Stravolo Wealth Management

From William Granger - Whether you have a sister by blood or a sister by choice, today is a day to celebrate those special bonds.

On National Sisters Day, I want to share a photo of my sister, Sabrina Sharpe, and her children (from left to right), Maryann, Granger, and Eleanor. Granger Sharpe was born last month on July 2nd and I could not be happier to have a little nephew in the family! I am so proud of Sabrina and so thankful to have her as my sister. Thank you for blessing me with the best nieces and nephew in the world!

Strong bonds with our sisters provide a foundation for personal growth and resilience. We can confide in them without judgment, celebrate successes together, and learn from each other's triumphs and challenges.

Whether you have biological sisters, chosen sisters, or a strong network of supportive women, take a moment today to express gratitude for their being a part of your life.

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?

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Here is this week's Money Tip! To view this tip and others like it, check out our website here: https://www.stravolowealth.com/

Since August is Golf Month, I have been thinking about how peaceful and beautiful golf courses are and how much I enjoy the quality time they allow me to spend with friends and family.

Golf Month also made me think about what it takes to consistently score well—there are definitely some parallels between the sport and personal finance.

⛳ Like preparing your shots on the course, creating financial strategies requires a defined approach and a long-term vision for your goals.

⛳ Avoiding hazards on a golf course is similar to managing financial risks and navigating market fluctuations.

⛳ Both golf and finance require patience as you pursue your goals.

⛳ The game of golf, like the financial landscape, is constantly evolving. Continuous learning and adaptation are the keys to success in both.

Metaphors aside, what I like most about golf is the opportunity to spend quality time with people I enjoy—whether they are young or old.

Help me add to my bucket list! What golf courses should I visit?

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!

Dreaming of one of those fancy, luxurious recreational vehicles (RVs)? 🚐

Be ready for some potential sticker shock. RVs, like the Foretravel Motorcoach Presidential Series Realm FS605 or the Newmar King Aire, can cost over $1 million.

And the real cost of owning an RV goes beyond the initial price tag.

Don’t forget insurance, maintenance, fuel, towing equipment, campground fees, and other amenities, like Wi-Fi hotspots or dash cameras.

And how often you use it might factor into the cost as well. Using a $60,000 RV for 10 days a year means you're effectively paying $6,000 per day. If you’re not sure you’re going to be a lifelong RV’er, you might consider the pros and cons of renting.

Either way–buy or rent–if you're dreaming of hitting the road in style, make sure to consider all the costs. The open road might be free, but the ride definitely isn't!

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.

July is Family Reunion Month! It’s time for laughter, memories, and family bonding!

If you’re looking for ideas, here are a few that could be fun for all ages:

1. Family Olympics: Organize friendly competitions such as sack races, egg-and-spoon races, or water balloon tosses.🏅
2. Talent Show. 🎤
3. Family Trivia: Test everyone's knowledge of family history, traditions, and fun facts.❓
4. Scavenger Hunt: Set up a scavenger hunt with clues and prizes that celebrate your family's story.
5. Cooking Contest: Host a cooking competition with judges from different generations. 👩‍🍳
6. Craft Corner: Set up a craft station with supplies for all ages, from coloring pages for kids to family-themed DIY projects for adults. 🎨
7. Family Tree Activity: Create a large family tree display and encourage family members to add photos, stories, and memories. 🌳
8. Outdoor Movie Night: Set up a projector and screen for an outdoor movie night. 🍿
9. Group Dance Lessons: Bring in a dance instructor to teach a family-friendly dance. 💃
10. Family History Interviews: Pair up younger and older family members for interviews to share stories and experiences across generations.

What are your favorite family reunion activities? Share your ideas in the comments below! 👇

The stock market rallied in Q2 around AI and hopes that the Fed will manage interest rates with inflation trending lower.

Quarterly Market Insights | Q2 2024 Following a rocky start, stocks finished the second quarter higher as investors remained optimistic the Fed will manage interest rates with inflation trending lower.

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! 🎇

Stravolo Wealth Management Stravolo Wealth Management was founded by CPA and financial advisor, Steve Stravolo.

🗣 First, the good news: according to the latest Retirement Confidence Survey, most pre-retirees (68%) and retirees (74%) are optimistic about financing a comfortable retirement!

🚧 Inflation remains a top concern, with 83% of surveyed pre-retirees worried that rising costs will make it harder to save as much as they'd like. For many, there’s still a gap between the nest egg they want ($1.5M+) and what they have saved.

🤔 So what does this mean? Inflation may weigh on savings efforts, but most surveyed pre-retirees are feeling good about their retirement choices and their future!

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. 💪