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Much of the conversation about retirement focuses on saving. How much should you save? Which accounts should you contribute to? How long will you need to work to reach your retirement goals? These are all essential questions during your working years. But what happens once you've decided it's time to retire? The questions change. Instead of asking how much to save, you're asking how to turn decades of savings into reliable income and how to feel confident spending money you've spent a lifetime accumulating.

For most Americans, their home is a significant portion of their net worth and one of their largest single investments. However, as an asset class, real estate is illiquid. After all, you cannot sell a bathroom when you need some additional cash. Fortunately, there are a few options to tap into your home equity if needed. The best option for you is dependent on your circumstances and needs; a CERTIFIED FINANCIAL PLANNER™ can assist you in selecting your optimal strategy. Here are the pros and cons of some of the most common methods:

Spousal IRAs allow married couples in which one spouse works, and one does not, to make IRA contributions to the account of the non-working spouse. Typically, to contribute to an IRA, you need to have earned income. Spousal contributions create a way around this restriction.

People are living longer. According to the CDC's 2024 estimates, American life expectancy is 79. If I have worked on a financial plan for you, I’ve likely told you that women live longer than men, and that is still true. Women are expected to live to age 81, while male life expectancy is 76. These longer lifespans mean there is an increased likelihood of needing long-term care (LTC). It’s estimated that 70% of adults over 65 will need some form of LTC.

We have received several questions recently from clients asking for our opinion on precious metals. Prior to Friday’s drop in price, gold had risen about 92% in the past year. Silver was up over 265% in the same period. Both metals experienced large corrections on Friday the 30th with gold falling 10.3% and silver falling 28.5%. So, what’s going on with these metals?

Let’s be honest, estate planning isn’t fun. It’s kind of like cleaning out the garage. It needs to be done, but easy to avoid. Most people don’t wake up excited to think about wills, probate, or what happens to their stuff when they’re gone. Not every part of estate planning is complicated, expensive, or emotionally heavy. There are a few simple, practical steps you can take that make a real difference. One of the easiest ways is to add a Transfer on Death (TOD) designation to your vehicles. Small administrative decisions like this can save families time, money, and unnecessary stress.

New year, new tax law, and 2026 is no exception. I have tried to simplify the changes I believe will have the greatest impact for most people. This is not an exhaustive list, but it's a good start for things to keep in mind this year.

After being retired for a bit, you realize that you may not want to play golf 5 days a week, you miss your co-workers, and you are not traveling as much as you thought you would. We see more people these days deciding to return to work after retirement. Whether you plan to go back to work full-time, part-time, start your own business, or work for someone else, there are a few factors to consider before you step back into the workforce.

In speaking with clients recently, many are asking if we think the stock market is in a bubble. While this is a very difficult question to answer, it’s easy to understand why this question is coming up so frequently - the S&P 500 is amid its third consecutive calendar year of stellar returns (though anything could happen between now and year-end).

The One Big Beautiful Bill Act (OBBBA) was passed in July and introduced several changes to the tax treatment of charitable donations. Some of these changes affect taxpayers who itemize deductions, while others are specifically beneficial for those who do not.

Since the passing of the “One Big Beautiful Bill Act” (OBBBA) on July 4th, a popular talking point has been about Social Security no longer being taxed. Indeed, some taxpayers may no longer pay federal income tax on their Social Security benefits; but it is not the case that Social Security benefits are no longer taxable. Some seniors will be paying less income tax because of OBBBA, but not everyone.

The 2017 Tax Cuts and Jobs Act (TCJA) drastically altered the deductibility of state and local taxes (SALT) on federal tax returns. SALT includes amounts paid to certain state and local governments such as state and local income, general sales, real property and personal property taxes. Pre-TCJA, there was no limit to SALT deductions. The Tax Cuts and Jobs Act limited the deductibility of these taxes to $10,000 for all filers except Married Filing Separately (MFS), which was limited to $5000.

Schwab has alerted us to a new and more sophisticated fraud threat. This version begins when the client receives a text message prompting them to "verify a transaction"—clicking the link leads the unwary investor to a fraudulent website that mimics Schwab's login page, where they are prompted to enter their credentials. Once the credentials have been entered, the fraudsters use them to access Schwaballiance.com. The fraudulent website may also prompt the client to enter a two-factor verification code that they would automatically receive from Schwab, which, once submitted, allows the fraudster to complete the login process.

Clients with larger accounts often notice a difference in daily performance in each of their accounts, and depending on market conditions, the difference can be quite large. When we assess clients’ portfolios, we consider all their accounts aggregated together, but our custom portfolios are constructed differently depending on the tax treatment of each account to help optimize after-tax returns for clients. Because particular styles of stocks and bonds fall in and out of favor over time, you may notice a variance in the performance of each account. Below are the three main account types we deal with and how we try to steer the portfolios in each account.

Charitable giving is a meaningful way to support causes close to your heart while potentially enhancing your financial strategy. While cash and goods are the most common forms of donations, another option provides a tax benefit, even for those who take the standard deduction on their taxes. Donating appreciated stock (or any other publicly traded security) to charity can benefit you and your favorite charity in several ways.

One of the most common questions I get is about retirement plan limits and deadlines. Whether you are looking to save on taxes for 2024 or get a jump start on saving for 2025, it’s important to know the limits and deadlines for contributions. Let’s break it down.

We have been alerted that there is an active phishing text campaign in which clients receive a text message from an international number and it mentions a disbursement from the client’s account. It then asks to click on a link to log into their account to verify the transaction.

As our population ages, we continue to see a higher incidence of reduced cognitive ability. As fiduciaries, we are sensitive to this issue and look for red flags if we suspect diminished capacity or exploitation, particularly with regard to our senior clients. To address this, Schwab has the ability to add “Trusted Contacts” to every account. We strongly encourage all our clients to have trusted contact information on file with Schwab as an added layer of protection against financial exploitation.

After being retired for a bit, you realize that you may not want to play golf 5 days a week, you miss your co-workers, and you are not traveling as much as you thought you would. This is common – more and more people these days are deciding to return to work or start new careers after retirement. Whether you plan to return to work full-time, part-time, start your own business, or work for someone else, there are a few factors to consider before you step back into the workforce.

We have found that there are some misconceptions about the dreaded “gift tax” (which currently has a maximum rate of 40%) – what it is, who pays it, and how it can be avoided. Here are some of the most common questions along with some helpful ideas on estate planning strategies.

We use a few pieces of powerful financial planning and investment management software. These tools help us keep track of dozens of factors about your financial life, chart a course forward and analyze whether you’re on track to meet your goals. The hub for everything that we do for clients is our portfolio management software which is called Advyzon.

Are you traveling for an extended period of time? Whether you are going abroad or staying in the U.S., it’s important to take steps to protect your credit. Here are a few things you could do to help you have a smooth trip.

With the tax filing deadline behind us, we have been talking with clients about different types of taxes. Although ordinary income tax and capital gains tax are not the only types of taxes, they are the two we deal with most. So, what are these two types of taxes, how do they work, and when do they apply? Let’s dive in.

In my career as a financial planner, I have had the opportunity to work with many clients reviewing their investment accounts. What has always struck me was the large number of accounts that are held across an array of firms such as brokers, discount brokers, banks, credit unions, mutual fund companies, and insurance companies. It’s not uncommon to see a couple holding 10-15 different financial accounts with several different custodians. In one respect, this is not surprising. The average person holds 12 different jobs in their lifetime (according to the US Bureau of Labor Statistics), each one of which may have a retirement plan associated with it. As people move from job to job, these accounts often get left behind. Add in Traditional IRAs, Roth IRAs, Individual accounts, Custodial accounts, Joint accounts, and Trust accounts and one can quickly see how this proliferates.

In December 2019 the SECURE Act was signed into law. This brought about changes to retirement savings and one of the most impactful changes applied to non-spousal beneficiaries of IRAs. The most common example of this is an adult child inheriting their parent’s IRA, so I will focus on this example. There are many other types of beneficiaries that can be named for IRAs, but children are the most common non-spousal beneficiaries.

Recently we have had several clients ask what they should do with their extra cash. This may be cash that is set aside for a short-term goal (1-3 years) or it could just be cash that has accumulated in the bank. While we make different recommendations for each client based on their risk tolerance and goals, there are generally three options for any excess cash you may have.

If your auto and homeowner’s insurance premiums have risen significantly this year, you are not alone. Auto rates in particular have jumped significantly and unfortunately, premiums are expected to continue to rise. The Wall Street Journal recently reported rate increases for selected insurers and showed Allstate increased rates by 40% in Georgia and State Farm increased rates by 11% in New York. On average auto insurance rates were up more than 15% in May from the year prior which far outpaces inflation during that time. Increases are expected to continue through the end of 2024.

The short answer is probably, but the good news is no one pays taxes on 100% of their benefit. Many people are surprised to find out that their monthly Social Security income is not tax-free. Most Americans pay federal taxes on their benefits, and some pay state taxes as well. Your total benefit amount is never taxed- the maximum taxable amount is 85%. That means that a portion of your social security will always be tax-free.

Banks have been a hot topic this quarter. There has been negative news about bank failures, but also positive news like high rates available on CDs and savings accounts. We have received questions from clients about the safety of cash deposits in the last couple of weeks, so we wanted to go over the basics on deposit insurance.

At age 65 if you do not have additional health insurance options through an employer or a spouse’s employer you will likely enroll in Medicare Part B. Part B covers “medical” expenses like doctors visits and outpatient care. There is a monthly premium associated with Medicare Part B. As people approach 65 (or after they have enrolled in Medicare Part B), many are surprised to learn that they may need to pay more than expected for their Part B premiums.

The Tax Cuts and Jobs Act of 2017 reduced the number of people who itemize deductions on their tax returns. Folks who used to itemize and gave to charity who no longer itemize due to the increased standard deduction lost the tax advantage of charitable donations. However, there is still a great way for people over 70 ½ to give to charity and reduce their tax bill and it involves making donations directly from your IRA.

After years of talk about student loan cancellation, it looks like it is happening. President Biden announced his student loan cancellation plan last week. Since then, there have been a lot of questions and I will do my best to address them below.

Social Security seems simple on the surface. People work, pay social security tax, and then get a monthly benefit when they retire. For some people, it is that simple, but Social Security has some interesting quirks. Here are the 6 unique or interesting things about Social Security that you may not know.

Over the years we have written several times about the impact of interest rates on stock prices. While we have mentioned the mathematical effects increasing interest rates have on stocks, we have never done a deep dive on this mechanism or explained some of the more tangential issues associated with rising rates. So, without further ado, here is a deep dive on interest rates and stock prices.

We have received several questions from clients recently regarding alternatives to holding cash in a savings account. This is a good question to ask given the interest rates offered on savings and the current inflation rate, which just hit a 31-year high. People are rightly concerned that the value of their savings is being eroded by inflation. Unfortunately, at the current juncture, there aren’t any great solutions to this conundrum. We wanted to write a blog explaining what the issues are, how we got here, and what the best course of action is going forward.

The value of your home has likely increased significantly over the last 2 years. Home values are up across the country. According to S&P CoreLogic, real estate prices were up 19.5% from August 2020 to August 2021. Also, many people who have been housebound took steps to improve their homes during the pandemic. With your home value potentially increasing by double digit percentages, it is a suitable time to revisit the Dwelling coverage or Coverage A on your homeowners’ insurance.

Men and women approach finance differently. For all the progress that we have made, women are still uncomfortable talking about money. Although we often have candid discussions with friends about a variety of personal topics, finance is not one of them. A lack of confidence may be to blame or social conditioning. In a recent survey by UBS, only 20% of couples indicated that husbands and wives are equally involved in financial decision making with men taking the primary role 70% of the time. The irony is that 80% of women will be solely responsible for their financial well-being at some point in their lives – through widowhood, divorce, or remaining single.

Living in the Lowcountry, we frequently encounter clients and friends with multiple homes across different states. Although this allows one to enjoy the best of both worlds – a home up north and a house near the beach in the south – it can lead to estate problems if not carefully planned. Owning real estate outside of your state of residency can result in “ancillary probate”- a second court proceeding to probate the will of the decedent in the non-domiciled state. Court costs, additional legal fees, and delays in processing can result. The good news is that there are steps that you can take while you are alive to avoid this situation and drastically improve the processing of your estate.

COVID-19 has renewed the awareness of our mortality and our need for life insurance. However, currently only about 52% of Americans carry life insurance and about half of those are underinsured by $200,000 or more. * Whether you are young or old, wealthy or living paycheck to paycheck, there can be good reasons for carrying life insurance. As a CERTIFIED FINANCIAL PLANNER™, we typically examine the life insurance needs of our clients when doing financial planning. Here are our top 5 reasons for making a recommendation.

It’s almost peak wedding season, and 2022 promises to be one of the busiest wedding years in recent history. While the couple’s gift registry may be full of wonderful ideas from honeymoon horse rides on the beach to couple’s massages, I wonder if there is a more meaningful gift that I could give a couple starting out. Many young people are struggling with student loan debt, a turbulent economy, and the competing need to save simultaneously for retirement, a house, and the possibility of future children. In the 12th annual “Parents, Kids and Money Survey” (by T. Rowe Price December 2020) 41% of parents admitted to having difficulty talking to their children about financial topics. Since many people are likely going to be starting their marriages with limited knowledge of personal finance, here are some tips to start a marriage off on a solid note financially.

I recently started on a 21-day fitness/diet plan to tone up after COVID. In general, people seemed to react in one of two ways to the pandemic. One group used this time to diet and exercise and get into shape. The other group (ahem, me included) may have gained weight from indulging in comfort foods, an extra glass of wine and binge-watching Netflix. In a recent survey by the American Psychological Association, 61% of respondents said that they had an undesired weight change since the epidemic started – with the average gain of 29 lbs.! Stress was clearly the culprit. Now that life is slowly returning to a state of normalcy people are beginning to deal with these issues and planning to lose the weight.

Depending on your view of risk, margin can either be the greatest tool in the world or something to be avoided at all costs. To understand margin better, let’s begin with the basics.

A sudden change in wealth can be a good thing. We all fantasize about winning the lottery, inheriting wealth from a long-lost relative, settling a lawsuit, or striking it rich with a start-up company. However, as we know from tragic stories in the news, many people struggle handling sudden wealth. Inherited wealth often comes with guilt, anxiety, and stress; furthermore, many beneficiaries lack the skill to manage financial assets resulting in substantial losses within a short period of time. A study of lottery winners in Florida in 2010 found that 5% filed for bankruptcy within 5 years of winning – twice the rate of regular residents. I had the opportunity to speak with a lottery winner in the United Kingdom, and they have a much more robust counseling regime for the winners. “A win does not change people’s values around money, it exaggerates them,” said Andy Carter of Camelot (lottery operator in the UK). To assist big-money winners, they schedule meetings with financial firms and banks to explain the risk and reward and independent advice as well as providing the winners with legal and tax counseling. No matter how you may come by your assets, here are a few things to keep in mind to avoid major mistakes.

We often develop relationships with professionals who are like us. They may live in our town, go to our church or country club, and have children of the same age. It follows then that when the time comes that you are entering retirement, they may be too. If your financial advisor is retiring you may be facing the awkward question of “who do I choose now?” While we cannot answer this question for you, we can shed some light on the dos and don’ts of how to select a new trusted advisor.

We created this guide for both new and existing clients. It explains each section of our quarterly reports, defines commonly misunderstood terms, and highlights the sections we believe best illustrate your investment performance. We have created a sample report with hypothetical accounts and securities that looks identical to the quarterly reports we send all clients so you can follow along.

Who gets your financial assets when you die? When you open a retirement account (such as a 401(k) or IRA), purchase life insurance or annuities, or sign up for a Health Savings Account, you are asked to name a beneficiary to receive the proceeds should you pass away. Many people fill out the forms and move on, over time forgetting who is named on which account. However, your family circumstances may change over the years. Life events like marriage, divorce, death and birth of children and grandchildren can greatly alter who you want to receive these assets. Additionally, some family members who are named as beneficiaries may develop substance abuse issues, have special needs, become estranged from the family, or have spendthrift tendencies and credit problems. In such cases beneficiary updates and alternate methods of inheritance (such as trusts) should be considered.

Over the years we have written about the increasing threat of identity theft. Malware, phishing, and social engineering are just some of the ways that individuals are targeted and identities were stolen. Criminals are nothing if not creative. During this pandemic, they have come up with a plethora of ways to take advantage of the chaos and tap into and divert the enormous flow of money. By using information from data breaches, scammers are filing unemployment insurance claims and reaping the benefits. In our former home state of Vermont, the Department of Labor’s online unemployment benefit registration system was shut down recently when 90% of the initial claims were fraudulent*.

In the changing and complex retirement landscape, the more common retirement vehicles are well known – IRA’s, 401(k), and 403(b) plans. However, there are lesser-known retirement vehicles that have some interesting features. If you work for a tax-exempt organization or are employed by a state or local government, you may have access to a 457(b) plan. Like its more familiar cousin, the 401(k) plan, the 457 plan is a tax-advantaged plan that allows participants to contribute pre-tax money and allows investments to grow tax-deferred. However, there are some critical differences in these two retirement vehicles that make the 475 plan unique and interesting.

History repeats itself. Who would think that 100 years after the Spanish Flu (1918-1920) we would be faced with a pandemic that virtually shut down our country and large parts of the world? In addition to the terrible human toll that the coronavirus has taken, there is a continuing economic toll. Although some people and industries have thrived in the past year, for many people the hardships faced are reminiscent of the Great Depression (1929-1939) when over 25% of the country was out of work. Last year, US unemployment rates peaked at 14.7% in April 2020 and although they have improved to 6.2% as of March 2021 there are still many workers that are not yet back to full employment and pockets of the economy that are really hurting.

You’re engaged! Congratulations! Here’s to the most expensive day of your life. According to The Knot’s 2019 Real Weddings Study, the average cost of a wedding was $33,900 (including the ring but not including the honeymoon), but it varies significantly by location. Unfortunately, more and more couples are paying for this themselves, with parents no longer footing the bill. Unless they have a significant bankroll, this means taking on debt and maxing out credit cards. Hold on. It does not have to be that way. You can tie the knot without tying knots in your finances. When counseling our clients, we strongly recommend setting a budget that you can afford for the big day and sticking to it. Here are a few suggestions that may help you plan your big day without breaking the bank.

Have you ever wondered how your credit score is determined and what you can do to influence it? Although the process may seem to be a bit of smoke and mirrors, it is important that you pay attention to your score as it is key to obtaining loans at the lowest interest rates, thus saving you money.

When we help clients with budgeting, one item consistently stands out as a major expense: housing. It is not just the mortgage cost, but also the insurance, utilities, HOA fees, maintenance, and taxes. The rule of thumb is one’s housing costs should not exceed about 28% of monthly gross income but for many people, it is even greater than this. While downsizing was previously associated with retirees, it is also becoming a more popular move for a growing number of hard-working, money-smart homeowners.

According to Educationdata.org, as of 2020, almost 48 million students have graduated from college with loan balances averaging $35,453. If you are one of the 62% of graduates who have student loans, you may be wondering how to prioritize your spending, saving, and money management. Although the best advice is specific to your situation, here are some general recommendations to get you started:

One thing that I have learned over the years is that life holds many surprises – both good and bad. Most retirees try to predict if they have enough in assets and pension or social security income to maintain their lifestyle. What they sometimes fail to plan for are the risks that are out of their control that can erode even significant life savings. Unless people understand these risks and plan to manage them, their lifetime income may be in jeopardy. Working with a CERTIFIED FINANCIAL PLANNER™ can help with this process. These are the top 5 risks that we see to sustaining one’s lifestyle in retirement:

Summer is a great time to review your insurance coverage. Many of us conduct initial research when purchasing insurance policies, but often forget to review them, allowing coverage to become inadequate over time. Below are some of the most common recommendations we make with regard to insurance.

Saving for a child’s college education is one of the most important and daunting tasks parents face. Most parents intuitively understand that the cost of college attendance is increasing rapidly and that they need to save money regularly and aggressively in order to foot the bill. However, we have found that parents consistently underestimate the amount of savings necessary to reach the goals they have for their children’s education. We have assisted several clients with education planning recently and wanted to share some of our insights.

People rarely stay with the same employer for their entire career. In fact, according to the Bureau of labor statistics, people change jobs an average of 12 times during their lifetime. With all these job changes, most people will end up with a 401(k) or other retirement plans from an older employer. So, what are your options for that 401(k) that you left behind?

Living on Hilton Head Island, we have become intimately familiar with the turtle. They nest along our beaches in the summer and although I have not yet witnessed it firsthand, I have been fortunate to see the tracks of several mother turtles emerging from the Atlantic Ocean to lay their eggs on the shore. This year there are 5114 reported nests along the South Carolina shoreline, each of which have an average of 110 eggs. When the hatchlings emerge from the nest, they begin to make their way into the ocean, avoiding the obstacles and predators that are in their path. The challenges are so numerous, that only 1 in 1000 baby turtles survives to adulthood. Those that survive migrate hundreds or even thousands of miles from their birthplace to find a safe feeding ground. When they are mature (around age 30) they return to the same beach from which they hatched to nest and begin the process again. Sea Turtles can commonly live to be 100 years or more, returning to our beaches to nest year after year.

As financial planners, we get the opportunity to work with clients from all walks of life and varying types of family situations. One of the most common questions we get from clients of all demographics revolves around gifting or bequeathing assets to family members while maintaining a level of control over those assets. Some of the situations where clients are looking for extra control are obvious- such as gifts to minors, while others are more specific- like gifts to a family member who has a substance abuse or gambling issues. There is almost always a solution that can be crafted to fit the needs of the client, but the cost and complexity of the solution varies widely.

You have probably heard about stock splits more than once over the last 3 weeks. Two high profile splits have been announced- Apple and Tesla, so there has been a lot of talk about them. Stock splits are simple and for many investors, there is no impact on their portfolios even if you hold these stocks. When a stock splits you will have more shares than you did before, but the share price will be lower. It is common to see 2-for-1 or 3-for-1 stock splits, but it can be done in any number of ways.

We are often asked, particularly by younger clients, if it is better to make tax-deferred contributions or after-tax (Roth) contributions to their IRA or employer-sponsored retirement account. While there are many rules of thumb across the internet and financial media on this topic, it is a very difficult question for financial planners to answer because it depends on each client’s specific situation. That being said, I wanted to go through some of the considerations we take into account when we answer this question.

The allure of real estate investing is obvious. The fact that real estate is a tangible, physical asset holds sway in the minds of many. Real estate investing is also intuitive- the idea that you can buy a property and rent it for more than the cost of ownership just makes sense. However, just like any other type of investing, real estate investing is beset on all sides with risks and pitfalls that must be navigated strategically. Below are some of the most common issues these investors face.

On the surface, one would think that medical professionals like doctors and dentists would be financially secure. After all, the average primary care physician salary is $223,000 based on a 2018 Medscape Physician Compensation Survey, with some specialties making considerably more. Cardiologists, orthopedic surgeons, and plastic surgeons can make $400,000 to $500,000 per year. Similarly, the average dentist makes about $200,000 per year, but specialists and dentists who own their own practices can make $300,000 to $420,000 or more. However, despite these salaries, not all doctors and dentists are prepared for retirement. There are two factors working against them. First, is the incredibly long time in school – 4 years in undergraduate, 4 years in medical or dental school, and 3-7 years in a residency program for doctors. The second factor is the debt load; 75% of physicians graduate with student loan debt averaging more than $200,000 and a career that doesn’t really start becoming profitable until their 30’s. The average student loan debt for dentists is even worse – a staggering $292,000.

I consider it a sign of the times that more and more of our clients are asking us about real estate as an investment. Tangible property – residential, commercial property, cars, and art– have always held an appeal. First, they are physical assets and easy to understand. There is something inherently satisfying about being a property owner. Many wise investors have made their fortunes by investing in real estate when prices were low. Here on Hilton Head Island, one need only look to Charles Fraser for a great example of a real estate visionary. Finally, real estate prices have risen substantially since their lows in 2008 and people want to jump on the bandwagon.