In this article, we’re sharing four steps you can take to prepare for the high cost of healthcare in retirement.

For most Americans, healthcare is one of the biggest—if not the biggest—expense in retirement. Indeed, the average 65-year-old retired couple may need roughly $315,000 to cover healthcare expenses, according to a 2022 Fidelity report. Depending on your overall health and other factors, your healthcare costs may far exceed this estimate.

Planning for future healthcare expenses is full of unknowns, making it a difficult task. Nevertheless, there are steps you can take as you prepare for retirement to help ensure you don’t deplete your savings prematurely.

To prepare for the high cost of healthcare in retirement, consider the following steps:

#1: Understand What Medicare Does and Doesn’t Cover

Once you and your spouse stop working, Medicare will likely be your primary insurance provider. Unfortunately, many people don’t realize that Medicare doesn’t cover everything.

Parts A & B cover most inpatient hospital care and medically necessary and preventative services. But even if your service is covered, you’ll typically need to pay a deductible, coinsurance, or copayment.

Moreover, Medicare doesn’t cover long-term care, most dental care and dentures, or eye exams related to prescribing glasses. It also doesn’t cover cosmetic surgery, acupuncture, or hearing aids.

You may not need all of these services as you age, but you’ll likely need some. In other words, planning for healthcare in retirement may require you to look for supplemental insurance beyond Medicare.

#2: Avoid IRMAA to Lower the Cost of Healthcare in Retirement

IRMAA, short for income-related monthly adjustment amount, is a surcharge Medicare beneficiaries must pay each month if their income exceeds a certain threshold. This surcharge can meaningfully increase your healthcare costs in retirement if you have too much taxable income.

Fortunately, there are strategies you can leverage to lower your income in retirement and avoid paying IRMAA. For example, you can strategically donate to charity or convert part or all of your traditional retirement account funds to a Roth account.

You may want to consider working with a financial planner who can help you develop a tax-efficient income strategy in retirement. A financial professional can also help you identify other strategies to prepare for the high cost of healthcare in retirement.

#3: Contribute to a Health Savings Account

A health savings account (HSA) can be an effective way to plan for the high cost of healthcare in retirement—if you qualify.

To be eligible for an HSA, you must be covered under a qualified high-deductible health plan (HDHP). You also can’t be currently enrolled in Medicare.

If your employer offers a qualified HDHP, you may want to consider enrolling to take advantage of an HSA. Not only do HSAs offer triple tax savings, but any funds you contribute are yours to use for life.

Here’s how it works:

• First, you contribute pre-tax dollars to your health savings account.
• You can then invest the funds you contribute on a tax-deferred basis.
• Lastly, withdrawals are tax-free, so long as you use them for qualifying medical expenses.

Since an HSA offers similar benefits to an individual retirement account, it can be an efficient way to boost your retirement savings. But keep in mind some of the tax benefits go away if you withdraw funds for non-healthcare-related expenses.

#4: Consider Long-Term Care Insurance

According to LongTermCare.gov, someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years. Moreover, PWC estimates that the average lifetime cost of formal long-term care is $172,000.

Thus, you may want to consider buying long-term care insurance to offset the potentially high cost of healthcare in retirement.

Long-term care insurance covers expenses related to everyday personal care assistance—for example, help with activities of daily living such as bathing, dressing, or eating. It also covers assisted living and nursing home care.

Long-term care insurance may be a good option if you don’t have or want to burden family members if you can’t take care of yourself. It also tends to be expensive, and not everyone qualifies. Thus, you may want to consult a financial planner or insurance specialist to determine if long-term care insurance is right for you.

Benchmark Wealth Management Can Help You Plan for the High Cost of Healthcare in Retirement

One of the best ways to prepare for the high cost of healthcare in retirement is to start growing your financial resources now. If you’re not sure how much money you’ll need in retirement, start by creating a budget with realistic estimates of your future medical expenses.

Then, see how your projected healthcare costs compare to your current savings. You may need to increase your savings rate to cover the shortfall or leverage other financial planning strategies.

A trusted financial advisor like Benchmark Wealth Management can help you develop a long-term financial plan that prepares you for retirement and beyond. To see if we may be a good fit for your financial planning needs, please contact us. We’d love to hear from you.

This article is for educational purposes only and is not intended to be specific tax, legal, or investment advice.

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 23 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional. He holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. Thomas earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

Ben Franklin famously said, “In this world, nothing is certain except death and taxes.” Indeed, the 2023 tax season is officially here, which means most taxpayers will be filing their tax return within the next two months.

If you tend to stress about squaring up with Uncle Sam, you’re not alone. Fortunately, there are steps you can take to help ensure the process goes as smoothly as possible this year.

Consider these tips for a smooth 2023 tax season:

#1: Start Preparing Early

It’s tempting to wait until the last minute to file your tax return. After all, the deadline isn’t until mid-April. However, most of the documents you’ll need to file your return this 2023 tax season start arriving in January, with investment-related 1099s typically available in February.

That means it’s possible to file your return by mid- to late February in many cases. Plus, the sooner you start preparing this year’s tax return, the more time you’ll have to address issues or questions that come up along the way.

If you’re expecting a refund, filing early may help you get your money faster if the IRS isn’t bogged down by last-minute filers. Alternatively, if you owe the IRS money, completing your return early gives you time to prepare if you need to raise cash or move money between accounts.

Lastly, many people don’t realize that filing your taxes early can help you avoid fraud.

If someone steals your identity and submits a false return in your name to claim a refund, you’ll run into issues when you submit your real return. At that point, the onus is on you to prove to the IRS that the first return was fraudulent.

To avoid identify theft altogether, be sure to keep your personal information secure and periodically check your credit report for suspicious activity. Still, if you’re concerned about a potential breach, filing your taxes at the beginning of the 2023 tax season gives potential scammers less time to file ahead of you.

#2: Keep Important Documents Together in a Safe Place

Depending on the nature of your employment and your investment activity last year, you may have several tax documents arriving in your mailbox this 2023 tax season. As they arrive, store them in a folder for safe keeping.

In addition, consider scanning a copy of each document so you also have an electronic version. This makes it easier to archive your tax return once it’s complete. You’ll also have backup copies of your tax documents in case you lose or damage them.

If you’re self-employed, start gathering receipts and review last year’s credit card and bank statements as soon as possible to tally up your business-related expenses. You can deduct these expenses on your tax return, plus you’ll have a detailed record of them in case the IRS audits you.

If you itemize, you can also start to compile a file of deductible expenses at the beginning of the 2023 tax season. Examples may include state and local income taxes, medical expenses, and/or charitable donations.

Just be sure to record the exact amounts you paid rather than estimate your expenses. Round numbers can be a red flag with the IRS, potentially triggering an audit.

#3: Know What’s Changing This 2023 Tax Season

Keep in mind there may be changes to the tax code each year due to new and expiring legislation. Being aware of these changes is especially important if you do your own taxes so you can take advantage of new tax incentives and avoid costly missteps.

For the 2023 tax season, key changes include:

• Refunds may shrink this year for some taxpayers. Many taxpayers will likely receive a smaller refund this year as several Covid-19-related tax credits, including an expanded child tax credit and enhanced child and dependent care tax credit, expire this year.
• You may not get a tax break for your charitable donations. Last year (tax year 2021), taxpayers could take a special charitable deduction of up to $300 for individuals and $600 for joint filers—even if you took the standard deduction. For the 2022 tax year, taxpayers who take the standard deduction won’t get a tax break for their charitable donations.
• Electric vehicle (EV) and other energy tax incentives are changing. If you purchased a new EV in 2022, the Inflation Reduction Act stipulates that the final assembly of the vehicle must take place in North America to qualify for a tax credit. However, if you entered into a binding contract to buy a new EV before August 16, 2022, and took delivery before January 1, 2023, this rule doesn’t apply. Additional rules and incentive programs will go into effect for the 2023 tax year.
• The IRS delayed 1099 gig-economy reporting changes until 2023. The IRS delayed a new law requiring e-commerce platforms such as eBay, Etsy and Airbnb to report information on users with more than $600 in revenue until 2023. For 2022, the old rules apply. Platforms must only report user information to the IRS if they had more than 200 transactions and $20,000 of revenue in 2022.

#4: Streamline the Tax Preparation Process

If you prefer to do your own taxes, there are ways to streamline the process and make it easier on yourself this 2023 tax season.

First, consider using tax preparation software to prepare and file your tax return. Many of these programs automatically pull in last year’s return, which can be a helpful starting point. They’ll also review your return—either for free or for an additional fee—to identify potential audit risks.

In addition, it’s typically a good idea to file electronically and sign up for direct deposit—especially if you expect a refund. Filing electronically can help you avoid errors and speed up the IRS’s processing time. Meanwhile, you’re likely to get your refund faster if you sign up for direct deposit.

#5: Consult an Expert This 2023 Tax Season

Your tax situation often gets more complicated as your income and net worth increase. If you aren’t comfortable doing your own taxes or simply don’t have the time or energy, the value of hiring an expert may far exceed the cost.

For example, a tax professional may be able to identify lesser-known tax savings opportunities that significantly reduce your tax bill. He or she will also make sure your tax return is complete so you can avoid delays and potential penalties.

However, don’t wait until the last minute to enlist the help of a tax professional. Experts tend to book up in advance, so procrastinating may cost you.

A Fiduciary Financial Advisor Like Benchmark Wealth Management Can Help

While the IRS says it’s made progress in reducing backlogs, many experts are predicting more frustration and delays for taxpayers this year. Following the above tips can help ensure the 2023 tax season goes as smoothly as possible—despite unavoidable headwinds.

In addition, a fiduciary financial advisor like Benchmark Wealth Management can help you stay on top of important tax deadlines and proactively plan for the future. If you don’t currently partner with a financial planner, we encourage you to consider the potential benefits of doing so and contact us to see if we may be a good fit for your financial and tax planning needs. We look forward to hearing from you.

This article is for educational purposes only and is not intended to be specific tax, legal, or investment advice.

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 23 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional. He holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. Thomas earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

Setting financial goals can help you develop healthy money habits and make smarter financial decisions. Here’s how to set meaningful financial goals—and achieve them—in the year ahead.

For many of us, January presents an opportunity to reflect on our successes and setbacks from the previous year and set intentions for the year ahead.

Indeed, many of us are well practiced in making (and perhaps breaking) New Year’s resolutions. However, setting financial goals may not be at the top of the priority list when the clock strikes midnight on January 1^st.

Admittedly, financial goals aren’t always as exciting or motivating as other personal goals, like training for your first marathon or applying for your dream job. But they are arguably just as important—if not more so.

Setting clear financial goals can help you develop healthy money habits and make better financial decisions in the year ahead. You may even feel compelled to make positive changes in other areas of your life as you start to build momentum.

The good news is it’s never too late to set new goals. Here are our tips for setting financial goals you can achieve this year.

When it comes to setting financial goals, consider the following tips and best practices:

#1: Assess Your Current Financial Situation

Setting effective financial goals requires a clear understanding of your current financial situation. Establishing a baseline doesn’t just help you set more realistic goals. It also helps you assess your progress as you work towards achieving them.

Here are a few key metrics you can review to better understand your starting point:

Spending

According to a recent survey by OppLoans, 73% of Americans say they don’t regularly follow a budget. Fortunately, you don’t necessarily need a formal budget to succeed financially. However, you do need to manage your spending.

First, review your spending activity from the last year. An easy way to do this is to download an expense tracker app like Mint or Goodbudget. These apps connect to your bank account and credit cards to record and categorize your expenses, making it easier to see where your money goes it month.

Once you have a better understanding of your spending habits, you can identify potential opportunities for improvement.

Earnings

Your current income can also serve as a helpful baseline for setting financial goals. If you’re finding it difficult to save enough money because of your income and have already cut back your spending, you may want to explore opportunities to boost your earnings this year.

Ultimately, financial success is only possible if you spend less than you earn. Otherwise, headwinds like debt and savings shortfalls can make setting financial goals less than inspiring.

Net Worth

Your net worth can provide a powerful snapshot of your current financial health. If you’re making good choices with your money like saving, paying down debt, and sticking to your investment plan, your net worth will improve over time. But if you tend to spend more than you earn or save, your net worth will suffer.

To calculate your net worth, first tally up the value of all your assets—for example, your home and other property, investment accounts, and anything else you own that has financial value. Then do the same for any debts you owe, whether you have a mortgage, outstanding loans, or lingering credit card debt.

The difference between these two numbers is your current net worth. This number can be an extremely helpful financial goal setting tool, especially if you can identify trends in your net worth over time.

#2: Identify Your Top 3-5 Financial Goals

Setting one or two financial goals for the year ahead may be sufficient if your personal finances are in good shape. On the other hand, setting too many goals can be overwhelming, no matter the state of your finances.

For many people, the sweet spot for setting financial goals is focusing on three to five goals. That way you can address the key components of financial success—for example, spending, saving, investing, and eliminating debt—without setting yourself up for failure from the get-go.

You can use your findings from the previous step to help you set meaningful financial goals. For instance, you may realize you’ve been overspending in certain areas. Therefore, one of your goals may be to rein in your spending and contribute the difference to an emergency fund instead.

Or you may find that you’re in more debt than you thought. If so, you can use a debt payoff calculator to help you set realistic goals for paying down your balances.

Once you’ve decided on your goals, be sure to write them down and keep them visible. According to one popular study, you’re 42% more likely to achieve your goals just by writing them down.

#3: Make Sure Your Goals Are SMART

Setting SMART goals helps ensure your financial goals are clear and achievable. In other words, make sure your goals are Specific, Measurable, Achievable, Relevant, and Time-Bound (SMART).

For example, suppose one of your goals for next year is to reduce your overall debt. Although this is a noble goal, it’s too vague to be meaningful.

For financial goal setting to be effective, you need to set clear parameters around your goals. In this case, setting a goal to pay down your high-interest credit card balances by the end of the year may be better than simply saying you want to reduce your debt. Plus, the clearer your goals, the easier it is to create a plan to achieve them.

#4: Create a Plan to Achieve Your Financial Goals

As the saying goes, “A goal without a plan is just a wish.” Once you’ve identified your top three to five goals, the next step is to develop a clear plan for how you’re going to achieve them. This will serve as your roadmap throughout the year and help you assess your progress along the way.

Building on the example above, suppose your goal is to pay down your high-interest credit card balances by the end of the year. If you’ve successfully calculated your net worth, you already have a clear picture of what you owe.

From there, you can work backwards to develop a plan. In other words, how much will you need to pay towards credit card debt each month to eliminate your balances by the end of the year? Moreover, will you have enough free cash on hand to contribute that amount each month? (If not, you may need to set a more realistic goal.)

No matter your financial goals, creating a plan will help you replace old habits with better ones and guide you in making smarter financial decisions.

#5: Set Yourself Up for Success

Setting financial goals doesn’t need to be difficult, nor does achieving them. Here are a few best practices to set yourself up for success:

• Think small. This may sound counterintuitive, but the best goals don’t require you to overhaul your entire life. Rather, small, consistent actions tend to produce big results over time. In fact, in his book Atomic Habits, James Clear highlights that if you can improve your habits by 1 percent each day for one year, you’ll end up thirty-seven times better by the end of the year. In other words, aim for progress—not perfection.
• Automate what you can. If you’ve ever opted for takeout at the end of a long workday instead of the healthy meal you planned to prepare, then you’ve experienced decision fatigue. Indeed, the quality of our decisions tends to deteriorate after a day full of decision-making. Thus, if you must constantly decide to make smart money choices, you’re less likely to do it if you have competing priorities. To improve your chances of success, it’s often helpful to automate as many financial decisions as you can.
• Acknowledge your wins. Lastly, setting financial goals doesn’t mean you can’t enjoy your money. It’s simply an opportunity to create better habits and make smarter decisions with your money more often than not. Be sure to celebrate your wins as you work towards achieving your financial goals. Acknowledging your successes—no matter how big or small—will help you stay motivated throughout the year.
• Track your progress. Reviewing your goals and progress towards them regularly can help you stay motivated and inspired. It also allows you to make adjustments if you find yourself falling off track.
• Be flexible and adaptable. Life is full of unexpected twists and turns. As your life and financial circumstances evolve, your goals may change as well. It’s important to stay flexible, so you can adapt your financial plan to meet your ever-changing needs and objectives.

Setting financial goals is an ongoing process. An experienced financial advisor can help.

You don’t have to go it alone when it comes to setting financial goals and planning for your future. An experienced financial advisor like Benchmark Wealth Management can help you set meaningful goals and develop a plan to achieve them. We can also help you proactively identify opportunities to improve your financial wellbeing and help you make smart decisions for your future every step of the way.

If you’d like to learn more about how we help our clients and if we may be the right fit for your wealth management needs, please contact us. We’d love to hear from you.

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional. He holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. Thomas earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

In this article, we’re sharing five tax-efficient charitable giving strategies that may help you reduce your 2022 tax bill.

If you’re charitably inclined, you know that giving back can be both personally fulfilling and impactful. It can also be financially beneficial for donors who approach their philanthropic goals strategically.

Specifically, donors who itemize on their 2022 tax return may deduct cash donations up to 60% of adjusted gross income (AGI) and non-cash donations up to 30% of AGI. If you exceed these limits, you can carry the additional amount over to the next tax year for up to five years.

Indeed, charitable donations can provide valuable tax benefits for savvy donors. Yet careful tax planning is essential. Fortunately, there are strategies that can help you reduce your year-end tax bill while also doing good for others.

As we near the end of another calendar year, consider adding the following tax-efficient charitable giving strategies to your to-do list:

#1: Donate Appreciated Non-Cash Assets

In the United States, cash makes up only 7% of total wealth, according to data from the St. Paul & Minnesota Foundation. Yet 85% of charitable contributions are cash donations.

Many charities also accept donations of securities like stocks, bonds, and mutual funds, as well as real estate and business interests. In many cases, donating these types of assets can benefit your charities of choice just as much as cash can. Plus, your tax benefit for donating non-cash assets may far exceed the potential benefit for donating cash instead.

When you sell an asset outside of a qualified account, you may be subject to the capital gains tax if your income exceeds a certain threshold. In 2022, the capital gains tax rate is 15% for most taxpayers and 20% for the highest earners. Thus, if you purchased an asset for $25,000 (your cost basis) and sell it for $50,000, you’re responsible for paying taxes on the $25,000 gain.

However, you can avoid the capital gains tax by donating the appreciated asset if you’ve owned it for at least a year. You can also deduct the fair market value of the donation on your tax return, up to 30% of your AGI, if you itemize. Meanwhile, the charity can convert the asset to cash tax-free.

Indeed, this win-win makes donating appreciated non-cash assets one of the most tax-efficient charitable giving strategies available. Yet donating non-cash assets can have other benefits, too.

For example, if you participate in an ESOP or have otherwise accumulated an outsized position in company stock, donating a portion of your shares can help you diversify your portfolio and potentially reduce risk. Alternatively, you may choose to donate appreciated securities and repurchase them at a lower price to maintain your allocation while reducing your potential tax liability.

#2: Bunch Your Charitable Contributions

To take full advantage of these tax-efficient charitable giving strategies, you must itemize deductions on your tax return. However, itemizing only makes sense if your deductions exceed the standard deduction. In 2022, the standard deduction is $12,950 for single filers and $25,900 for married taxpayers filing jointly.

If you need to boost your deductions so you can itemize this year, one option is to bunch your charitable donations. Bunching is a strategy that involves making two or more years’ worth of donations in one tax year so you can realize the full tax benefit. Then, you may choose to take the standard deduction in years when you don’t donate.

For example, say you plan to donate $5,000 to charity each year for the next several years. If you have extra cash on hand this year, you may want to consider donating $10,000 or more to your charity of choice so you can itemize your deductible expenses. Then, next year, you can skip your regular donation and take the standard deduction.

#3: Contribute to a Donor-Advised Fund (DAF)

Donor-advised funds (DAFs) are becoming an increasingly popular giving strategy. In 2021, charitable assets in DAFs totaled just over $234 billion—a 39.5% increase from the previous year—according to NP Trust.

When you contribute cash or non-cash assets to a DAF, you can take an immediate tax deduction in the year you make the donation. However, like other tax-efficient charitable giving strategies, you can only realize the full tax benefit if you itemize.

Thus, similar to bunching, a DAF allows you to front-load several years’ worth of donations and deduct the full amount on this year’s tax return, up to IRS limits. You can also donate non-cash assets like highly appreciated stock to a DAF and avoid paying the associated capital gains tax.

Yet unlike bunching or gifting non-cash assets directly to charity, contributing to a DAF means you don’t have to decide immediately which organizations receive your donation. Instead, your funds can grow tax-free within the DAF until you direct them to a specific charity.

#4: Realize Capital Losses and Donate Cash Proceeds

Years like 2022 can be difficult for investors to endure, especially when most asset classes decline in value. However, down markets can provide an opportunity to sell certain investments at a loss and lower your overall tax bill.

The IRS allows taxpayers to offset capital gains and up to $3,000 of ordinary income with realized capital losses. This strategy—often referred to as tax-loss harvesting—can meaningfully reduce your taxable burden at year-end if you’re also selling appreciated securities.

At the same time, realizing capital losses and donating the proceeds can be a tax-efficient charitable giving strategy. In addition to offsetting taxable capital gains or income, you can deduct the amount you donate, up to 60% of AGI, if you itemize.

Be sure to consult a financial professional prior to selling securities, however. Altering your asset allocation can introduce other potential risks to your portfolio that diminish the tax benefits of this strategy.

#5: Make a Qualified Charitable Distribution (QCD)

If you’re age 72 or older, the IRS requires you to take distributions from your traditional IRA each year. Required minimum distributions (RMDs) can increase your taxable income and potentially push you into a higher tax bracket.

However, if you don’t need the extra income this year, you can donate your RMD to charity via a qualified charitable distribution (QCD). A QCD allows IRA owners to transfer up to $100,000 directly to charity each year, thus reducing your taxable income.

At the same time, a QCD can help you reach the necessary threshold to itemize on your tax return. This may allow you to take advantage of additional tax-efficient charitable giving strategies that otherwise wouldn’t benefit you if you took the standard deduction.

It’s important to note that the IRS considers the first dollars out of an IRA to be your RMD until you meet your requirement. If you take advantage of this tax planning strategy, be sure to make the QCD before making any other withdrawals from your account.

A Trusted Financial Advisor Can Help You Identify Tax-Efficient Charitable Giving Strategies

For many of us, year-end provides an opportunity to reflect on the progress we’ve made over the last 12 months and set goals for the year ahead. If you’re charitably inclined, it may also be your last chance to achieve your philanthropic goals while taking advantage of the associated tax benefits.

A trusted financial advisor like Benchmark Wealth Management can help you proactively identify tax-efficient charitable giving strategies throughout the year. We can also help you develop a long-term plan to meet your philanthropic goals and other financial objectives.

To learn more about how we can help, please contact us. We’d love to hear from you.

 

This article is for educational purposes only and is not intended to be specific tax, legal, or investment advice.

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional. He holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. Thomas earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

As we near the end of the year and prepare for the holiday season, Tax Season may be the last thing on your mind. But in many ways, the final months of 2022 may be your last chance to reduce this year’s tax liability. To avoid overpaying Uncle Sam and preserve more of your hard-earned income, consider the following year-end tax planning strategies for 2022.

To potentially reduce this year’s tax bill, consider the following year-end tax planning strategies for 2022:

Strategy #1: Identify Changes to Your Tax Situation

In 2022, the standard deduction is $12,950 for single filers and $25,900 for married taxpayers filing jointly. A general rule of thumb is if you can deduct more than the standard deduction amount in eligible expenses from your taxable income, you should itemize. Otherwise, it’s typically easier and more valuable to take the standard deduction.

If your income and circumstances have been relatively stable since last year, you likely know already if you plan to itemize or take the standard deduction this year. However, if you’re on the fence, there are year-end tax planning strategies you can utilize to reduce your tax liability.

For instance, consider pre-paying certain deductible expenses—for example, charitable donations or out-of-pocket medical expenses—this year so that itemizing makes more sense.

Let’s say you plan to donate $5,000 to charity each year for the next several years. If you have extra cash on hand this year, you may want to consider donating $10,000 or more to your charity of choice so you can itemize your deductible expenses. Then, next year, you can skip your regular donation and take the standard deduction.

The same is true for out-of-pocket medical expenses. If you know you have certain expenses looming for 2023, you can pay them this year to make the most of the associated tax benefit.

Strategy #2: Harvest Capital Losses

Capital gains taxes can eat away at your investment returns over time—specifically in non-qualified investment accounts. Fortunately, the IRS allows investors to offset realized capital gains with realized losses from other investments.

That means you can realize profits on your top-performing investments while selling poor performers to reduce your tax bill this year. If you have substantial losses, you may be able to completely offset your gains and potentially lower your taxable income. Plus, in years like 2022 when markets have struggled, you may have more losses than you think.

We proactively take advantage of tax-loss harvesting to help clients with year-end tax planning.

Strategy #3: Review Your Charitable Giving Plan

Currently, taxpayers who itemize deductions can give up to 60% of their Adjusted Gross Income (AGI) to public charities, including donor-advised funds, and deduct the amount donated on this year’s tax return.

You can also deduct up to 30% of your AGI for donations of non-cash assets. Moreover, you can carry over charitable contributions that exceed these limits in up to five subsequent tax years.

When it comes to year-end tax planning, donor-advised funds (DAFs) can provide opportunities to meaningfully reduce your overall tax liability. For example, if you plan to donate $10,000 each year to your favorite charitable organization, it may be more beneficial to take the standard deduction when you file your taxes.

On the other hand, you can front-load a donation of $50,000 to a donor-advised fund and request that the DAF distribute funds to your chosen charity each year for five years. In year one, you can receive a more favorable tax break by itemizing on your tax return. Meanwhile, you can continue to meet your charitable goals each year via the DAF. Indeed, this strategy can be particularly beneficial in above-average income years.

Better yet, you can donate non-cash assets like highly appreciated securities to a DAF and avoid paying the capital gains tax. In addition, you can take an immediate tax deduction for the full value of the donation (subject to IRS limits). This strategy can also help you diversify your investment portfolio without triggering an unpleasant tax bill.

Strategy #4: Look for Opportunities to Reduce Income

Maxing out your qualified investment account contributions is no doubt important for meeting future financial goals like retirement. However, it can also be a valuable year-end tax planning strategy.

First, be sure to check the contribution limits on your employer-sponsored or self-employed retirement plans for 2022. You can also contribute up to $6,000 to an individual retirement account in 2022 (or $7,000 if you’re age 50 or over).

In addition, individuals with qualifying high deductible health plans are eligible to contribute to a health savings account (HSA).

An HSA can be another great option to save and grow your money since these accounts offer triple tax benefits. Specifically, contributions, capital gains, and withdrawals are all tax-free if you use your funds for eligible healthcare expenses. And like qualified retirement accounts, you can deduct your contributions from your taxable income in most cases to reduce your overall tax liability.

Meanwhile, depending on your compensation plan, you may want to consider deferring part of your income to reduce your taxable income in 2022.

Employees with deferred compensation agreements typically pay taxes on the money when they receive it—not as they earn it. That means if your employer pays you a lump sum per your distribution agreement, you could potentially get hit with a hefty tax bill.

Your distribution schedule depends on your agreement with your employer and can usually be found in your plan documents. If you haven’t reviewed your plan details recently, you may want to revisit them as you do your year-end tax planning to avoid any surprises.

Strategy #5: Take Advantage of Lower Income Years and/or Down Markets with a Roth Conversion

The IRS allows individuals to convert a traditional IRA to a Roth IRA via a Roth conversion. A Roth IRA conversion shifts your tax liability to the present. As a result, you avoid paying taxes on withdrawals in the future. In addition, Roth IRAs don’t require minimum distributions.

With a Roth conversion, you pay taxes on the amount you convert at your current ordinary income tax rate. That’s why it can be a particularly powerful year-end tax planning strategy in tax years when your income is below average.

Similarly, a down market can provide a great opportunity to take advantage of a Roth conversion. Since account values typically decline in a negative market environment, so does the amount on which you’ll pay taxes when converting to a Roth. At the same time, there’s greater potential for future appreciation and withdrawals that are tax-free.

After you convert your traditional IRA to a Roth, any withdrawals you make in retirement will be tax-free if you’re over age 59 ½ and satisfy the five-year rule. In addition, you can leave your funds to grow tax-free until you need them since Roth IRAs don’t have RMDs.

While a Roth conversion can be a valuable tax planning strategy, it doesn’t make sense in every situation. Be sure to consult a trusted financial advisor or tax expert before initiating this strategy.

Strategy #6: Strategically Transfer Wealth to the Next Generation

If you expect to leave significant wealth to your heirs, proper estate planning is key. Fortunately, there are year-end tax planning strategies you can leverage to help minimize your estate’s potential tax burden.

In many cases, gifting is one of the simplest ways to efficiently transfer wealth while reducing your estate. Each year, the annual gift-tax exclusion allows you to gift a certain amount (up to $16,000 in 2022) to as many people as you like without triggering the federal gift tax. Plus, spouses can combine the annual exclusion to double the amount they can gift tax-free.

Cash gifts are generally most common. However, you can also use the annual exclusion to transfer personal property or contribute to a 529 college savings plan.

Alternatively, the IRS allows you to pay educational and medical expenses on behalf of someone else without incurring federal taxes. The only caveat is you must pay the institution directly.

Trusts can also help you transfer wealth strategically while reducing your family’s taxable burden. However, trusts can be varied and complex. Thus, it’s important to consult your financial planner or estate planning attorney to determine if a trust may be an appropriate year-end tax planning strategy for your estate.

Strategy #7: Donate Your Required Minimum Distribution (RMD)

The IRS requires individuals to begin taking minimum distributions from certain qualified retirement accounts once they reach a certain age. As of 2020, required minimum distributions (RMDs) begin at age 72.

You can withdraw more than your RMD amount in any given year—but be prepared for the potential tax consequences. On the other hand, the IRS imposes a penalty of up to 50% if you fail to take your full RMD before the deadline.

Both scenarios can be costly. Fortunately, careful year-end tax planning can help you manage your RMDs to avoid high taxes and other penalties.

If you don’t need the extra income, for example, you can donate your RMD to charity. This is called a qualified charitable distribution (QCD). A QCD allows IRA owners to transfer up to $100,000 directly to charity each year.

QCDs can satisfy all or part of your RMD each year, depending on your income needs. You can also donate more than your RMD amount up to the $100,000 limit. Since QCDs are non-taxable, they don’t increase your taxable income like RMDs do.

It’s important to note that the IRS considers the first dollars out of an IRA to be your RMD until you meet your annual requirement. If you leverage this strategy, be sure to make the QCD before making any other withdrawals from your account.

Looking for Additional Year-End Tax Planning Strategies? Consider Consulting a Trusted Financial Advisor.

This isn’t an exhaustive list of year-end tax planning strategies. However, these ideas can help you determine if there may be opportunities to reduce your taxable burden in 2022.

At the same time, a trusted financial advisor like Benchmark Wealth Management can help you identify which strategies are right for you within the context of your overall financial plan. To learn more, please contact us. We’d love to hear from you.

This article is for educational purposes only and is not intended to be specific tax, legal, or investment advice.

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional. He holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. Thomas earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

In this article, we’re sharing six key metrics you can use to evaluate your financial health.

This year has been anything but calm for investors. Inflation, rising interest rates, and ongoing volatility have made it difficult to find a silver lining in financial markets.

Still, it can be helpful to take stock of your finances at year-end to make sure you’re still on track towards your financial goals. That way you can effectively prepare for the year ahead and make adjustments to your financial plan if necessary.

Just like with your physical health, there are certain vital stats that you can check to assess your financial health and well-being.

Here are six metrics to assess your financial health and well-being:

 

#1. Your Net Worth

Net worth is simply the sum of your assets minus the sum of your liabilities. If you’re making good choices when it comes to your finances, like saving, paying down debt, and sticking to your investment plan, your net worth will improve. This simple truth is why net worth is such an important measure of your overall financial health.

If you don’t know your net worth, there’s a simple way to calculate it and improve it over time.

First, tally up the value of all your assets—for example, your home and other property, investment accounts, and anything else you own that has financial value. Then do the same for any debts you owe, whether you have a mortgage, outstanding loans, or lingering credit card debt. The difference between these two numbers is your current net worth.

Next, identify the factors that are benefiting your net worth, as well as any areas that can be improved. For instance, perhaps you’re saving enough but you’re under-invested. Or maybe a financial setback depleted your savings. This exercise is to make you aware of any trends—positive or negative—in your financial habits that may be affecting your financial health.

Finally, choose one new habit to improve your net worth over the coming months. As an example, try automating your savings and investment account contributions. Or avoid stores that tend to trigger overspending, so you can focus on paying down credit card debt.

You may be surprised how quickly your financial health begins to improve by simply tracking your net worth, being aware of your financial habits, and making conscious decisions about your money.

#2. Your Credit Score

Your credit score is one of the most powerful financial tools you have available to you. A strong credit score can save you a substantial amount of money over your lifetime. On the other hand, a weak credit score can make anything from getting a credit card to buying a house challenging and expensive.

As a measure of your financial health, your credit score indicates how responsible you are with repaying and managing debts. It also determines how likely you are to qualify for a loan under the best terms.

Someone with a credit score greater than 800 will likely have no issues obtaining a loan with low interest rates. However, if your credit score is below 670, you may struggle to obtain any type of credit financing without collateral or very high interest rates.

To obtain a great credit score, be sure to make your debt payments on time and try to keep your credit utilization below 30% of what’s available to you. In addition, check your credit report at least annually to avoid setbacks due to identity theft or fraud.

#3. Your Debt-To-Income Ratio

Your debt-to-income ratio reveals how much of your monthly income goes towards paying off debt. This includes good and bad debt—for example, mortgage payments, student loans, and credit card debt. In general, the lower your debt-to-income ratio, the better your financial health.

Debt-to-income becomes increasingly important as you near retirement since you’ll need all available financial resources to support your lifestyle after you stop working. To get your debt-to-income ratio to a healthy level, make sure you’re diligent about paying down unnecessary debt.

Alternatively, you can lower your ratio by increasing your monthly income. However, depending on your circumstances, your income level may be harder to control.

#4. Your Emergency Fund

An emergency fund is just that—a way to cover unexpected financial setbacks, such as a sudden job loss, a medical bill that isn’t covered by insurance, or an unexpected home repair. It’s generally advised to have at least three to six months of living expenses set aside to cover these types of events. If you’re self-employed or your income is less predictable, you may want to have an even larger cash reserve set aside.

One benefit of an emergency fund is it allows you to recover more quickly from a financial setback. If you’re unprepared, taking on debt or dipping into retirement savings can undo years of progress towards your financial goals.

To build a cash reserve, first set your savings target. How much will you set aside each month or each paycheck for your emergency fund? Once you come up with this amount, set up automatic transfers from your primary checking or savings account to your designated cash account. You can also set this up via direct deposit if your employer allows it.

#5. Your Retirement Savings

Your retirement savings is an important metric of your financial health if you plan to stop working someday. As lifespans and healthcare expenses increase, having sufficient financial resources later in life is essential.

According to a 2020 TD Ameritrade report, nearly two-thirds of 40-somethings have less than $100,000 in retirement savings. Meanwhile, 28% of those in their sixties have less than $50,000. Compare this to the rule of thumb that you’ll need about 80% of your annual income in retirement to maintain your lifestyle, and it’s easy to see why so many people outlive their savings.

Indeed, the earlier you start saving for retirement, the better. That’s because you can let the stock market do most of the work for you.

However, if you’re behind on your retirement savings, it’s never too late to catch up. If you’re over 50 years old, the IRS allows you to make catch-up contributions to help bridge the gap.

#6. Your Financial Stress Level

Lastly, your financial stress level is a critical measure of your financial health. If your finances are keeping you up at night or affecting your physical health, you may need to make some changes.

This is where the true value of financial advice often comes into play. A trusted financial advisor can help you develop a long-term plan for your finances and proactively keep you on track towards your goals. Additionally, an advisor can help alleviate stress by saving you time, energy, and useless worry.

As a fiduciary financial advisor, Benchmark Wealth Management provides our clients with holistic financial planning and investment management solutions. We strive to make your life better by offering unmatched client care and attention.

If we can help you develop a long-term plan to improve your financial health, please don’t hesitate to get in touch. We’d love to hear from you.

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional. He holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. Thomas earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

The value of financial advice isn’t always obvious from the get-go. Yet in many cases, the benefits of working with the right financial advisor far exceed the cost.

As your net worth increases, managing the details of your personal finances can become increasingly complex and time-consuming. Not to mention, mistakes can be costly.

Perhaps this is why 95% of people who work with a registered advisor believe it’s worth the money, according to a recent MagnifyMoney survey. Yet despite the potential benefits of professional advice, cost is still one of the top reasons people choose to go it alone.

Indeed, the benefits of working with a financial advisor aren’t always obvious—especially at the outset of the relationship. But before committing to a do-it-yourself approach, be sure to consider the potential value of financial advice.

Quantifying the Value of Financial Advice

The value of financial advice depends on many factors, including your financial advisor, the complexity of your situation, and your financial goals. Still, there’s a growing body of research aimed at quantifying the benefits of sound financial planning.

For example, research from Morningstar shows that “intelligent financial planning decisions” can add the equivalent of 1.59% to a retiree’s annual arithmetic investment returns.

Meanwhile, a variety of other studies focus on the intangible benefits of working with a financial advisor. For instance, 86% of women say that having a professional manage their investments makes life less stressful, according to Fidelity’s 2021 Women and Investing Study.

The Benefits of Working with a Financial Advisor

To be sure, the value of financial advice typically becomes increasingly evident over time. However, the potential benefits of working with a financial advisor often extend beyond quantifiable metrics. In some cases, you may notice the intangible benefits of professional advice first.

Benefit #1: A Financial Advisor Can Help You Maximize Your Wealth

After trustworthiness, a strong investment track record is the main reason clients choose a financial advisor, according to data from Qualtrics. Yet the value of financial advice depends just as much on not losing money as it does on making money.

In other words, many people can get lucky when it comes to picking investments. However, identifying and managing the various risks that accompany these investments requires experience and expertise.

For example, the right financial advisor will help you preserve more of your wealth by avoiding high-cost funds and other investments. Due to the power of compounding, high expenses can eat away at portfolio returns over time. This, in turn, can erase a significant portion of your nest egg.

In addition, annual tax-loss harvesting and portfolio rebalancing can help you protect your financial resources long-term. These strategies can help mitigate unnecessary losses due to capital gains taxes and excess portfolio risk.

Lastly, a financial advisor can help you identify and implement the right estate planning strategies to preserve your assets for generations to come. These strategies may include proper asset titling, asset location, and insurance planning—all of which may be necessary to achieve your long-term financial goals.

Benefit #2: A Financial Advisor Can Help You Avoid Costly Mistakes

Successful investors aim to buy low and sell high. Yet research shows that in practice, the average investor does just the opposite.

This is because humans are hard-wired to make irrational decisions. Often, the value of financial advice is that someone less emotionally tied to your money can help you avoid such costly mistakes.

Consider that the S&P 500 Index generated an annualized return of 10.65% over the last 30 years. Meanwhile, the average equity investor earned an annualized return of just 7.13% over the same period. If you had invested $100,000 at the beginning of the period, that’s a difference of nearly $1.3 million over 30 years.

According to market researcher Dalbar, this disparity can largely be attributed to investors buying and selling at the wrong times. In other words, when left to their own devices, investors tend to buy into greed and sell into fear. This only works against them in the long run.

These mistakes may seem harmless in the moment. But over time, they can mean the difference between achieving your goals and falling short.

The right financial advisor can help you develop a long-term investment plan and stick to it—especially during periods of discomfort—so emotionally driven decisions don’t erode your nest egg.

Benefit #3: A Financial Advisor Can Save You Time, Energy, and Stress

Lastly, working with a financial advisor can save you time, energy, and useless worry. In some cases, it can even improve your overall happiness level.

According to a recent survey from Herbers & Company, clients who work with a financial advisor tend to be happier than those who don’t. Moreover, happiness levels tend to increase alongside net worth.

Specifically, researchers found that happiness levels significantly improved for financial advisor clients with at least $1.2 million in assets. Based on the study’s findings, this is because higher-net-worth individuals and families are more likely to suffer from decision paralysis.

Ultimately, personal financial management requires time, energy, and expertise. Delegating these decisions to a trusted financial advisor can help you protect your resources, so you can focus on what you love and do best.

For many affluent individuals and families, this is the true value of financial advice.

Benchmark Wealth Management Can Help You Discover the True Value of Financial Advice

As a fiduciary financial advisor, Benchmark Wealth Management provides our clients with holistic financial planning and investment management solutions. We strive to make your life better by offering unmatched client care and attention.

If we can help you develop a long-term financial plan and discover the value of financial advice, please don’t hesitate to get in touch. We’d love to hear from you.

 

The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. Material discussed is meant to provide general information, and it is not to be construed as specific investment, tax, or legal advice

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional. He holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. Thomas earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

In this article, we’re sharing five tips for surviving a bear market.

By Richard W. Stout III and Thomas Britt

It’s been a trying year for investors so far. In June, the S&P 500 Index officially, albeit temporarily, entered bear market territory. The index then went on to return over 9% in July, marking its strongest month since November 2020. Meanwhile, record-high inflation continues, and interest rates are on the rise.

Indeed, recession fears are mounting as investors grow increasingly concerned about the Fed’s ability to achieve a soft landing. Yet the fate of the U.S. economy may ultimately depend on variables outside of the Fed’s control—for example, Russia’s ongoing war in Ukraine and global supply chain disruptions.

No one can predict with certainty how the rest of this year will unfold. However, since World War II, the U.S. has experienced a bear market about once every 5.4 years. Meaning, no matter what the future holds, long-term investors would be wise to prepare for the possibility of a major market downturn.

Consider these five tips for surviving a bear market (and thriving over the long run):

#1: Focus on What You Can Control

Experience has taught us that long-term investors can be financially successful no matter how the market behaves. In other words, surviving a bear market comes down to focusing on what you can control—and ignoring what you can’t.

Here are a few examples of things you can control:

• Savings rate
• Retirement plan contributions
• Asset allocation
• Risk management

Savings Rate

First, consider giving your emergency fund a boost. Indeed, volatility and an uncertain economic future can affect more than just your investments.

A downturn may also mean layoffs, downsizing, and restructuring as companies revise their growth expectations. Having extra cash on hand can help you weather a potential financial setback without going into debt or prematurely dipping into your retirement funds.

Most financial planners suggest saving enough cash to cover at least three to six months’ worth of living expenses. However, depending on your circumstances, you may want to save more than the rules of thumb suggest.

Retirement Plan Contributions

Volatility can be scary, especially for those in or approaching retirement. As you watch your account balances fluctuate, you may feel the urge to pull back, stop investing, or even go to cash. Yet when it comes to surviving a bear market, attempting to time the market rarely produces better results than staying the course.

One way to stay on track towards your goals is to automate your retirement plan contributions. Continuing to contribute during a bear market – or even increasing your contributions – will position these dollars for growth when the market rebounds.

Asset Allocation & Risk Management

Asset allocation refers to the mix of investments you hold based on your financial goals and tolerance for risk. Studies show that asset allocation can be one of the biggest determinants of portfolio performance over time.

As asset classes perform differently, your portfolio can drift from its target asset allocation. Depending on how far it drifts, your portfolio may be too risky—or not risky enough—to achieve your goals.

We periodically rebalance your portfolio to its target weights to help ensure you’re not taking on unnecessary risk in the event of a bear market. This can also help ensure you’re well positioned for the ensuing recovery.

#2: Look for Tax Planning Opportunities

It’s never fun to watch your investments lose value, even if the losses are only on paper. However, surviving a bear market may mean taking advantage of the tax planning opportunities it often creates.

For example, you may want to consider harvesting losses to offset capital gains and reduce your year-end tax bill.

Selling an investment that’s worth more than what you originally paid for it results in a capital gain. In most cases, this gain is subject to your ordinary income tax rate or the capital gains tax (assuming you don’t hold the investment in a qualified account).

At the same time, you can sell investments that have declined in value below your cost basis to lock in losses. You can then use these losses to offset capital gains and reduce your tax liability. You can also carry unused losses forward to future years, making this a useful strategy even in years you don’t have gains.

Another tax planning strategy to consider during a bear market is a Roth conversion.

The IRS allows individuals—regardless of income—to convert a traditional IRA to a Roth IRA. The amount you convert is taxable at your ordinary income tax rate. Thus, taking advantage of this strategy during a bear market may help minimize what you owe Uncle Sam.

On plus side, any future withdrawals you make from a Roth IRA are tax-free, assuming you’re at least 59 ½ years old and meet the 5-year rule. Moreover, Roth IRAs have no required minimum distributions (RMDs). That means your funds can continue to grow tax-free throughout retirement until you need them.

While potentially valuable, tax-loss harvesting and Roth conversions can be complex tax planning strategies. A trusted financial advisor or tax professional can help you determine if these strategies make sense for you.

#3: Keep Bear Markets in Perspective

Market downturns can be hard to stomach, no matter how much investing experience you have. Nevertheless, surviving a bear market often requires investors to maintain a healthy perspective.

First, it’s important to remember that bear markets are normal. According to research from Hartford Funds, the S&P 500 Index has had 26 bear markets since its inception. On the other hand, there have also been 27 bull markets. While stocks lose 36% on average in a bear market, they gain 114% on average in a bull market.

Meanwhile, bear markets tend to be short-lived compared to bull markets. The average length of a bear market is 289 days, compared to 991 days for the average bull market. Over the last 92 years of stock market history, bear markets have comprised only slightly more than 20 of those years.

In other words, throughout history, stocks have risen 78% of the time. Remembering that stocks tend to rise far more often than they fall may help you keep challenging markets in perspective.

#4: Be Aware of Your Emotional Biases

Human beings are hardwired to make emotionally driven decisions. Unfortunately, emotional decision-making can be problematic when it comes to surviving a bear market.

The negative emotions you may experience in a bear market can leave you susceptible to overstating the risks of the situation because you are gauging it based on the strength of your feelings. Your fears may be amplified by stories of how bad things are and how much worse they may get. This can compromise your ability to assess the likelihood of future developments, with the strength of your feelings outweighing the strength of evidence.

Do your best to avoid whatever it is that provokes an emotional response. Turn off financial market news and check your portfolio less frequently. Avoid lengthy “what-if” conversations with people about the market and what may or may not happen next. It’s also wise to hold off on making any investment decisions, as these will likely be driven by the feelings you are experiencing.

Keeping your emotions in check can be challenging, especially when it comes to your money. But it’s not impossible—even in a bear market.

One of the best ways to avoid the pitfalls of emotional investing is to stick to your long-term financial plan in good times and bad. A comprehensive plan for your wealth removes emotion from the equation, so you can make smart decisions for your family and future.

#5: Surviving a Bear Market May Mean Asking for Help

Finally, if surviving a bear market feels like more than you can handle on your own, consider enlisting the help of a trusted financial advisor like Benchmark Wealth Management. We can help you develop a financial plan and investment strategy to keep you on track towards your financial goals. Additionally, we proactively recommend strategies to help you minimize your tax bill and ultimately achieve financial freedom.

To learn more about how we may be able to help, please contact us. We’d love to hear from you.

 

The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. Material discussed is meant to provide general information, and it is not to be construed as specific investment, tax, or legal advice

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional and holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. He earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

By Richard W. Stout III and Thomas Britt

If you’re doing well financially, treating yourself occasionally or helping a loved one in need may be something that fulfills you and brings you joy. However, these actions can become problematic when they happen repeatedly and begin to take a toll on your financial life. To stay on track towards your financial goals while maintaining strong relationships with the people closest to you, it’s often necessary to set and maintain healthy money boundaries.

What Are Money Boundaries?

In general, boundaries define what you’re willing—and more importantly, unwilling—to accept from yourself and others. They provide a way to maintain your identity and wellbeing within your personal and professional relationships.

More specifically, money boundaries are the limits you set for your finances. In some cases, you may set financial boundaries for yourself. For example, you may have a personal budget that guides your spending each month.

In other cases, you may need to set money boundaries with others. This is especially true if you have people in your life who depend on you for financial support or relationships in which money frequently changes hands.

It’s important to note that financial boundaries aren’t the same thing as financial goals. However, the limits you set for yourself and others can play a major role in your ability to reach your financial goals and achieve financial freedom.

Why Are Financial Boundaries Important?

Among other factors, your upbringing and culture largely influence how you think and feel about money. For instance, if your parents had few limits around their finances, you may have difficulty setting healthy money boundaries yourself.

Setting financial boundaries is important for a variety of reasons. First, it helps prevent the people in your life from taking advantage of you. When family and friends know you have no limits when it comes to money, they’re more likely to ask for financial support.

Worse yet, some people may realize they can take from you without your permission. If you’ve ever loaned your credit card to a family member or coworker, you know what a slippery slope this can be.

Setting healthy limits is also important for your personal financial success. Indeed, you may have a responsible financial plan in place. However, if you’re constantly deviating from that plan to make impulse purchases or help loved ones, you’re likely not making much progress towards your financial goals.

Ultimately, setting and maintaining appropriate money boundaries is essential for your future financial success. Fortunately, if you’ve been lax about money in the past, it’s never too late to set limits for yourself and others.

How to Set Healthy Money Boundaries for Yourself

If you’ve never set money boundaries before, you may find it helpful to start by setting limits for yourself. It’s often easier to say no to yourself than to say it to others.

First, examine your personal financial habits. Are you disciplined when it comes to your money? Or do you have no idea where your money goes each month?

A quick look at your spending habits versus your income can help you identify potential areas for improvement. How much do you spend each month, and how much do you save? If you don’t have an emergency fund or retirement savings, that may be an indication that you’re overspending.

In addition, you may want to calculate your net worth. Put simply, your net worth equals your financial assets (cash, investments, and other property) minus your liabilities (debt).

Ideally, your net worth should increase over time as you accumulate wealth and pay down debt. If this isn’t the case—or your net worth is negative—you may need stronger money boundaries.

Once you’re aware of your current financial picture and habits, you can determine if you need to set new limits for yourself. For example, you may need to start tracking your spending more closely to avoid overspending. In some cases, you may want to take more extreme measures, like cutting up your credit cards.

You may also find that working with a financial advisor or coach is necessary. An experienced financial professional can help you set and enforce healthy money boundaries and financial goals, so you ultimately make better financial decisions.

Setting Healthy Money Boundaries with Others

After you’ve set clear money boundaries for yourself, the next step is to assess your money habits with others. In other words, how often are you giving or lending money to those around you without getting anything in return?

In some cases, giving or lending money to loved ones may not be a problem. For example, if your children are minors, their financial needs are likely built into your budget. Similarly, giving to your church or favorite charity may be a planned expense that doesn’t take a toll on your financial life.

On the other hand, you may have people in your life who are constantly taking from you in an unhealthy way. For instance, you may find yourself always treating certain friends to lunch, but they never return the favor. Or you may have family members who always need financial assistance but never seem to get back on their feet.

Setting money boundaries with others is necessary when their bad money habits or demands impede your financial progress. Many of us enable loved ones for far too long because we’re afraid to have a difficult conversation. Telling someone you care about “no” can also be guilt racking.

Still, it’s important to remember that failing to set firm boundaries with those around you doesn’t help you or them in the long run. If your goal is to be financially free one day, the best thing you can do today is learn to say no.

Communication Is Key

Lastly, be sure to communicate your new money boundaries to the people in your life who need to hear them. It’s always easier to stick to good habits when everyone knows the rules of the game.

For example, if your adult child has been living at home since they graduated college, they may not know that they’re taking a financial toll on your life. It may be helpful to have a calm discussion with them about how much they add to your monthly expenses. Then, you can let them know that you expect them to contribute going forward (or find their own accommodations).

At the same time, it’s important to be honest with others about why you’re saying no to them, whether it’s turning down a lunch invitation with a friend or telling a family member that you can’t lend them money. The more consistently you stand your ground, the less likely they are to test your limits.

A Trusted Advisor Can Help You Set and Maintain Healthy Financial Boundaries

If you find it difficult to stick to your new money boundaries, consider working with a trusted financial advisor. In addition to helping you set clear limits around your finances, an advisor can help you make better financial decisions and develop a plan that helps you achieve your financial goals.

Benchmark Wealth Management provides holistic financial planning services for high-net-worth professionals and retirees. To speak with a member of our team, please don’t hesitate to get in touch.

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional and holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. He earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

This time of year, financial planning may be the last thing on your mind. Yet before summer sets in, consider using this opportunity to recommit to your financial and estate plans.

By Richard W. Stout III and Thomas Britt

It’s hard to believe that the year is almost half over. It feels like just yesterday we were talking about end-of-year tax planning and setting goals for the year ahead. Indeed, time may be passing more quickly than any of us would like. Nevertheless, it’s important not to lose sight of our priorities—especially with the lull of summer closing in.

Of course, we firmly believe in taking time to disconnect and unwind by yourself or with loved ones. However, if your personal or financial circumstances have changed since the start of the year, consider taking a moment to revisit your financial and estate plans. By making any necessary changes now, you can enjoy peace of mind this summer, knowing your plans are aligned with your needs and goals.

Before recommitting to your financial and estate plans, ask yourself these three questions:

#1: Have my personal circumstances or family dynamics changed?

For many of us, life stood still during the pandemic—or it at least felt that way. Now, with life returning to normal, you may finally be moving forward with your pre-pandemic plans. That may include planning a wedding, expanding your family, or launching a new business in a less threatening environment.

At the same time, the pandemic forced many older Americans to reevaluate their retirement plans. Indeed, millions of baby boomers retired early due to the Covid-19 pandemic, either by choice or necessity. Meanwhile, many more workers have quit their jobs, changed jobs, or are looking for new jobs as The Great Reshuffle presses on.

Whether at home or at work, if your circumstances have changed, it’s important to revisit your financial and estate plans. First, an expansion of your family may prompt changes to your beneficiaries and other end-of-life wishes. In addition, any changes to your career path or retirement timeline may warrant a change to your savings rate and investment plan.

The bottom line is your financial plan is a living document that changes as you do. If you’ve experienced any major life changes since the last time you updated your financial plan, now may be the right time to revisit it.

#2: Have my financial goals changed?

Financial goals are often generic, especially if they’re way off in the distance. For example, you may be saving for retirement but have no concrete plans for when you’d like to retire. Or perhaps you dream of buying a vacation home, but you’ve never taken the time to decide where or how.

There’s nothing wrong with having open-ended plans. However, as your circumstances and values change, your goals may change, too. At a minimum, they may become more focused.

If your goals have changed since the last time you updated your financial and estate plans, be sure to discuss them with your financial planner and estate planning attorney. Your goals can have a meaningful impact on your overall financial plan, including your investment approach. In addition, updating your estate plan to reflect your new goals will help ensure your assets are distributed—and your legacy endures—according to your wishes.

#3: Have external circumstances changed?

After a relatively calm 2021, 2022 has been anything but. Market volatility is spiking, inflation is sky-high, and interest rates are on the rise. Meanwhile, the bond market offers little solace to investors seeking safety.

As long-term investors, we don’t recommend changing your investment plan because of market movement. Indeed, studies show that investors who try to time the market often get worse results than those who stick to their investment strategy over time. Still, evolving external circumstances may have an impact on your plans, especially when they affect the tax code or other regulatory policies.

For instance, the SECURE Act of 2019 made a number of changes to the way Americans save for retirement and draw down their retirement accounts. As an example, the SECURE Act pushed back the age retirees must begin taking required minimum distributions (RMDs). In addition, it changed the rules for inherited IRAs. Now, most non-spousal beneficiaries must draw down account balances within 10 years of taking ownership.

Policy changes like these can meaningfully affect your financial and estate plans. A trusted financial planner can help you adjust course as the world around you changes.

You Don’t Have to Go It Alone

Ideally, our financial and estate plans reflect life’s many changes–marriage, children, retirement, and ultimately, the legacies we leave behind. Yet as time passes, our circumstances, family dynamics, and goals can change dramatically and unexpectedly. A mid-year check-in can help you ensure your financial plan is still in line with the life you have, as well as the life you want.

The good news is you don’t have to go it alone. A trusted financial advisor like Benchmark Wealth Management can help you create a financial plan that reflects your personal circumstances, values, and goals. In addition, we’ll help you proactively update your plans and your world changes. If you’d like to speak with a member of our team about developing a financial plan that can help you reach your goals, we encourage you to get in touch.

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional and holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. He earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.