As we embark on a new year, there's no better time to take control of your financial future by thoroughly reviewing your cash flow. If having a vision and establishing goals is the touchstone for a financial plan, this essential financial practice sets the foundation for achieving your goals and ensuring long-term financial stability.
Anyone who has gone through a divorce knows how emotionally challenging and financially complex it can be. While attorneys handle the legal aspects, a Certified Divorce Financial Analyst® focuses specifically on the financial implications of divorce. This specialized designation equips professionals with the expertise to guide clients through the intricate financial aspects of divorce proceedings, ensuring better outcomes for their financial future.
Anna Marie Mock, a fee-only certified financial planner at Highland Financial Advisors, discusses the dynamic interplay between art and science in financial planning. Drawing inspiration from Leonardo da Vinci's philosophy that "everything connects to everything else," she emphasizes that financial planning is an art involving subjective goal-setting and a science-driven by objective analysis tools. In this video, Anna explains how the scientific method can be applied to financial planning, using equity compensation as a concrete example.
What are your thoughts, feelings, and beliefs about money? What about your partner, and do they differ from your own? Sometimes, the conflict we experience around money in our personal lives can be attributed to incongruent money scripts with those with whom we share finances. Let’s dive into the term money script and how understanding it can help us achieve our financial goals.
Old ways of tracking finances included using a pen and paper combined with envelopes to “bucket” different spending needs. Then came along Excel, where people began using spreadsheets to keep their budget and spending. Today, we have apps available on our phones with software to create the budget for you and even track each transaction on your credit card.
Gap years are no longer just for recent graduates but are now for seniors who may not have had the time to pursue their passions or try something new during their working years. For many retirees coming from a work-centric culture, retirement may feel like crossing the finish line, followed by winding down and boredom.
When it comes to investing and managing your finances, many people wouldn’t think that the skills and mindset needed for success would be similar to the skills and attitude necessary for success with martial arts. However, I have come to realize that investing and practicing Brazilian Jiu-Jitsu, a type of Mixed Martial Art (MMA), have much more in common than one would think. Both require similar skills and disciplines to be successful.
The recent release of the American Families Plan marks the third part of President Biden's Build Back Better Initiative. Several proposals make up this plan, but it is important to note that they are just proposals at this point and will have to make their way through Congress, where legislators will undoubtedly modify many of the provisions.
When we help clients with their cash flow at Highland Financial, we pay close attention to credit card debt for a reason. Spending on everyday purchases with a credit card to earn travel points or cashback is a great way to get rewarded for things you would typically be paying for anyway. However, the caveat is that a client must pay off their balances in full each month and keep their excess spending in check. Otherwise, any perk you receive from the credit card company will be quickly negated by paying exorbitant amounts of interest.
Financial elder abuse involves family members, caregivers, or professionals that illegally exploit an older individual for their monetary assets and property for their financial gain. It is estimated that elder financial abuse costs older Americans upwards of $36 billion. According to the National Council On Aging, 1 in 10 Americans aged 60+ have experienced some form of abuse, but only 1 in 14 cases are estimated to be reported to authorities.
For many people utilizing a Roth IRA to help save for retirement, they enjoy the benefits of tax-free growth and tax-free withdrawals after the age of 59 ½. An additional advantage of the Roth IRA, in contrast to a Traditional IRA, is that you are not required to take minimum withdrawals at age 72, enabling the account to continue to grow tax-free.
In 2019, HIGHLAND instituted the sabbatical benefit for each employee to take a month off and detach from work every seven years. I was due to take the first sabbatical in 2020, but due to COVID19, I postponed it to 2021. From February 20th to March 20th, I took a one-month sabbatical from work. My wife and I rented a place on the beach on the west coast of Florida.
With President Biden signing the American Rescue Plan legislation into law last week, here is a high-level look at some of the bill's main provisions. There are many nuances to each of the major points highlighted, and this article only scratches the surface. As always, it is wise to consult with your financial advisor and tax professional to determine what you qualify for depending on your specific situation.
As world economies continue to grow and evolve, it is becoming increasingly evident that China is playing a larger role in that growth. Some projections have China's GDP reaching $64 trillion by 2030, up from $14 trillion in 2019. By almost any measure, the Chinese economy is experiencing expansion that will likely continue in the decade to come. Still, it also has unique headwinds that it will need to overcome as well.
Restricted Stock Units (RSUs) are a form of stock-based compensation that can potentially provide a windfall but may come with a sizable tax bill. RSUs have two important dates, the Grant Date and Vesting Date(s). The Grant Date is when you are awarded the RSUs. The Vesting Date(s) is when you are transferred ownership of the shares and recognize the market value as ordinary income on your tax return.
With the news this week of Elon Musk investing $1.5 billion into bitcoin, along with Mastercard and Bank of New York announcing they will be supporting cryptocurrency on their networks, digital currencies have been getting a lot of attention. For those new to the altcoin world, it helps to understand the basics.
Federal student loans are efficient forms of debt because the interest is tax-deductible, and the interest rates are relatively low compared to other forms of debt like credit cards. In addition, student loans are designed as an investment in yourself and provide the ability to earn more through your human capital in the future.
In the past, we have discussed the benefit of a Health Savings Account or HSA. As a refresher, HSAs are designed for an individual or family to save pre-tax money up to the annual limits for either short-term medical expenses or long-term retirement planning.
