowledgeable answers from someone you know

We offer you easy access to an experienced professional who knows you and understands your situation. Whatever your issue, we can get you the answer you need, quickly and confidently. Most robo-advisors send you to a help forum or customer service center when you have questions. Even if there is a person assigned to your account, you could be just one of hundreds they speak with every day.

Reason 6 | Your life is about more than investing

We help our clients prepare for all of life’s important financial milestones: a house, paying off debt, funding a college education, a bucket list, vacation, as well as retirement. Robo-advisors are designed to focus mostly on investing. For our clients, comprehensive wealth strategies are about much more than just their investment portfolio.

 

The Bottom Line

The good news is that you don’t have to forego the benefits of working with an online investing platform when you work with us. Wealth Wise was designed to utilize robust technology to offer many of the same features and benefits that our online competitors do, but with human interaction you deserve.

Want to talk about how we can help you do more with your financial life?


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8 Life Events that Require Financial Guidance

Almost everyone stresses over the daily obligations of financial planning, but many also neglect the significant life stages that require special attention and strategies. Here are 8 key life events that could benefit from professional financial guidance.

1. Graduating from College

College graduation marks the first major transition into adulthood. The progression from school to career is a significant milestone and the perfect time to get financial advice. Whether you or a loved one has graduated, this is also a great time to assess needs such as college debt repayment, savings strategies, or insurance.

Luckily, most recent graduates have time on their side. With the decades ahead and the power of compound interest, it’s the perfect time to have a discussion about the benefits of saving right now. The financial foundation built now will have a major impact on the rest of your financial life.

2. Marriage or Divorce

Professional finance advice is extremely beneficial at the time of marriage. Goals such as combining finances, handling credit issues or debt problems, and building a successful financial life with your spouse will be hard to establish without objective financial advice. Click here to download our helpful checklist for newlyweds.

On the other end of the spectrum, divorcees should ensure that they protect their finances. If you’re entering divorce proceedings, important tasks like updating your will, changing your insurance policies, and protecting your investment accounts need to be handled with care and are best managed by a professional.

3. Adding a Member to Your Household

The birth of a child is a miraculous event, but that new addition will bring huge financial and lifestyle changes. College funds will need to be created, wills and insurance policies need to be updated, and a whole host of new expenses will need to be managed. Make sure that your new bundle of joy is off to the best start possible by bringing in a professional.

4. Job and Income Changes

Whether you are starting a new job, changing careers, or accepting a well-deserved promotion, there are important financial considerations to address. During a job change, you’re better off with a financial planning professional who can help you minimize taxes by rolling over retirement accounts and making the most of your stock options. A professional can also help you adjust your financial plan so you start putting more money aside and preparing for a future of continued financial growth.

5. Buying and Selling Property

If you’re buying a home, a professional can help you review your situation in an effort to maximize your tax benefits, deal with capital gains exclusions and taxes, and find write-offs and deductions you might otherwise have missed. Buying and selling property is complicated, and it’s not worth tackling on your own.

6. Illness or Hospitalization

An unexpected illness or hospitalization can strike at any time, and when it does, your finances are soon to be impacted. If you find yourself hospitalized or stricken by a sudden illness, reaching out to a professional could minimize the financial impact and help you recover more quickly. A financial advisor will also help with long-term care options and disability insurance, estate planning, life insurance, and a host of other planning topics that will have an impact on your overall portfolio.

7. Inheriting Property

Dealing with an inheritance can also be complicated, hence why it made our list. If your inheritance comes in the form of a lump sum, it is important that you minimize the tax bite and address outstanding debts. If you are inheriting a retirement account like a 401(k) or IRA, you’ll definitely benefit from assistance with rollover options and investment advice.

8. Retirement

Retirement may be the most important transition in your life. From maximizing and managing benefits to developing a distribution strategy, the right professional can be an invaluable resource.

Everyone wants to feel comfortable by establishing long-term financial security, so it’s worth taking an honest look at your current financial situation and goals. Every day we take the complexity out of financial planning for our clients. We can make it simple for you too, so don't hesitate to contact us directly if you need someone to look over things with you.