e, being a thoughtful spouse, paying real estate taxes, and
orrying about the overall health of your lawn. My wife may
t share that last sentiment...
INDUSTRY INSIGHT
YOUR FINANCES
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has been the most exciting, joyous, and fulfilling time of
y life. That said, even as a financial planner, it hasn’t been
thout its nagging thoughts: Am I saving enough? Am I
king advantage of my benefits through work? Should I be
inking about saving for college already? Would my fam-
be okay (financially) if something terrible happened to
e? Should I have
an time
estate
plan
in place?
What
the heck
t’s that
of year
again.
The snow
has started
a Bumbo?
falling. The holidays are seemingly stacked on
A NEW YEAR’S
RESOLUTION
I
top of one another. We have time off from work
though a lot and
of these
issues
are uncomfortable
discuss
our busy
schedules.
And, the days are to
filled
d an added with
expense
during
an
already
expensive
family, friends, and delicious food. It is truly time,
a
ndling them wonderful
now will season.
not only give you peace of mind but
olid foundation
securing
your
financial
In for
between
sports
and family’s
food hangovers,
we future.
tend
to reflect on the ups and downs of another year
gone by and make plans for the future. It’s during
ollege Planning
those lazy
stupors when
a lot of us
proclaim that
you know, college
is already
an (almost
illogically)
expen-
beginning
in
January:
“I’m
going
to
start majority
eating of
ve journey. That, however, is not slowing the
” “I’m not going to drink as much.” “I’m
ivate colleges healthier.
from increasing
tuition year after year. If it’s
going to exercise and be more active!”
ur family’s wish to help cover some or all of these costs,
This article, however, is not about renewing
art saving when they’re in diapers. The earlier, the better.
your gym membership. It’s not a public service announcement
in the amount you’re saving, where you’re saving, and how you’re
you’ve reached retirement, you’re no longer relying on wages
ok to establish a 529 plan and set up an automatic month-
that multiple bourbon eggnogs before noon is a bad idea either.
saving. A few examples are:
to sustain your
family’s lifestyle. From that mindset, term
contribution This
for article
an amount
that fits into your cash flow.
is about ensuring that you have a financial game plan
• When you receive a pay bump through work, increase your
life
insurance
is
truly
the most effective
(and cheapest!) way
u won’t even in notice
it
after
a
few
months.
Also,
let
the
place for yourself and your family.
401(k) contribution
by 1%.
to
go.
andparents know.
They
just
may
want
to
lend
a
hand.
Many of us lead such hectic lives balancing work and family
- This will allow you to shave several working years off of
that we have little time to spend elsewhere. Financial planning is
your career - and you won’t even notice the difference in
So how
much to purchase? If you’re not
ork Benefits
a far cry from rocket science, but if you’r e not able to dedicate
the do you know
your how
paycheck.
running a thorough
on isn’t your
existing
time
to research,
and
monitor your plan,
though there necessary
are many
and
they will implement,
differ from
company
• Make sure analysis
excess cash
building
up at the portfolio,
bank.
anticipated growth,
and future
cash liabilities,
flow, a adding
good rule
of
should to
simply
outsource
- Consider
paying down
to a child’s
company, I you
wanted
highlight
one that
in headache.
particular—the
thumb is 10x salary.
Have account,
a qualified
adviser to
go an out
out to
a CERTIFIED
FINANCIAL
education
contributing
IRA, to
or bid
saving in
ependent Care Consider
Flexible reaching
Spending
Account.
This
account PLANNER™.
insurance
company
that will provide
Yes, there
be a cost
for their
expertise;
after-tax account
for shorter-term
needs. that
ows the parent
to set will
aside
income
before
taxes however,
in order the to find a reputable an
coverage at the
most
rate. If you’re not in
value of of childcare.
a comprehensive
planner on
should
• Don’t
try to cost-effective
predict the market.
help pay for added
the costs
Depending
your pay
tax for itself.
Depending
on your
goals
of life, you
here elect
are just a few
- The
only time
your investments
should of
shift
from long-
good health, if you
smoke,
or have
a family history
heart
acket, this can
easily save
you 20
to and
30% stage
on what
term growth
to capital alternative
preservation, may
should
when
disease, for instance,
the low-cost
be be to
contribute. examples of how an adviser should be addressing your financial
security:
there
is a change
in your your
financial
plan (e.g., They
approaching
obtain that level of
coverage
through
employer.
retirement).
An adviser
help rates
you stay
will likely offer guaranteed
coverage
at will
group
for focused
up to on the
TAX PLANNING
fe Insurance
big
picture
and
avoid
costly
knee-jerk
reactions.
some multiple of salary.
laws are forever
Understanding
e focus of life Tax
insurance
is to changing.
cover a period
of time these
in changes
It is never too early (or too late) to start thinking about your
and
being
proactive
with
tax
opportunities
that
may
arise
will
hich your family is financially vulnerable. This window
financial
future. With any meaningful change in life or our
give you
an edge
in your
planning.
Have
the adviser
Continued.
liability typically
exists
during
your
working
years.
Once run a tax
daily
habits,
the hardest thing to do is take that first step. Set
projection to:
a resolution this coming year to call a CERTIFIED FINANCIAL
• Determine whether you are withholding too much or not
PLANNER™. Here’s to a happy and healthy New Year!
enough from your paycheck.
- No one wants to be surprised with a big tax bill next
spring. Conversely, we shouldn’t be thrilled about a
large refund. Having a minimal refund and utilizing the
increased net take-home pay to invest or pay down a
mortgage quicker will better serve your long-term plan.
• Highlight years in which you will be in an uncommonly low tax
bracket.
- Whether you got married, bought a house, had a child,
or just retired, you could find yourself with a unique
opening to convert pre-tax money to tax-free money
(i.e., Roth IRA) at a lower relative tax hit.
STAYING DISCIPLINED
One of the first things a small business owner is advised to do
is write a business plan. This process brings clarity, structure, and
discipline that is essential to accomplishing their ultimate goal.
Why do we treat our family financial planning any differently?
You should have a financial plan in place to help stay disciplined
This Industry Insights was written by Matthew D.
Kelly, CFP®.
As an adviser with Allegheny Financial Group,
Matt helps guide individuals and families towards
achieving their distinctive financial goals. Matt and
his wife, Mia, left the city life behind for Mt. Lebanon
in 2016. A few months later, they welcomed a son
into the world, and are enjoying family life in such a
welcoming neighborhood.
For a better understanding of how Matt could
work with you and your family, please call him at
412.536.8076 or email at [email protected].
Allegheny Financial Group is a Registered Investment Advisor. Securities offered
through Allegheny Investments, LTD, a registered broker/dealer. Member FINRA/
SIPC.
Mt. Lebanon | Winter 2017 | icmags.com 11