With that said, here are the best places to travel this year.

1. Mexico City, Mexico

Head to Mexico City for its vibrant nightlife, art, and food scenes. Check out the Xochimilco floating gardens tour for a ride through the canals and floating gardens, or take a hot air balloon ride over the pyramids at Teotihuacan.

2. Belize

Belize, on the northeastern coast of Central America, is home to many ancient Mayan sites and is one of the most biodiverse countries in the region. You’ll find tropical jungles and wildlife preserves teeming with local flora and fauna. New hotels are popping up in the region, and the country’s tourism board is building pathways for travelers to support the local indigenous communities. There’s a lot to do here, from snorkeling and diving along the second-largest coral reef system in the world to visiting charming, laid-back seaside villages like Hopkins and Dangriga.

3. Huacachina, Peru

When most people hear Peru, they think of Machu Picchu. But just outside the busy city of Ica, about 200 miles south of Lima, is a coastal desert town called Huachchina. It’s an oasis in the desert and home to the second-highest sand dune in the world. This place is great for thrill seekers interested in Jeep rides, sand boarding, and dune buggying through the desert. It’s best to get to the dune early to catch the sunrise and beat the crowds.

4. Grenada

Whether you want to paddle a kayak in a crystal-clear lagoon or indulge in delicious local chocolate, Grenada is the place to be. This three-island country in the Caribbean has five chocolate factories and is known for its local seafood and fresh, aromatic spices. Foodies should try Grenadian specialties like lambie and oildown, a stew featuring breadfruit and coconut milk. Hang out on the beach or take the ferry to Petit Martinique and Carriacou, and don’t miss the first underwater sculpture park in the world, where you can snorkel or dive among the 82 life-size sculptures.

5. Barbados

The South Coast of the Caribbean island country has seen a spike in luxurious hotel options, and you can stop by the Barbados Boardwalk for a swim with a stunning ocean view. This area has also developed a buzzing foodie scene. Whether you’re looking for something light or want to dine waterside, there are plenty of options to choose from. And don’t miss the open-air Worthing Square Food Garden, where you’ll find live music and twenty pop-up restaurants serving global cuisine.

6. Alberta, Canada

Alberta has a wide range of museums, festivals, parks, and urban areas to explore, and with the Badlands and the Canadian Rockies, it’s an excellent place for outdoor lovers, too. Learn about the indigenous culture at Metis Crossing, take a train ride through the cities and mountains, enjoy a river boat tour and glamping experience on the secluded islands of the North Saskatchewan River, or enjoy the awe of the Dark Sky Festival every fall.

7. Barcelona, Spain

In another city with a stellar foodie scene, Barcelona, you can enjoy delicious local dishes like paella or tapas, then find a local spot or touristy bar and enjoy a drink on the roof terrace. Head to the Gothic Quarter for a walk down the historic cobblestone streets, then head to the main beach for relaxing waterfront views.

8. Uganda

Head to Uganda for a truly life-changing experience at Kyambura Gorge in Queen Elizabeth National Park, where you can take a cruise down the Kaziga Channel River and spy elephants, hippos, alligators, and buffalo or go on a trek with a family of 32 chimpanzees. For a change of scenery, heat to Wildwaters Lodge, a resort on a private island on the Nile River where you can go whitewater rafting, kayaking, fishing, ziplining, and horseback riding.

9. Jordan

If you were ever curious about traveling to the Middle East, Jordan is a popular destination. The country has been investing in repaving highways and improving access to popular tourist sites. Start in Amman, then head to the Dead Sea to float in the water at the lowest point on the planet. Hear out into the desert to Wadi Rum and camp under the stars, then head to the Petra, om of the Seven Wonders of the Natural World.

10. Victoria, Australia

Australia is open to tourists again, and Victoria is an excellent destination if you want to see what the country has to offer without the crowds. Victoria is home to Melbourne, where you’ll find stunning new resorts and hotels. Take the Hidden Secrets Tour to learn more about the insider spots you can’t miss, take a day trip to Phillip Island to catch the Penguin Parade, or spend a few days in the Yarra Valley wine country.

Takeaway

If you’re itching to get back out there, these ten destinations offer exciting adventures, breathtaking views, and life-changing meals that will help you make up for lost time. Remember to check with the State Department and CDC for any warnings and travel restrictions, then start booking your next big adventure.

Any opinions are those of Thomas Fleishel and not necessarily those of Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

The post The Best Places to Travel This Year: It’s Time to See the World Again appeared first on Fleishel Financial.

The 2019 report indicates that the average cost of replacing a roof is $7,500, but the cost recovered at the sale is $8,000. That’s a return on investment (ROI) of 107%, the highest of any other home repairs in the study. The report also indicated that 39% of realtors in the survey suggested replacing the roof to sellers, and 33% said that the new roof helped close a sale.

This report determined the projects with the greatest value with input from members of the National Association of Realtors and the National Association of the Remodeling Industry. Members of the National Association of the Remodeling Industry provided the cost estimates for the projects included in the report, and the realtors estimated how much value each of those projects adds.

An old roof can be a concern when you’re trying to sell your house, especially if the buyer is using a VA or FHA loan, requiring the roof to be in decent shape. But whether you should replace your roof depends on your unique situation. Unless the roof is really old, a realtor may not recommend replacing it. Most potential buyers may not notice the roof immediately, so replacing it may not always be in a seller’s best interest. Some real estate agents may recommend considering the roof’s condition when pricing the house and expecting it to come up during negotiations.

The report also lists other projects that offer a lot of bang for your buck. New wood flooring has an estimated ROI of 106%; hardwood floor refinishing, 100%; a new garage door, 95%; and HVAC replacement, 85%.

Any opinions are those of Thomas Fleishel and not necessarily those of Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Material prepared by an independent third party. Source: money.com

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For providers of online payment systems, the challenge is to show value beyond the ease of transitions while keeping up with technology and building trust with consumers that digital payments are quick, easy, and safe.

There are also global policy changes to consider, as many banks prioritize promoting digital payments and broadening remote access to accounts and services.

In 2022, all the available data indicated that we are heading toward becoming a cashless society. While COVID expedited this process, it may have also stopped us from asking one essential question: do we really want to be a cashless society?

A cashless society is one in which debit and credit cards, online payment services, or digital currencies are preferred, and paper money and coins are no longer accepted. While we are getting close, no country in the world can be considered cashless. In 2017, only 20 percent of transactions in Sweden were cash. China has created its own digital currency, and in 2019, Saudi Arabia set a goal for 70 percent of all transactions to be digital by 2030.

What are the benefits of a cashless society? In addition to being convenient, going cashless may reduce violent crime, theft, tax evasion, and fraud. Research indicates that less cash equals less crime, and as we saw during the pandemic, handling money can spread contagious diseases like COVID, MRSA, and salmonella.

Digital payments also eliminate many of the costs associated with handling money. It’s easier for people to budget and makes spending buying from global stores and vendors seamless.

However, there are some downsides, and most revolve around privacy concerns. Digital currency is ripe for hackers, and many problems can arise when you rely on the internet and other technology to pay for everything. Cyberattacks are likely to increase drastically, and there are many questions to be answered about what going cashless will mean for certain members of society, including the elderly, undocumented, and homeless.

But there’s no reason to panic. As we head closer to becoming a cashless society, policymakers and leaders in all sectors will work harder to determine how to grow and change to fit the new system. Society dealt with a similar shift when banks evolved from merchant-based institutions.

The wheels are already in motion, and the truth is that there is little we can do to stop what is inevitable. We should focus on the transition period to ensure we create a fair system that’s safe from threats, including hacking and natural disasters. We must be diligent that a cashless system doesn’t exclude certain people in society, so everyone is on board with the change.

Any opinions are those of Thomas Fleishel and not necessarily those of Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

The post We’re Closer to a Cashless Society than Ever Before, but Is That a Good Thing? appeared first on Fleishel Financial.

Tiger 21 is a network of ultra-high-worth investors, executives, and entrepreneurs, and its members are investing in stocks, despite overall concerns about the economy. Their largest category? Public equities, specifically real estate, which has never happened before. While some bargains are to be had, that’s not the driving force behind the shift.

Exchange-traded indexes and funds are driving member investments, and a lot of FAANG stock – that is, Facebook, Apple, Amazon, Netflix, and Google – is staying steady or dropping slightly, opening up a lot of opportunity.

But the biggest and most exciting sector is energy. The oil and gas side has a lot of potential, but interest is growing significantly in renewables, specifically how to expand wind and solar opportunities. Renewable energy is an opportunity and an increasing investment theme that is getting a lot of attention.

According to Sinnenfeldt, many of the network’s 1,100 members were holding onto enough cash to pounce on good investment opportunities when they arise and being bullish on long-term equities. Most members have recession fears but feel good about long-term investments, like real estate and private and public equity.

The stock market hit its lowest point in mid-June 2022 but has rallied in recent weeks, cooling inflation fears a bit. David Kelly, the chief global strategist of J.P. Morgan Asset Management, even said that stocks could rebound and hit an all-time high within three years, adding that investing in equities at this point is a good idea.

But some investors are still on the fence, with Bank of America reporting that not only is investor pessimism high, but the allocation of stocks to assets is at the same level as it was during the Great Recession in October 2008.

Any opinions are those of Thomas Fleishel and not necessarily those of Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

The post What Are the Ultra-Wealthy Investing In Now? appeared first on Fleishel Financial.

Here are three signs you’re ready to sell your business, even though you might not realize it yet.

1. You’re losing interest in the day-to-day operations.

Running a business is hard work, and it consumes a lot of your time. A quarter of business owners work more than 50 hours a week; a third work more than 60. Putting in this amount of time over the years is exhausting, and it can quickly lead to burnout. Post-COVID, 42 percent of business owners report feeling burned out.

When you are passionate about what you do, working 50 or 60 hours a week might not bother you. You can put in those hours year after year and not even think about it. But one day, something changes, and you realize you’re not enjoying it as much. You start to feel every hour. When you reach that point, it might be time to seriously consider selling.

2. Your business plan has reached a critical point.

Your business might have reached a point where you have a big decision to make. Sometimes, this might be a big advancement, maybe you developed some technology that can revolutionize your business, got a sudden influx of customers, or came up with a new product that reinvigorates you and your company.

On the other hand, a critical point may be a downturn in the economy or an unexpected global pandemic that makes everything feel uncertain and unstable.

Either of these situations is a good time to sell. If you’re worried about the viability of the business or you know you don’t have the resources, time, or desire to work through a downturn, it might be time to sell to the highest bidder.

If you’re not sure what comes after a period of sudden growth and you aren’t sure if you want to spend your time building the business beyond that, you should seriously consider any good offers you get. When your business is on the verge of exploding and you want to get out, there’s a small window where you might get a much better price than you’d imagined.

3. You get an offer that you know you can’t refuse.

You might be planning to stay in business for another decade or more, but if someone approaches you with an offer to buy you out and it’s more than you ever anticipated getting, you should seriously consider accepting.

Sit down and figure out if the deal you can get today can give you the financial support you need after selling. You should also consider how volatile the economy is as you might end up better off if you sell early.

If you’re willing to sell but not quite ready to retire, see if you can work out a deal that allows you to stick around as an employee for another year or two during the transition period to bridge the gap. It keeps you busy, lets you continue to earn money and potentially benefits, and helps the new owner adjust.

What’s Next?

Just because you sell your business does not mean you have to retire. If you lose your passion, take some time to figure out what you need to do to get it back. Selling your business is a good way to get some financial security while working out what you’re going to do next.

Any opinions are those of Thomas Fleishel and not necessarily those of Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

The post Should You Sell Your Business? Look for These Signs appeared first on Fleishel Financial.

Most employees with a traditional 401(k) plan through their employer make regular contributions deducted directly from their paychecks. The amount you can contribute every year is capped; for example, in 2022, the cap is $20,500, with an additional $6,500 in catch-up savings allowed for workers 50 and older.

Employers often match a certain percentage of your contribution to help you grow your savings, and the total amount of your and your employer’s contributions is also capped. In 2022, the overall annual limit for 401(k) contributions, including those from you and your employer, is $61,000.

But what if your total contributions don’t reach this yearly limit? That’s where after-tax 401(k) contributions come into play.

How After-Tax 401(k) Contributions Work

Vanguard’s How America Saves 2021 report states that only 10% of people with access to after-tax 401(k) contributions use them, and those who do tend to be high-income earners. If you’re a high earner, after-tax contributions may be beneficial because after-tax 401(k) contributions do not have income restrictions like a Roth IRA.

Let’s look at an example.

Say you earn $100,000 annually and contribute to a 401(k) through work, maxing out your annual contribution in 2021 by saving $19,500. If your employer offers a 100% match of up to 6% of your yearly salary, they contribute an additional $6,000. So, you now have $25,500 in your 401(k).

In 2021, the overall annual limit for 401(k) contributions was $58,000. If you only contributed $25,500 overall and your employer’s plan allows for after-tax 401(k) contributions, you can contribute up $32,500 more in after-tax dollars before you reach the yearly cap.

Benefits and Strategies for After-Tax Contributions

Using 401(k) after-tax contributions is especially beneficial for those in higher tax brackets. You can withdraw any after-tax contributions without paying as many penalties. That said, if you withdraw from these contributions when you’re younger than 59 ½, you may have to pay a 10% penalty.

Taxes are another thing to consider. Any earnings you make from after-tax contributions are taxable.

Putting Contributions into a Roth IRA

To ensure you get tax-free withdrawals during retirement, consider putting your after-tax 401(k) contributions into a Roth IRA. Just keep in mind that you will have to wait until you are 59 ½ to withdraw, and you must make your first contribution before you are 54 ½.

If you are interested in making after-tax contributions, there are two ways to do so. (Note that not every company offers after-tax 401(k) contributions, so check with your employer or HR representative to see what is available.)

The first strategy is called an in-plan conversion. With this option, you can easily convert some or all of your retirement savings into a Roth account. You pay taxes on the money you convert but not on future withdrawals. Some plans may even offer auto-conversion so you can do this quickly and easily.

The other option is an in-service withdrawal. With this approach, you can roll your after-tax savings into a Roth IRA not connected to your employer-sponsored retirement plan.

If your employer doesn’t offer in-service distributions or in-plan withdrawals, you may have to ask what options you have to withdraw money and put it into an IRA and what the risks and penalties are.

Split Between a Roth and Traditional IRA to Defer Taxes

To avoid paying taxes on the earnings of any after-tax contributions, you can put your after-tax savings into a Roth IRA and your earnings into a traditional IRA. By splitting your contributions in this way, you will end up paying taxes on your earnings when you make a withdrawal from your traditional IRA.

Here’s an example. Say you made $20,000 in after-tax contributions to your 401(k) in 2020. When you check your balance at the end of the quarter, you realize you made $1,000.

Now, you can either roll the $21,000 into a Roth IRA, paying taxes on the $1,000, or put the $20,000 into a Roth IRA and the $1,000 into a traditional IRA. If you split your savings, you won’t pay taxes on the $1,000 until you withdraw it from your traditional IRA when you retire.

Are After-Tax Contributions Worth It for Me?

Here are some people who should consider making after-tax 401(k) contributions:

• High earners who have maxed out their pre-tax contributions. After-tax contributions may be an excellent way to boost your savings.
• Anyone who wants to grow tax-deferred investments without a brokerage account. After-tax 401(k) investments might be better because they are a little more tax-efficient. You get tax-free compounding with tax-free withdrawals in retirement. With a brokerage account, you will pay capital gains taxes when you sell your securities.
• People who can’t do a rollover because their employers don’t offer in-service distributions or in-plan conversions. Think carefully here, though. If you let after-tax contributions grow in your 401(k), you will have to pay taxes when you withdraw your earnings.

After-tax contributions aren’t suitable for everyone and aren’t worth considering unless you’re already making the maximum allowable contributions to your 401(k). Pre-tax contributions are better than after-tax contributions from a tax standpoint.

Final Thoughts

After-tax 401(k) contributions aren’t for everyone, but if you want to build an emergency savings account or are a high-income earner who has maxed out your total pre-tax contributions and has more money to invest, after-tax contributions are a good option.

Note that employers may not match after-tax contributions, so check the details of your employer-sponsored plan and talk to your financial advisor about how these options affect your personal circumstances.

Any opinions are those of Thomas Fleishel and not necessarily those of Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

 Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person’s situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

 401(k) plans are long-term retirement savings vehicles. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty.

 Matching contributions from your employer may be subject to a vesting schedule. Please consult with your financial advisor for more information.

 Contributions to a traditional IRA may be tax-deductible depending on the taxpayer’s income, tax-filing status, and other factors. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty.

The post What You Need to Know About After-Tax 401K Contributions appeared first on Fleishel Financial.

It’s fun to reminisce about some of our life’s memorable experiences, especially the ones that are humorous and ones that taught us life lessons.  Growing up in my hometown of DeLand in the 60s and 70’s, life was vastly different from today in so many ways.  There were no cell phones, no internet, and very minimal political correctness that I can remember.  The school lunch was still prepared in-house by talented lunch ladies who took pride in their work, not catered in by some unknown company.  Man, those cinnamon buns were to die for! We were taught to say Ma’am and Sir and treat adults with respect.  Not that we were angels by any stretch of the imagination, but at an early age, I was taught to take responsibility for my own actions and some of those were hard lessons.  I started my first job at age 14 picking decorative ferns for local growers which I did until I graduated from High School.  I also picked oranges, baled maypop vine, (used to make a sedative in Europe), bagged horse manure, and worked as a bus boy and short-order cook.  I also had a stint as a carpenter’s helper and painter. The work helped me buy my first motorcycle at age 15 and then my first auto at 16, I paid for my own insurance, gas, food, and other necessities.  I had a few fender benders and tickets so those were some tough life lessons, especially for the hikes in my auto insurance expense.

Not having funds to pay for college, and clueless as to what I would major in, I took the advice of my sister’s husband, a highly decorated Army officer and I enlisted in the Army.  At that time, to boost the depleted ranks, they added luring incentives like the GI Bill program to pay for college after three years of service. This was one of the best decisions I ever made at the time, taught me further lessons on teamwork, leadership, duty, discipline getting along with folks from all walks of life, and deepened my spiritual life.  That was not a result of the military directly but a ministry that helped servicemembers grow in their faith.  Life was not too difficult in a peace-time, all-volunteer Army.  During that period however, there was still lots of racial tension and challenges. Just after the tail end of the Vietnam conflict, the human casualties of war were present.  My platoon sergeant kept a perpetual booze bottle in his boot and the squad leader was a glue huffer.  Somehow, besides being an armored personnel carrier operator, I ended up as the designated keeper of the barracks and spent most days repairing busted doors and windows from drunk and disorderly conduct by the inhabitants over most weekends. Thankfully, I lived off base in a house with some other GIs that had a fabulous view of Pike’s Peak in Colorado Springs.

One hilarious incident stands out on the highlight reel of my time in the service.  One frigid January day, the Brigade commander decided to call a full Brigade formation on the massive parade grounds that happened to be covered in about 4 inches of fresh snow.  We’re talking about five thousand soldiers, made up of four Battalions and four companies each standing at parade rest.  We’re all neatly lined up, the mist of rising in clouds from the five thousand freezing GIs in endless rows of green contrasted with the vast blanket of snow while the general and several other commanders droned on about the history and achievements of our illustrious Brigade. Feet started shuffling to stay warm, coughing is heard all around and after about 45 minutes of this, the GI’s had had about enough.  You heard a roar and one Battalion threw a white barrage of thousands of snowballs at the Battalion next to them.  Of course, there was a rapid response of snowballs returned.  Before you knew it, the entire parade ground was a gigantic snowball battle.  All the while, commanders, officers, and sergeants were screaming orders and making threats to bring order to the melee.  It literally took about 20 minutes to calm things down before the formation was dismissed and each unit was sent back to their respective reprimands.  I guess all that combat training had to be expressed in some form of aggression, albeit harmless.

So what’s the moral of this story?  A few possibilities: A. If it’s going to be, its up to me.  B. Take responsibility for your own life and actions C. Experiment with different paths of work to discover your unique ability.  D. Check your ego at the door – Sometimes we need to do whatever it takes to just get by.  E. Occasionally, you just have to let some steam off.  Take your pick!

Any opinions are those of Thomas Fleishel and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.

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A will is more like an extremely detailed set of instructions to be followed after you pass away. For example, your will names the executor of your estate and determines who will be the guardian of your children if necessary. You can distribute assets in your will, but it’s not necessarily the best way to do so, which is why so many people use a trust.

Many people think that trusts are only for the super-wealthy, but this is not so. This thinking is one of the main reasons why trusts are so under-utilized.

What about probate?

Probate is another legal process relating to asset distribution. It occurs when a court distributes an individual’s assets. The court uses a will as a guide to who gets what, but people can protest a will, so there is no guarantee that your assets will go where you want them to.

If you have a retirement account, it will not go to probate as long as you have a living named beneficiary. Same with life insurance proceeds and bank accounts with a payable on death or transfer on death with a named living beneficiary. Accounts with joint owners also generally transfer to the living owner without going to probate.

All assets that do not pass directly to your spouse or heirs generally go to probate court. This process is long and can be contentions, so many people try to avoid it whenever possible.

A living trust can help avoid many problems.

When you use a living trust instead of a will, assets owned by the trust will skip probate and go directly to your heirs as you have outlined the distribution in the trust. A trust is the best way to control what happens to your assets after you pass.

Here is an example. Say you and your spouse have two adult children who are your heirs and a taxable brokerage account worth $500K. One option you have is to put the account into a trust, and pass the money along to your spouse when you die or to your children if your spouse is no longer living.

If your children are young, you may want to stipulate that they cannot inherit the money until they reach a certain age. For example, maybe you want them to have half of their share when they are 30 and the second half when they are 40. You can also set it up so the trustee can distribute money for special expenses before these ages, for example, to pay for college tuition or a wedding.

Now, let’s say that you had children from a previous marriage. Depending on your family dynamic, you may want to bypass giving your spouse control of your account to ensure that all of your children get the same amount. In this case, you can set up the trust so that the account goes directly to your children, setting up stipulations for how and when it is to be distributed.

Trusts and taxes

Assets in your trust remain in your control while you are alive and are taxed the same as any of your other assets. After you pass, some assets are eligible for a step-up in basis, even if they are a part of your trust.

That said, estate planning using a trust can help you avoid some estate taxes. In 2020, the estate tax exemption from the federal government was $23.16M, portable between you and your spouse. Some states also have estate taxes to consider. You can use a trust as a credit shelter or as a way to preserve the exemption.

In this case, any assets up to the exemption amount could go from the living trust to a credit shelter trust. Anything remaining could go to a family trust. If your surviving spouse dies later the same year, the credit shelter trust wouldn’t be included in the taxable estate, which would reduce the amount of taxes owed significantly.

Final Thoughts

Trusts can help you accomplish many goals and have control over your assets long after you are gone. When planning your estate, you should regularly consult with an attorney or qualified financial planner to make sure your current situation aligns with your future goals within the confines of the law. Legislative changes may occur that force you to revisit your plan, but a little bit of work and planning upfront can save you and your loved ones a lot of hassle down the road.

Any opinions are those of Thomas Fleishel and not necessarily those of Raymond James. Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person’s situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

The post Why You Should Consider a Trust When Estate Planning appeared first on Fleishel Financial.

Historic Inflation is causing the Federal Reserve to hike interest rates at an unprecedented rate.  Higher rates are intended to slow down the economy and cause prices to return to “normal,” whatever that is.  Even the bond market is being impacted- with rising rates, bond prices turn negative, depending on the maturity dates. So, what is an investor to do?

You may be wondering:

• Are my investments properly positioned to weather the current and near-term market risks?
• Has our advisor team made pre-emptive modifications to our investment allocations and reduced our exposure to some of the more risky holdings?
• Have they been communicating with us on a regular basis and providing meaningful updates on their strategies to help protect our hard-earned dollars?
• Have they reviewed our financial plan to determine if we’re still on track to achieve our retirement and other financial goals?
• Or, are they just telling us to just ride it out and hope for the best?

Or, you may have been trying to be a self-directed investor, but in this market, realized this isn’t as easy as you thought.

It might be a good time for a second opinion to get a more up-to-date evaluation of our long-term goals and risk tolerance.  Your financial advisor is supposed to be one of your most trusted relationships, but if they are either un-communicative, incompetent, or at worst, uncaring, it may be time to consider another more attentive and client-focused advisor relationship. It’s your money, so why not work with a responsive advisor team that is looking out for your best interests, not theirs?

Any opinions are those of Thomas Fleishel and not necessarily those of Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

The post Are My Investments Properly Positioned to Weather the Storm appeared first on Fleishel Financial.

The online study was conducted in March 2021 and included 990 Americans between the ages of 40 and 73. The results show that, as far as retirement savings, half of the people 40 and older report having less than $50,000 saved for retirement. Even more shocking, a quarter has no retirement savings at all, including a third of all workers between ages 62 and 66.

More than half of respondents reported saving less than 10% of their income, and only about 44% felt that they would have enough savings for their retirement.

These results indicate that most Americans are not saving enough, some are not saving at all, and what many people have planned for their retirement may not come to fruition.

For example, of workers who earn between $30,000 and $75,000 a year, 62% of them expect to have more than $45,000 a year in retirement income. Considering that they may receive $25,000 a year from social security, that is a difference of $20,000 they will need to find.

Another problem is that most workers may not be doing the math. Only 41% of people who responded to the survey reported that they had tried to figure out how much they would need for retirement. Despite this, about 30% said they plan to retire before age 65 even though a large majority of them are not eligible for full Social Security benefits until they turn 67.

In addition to these inflated ideas about retirement funding, about 70% of workers expect to have money beyond what they need for basic expenses and hope to travel. According to the IRI, though, more than half of workers will be unable to manage daily expenses on Social Security, especially if they don’t plan on working until 67.

And what about contingency plans? What happens when they exhaust their retirement savings? Many workers have unrealistic expectations here, too. About 62% believe that they can downsize their home and survive on Social Security if their savings runs out, and 38% said they would just return to work.

But there are real issues with these plans. For example, the Bureau of Labor Statistics shows that the average expenditure for those ages 54 to 74 in a year is $53,000, which is nearing the maximum Social Security benefit for a married couple. And that’s without considering the Social Security shortages that are expected to show themselves in the mid-2030s. At that point, Social Security will only be able to pay 78% of projected benefits.

Four of ten people assume Medicare will cover their health care expenses and don’t realize that they will still face many out-of-pocket costs and that Medicare doesn’t cover long-term care.

The evidence seems to indicate that returning to work may be necessary for many people to survive after their retirement savings run out, but it’s worth considering how marketable their skills will be and how healthy they will be at that point.

5 Biggest Retirement Planning Regrets

With all this in mind, here are the five biggest regrets people have about their retirement planning.

1. Workers wish they had invested more aggressively.
2. They wish they had learned more about various financial products.
3. They regret not working with a financial advisor.
4. Workers wish they had saved more.
5. They wish they had started saving earlier.

Any opinions are those of Thomas Fleishel and not necessarily those of Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

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