Latest News
Everything thats going on at Enfold is collected here
Hey there! We are Enfold and we make really beautiful and amazing stuff.
This can be used to describe what you do, how you do it, & who you do it for.
Why Estate Planning is Not Just for the Wealthy
NewsSimply the word ‘Estate’ alone can throw most people off including an estate plan in their retirement strategy. However, there is a lot more to who gets your belongings when you die. Spoiler alert: You don’t need millions or billions to get planning!
Estate planning is a financial strategy that prepares an individual to pass on their wealth and possessions to loved ones. Even if you don’t have a lot to give in your eyes, most people have assets they want to pass upon their death. Therefore it’s important to note that an estate plan is not just for the rich or elderly.
A well designed estate plan can do a lot for you and your loved ones. Deciding what happens to whatever is left of your money when you die is often passed over. There are many parts to estate planning, we’ve simplified a couple of those parts and how you can leverage estate planning to cater to you and your families needs.
Wills
A will is a document that spells out who gets what when a person passes. It’s important for everyone to have a will made in case of emergencies. Assets covered by a will go to those named in the will. This might include bank and investment accounts, personal property, collectibles and other assets. It can also specifically exclude those who someone doesn’t want to benefit from their estate.
Both financial advisors and attorneys play a big role in will planning. The right advisor should encourage their clients to review their will and have any needed changes made every few years. This is especially true if there has been a life change such as a marriage, divorce, or death of a spouse. Wills should be prepared by a professional who is well-versed in estate planning, including the laws of their specific state.
Beneficiary Designations
Certain assets pass to heirs based on beneficiary designations. These are known as “will substitutes.” This means that the beneficiary designation overrides anything that might be in the client’s will regarding the distribution of the asset. A couple of examples of these assets would be:
It’s important that these beneficiary designations are current, especially after a major life change like getting divorced or getting married.
Trusts
A trust is a legal vehicle that holds assets for the benefit of the trust’s beneficiaries. A trust may conjure images of the rich and wealthy, but trusts can work well for people at various levels of wealth. Trusts can be used to ensure that assets are managed for the benefit of heirs until they are ready to manage them on their own.
Trusts can be established to hold assets while clients are alive and also be funded upon their death in other cases. An irrevocable trust is a trust that allows the creator of the trust to get the assets placed in the trust out of their estate and not be subject to any estate taxes. In exchange they surrender all ownership of and control over these assets.
A Couple of Things to Consider
Once you have your estate plan made, it is not something that you can forget about. As you approach your review process, you are looking to ensure that your intentions have not changed, that the right people are included, that major life changes are reflected, and that all other major changes are notated.
Effective estate management enables you to manage your affairs during your lifetime and control the distribution of your wealth after death. An effective estate strategy can spell out your healthcare wishes and ensure that they’re carried out – even if you are unable to communicate. It can even designate someone to manage your financial affairs should you be unable to do so.
At Agemy Financial Strategies, we have an array of will and estate planning solutions to guide you through the entire process of creating last wills and testaments, living trusts, powers of attorney, and living wills — all with the help of our trusted financial planners.
If you have any questions on our company, services, values or more, contact the retirement income specialists at Agemy Financial here today. Our financial advisors in both Denver, Colorado and Guilford, Connecticut are waiting for your call.
5 Facts About Survivors Benefits
NewsMore than 5.9 million people were receiving Social Security survivor benefits in May 2021. Typically, monthly payments go to the spouse, or children of the person who was receiving Social Security benefits. In certain situations, parents, grandchildren or stepchildren of a late worker may also qualify for survivor benefits.
Survivor benefits are based on the amount the deceased was receiving from Social Security at the time of death. Here are 5 facts about survivor benefits and how it will better prepare you and your family in the case of a loved one passing.
The government pays Social Security benefits monthly. The benefits are paid in the month following the month for which they are due. For example, you would receive your July benefit in August. Generally, the day of the month you receive your benefit payment depends on the birth date of the person for whose earnings record you receive benefits.
For example, if you get benefits as a retired worker, we base your benefit payment date on your birth date. If you receive benefits based on your spouse’s work, we base your benefit payment date on your spouse’s birth date.
If a person receiving Social Security benefits dies, the social security office needs to be notified. They can’t pay benefits for the month of death. That means if the person died in July, the check received in August (which is payment for July) must be returned.
If the payment is by direct deposit, notify the financial institution as soon as possible so it can return any payments received after death. Family members may be eligible for Social Security survivors benefits when a person dies.
The eligible family members of a retired or disabled beneficiary may receive a monthly payment of up to 50 percent of beneficiary’s amount. Survivors’ benefits usually range from about 75 percent to 100 percent of the deceased worker’s amount.
You can continue to work and still get Social Security retirement benefits. Retired workers need 40 work credits to be eligible for benefits, but your work credits alone do not determine how much you will receive each month. Your lifetime earnings are used to calculate your monthly benefit amount. When we figure your retirement benefit, we use the average of your highest 35 years of earnings.
Your earnings in and after the month you reach your full retirement age won’t affect your Social Security benefits. They will reduce your benefits, however, if your earnings exceed certain limits for the months before you reach your full retirement age. The full retirement age is 66 and 10 months for people born in 1959 and increases to 67 for people born in 1960 or later.
When you’re already receiving retirement benefits, we automatically sign you up for Medicare Parts A and B when you turn 65. Medicare Part Ais hospital insurance and it helps pay for inpatient care in a hospital or skilled nursing facility following a hospital stay. It also pays for some home health care and hospice care. Medicare Part B is medical insurance, and it helps pay for services from doctors and other health care providers, outpatient care, home health care, durable medical equipment, and some preventative services.
When you’re signing up for a plan, you can decline Part B if you decide you choose not to take part in it, this plan requires a monthly premium. It’s important to know your options and all the costs that come with healthcare plans when you’re planning for retirement. If you are not receiving retirement benefits as you approach age 65, you should contact Social Security three months before age 65 to sign up for Medicare Part A and B.
Learn More
Survivor Benefits could help take care of your loved ones if you die prematurely. The most accurate way to determine your potential survivors’ benefits is to create an account at www.ssa.gov and view your Social Security statement. In addition to information about your own benefits, you can find estimated survivors benefit amounts, whether you’ve earned enough credits for your family to qualify, and the maximum total survivors benefits that could be collected on your work record.
As always, the team at Agemy Financial Strategies are here to help you plan for retirement, including making sure you’re aware of every financial benefit available to you as you enter your golden yeas. Contact us here today to learn more.
Financial Planning Tips for Fall
NewsNow that the dog days of summer are winding down, there are many reasons why you should make financial planning a priority this fall. Start by revisiting your savings goals and getting your financial health in tiptop shape before the year’s end.
As the seasons change and we get closer to the end of the year, it’s a great time to get a head start on end of year planning. When a calendar year ends, the window slowly closes on a set of financial opportunities.
Here are a few things to keep in mind to get your financial plan in shape as we enter the fall season.
Organize your Financial Records
As you work towards building your dream retirement this autumn, you should begin by getting a clear picture of where you are currently positioned. Work very deliberately on all of the data collection to give yourself the best 360 degree view as a base to make improvements.
Use this opportunity to organize where you keep all of your financial information. This includes but is not limited to:
Once this data is collected, sit down with your financial advisor to analyze the year to date, and take a look at where your money’s been going and what you can cut back on. Using a tool like Agemy Financial Strategies’ online calculators is a great resource – from tracking expenses to investments, they will tag your transactions, gains and losses and categorize them, so it’ll show you what areas you need to make improvements on.
Harvest Tax Strategies
As we enter the last quarter of the year, it’s a good time to brainstorm tax planning strategies. Now is the time to conduct 2021 tax planning and think about 2022 tax planning as well. A proactive approach to tax planning now can help you make material changes while there is still time. Some ideas will help cut your tax bill for the current year; others may allow you to minimize future taxes.
Tax-loss harvesting is a strategy that can help investors minimize any taxes they may owe on capital gains or their regular income. It can also improve overall investment returns. As a strategy, tax-loss harvesting involves selling an investment that has lost value, replacing it with a reasonably similar investment, and then using the investment sold at a loss to offset any realized gains.
Tax-loss harvesting only applies to taxable investment accounts. Retirement accounts such as IRAs and 401(k) accounts grow tax-deferred so are not subject to capital gains taxes. This leads nicely into our next financial tip…
Autumn Investing
Changes happen all the time in the finance world, especially taxes and laws, and these tend to go into effect as the new year rolls in. If you’re looking ahead with your other investments, such as your stock portfolio, be proactive and well educated about your options and about what’s happening—and expected to happen—moving forward. The best course of action is to touch base with your financial advisor, who can steer you on the path that’s right for you.
At Agemy Financial Strategies, we offer principles and strategies that may enable you to put together an investment portfolio that reflects your risk tolerance, time horizon, and goals. Understanding these principles and strategies can help you avoid some of the pitfalls that snare some investors.
Reconsider your 401(k) Terms
Can you max out your contribution to your workplace retirement plan? Most employers sponsor a 401(k) or 403(b) plan, and you have until the end of December to boost your 2021 contribution.
Can you do the same with your IRA? You can withdraw contributions tax-free at any time, for any reason, from a Roth IRA. This year, the traditional and Roth IRA contribution limit is $6,000, or $7,000 if you’re age 50 or older by the end of the year; or your taxable compensation for the year. You can withdraw earnings from a Roth IRA, but it could trigger taxes and penalties depending on your age and that of the account. Due to the CARES Act, you can withdraw as much as $100,000 from a Roth or traditional IRA without paying a penalty for being under 59½, if you have been affected by COVID-19.
Start Planning for the Holidays
With Halloween, Thanksgiving, Hanukkah and Christmas on the horizon, the best part of fall financial planning is looking ahead to the holidays. But while it’s great fun to spend time with family and friends, it can also put a huge strain on your budget. Make sure to craft your holiday budget now and start planning for it. That way when the holiday craziness starts, you won’t be taken by surprise and there won’t be a big hole in your budget. If you’re planning on traveling over the holidays, don’t put it off until the last minute – start planning now. Air fare and hotel prices tend to skyrocket the closer it gets to the holidays, so the further out you can book the better.
Final Thoughts
The return of cool breezes, comforting foods, and pumpkins can be invigorating. It’s also a bookmark of sorts, especially for your finances—a perfect time to take stock of your spending after the summer’s over to see what lies ahead.
It’s always important to meet with your Financial Advisor to get the facts from the source. Be sure to provide them with updates on your financial situation, including your expected retirement date, income needs, and any other family situations that may affect your financial plan.
Contact us today for more important information on financial planning throughout the rest of 2021 – and into 2022 and beyond.
Five Estate Planning FAQs
NewsNo matter how big your estate is, one day you will want to pass it on to your loved ones. But there is more to estate planning than simply writing a will. Throughout this Estate Planning FAQ Series, we hope that one or more of the following questions and answers will help you understand this deceptively complicated area.
Estate planning can be an uncomfortable topic to talk about, but it’s an important one. And while everyone knows that they need an estate plan, few of us do anything about it. In fact, by most estimates, anywhere from 50–60% of Americans don’t have a will.
There is some good news on the horizon, however: the COVID-19 Pandemic has changed the nation’s perspective on many things, and estate planning is definitely one of them. Caring.com’s 2021 Wills and Estate Planning Study found that while middle- and older- aged adults are less likely to have a will now than they were just one year ago, younger adults are 63% more likely to have one this year than they were pre-pandemic. Shockingly, 18-34 year-olds are now 16% more likely to have a will than those in the 35-54 age group. The younger generation was also the most likely to cite COVID-19 as the reason they started taking estate planning seriously.
Estate Planning 101
If you have an estate plan already in place, then you have started off on the right path. If you do not have one yet, it is time to get one drawn up so you can have a plan in place.
In a nutshell, estate and trust planning is the process of using professional advisors who are familiar with your goals, concerns, and assets to organize your estate and/or set up your trust. It mainly involves setting up a plan that establishes who will eventually receive your assets. It also makes known how you want your affairs to be handled in the event you are unable to handle them on your own for any reason. It’s a complicated process, and it can definitely feel overwhelming.
There are many components to estate planning, and while there’s a common misconception that it’s just about your finances, the truth is there’s a lot more to it. This is why there are many questions that come to mind when it comes to estate planning. Most people want to know how to provide as much as they can now so their family isn’t left wondering or questioning what’s next once you’re gone: This is why understanding estate planning is key. So, where do you get started? Below are some of the most asked questions when it comes to estate planning.
Q: What’s the Difference Between a Will, and a Trust?
A: Wills and trusts have some similarities. While many people think simply having a Will is sufficient, the fact is you need more. If you have a Will, you’re off to a great start. But a Will by itself is just a small piece of the Estate Planning puzzle.
There are some advantages and disadvantages to both wills and trusts, so it’s always important to speak with your financial planner about your circumstances to determine which of the options are best for you. Ultimately, wills and trusts are both estate planning tools and can work together to create the best plan for an estate. The main differences between a will and a trust are:
Q: I’m worried my family will contest my will. What can I do to prevent this from happening?
A: All families have challenges and sometimes, issues spill into the planning and settling of an estate. There are several things you can do to make the arrangement you intend more likely to be upheld once you are gone:
Q: My parents never talk about their estate plan with me. How can I break the ice?
A: The thought of death can be an uncomfortable conversation, especially for older parents and grandparents. This topic can make them feel “unwanted”. Many people mistakenly picture estate planning as aggressive battles for assets, so they become hesitant to proceed during their lifetime because they wrongfully think it might take away their right to enjoy their own properties. In addition, some parents think that depending on a future inheritance will discourage children from working hard.>Breaking the ice with parents and grandparents might be easier than you thought. Based on past experiences, the following factors can lead to successful communications:
Q: How do I Avoid Estate and Inheritance Tax?
A: Much of your Estate Planning is done with taxes in mind. The ultimate goal is to leave the absolute most you can to your heirs. Strategizing by taking action to minimize assets lost to taxes is an effective way to achieve your goal. Understanding potential types of taxes is important:
For many years, average families used their estate plans to avoid or reduce estate and inheritance taxes – the taxes due on your estate when you die. However, federal estate tax is now levied on only very wealthy estates – estates worth well over $11 million. So most people with average-size estates do not need to worry about estate taxes. That said, a few states do levy estate and inheritance taxes on smaller estates and if you live in one of those states and you have a substantial amount of property, you may want to use your estate plan to try to reduce or avoid these taxes.
Q: How Can I Start a Conversation with my Family about the importance of Having a Will or Estate Plan in place?
A: In modern days, the best results come from continuous and transparent estate planning efforts. Some important benefits of this method include:
Updating Your Estate Plan
Once you have your estate plan made, it is not something that you can forget about. As you approach your review process, on broad terms, you are looking to ensure that your intentions have not changed, that the right people are included, that major life changes are reflected, and that all other major changes are notated.
There isn’t a hard rule about when you should update your Estate Plan, but a good rule of thumb is try to update it whenever you have a major life event (birth of a child, death of someone important to your plan, marriage, divorce, etc.). And if you find you haven’t had any life events in recent years, try to review and update as needed every 3 – 5 years.
Final Thoughts
An effective estate strategy can spell out your wishes and ensure that they’re carried out – even if you are unable to communicate. It can even designate someone to manage your financial affairs should you be unable to do so. At Agemy Financial Strategies, we have an array of will and estate planning solutions to guide you through the entire process of creating last wills and testaments, living trusts, powers of attorney, and living wills — all with the help of our trusted, friendly financial planners.
If you have any questions on our company, services, values or more, contact the retirement income experts at Agemy Financial here today. Our financial advisors in both Denver, Colorado and Guilford, Connecticut are waiting for your call
Investing in Women
NewsBoth men and women want to achieve long term financial security. So how is financial planning for women different? No matter whether you are young, mature, married or single, financial planning should be a top priority for you.
It’s no secret that saving for retirement is important, yet many women face challenges in building their retirement portfolios. Women save less than men, and they have fewer working years. These are factors that have made planning and saving for retirement a serious challenge for a lot of women.
Different financial needs coupled with family responsibilities make it difficult for women to save adequately for retirement. Saving for retirement is not a top priority for some women who must pay off debt and cater to their daily living costs. For many, thinking about day-to-day, immediate financial needs comes first rather than long-term goals. Here’s a look at some ways to invest in a brighter future.
Retirement Savings (and how women can recover)
Firstly, as a woman, you need to assess your financial situation to get a clear picture of how they use your money. To start saving, you need to analyze your income and spending. Then, you can adjust their spending habits to save more money efficiently. Try our financial calculators here to get started.
Secondly, prioritizing savings contributions goes a long way in recovering retirement savings. When it comes to money you should put yourself first and start saving for you. It is important to invest in things that help support and secure your future.
To succeed, you should set aside funds for your savings first before spending. As you budget, you should treat retirement savings as an urgent bill that needs to be paid. If you’re employed, your workplace retirement plan may be a great place to begin investing as it offers numerous perks. Your employer-sponsored 401(k) allows you to easily contribute a portion of your salary into long-term investments and build your retirement portfolio efficiently.
Rebalancing Your Portfolio
Rebalancing/reallocation of your portfolio may have a positive impact on your retirement savings plan, and variation can help minimize risk. If you are in your 20s or 30s, you should diversify your portfolio among several stock styles and sizes. You could consider large-, mid- and even small-cap stocks to round out your diversification.
When you get closer to retirement, you might want to move your portfolio into a less aggressive mix. Aggressive investment mixes are ideal for people who are close to the retirement age, since they are shifting their focus to preservation of capital and moderate growth. Working with a financial advisor will not only help you prepare in managing your portfolio but also help make the right choices for you.
Educate yourself on Investments and Retirement
Misinformation can easily come down the pipeline when taking the time to learn about investing in your portfolio and retirement. It’s crucial that women take the time to educate themselves on these financial matters. It will save you time in the long run. Being knowledgeable about your future will help you make well-informed decisions on your retirement/investing plans.
Last Thoughts
In a nutshell, investing should be easy – just buy low and sell high – but most of us have trouble following that simple advice. There are principles and strategies that may enable you to put together an investment portfolio that reflects your risk tolerance, time horizon, and goals. Understanding these principles and strategies can help you avoid some of the pitfalls that snare some investors.
However, a good financial plan is more than just a budgeting exercise or a hands-off investment strategy. It takes into account all your assets, your retirement savings, and your future plans. Working with an experienced financial advisory firm like Agemy Financial – that offers everything from investments to estate planning services – will help you create a comprehensive financial plan that addresses your dreams and lifestyle.
We can help you get individualized support tailored to your situation and goals, which may be more beneficial than trying to learn everything on your own. The right advisor can serve as a trusted partner throughout a woman’s financial journey and can provide you support and guidance to invest wisely and grow wealth.
Contact us today for more information on investment portfolios and preparing for retirement to help make your money grow for you. We look forward to hearing from you.
5 Key Mistakes to Avoid in Retirement Planning
NewsThe pandemic has pushed individuals across the nation into thinking about their retirement plans – or for many, their lack of plans. No matter where you’re at in your retirement journey, the road to a successful, stress-free future lies in proactive planning and learning how to avoid financial potholes that could set you back even further.
Retirement planning is one of the most important financial goals for your future. When executed correctly, you’ll help you maximize your potential for financial independence later in life.
When done incorrectly however, you’re facing a future that could be laden with stress and worry. Now is a good time to look at what you currently have, what you may need in retirement and a solid plan to get you there.
A new survey from Credit Ninja shows that the financial uncertainty has 21% of people reassessing their retirement age. To avoid a negative outcome in your golden years, consider these 5 key mistakes to avoid in retirement planning, and make moves now to avoid them!
The most common mistake that many people make is not having a retirement plan in place. While short-term panicking isn’t the answer to your unpreparedness, trying to predict future expenses instead of focusing on future income is a recipe for disaster.
There are many factors that come into play when planning for retirement. Such as, where you will retire, the kind of lifestyle you want to have while in retirement, and most importantly, your health. What some people fail to realize is not having a retirement plan in place sets them back significantly.
It could mean working longer or making serious adjustments to your lifestyle to get you there. Most people without any 401(k) savings are put in that position because they don’t have access to a plan at work, which is caused by their employer not having a plan at all. Another situation could be, they’re part-time or they haven’t been at the company long enough to qualify for a retirement plan. The best way to get around this is to see if your company offers retirement plans, if they do make sure to contribute enough to take advantage of any match your company offers.
It’s never too late to start your retirement income plan, so reach out to your trusted financial advisor and get started today.
A rule of thumb for retirement planning is, you should always know your savings rate. Savings rates are calculated by dividing the amount in your savings by your annual income – and trying to increase it every year. The lower your savings rate, the less money you’ll have to last you through your golden years and the less you’ll have to afford all of the necessities you’ve grown accustomed to.
According to the U.S. Bureau of Economic Analysis, the average American saved just 9.4% of his or her disposable income as of June 2021. However, most financial advisors recommend saving 10 to 15% of your income for retirement. No matter what sum you need or feel is right for retirement, the sooner you start saving and investing, the more secure you’ll be in the future.
Many retirees start by pursuing all the things they didn’t get to do while working, such as travelling, picking up a new hobby, buying a new car or renovating their homes. But so many underestimate the actual cost of these monumental expenses. To avoid this mistake, create a detailed but realistic budget – and stick to it. Be sure to work with your financial advisor to find a withdrawal rate that will stretch your money for as long as possible.
To help compensate for the additional spending you have in mind, as retirement nears, you’ll want to make sure you are maximizing your 401(k) or individual retirement account contribution and decreasing your debt and spending. Take a look at anything that has double-digit interest and eliminate that. Ideally, you don’t want anything you are paying 5% interest on. A great example of this is home mortgages. Refinancing your loan could benefit you in the long run.
If you’re having trouble saving more of your income, take a look at your spending habits and see where you need to cut back. It can be eye opening to see how little things can add up.
Long-term care is expensive. A study by Fidelity Investments found that a couple retiring at 65 would need $295,000 to cover medical costs in retirement. That figure doesn’t even account for long-term care, such as assisted living or nursing home costs. The yearly average cost of a nursing home in the U.S. is $93,075 for a semi private room and $105,850 for a private room. Not considering these costs in your retirement plan now, means you could be like many families who run out of money within a year of entering a nursing home.
You might have a few medical bills now, but you’ll likely have more as you get older. If you’re having a hard time finding the money to pay for your current medical bills, you might have an even harder time paying medical expenses when you enter retirement. By saving money now, you won’t have to worry about not being able to pay hospital bills in the future. Planning for medical expenses is an important part of overall retirement planning.
While estate planning is an ongoing and ever changing strategy, there are common documents that are part of it: a Will, Living Trust, Powers of Attorney for your assets and healthcare directives, customized tax planning and other more complex components of a customized Trust.
The overarching goal is to protect your assets on the journey to retirement and to make sure that your wishes are executed correctly, so that your loved ones have an easier process and your assets are maximized.
Effective estate management enables you to manage your affairs during your lifetime and control the distribution of your wealth after death and can spell out your healthcare wishes and ensure that they’re carried out – even if you are unable to communicate. It can even designate someone to manage your financial affairs should you be unable to do so.
Final Thoughts
In 2021, the path to retirement success includes a mixture of saving strategies consisting of steady pension contributions from your employer, retirement annuities, estate planning, investments, emergency savings and more.
For those nearing retirement, reach out to your retirement income advisor. (Note: Not all financial advisors have the same level of experience or will offer you the same depth of services. So when contracting with an advisor, do your own due diligence first and make sure the advisor can meet your financial planning needs.)
At Agemy Financial Strategies, we have an array of retirement planning solutions to help you save and grow your money. If you have any questions on our company, services, values or more, contact the retirement income experts at Agemy Financial here today. Our trusted advisors in both Denver, Colorado and Guilford, Connecticut are waiting for your call