Benjamin A. Stark

What is a safe harbor retirement plan? 🚢

A safe harbor plan is a way for employers to ensure that their employees receive some sort of matching contribution.

Without the plan being a safe harbor, businesses can run the risk of reducing contributions from highly compensated employees/owners. 😲

Safe harbors can also contribute funds on an employee's behalf even if the employee doesn't contribute at all.

Having this sort of retirement plan in place can help the business with additional tax deductions, allow owners to contribute as much as they want without consequence, and attract talent to the company.

Are you expecting a tax refund this year? If so, there are a number of dates to be aware of as to when you'll receive your refund.

If you don't expect to receive a refund, then there may be additional strategies to help you obtain additional deductions and/or credits.

Typically, the IRS tries to process all returns within a 21 day window. Taxpayers are anticipating delays due to Covid, so if you have the option to e-file your return the IRS recommends you do so.

Check our the article below in the comments for additional information about your refund.

And remember, always consult your tax professional.

Many life insurance companies last year stated they had a record number of new applicants looking to obtain coverage.

If you're looking to obtain coverage this year and considering a whole life or universal life policy, sometimes the higher premiums compared to a term policy can scare you away.

A great way to help reduce premiums is to do a 1035 exchange. If you have an old life insurance policy with cash value you can "rollover" the proceeds into a new policy. This can be used to help lower premiums, provide a higher death benefit, or cover costs of riders that might appeal to you.

Check out the article below for more information.

"Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that." - Dr. Martin Luther King, Jr.

This.

Did your business experience significant growth during the pandemic last year?

If so, establishing a retirement plan could be a great way to help reduce your larger tax bill while stocking away money for your future.

Most people are familiar with IRAs or Roth IRAs, but other plans exist as well. These plans can allow significant contributions that can be deducted.

March 15 is the deadline to file a business return, so take some time today to understand your options.

In December, stock prices rallied thanks to multiple COVID-19 vaccines and the signing of a new fiscal relief bill.

Monthly Market Insights | January 2021 Monthly Market Insights | January 2021 U.S. Markets A tumultuous year ended on a positive note as stocks rose in December, spurred by the rollout of multiple COVID-19 vaccines and the signing of a new fiscal relief bill. The Dow Jones Industrial Average, which lagged all year, picked up 3.27 percent...

The stock market crashed by over 30% last year.

If $1 million was invested in a S&P 500 index fund, you would have experienced a decline of over $300,000!

Today? That $1 million would be up around 15%, or about $150,000.

While this wild swing is certainly unusual, it just goes to show that nobody can predict the future when it comes to investing.

Investing with your emotions, aka pulling out your money at the low, would have caused a financial hit of $450,000. That's a tremendous loss.

It's so important to create a plan and stick to it. Having the guidance of a financial professional can greatly help as well. Check out the chart below to see the past year of the S&P 500's market swings.

Roth IRA or Traditional IRA? Which one is better?

This has been a long standing debate in the finance community. Each type of account has its pros and cons.

Other external factors come into play as well, just as the current tax environment, your own personal tax situation, or recommendations from your tax adviser.

Check out the infographic below to learn the big differences between the two.

Do you want to lower your tax bill each year? 🙋‍♂️

I had a great call this morning with The Fortis Agency discussing strategies that small businesses can implement to create deductions AND save for retirement. 🤩

The pandemic has actually created tremendous opportunity for certain businesses and I've seen all over LinkedIn of stories how businesses have doubled, tripled, or even quadrupled revenue this year.

While making more money is obviously the American dream, Uncle Sam steps in to take his share. 🤬

If lowering taxes is something that interests you, shoot me a note. We can discuss options that might make sense for you and your business.

"When you reach your financial goals, you'll barely remember the things you gave up to achieve them." - David Young

Happy New Year everyone! While I'm sure most of us have seen plenty of cliché posts about how toilet paper was the most valuable commodity of 2020, I think it's equally important to share our goals with an outcome we can achieve.

This quote inspired me to take action towards my financial future. I love eating out and I realized I was spending about $150 a month on takeout. My goal is to reduce that to $50 a month and cook at home more often.

What's my outcome? I'm going to save that $100 a month towards my next home.

What's something you're going to adjust this year to achieve financial success?

From my family to yours, wishing everyone a very healthy and safe holiday season!

2020 ends in 10 days. You can do anything you set your mind to. Invest in that business, real estate, education program you've always to. Take the risk.

Use 2020 as your motivator to completely crush 2021. 💪

Thinking of making a gift for someone, but not sure what to do?

As 2020 comes to a close, each of us has a $15k annual limit to give a gift to someone else. This limit is $15k per person so 2 different people would be $30k total.

You can make a big impact in someone's life by investing in their future with this annual limit. Options include college savings accounts, retirement accounts, or even life insurance policies.

If gifting is important to you and you're not sure where to start, let's chat. I can help brainstorm options that you can consider moving forward.

2020...what a year. Depending where you are right now (I'm in northern NJ) you are probably anticipating a massive snowstorm. I'm expecting at least a foot lol.

I have taken some time this morning to reflect on how this year has passed and I wanted to share my new normal with everyone. I'm dressed down 99% of the time, rocking some music with my air pods in, and trying to stay positive.

While it's tough to not see family and friends this holiday season, I still have a lot to be grateful for.

I hired different marketing consultants to help me get acclimated with the transition to fully online, my business has grown through numerous efforts, and I've picked up new recipes to impress my wife with.

While this year obviously was not what I expected it to be, I still have a lot to be proud of and can say "I did it."

What's something you're proud of this year? I want to hear as much positivity as I possibly can in the comments below!

4%.

Most people are familiar with that number. It's often referred to as the "safe withdrawal rate" of your investment portfolio when you retire.

A study done by Bill Bengen in 1994 supported this 4% number for many people. However, that is nearly 30 years ago. Interest rates have fallen, investors have experienced major market crashes since, and the economic landscape has changed.

3% is becoming the more popular number and it can be tough to imagine living off just 3% of your portfolio. That's $30k a year off $1 million.

That's why it's so important to plan early on and take the right steps to set yourself up for financial success.

Check out the article below to learn more about the future of retirement planning.

As this year draws to a close, it's refreshing to look back on what's happened in such an unknown year.

While there were obvious obstacles to overcome, we overcame them.

9 months since the start of the pandemic and many of us have adapted to working from home, obeying social distancing orders, and accepting the fact that our lives changed.

Always remember that you overcame these last 9 months and use it to push yourself into 2021.

Owning a small business has replaced the American dream of being a homeowner.

Thanks to figures like Steve Jobs, Jeff Bezos, and Mark Zuckerberg, people are more inspired every day to become entrepreneurs.

As a CEO of a small business, there's a lot of tasks that need to be handled both big picture and small. A big task that gets overlooked is creating a financial plan. As CEO, you have the power to delegate this task to a CFP® professional.

Check out this article to learn more about some considerations to think about as you grow your business.

https://e.gv6.co/ayQzIO

Got kids?

If you do, it's likely you listed them as a direct beneficiary of your life insurance policy (if you are a parent without life insurance we need to talk).

However, listing minors as a beneficiary of a life insurance policy isn't always the best idea. Minors aren't allowed to receive life insurance proceeds, so the courts will have to step in and appoint a guardian.

The guardian may not manage the money in the way you initially intended. If you've ever read A Series of Unfortunate Events you'll know what I'm talking about.

Check out the article below in the comments to learn how protect your children with your life insurance policy.

This is Tony.

Tony had the life. He earned millions of dollars on the Sopranos.

Tony's net worth amassed to about $70 million.

One day, he suddenly died. He did not plan for this.

His estate owed about $30 million in taxes.

Don't be like Tony.

"If someone owes you money, even if you gotta crawl, you get it" –Paulie Walnuts

(Link below in the comments to read the full story)

Putting money in a savings account is a great strategy to ensure you have immediate access to cash in the event of a financial emergency.

Beyond that? There really aren't many compelling reasons to keep money in a savings account. In fact, having too much money in a savings account can cause issues.

Most accounts today yield between 0-1% interest. However, inflation is typically around 2-3%. So while on paper you haven't "lost" any money, the value of your money decreases as prices of food and other essential items go up.

Share any ideas or strategies you have in mind that can help your money grow and protect against inflation.

In November, stock prices powered higher and energized investors thanks to a month-long succession of positive news events.

Monthly Market Insights | December 2020 Monthly Market Insights | December 2020 U.S. Markets Stock prices powered higher and emboldened investors in November thanks to a series of positive news events. The Dow Jones Industrial Average, which has lagged much of the year, led the rally, jumping 11.84 percent. The Standard & Poor’s 500 Ind...

"Financial independence is a mental, emotional, and educational process." - Robert Kiyosaki

Obtaining financial independence is a lot more than just putting numbers on a page and making projections on how much you need to save, etc.

It's a human, emotional process. Life changes every day. We experience beautiful moments, but also ugly ones. This affects our mindset, our thought processes, and how we process information and situations moving forward.

This quote speaks to the power of strong mental health and the direct relationship it has with money.

Self-employed? Here's some great tips on how to plan for your retirement.

🎯 Set a retirement savings goal. How much money will you need in retirement?

🎯 Then determine which account type is best suited for your needs. These range from a SEP IRA to a pension plan and even cash value life insurance.

This is where working with a CERTIFIED FINANCIAL PLANNER™ professional can be a huge help. They can help you figure out projected expenses, taxes, and other considerations in retirement. 🙌

Check out the article below for some more info on tips for solopreneurs.

What is your retirement lifestyle going to look like?

As a couple, the average monthly expense is over $4,000. This only includes the basics and doesn't cover vacations, gifts, entertainment, going out to eat, leaving a legacy, the list goes on.

Check out the infographic below to get an idea of the costs associated with retirement, they are very eye opening. If you want some tips and tricks on how to live financially confident, shoot me a note.

Check out this week's top 3 financial planning strategies to consider when you are in your 50s.

✔️ If you haven't had a conversation with your parents already, make sure you speak to them about their planning needs and where to find important information should they pass away or need long term care.

✔️ As your kids transition to college or other programs, speak to your attorney about updating your own legal docs. Also, speak to your kids about getting them HIPAA and POAs. If your child (now age 18) goes off to school and experiences a medical emergency, by law hospitals are not allowed to disclose any information to you.

✔️ Max out workplace retirement plans and other savings vehicles. Consider utilizing catch-up features to bolster your savings.

I belong to a local chamber of commerce in my community. One of the long time members was updating us on what's new in the community.

It was surprising and saddening to hear of the passing of one of our newer members. He reportedly experienced trouble breathing and when he went in for tests, he passed.

As he was only 42, he leaves behind his wife and young children. The chamber was asking for any resources or information to help the family relocate to a smaller home or apartment. The cost of the existing house was now out of reach.

The husband was a business owner and the sole bread winner for his family. While I don't know what kind of planning he did prior, it is clear that not enough planning took place.

It's so important to plan, especially as a small business owner. My heart goes out to his wife and kids as they grieve and try to overcome this newfound financial burden.

The conversation around mental health has never been more important.

NYC recently announced their schools would go virtual for the rest of the academic school year. With more states likely to follow and impose additional restrictions, it's so important that each and every one of us takes care of ourselves and supports others.

Mental health encompasses everything we do in life. Nutrition, exercise, relationships, strong finances. By managing each of these aspects or bringing in the help of a professional, it gives us a greater chance of having better mental health.

What would you say if your employer told you that they would provide you with $1 million of life insurance and they would pay for it?

Or if they offered you full income replacement coverage if you experienced a sickness or injury?

Almost all of us would of course say yes. While many employers do offer some form of employer-paid insurance, we still go about our daily lives being underinsured.

It's super important to consider how much insurance you need to protect yourself and with open enrollment occurring right now, it's a great time to review and ensure you're up to date.

"Difficult roads often lead to beautiful destinations. The best is yet to come." - Zig Ziglar

This quote resonates with me as a financial planner because I often speak with people who have a lot on their plate.

By putting a plan together, grinding away to save money, chipping down student loan debt, "traveling the difficult roads," the people I work with can one day see the fruits of their labor.

What does this quote mean to you?

Here are this week's top 3 financial planning strategies to consider when you are in your 40s.

✔️ Boost your savings rate. Try to max out your 401(k) and save in other ways.

✔️ Develop a plan to put your child through college or other program. College is extremely expensive and it also isn't for everyone.

✔️ Have a conversation with your parents about their planning. 52% of people aged 65 or older will need long term care in their lifetime. That basically guarantees your mom or your dad will need to have a plan in place.

If any of these areas are something you want to plan for, shoot me a note today.

Stay tuned for next week about planning in your 50s.

Who likes paying taxes? 🙅‍♂️

Taxes play a big role when it comes to retirement planning. Many people pay income taxes on their retirement account withdrawals, possibly on their social security benefits, and much more.

One way to help possibly reduce (or even completely eliminate) taxes in retirement is to contribute to a Roth IRA. Want to learn more? Check out the article below in the comments.