Author: Gene Gard

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Personal Financial Planning

Plant seeds for success. (Photo: Micheile Henderson | Unsplash)

Most people realize the importance of saving and investing for the future, but only 32 percent of Americans have a written financial plan in place to help them prioritize their goals and track their progress.

If you’ve been putting off establishing a financial plan, you may want to reconsider. Following are five ways a comprehensive financial plan can help improve your financial outlook.

1. A financial plan serves as a map to guide you toward achieving your financial goals.

One of the benefits of creating a personal financial plan is that it identifies and prioritizes your goals and objectives. Achieving major goals such as planning for retirement, paying for a child’s college education, making a large purchase, paying down debt, etc. requires focus and determination. A financial plan can guide your decision-making and coordinate the various elements of your financial life to help ensure they’re working together toward achieving your goals. 

2. A financial plan can help you feel more confident about your future. 

A study conducted by Charles Schwab indicated that 54 percent of people with a financial plan feel confident they’ll be able to reach their financial goals, yet only 18 percent of those without a plan have the same level of confidence.

Creating a comprehensive financial plan to guide your decision-making can be a big step toward helping you feel more confident and in control of your financial future. 

3. A financial plan can assist in protecting your family and managing your risk. 

A comprehensive financial plan not only helps you build wealth but can also help you protect it. If not properly planned for, risks such as a medical emergency, an accident, a lawsuit, or a natural disaster can quickly jeopardize everything you’ve worked so hard to accomplish. 

A thorough and well-designed financial plan will include personalized insurance and asset protection strategies to help protect your wealth and loved ones from unexpected risks. 

4. A financial plan can guide your investment strategy. 

Without a financial plan in place, it can be difficult to determine whether your investment strategy meets your ever-evolving needs and goals. Instead, a well-crafted plan recognizes that your investments play a crucial role in supporting you as you navigate the different stages of your financial life. 

By having a financial plan in place, you can implement long-term investment strategies that allow you to take advantage of opportunities during periods of volatility while also protecting your assets against loss during market downturns. 

5. A financial plan can assist you in leaving a financial legacy.

If your goals include leaving a financial legacy for the people and causes that matter most to you, it’s important to have a proper plan in place. Incorporating estate planning as part of your overall financial strategy can help ensure your assets are distributed according to your wishes and in the most tax-efficient manner possible. 

Your financial plan can also help you identify opportunities to support charitable causes both during your lifetime and after your death, such as through a donor-advised fund or charitable trust. 

Gene Gard, CFA, CFP, CFT-I, is a Partner and Private Wealth Manager with Creative Planning. Creative Planning is one of the nation’s largest Registered Investment Advisory firms providing comprehensive wealth management services to ensure all elements of a client’s financial life are working together, including investments, taxes, estate planning, and risk management. For more information or to request a free, no-obligation consultation, visit CreativePlanning.com.

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Relax This Summer

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Summer is a time of afternoons by the pool, barbecues, and relaxation. It’s a chance to take a break from your usual routine and enjoy outdoor hobbies and time with loved ones. As important as it is to enjoy summer while you can, it’s equally important to stay financially focused and not lose sight of your financial goals. The following tips can help you remain financially on track throughout the summer months.

1. Automate your finances.

Need a break from constantly managing your finances? Give yourself some time to kick back and relax this summer by automating your accounts and investments. Here are a few ways to add automation to your financial routine so you can spend more time poolside.

• Set up automatic debits with your credit card company, loan servicer, utility companies, etc. This practice removes the stress of having to schedule payments each month. Just make it a point to regularly check in on your accounts and ensure the correct amounts have been debited.

• Set up bill pay with your bank. For any service providers that don’t offer automatic debits, consider setting up direct payments through your checking or savings account. It’s still easier than mailing a check each month.

• Automate your retirement plan contributions through payroll deferrals.

• Establish a direct transfer from your paycheck to your savings account.

2. Review your beneficiaries.

Checking this important task off your list can provide you with peace of mind this summer. Beneficiaries can quickly become outdated as your life evolves and your relationships change over time. That’s why it’s important to periodically review your beneficiaries on all accounts, investments, trusts, and other estate planning documents. Also, make sure the custodians you’ve designated to care for your children are still the people you wish to name and that your successor trustee remains relevant.

3. Rebalance your portfolio.

Use the change in seasons as a reminder to review your asset allocation and rebalance if necessary. Rebalancing to your original (or an updated) asset allocation helps lock in gains from top-performing sectors and ensure your portfolio remains in line with your investment objectives and risk tolerance. Contact your wealth manager for assistance.

4. Check in on your insurance.

Want to feel extra carefree this summer? Review your insurance policies to ensure you’re covered should something unexpected happen. Your wealth manager can help review your existing insurance policies and identify any gaps in coverage.

5. Plan for summer expenses.

Don’t let summertime expenses catch you off guard. Make a plan to cover the added costs of summer vacations, kids’ camps, childcare expenses for when the kids are out of school, etc. Having a plan in place allows you to comfortably spend a bit more without negatively impacting your other financial goals. If you have a dependent care FSA, this can be used to pay for summer day camps (in addition to daycare and preschool) in a pre-tax manner, assuming the expenses are allowing you to be gainfully employed or look for work.

6. Take steps to lower your taxes.

The midyear point is a great time to check in on your tax planning strategies. Your wealth manager can help you take advantage of tax-loss harvesting, asset location, charitable giving, and other strategies to help lower your annual tax liabilities.

Gene Gard, CFA, CFP, CFT-I, is a Partner and Private Wealth Manager with Creative Planning. Creative Planning is one of the nation’s largest Registered Investment Advisory firms providing comprehensive wealth management services to ensure all elements of a client’s financial life are working together, including investments, taxes, estate planning, and risk management. For more information or to request a free, no-obligation consultation, visit CreativePlanning.com.

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How to Prepare for Retirement as a Stay-at-Home Spouse

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A common misconception is that if you’re not working outside the home, you’re not eligible to save for retirement. In reality, a stay-at-home spouse can have a significant impact on a couple’s retirement savings. Here are six tips to help you prepare for retirement as a stay-at-home spouse.

1. Establish a financial plan.

Establishing a financial plan should be the first step you take toward establishing financial goals and a savings strategy.

A comprehensive financial plan is essential to growing your wealth, avoiding potential pitfalls, and remaining on track toward achieving your goals. A plan can help increase your level of confidence in making financial decisions and ensure your family will be provided for in unexpected circumstances.

2. Focus on paying off debt.

High-interest debt, such as credit card balances, can make a big impact on your ability to save for the future. Interest charges and late fees can add up and quickly result in debt becoming unmanageable, so it’s important to pay these balances off before taking steps to save.

Two effective strategies for paying off debt include the snowball method, which involves paying off your smallest debt balance as quickly as possible, or the avalanche method, in which you begin paying on whatever loan has the highest interest rate. Once that loan is paid off, you move on to the loan with the next-highest interest rate until all loans are paid off.

3. Establish an emergency fund.

Often, high-interest debt results from unexpected expenses you’re unable to cover from normal cash flow, such as a job loss, medical expenses, or an emergency home repair. In a household with a stay-at-home spouse and only one income, it’s important to have at least three to six months of living expenses saved in a short-term, liquid emergency fund that’s available to cover any unexpected expenses. Having immediate access to funds can help you avoid taking out high-interest debt or tapping into your retirement savings in an emergency.

4. Save in a spousal IRA.

Spousal IRAs are retirement savings vehicles specifically intended for non-working or part-time working spouses who would otherwise not have access to a qualified retirement account. A stay-at-home spouse may have the ability to contribute to a spousal IRA if he or she files a joint tax return with a spouse that has taxable compensation. Both traditional and Roth spousal IRAs are available, and the 2024 annual contribution limits are the same: $7,000 for those under age 50 and $8,000 for those age 50 and older.

5. Increase contributions to the working spouse’s 401k.

Although retirement accounts are held in individual spouses’ names, funds contributed during the marriage are considered marital assets, meaning they’re generally considered the property of both spouses. Given this, it’s beneficial for couples with a stay-at-home spouse to maximize contributions to the working spouse’s employer-sponsored retirement plan.

In 2024, individuals who haven’t yet reached age 50 can contribute up to $23,000, and those age 50 and older can make an additional $7,500 catch-up contribution for a total contribution of $30,500. At a minimum, it’s important to contribute at a rate that allows you to qualify for the full employer matching contribution.

If cash flow doesn’t allow you to contribute the maximum to start, consider raising your deferrals by 1 percent to 2 percent each year. You probably won’t even feel the impact on your take home pay, yet these small increases can make a big difference in the balance you accumulate over the long run.

6. Save in a taxable account.

Once you’ve saved the maximum in your 401k and spousal IRA, consider saving additional funds in a taxable brokerage account. While 401k and IRA assets have limitations on withdrawals prior to retirement, funds in a taxable brokerage account are accessible at any time. In addition, saving in a variety of retirement accounts with different tax treatment (e.g., taxable, tax-deferred and tax-free) provides you with maximum flexibility to structure a tax-efficient withdrawal strategy in retirement.

Gene Gard, CFA, CFP, CFT-I, is a Partner and Private Wealth Manager with Creative Planning. Creative Planning is one of the nation’s largest Registered Investment Advisory firms providing comprehensive wealth management services to ensure all elements of a client’s financial life are working together, including investments, taxes, estate planning, and risk management. For more information or to request a free, no-obligation consultation, visit CreativePlanning.com.

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Getting Children Interested in Philanthropy

Encourage charitable giving. (Photo: Katt Yukawa | Unsplash)

Cultivating the virtue of charitable giving in your children is an endeavor that’s never too early to start. The following tips can help you pass along your philanthropic values to the next generation. 

1. Lead by example. 

One of the best ways to instill values in your children is by modeling them. Talk to your children about the causes you support with both your money and time. Don’t worry about bragging; instead, be honest about what you do and the impact your actions have on the lives of others. It’s important that your children know how much you do for others. 

2. Involve your children in charitable decisions. 

Make giving to charity a family event by involving your children in charitable decisions. If you have a budget for charitable donations, give your kids a say in how to allocate a portion of the funds. Websites such as Charities Aid Foundation and Charity Navigator can help you discover a wide range of charitable organizations that align with your children’s passions, values, and interests. 

3. Volunteer together. 

Once they’re older, your children can volunteer with you at organizations such as food pantries, animal shelters, churches, hospitals, etc. Volunteering alongside your kids can be a great way to get them excited about helping others. However, even younger children have an opportunity to help others. Consider taking your child to help a neighbor with a small job, such as raking leaves or shoveling a driveway. You can also encourage young children to “pay it forward” by doing something nice for someone else each time someone does something nice for them. 

4. Help your children develop their own charitable goals. 

Talk with your children about their values and what’s important to them, then find opportunities for them to make an impact. Maybe your son loves reading and wants to share his joy by starting a book drive. Or perhaps your daughter has dreams of someday becoming a veterinarian and would like to walk dogs at your local shelter. Your kids will be more motivated to support causes that are important to them. 

5. Encourage your children to donate their own money. 

One effective way to teach children the importance of giving to others is by implementing a “three-bucket” strategy. Consider offering your kids an age-appropriate allowance and teaching them to separate it into three categories — save, spend, and give. Not only does this practice teach your children that a portion of their money should be used to help others when possible but it also helps them learn the importance of saving for the future. 

Gene Gard, CFA, CFP, CFT-I, is a Partner and Private Wealth Manager with Creative Planning. Creative Planning is one of the nation’s largest Registered Investment Advisory firms providing comprehensive wealth management services to ensure all elements of a client’s financial life are working together, including investments, taxes, estate planning, and risk management. For more information or to request a free, no-obligation consultation, visit CreativePlanning.com.

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Buying a Home?

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In a seller’s market, buyers can end up getting the short end of the stick. Housing inventories have yet to revert to normal levels, and the demand is high for mid-price homes, often driving multiple offers on many properties. If a buyer is lucky enough to get an accepted offer, they still need to contend with the reality of higher interest rates taking a bite out of their household income (unless they’re an all-cash buyer).

So, what’s a buyer to do? Before you start looking at homes, you need to know three key numbers: what the bank will lend you, what you can afford, and what you’re willing to pay. It’s essential to understand the difference between these three numbers, or you might end up biting off more than you can chew.

1. What Will the Bank Lend You?

Unless you’re holding enough cash to buy a house outright, your first step is getting preapproved for a mortgage. This is especially important in a hot real estate market. When there are multiple offers on the table, sellers may reject offers outright that aren’t accompanied by a preapproval letter.

But don’t take the first mortgage deal you’re offered. Even if you have an existing relationship with your local credit union or community bank, it’s in your best interest to get at least one comparison quote before you sign on for a mortgage. A rate difference of as little as 0.25 percent can really add up over 30 years. While you can shop different lenders for the best terms and rates, a better option is to use a mortgage broker. They can save you time by shopping different lenders on your behalf.

Because brokers work with multiple lenders, they often have more flexibility in how they structure your loan. They can alter terms like cash down, interest rates, closing credits, and loan duration, which will likely result in a mortgage that better fits your financial needs.

2. What Can You Afford?

Unfortunately, regardless of which lender you work with, you can’t rely on them to tell you what you can afford. While they will tell you what they will lend you, that is by no means a bellwether for what you should spend because the calculation they perform is essentially a measure of risk, not a measure of cash flow.

Credit scores are used as an indicator of how much risk a lender assumes when they sell you a mortgage. Not only can a very low credit score impact your ability to get a mortgage, but it will also factor into the interest rate you’ll pay. The lower your score, the higher your interest rate will be. That translates into a larger mortgage payment overall.

3. What Are You Willing to Pay?

The last number you need to know is what you’re realistically willing to pay.

This number will change from property to property, depending on what features the home has and what projects you may have to take on. Understand that in a seller’s market, you’ll likely have to pay above list price, and you may have to pay above the property’s appraised value.

If you’re willing to pay more than the appraised value of the home, you’ll need more cash in the deal because your lender won’t cover the gap between the offer price and the appraised value with a mortgage.

This can put you in a sticky situation if you have little leftover cash to cover the unexpected expenses that inevitably come with home ownership.

Keep a Healthy Cash Reserve on Hand

Home buying is a stressful process, but owning a home without adequate cash reserves is a recipe for disaster. Regardless of the condition of the real estate market, it’s important to keep a healthy cash reserve on hand to handle emergency expenses without going into credit card debt.

It’s a tough market for buyers right now. But if you go into the home buying process armed with the appropriate information, you’ll be well positioned to make a strong offer on a property that meets your needs and budget. In the end, your perfect house is probably the one that allows you to sleep soundly in the short term and helps you build value over the long term.

Gene Gard, CFA, CFP, CFT-I, is a Partner and Private Wealth Manager with Creative Planning. Creative Planning is one of the nation’s largest Registered Investment Advisory firms providing comprehensive wealth management services to ensure all elements of a client’s financial life are working together, including investments, taxes, estate planning, and risk management. For more information or to request a free, no-obligation consultation, visit CreativePlanning.com.

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Why Planning for Retirement Is About More Than Money

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As you plan for retirement, it’s important to focus on having enough assets to live the life you want. Money and assets are just tools we use to express personal values and highlight what we view as important.

In the years leading up to retirement (or at any stage of life), be sure to focus on the things that will bring you joy, meaning, and fulfillment throughout the next chapter of life.

Health

You may have scrimped, saved, and invested your entire adult life to prepare for retirement, but what does it matter if you’re not healthy enough to enjoy your golden years? As you plan for your financial future, don’t forget to take care of your physical health.

Not only can a healthy lifestyle lead to a more fulfilling retirement but it can also help lower your retirement healthcare expenses and free up more money for enjoyable experiences. As an added potential benefit, your fitness journey may even lead to new hobbies as you transition into your retirement years.

Friends

It can be difficult to transition from the workforce, where you’re constantly surrounded by people, to a relatively solitary life. Social isolation can lead to multiple emotional and health-related issues, including depression, anxiety, and dementia. Even if you have a spouse to keep you company, you may benefit from spending time with friends outside your home.

In the years leading up to retirement, it’s important to start developing friendships with others. Consider seeking companionship through common interests. Perhaps you enjoy golfing, volunteering, or painting. Make an effort to connect with other people you encounter in these settings, and work to build some friendships prior to retiring.

Hobbies

Speaking of interests, retirees often find fulfillment by participating in hobbies. Have you always wanted to take up golf? Write a book? Try your hand at pickleball? Learn to throw a ceramic pot? Retirement is the time to do it! Don’t be afraid to put yourself out there and try something new. As you begin to explore new hobbies, try lots of new things and experiences — but don’t be afraid to quit quickly and try something new!

Purpose

Few retirees are done pursuing their goals after they leave the workforce. In fact, those who are most satisfied in retirement continue to have a clear sense of purpose in their lives — a mission that guides their actions. While it’s important to relax and have fun in retirement, it’s also important to find a sense of purpose and continue finding meaning in your daily life.

You may find purpose by continuing to work in retirement. Or perhaps you’re driven to volunteer with an organization that’s near and dear to your heart. Maybe your purpose comes from spending time with loved ones, caring for relatives, or teaching your grandchildren special skills.

It can be helpful to write down your purpose and view each action through the lens of “does this help me move toward my purpose or away from it?” You might be surprised how many decisions you make out of inertia or neglect and not in pursuit of your purpose!

Gratitude

Practicing gratitude can have a big impact on both your physical and emotional health. The benefits of gratitude include:

• Lower stress

• Improved sleep

• Lower blood pressure

• A stronger immune system

• An improved ability to identify and regulate emotions

• Higher emotional intelligence

• More positive feelings

• Better connections with others

To find more fulfillment in retirement, make an effort to regularly reflect on the people and things you’re grateful for. Be grateful for small things, such as the sun shining on your face, as well as big things, like the birth of a new grandchild. Taking time to recognize and appreciate the things that bring you joy can lead to a happier and more fulfilling life at any stage in your journey.

Gene Gard, CFA, CFP, CFT-I, is a Partner and Private Wealth Manager with Creative Planning. Creative Planning is one of the nation’s largest Registered Investment Advisory firms providing comprehensive wealth management services to ensure all elements of a client’s financial life are working together, including investments, taxes, estate planning, and risk management. For more information or to request a free, no-obligation consultation, visit CreativePlanning.com.

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Money Scripts

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The word “money” can bring up negative emotions and feelings for many people. In fact, money is the most cited factor that negatively affects U.S. adults’ mental health. Therefore, it’s important for us to reflect on our relationship with money, which can impact our financial decisions and relationships.

Many of our subconscious beliefs and attitudes toward money are developed in early childhood from our parents, environment, and socioeconomic status. For example, some children are taught that you should always save your money and try to not spend it. In other households, money is taboo and not discussed at all. Children may experience that when money is brought up it often leads to their parents arguing and creates tension.

“Financial flash points” also have a significant impact and are traumatic or emotional life events associated with money that drive our financial behaviors. For example, growing up in poverty and having uncertainty where your next meal would come from, having a parent lose their job and/or house, or parents getting divorced can make an impact on our financial beliefs as an adult.

Mental health professionals have studied the psychology of money and categorized these financial beliefs into several “money scripts.” There are four main money scripts: money avoidance, money worship, money status, and money vigilance.

Money avoidance is the belief that money is bad or that you don’t deserve money. Individuals with this belief often experience feelings of fear, guilt, disgust, or anxiety toward money. For some people, it may be difficult to accept gifts from others due to feelings of guilt. This negative association with money can create the belief that rich people are greedy.

Money worship is the belief that money is associated with freedom and the solution to all their problems. It’s the viewpoint that the more money you have, the better your life will always be. Money worshippers often seek fulfillment from buying more stuff, which can result in compulsive spending habits and never feeling satisfied.

Money status is the belief that self-worth is directly tied to net worth or financial status. There’s often a competitive nature to this belief, which can result in overspending to appear as being “better off” than others. Even though research has illustrated being too concerned about financial status has been associated with lower levels of well-being, increased anxiety, and unhappiness.

Money vigilance is the belief that money should be saved, not spent. Individuals with this money script often experience excessive wariness or anxiety about their financial future, which often prevents them from enjoying the benefits and experiences money can provide. They tend to be discreet and private about their financial status and hold the beliefs that you should work hard to earn money and people shouldn’t be given “financial handouts.”

There are notable limitations to money scripts theory, just like other human-categorizing theories such as attachment theory and the Myers-Briggs Type Indicator. While there are only four main categories studied, humans are complex, and we don’t all fall into one “box” or belief system. However, this theory provides a great framework to start reflecting on your attitude toward money and why you hold certain subconscious beliefs. This reflection can help you begin to change any mindset that may not serve you well financially and/or emotionally.

If you choose to evaluate and reflect on your own money script beliefs, it’s important to practice mindfulness. Negative emotions such as shame, guilt, and anxiety may come up during this process. Mindfulness is the concentrated effort to simply observe emotions rather than judging and reacting to them. These emotions can become a great learning experience for things holding us back that can later help us make better financial decisions.

Gene Gard, CFA, CFP, CFT-I, is a Partner and Private Wealth Manager with Creative Planning. Creative Planning is one of the nation’s largest Registered Investment Advisory firms providing comprehensive wealth management services to ensure all elements of a client’s financial life are working together, including investments, taxes, estate planning, and risk management. For more information or to request a free, no-obligation consultation, visit CreativePlanning.com.

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Business Risk Management

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Focusing time and resources into developing a strong risk management strategy can help your business prepare for the main risks that can impact its success. There isn’t a singular plan that works for all businesses, but there are a few core components that should be addressed.

Internal Controls

Your business’ strategy should include internal control policies. Internal controls are the processes and documentation used to govern your overall operations. These protocols typically promote transparency, prevent fraud, and ensure business proceedings are compliant. Incorporating internal controls can help you mitigate fraud and set a tone of accountability throughout your organization. Here are a few internal control best practices you may want to consider in your plan:

• Documenting all key business policies and procedures and making them readily accessible to all employees

• Dividing up responsibilities that involve sensitive information, compliance, and audit-related tasks so that a checks and balances system is created

• Establishing anti-fraud controls for quicker detection and prevention of workplace fraud

Cybersecurity

Cyber-related risks have grown these past few years as cybercriminals have become more sophisticated and relentless with their schemes. A solid risk management strategy accounts for the actions your organization will take should a cyber incident occur to minimize its impact as much as possible. This component may include your organization’s documentation on security protocols, business continuity plans, IT recovery plans, and more.

What’s most important is that you work with your IT team to identify potential risks and develop policies around them so your business is prepared to act and secure its systems if a data breach were to happen. The better positioned your teams are to handle a cyberattack, the less havoc such an attack could cause on your data and operations.

Insurance Options

Insurance is specifically designed to help policyholders mitigate risk — no matter the type of coverage. From protecting against physical damage to providing funds to cover a cyberattack, there’s a range of insurance types available for business owners. Regularly review your coverage options to ensure they’re still meeting your needs and that there are no gaps present. Some policies to consider:

• Commercial Property: Covers the physical aspects of your business, such as your office space and the tools used to operate

• General Liability: Covers costs related to claims involving bodily injuries or property damage to others

• Fleet Auto: Provides auto coverage for a vehicle rather than a driver so there’s more flexibility on who can drive company vehicles

• Workers’ Compensation: Offers medical care and cash benefits for employees who become injured or ill due to their work environment

• Directors and Officers (D&O): Commonly covers fees for legal needs, settlements, and financial losses when the business is held liable

• Cyber Liability: Offers financial coverage for businesses that experience a data breach or related cyber incidents

• Business Crime: Provides coverage for losses due to fraud, embezzlement, theft, forgery, or any other business crime

Building Resilience

Perhaps the most vital aspect of your risk management strategy is its ability to build resilience and adapt to new risks. To achieve this, it’s imperative that your strategy outlines actionable steps for each risk you’re aiming to mitigate. Any team members who will need to be involved in action plans should know their role and responsibilities so they can best do their job when it’s needed most.

If a certain risk should become reality for your business, be sure to assess how well your plan worked or where improvements need to be made so you can update your processes effectively and stay agile for the future. The less ambiguity you have within your strategy, the more clarity your team has to protect your business.

Addressing every risk your business will face is an impossible feat, but a comprehensive strategy could make a world of difference. Protect your business from the people and things that can harm it by making risk management a priority.

Gene Gard, CFA, CFP, CFT-I, is a Partner and Private Wealth Manager with Creative Planning. Creative Planning is one of the nation’s largest Registered Investment Advisory firms providing comprehensive wealth management services to ensure all elements of a client’s financial life are working together, including investments, taxes, estate planning, and risk management. For more information or to request a free, no-obligation consultation, visit CreativePlanning.com.

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How to Leave Your Legacy

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To leave a legacy means more than the dollars you leave in the pockets of your children. A legacy is an opportunity to have an impact after your time. You can ask yourself how you want to be remembered and what your core values are — and then put those answers into action. Here are four ways to leave a legacy for those you love.

Give back to your community.

If generosity and acts of service are among your core values, consider participating in volunteer activities with your community, which can be incredibly rewarding. You can take part in a fundraiser or donate your time or talent to a local nonprofit you’re passionate about. If you have an affinity for a particular cause, creating a charitable foundation can be a meaningful way to provide your loved ones with employment or board membership opportunities directly related to the cause you support. While a private foundation is certain to leave a powerful financial legacy, it also promotes collaboration, creativity, and continuity of your philanthropic vision. A foundation can be structured to operate indefinitely so that the lessons you leave to your heirs can be taught for generations to come.

Keep a record.

Record a video message or keep a journal. When a loved one passes away, it’s common to hear sentiments such as, “I wish I could see their face or hear their voice again.” Recording a video message is an opportunity to express your love, share your life experiences and values, and offer guidance to your loved ones. Think about answering questions such as:

• What do you love most about your family?

• What’s something you want your loved ones to remember about you?

• What do you hope the inheritance you leave your heirs will afford
them? (This can be material or immaterial.)

• What’s the most important lesson you hope your loved ones take to heart?

If a video feels too formal or induces stage fright, consider keeping a journal. Put it someplace you’ll see it often so that you can jot down daily observations, funny memories, random thoughts, and pieces of wisdom you want to pass along. There’s no need to copy edit or write multiple pages at once. Keeping a journal can be a low-pressure way of putting your personality to paper — a gift your loved ones will cherish when you’re gone (and possibly even pass along to their heirs!).

Create a will and/or a trust.

The act of creating a will and/or trust gives the absence of chaos to your heirs following your death. These documents outline who will inherit your assets as well as how and by whom they’ll be distributed. Putting your wishes in writing helps to prevent disputes and legal battles among your heirs. Additionally, a trust may be able to protect your assets from creditors, reduce estate taxes, and provide financial support to your beneficiaries. A trust can also prevent your heirs from having to participate in probate, a lengthy and often expensive formal court administration process that “proves” the legitimacy of your will after death. While far from glamorous, creating a will and/or trust is a generous and loving act of housekeeping that may spare your children from unnecessary additional suffering after your passing.

Start a family tradition.

Whether it be the smell of homemade birthday cake, music coming from the kitchen on Saturday mornings, or counting constellations from a tent under the open sky every summer, a tradition reinforces your family’s values and creates a sense of belonging. Establishing positive family traditions has proven to increase a child’s ability to form a strong sense of identity — an identity you have the opportunity to forever influence.

So, take that annual spring break trip with your loved ones. Contribute to your favorite charity and participate in their fundraising events. Record a legacy video for the important people in your life. A little preparation now will make for a meaningful transition for your heirs down the line.

Gene Gard, CFA, CFP, CFT-I, is a Partner and Private Wealth Manager with Creative Planning. Creative Planning is one of the nation’s largest Registered Investment Advisory firms providing comprehensive wealth management services to ensure all elements of a client’s financial life are working together, including investments, taxes, estate planning, and risk management. For more information or to request a free, no-obligation consultation, visit CreativePlanning.com.

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Five Retirement Tips for Procrastinators

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When it comes to fun life experiences, planning for retirement may rank just a bit higher than a root canal. However, putting off your retirement planning strategy is only going to harm you in the future. If you’ve been dragging your feet on establishing your retirement plan, now’s the time to get started.

Following are five important retirement planning strategies for procrastinators.

1. Determine how much you’ll need to retire.

The first step toward getting serious about retirement planning is to determine how much you’ll need to live in retirement. One of the best ways to arrive at this number is by working with a qualified wealth advisor to establish a comprehensive financial plan that takes into account your current financial situation, goals for the future, and any challenges with the potential to stand in your way.

Your financial plan should provide insight into your expected retirement lifestyle expenses, your estate planning goals, your tax liabilities, your investment return potential, your retirement income sources, inflation, and more. Taken together, this information can help you determine how much you may need to save to achieve your desired retirement lifestyle.

2. Evaluate your current expenses.

Are your current expenses making it difficult to save for the future? If so, it may be time to cut back. Start by tracking your spending over the last year. What patterns do you see? Maybe you spend a large portion of your income on housing. If so, does it make sense to downsize? Perhaps you carry a lot of debt. Interest rates and fees can add up, so you may want to really focus on paying off your debt. Even cutting back on smaller expenses, such as regularly eating out, can free up money to add to your retirement savings.

3. Enhance your income.

If you’ve put off planning for retirement, you may need to continue working longer in order to save. Not only does working longer allow you to set aside additional retirement savings but remaining in the workforce can allow you to delay taking Social Security benefits, which leads to a higher monthly benefit amount once you retire.

4. Contribute to a retirement account.

If you’re eligible to participate in an employer-sponsored plan but haven’t yet contributed, sign up immediately! Qualified retirement plans, such as 401ks and 403bs, provide a tax-efficient way to save for retirement. Also, many employers match a portion of your contributions, which means if you’re not saving in your employer-sponsored plan, you could be walking away from free money.

Even if you’re eligible for an employer-sponsored plan, you may want to consider saving additional dollars in an individual retirement account (IRA). In 2024, you can set aside up to $7,000 in a traditional or Roth (if your income is below a certain amount) IRA. For married couples filing jointly, your spouse can also make contributions, even if they’re not working.

5. Take advantage of catch-up contributions.

If you’re over the age of 50, the IRS allows you to make an additional $1,000 contribution. These catch-up contributions are especially helpful for those who procrastinate when it comes to saving for retirement, so make every effort to max them out.

Gene Gard, CFA, CFP, CFT-I, is a Partner and Private Wealth Manager with Creative Planning. Creative Planning is one of the nation’s largest Registered Investment Advisory firms providing comprehensive wealth management services to ensure all elements of a client’s financial life are working together, including investments, taxes, estate planning, and risk management. For more information or to request a free, no-obligation consultation, visit CreativePlanning.com.