Money Matters

Spring is almost here, which means it’s time for spring cleaning. This year, in addition to tidying your home, you might want to consider sprucing up your financial environment. Here are some suggestions for doing just that.

Improve your vision. Once the days are warmer and longer, you may want to get outside and clean all the winter grime and smudges from your windows. You may want to bring more focus to your financial vision by asking some key questions: Is my investment strategy still appropriate for my needs, goals, and family situation? If not, what changes should I make? And am I prepared for changes in my life, such as health challenges or a need to retire earlier than planned? 

De-clutter. As you look around your home, you may find things such as expired health care products, ancient cleaning solutions, and so on, in addition to duplicate household items (how many blenders do you really need?). Most people find that eliminating this clutter gives them a good feeling – and a more livable space. As an investor, you can also find clutter in the form of redundant investments. For example, you might own several nearly identical mutual funds. You might be better off selling some of these funds and using the proceeds to find new investments that can help you further diversify your portfolio. As you may know, diversification is a key to investment success, but keep in mind that it can’t prevent all losses.

Plant seeds of opportunity. Whether they’re planting camellias and crocuses or carrots and cilantro, gardeners are busy in the spring, hoping their efforts result in lovely flowers and tasty foods. And when you invest, you, too, need to plant seeds of opportunity in the form of investments that you hope will grow enough to enable you to make progress toward your goals. So, you may want to review your portfolio to ensure it’s providing this growth potential, given your individual risk tolerance. 

Reduce dangers. You may not think about it that much, but your home and surroundings can contain potential hazards. You might have sharp cutting instruments protruding from shelves in your garage or heavy, cracked tree branches hovering close to your roof. Spending some time on a spring-cleaning sweep can get rid of these dangers — and devoting time to consider the possible threats to your financial security, and those of your family, can pay off, too. For starters, review your life insurance to determine if you’ve got enough. Your employer may offer some coverage as an employee benefit, but it might not be sufficient, so you may need private coverage. 

Spring is a great time for brightening your physical space — and your financial one, too.

Watch the video below to learn more about financial spring cleaning.

 

– Laci P Graul, CRPS™

Financial Advisor

205-573-0228

www.edwardjones.com

Edward Jones, Member SIPC

Money Matters

As most of us have experienced in one way or another—families can be hard. Add in money, and any issue your family is having will be amplified. There is no one-answer-fits-all because human emotions are fluid, and relationships can be complicated. Whether navigating financial matters with children, aging parents, or extended family, biblical principles give wisdom. Let’s explore three. 

1. Make Generosity a Priority. In Acts 20:35, Paul led through giving as he explained, “In everything I did, I showed you that by this kind of hard work we must help the weak, remembering the words the Lord Jesus himself said: ‘It is more blessed to give than to receive.’” The Bible mentions giving, possessions, and money more than 2,000 times,* and our wealth is a tool for blessing others and advancing God’s kingdom. Giving as a family—of time, energy, and money—creates an environment of generosity while teaching that everything you have belongs to God.  Passages for family discussions: Proverbs 11:25, 2 Corinthians 9:6–8, Hebrews 13:5

2. Let Your Family Fail with Dignity. It may be tempting to protect loved ones from making mistakes, but not letting them fail may prohibit growth. However, if you walk alongside, extending empathy and helping them pursue discernment and cultivate resiliency, this can create a greater constitution against larger failures in the future. Money adds another layer of complication to an already-complex path of helping. Allowing others to experience failure encourages a trust in God’s sovereign plan. Remember, you are charged with stewardship, and you can provide support which may or may not be financial. Passages for further study: James 1:2–4, Proverbs 24:16, Isaiah 41:10

3. Follow a Biblical Precedent. The Bible warns of the many pitfalls of wealth, but it does not romanticize poverty. It is good to work hard and to cultivate the gifts the Lord has bestowed on us. The overarching theme of biblical warnings about wealth is the need to avoid greed. When we understand that material wealth is not the ultimate measure of success or happiness, we can generate long-lasting financial and spiritual health in our families. Passages for further study: Proverbs 15:27, Ecclesiastes 5:10, Matthew 19:24, Luke 12:1

Practicing faithful stewardship in family dynamics glorifies God. You lead by example as you approach financial decisions with prayer and biblical understanding for wisdom and discernment.

*National Christian Foundation, “10 Principles of Biblical Generosity.”

Watch the video below to learn more about the biblical principles that provide wisdom for families navigating financial matters.

BMSS Wesson Wealth Solutions offers comprehensive financial planning and investment strategies aligned with your values. We specialize in serving business owners, corporate executives, and families stewarding earnings or inherited wealth. Qualifying portfolios may be eligible for a review at no cost. 

-Benaiah Gorman, CFP®

BMSS Wesson Wealth Solutions

205-982-5555

[email protected]

Money Matters

Managing your finances and investing for your future are important tasks — and they can be challenging, but you don’t have to go it alone. Many people benefit from working with a financial advisor, someone who knows their needs and goals and makes appropriate recommendations. If you’re considering getting some help, here are some questions to consider.

Have you worked with people like me? All of us are unique individuals. Yet, you do share certain characteristics with others — age, income, family situation, and so on. You might feel comfortable knowing that a financial advisor has worked with people like you and can readily understand and appreciate your needs and specific goals. The more information you can provide about yourself upfront, the better your chances of finding a good match.

Do you have a particular investment philosophy? Some financial advisors follow a particular investment style, while others might focus on specific investments or categories. There’s nothing inherently wrong with these types of approaches, but you might be better served by working with someone who takes a broader view — one that emphasizes helping clients meet their goals over any philosophy or strategy.

How will you communicate with me? Open and frequent communication are key to a successful relationship with a financial advisor. So, you’ll want to know what you can expect. Will you have annual or semi-annual reviews of your accounts? In between these reviews, can you contact your advisor at any time with questions you may have?

How do you define success for your clients? Some investors track their portfolios’ performance against that of a specific market index, such as the S&P 500. But, these types of benchmarks can be misleading. For one thing, investors should strive for a diversified portfolio of stocks, bonds, and other investments, whereas the S&P 500 only tracks the largest U.S. stocks. When you talk to potential financial advisors about how they define success for their clients, you may want to look for responses that go beyond numbers.

How are you compensated? Financial advisors are compensated in different ways — some work on commissions, some charge fees, and some combine fees and commissions. There isn’t necessarily any best method, from a client’s point of view, but you should clearly understand how a potential advisor is compensated before you begin a professional relationship. 

These aren’t the only questions you might ask a potential financial advisor, but they’ll give you a good start. When you’re trusting someone to help you with your financial goals, you want to be completely comfortable with that individual, so ask whatever is on your mind.  

Watch the video below to find more information on questions to ask financial advisors.

– Laci P Graul, CRPS™

Financial Advisor

205-573-0228

www.edwardjones.com

Edward Jones, Member SIPC

Money Matters

During the month of January, Pelham’s Benefield & Hamner, CPA offers these four simple steps to make your tax filing easier this year.

1. Make a file or area to gather all tax information together as you receive it throughout the month.
2. Make sure your contact information is correct with your tax preparer.
3. Request your annual prescription report from your pharmacy if claiming medical deductions.
4. Check your driver’s license to make sure the date has not expired.

-Benefield & Hamner, Certified Public Accountants

206 Huntley Pkwy, Pelham, AL 35124

205-621-4033, www.cpabh.com

Money Matters

How do we honor the Lord with our stewardship at Christmas and as we plan for the new year ahead? Here are seven year-end financial moves to consider.

Rest your heart. Contentment grows as we trust God’s leading. I’ve found that Galatians 5:16 presents a wise heart posture for biblical stewardship as Paul tells us to “walk by the Spirit.” As the Spirit graciously leads, we remember that God owns it all, and He honors faithfulness. 

Plan and monitor your financial journey. Set goals and practice sound giving, saving, spending, and investing strategies. User-friendly financial software packages like Quicken and Ramsey Solutions can support your journey. Likewise, the expertise of a competent and godly financial advisor or Certified Financial Planner (CFP®) may be beneficial.

Prioritize charitable gifts. Besides being generous and cheerful while funding the Great Commission, you should be able to deduct the amount of such contributions on your tax returns if you itemize deductions. 

Evaluate your investments. Ponder what types of companies are owned in your portfolio. Do they appropriately honor your values? Also, this is an opportune time to assess the performance of your portfolios. For example, for investors who meet regulatory requirements, allocating a portion of investments to alternative assets such as private real estate, private equity, and private debt may offer new opportunities for diversification and higher returns. 

Open and use a Donor Advised Fund (DAF). A DAF with an organization such as the National Christian Foundation of Alabama may simplify and organize your charitable giving. Consider donating appreciated assets like stocks, real estate, and business interests. 

“Bunch” your charitable contributions for tax savings purposes. “Bunching” allows you to make multiple years of gifts into a DAF in a year, itemize those gifts, and then grant those contributions to charities over successive years. In the subsequent years, you should be able to use the standard deduction of $27,700 for couples or $13,850 for singles.

Consider tax-loss harvesting. If you have losses in your taxable investment portfolio, you may “harvest” (sell) these to offset recognized capital gains this year. This tax strategy can yield attractive results, though there are specific IRS rules to be followed. 

May your year-end moves take you along a joy-filled path of stewardship!

BMSS Wesson Wealth Solutions offers comprehensive financial planning and investment strategies aligned with your values. We specialize in serving business owners, corporate executives, and families stewarding earnings or inherited wealth. Please feel free to contact me to discuss your interest in our services. Qualifying portfolios may be eligible for a review at no cost.

Watch this video to learn more about year-end financial moves.

-Tank Tankersley, CFP®, AEP®, CTFA, CKA, MBA

BMSS Wesson Wealth Solutions

205-982-5555

[email protected]

Money Matters

The issue of downsizing is one that many retirees will consider. If you have children, and they’ve grown and left the home, you might find yourself with more space than you really need. Of course, this doesn’t necessarily mean you must pack up and scale down yourself. You might love your home and neighborhood and see no reason to go. But if you’re open to a change, you could find that moving to a smaller house, a condo or an apartment may make sense for you. Let’s consider some of the advantages of downsizing.

You could save money. Moving to a smaller space could lower your utility bills and upkeep costs.

You could save effort. A smaller home will mean less maintenance and cleaning.

You could de-clutter. Over the years, most of us accumulate more possessions than we really need. Downsizing gives you a chance to de-clutter.

You could make money. If you’ve had your home for many years, it’s certainly possible that it’s worth more- perhaps a great deal more- than what you paid for it. So, when you sell it, you could pocket a lot of money- possibly without being taxed on the gains. Generally, if you’ve lived in your home for at least two years in the five-year period before you sold it, you can exclude $250,000 of capital gains, if you’re single, or $500,000 if you’re married and file taxes jointly. (You’ll want to consult with your tax advisor, though, before selling your home, to ensure you’re eligible for the exclusion, especially if you do own multiple homes. Issues can arise in connection with determining one’s “primary” residence.)

While downsizing does offer some potentially big benefits, it can also entail some drawbacks. First, it’s possible that your home might not be worth as much as you had hoped, which means you won’t clear as much money from the sale as you anticipated. Also, if you still were paying off a mortgage on your bigger home, you may have been deducting the interest payments on your taxes — a deduction that might be reduced or lost to you if you purchase a less-expensive condo or become a renter. Besides these financial factors, there’s the ordinary hassle of packing and moving.

So, as you can see, you’ll need to weigh a variety of financial, practical, and emotional issues when deciding whether to downsize. You will also want to communicate your thoughts to grown children or other family members who may someday have reason to be involved in your living space. In short, it’s a big decision- so give it the attention it deserves.  

Watch the video above to learn more about the benefits of downsizing.

-Laci P Graul, CRPS™

Financial Advisor

205-573-0228

www.edwardjones.com

Edward Jones, Member SIPC

Money Matters

If you have teenagers who may be starting to work at part-time jobs, now may be a great time to introduce them to investing — and one place to begin might be a Roth IRA.

What is a Roth IRA? A Roth IRA is a popular retirement savings vehicle. Its earnings can grow federally tax-free, provided withdrawals aren’t taken until the investor is at least 59½ and has had the account for five or more years. But because a Roth IRA is funded with after-tax dollars, contributions can be withdrawn at any time, penalty-free, to pay for any expenses including college. Roth IRA earnings can also be used to help pay for college, although these withdrawals will be taxable. However, if a child is the account owner, a lower tax bracket will likely apply.

In 2023, up to $6,500 per year can go into your teenager’s Roth IRA, as long as the amount contributed doesn’t exceed the amount of their taxable compensation for the year. And your child doesn’t have to put all the money in. You and the child’s grandparents can also contribute. In fact, you might want to “match” your child’s contributions up to the limit to provide an incentive for them to continue investing in the Roth IRA. Not only will your matching contribution help build the Roth IRA’s assets, but it can also instill in your child’s mind the benefit of earning a match – which can prove valuable later on when your child is in the workforce full time and has a chance to receive an employer’s matching contributions in a 401(k) or similar plan.

If you have a family business, you can employ your teen to provide income that can go into a Roth IRA. Furthermore, if the business is one parent’s sole proprietorship, or it’s a partnership in which each partner is the parent, the payments for a child younger than 18 are not subject to Social Security and Medicare taxes. As an employee, your child must perform reasonable tasks necessary for the business and be paid reasonable wages — that is, wages comparable to what you’d pay a regular employee for the same work. But wherever your child’s wages come from, using some of them to help fund a Roth IRA can be a good move. Once your teen’s first paychecks start coming in, consider bringing up the idea of opening a Roth IRA. You may well be opening the door to a lifetime of consistent and informed investing.  

-Laci P Graul, CRPS™

Financial Advisor

205-991-3179

www.edwardjones.com

Learn more about financial advising with Lace Graul.

Money Matters

Brought to you by: OneAscent Wealth, www.oneascentwealth.com 

According to data compiled by TechJury, almost half of Americans report that they are workaholics. 77% say they’ve experienced career burnout. Nearly 66% of workers admit that they don’t have the work-life balance that they really need. A simple question to consider: is this life to the full and the journey God calls us into? Here are three things to consider. 

1. Set priorities. Even if you are not a top-level executive, you can create margin. Simple changes like adjusting your sleep schedule can create valuable time that you can use to pray, exercise, read, and rest in the knowledge that you don’t have to chase after the sun; you are already God’s beloved. To some degree, you also have the power to create boundaries. That might mean setting a strict clock-out time and creating a ‘do not disturb’ schedule so you can be present where you are. 

2. Monitor progress. Do you measure success in other avenues of life beyond the professional? If you notice you’re crossing off work tasks ahead of time but missing precious time with your family, those blank boxes where checkmarks should be will point you back to your schedule and your priorities list. Another valuable form of “measurement” is having people in our lives who hold us accountable like a mentor you’d like to emulate. Working with a financial advisor can help you stay on track towards short-term financial goals, like buying a new house, while also progressing towards long-term security in retirement. 

3. Reevaluate goals. Your hopes as a 20-something college graduate were very different than your hopes at age 50. Once you near retirement age, the prospect of life without full-time employment will recalibrate honoring God means for you all over again. As you begin a new year, set aside time to reflect. Ask yourself, “What am I working towards?” Do the goals you had earlier in your life still apply? Or are you simply going through the motions and cashing a paycheck? Are you happy with the amount of time you’re able to devote to your faith, family, and friends? 

At OneAscent we will partner with you as you walk out these questions. Our desire is to care for you and help you steward your values and your valuables. Let’s meet and discuss what life trajectory you desire and what steps you can take to walk on that path. 

-John Beatty

Advisor at OneAscent Wealth 

205-313-9142, [email protected]  

Investment advisory services offered by OneAscent Wealth Management, LLC, a registered investment advisor with the United States Securities and Exchange Commission.

OneAscent is hosting two events on January 17 that you’re invited to attend. At 10 a.m., join OneAscent Investments for a Quarterly Market Update Webinar. At 11:30 a.m.- 12:30 p.m., join OneAscent Wealth at the OneAscent office, 23 Inverness Center Parkway, Birmingham, 35242, for a Values-Based Investing Workshop. 

Money Matters

Brought to you by: OneAscent Wealth, www.oneascentwealth.com 

According to the latest data from the USDA, parents can expect to spend between $200,000 – $300,000 raising a child from birth to age 17. And that’s just spending on necessities like food, clothing, transportation, and medical care! Once you add any extra-curricular, educational, or entertainment expenses of having a family, that number will surely go up. You and your partner probably have an extensive to-do list lined up for the next nine months. Try to tackle the following financial prep items a little at a time as you move closer to the big day.

First Trimester: Review Your Household Budget. The average cost for labor and delivery in the U.S. is almost $7,000. You could easily spend another $1,000 on newborn clothes, toys, a crib, car seats, strollers, and other essentials. Add in new monthly expenses like diapers, baby food, and daycare, plus any changes to your or your spouse’s employment status, and it’s safe to say that your new family probably needs a new budget. Review your last few months of credit card and bank statements. Determine how much money is left over at the end of the month and see if that amount can cover the upcoming baby expenses. If not, try implementing small changes that can free up much needed cash flow for when the baby arrives. Emphasize weekly meal planning to reduce fast food runs. Cancel subscriptions you don’t really use. Pay down any credit card debt you’ve been hanging on to.

Second Trimester: Update Your Estate Plan. No one likes to think about worst-case scenarios, but you really won’t be in the mood to write or update your will and health care directive when you’re caring for a newborn. Have these conversations with your partner and prepare those documents ahead of time. Also, if you and your partner don’t have life insurance, it’s probably time to purchase some. The younger and healthier you are, the lower your rates will be and the more coverage you’ll be able to afford.

Third Trimester: Plan for the Future. Babies bring many changes, and your future will now be markedly different. Start to consider what you want your family’s finances to look like: Do both spouses want to continue working? Will we need to move into a bigger space? Do we want our kids to go to college? 

The only thing we love almost as much as new babies is helping new parents give those babies a head start. If your family is growing, we at OneAscent would be honored to serve you by helping you prepare for the many wonderful changes that are soon to come!

-Matthew Bowerman

Advisor at OneAscent Wealth

[email protected], 205-313-9142

Investment advice offered through OneAscent Wealth Management, LLC, a registered investment adviser with the United States Securities and Exchange Commission.

Money Matters

Brought to you by: OneAscent Wealth, www.oneascentwealth.com

“I want to go to the jump place!” Our three-year-old son loves a trampoline park and often expresses his love with this simple statement. Bless his little heart, he’s yet to develop the categories of what the trip costs and how often we can go based on said cost. 

Most kids head into adulthood without a good understanding of money, but it does not have to be that way. As parents, we can teach our kids stewardship by orienting their hearts toward a world that is bigger than just their desires. Here are three ways parents can teach children the value of the dollar and start them on a path toward wisdom, stewardship, and generosity. 

1. Let kids help budget for a family vacation. When kids think about a big family vacation, they picture endless entertainment. Putting a tangible value on rides, shows, and meal costs can help kids set realistic expectations and prevent the trip from turning into a spending spree. As a family, make a bottom-line budget for your trip. Then sit down and make line items. Start with essentials: gas, hotels, and park admissions. Add in the cost of meals at a destination restaurant. As the leftovers from your top budget number shrink, your kids will see how additional spending changes the substance of the trip. 

2. Help kids set short-term and long-term financial goals. Buying everything your kid points to any time you go shopping can form a certain thought in your child’s mind. “I can have what I want when I want.” The next time your child eyes a new toy, talk to them about what that toy costs and how the child can help pay. A couple of extra chores might help the child appreciate the connection between work, money, and spending. 

3. Encourage kids of all ages to earn money. A part-time job for a teenager is a great way to create a mindset of stewardship. They are paid a wage based on the labor they provided. Help them open a bank account for depositing those wages. Begin talking with them about saving, giving, and investing early. 

Our great hope for our children is they would be fellow inaugurators of God’s kingdom. How they steward their money is an important component of their journey. When your children get a little older, consider bringing them into our office for a meeting. We can reinforce this idea of stewardship to your kids by talking through basic investing and savings principles all with the hopes they would view money as a gift to steward rather than a resource to exhaust. 

-John Beatty

Advisor at OneAscent Wealth

205-313-9142, [email protected]  

Investment advice offered through OneAscent Wealth Management, LLC, a registered investment adviser with the United States Securities and Exchange Commission.