INPAC Wealth Solutions

Today, we celebrate the contributions of workers everywhere!

In our jobs, we see the heart behind all that hard work. You put in countless hours to build a comfortable life, perhaps save for your children’s education, or create a strategy for your dream retirement.

We help families turn their aspirations into action steps based on their goals, time horizons, and risk tolerance.

So, this Labor Day, as you relax and recharge, take a moment to consider your own future. What does your dream retirement look like? How do you measure whether you are on track?

If these questions linger, we’d be happy to chat and explore ways that we can help you navigate your financial journey.

Happy Labor Day, and here’s to a bright future for all!

kicks off on September 15th, which coincides with the anniversary of the independence of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Mexico and Chile follow suit on the 16th and 18th.

This month-long celebration, which began as a week in 1968 and expanded in 1988, honors the rich histories, cultures, and contributions of American citizens with roots in Spain, Mexico, the Caribbean, and Central and South America.

Hispanic Americans have shaped our nation in countless ways, from art to science, cuisine to music.

As the talented Lin-Manuel Miranda reminds us,
"I am the one thing in life I can control. I am inimitable—I am an original."

Here’s to celebrating Hispanic Americans' unique and invaluable contributions to our national tapestry.

Emotions play a significant role in our relationship with money and financial decisions.

For some people, deep-rooted emotional obstacles tied to money can make certain aspects of personal finance more difficult and stressful.

Financial trauma is a real and impactful consequence of experiences like childhood poverty, economic downturns, fraud, and more—and can manifest itself during the personal finance process.

Some examples are:

● Financial inaction: Feeling overwhelmed and unable to take control.
● Decision paralysis: Difficulty making financial choices due to anxiety.
● Scarcity mindset: A pervasive fear of running out of resources.

Recognizing these and other potential roadblocks is crucial for pursuing financial well-being.

Financial professionals can offer a supportive environment to help address some of these challenges. They’re way more common than you might think.

🐘🐴 Ever wondered why a donkey and an elephant became the symbols of our two major political parties?

🎨 Political cartoonist Thomas Nast made these symbols popular in the late 1800s. In 1870, Nast satirized the Democratic Party as a donkey, mocking their stubbornness in the face of progress during the Civil War era. The symbol resonated with the public and stuck.

🐴 Over time, Democrats reclaimed the donkey, transforming it into a symbol of their determination, resilience, and tireless work ethic.

🐘 In 1874, Nast struck again, this time depicting the Republican Party as an elephant. Nast chose the elephant to represent the party’s strength, intelligence, and dignified nature, traits the GOP sought to embody.

Today, these mascots continue to embody the spirit of their respective parties as we head into another election season. 🗳️

Did you know the global AI market is projected to reach $1.8 trillion by 2030?

That's a forecast, and it’s subject to change without notice, but the growth prospects may present exciting opportunities across various sectors.

While we see headlines about a handful of well-known companies, there's a whole network of “Pick-and-Shovel” firms quietly fueling the AI revolution.

Who are the "Pick-and-Shovel" players?

Semiconductor manufacturers, cloud infrastructure providers, and AI chip designers are paving the way for AI adoption. These "Pick-and-Shovel" companies may play a critical role in building and scaling AI technology.

Financial headlines can be distracting, and the fear of missing out on the next big thing can lead to do-it-yourself investors making rash decisions.

We are closely monitoring how AI is changing the economic landscape and determining if AI might play a role in our clients' overall strategies.

What are your thoughts on AI's role in the future of finance?

Are you taking full advantage of your workplace benefits? Are health savings accounts (HSAs), 401(k)s, disability insurance, and flexible spending accounts (FSAs) offered by your workplace?

Here's a quick breakdown:

HSA: Triple tax-advantaged account for qualified medical expenses. Your contributions are pre-tax and grow tax-deferred, and withdrawals for qualified expenses are tax-free. If you spend your HSA funds on non-qualified expenses before age 65, you may be required to pay ordinary income tax and a 20% penalty. After age 65, you may be required to pay ordinary income taxes on HSA funds used for non-qualified expenses. HSA contributions are exempt from federal income tax; however, they are not exempt from state taxes in certain states.

401(k): Retirement savings plan with pre-tax contributions and potential employer matching. We can help individuals determine a contribution amount that fits their situation. Once you turn 73, you must take the required minimum distributions from your 401(k). Withdrawals are taxed as ordinary income and may be subject to a 10% federal income tax penalty if taken before age 59½.

Disability Insurance: Income replacement if unable to work due to illness or injury—a safety net designed to help you and your family. Disability obligations are dependent on the issuing company’s ability to make claim payments.

FSA: A way to use pre-tax dollars for eligible healthcare and dependent care expenses. Unlike an HSA account, you may have to spend your FSA funds before year-end, adhering to the “use it or lose it” rule. There are some exceptions.

Don't miss out on these valuable resources! Understanding and maximizing your benefits can help your financial situation.

Need help navigating your workplace benefits? Let's connect. We might be able to offer some insights and help create a personalized strategy aligned with your financial goals. 🤝

The alarming rise in elder financial exploitation (EFE) is reaching new heights, with adults aged 60 and over reporting more than $1.6 billion in losses per year due to scams, according to the Federal Trade Commission.

What's even more concerning is the increasing sophistication of scams fueled by artificial intelligence (AI). 🤖

Scammers are now using AI-generated voices and deep fake videos to impersonate loved ones, government officials, and even celebrities, making distinguishing reality from fiction more challenging than ever.

The Financial Crimes Enforcement Network (“FinCEN”) released its Financial Trend Analysis in April 2024. It focused on patterns and trends identified in Bank Secrecy Act (“BSA”) data linked to Elder Financial Exploitation (“EFE”).

Key findings include:

▪️ Banks filed 72% of all EFE-related filings.
▪️ 80% of EFE-related filings involve transferring money to a stranger for a promised benefit that the older adult does not receive.
▪️ 20% of EFE-related BSA filings involve theft, where a trusted person steals from an older adult. Unfortunately, 40% of elder theft reports named the elder adult’s children as the perpetrators.
▪️ Perpetrators mostly rely on approaches that minimize direct contact with bank employees, including previously compromised usernames and passwords, guessing passwords, or phishing emails that elicit replies containing sensitive information.

We all have a role in helping protect our seniors from financial exploitation.

Be sure to take proactive steps to help educate and protect your loved ones. Let us know if you’d like to discuss ways to potentially safeguard their financial well-being.

Frequent flyers, this one's for you! 📱

If you have an iPhone, Google has made it super easy to get up-to-the-minute updates on flight status—there is no need to use a flight tracker app or go to the airline’s site.

Just text yourself your flight number (like AA1234), and it will appear in your messages as a hyperlink.

Click on the link and select “flight preview” to get all the info you want.

Thought it was a pretty good hack I hadn’t heard about. Hope it’s helpful. 😎

As summer winds down and college move-in day approaches, it's important to think beyond the dorm room essentials.

Here are three key areas you might want to address before your student heads off to campus:

1️⃣ Legal Authorizations: Once your child turns 18, they're legally an adult. Consider establishing a Power of Attorney (POA) if you want to continue to play a role in their healthcare and finances. Also, a Family Educational Rights and Privacy Act (FERPA) authorization can help if you want access to their academic records. Having these documents in place may allow you to step in if needed.

2️⃣ Allowance and Financial Responsibility: Have a candid conversation about budgeting and financial responsibility, including credit card use. Determine an appropriate budget, and don’t forget to decide whether they can continue to use your accounts for things like Amazon and Uber.

3️⃣ Out-of-State Insurance Coverage: Review your health insurance plan and check to see if it covers your student's location. Explore renters insurance if they'll be living off-campus. If they're leaving their car at home, you might be eligible for a modified insurance rate.

These are important topics to discuss as your children leave “the nest.” If you have any questions, please reach out. We can work with your legal professional to help your family get the appropriate documents in place.

With the Summer Olympics in full swing, it's hard not to be inspired by the athletes' dedication and preparation. 🏊‍♂️🏆

Just like swimming legend Mark Spitz, who famously said, "If you fail to prepare, you're prepared to fail," success in any field–including finances—requires preparation!

Don't be a spectator in your financial future. Now is the time to strategize and equip yourself with the knowledge and tools you need to pursue your goals.

A little preparation today can help you tomorrow!

Here’s another observance you might have missed—this week is National Simplify Your Life Week. Who knew?

It made me think about organizing and cleaning out some of our closets and maybe even tackling the garage (who doesn’t love a clean garage?). But more importantly, it’s also a good reminder that your finances can become cluttered and unorganized just as easily as your home.

Here are a few simple steps you can take to simplify your financial life:

Review your budget: Take a close look at your income and expenses to see where your money is going and identify areas where you can cut back.

Consolidate accounts: Combining multiple accounts or credit cards can make tracking your spending and managing your money easier.

Automate your finances: Consider setting up automatic bill payments and savings transfers to help take the guesswork out of monthly finances.

Declutter your wallet: Get rid of old receipts, unused gift cards, and expired coupons to create a more organized and streamlined wallet.

If you're looking for guidance on consolidating and organizing your finances, we can offer a few tips.

The lazy days of summer are coming to a close, and we’re now entering National Back to School Month! 📚✏️

This time of the year can be both exciting and stressful. There’s a lot to coordinate: purchasing supplies, signing up for afterschool activities, and simply readjusting schedules.

But there’s no doubt that education is one of the greatest investments we can make in our children’s futures. This month, whether you have children or grandchildren, we can all help support the next generation, especially those less fortunate than us.

Think about donating supplies, volunteering your time, or contributing financially to initiatives such as Junior Achievement USA—every bit helps.

Helping families with financial strategies to fund educational goals is one of the most rewarding parts of our jobs. It is also so fulfilling to support education in our communities during this time of the year.

What community events do you participate in?

In 2023, the number of 401(k) millionaires grew by 11.5%.

Want to join the ranks of 401(k) millionaires? Avoid these common pitfalls!

❌ Not contributing enough
In 2024, the annual 401(k) contribution limit is $23,000 ($30,500 if you're 50+)
Review how much you contribute each year and consider making changes, if possible.

❌ Tapping into your 401(k) prematurely
Borrowing from your 401(k) might disrupt your investment strategy. Taking money out of your 401(k) should be just one option to consider if you are preparing to make a purchase.

❌ Overspending and living beyond your means
By reviewing your expenses and creating a budget, you may be able to prioritize retirement savings.

The secrets to becoming a 401(k) millionaire?
✅ Commit to a contributions strategy and stick with it
✅ Choose investments that align with your risk tolerance and goals
✅ Set long-term goals and periodically monitor your progress

Remember, once you turn 73, you must take the required minimum distributions from your 401(k). Withdrawals are taxed as ordinary income and may be subject to a 10% federal income tax penalty if taken before age 59½.

Remember, slow and steady wins the race! By staying committed to your long-term goals, you just might be able to join the growing number of 401(k) millionaires.

Here’s a question we often get asked: “Should I help pay off my child’s or grandchild’s student loans?”

Paying off a loved one’s student debt can be a generous gesture; however, it’s essential to weigh the pros and cons before deciding.

👍 Pros
Allows students to focus on their careers and future financial goals
Can help the student pursue financial independence sooner
May strengthen family bonds and relationships

👎 Cons
May impact the parent’s or grandparent’s retirement strategy
Could create a sense of entitlement or diminish the student’s financial responsibility
Might have tax implications for both parties. Consult your tax, legal, and accounting professionals before applying a payback strategy.

🤔 Considerations
Assess your own financial stability and retirement approach before committing.
Determine if it's a gift or a loan, and communicate the terms.
Explore alternatives, such as co-signing a refinanced loan or offering partial payments.

🌟 Strategies
Set clear boundaries and expectations for financial responsibilities.
Consult a financial professional who may have experience with student loan payback programs and can provide guidance.

Every family’s circumstances are different. While paying off student loans can be a meaningful way to support your child or grandchild, it’s crucial to decide on the benefits and limitations for everyone involved.

🏅 Who else is looking forward to the kickoff of the 2024 Summer Olympics?

Officials in Paris project that 11.3 million people will attend the Summer Games, which run from July 26 through August 11, and 3.9 million will attend the Paralympic Games, which take place from August 28 through September 8.

Check out the list of events!! https://olympics.com/en/sports/summer-olympics

From the core events in track and field, swimming, gymnastics, basketball, tennis, soccer, and volleyball….

…to some new and lesser-known sports such as breaking (breakdancing), surfing, sport climbing, skateboarding, badminton, modern pentathlon (fencing, swimming, horse riding, shooting, and running), and handball!🕺🛹🏄‍♂️🧗‍♀️

Can’t wait to watch!

What’s your favorite event

A growing number of retirees are choosing to rejoin the workforce, a trend known as "unretiring." Recent studies show that:

➡️ The Wall Street Journal reports that one in eight retired people plan to return to work in 2024.

➡️ That follows a 2023 Paychex survey reported by Bankrate that showed one in six retirees are considering returning to work.

If you’re thinking about unretiring or know someone who is, here are some tips to help navigate the process:

🗣️ Practice interviewing.
Sharpen interview skills by practicing with friends, family, or career counselors. Many online platforms, such as Interview Cake, offer mock interview services: https://www.interviewcake.com/

🤝 Focus on the value proposition.
Shift your mindset to remember that you have valuable experience and skills to offer. Develop a clear value proposition highlighting your unique strengths and how you can benefit your employer.

👥 Connect with re-entrants.
Join online communities or support groups specifically for people considering unretirement. Sharing experiences and challenges with others can be very encouraging.

Many people feel unsure or insecure about returning to work after retirement. There are many resources available to help, such as the following:

- AARP Work Reimagined: https://www.aarp.org/entertainment/books/bookstore/money-work-retirement/info-2016/work-reimagined-book.html (Website by -AARP focused on helping people find meaningful work in later life).
- Encore.org: (Nonprofit organization dedicated to second careers for experienced professionals)

According to a 2023 study by the Pew Research Center, back-to-school dates are as early as July in some states, with the highest percentage returning in the middle of August.

School tends to start early in the South and later in the Northeast.

As the accompanying chart shows, more than two-thirds of students in the East South Central division (AL, KY, MS, TN) went back to school the first week of August. They joined another 19% of students who started classes even earlier.

In contrast, in the six New England states, almost no one goes back to school before the last week of August.

In the Mid-Atlantic states (NJ, NY, PA), about three-fourths of students won’t hit the books until after Labor Day.

Regardless of where you live, back-to-school preparations and shopping sprees are likely top of mind. Good luck to everyone!

We work with many business owners, and we have found that quite a few are unaware of a new regulation called the Corporate Transparency Act (CTA). In fact, a survey of National Small Business Association (NSBA) members showed that almost 47% of respondents had no idea what the CTA was.

What is it?
The CTA requires that any business owner with more than a 25% stake in a company, directly or indirectly, must be included in the company's Beneficial Ownership Information (BOI) report.

Who needs to file?
If you own more than 25% of a company, directly or indirectly (including stockholders, partners, LLC members, etc.), you are a shareholder.

Exemptions
➡️ Sole proprietorships and general partnerships typically don't need to file.
➡️ Federally regulated businesses such as publicly traded companies, financial institutions, and insurance companies may be exempt.
➡️ Businesses with a minimum of 20 full-time employees, more than $5 million in revenue, and a substantial footprint in the US may also be exempt.

Deadlines
Businesses formed before January 1, 2024: The deadline is January 1, 2025 (if you meet the ownership threshold).

Businesses formed after January 1, 2024: Deadline: 90 days from receiving approved state business registration.

For simple questions, you might find answers on the Financial Crimes Enforcement Network website under Beneficial Ownership Information.

We’re providing this information so you can stay up to date on current legislation. It’s not a replacement for real-life guidance, which should come from your tax, legal, or accounting professional.

Let us know if you have any questions! We may have resources that can help.

When families get together during the summer months, it's a wonderful chance to spend quality time reconnecting and discussing important matters, including your financial future.

One valuable tool we suggest to our clients is the "family meeting."

What is a family meeting?

- Clients invite family members to join us for a high-level overview of their financial strategy.
- As financial professionals, we can help answer questions about investment approaches, key goals, estate decisions, and more.
- We can provide information so that everyone knows where important documents are kept and that we're here to support them.

Sometimes, family members are ready to start a relationship with a financial professional or ask for an evaluation of their existing financial strategy. Others just appreciate knowing that their parents' or grandparents' assets are being taken care of and meeting the professionals with whom they have entrusted the management of their personal finances.

As your family gathers this summer, consider the benefits of bringing everyone together for a financial family meeting.

A 2024 survey by Caring.com revealed that only 32% of Americans have a will as part of their estate strategies. Many put it off, thinking it’s too early or they don’t have enough money to need one.

Estate management can be complex. So, it can be helpful to consider your estate strategy as an ongoing process. We’ve seen many families negatively impacted by common preparation mistakes. Here are just a few:

1️) Overlooking the benefits (and limitations) of a Financial Power of Attorney or Advance Health Care Directive

2️) Not providing details on how to access digital tools

3️) Not accounting for non-financial assets such as heirlooms, pets, etc.

4️) Not periodically reviewing your estate strategy

5️) Not preparing for the expiration of the Tax Cuts and Jobs Act (TCJA) at the end of 2025.

Even if there are no changes to your situation, you may want to meet periodically with your estate team to discuss whether your estate strategy reflects current best practices in estate management.

In a 2024 National Institute of Retirement Security survey of working-age Americans, 79% agree that the nation faces a retirement savings crisis, up from 67% in 2020.

And more than half of Americans (55%) are concerned about their financial security in retirement.

Gen Z, the youngest adults in America, thinks they have a potential solution. Have you heard about the FIRE 🔥 movement?

The FIRE philosophy (Financial Investment, Retire Early) urges workers to save up to 70% of their income for early retirement. According to a survey by Credit Karma, more than 50% of Generation Z say they are part of the FIRE movement.

However, the problem is that 76% of Gen Z have no company-sponsored retirement plan, and nearly 60% lack a savings account. So, the data would suggest that the vast majority of people lack the tools needed to pursue the early retirement dream.

When was the last time you assessed your retirement strategy?

Let us know if you’d like to review your approach to see if you’re on track to pursue your retirement goals.

With the uptick in do-it-yourself (DIY) investing, more people than ever are trying their hand at managing a portfolio. This can be risky, and individual investors find themselves attempting to manage several potential missteps.

Here are the 4 biggest missteps DIY investors often make:

1. Letting Their Ego Interfere: Ego can lead traders to overvalue their own ideas, abilities, and knowledge about the financial market. Ego can lead to poor decision-making, especially in pressure-filled situations.

2. Making Emotion-Based Decisions: Managing your emotions is one of the most challenging aspects of investing. DIY investors often look for a person to ask, “What do you think?”

3. Portfolio Concentration: DIY investors inadvertently find their portfolios concentrated in a few assets, which may not align with their goals, time horizon, and risk tolerance.

4. Failing to Use Portfolio Management Tools. Modern portfolio management tools can help guide the process of managing money. However, some DIY investors don't understand them or how to use them properly.

DIY investing works for some, but it can be challenging, and individuals may find themselves in complicated situations and searching for answers. A financial professional may be able to offer a second opinion.

Happy Independence Day!

Hoping you and your family and friends have a wonderful long weekend!

And while you’re celebrating, don’t forget to think about our freedom, what freedom means to us, and how we can work together to uphold those ideals in our own communities.

Whether you're hosting a backyard barbecue, watching a parade, or simply enjoying the day with loved ones, remember the courage and determination of those who fought for our independence.

Here’s to the land of the free and the home of the brave! 🎇

June 28th marks National Insurance Awareness Day.

Here are a few tips to keep in mind:

1️⃣ Periodically review your life insurance. As your wealth grows, it may put more demands on your life insurance coverage. Does your policy adequately reflect your current net worth? Would it support your family's lifestyle in the event of the unexpected?

Remember, several factors affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

2️⃣ Check your umbrella liability insurance. These policies extend over your existing limits and coverage provided by other policies, such as your car and homeowner's insurance.

Much like life insurance, the cost and availability of an umbrella policy will depend on a variety of factors. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

3️⃣ Don't overlook disability insurance. One of your greatest assets is your ability to earn an income. Disability insurance can replace a portion of your income if you become unable to work due to covered illness or injury.

A financial professional may be able to help you compare different policies because not all policy types and product features are available in all states. Remember, any disability obligations are dependent on the ability of the issuing company to make claim payments.

4️⃣ Consider insuring your valuables. You may have unique valuables, from fine art to jewelry, that require specialized insurance coverage.

📱Ever read a text from someone and realized days later you forgot to reply?

💡 Just learned…. After you read it, swipe right on the text, and it will be marked again as unread, making it easier to remember to respond later.

Some other "Did You Know" iPhone tips that might be helpful:

➡️ Most social media sites strip out metadata revealing when, where, and how a picture was taken, but not when you text it. So, to remove this when you text, hit "options" at the top of the image you are sharing and then click to turn the location off.

➡️ Go to the Health App and set up your Medical ID and Emergency Contacts so first responders can access critical medical and contact info from your phone even when it's locked.

Were any of these new for you? Any other tips you have are welcome! 👇📱

Warren Buffett's hiring advice is a powerful reminder.

His wisdom extends beyond hiring an employee—it can be especially crucial when choosing a financial professional. Integrity is a key part of the foundation of a relationship that focuses on personal finances.

Buffett's words serve as a guiding light: Surrounding yourself with people who embody integrity is one key to success. 💡

💡 During your financial journey, attempting to avoid common IRA mistakes can help as you pursue your goals. Let's dive in:

1️⃣ Not keeping up with new RMD rules
Required minimum distributions are how the IRS collects taxes from tax-deferred retirement plans. Before 2019, RMDs began in the year you turned 70½. In 2019, the SECURE Act raised the RMD age to 72, and SECURE Act 2.0 raised the RMD age to 73, and by 2033, age 75. Remember, withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.

2️⃣ Not seeking guidance on new Inherited IRA rules
Another provision of the SECURE Act includes a new 10-year distribution period, effectively eliminating the "stretch IRA" strategy, which allows beneficiaries to take distributions over their lifetime. There are some exceptions, but the new rule has prompted some to review their estate strategy.

3️⃣ Maintaining multiple Traditional IRAs and rollover accounts
If you have multiple IRAs, the IRS treats them as a single IRA under the "aggregation rule." When computations for taxes or distributions are made, the combined value of all your Traditional IRA accounts has to be considered. Keeping track of them is critical.

We're on this journey together. If you would like to review your retirement strategy, do not hesitate to contact us. 💪