The basic premise of financial planning is to create a roadmap for your financial future, which includes setting goals, identifying risks and opportunities, and creating a plan of action to help you achieve your objectives. It's about making the most of your income, managing your expenses, and building wealth over time. These are all tasks that sound easy, but many times it’s these priorities that we push to the side because we’re too busy or we feel that since it’s long-term planning, it can wait. The saying “time waits for no one” comes to mind with this thought process. It’s never too early nor too late to address this.

At its best, an encore career will provide purpose to an individual after they make that transition from working. It will engage them, challenge them, provide them with a social network, and provide some income.

529 Plans are investment vehicles meant to help fund college education expenses. They allow parents (and others) to contribute to a plan in the name of a child with the intention that the money is used for education expenses in the future. Those dollars can be invested and grow tax free and distributions are tax fee if used for qualified expenses. One of the historical downsides of 529 plans is that if the child does not go to college, then distributions will be subject to income tax and potentially penalties. So one of the challenges parents faced was what if my child doesn’t go to college? The good news is that the rules have changed. Beginning January 1, 2024 unused 529 account funds may be transferred to a Roth IRA in the child’s name with no penalty.

Those with a well-functioning crystal ball sold all their stocks, bonds, and cryptocurrencies at the beginning of this year. For everyone else, there haven’t been many places to hide. After last year’s tranquility, we are being reminded daily that investments can, in fact, decline in value. These periods can paralyze investors with fear, so it is a valuable exercise to step back and assess the situation objectively.