Financial Planning

The Value of Having a Broad Knowledge of Financial Topics

June 3, 2021 by Hans Blake, CFA, CPA

Reading Time: 2 minutes On today’s Intelligent Money Minute, we interview Morningstar’s director of personal finance, Christine Benz on the value of having a broad knowledge of financial topics. Recently, Christine Benz was named in Barron’s Top 100 Influential Women for her dedication and impact in the financial industry. During this episode, Christine describes her journey at Morning Star and what she’s gleaned along the way. She started as a copy editor when her career started at Morning Star. While working as a copy editor, Christine took advantage of the educational resources and realized an aptitude for finance. Christine became a financial analyst, but she still had a desire to work on a broader financial scope. She took the CFP exam and transitioned to personal finance. The world of finance is vast, and Christine stresses the value of having a broad knowledge of financial topics. As Christine has written many articles and books on a broad financial set of topics, at Intelligent Investing, we too have a library of information on our website. Visit our library to watch videos, read blogs, and listen to podcasts on a variety of topics. On our blog page, you can even sort by topic, or type in the search bar what you are looking for. We love educating the public and our clients, and hope you find our resources useful. Schedule a short discovery call or meeting We’ll be interviewing Christine on several podcasts regarding retirement strategies, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.

Christine Benz Bio

Christine Benz is Morningstar’s director of personal finance and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances and the Morningstar Guide to Mutual Funds: 5-Star Strategies for Success. She holds a bachelor’s degree in political science and Russian/East European studies from the University of Illinois. Christine lives in the Chicago suburbs with her husband, Greg. She is an avid cook, a political junkie, and a long-suffering Chicago Cubs fan. Follow Christine on Twitter.

Two Key Elements of Retirement Success and Happiness

May 27, 2021 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes On this episode of Intelligent Money Minute, we interview Larry Swedroe on the two key elements of retirement success. There’s more than just numbers when creating a financial plan. During this episode, Larry breaks down key elements that are important to consider in a retirement plan. He stressed the importance of having a life in retirement. Many gain their sense of worth and satisfaction from their everyday work. Retirement can is a drastic shift. There are a lot of unexpected emotions and challenges that come with this change. According to Larry, you need two key elements for retirement success. First, you need depth and breadth in social relationships. Second, you need a sense of worth and accomplishment. At Intelligent Investing, we want to minimize your financial stress to maximize your life. We believe that every person is called to a specific mission in life, and we have a limited amount of time to accomplish this mission. Our goal is to minimize financial stress to maximize your life. In doing so, you’ll be better positioned to accomplish your goals. We’d love to take the first step in a professional relationship with you by having a virtual meeting or a complimentary coffee. Visit investedwithyou.com and click on the “Get Started” button to learn more. Schedule a short discovery call or meeting We’ll be interviewing Larry on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts. Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” He has since authored seven more books.

Larry Swedroe Bio

Since joining the Buckingham Strategic Wealth in 1996, Chief Research Officer Larry Swedroe has spent his time and energy educating investors on the benefits of evidence-based investing. In his role as chief research officer and as a member of the firm’s Investment Policy Committee and Board of Directors, Larry regularly reviews the findings published in dozens of peer-reviewed financial journals, evaluates the outcomes and uses the result to inform the firm’s formal investment strategy recommendations. Larry’s dedication to helping others has made him a sought-after national speaker. He has made appearances on national television shows airing on NBC, CNBC, CNN and Bloomberg Personal Finance. Larry is a prolific writer, contributing regularly to multiple outlets, including Advisor Perspectives and ETF.com. Before joining Buckingham, Larry was vice chairman of Prudential Home Mortgage and senior vice president at Citicorp. Larry holds an MBA in finance and investment from NYU and a bachelor’s degree in finance from Baruch College.

Faith in the Midst of Transition: Losing a Spouse to Alzheimer’s

May 20, 2021 by Hans Blake, CFA, CPA

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During this episode, Shelly opens up about the challenges of losing her husband to Alzheimer’s. Retirement looks a lot different than what Shelly and Ron had imagined. Instead of enjoying time off work and worldwide traveling, Shelly has cared for Ron whose battled dementia for many years. As we talked, Shelly stressed how important it was for her to continue believing in God’s sovereign plan for her life. Often, she reminded herself that she’s on assignment and that taking care of Ron is part of that mission.

According to the Alzheimer’s Association, it is estimated that 10 million baby boomers will develop Alzheimer’s. Of those who reach the age of 85, nearly one in two will get it. One of our most popular blogs on our website, is “10 Tips for Caring for a Spouse Who Has Become a Child” You can find this blog, by heading to “Blogs” and click on the “Healthcare” category at the top.

As Shelly mentioned, facing the trial of when a spouse becomes a child is not something you want to handle all alone. If you are a husband or wife who doesn’t have a financial advisor or planner, I can’t urge you enough to find one that you can entrust to become involved in your finances. We’d love to grab a cup of coffee or have a quick phone call if you find yourself in this situation. We’d be happy to listen to your needs, and whether we may be a good fit to be your financial stewardship partner.

If you haven’t subscribed to our podcasts, you can go to our podcast page and choose whichever method you want to download them. While you are there, you can go to our blog page and subscribe so you can get our latest Intelligent Insights directly in your inbox.

Shelly Hamilton Bio

Shelly Hamilton, the daughter of Frank Garlock, married Ron Hamilton aka “Patch the Pirate” in 1975. They have managed Majesty Music and written sacred music for children and adults since they joined the ministry in 1978. Shelly currently ministers at Majesty Music as pianist, composer, arranger, and recording producer. In 2013, their son killed himself after years of struggle with mental health issues. The family’s public struggle and acknowledgement of mental health issues has reached people around the world. Most recently her family faces a new challenge: Ron Hamilton’s early onset of dementia. Her insight and music will encourage anyone facing the challenges of life.

In January 2018 Majesty Music announced their third generation of leadership. After years of waiting for God’s timing, Ron and Shelly transitioned the ministry over to their son-in-law Representative Adam Morgan and his wife, Ron and Shelly’s daughter, Megan.

Getting to Know Morningstar’s Christine Benz

May 13, 2021 by Trevor Baker

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Reading Time: 2 minutes On today’s Intelligent Money Minute, we interview Morningstar’s director of personal finance, Christine Benz. Recently, Christine Benz was named in Barron’s Top 100 Influential Women for her dedication and impact in the financial industry. During this episode, we take a moment to learn more about who Christine is and what she loves to do in her spare time. Often, we can forget that these thought leaders and innovators are people too. Amidst all the prestigious accolades, Christine Benz is a renowned author, avid traveler (pre-covid), and risotto master. We hope you enjoy getting to know Christine Benz more on this more casual episode of Intelligent Money Minute. I don’t know about you, but after this episode I was hungry for some risotto. We like to get to know our guests and hope you do as well. Christine has a wealth of financial knowledge and we’ll be sharing more episodes with her in the near future. We also like to get to know our clients on a personal level, and if you are interested in becoming the next intelligent investor, please visit our website, investedwithyou.com and click on “Get Started.” Schedule a short discovery call or meeting We’ll be interviewing Christine on several podcasts regarding retirement strategies, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.

Christine Benz Bio

The Value of a Written Financial Plan

May 6, 2021 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes On today’s Intelligent Money Minute, we interview Larry Swedroe on the value of having a written financial plan. A written financial plan helps one avoid glaring holes that may not be apparent before writing it down. Also, studies show that those with a written financial plan tend to stick it far more than those who don’t. During this episode, Larry gives multiple examples of how some avoided financial disaster with a written financial plan and some who experienced financial disaster due to not having one. Many people plan more for their summer vacations and weddings than then do their retirement. Studies have shown that people are more committed to a written financial plan. At Intelligent Investing, we guide our retirees into and through retirement, and one of the ways we do that is through creating a comprehensive written financial plan. We review your retirement concerns and risks, and we dive deep into your spending needs, wants, and wishes. Typically, we review the financial plan annually with you and update it as needed for life events as life changes. If you are interested in having an independent professional guide you in creating a comprehensive written plan, please go to “Get Started.” Schedule a short discovery call or meeting We’ll be interviewing Larry on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts. Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” He has since authored seven more books.

Larry Swedroe Bio

President Biden’s Capital Gains Tax Planning

April 30, 2021 by Hans Blake, CFA, CPA

In Biden’s first congressional address, President Biden called for massive government spending including $2.3 trillion in infrastructure and $1.8 trillion in family and education programs. Of course, tax hikes follow significant federal spending. During this Intelligent Money Moment, we break down the facts and impact of this new proposal while offering some practical planning ideas in response.

Facts

Currently, ordinary income such as wages or business profits is taxed at a top rate of around 41% and capital gains have a top rate of around 24% when you factor in potential payroll or investment taxes.
This week, President Biden will meet with Congress to outline a plan to help pay for several social programs
Details of the plan are being worked out, but the plan could cost more than $1T with funding for child care, paid leave, universal pre-kindergarten education and tuition-free community college.

Impact

The plan may alter a tax provision that lets investors avoid capital-gains taxes on appreciated assets if they hold them until they die. Mr. Biden’s plan is to have gains on appreciated assets be taxed at the date of death (regardless of whether they are actually sold).
The plan could increase the top capital gains rates on taxable investors at the top of the income scale.
Republicans argue that stock prices and investments could suffer, especially as these changes could come atop corporate tax increases President Biden has proposed to pay for infrastructure spending.
With a 50-50 Senate and closely divided House, moderate democrats may have a significant say in the tax proposals.

Planning Ideas

If you are a high-net-worth individual in the top tax bracket or approaching, the recent news may impact you the most, and likely to provide tax planning strategies to perhaps spread out some of your long-term-capital gains in years when your low-earning years before Social Security benefits kick in.
If you have a taxable account (revocable trust, or large taxable brokerage account), you may want to consider a gifting strategy depending on your current tax bracket and time horizon and other factors.
As a CPA, tax efficiency has been a bedrock of Intelligent Investing and historically has been one of the biggest levers of value creation.
If you’d like to learn more, please visit investedwithyou.com and click on the “Get Started” button to become the next Intelligent Investor.

Sticking to the Plan & Avoiding Behavioral Finance Mistakes

April 29, 2021 by Hans Blake, CFA, CPA

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On this episode of Intelligent Money Minute, we interview Matt Hougan, Chairman of Inside ETFs on sticking to the plan in the midst of fear. Despite being the founder of ETFs.com, Matt isn’t unlike other investors in regards to portfolio concerns. Matt says it himself that he worries about the same things that a lot of people worry about. During this episode, he mentions the 4o year-long bond bull market and equity evaluations as personal concerns. Despite these concerns, Matt stresses the importance of sticking to a long-term investment strategy in the midst of fear. One thing will remain, the potential that humans will misbehave. That’s why it’s critical to not be fearful or greedy in finance.

When we meet with prospective clients, one of the first steps we take is to have prospects take a state-of-the-art risk questionnaire. Our approach uses a Risk Number built upon a Nobel Prize-winning framework, and every client receives a unique risk number. The risk number is a way to understand your willingness to take on risk. We also will discuss your ability to take on risk, your need for risk, and explore what your current portfolio risk is. We’d be happy to setup a complimentary call or meeting. You can book a call or meeting by clicking “Get Started.”

Matt Hougan Bio

Matt Hougan is one of the world’s leading experts on crypto, ETFs, and financial technology. He is Global Head of Research for Bitwise Asset Management, creator of the world’s first cryptocurrency index fund. Hougan is also Chairman of Inside ETFs, the world’s largest ETF conference. He was previously CEO of ETF.com, where he helped build the world’s first ETF data and analytics system. Hougan is co-author of the CFA Institute’s Monograph on ETFs. He’s also a crypto columnist for Forbes, and a three-time member of the Barron’s ETF Roundtable. For more resources from Matt Hougan click here.

The Hardest Decision a Child Will Have to Make (Part 2)

April 21, 2021 by Hans Blake, CFA, CPA

In our previous post, we talked about how many seniors unrealistically believe they can take care of themselves for the rest of their lives. Unfortunately, this isn’t the case, and we discussed the importance of regular communication and how to deal with stubborn parents. This post is a continuation of that theme…

Make Sure All Siblings Are Unified

It is vital that all siblings and family members are on the same page. It often only takes one disgruntled child who urges the parent to stay in his home to make placement nearly impossible. Sometimes this challenging sibling isn’t even the one taking care of the parent or may live far away without first-hand knowledge of the situation.

Avoid Extraneous “Baggage”

When families get together, there can sometimes be personal “baggage” brought to the table. It is best to avoid unnecessary confrontation or sensitive family subjects, for the good of the parent. Remember, don’t be selfish. It is not about your issue or past grievance, it is about what’s best for your parent.

Power of Attorney

Important items to address include financial issues to pay for the parent’s living expenses, and who will act as the elder’s durable power of attorney for health care. One capable person should be appointed as the elder’s primary advocate. This person, whether a son (or daughter-in-law) or daughter or adult grandchild, should oversee financial decisions and act as the elder’s durable power of attorney for health care.

Dealing with the Guilt

No matter how smoothly the process goes, children often retain guilt about moving elderly parents to a long-term care facility, especially, if they are religious. Regardless of whether you promised to never put a parent in a nursing home, the decision about placement must be based on what’s best for the parent at a given time.

Remember, putting a parent in a nursing home may be the most loving act that a child can do because it may improve the quality of the parent’s life from medical and social perspectives. Nursing homes vary in quality but in general, are places where parents often thrive.

Remember, putting a parent in a nursing home may be the most loving act that a child can do because it may improve the quality of the parent's life from medical and social perspectives. Share on X

Forming a Caregiving Team

Caregiving is a family affair. It is important to gather your siblings, children, uncles and aunts together to address an ailing loved one’s needs. Have a meeting and discuss the problem, without the parent present. Remember to never go it alone.

You may also want to include a financial advisor, home care provider, and elder care attorney on your caregiving team. A financial advisor may be able to help answer financial questions related to placing mom or dad in an assisted living or skilled care home. A wealth manager may help preserve capital for your aging parent and help with determining the best way to fund the assisted living home. The home care provider may be able to “shop around” for the ideal next home for your parent. An elder care attorney can help with legal questions related to your aging parents.

We’d like to be part of your Caregiving Team

Intelligent Investing’s first core value is Compassion. We think that it is important to give generously to those in need, and your parent is now the one in need. We may be able to help you organize your parents’ “financial junk drawers.” We can also manage their remaining assets in a way that helps preserve them to pay for their next place of living. We can be your “financial quarterback” in organizing the key professional players you need input from. We often collaborate with several professionals who deal with issues that may be outside of your wheelhouse. As you face this emotional time in your life, we would be honored to serve with you and help you tackle the toughest decision you may ever face.