Author: SynergiaFinancialGroup

As the end of the year approaches, taking time for an end-of-the-year financial check-up is critical. It involves a comprehensive review of your financial position. Assessment can help you understand how you spent your money throughout the year and guide you to make better financial decisions in the forthcoming year. Prepare by using this checklist as you work toward your financial objectives.

1. Review your budget. By revisiting your budget, you can compare and contrast your actual spending with the past budget entries for the year. Reviewing is a great way to help you understand where your money went, gauge if your spending habits have been healthy or not, and decide the areas where you need to cut back. Your budget can also provide insight into investing more in the coming year.

2. Scrutinize your debt. Don’t simply pay the minimum due on your debt; try to understand it. How much interest are you paying? Can you consolidate and refinance at a lower rate? Do you have a plan for paying off your debts? As part of your year-end check-up, thoroughly examining your debt may provide a strategic approach to managing it effectively.

3. Assess your investment strategies. Another key area to review is your investment strategies; analyze how much you’re contributing and the performance of your investment portfolios. Also, consider if you need to rebalance your portfolio to help ensure you’re on track toward your short-term and long-term financial goals.

4. Update life insurance policy information. Life changes and your life insurance policy information should change along with it. Ensure that these vital documents reflect your current circumstances. If you have a significant life event, like marriage, divorce, or a newborn, it would be crucial to update your documents accordingly.

5. Review employer-sponsored retirement savings accounts. As part of your year-end financial checklist, review your work retirement savings to help ensure you’re on track toward your goals. Now may be the time to increase your monthly contributions. Include employer-sponsored information in your financial plan to help enhance your retirement savings.

6. Examine your tax situation. Understanding your year-to-date tax situation can prepare you for tax season and possibly mitigate your tax bite. Strategize with your financial and tax professional about optimizing deductions or tax credits you may qualify for. Consider last-minute year-end tax moves that could help lower your taxable income—for example, contributing more to your employer-sponsored retirement savings plan.

7. Evaluate financial goals. Last but not least, revisit your financial goals. Evaluate your progress towards your goals this year and set new ones for next year if necessary. Financial planning is always a great exercise whether you’re an independent professional, a small business owner, or a person eyeing a financially confident future.

As you wrap up the year, your financial professional can help you execute this end-of-year financial Checklist to help prepare you to take on whatever the next year brings.

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One challenge Sustainable Finance aims to solve is the advancement of women’s health. Sustainable finance and women’s health have profound implications in fostering global health equity, empowering women, and advancing socio-economic development. It’s important to understand the connection between sustainable finance and women’s health;

Sustainable finance encompasses various initiatives, including improving access to quality healthcare services, research and development (R&D) for women-specific health issues, training health professionals, and strengthening gender-responsive health systems. Through strategically investing in women’s health, sustainable finance is making progress in promoting gender equality by enhancing the health and well-being of women across the globe.

In terms of access to quality healthcare services, sustainable finance also supports the following:

• Enhancement and expansion of healthcare infrastructure
• Biotech and pharmaceutical research
• Ensuring services cater to a woman’s knowledge or experience needs.
• Paying for health facility upgrades
• Purchasing medical equipment
• Establishing mobile clinics in hard-to-reach areas.
• Providing emergency healthcare services
• Advancing maternal healthcare.
• Breast and cervical cancer research
• Reproductive health research

Sustainable finance also plays a vital role in fostering health literacy among women. Through funding public health education programs, health awareness camps, and digital platforms, women now have information to help them make more informed health decisions. Through education, women become aware of preventative measures, early detection, and treatment options available for various health conditions. Education has also improved women’s understanding of the importance of seeking timely care.

Sustainable finance’s role in advancing women’s health is a powerful tool that may accelerate the journey toward an equitable, inclusive, and healthy global society.

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Helping your child save for retirement starts with financial education and discussing the importance of saving for their future. Besides financial education, there are strategies to help them get a head start on their retirement savings. Here are three ways to start saving for your child’s retirement now:

#1 Life Insurance- Whole life insurance, also called cash-value life insurance, doesn’t expire, meaning your child can’t outlive it. Whole life insurance features a death benefit and a cash value, which accrues interest at a fixed rate. If one continues to pay the premiums, your child can tap into the cash value by taking a policy loan or a cash withdrawal later to help fund retirement. Here are some reasons why investing in a life insurance policy for your child may be an appropriate strategy:

• Tax-free loan- The policy owner (your child, once an adult) can take tax-free loans from the cash value of the life insurance policy for various reasons, such as retirement income or to pay for college. The loan doesn’t need to be paid back but will reduce beneficiaries’ death benefits. Using a cash-value loan may result in interest charges and a reduced death benefit and may collapse the policy if not appropriately managed. Consult your insurance professional so you fully understand life insurance policy loans before initiating a policy loan.
• Tax-free earnings- The tax-deferred growth inside a whole life insurance policy may not count as income for Social Security or Medicare taxes when your child retires, based on today’s tax laws, but there is no guarantee on future taxes.

Purchase life insurance when your child is young and healthy, a time in their life when they are more likely to receive coverage. Later in life, life insurance can reduce the financial hardship for their loved ones when they pass away. Life insurance can also be a vehicle for your child to leave an inheritance, fund funeral expenses, or protect their business as an adult.

#2 Roth IRA- Starting a Roth IRA for your child is another way to help them accumulate money for their retirement. However, there are specific requirements to determine if you can use a Roth IRA as a retirement savings strategy for your child:

• The child must have income from a job as a W-2 employee. The contribution amount can’t exceed the Federal IRS guidelines or the amount they have made in a calendar year. 
• The Roth IRA account must be in the child’s and custodial parent’s names. The rules on who is considered a custodian can vary from state to state or financial firm to financial firm. Often, deciding if a Roth IRA is appropriate for the child’s situation may be determined by the rules of the Roth IRA’s account administrator (where the account’s custody is held).

Consult your financial professional for account requirements, restrictions, and information needed to open a Roth IRA account.

#3 A 529 College Savings plan-529 plans are tax-advantaged savings vehicles designed to accumulate contributions and help pay for the beneficiary’s qualifying education expenses. Sometimes, 529 plans have unused funds after the beneficiary graduates or decides to discontinue their education.

You can move 529 plan monies to a Roth IRA that your child can use for retirement. When moving 529 plan monies to a Roth IRA, IRS contribution limits apply, and the beneficiary (your child) must have earned income up to the amount converted. In 2024, if the 529 plan has been open for at least 15 years, up to $35,000 of those funds (for the beneficiary of the 529 accounts only) can be contributed to a Roth IRA, regardless of the beneficiary’s earning limit.

Here are other IRS rules that apply to transferring 529 plan monies to a Roth IRA:

• The transfer cannot include any contributions or earnings that were made in the preceding five years.
• Beneficiaries cannot roll over any money from their 529 plan into a Roth IRA without incurring penalties and taxes unless the account has existed for at least 15 years.

Before initiating a 529 plan to Roth IRA conversion, visit your financial and tax professionals to determine if this strategy suits your situation and to help ensure you understand the IRS rules.

Helping your child save for their future retirement is a comprehensive strategy that may help them pursue their retirement goals. Your financial professional can answer questions about the strategies discussed in this article and if they are appropriate for your and your child’s situation. Contact them today!

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Having enough retirement income is a top concern for many Americans nearing or in retirement. Even though they may have saved consistently throughout the working years, they may be concerned that their retirement plans will succeed. A successful retirement plan provides the ability to maintain your lifestyle for the duration of your life.

Having enough retirement income for what you need and want is essential and must be planned for, even in the best economic conditions. A way to provide income safety is by using annuities as an asset class in your retirement portfolio.

Annuities Provide Safety and Income- Annuities help retirees address a specific retirement planning risk- Longevity Risk. Longevity Risk is the risk that a retiree outlives their financial assets. Here are other things to know about annuities:

• Annuities are designed to provide income for your life.
• Due to their safety and growth potential, many portfolios use annuities in the financial services industry as an asset class.
• Annuities are contractual agreements with an insurance company that provide an investor with a guaranteed income stream during retirement in exchange for a premium.
• Insurance companies provide products such annuities to help individuals manage their long lives.

Annuities offer tax-deferred growth of earnings, protection of principal, and a guaranteed lifetime income. The three types of annuities widely used in financial planning are fixed annuities, fixed-indexed annuities, and variable annuities. Like any financial product, there are pros and cons to each type, and due diligence in investigating any annuity should take precedence before purchasing one for your retirement portfolio:

Variable Annuities- Tax-deferred growth opportunities, but with the risk of principal loss.

• Potentially Greater Growth.
• Designed to provide a guaranteed income for your life.
• No Principal Protection.
• Market-type returns are based on the asset class in the portfolio.
• Invests in a selection of investment options.
• Tax-deferral benefit for non-qualified investments, not applicable to IRAs, 401(k), TSP, etc.
• Limited Investment Choices in Comparison to the Universe of Mutual Fund Choices.
• Fees Can Range from 3% to 5%., or more.

Variable annuities can be expensive and come with many fees, which decreases the accumulation value. Variable annuities are market sensitive and may incur a loss to the investor. Many times, the investor needs to understand this complex product. Working with a financial professional to know if a variable annuity is appropriate for your situation is essential.

Disclosure: Variable annuities are sold by prospectus only. Investors should carefully consider objectives, risks, charges and expenses carefully before investing. The contract prospectus and the underlying fund prospectus contain this and other important information. Investors should read the prospectus carefully before investing. For a copy of the prospectus, contact your financial professional.

Fixed Annuities- Provides growth opportunities with income for life and offers principal protection.

• Principal Protection- original principal plus all credited interest is guaranteed.
• Growth- a fixed rate for a declared period.
• Tax-Deferral- a benefit for non-qualified assets, not applicable to IRA, 401(k), TSP, etc.
• No Fees on Base Product
• Designed to provide a lifetime Income

Before purchasing a fixed annuity, investors should work with their financial professionals and consider the issuing company’s rate, terms, ratings, and service levels.

Fixed-Indexed Annuities- Provides growth opportunities with income for life and offers principal protection.

• Principal Protection- original principal plus all credited interest is guaranteed.
• Growth- credited interest tied to index performance. Some products offer uncapped strategies—an inflation hedge on the portfolio.
• Tax-Deferral- a benefit for non-qualified assets, not applicable to IRA, 401(k), TSP, etc.
• Provides guaranteed income for life.
• Inflation hedge- growth is designed to increase when prices are appreciating.

Investors should consider the fixed annuity index, participation rates, and service levels of the issuing company before purchasing a fixed-indexed annuity.

Both Fixed and Fixed-Indexed Annuities provide an alternative for retirees seeking income other than from traditional staples such as CDs, money market accounts, or bonds. For those seeking income and safety, annuities may be an asset class to consider, if appropriate for their situation.

Disclosure: Guarantees are based on the claims paying ability of the issuing insurance company. They may not be appropriate for all. Please contact your financial professional or insurance producer for complete details

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Life insurance is a great addition to your portfolio that help can protect your loved ones and beneficiaries if you unexpectedly pass away. While no amount of money can ease the grief of losing someone, life insurance may help reduce the financial burden they may face. It’s important to know how life insurance works and what to consider when purchasing life insurance so you can make an informed decision before you buy.     

What Does Life Insurance Cover?

Life insurance can be used to help your beneficiaries pay for your funeral costs and a variety of other expenses, including:

• Everyday bills 
• Wage loss
• Child care
• Debts
• College tuition
• Business debts

Life insurance companies will pay beneficiaries the net policy face amount when death is by suicide if the 2-year contestability period has passed (2 years and one day from the policy start date).

What Are Some Types of Life Insurance?

There are numerous types of life insurance products on the market. A few of the most common types include:

• Term Life Insurance: Term life insurance guarantees financial protection for your family over a specific term. 
• Whole Life Insurance: Whole life insurance provides insurance for your entire life, as long as you pay the premiums on time. The cash value increases over time, providing you with cash accumulation you can use in retirement or increasing your beneficiaries’ benefit.
• Indexed Universal Life Insurance: Indexed universal life insurance includes a death benefit and a cash value component that increases based on the index you choose, helping to increase the policy’s value over time. 

The type of policy you select should depend on how much you want to pay and how long you’d like your coverage to last. Remember that your age, gender, medical history, nicotine use, and dangerous hobbies may all play a role in how much you pay for life insurance. Generally speaking, the healthier and younger you are, the less expensive your policy will be. 

How Do Life Insurance Ratings Work?

Life insurance company ratings reflect the opinions of independent agencies like A.M. Best, Fitch, and Moody’s. Each agency has its rating scale and standards. A.M. Best, for example, looks at the balance sheet, performance, and business profile of the companies it rates. Its six ratings include:

• A++, A+ (Superior)
• A, A- (Excellent)
• B++, B+ (Good)

Before you move forward with purchasing a life insurance company’s policy, it’s important to consider their rating from at least two agencies.

I can work with you to determine an appropriate death benefit amount based on your situation and help evaluate companies that have suitable performance ratings. The bottom line is to make sure you’re beneficiaries can pay expenses and have a reduced financial burden when you pass.

Disclosure: Guarantees are based on the claims paying ability of the issuing insurance company.

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If you love to travel, summer is a great time to do so and have new experiences near home or far away. As you plan, remember to budget for travel expenses and look for ways to save during the peak summer travel season. Here are some tips to help you save on summer travel:

#1- Create a travel bucket list. You may want to travel to a few different places this summer. Create your travel itinerary with the understanding that plans may change and be flexible. Remember to leave time in your itinerary to rest, relax, and disconnect- and not spend money. Enjoy the sunrise, sunset, parks, and places that are free too!

#2- Do your research. Once you decide where you want to travel, create an estimated budget. Conduct your research online or visit a travel professional to understand your trip’s cost. Remember to include daily expenses such as meals, rides to and from the airport, and tickets to events or venues you want to attend.

#3- Decide how to pay for your travel. Regardless of how you plan to pay for travel, it takes money. If you can set aside a portion of the cost into a savings account each payday, you can enjoy a paid-for vacation versus using credit. If you must use credit, plan to pay off your vacation quickly to avoid interest fees.

#4- Maximize your travel dollars. Watch for online deals to score the best deals and save. One travel savings strategy is to combine offers such as airfare and hotels. You can also combine trips by visiting multiple locations or family and friends during the same period to reduce spending for numerous trips. Get creative and make the most out of your travel budget.

#5- Plan for the unexpected. Create a cash buffer for your travel for unforeseen expenses. For example, you may budget for an all-inclusive vacation but decide to enjoy some excursions at the last minute. Planning for unexpected costs can be beneficial in situations like this.

#6- Look for ways to reduce your costs. When you travel, you can skip paying for hotels and restaurants. If you’re traveling to a destination with family and friends along the way, consider asking them to host you for a night. Also, make meals and buy groceries to stock a cooler when you can versus eating out every meal.

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Spring is a great time to review your insurance coverage. Insurance is a means of protecting your assets against premature liquidation. When a loss occurs, the assets you’ve worked hard to attain face liquidation if your insurance coverage isn’t enough. It may be possible to strengthen your current insurance coverage or purchase new coverage. The insurance review and planning process is unique to each individual but has three parts for determining how much insurance coverage you need:

• Risk Identification
• Risk Measurement
• Risk Administration

To help mitigate your risk of loss, financial professionals assess your life insurance, disability income insurance, and long-term care insurance policies to help ensure you’re appropriately covered for your situation.

Life insurance- The idea of life insurance can feel daunting, but the meaning is simple: life insurance helps protect your family from financial hardship if you pass away unexpectedly. Life insurance can help your family provide for lost income, cover bills and debts left behind, funeral expenses, and potentially help pay for living expenses for your family for some time. If you have a spouse or dependents, life insurance is a great way to help protect the people you love. Here are some ways to evaluate your need for life insurance:

• If you have a spouse
• Whether you have kids
• If you have debt
• If you do not have enough money to cover your debts and expenses related to death—your funeral, estate, attorney fees, and other costs.

You might need life insurance if you answered “yes” to any of the above scenarios. If you already have life insurance, it’s essential to make sure you have enough death benefits. Also, if you insure through work, your policy may not be portable or expire at a specific age. Having the appropriate amount of coverage for your situation is essential.

Disability income insurance- As you age, the likelihood of an injury resulting in permanent disability increases. Often, people think that Social Security Disability Insurance (SSDI) would replace their income if they become disabled. However, SSDI will only pay part of your lost wages if you become permanently disabled, which may not be enough to cover your monthly expenses. Purchasing a disability insurance policy can help protect against lost wages.

SSDI is a social insurance program under which workers earn benefits coverage by working and paying Social Security taxes. The program provides benefits to disabled workers and their dependents.

Long-term care insurance (LTCI)- LTCI pays for the cost of long-term care needs that Medicare does not cover. It can help with expenses like nursing home care, assisted living, adult daycare, in-home care, home modifications, and care coordination.

As you age, (LTCI) is a vital part of financial planning. An LTCI policy can give you the peace of mind of knowing that if you face an illness or disability as you age, you can afford the care you need. Also, your children and other family members won’t have to deal with the significant expenses that may come with your long-term care.

Here are other insurances you may want to review, depending on your situation:

• Home owner’s insurance
• Renter’s insurance
• Auto insurance
• Health insurance, including dental and vision
• Electronics insurance
• Identity theft insurance

Your financial professional can help you make sense of the complicated world of insurance and help you assess all of your coverages. It’s essential to make sure you have enough coverage, so reach out to your financial professional to schedule your insurance review today.

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Now is a great time to review your life insurance policies and determine if you have enough coverage. When someone we know passes, often, we are reminded how precious life is and how financial stability can rapidly change. In some instances, they did not have enough life insurance coverage.

In addition to reviewing assets and recommending strategies to build wealth, financial planning also considers all aspects of risk, including death. Depending on your situation, your financial professional may recommend life insurance during financial planning. Here are common reasons to include life insurance in financial planning:

Provide for loved ones- Families with young children need to plan for the loss of income if a parent dies and the loss of a working spouse. Even if no children live at home, there may be an economic loss if someone is dependent on their partner’s income. A premature death can result in loss of assets and hinder any financial plan.

Estate Planning- If you have a large estate and want to ensure that your beneficiaries don’t have to liquidate assets to pay estate taxes, life insurance can be used for this purpose. Using life insurance to pay estate taxes involves working with your attorney and tax professional to determine if this is appropriate for your life insurance policy proceeds.

Business Succession Planning- If you are a business owner and plan to pass on the business to a family member or other key employees, life insurance may be part of the new owners’ purchase plan. Life insurance, a part of the succession plan, involves a tax professional and an attorney to ensure the outcome benefits all parties involved. Using life insurance as part of the business succession often becomes part of the business owner’s retirement plan.

College funding- If you’re a parent or grandparent, life insurance can provide part or all of the education funding for the insured (child) without tax consequences (assuming interest is applied to cash value). Contact your financial professional to discuss this in detail since a policy loan is required.

If the child doesn’t use it for education funding, you have given them life insurance for themselves or their beneficiaries. Check with the carrier to determine the requirements of the life insurance policy being given to the child since parents or grandparents are unable to own the policy once the child has become an adult.

Consult a financial professional- It is not only young families that need protection but also individuals with debt, businesses relying on crucial workers, and investors who plan to protect their assets.

Review your life insurance policies at least bi-annually at your financial planning meeting to check beneficiary information for name changes, etc. Be sure to tell your family about your life insurance policies and where to locate them in case of your death. 

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There is no one size fits all age; your unique circumstances and goals will dictate the appropriate time for you to take Social Security retirement benefits. Some SS strategies may boost your monthly benefit amount, helping you get the most from your SS benefits. Here are some strategies to consider:

#1- Work 35+ years. SS benefits are calculated using your 35 highest-earnings years, making it essential to have at least 35 years of full-time work. Working beyond your full retirement age can help boost your earnings qualification number and monthly benefit amount.

#2-Suspend SS benefits. If you took SS benefits before your full retirement age and age 70, you may suspend your payments and earn delayed credits, helping boost your monthly benefit by 8% for each year of suspended benefits to age 70.

#3- Delay SS benefits. You can increase your monthly benefit if you delay claiming Social Security past your full retirement age. You will accrue delayed retirement credits that will boost your monthly benefit by 8% for each year of delay between your full retirement age and age 70.

#4- Use the SS spousal benefit strategy. Married couples can use this strategy where one spouse claims benefits up to 50% of their spouse’s benefit if the benefit is higher than their own. Ex-spouses can also use this strategy if married for at least ten years.

#5- The spousal split. Using this strategy, the lower-earning spouse takes SS retirement benefits at an

earlier age, such as 67, and the higher-earning spouse delays their benefits until age 70. This scenario allows access to some early SS retirement benefits and a higher benefit amount.

#6- SS survivor benefits. When one spouse passes away, the surviving spouse can claim the deceased’s benefits if higher. Delaying survivor benefits until the deceased spouse’s full retirement age or older helps increase the surviving spouse’s monthly benefit.

#7- SS Survivor benefits for children. Children of a deceased worker can qualify for benefits until age 18 or 19 while a full-time high school student and for a child diagnosed with a disability up to age 22. A widow or widower caring for a child under 18 may also qualify for benefits.

Determining how claiming benefits at specific ages and using SS strategies will impact your situation over time is essential. A financial professional can help calculate your benefit amount or go to www.ssa.gov to register and calculate your benefit amount at specific ages. Once you have your information, you can determine what age is appropriate for you.

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Financial literacy activities may help prepare children for financial confidence in adulthood and help parents and children feel more comfortable talking about money. Teaching children about money and financial literacy using games can make learning fun. Here, we outline ten financial literacy games for kids of various ages:

Board Games

1. Monopoly- Monopoly was developed in 1935 and modeled after an early 1900s game by Elizabeth Magie to demonstrate that an economy rewards individuals that make comprehensive financial decisions. The game is available in 37 languages and 103 countries worldwide—ages 8 through adulthood.

2. The Game of Life- “Life” was developed in 1860 by Milton Bradley as a parlor game to teach financial concepts as players progress through life, college, and retirement—ages 8 through adulthood.

3. Money Bags- Players collect, count, and exchange money as they learn money management skills throughout the game and try to be the first to cross the finish line—ages 7+

4. Act Your Wage- The game’s goal is to live within your means, pay off debt and be the first player to scream, “I’m debt free!” —ages 10+.

5. Payday- Players accumulate bills and expenses to pay during the game and collect their monthly wages on “payday” at the end of the month. The winner is the player with the most money at the end of the last month of play—ages 8+

Digital Games (Available on Android, iOS, and computer)

6. Cash Puzzler- Players use pictures of $1, $5, $10, $20, or $100 cut into puzzle pieces to learn facts about the president featured on the bill. Peter Pigs Money Counter teaches how to identify coins. Players use virtual money to save or spend on accessories for Peter Pig in the virtual store—for ages 3-8.

7. Financial Football- Endorsed by the NFL, the game uses football to make multiple choices on topics such as saving, budgeting, credit, debt, and identity theft while teaching them the appropriate answer. During play, appropriate responses advance the player down the field toward the goal line. The game has different levels of play: Rookie, ages 11 to 14. All-Pro, ages 14 to 18; and Hall of Fame—ages 18 and up.

8. Con ‘Em If You Can– Created by FINRA, the game is about financial scams where players take on the role of a scammer as they learn how to spot a scam. The game teaches about extravagant promises, faking expert credentials, and creating a false sense of scarcity—ages middle school to high school.

9. Jumpstart’s Reality Check- The quiz asks teens what lifestyle they imagine for themselves once they graduate high school or college. Questions include where they plan to live, their transportation, lifestyle choices, and how much debt they expect to have. The game then analyzes their answers and shows the monthly income they need to support their choices, helping provide realistic career decisions—ages teens through college.

10. FamZoo- This app is a virtual family bank where parents are the bankers and children are the customers. Parents set rules for rewards for chores and other jobs, regular automated payments, saving, spending, deductions for ‘missed work,’ charitable giving, interest earned, matching contributions, and more—ages 8+

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