Why Productive Assets Matter—Especially During Times of War
In times of market stress—especially during geopolitical conflict—many investors instinctively become more conservative. Headlines trigger fear. Risk aversion sets in. And the first reaction is often: move to cash, wait this out, and protect what you have. But one of the most successful investors of all time, Warren Buffett, has long argued the opposite. In this clip, Buffett explains why holding large amounts of cash during war is generally a mistake: Watch here. Buffett’s Core Principle: Own What Produces Buffett’s reasoning is straightforward: cash itself does not produce anything, and over time inflation gradually erodes its purchasing power. On the other hand, productive assets—such as businesses, farmland, and real estate—generate earnings and cash flow. Publicly traded stocks are one of the most accessible ways investors can own productive assets, because when you invest in stocks you are buying ownership in businesses that produce goods, services, and profits. During periods like wartime, when government spending often increases significantly, currencies can lose value even faster. In Buffett’s view, owning assets that produce income and grow over time is far more effective than holding cash or other “pieces of paper” that steadily lose purchasing power. History supports this thinking. Even through major wars,
2025 Year-End Financial Checklist
As the holiday season approaches and the year winds down, it’s the perfect moment to pause and take stock of your financial well-being. A little planning now can set you up for confidence and clarity in the new year. Use this checklist as a guide while you close out 2025 and get ready to step into 2026 on solid footing. 1. Boost Your 401(k) Before the Deadline Your workplace retirement plan is one of the most effective ways to build long-term wealth. Try to contribute as much as you comfortably can—and be sure you’re getting the full employer match if one is offered. For 2025, the 401(k) contribution limits are $23,500 per year, or $31,000 if you’re age 50 or older. If you are between the ages of 60 and 63, you are eligible to contribute up to $34,750. Check your payroll contributions or speak with your plan provider to confirm whether you need to make any last-minute adjustments before December 31. 2. Don’t Forget Your RMD If you’re 73 or older, the IRS requires you to take a Required Minimum Distribution (RMD) from your tax-deferred retirement accounts, such as IRAs and 401(k)s. This ensures the IRS can begin collecting
Year-End Financial Checklist: Steps to Strengthen Your Financial Future
It’s that time of year again! Before the busyness of the holiday season fully sets in, take a moment to check in on your financial wellness. This end-of-year checklist will guide you through some important steps to consider as you wrap up 2024 and prepare for a strong start to 2025. 1. Maximize 401(k) Contributions Your employer-sponsored retirement plan is a powerful tool for long-term financial health. Maximize your contributions as much as possible and take full advantage of any employer match, if available. For 2024, you can contribute $23,000 or $30,500 if you’re over 50. Check with your 401(k) service provider to ensure you’re on track to maximize your contributions by year-end or if additional contributions are needed. 2. Take Your RMD For those aged 73 and older, the IRS requires an annual minimum distribution, also know Required Minimum Distribution (RMD), from IRAs and 401(k)s. Since these accounts haven’t been taxed, this rule allows the IRS to begin collecting taxes. The RMD amount is based on your account balance and life expectancy. You may distribute more if needed, but you must at least distribute the minimum amount required, otherwise a penalty may be imposed. If you are 73 or
Cash Balance Plans: The Hidden Gem of Retirement Savings
Small business owners are often ideal candidates for one of the best kept secrets in retirement savings: the Cash Balance Plan. Not only does this allow you to reduce your taxes significantly, but it better prepares you for those very expensive retirement years. In fact, as of 2024, you could save up to an additional $275k a year, tax deferred, positioning yourself for a retirement benefit of up to $3.5 million! Recognize that each situation is unique, however, and it may or may not make sense for you to use a Cash Balance Plan. The value of implementing a plan like this can be measured, usually at no cost. Ask your financial advisor to help you locate a resource for this analysis. Generally, Cash Balance Plans are worth considering for sole proprietorships, corporations, partnership of corporations, partnerships, closely held businesses etc., if the following apply: What are Cash Balance Plans? Cash Balance Plans are a type of defined benefit pension plan. That is, they provide for a predetermined retirement benefit, either in the form of a stream of income or as a lump sum. This is distinct from the more common defined contribution plans—for instance, your 401(k), where only the
Introducing Service 360
At Whelan Financial you’ve probably heard us say that we work with our clients’ other professionals. We do, as the need arises, collaborate with our client’s CPAs, estate planning attorneys, and the like, to execute immediate financial planning strategies on a year-over-year basis. Your Financial Needs As CFP professionals, it is our job to balance your short-term financial needs with your long-term financial goals. For instance, making sure your current spending habits are sustainable in retirement or foregoing tax deductions this year in favor of reduced taxes in the future. In order to advise you in this way, we construct complex financial plans that bring all of the component parts of your finances together in an analysis that extends not just from the current year, but through your life expectancy. Not only will it reveal how much you can expect to have remaining for loved ones or charities, it also informs us of issues that may occur down the road. For instance, years in which your income tax may spike, or when your heirs may be at risk for paying estate tax. The Service 360 Difference We realized that this data is not just important to the advice we give, but
2023 End-of-Year Financial Checklist
It’s that time of year again, so before the holiday season takes over, let’s pause to ensure that your financial well-being is on solid ground. This end-of-year financial checklist is designed to help you safeguard your financial present and fortify your financial future. 1. Maximize 401(k) Contributions Your employer-sponsored retirement plan is perhaps one of the most powerful financial tools at your disposal. Maximize your contributions as much as possible and take full advantage of any employer match, if available. For 2023, you can contribute $22,500, or $30,000 if you’re over 50 years old. Check with your 401(k) service provider to see that you are on track to maximize your contributions by year-end or if you need to make additional contributions. 2. Take your RMD When you turn 73 the IRS insists that you take a minimum distribution each year from your IRAs and 401(k). This is because money in these accounts has not yet been taxed, so in turn the IRS imposes this Required Minimum Distribution, or “RMD”, to commence collecting taxes on these monies. A specific calculation involving the year-end balance in the account relative to your life expectancy is used to determine the amount you must take.
Why Productive Assets Matter—Especially During Times of War
In times of market stress—especially during geopolitical conflict—many investors instinctively become more conservative. Headlines trigger fear. Risk aversion sets in. And the first reaction is often: move to cash, wait this out, and protect what you have. But one of the most successful investors of all time, Warren Buffett, has long argued the opposite. In this clip, Buffett explains why holding large amounts of cash during war is generally a mistake: Watch here. Buffett’s Core Principle: Own What Produces Buffett’s reasoning is straightforward: cash itself does not produce anything, and over time inflation gradually erodes its purchasing power. On the other hand, productive assets—such as businesses, farmland, and real estate—generate earnings and cash flow. Publicly traded stocks are one of the most accessible ways investors can own productive assets, because when you invest in stocks you are buying ownership in businesses that produce goods, services, and profits. During periods like wartime, when government spending often increases significantly, currencies can lose value even faster. In Buffett’s view, owning assets that produce income and grow over time is far more effective than holding cash or other “pieces of paper” that steadily lose purchasing power. History supports this thinking. Even through major wars,
2025 Year-End Financial Checklist
As the holiday season approaches and the year winds down, it’s the perfect moment to pause and take stock of your financial well-being. A little planning now can set you up for confidence and clarity in the new year. Use this checklist as a guide while you close out 2025 and get ready to step into 2026 on solid footing. 1. Boost Your 401(k) Before the Deadline Your workplace retirement plan is one of the most effective ways to build long-term wealth. Try to contribute as much as you comfortably can—and be sure you’re getting the full employer match if one is offered. For 2025, the 401(k) contribution limits are $23,500 per year, or $31,000 if you’re age 50 or older. If you are between the ages of 60 and 63, you are eligible to contribute up to $34,750. Check your payroll contributions or speak with your plan provider to confirm whether you need to make any last-minute adjustments before December 31. 2. Don’t Forget Your RMD If you’re 73 or older, the IRS requires you to take a Required Minimum Distribution (RMD) from your tax-deferred retirement accounts, such as IRAs and 401(k)s. This ensures the IRS can begin collecting
Year-End Financial Checklist: Steps to Strengthen Your Financial Future
It’s that time of year again! Before the busyness of the holiday season fully sets in, take a moment to check in on your financial wellness. This end-of-year checklist will guide you through some important steps to consider as you wrap up 2024 and prepare for a strong start to 2025. 1. Maximize 401(k) Contributions Your employer-sponsored retirement plan is a powerful tool for long-term financial health. Maximize your contributions as much as possible and take full advantage of any employer match, if available. For 2024, you can contribute $23,000 or $30,500 if you’re over 50. Check with your 401(k) service provider to ensure you’re on track to maximize your contributions by year-end or if additional contributions are needed. 2. Take Your RMD For those aged 73 and older, the IRS requires an annual minimum distribution, also know Required Minimum Distribution (RMD), from IRAs and 401(k)s. Since these accounts haven’t been taxed, this rule allows the IRS to begin collecting taxes. The RMD amount is based on your account balance and life expectancy. You may distribute more if needed, but you must at least distribute the minimum amount required, otherwise a penalty may be imposed. If you are 73 or
Cash Balance Plans: The Hidden Gem of Retirement Savings
Small business owners are often ideal candidates for one of the best kept secrets in retirement savings: the Cash Balance Plan. Not only does this allow you to reduce your taxes significantly, but it better prepares you for those very expensive retirement years. In fact, as of 2024, you could save up to an additional $275k a year, tax deferred, positioning yourself for a retirement benefit of up to $3.5 million! Recognize that each situation is unique, however, and it may or may not make sense for you to use a Cash Balance Plan. The value of implementing a plan like this can be measured, usually at no cost. Ask your financial advisor to help you locate a resource for this analysis. Generally, Cash Balance Plans are worth considering for sole proprietorships, corporations, partnership of corporations, partnerships, closely held businesses etc., if the following apply: What are Cash Balance Plans? Cash Balance Plans are a type of defined benefit pension plan. That is, they provide for a predetermined retirement benefit, either in the form of a stream of income or as a lump sum. This is distinct from the more common defined contribution plans—for instance, your 401(k), where only the
Introducing Service 360
At Whelan Financial you’ve probably heard us say that we work with our clients’ other professionals. We do, as the need arises, collaborate with our client’s CPAs, estate planning attorneys, and the like, to execute immediate financial planning strategies on a year-over-year basis. Your Financial Needs As CFP professionals, it is our job to balance your short-term financial needs with your long-term financial goals. For instance, making sure your current spending habits are sustainable in retirement or foregoing tax deductions this year in favor of reduced taxes in the future. In order to advise you in this way, we construct complex financial plans that bring all of the component parts of your finances together in an analysis that extends not just from the current year, but through your life expectancy. Not only will it reveal how much you can expect to have remaining for loved ones or charities, it also informs us of issues that may occur down the road. For instance, years in which your income tax may spike, or when your heirs may be at risk for paying estate tax. The Service 360 Difference We realized that this data is not just important to the advice we give, but
2023 End-of-Year Financial Checklist
It’s that time of year again, so before the holiday season takes over, let’s pause to ensure that your financial well-being is on solid ground. This end-of-year financial checklist is designed to help you safeguard your financial present and fortify your financial future. 1. Maximize 401(k) Contributions Your employer-sponsored retirement plan is perhaps one of the most powerful financial tools at your disposal. Maximize your contributions as much as possible and take full advantage of any employer match, if available. For 2023, you can contribute $22,500, or $30,000 if you’re over 50 years old. Check with your 401(k) service provider to see that you are on track to maximize your contributions by year-end or if you need to make additional contributions. 2. Take your RMD When you turn 73 the IRS insists that you take a minimum distribution each year from your IRAs and 401(k). This is because money in these accounts has not yet been taxed, so in turn the IRS imposes this Required Minimum Distribution, or “RMD”, to commence collecting taxes on these monies. A specific calculation involving the year-end balance in the account relative to your life expectancy is used to determine the amount you must take.
