Castle Financial

You've allocated your assets; you just may not realize it yet.

Asset Allocation Consider how your assets are allocated and if that allocation is consistent with your time frame and risk tolerance.

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!

The beans brewed for your morning coffee may have changed hands many times

The Economic Journey of Your Morning Coffee Few contemplate the complex journey that brought their coffee from farm to kitchen table.

Hispanic Heritage Month 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.

Thinking of volunteering in retirement? Some considerations.

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When was the last time you updated your will?

Will Power Preparing for the eventual distribution of your assets may not sound enticing. But a will puts the power in your hands.

📢 What happens to your 529 account if your kids don't go to college? 🎓 With rising college costs and changing job markets, more students are considering alternatives to traditional four-year colleges.

What If Your Kids Decide Against College? Rising college costs prompt students to seek alternatives; 529 account funds can be used for other education options.

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?

Social Security has been a fact of retirement since 1935; how much do you really know about it?

Social Security: By the Numbers Here are five facts about Social Security that might surprise you.

Take the time to think about these three things when shopping for your next vehicle.

Consider These 3 Things Before Driving Off the Lot There are a few things to consider when buying or leasing your next vehicle.

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. 🤝

Net unrealized appreciation (NUA) is a pretty simple concept, but the ex*****on can be difficult to understand. Check out the article to learn more.

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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.

How familiar are you with the Federal Reserve? Here is a quick history.

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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. 😎

If you’re 65 or older, you may need to enroll in Medicare. We’ll help you sort through the basics to determine if you qualify. Read more here:

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Bi-weekly mortgage payment can potentially accelerate your mortgage payoff. Sound interesting?

Bi-Weekly Payments This calculator estimates the savings from paying a mortgage bi-weekly instead of monthly.

Have you heard about the new retirement contribution limits from the IRS? Read about it in our new article.

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Stocks edged higher in August as investors monitored economic reports for the Fed's next move with short-term interest rates

Monthly Market Insights | August 2024 Stocks edged higher during a volatile month of trading as investors monitored economic reports about the Fed’s next move with short-term interest rates.

Compound interest can dramatically impact the future growth of your assets. Learn more.

How Compound Interest Works Use this calculator to better see the potential impact of compound interest on an asset.

What would you rather have: \$500 today or a 50% chance at \$2,000 tomorrow? Know your risk profile.

What Is My Risk Tolerance? This questionnaire will help determine your tolerance for investment risk.

Was it worth it? How long before your gas savings makes up for the cost of that new hybrid?

Interested in a Fuel Efficient Car? Estimate how many months it may take to recover the out-of-pocket costs when buying a more efficient vehicle.

Let's face it: budgeting can be one of the least exciting things about your finances. But if you need a budget (and you might), you may want to try the YNAB (You Need A Budget) app.

Some people are missing out on a crucial aspect of a comprehensive financial strategy. Budgeting can help you understand your cash flow, set financial goals, and make informed decisions about your money.

Unlike other budgeting apps, YNAB is all about proactive, flexible, and empowering financial management.

Here's the YNAB method:
1️) Give Every Dollar a Job: Prepare your spending by assigning each dollar a task.
2️) Embrace Your True Expenses: Break down non-monthly expenses into manageable monthly chunks.
3️) Roll with the Punches: Your approach should adapt to life changes. No guilt: It's your money!
4️) Age Your Money: As you become more aware, you'll start spending less and paying bills with older earnings.

YNAB also lets you share your subscription with five other people—including your favorite financial professional. 😉

By incorporating budgeting into your overall financial strategy, you'll gain a clearer picture of your spending habits, identify improvement areas, and progress toward your short-term and long-term financial objectives. 🎯

The choice of business structure is not a final decision. You may amend your business structure to your changing needs.

Choosing a Business Structure Entrepreneurs all face the same question, “Which business structure should I adopt?”

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.

Lost 401(k)s are a huge issue, with over 24 million forgotten. Learn more about what you can do in our new article.

Find That Lost Retirement Account With over 24 million “forgotten” 401(k) accounts, you may be surprised to learn of your unclaimed “found” money.

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.

Lifestyle inflation can be the enemy of wealth building.

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🏅 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)