Blog

We were quoted on the websiteCreditCardInsider.com today in an “Ask The Expert” article titled Money Management for Young Professionals.


Featuring helpful hints from financial planners and writers, university counselors and others, the article featuring Credit Card Insider  is aimed at those just entering the workforce and is a good introduction to some basic concepts of financial responsibility and planning.  Many of the tips would be good reminders for financially conscientious readers of any age.  Click on the article title above to see all the recommendations.  

Mission Financial Planning helps clients plan ahead, so their heirs avoid the overwhelming and frustrating circumstances of  inheriting an unorganized estate. 

Services include recommending features and strategies to be included in estate plan documents as well as compiling necessary papers and contact information for various accounts and the professionals that you work with.

It is important to have an understanding of how Required Minimum Distributions, often referred to as “RMDs”, fit into your overall financial plan.  This blog post will cover the basics, but it always makes sense to consult with a financial planner or CPA for personalized advice.

We all have different intellectual and emotional motivators in money matters.  These can range from needing more security to wanting the prestige of wealth.  By understanding what drives your decisions, or creates your challenges, you can be more financially aware and healthy, and operate more effectively and in-tune with your money personality.

Susan Zimmerman, LMFT, ChFC has written extensively on discovering the “core drivers” that motivate people financially. Here are just a few of the money motivators that Susan has found to be powerful.

WITH THE RECENT (NOVEMBER 2015) BIPARTISAN BUDGET ACT, SOCIAL SECURITY RULES HAVE CHANGED SIGNIFICANTLY.  THE ARTICLE BELOW WAS WRITTEN IN 2013, SOME OF THE STRATEGIES MENTIONED BELOW MAY NOW BE CONTINGENT ON YOUR AGE. 

Research shows that a large number of Americans (about 50 percent) file for Social Security benefitsas soon as they are eligible – which means when they turn 62. While you’re entitled to do that — and there are many instances in which it makes perfect sense – delaying filing might actually be a better idea.

HSA plans have been available since 2004, with few changes.  Think of this as a medical IRA.  You own it and control it, and it follows you from employer to employer.  

There are three parts to a HSA.  The health insurance policy that is approved for HSA plans, a savings account that you can choose to fund or not, and an administrator for processing claims and deposits through the savings fund.

The Wall Street Journal’s recent article titled 

• Read more

This is the time of year that small business owners are reviewing their options for making extra 401(k) contributions and evaluating discretionary matches or profit sharing contributions based on last year’s numbers.   They are to be congratulated for having a 401(k) plan, and for planning well enough to have the funds to consider going the “extra mile” with contributions.

For the owner who wants to maximize the benefits of having a 401(k)/profit sharing plan, the first thing to fund is his own (and if applicable, a spouse’s) salary deferrals.  Maximizing one’s salary deferrals does not change the staff expense of having a 401(k) (for the purposes of this article a Safe Harbor plan is assumed), so deferrals are the most cost effective of contributions.

An important part of financial planning is determining a plan for distributing one’s estate and getting it in writing.  Without a plan in place, an estate is divided based on state law, and every state has different laws for “intestate succession”.  While succession starts with close family members, percentages and priorities are not always what you might have assumed or preferred.

Without estate documents in place, the person in charge of administering and distributing your estate would also be determined by state law, or chosen by the courts.

Most people have some preferences about how they would like their life’s work and accumulations distributed or cared for, but many have avoided facing the sobering task of putting their preferences on paper.

There are many details yet to be researched and hammered out, but taxpayers were “saved” from the fiscal cliff in the nick of time.

Points in the new tax bill that will be of most interest to our clients:

• The new 39.6% tax bracket starts at $450,000/400,000 (Married filing joint/single). People in that tax bracket will also see an increase in their qualifying dividends and capital gains rates.

• Everyone else got a “permanent” extension of the Bush-era tax cuts, and their capital gains rate remains at 15%.

• Everyone else: before you get too happy, the Alternative Minimum Tax (AMT) is subject to a flat 26% rate on income up to $175,000 and 28% thereafter.