We Make Money Fun

On this episode of Making Money Fun, Christina talked about what it was like, leading up to, and finally working with Heritage Financial Strategies on planning life for her family after retirement.   She shared why they decided to hire a planner and why they chose Heritage.   She also shared that she was diagnosed with a degrative brain disease and had brain surgery, and that hastened their need to make sure they would be financially ok, even if she couldn’t return to work.   Their most significant financial achievement was realized early in 2023 when they paid off their mortgage and now can rest easy knowing they will be financially able to handle it if she is not able to return to work.   

The Secure Act of 2019 was the biggest legislative change to retirement planning since 2006, and it quickly became overshadowed by the COVID-19 pandemic. But Secure Act 2.0 brings even more changes that could significantly impact how you plan for your retirement.

Required Minimum Distributions (RMDs)

Under the Secure Act, the age at which individuals must withdraw money from certain retirement accounts has changed. The RMD age has now been set at 72 for anyone born in 1950 or earlier, 73 for those born in 1951-59, and 75 for anyone born in 1960 or later. There is also the possibility that some in the group with 73 as their RMD age may be changed to 74. Additionally, distributions must happen by April 1 of the year after attaining the RMD age. If you wait until the following calendar year to withdraw, two distributions will be due that year. And if you fail to take an RMD, penalty fees can be reduced from 50% to 25%, which could go down to 10% if corrected promptly.

Employer-Sponsored Plans

The legislation changes Roth accounts under employer-sponsored plans - they no longer have any required minimum distributions unless they are inherited - while sep IRAs and SIMPLE accounts can now offer Roth options instead of being purely pre-tax investments. Contributions to employee 401k's can also now be made directly into their Roth side, which could create tax consequences for those individuals. It is also possible for 529 college savings plans proceeds to be transferred into Roth accounts under narrow conditions, creating new tax planning opportunities in this area.

Contribution Limits

Secure Act 2.0 provides annual contribution increases based on inflation rather than unpredictable fluctuations. This may provide more predictability when budgeting your long-term savings goals each year..

Other Changes

Other notable changes include incentives for small businesses offering 401(k) plans and employers making student loan payments for employees in place of matching contributions.

Why Your Vision Board Should Include a Financial Planner: Getting into the Nitty Gritty with Lisa and Shanna

Ever wished that you had your very own guardian angel to help you navigate the course of your finances? Well, look no further because your wish has been granted!

Join us and our guest, Lisa, on this episode as she shares her personal experience and journey towards building and improving the financial health of she and her partner, Nick. A loyal client of over 8 years, Lisa is a health, wellness and clinical practitioner, as well as a business leader who is planning on launching her newest venture, "Adventures with Lisa" next year.

She shares what it's like to be lost and what led her and her partner to bring in a financial planner on their quest for financial freedom and security. According to Lisa, seeking help is not necessarily a sign of weakness but a mark of courage. She also talks about how engaging the services of a financial planner transformed her life and facilitated her early retirement plan, along with allowing her and Nick to purchase a house and pursue their passions debt-free. 

Listen to the podcast to get the full details!

Connect with us on LinkedIn and Facebook @Heritagefinancialstrategies and on Instagram and Twitter @Wemakemoneyfun.

For more information on the aesthetics of hiring a financial planner, subscribe to @Wemakemoneyfun on Apple podcast or wherever you listen to podcasts.

It's been a turbulent year for investors in 2022, as the Federal Reserve took action against inflation and the stock market reacted to changes in the discount rate. This resulted in a rare phenomenon of both equities and bonds selling off simultaneously - but even during recessionary periods, the stock market has had a positive return on average. 2023 looks optimistic, with no two down years occurring consecutively, but investors must remain diversified and use tax-efficient strategies. Despite periods of volatility, taking a long-run approach to the market can reap rewards.

Today’s show is about Melisa Horn, a highly experienced financial professional with over 30 years of experience in banks and credit unions. As Financial Coach with Mindful Money Financial Coaching, Melisa helps clients with budgeting and financial education. Additionally, as Brand Ambassador for Heritage Financial Strategies, she shares her expertise in making the most of their money. With a strong focus on customer service excellence, Melisa goes above and beyond to ensure everyone receives high-quality care and support. Melisa has an impressive background; she holds a Bachelor of Science Degree in Marketing from Arkansas State University and has received numerous awards for excellence throughout her career. She is known for building trust with her clients and team members through authentic relationships. Her dedication to helping others achieve their best financial future makes her a valuable asset to Heritage Financial Strategies. Plus, Melisa is passionate about helping people make smart financial decisions that help them complete personal or professional goals or navigate life transitions.

A windfall is money that comes to you suddenly, often unexpectedly.  This could be an inheritance, settlement, lottery winnings, or even stock in the form of a company IPO.  Today, Shanna Tingom of Heritage Financial Strategies and Jon Gay discuss what to do with a windfall, and some very costly mistakes to avoid.  70% of people who come into large sums of money lose it within a few years!

If you know a windfall is coming, be honest.  For example, if you're anticipating an inheritance, talk to those relatives while they're here so that you're all on the same page.

Next, it's vital to have a team in place to help you with this money.  This can include a financial advisor, attorney, CPA, and more.  Lean on their expertise.  And keep things quiet!  Only tell your team members and close people that you trust.  The last thing you want is to be under siege from people asking for money.

If you're dealing with a current or future windfall situation, or have any questions related to your financial future, you can always reach out to Shanna and her team at Heritage Financial Strategies at https://www.heritagefinancialaz.com/

Shanna Tingom has long sensed - in herself as well as her clients, that women are struggling with their financial health. Many feel they haven't contributed as much as they'd like to their retirement plan.  This money has gone to other places that Shanna explains, particularly since the start of COVID.

Three main factors playing into all of this are inflation, low consumer confidence, and changes around access to reproductive healthcare.

59% of women stress about money once a week, and 43% of women actively worry about money at least once a day!

Shanna and Jon also compare differences between generation of women - and where their priorities aren't the same.   However, more women are making their financial health a priority.

Mentioned in today's show: The Ellevest Study "The State of Women's Financial Wellness in 2022:"  https://s3.amazonaws.com/production.assets.ellevest.com/documents/Ellevest-The-State-of-Womens-Financial-Wellness-in-2022.pdf

Reach out to Shanna and her team at Heritage Financial Strategies at https://www.heritagefinancialaz.com/

Shanna Tingom's guest today is Aaron Witten of Witten Financial. His firm specializes in helping businesses use the Employee Retention Credit (ERC) related to COVID.  He's here to walk us through it.

The ERC started with the CARES Act in April of 2020, but it was revised in December of 2020, and again under "Build Back Better" in February of 2021.  

The latest revision includes the language: “if your business was fully or partially impacted by a governmental shutdown order." This makes it easier for businesses with non-relative W2 employees to qualify.  The affected "pandemic period" includes Q2, Q3, and Q4 of 2020, as well as Q1, Q2, and Q3 of 2021. These income-tax-free, refundable credits can run as high as up to $26k per employee over this covered period – making this an extremely valuable shot of cash in the arm of businesses, both large and small.

Aaron also breaks down how PPP and EIDL loans could affect eligibility.  

How do you apply for the ERC? What are the terms, time period, and processes?  Aaron gives us an overview.

Resources:

Aaron's White Paper:

Aaron's Website: https://wittenfinancial.com/

Aaron's Phone Number: 270-200-1056

Shanna's Website: https://www.heritagefinancialaz.com/

Shanna's Phone Number: 480-397-1184

As we turn the calendar to October, the markets continue to show signs of volatility.  Today, Shanna and Jon are here to explore what's happened since our last check in, 3 months ago.

In September, the Fed raised the interest rate another 0.75%.  What does that mean for our listeners, and are we closer to a recession than we were a quarter ago?

While that's not an easy question to answer, it's important to look at what makes our current condition unique. This includes household debt to asset ratios, and the differences in personal consumption of goods vs services.

Should our listeners hold tight?  Shanna closes by answering that question.

Want to know more? Contact Shanna Tingom and the team at Heritage Financial Strategies: https://www.heritagefinancialaz.com/

Student loan forgiveness was announced a few weeks ago by the Biden administration.  What are the pros and cons? Are you eligible? How does it work?  Shanna Tingom from Heritage Financial Strategies is here to answer those questions today.

Shanna and Jon agree this plan is a good step in the right direction to help many Americans get back on their feet financially, so they'll have more money they can spend, and get out from crippling student loan debt.   The plan doesn't address the root problem here - the skyrocketing cost of higher education - but that's a conversation for another podcast.    Also, financial education is so critically important - both of our cohosts made the mistake of signing up for a credit card in college in exchange for a free T-shirt.  But Shanna also got pizza out of the deal. Jon did not.

This new plan will provide $10,000 of student loan forgiveness for those who qualify, and that number goes up to $20,000 if you received a need-based Pell Grant.  In other words, if your family was below a certain income threshold when you were a student, there's more opportunity here for you.   In addition, the "pause" on student loan repayments we've seen throughout COVID will be extended one more time, with an end date of December 31, 2022.

Finally, if you made payments during this period since March of 2020, you may be eligible for a refund.

While some of aspects of Public Service Loan Forgiveness, or PSLF, may go into effect automatically, the best advice is to do your research.   Check in with your loan servicer online.  Shanna even went to StudentAid.Gov to re-activate her account to look up the most updated information.  And, depending on which state you live in, you may be required to pay taxes on the forgiven about.   There are many moving parts here, and every situation is different.  So do you research, and talk to a professional.

To reach Shanna and her team at Heritage Financial Strategies, visit them online at https://www.heritagefinancialaz.com/