Category: Personal Finance

Financial Planning: It’s More than Math

In the financial world there is so much to know. As CFP® Professionals we have dedicated ourselves to obtaining knowledge of investments, taxes, estate planning, insurance, and the like. At Whelan Financial, we strive to gain a deep understanding of each client to create a custom financial plan that will guide them in making sound financial decisions. It’s important to note the time and attention each client is given; we are not just a transactional business but a relational one.  The service we offer goes beyond the technical knowledge that is required of us and reaches into the feelings, thoughts, and fears that our clients have. We remember that we help people reach their financial goals.  This human element makes our job so much more exciting, so much more meaningful. We know that when the market is up, investors are often very happy – why wouldn’t they be? Conversely, when the market is down, investors are often concerned about their outlook.   We understand that fluctuations in the stock market can cause uncertainty and stress, and we make considerable efforts to proactively reduce this stress in a caring, yet practical way. Here are a few of our methods. Teaching You How

Read More »

You’re Making Six Figures, Now What?

Congratulations! Your hard work has paid off. You’ve finally hit that six-figure salary. You must be asking yourself, “What do I do now?” Whether you’re looking to start a family, work hard/play hard, or just want to retire as early as possible, making sure you’re saving and investing to reach your goals is going to be your first priority.  Employers offering pensions are a relic of the past, and social security may not be sufficient to satisfy your expense needs. It’s up to you to save enough.  Other professionals have advised 10% as a healthy savings goal, but if you wish to maintain your quality of life in retirement, this probably will not be enough. We advise saving 20%-30% of your gross income depending on your age and your earnings. The earlier you start, the greater the chance that 20% will be enough. However, the more you make, the higher the percentage you’ll need to save. These amounts could be adjusted further depending on your targeted retirement age. Where You Are Saving Is Just as Important as How Much You Are Saving! Navigating the complexities of a comprehensive financial strategy can be daunting. A CERTIFIED FINANCIAL PLANNER™ practitioner will be able to

Read More »

Investment Strategies in Times of Inflation

Investors are worried about the current state of the economy—namely, therising costs of goods on their savings. Each dollar buys less with every passing month of higher inflation, and savings are dwindling along with the “purchasing power” of what remains. This leads people to ask where to place their money at a time like this. Although interest rate increases are terrible for borrowing money, they are great for your savings accounts. For the first time in over a decade, your normal savings could start earning reasonable risk-free interest if managed properly. Before we discuss how to navigate the road ahead, let’s examine how we got to this point and the lessons learned from prior periods of higher inflation. How We Got Here In mid-2022, the United States experienced a surge in inflation, reaching a 40-year high. This upward price trend can be attributed to a supply-demand mismatch in which an excess of money is chasing fewer goods. Despite initial claims by the Federal Reserve that inflationary pressures were “transitory” and would diminish once factories and workers resumed normal operations post-COVID-19, supply chain shortages and subsequent spikes in energy and consumer goods have persisted. The Consumer Price Index (CPI) measures the

Read More »

End-of-Year Financial Checklist

It’s that time again, the end of the year is here. While you’re making your list and checking it twice, keep these financial tips in mind to take advantage of tax benefits, find cost-effective solutions, and begin the new year in control of your finances. 1. Maximize 401(K) Contributions This strategy is among the top priorities in most financial plans. The maximum contribution for 2022 is $20,500 or $27,000 if you are over 50. Check with your 401(k) service provider to discuss whether you are on track to maximize your contributions by the end of the year. 2. Prepare for Tax Impact For those who dislike surprises, end-of-year tax planning is a must. Meeting with your CPA and having them run a preliminary projection can help prepare you for an unexpected tax burden. It also gives you time to take advantage of tax deductions, like charitable contributions, before it is too late. If you don’t have a CPA but rather do your own taxes, we suggest using the IRS Withholding Calculator to determine whether you are likely to owe more or be entitled to a refund. All you need is a copy of your most recent paycheck stub. This is

Read More »

Financial Rewards of Charitable Giving

There is something special about the holidays that, for some, elicits deep feelings of philanthropy. So, it is not uncommon that at this time of year we get questions about charitable donations. But, before simply writing a check to a charity, you should consider other ways to gift that may benefit you as well as the charity. Two great strategies to consider are gifting highly appreciated securities and utilizing Qualified Charitable Distributions (QCD’s). We’ll touch on some lesser-implemented strategies as well.  Gifting Highly Appreciated Securities There are certain types of accounts in which we invest that are subject to capital gains tax. This tax is different from your 401k or your IRA because you only have to pay tax on amounts that you made on the investment. You see, accounts such as individual brokerage accounts, joint tenant accounts, trust accounts, and the like are funded with money that you have already paid tax on. So, the IRS can’t tax you on those dollars again. They do, however, tax you on the amounts that your investments made. This tax is called capital gains tax and occurs once the investment has been sold. At times, the value of these investments grows so

Read More »

Strategies for College Savings at All Stages

Saving for your child’s college isn’t an easy endeavor. It is increasingly expensive, which can make it challenging to cover even a portion of the total, much less the entire cost. This is why the best strategy is to start saving early. However, for those who are starting later, there are still financial planning opportunities to help support your savings goals.

Read More »

Financial Planning: It’s More than Math

In the financial world there is so much to know. As CFP® Professionals we have dedicated ourselves to obtaining knowledge of investments, taxes, estate planning, insurance, and the like. At Whelan Financial, we strive to gain a deep understanding of each client to create a custom financial plan that will guide them in making sound financial decisions. It’s important to note the time and attention each client is given; we are not just a transactional business but a relational one.  The service we offer goes beyond the technical knowledge that is required of us and reaches into the feelings, thoughts, and fears that our clients have. We remember that we help people reach their financial goals.  This human element makes our job so much more exciting, so much more meaningful. We know that when the market is up, investors are often very happy – why wouldn’t they be? Conversely, when the market is down, investors are often concerned about their outlook.   We understand that fluctuations in the stock market can cause uncertainty and stress, and we make considerable efforts to proactively reduce this stress in a caring, yet practical way. Here are a few of our methods. Teaching You How

Read More »

You’re Making Six Figures, Now What?

Congratulations! Your hard work has paid off. You’ve finally hit that six-figure salary. You must be asking yourself, “What do I do now?” Whether you’re looking to start a family, work hard/play hard, or just want to retire as early as possible, making sure you’re saving and investing to reach your goals is going to be your first priority.  Employers offering pensions are a relic of the past, and social security may not be sufficient to satisfy your expense needs. It’s up to you to save enough.  Other professionals have advised 10% as a healthy savings goal, but if you wish to maintain your quality of life in retirement, this probably will not be enough. We advise saving 20%-30% of your gross income depending on your age and your earnings. The earlier you start, the greater the chance that 20% will be enough. However, the more you make, the higher the percentage you’ll need to save. These amounts could be adjusted further depending on your targeted retirement age. Where You Are Saving Is Just as Important as How Much You Are Saving! Navigating the complexities of a comprehensive financial strategy can be daunting. A CERTIFIED FINANCIAL PLANNER™ practitioner will be able to

Read More »

Investment Strategies in Times of Inflation

Investors are worried about the current state of the economy—namely, therising costs of goods on their savings. Each dollar buys less with every passing month of higher inflation, and savings are dwindling along with the “purchasing power” of what remains. This leads people to ask where to place their money at a time like this. Although interest rate increases are terrible for borrowing money, they are great for your savings accounts. For the first time in over a decade, your normal savings could start earning reasonable risk-free interest if managed properly. Before we discuss how to navigate the road ahead, let’s examine how we got to this point and the lessons learned from prior periods of higher inflation. How We Got Here In mid-2022, the United States experienced a surge in inflation, reaching a 40-year high. This upward price trend can be attributed to a supply-demand mismatch in which an excess of money is chasing fewer goods. Despite initial claims by the Federal Reserve that inflationary pressures were “transitory” and would diminish once factories and workers resumed normal operations post-COVID-19, supply chain shortages and subsequent spikes in energy and consumer goods have persisted. The Consumer Price Index (CPI) measures the

Read More »

End-of-Year Financial Checklist

It’s that time again, the end of the year is here. While you’re making your list and checking it twice, keep these financial tips in mind to take advantage of tax benefits, find cost-effective solutions, and begin the new year in control of your finances. 1. Maximize 401(K) Contributions This strategy is among the top priorities in most financial plans. The maximum contribution for 2022 is $20,500 or $27,000 if you are over 50. Check with your 401(k) service provider to discuss whether you are on track to maximize your contributions by the end of the year. 2. Prepare for Tax Impact For those who dislike surprises, end-of-year tax planning is a must. Meeting with your CPA and having them run a preliminary projection can help prepare you for an unexpected tax burden. It also gives you time to take advantage of tax deductions, like charitable contributions, before it is too late. If you don’t have a CPA but rather do your own taxes, we suggest using the IRS Withholding Calculator to determine whether you are likely to owe more or be entitled to a refund. All you need is a copy of your most recent paycheck stub. This is

Read More »

Financial Rewards of Charitable Giving

There is something special about the holidays that, for some, elicits deep feelings of philanthropy. So, it is not uncommon that at this time of year we get questions about charitable donations. But, before simply writing a check to a charity, you should consider other ways to gift that may benefit you as well as the charity. Two great strategies to consider are gifting highly appreciated securities and utilizing Qualified Charitable Distributions (QCD’s). We’ll touch on some lesser-implemented strategies as well.  Gifting Highly Appreciated Securities There are certain types of accounts in which we invest that are subject to capital gains tax. This tax is different from your 401k or your IRA because you only have to pay tax on amounts that you made on the investment. You see, accounts such as individual brokerage accounts, joint tenant accounts, trust accounts, and the like are funded with money that you have already paid tax on. So, the IRS can’t tax you on those dollars again. They do, however, tax you on the amounts that your investments made. This tax is called capital gains tax and occurs once the investment has been sold. At times, the value of these investments grows so

Read More »

Strategies for College Savings at All Stages

Saving for your child’s college isn’t an easy endeavor. It is increasingly expensive, which can make it challenging to cover even a portion of the total, much less the entire cost. This is why the best strategy is to start saving early. However, for those who are starting later, there are still financial planning opportunities to help support your savings goals.

Read More »