Category: Personal Finance
CalSavers Retirement Savings Program
What you need to know about the CalSavers Retirement Savings Program: how it works, how it helps employers, how to be in compliance, how it differs from a 401K.
Navigating Current Volatile Market Conditions
Investing during uncertain times can be stressful, but our qualified Whelan Financial advisers will help guide you on how to invest in volatile markets.
Why You Should Consider I Bonds
In the United States, inflation is rising at a rate that hasn’t been experienced since the early 80s. At Whelan Financial, we understand times like these can be challenging and can offer services to support long-term savings. Our experienced team of advisors recommends Series I Savings Bonds to combat inflation in the current environment.
Your End-Of-The-Year Financial Checklist
End of Year Financial Checklist! Seriously? It’s almost Christmas again? Yikes! Before you go and “break the bank” this season, let’s review a few things you can do before year-end to protect both your financial present and future. 1.) Maximize Your 401(K) Contributions! This strategy is among the top priorities in almost every financial plan. The maximum for 2021 is $19,500 or $26,000 if you are over 50. Check with your 401(k) service provider to see that you are on track to maximize your contributions by year-end. 2.) Prepare for Tax Impact For those of you who do not like 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. And, it 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, I suggest using the IRS Withholding Calculator to give you an idea of whether you are likely to owe more or be entitled to a refund. I have personally found this tool to be very accurate. All you need when
Why Do Happy Couples Have Healthier Finances?
We have all heard the expression, “there is more to life than money.” No one would dare disagree, but we also can’t deny that money is at the heart of much stress. It is also no secret that money stress can be devastating to a marriage. The happiest couples I meet are those who are on the same page about their finances. But more interesting is that, not only are these couples the most content, I find they have the HEALTHIEST levels of financial security! You must be thinking, “of course” if they have a healthy level of financial security then it is easy to be happy. But the behavior of these couples is in stark contrast to the unhappy couples whose financial health is borderline. These couples all do the following: They come to their meetings with light hearts and seem strongly connected, the meetings are full of laughter rather than being wrought with bickering and sarcasm. It is quite clear, that their teamwork, their respect for one another and their great communication are largely the reason that they have achieved financial security. This combined with their fairly frugal spending, is why they can sincerely say “there is more
Finance Essentials: Personal Budget Basics
You cannot take control of your financial life if you don’t know two basic things: (1) how much money is coming in, and (2) how much money is going out. Most people operate in the dark as it relates to their finances. They often take the head-in-the-sand approach or the, cross-your-fingers and hope approach to their financial life. Yikes! Perhaps it will end up working out, but what a stressful way to handle your money. Just knowing where your money goes and how much you need to “keep the lights on” at home provides a tremendous sense of relief. It is integral to everything related to your financial life. So, building a cash flow projection should be at the foundation of your financial strategy. Rather than averaging expenses over a year, I advise that you project your annual income and expense by month. But don’t go over-board. It isn’t meaningful to create line items for coffee expenditures or even clothing for that matter. Rather, list all expenses that you need to keep your house running, food in the fridge and gas in the car. The rest is discretionary; it’s what you can spend on things like eating out, movies, clothes
Does My Child Qualify for Financial Aid?
$250,000 in joint gross income is a substantial sum! Is it too much to qualify for need-based financial aid? Not necessarily. Is a 3.0 high school GPA and an 1100 SAT score good enough to qualify for merit scholarships? It might be. The formula for need-based financial aid is more nuanced than one might think. In addition to obvious considerations such as income and assets, other key variables include number of children in college and which college the student is applying to. Most schools rely on the FAFSA to calculate the dollar amount that a family is expected to contribute towards their child’s tuition each year. This dollar amount is commonly referred to as the EFC (Expected Family Contribution). The FAFSA, or Free Application for Federal Student Aid, is required to be completed each year to determine eligibility for financial aid. It can be completed online for free and consists of a variety of questions related to parental and student income and assets. Many private schools require an additional financial aid form called the CSS Profile, which is used to determine financial aid offered directly by the institution. Have multiple children headed for college? You may not need to rule
Why You Should Consider a Roth at Any Age
It is typical for people to turn to “common wisdom” when looking for answers to major decisions about money. But this is a mistake because each financial situation is unique. You cannot maximize the success of a financial plan by simply following rules of thumb. One such rule I frequently hear, purports to simplify the usefulness of a Roth to: it only makes sense if you are young. Rules of thumb like this make Certified Financial Planner™ professionals like me cringe. Successfully navigating the complexities of our financial system depends on how well you know your players and how creative you can be in your strategy. When used properly, a Roth IRA, Roth 401(k) and Roth conversions can be the queen in your financial chess game, at any age. So, what makes the Roth so special? Tax-Free Growth While after-tax monies are used to fund Roth contributions, earnings grow tax-free. The longer the investment time horizon one has, the greater the potential for tax-free appreciation, which is why it is commonly considered a tool only for the young. Do not forget, however, that even a retiree may have a time horizon of thirty years or longer during which their money
CalSavers Retirement Savings Program
What you need to know about the CalSavers Retirement Savings Program: how it works, how it helps employers, how to be in compliance, how it differs from a 401K.
Navigating Current Volatile Market Conditions
Investing during uncertain times can be stressful, but our qualified Whelan Financial advisers will help guide you on how to invest in volatile markets.
Why You Should Consider I Bonds
In the United States, inflation is rising at a rate that hasn’t been experienced since the early 80s. At Whelan Financial, we understand times like these can be challenging and can offer services to support long-term savings. Our experienced team of advisors recommends Series I Savings Bonds to combat inflation in the current environment.
Your End-Of-The-Year Financial Checklist
End of Year Financial Checklist! Seriously? It’s almost Christmas again? Yikes! Before you go and “break the bank” this season, let’s review a few things you can do before year-end to protect both your financial present and future. 1.) Maximize Your 401(K) Contributions! This strategy is among the top priorities in almost every financial plan. The maximum for 2021 is $19,500 or $26,000 if you are over 50. Check with your 401(k) service provider to see that you are on track to maximize your contributions by year-end. 2.) Prepare for Tax Impact For those of you who do not like 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. And, it 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, I suggest using the IRS Withholding Calculator to give you an idea of whether you are likely to owe more or be entitled to a refund. I have personally found this tool to be very accurate. All you need when
Why Do Happy Couples Have Healthier Finances?
We have all heard the expression, “there is more to life than money.” No one would dare disagree, but we also can’t deny that money is at the heart of much stress. It is also no secret that money stress can be devastating to a marriage. The happiest couples I meet are those who are on the same page about their finances. But more interesting is that, not only are these couples the most content, I find they have the HEALTHIEST levels of financial security! You must be thinking, “of course” if they have a healthy level of financial security then it is easy to be happy. But the behavior of these couples is in stark contrast to the unhappy couples whose financial health is borderline. These couples all do the following: They come to their meetings with light hearts and seem strongly connected, the meetings are full of laughter rather than being wrought with bickering and sarcasm. It is quite clear, that their teamwork, their respect for one another and their great communication are largely the reason that they have achieved financial security. This combined with their fairly frugal spending, is why they can sincerely say “there is more
Finance Essentials: Personal Budget Basics
You cannot take control of your financial life if you don’t know two basic things: (1) how much money is coming in, and (2) how much money is going out. Most people operate in the dark as it relates to their finances. They often take the head-in-the-sand approach or the, cross-your-fingers and hope approach to their financial life. Yikes! Perhaps it will end up working out, but what a stressful way to handle your money. Just knowing where your money goes and how much you need to “keep the lights on” at home provides a tremendous sense of relief. It is integral to everything related to your financial life. So, building a cash flow projection should be at the foundation of your financial strategy. Rather than averaging expenses over a year, I advise that you project your annual income and expense by month. But don’t go over-board. It isn’t meaningful to create line items for coffee expenditures or even clothing for that matter. Rather, list all expenses that you need to keep your house running, food in the fridge and gas in the car. The rest is discretionary; it’s what you can spend on things like eating out, movies, clothes
Does My Child Qualify for Financial Aid?
$250,000 in joint gross income is a substantial sum! Is it too much to qualify for need-based financial aid? Not necessarily. Is a 3.0 high school GPA and an 1100 SAT score good enough to qualify for merit scholarships? It might be. The formula for need-based financial aid is more nuanced than one might think. In addition to obvious considerations such as income and assets, other key variables include number of children in college and which college the student is applying to. Most schools rely on the FAFSA to calculate the dollar amount that a family is expected to contribute towards their child’s tuition each year. This dollar amount is commonly referred to as the EFC (Expected Family Contribution). The FAFSA, or Free Application for Federal Student Aid, is required to be completed each year to determine eligibility for financial aid. It can be completed online for free and consists of a variety of questions related to parental and student income and assets. Many private schools require an additional financial aid form called the CSS Profile, which is used to determine financial aid offered directly by the institution. Have multiple children headed for college? You may not need to rule
Why You Should Consider a Roth at Any Age
It is typical for people to turn to “common wisdom” when looking for answers to major decisions about money. But this is a mistake because each financial situation is unique. You cannot maximize the success of a financial plan by simply following rules of thumb. One such rule I frequently hear, purports to simplify the usefulness of a Roth to: it only makes sense if you are young. Rules of thumb like this make Certified Financial Planner™ professionals like me cringe. Successfully navigating the complexities of our financial system depends on how well you know your players and how creative you can be in your strategy. When used properly, a Roth IRA, Roth 401(k) and Roth conversions can be the queen in your financial chess game, at any age. So, what makes the Roth so special? Tax-Free Growth While after-tax monies are used to fund Roth contributions, earnings grow tax-free. The longer the investment time horizon one has, the greater the potential for tax-free appreciation, which is why it is commonly considered a tool only for the young. Do not forget, however, that even a retiree may have a time horizon of thirty years or longer during which their money
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