Cornerstone Private Wealth Management

It’s important to align your savings strategy with the latest changes to retirement contribution limits. Here's an overview of what you need to know for 2024:

📈 For 401(k), 403(b), 457 Plans & Thrift Savings Plan:
- New Contribution Limit: $23,000 (up from $22,500 last year)
- 50+ Age Catch-Up: Still at $7,500, making the max contribution $30,500

💰 For Traditional & Roth IRAs:
- Increased Contribution Limit: Now $7,000 (previously $6,500)
- 50+ Additional Catch-Up: Remains $1,000, totaling max of $8,000

🔍 Roth IRA Income Phase-Out Range:
- Single Filers/Heads of Household: Between $146,000 and $161,000
- Married Filing Jointly: Between $230,000 and $240,000

If you're unsure about how these changes impact you, we’re here to help. Reach out anytime for guidance on your 2024 retirement savings strategy!

With 2024 in full swing, now is a great time for a quick estate planning check-in. Swipe through for some recent changes (and proposed changes) to consider ↩️

Remember, good estate planning is all about being prepared for the future, whatever it may bring. Share this post to spread the word.

As we dive into 2024, it's a golden opportunity to reflect on the twists and turns of 2023 that could warrant a retirement plan review 📆

Here's a quick checklist to ensure your plan accurately mirrors your current situation:

🔹 Life Changes - Significant life changes, such as marriage, divorce, the arrival of a new family member, or alterations in your income, can have a profound impact on your financial goals. It's essential to assess your retirement plan and make any necessary adjustments to align it with your evolving circumstances.

📈 Risk Tolerance Shifts - Different stages of life bring different levels of risk tolerance, and changes in goals may cause changes to your risk tolerance as well. With that in mind, it’s a good idea to regularly evaluate your risk tolerance in relation to your retirement plan.

🧾 Tax Considerations: Tax laws can undergo annual modifications, influencing the financial aspects of your retirement plan. If your financial situation has evolved, these changes may have a notable impact on your overall retirement strategy.

This checklist provides a general overview, but we’re here to offer personalized guidance. Feel free to send us a message or call the office to discuss!

After a November to remember, we thought we’d recap what Americans need to know about last month’s developments.

From encouraging inflation metrics to a stock market rally, market watchers had a lot to be thankful for in November. Swipe to learn more ➡️

Sending warm wishes your way as Thanksgiving approaches! Whether you're surrounded by a crowd or just a cozy few, we hope your holiday is full of joy and good health 🦃

Please remember our office will be closed on Nov 23-24. We'll be back in action on Nov 27. Enjoy a fantastic Thanksgiving! 🍁

📣 ANNOUNCEMENT!! 📣

The Social Security Administration (SSA) just released information regarding the 2024 cost-of-living adjustment (COLA). Swipe to get the details ➡️

Have questions or concerns as you prepare for the new year? Reach out anytime via phone or email. We're here to ensure you're in the know about Social Security benefits and your broader financial picture!

On this Veterans Day, we honor the courageous men and women who have selflessly served our country to safeguard the freedoms we cherish 🇺🇸

If you, a family member, or a loved one is a current or former service member, we extend our sincere thanks today and every day ❤️🤍💙

🌟 Are you a high-net-worth individual (HNWI)? 🌟

If you have liquid assets greater than $1 million, you are. And that means the end of the year is the perfect time to take stock of a few matters. Here are three:

Tax optimization: Year-end is the perfect time to maximize deductions, explore tax-efficient investments, and consider charitable giving for tax benefits. 📊

Portfolio review: Assess your portfolio to ensure it aligns with your goals and risk tolerance. Consider rebalancing if needed. 💼

Estate planning: Ensure your estate plan reflects your current financial circumstances and goals. Consider gifts or various trusts to reduce estate taxes. 📜

If you’re looking for more tips on year-end planning for HNWIs or want to chat about your financial situation in more depth, comment below or give us a call. We’d love to help set you up for success in the coming year! 📞💬

Did you know that, in 2023, nursing home costs averaged $8,000/month? That’s over $100,000 per year.

One of the best ways to maintain peace of mind as you age is to make sure you are covered by long-term care insurance.

Since October is Long-Term Care Planning Month, we’ve compiled a helpful Q&A to give you the basics on what this type of insurance covers and when it’s time to consider it. Swipe through to read more ↩️

Remember, these are just the basics! Feel free to reach out this October if you have more questions. There’s nothing more important than planning for a secure future. 🌼

Fixed insurance services offered through Cornerstone Private Wealth Management.

Did you know that 67% of Americans have no estate plan? 🤯

🙌🔒 Estate planning is like a safety net for your loved ones, ensuring your assets and wishes are taken care of when you're no longer around. Plus, it can save your family from a whole lot of headaches and disputes.

Within financial planning, an estate plan serves as a fundamental tool in mitigating taxes, protecting your assets, and ensuring a seamless transfer of wealth to your beneficiaries.

That said, have you considered these seven common estate planning mistakes?

1️⃣ Making no last will and testament or living will
2️⃣ Identifying only one beneficiary
3️⃣ Not discussing your end-of-life wishes with loved ones
4️⃣ Designating assets that may change or no longer exist at the time of your death
5️⃣ Not accounting or planning for estate taxes
6️⃣ Never updating your will after making one
7️⃣ Failing to specify legal guardians for your children

We’ve witnessed first-hand the financial hardships families face when a loved one passes without a strong estate plan–and we don't want you and your loved ones to experience a similar situation.

So, if you have questions or would like to connect further, don’t hesitate to reach out. We’re here to ensure that you and your family are fully protected and prepared for the future 👍

Year-end is just around the corner, and 2023 has been quite a ride! 🎢 Now, let's talk tax-smart moves to finish the tax year strong:

1️⃣ Boost Retirement Savings: Max out 401(k) contributions for tax benefits.
2️⃣ Tax Loss Harvesting: Offset gains by selling underperforming investments (up to $3,000 deduction per year).
3️⃣ Explore Tax Credits: Own solar or an electric vehicle? Discover if you're eligible for credits.
4️⃣ Business Owners: Make large purchases before year-end to secure deductions (80% bonus depreciation still available).

Got questions or want a year-end tax planning session? 📞 Reach out - we're here to help!

September is a soft month for equities historically, and it sure lived up to its stereotype, driven in part by a potential (now averted) government shutdown, higher interest rates, and sticky inflation.

Learn more about key developments by swiping through our month in review ➡️

The defining word for economic data in August: mixed. August inflation and labor market data offered both good and bad news as the stock market showed resilience.

Swipe to see the details on consumer pricing, the unemployment rate, and a few key facts ahead of the next Federal Reserve meeting on September 20 ➡️

If you’re an employer, you may be wondering how the recently enacted SECURE Act 2.0 will affect your employer-sponsored 401(k) plan 🤔 Although some of these changes won’t happen for a few years, here are a few ones employers should know:

🟢 Part-time workers now only need to work 500-999 hours for two consecutive years to be eligible for a company 401(k) plan.
🟢 Starting in 2023, small businesses may receive a credit covering up to 100% of the cost of setting up a retirement plan.
🟢 Employers can now offer employees the choice of receiving vested matching contributions to Roth accounts.
🟢 Starting in 2025, employers must automatically enroll employees in 401(k) and 403(b) plans, with exceptions for businesses with less than ten employees, churches, and governmental plans.

We know these changes are a lot to digest, so if you have any questions, reach out to us! We’ll be happy to discuss any adjustments that need to be made in light of this new law.

Labor Day is the perfect time to relax, spend time with family, and celebrate the hard work and dedication of those in the workplace — including yourself 🎉

No matter how you’re celebrating, we hope you have a wonderful long weekend.

This July 4th, we want to take a moment to recognize the heroes who have fought and died for the freedoms we so often take for granted in our nation ❤️🤍💙

It is because of them that we have the privilege to live and work in a country that values honor, freedom, hard work, innovation, and entrepreneurship. We hope that everyone has a fun and safe day, and don’t forget to thank a service member if you see one.

Keep in mind our team is out of office Tuesday, July 4. Should you have needs or questions, feel free to reach out, and we’ll get back to you upon our return!

Today, we want to say a very Happy Father’s Day to all of the fathers and father figures in our network 🎉 Enjoy this day dedicated to you–and to all of the love, laughs, and lessons you’ve imparted 🧡

On this Memorial Day, we wanted to take a moment to honor the fallen service members who fought bravely for our country’s freedoms. Their sacrifices will not be forgotten, and our hearts go out to the loved ones they left behind.

Taxes are always changing 💰 and while these changes won’t affect how you file in April, they may affect your financial decisions in 2023. Here are the biggest changes:

✅ Federal income tax brackets will increase, allowing taxpayers to shield more of their hard-earned income from taxation. You can find your new tax bracket here: https://www.cnbc.com/2022/10/19/irs-here-are-the-new-income-tax-brackets-for-2023.html
✅ The standard deduction is increasing for both married couples filing jointly and single taxpayers.
✅ The new IRS limit for FSA contributions for 2023 is $3,050, an increase of 7% from 2022’s threshold of $2,850.

Let me know if you have any questions or want to learn more! And share this post to help keep others in the loop ➡️

Sources: Inflation Adjustments Mean Lower Tax Rates for Some in 2023, The New York Times; The IRS just changed its tax brackets. Here's the impact on your taxes, CBS News

February is American Heart Month, and we’re putting our 💗s into spreading awareness about a condition that impacts nearly half of all U.S. adults: high blood pressure.

Below are a few important facts to keep in mind!

🩺 High blood pressure may be related to an increased risk of dementia.
🩺 High blood pressure impacts young people, too.
🩺 Many people with high blood pressure experience no symptoms.
🩺 High blood pressure poses special risks to women and African Americans.

This February, join us in taking steps toward improving heart health. While you’re at it, share this post to spread awareness!

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📖: Facts About Hypertension, CDC; 5 Surprising Facts About High Blood Pressure

Entering a new phase of life can be scary on its own, but the prospect of no longer earning steady wages can make retirement a particularly tough decision 😰

The good news is that there are some signs that you are financially ready to retire. Take a look at four key ones below.

1️⃣ You are debt-free. You want to pay off debt during your working years, not when you’re on a fixed income. Prioritize debt payoff ahead of retirement.

2️⃣ You have enough saved. You’ll generally want at least 70% to 80% of your pre-retirement income.

3️⃣ Determine a retirement budget. Confirm how much you’ll need (and whether you have enough) by creating a retirement budget–be sure to consider travel plans, etc.

4️⃣ You have reviewed your portfolio. Take a look at your current investments and plan ahead. Often, your portfolio will need to be more conservative in retirement.

Ultimately, if you’re thinking of retiring, it’s a good idea to talk to a financial advisor well ahead of time so that you can enjoy retirement to its fullest 🥳

On that note, what are you looking forward to most during retirement? Share in the comments below ↩️

Believe it or not, we’re already preparing for tax season 😲 As you enjoy the new year, here are a couple things you can do to get ready, too:

✅ Gather your tax forms. You’ll start receiving them in the mail soon, so set aside a special place for them. If you get any documents digitally, set up a specific file on your computer to store them.

✅ Review your prior year's return. If you have a different accountant preparing your return this year, send them a copy so they can review the return and ensure no documentation is missing.

✅ Schedule an appointment. Tax season appointments fill up very quickly, so don’t wait until the last minute!

If you’re looking for accounting assistance this spring, we’d be happy to help. Give us a call or send our team an email, and we’ll get the ball rolling!

January is Financial Wellness Month, which means it’s time to take a deep breath 💨 and review the numbers. Here are 5 things you should do to figure out how financially healthy you are:

💸 Subtract your liabilities from the value of your assets to get your net worth
💸 Review your monthly debt-to-income ratio (how much you owe vs how much you earn)
💸 Evaluate your housing costs – try to keep housing expenses to 30% or less of your monthly income
💸 Review your current investments and savings rate, then consider increasing them
💸 Set your financial goals for 2023, whether that’s an exciting trip or paying down debt

So what about you – what are your financial goals for 2023? Share them with us in the comments! If you’re not sure, don’t hesitate to reach out. We’re here to help!

As the new year begins in earnest, we thought this would be the perfect time to offer a brief “state of estate planning” address! Here are a few things to keep in mind in 2023:

🖋️ Those with a taxable estate above the lifetime exemption can expect to pay anywhere between 18-40% in estate tax in 2023. However, the good news is that the per-person lifetime exemption from estate and gift tax is expected to rise to approximately $12.92 million.

🖋️ I’ve seen more clients including real estate investments in their estates. If you're among those doing so, make sure you report the investment and pay any associated taxes to the IRS. Otherwise, beneficiaries will be subjected to tax audits.

🖋️ Strong, open family communication can be tough, but we encourage you to have these sometimes difficult conversations. It’ll be worth helping your family avoid potential legal fees down the road.

Need help this year with estate planning? We’re here–always feel free to reach out!


📖: 2023 Estate and Gift Tax Rates: What You Need to Know, The Motley Fool

November Market Commentary: Powell Threads the Needle? – Seven Group November Market Commentary: Powell Threads the Needle?

ILIT Trusts can provide financial advantages for you and your family. This video explains how Irrevocable Life Insurance Trusts can provide financial control and tax efficiencies.