Category: Financial Planning
Peace of Mind Starts with a Plan
There are no two financial plans alike. Working with a Certified Financial Planner™ will ensure that your financial plan is designed around your desired future.
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
Delay Social Security, Not Your Retirement
Most people think that they can’t retire until they take Social Security. So, when I advise them to delay their Social Security benefit until age 67 (and most often until age 70), all they hear me saying is, “YOU HAVE TO WORK LONGER!” Not True! The age when you take Social Security and the age at which you retire DO NOT have to coincide. Where my clients are concerned, they have saved substantial amounts of money in their 401(k)s, IRAs, trust accounts and the like. They can retire, delay their social security benefit, withdraw from their retirement savings and then simply draw less once they start taking Social Security. If they live past 80, they are likely better off. No two financial plans are the same. Have your CFP® professional run your Social Security analysis to see what’s best for you.
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
How Finances Play a Role in Your Relationship
Relationships are typically divided into two financial roles: the active and the passive. To be more specific, the person who assumes the domestic financial lead by paying bills and making financial decisions and the person who takes a passive approach to the finances (“I don’t know” … “fine” … “you decide.”) Although this is typical, it is not optimal. In this traditional circumstance contentiousness can emerge between spouses as a result of misunderstandings and miscommunications about money. Ideally, partners should approach finances like all other areas in a healthy relationship, as a team: collaborating on goals and strategies while openly communicating about money. If they don’t however, the following are important points to consider about each role. The Financial Lead The role of the financial lead, for those who take this responsibility seriously, is not an easy one. You have the challenge of balancing the important financial responsibilities while simultaneously making your family happy. And for domestic tranquility’s sake, you can’t always say “no, we can’t afford it,” but occasionally you need to pull the reins on the household spending. We have met with many widows who were surprised to find that their spouses left them in a precarious monetary
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
Peace of Mind Starts with a Plan
There are no two financial plans alike. Working with a Certified Financial Planner™ will ensure that your financial plan is designed around your desired future.
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
Delay Social Security, Not Your Retirement
Most people think that they can’t retire until they take Social Security. So, when I advise them to delay their Social Security benefit until age 67 (and most often until age 70), all they hear me saying is, “YOU HAVE TO WORK LONGER!” Not True! The age when you take Social Security and the age at which you retire DO NOT have to coincide. Where my clients are concerned, they have saved substantial amounts of money in their 401(k)s, IRAs, trust accounts and the like. They can retire, delay their social security benefit, withdraw from their retirement savings and then simply draw less once they start taking Social Security. If they live past 80, they are likely better off. No two financial plans are the same. Have your CFP® professional run your Social Security analysis to see what’s best for you.
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
How Finances Play a Role in Your Relationship
Relationships are typically divided into two financial roles: the active and the passive. To be more specific, the person who assumes the domestic financial lead by paying bills and making financial decisions and the person who takes a passive approach to the finances (“I don’t know” … “fine” … “you decide.”) Although this is typical, it is not optimal. In this traditional circumstance contentiousness can emerge between spouses as a result of misunderstandings and miscommunications about money. Ideally, partners should approach finances like all other areas in a healthy relationship, as a team: collaborating on goals and strategies while openly communicating about money. If they don’t however, the following are important points to consider about each role. The Financial Lead The role of the financial lead, for those who take this responsibility seriously, is not an easy one. You have the challenge of balancing the important financial responsibilities while simultaneously making your family happy. And for domestic tranquility’s sake, you can’t always say “no, we can’t afford it,” but occasionally you need to pull the reins on the household spending. We have met with many widows who were surprised to find that their spouses left them in a precarious monetary
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
