News Archives - Page 6 of 27 - Agemy Financial Strategies

The Financial Impact of Caregiving: How to Protect Your Future

HSA - Health Savings Account, News, Retirement Income Planning

Caregiving is a selfless act of love and devotion, yet it can also present significant financial challenges. From out-of-pocket expenses to lost wages and retirement savings, caregiving can profoundly impact long-term financial security. Nearly half (43%) of individuals are afraid that caregiving expenses will keep them from ever retiring.

More individuals find themselves in the role of caregiver—whether for aging parents, a spouse, or other loved ones. While caregiving is rewarding, it is crucial to plan ahead to minimize financial strain and help ensure your future remains secure. In this blog, we’ll explore the financial implications of caregiving, strategies to help manage costs, and steps to protect your financial well-being.

The Financial Burden of Caregiving

Caregiving is not just a time and emotional commitment—it also carries significant financial implications. The costs can quickly increase whether you provide part-time assistance or full-time care. From medical expenses to lost income, caregivers often face unexpected financial challenges that can disrupt their financial stability. The financial impact of caregiving can vary based on the level of care required, but it often includes:

Out-of-Pocket Costs

Caregivers often take on a significant financial burden, covering expenses such as medical supplies, home modifications, transportation, and groceries. According to a recent study, caregivers spend an average of over $7,200 per year on out-of-pocket caregiving costs—amounting to 26% of their annual income. These ongoing expenses can quickly add up, making it essential for caregivers to plan ahead and explore financial resources that can help alleviate the strain.

Lost Income and Career Disruptions

Caregiving responsibilities often require individuals to adjust their work schedules, reduce hours, or leave the workforce entirely, leading to significant financial consequences. These career interruptions can negatively affect income, retirement savings, and financial security.

Increased Healthcare Costs

Many caregivers neglect their health due to time constraints and stress. According to the Family Caregiver Alliance, caregivers report higher levels of depression and anxiety than non-caregivers, with some experiencing caregiver burnout, a state of physical, emotional, and mental exhaustion. This not only affects their well-being but also leads to greater reliance on healthcare services, prescription medications, and mental health treatment—adding to their financial burden.

Without proper planning, these rising medical expenses can strain caregivers’ budgets, making it essential to incorporate self-care, stress management, and financial preparation into their caregiving strategy. Prioritizing your own health enables you to provide better care for your loved one while helping protect your long-term financial and physical well-being.

Impact on Retirement Savings

Dipping into savings or reducing retirement contributions can have long-term financial consequences. Without careful planning, caregivers may face significant gaps in their retirement funds. Here are some ways you can help protect your retirement while caregiving:

Prioritize Retirement Contributions – Even if you must reduce your contributions, try contributing at least enough to take advantage of employer-matching contributions in a 401(k) or similar plan.
Consider Spousal IRA Contributions – If caregiving leads to job loss or reduced income, a spousal IRA can allow a working spouse to continue making contributions on behalf of the caregiver, helping ensure continued retirement savings.
Explore Catch-Up Contributions – If you’re 50 or older, catch-up contributions allow you to contribute extra funds to retirement accounts, helping bridge the gap caused by reduced savings during caregiving years.

How to Prepare Financially for Caregiving

Taking proactive steps can help ensure you provide quality care without compromising your financial well-being. Below are key strategies to help you manage the financial responsibilities of caregiving while protecting your financial future.

Create a Caregiving Plan

Establish a clear plan that outlines caregiving expenses, potential income changes, and available resources. Consider:

Medical and prescription costs.
Home modifications and assistive devices.
Transportation and caregiving services.
Legal and financial planning fees.

Explore Employer Benefits

Some employers offer caregiving benefits, such as flexible work arrangements, paid family leave, or Employee Assistance Programs (EAPs). Check with your HR department to understand what support is available.

Consider Long-Term Care Insurance

Long-term care insurance can help offset the costs of in-home care, assisted living, or nursing home care. Purchasing a policy earlier in life can lower premiums and help provide financial security if caregiving responsibilities arise.

Plan for Your Own Future Care Needs

Preparing for your own future is essential, just as you plan for a loved one’s care. Consider setting up a Health Savings Account (HSA) or dedicated retirement funds for potential long-term care needs.

Protecting Your Financial Future

Caregiving is a profound responsibility that requires emotional, physical, and financial preparation. While the financial burden can be significant, planning ahead can help protect your financial future while providing quality care for your loved ones. A well-structured financial plan can alleviate stress and help offer long-term security for caregivers and their families.

At Agemy Financial Strategies, we understand the unique financial challenges caregivers face. Our award-winning team is here to help you navigate these complexities and develop a plan that helps protect your financial well-being while supporting your caregiving journey. Here’s how we can help:

Establish Legal and Financial Safeguards

Caregiving often involves managing financial and legal decisions on behalf of a loved one. Our fiduciary advisors can help caregivers put important legal documents in place, such as:

Durable Power of Attorney for financial and healthcare decisions.
Living Will and Advance Directives.
Trusts to manage assets and protect financial interests.

Seek Financial Planning Assistance

Many caregivers find themselves financially stretched due to unexpected costs, career disruptions, and the need to support both their loved ones and their own future. Here’s how our team can help:

Personalized Financial Plan: We help structure a financial plan that accounts for caregiving costs, income adjustments, and savings goals.
Investment Strategies: Our team guides you in balancing liquidity with growth, helping you access funds when needed while continuing to build wealth.
Retirement Planning: We work with caregivers to develop strategies that help keep their retirement goals on track, even if they need to reduce contributions or change their income structure temporarily.

Have Open Conversations About Caregiving Expectations

Many caregivers focus so much on their loved one’s well-being that they neglect to plan for their own future care needs. Failing to prepare for potential long-term care expenses can lead to financial strain. Here’s how we can help:

Creating a future care plan for potential healthcare costs, long-term care options, and financial safety nets.
Facilitating family discussions around caregiving expectations, helping to create a structured plan that distributes responsibilities fairly among family members.
Building emergency savings and contingency plans to cover unexpected expenses, helping ensure that caregivers maintain financial independence.

Planning for the Future with Agemy Financial Strategies

At Agemy Financial Strategies, we understand the financial challenges caregivers face. Our team is committed to providing personalized, fiduciary-based financial planning that empowers you to navigate caregiving responsibilities while helping secure your financial future. If you’re balancing caregiving with financial concerns, let’s create a strategy that supports both your present needs and long-term goals.

Frequently Asked Questions (FAQ)

How can I financially prepare to become a caregiver?

Start by creating a detailed caregiving budget, exploring employer benefits, and considering long-term care insurance. Utilizing potential tax breaks can also help offset caregiving costs. Working alongside a trusted advisor can help you explore your available options.

Are there tax benefits available for caregivers?

Caregivers may qualify for potential deductions through the IRS. Deductions may include the Dependent Care Credit, Medical Expense Deduction, and the Child and Dependent Care Tax Credit. It’s important to consult with a trusted advisor to determine your eligibility.

Should I quit my job to provide full-time care?

Before making this decision, consider the long-term impact on your income, benefits, and retirement savings. Explore flexible work options and financial assistance programs to help balance caregiving and employment.

How can a fiduciary advisor help caregivers?

A fiduciary advisor can help create a comprehensive financial plan that accounts for caregiving costs while maintaining long-term financial security. They can also provide investment strategies and tax-efficient solutions tailored to individual needs.

Disclaimer: This content is for informational purposes only and should not be considered financial or investment advice. The strategies discussed may not be suitable for all individuals. Consult the qualified fiduciary advisors at Agemy Financial Strategies for personalized guidance tailored to your situation.

February 7, 2025/by Agemy Financial Strategies

Timing vs. Time in the Market: A Fiduciary’s Perspective

Investment Management, News

Market fluctuations often tempt investors to try to time the market, buying low and selling high to help maximize returns. However, research consistently shows that this strategy rarely works as intended.

According toa recent study, from 2004 to 2023, six of the seven best market days occurred after large decline days. But what happens if you sell and miss those days? Your potential return can fall dramatically.

Rather than attempting to outguess the market, staying invested long-term—or prioritizing time in the market—has historically been the more effective approach to building wealth. In this blog, we’ll discuss the differences between these two investment philosophies and share a fiduciary’s perspective on maximizing long-term financial growth.

The Allure and Risk of Timing the Market

The idea of timing the market—buying stocks when prices are low and selling when they peak—sounds like a foolproof way to maximize returns and avoid losses. On the surface, it’s an attractive strategy: who wouldn’t want to sidestep market downturns and cash in on rising prices?

While the appeal of market timing is understandable, successfully executing this strategy is a different story. Market movements are influenced by economic data, global events, interest rate changes, and investor sentiment—factors that even seasoned professionals struggle to predict with precision.

According to research by Nobel Prize-winning psychologist Daniel Kahneman, around 90% of investment decisions are influenced by emotions, with only 10% being driven by pure logic. Fear and greed often drive investors to sell in downturns—locking in losses—or chase high-performing stocks too late, resulting in missed gains.

Beyond emotional pitfalls, market timing also introduces higher transaction costs and potential tax consequences, which can further erode returns. Instead of trying to predict short-term movements, long-term investors who stay the course tend to see far better results over time.

Why Time in the Market Matters

Rather than trying to predict short-term market movements, a far more effective approach to wealth growth is staying invested for the long haul. Historically, investors who remain in the market—rather than attempting to time their entry and exit points—experience higher returns, reduced risk, and the full benefits of compounding growth.

Key Risks of Market Timing

Attempting to time the market is difficult and can be financially costly. Investors who try to jump in and out of the market based on short-term fluctuations often suffer from poor timing, missing key rebounds, and compounding their losses. Below are some of the biggest risks associated with market timing.

1. Emotional Investing

Emotions often drive irrational financial decisions. Investors who attempt to time the market frequently make panic-driven trades, selling off investments when prices drop and jumping back in when markets are already on the rise—essentially, buying high and selling low, the opposite of a profitable strategy.

2. Higher Costs and Taxes

Frequent buying and selling can lead to higher transaction costs and tax liabilities. Capital gains taxes on short-term trades, brokerage fees, and other costs can eat into investment returns, making market timing an even less effective strategy.

3. Lack of Consistency

Even if an investor successfully times the market once, doing so repeatedly over decades is nearly impossible. Economic conditions, interest rates, and global events influence stock prices in difficult-to-predict ways. A single misstep—exiting the market too early or re-entering too late—can lead to significant long-term opportunity costs.

The Power of Compounding

One of the strongest reasons for staying invested is the power of compounding—when your investment gains generate additional earnings over time. The longer you stay invested, the greater the compounding effect. Here’s how it works:

When you invest, your money has the potential to earn returns.
Over time, those returns generate additional earnings, which then compound themselves.
The longer your money remains in the market, the more opportunities it has to grow.

The Market Rewards Patience

Historical data shows that the market trends upward over the long term, even though short-term fluctuations are inevitable. While occasional downturns can be unsettling, the market has consistently recovered from major declines. Consider the following key insights:

The S&P 500 has averaged an annual return of around 10% (before inflation) over the past century despite recessions, market crashes, and periods of volatility.
Investors who stayed in the market during major downturns, such as the 2008 financial crisis, saw their portfolios recover and grow significantly in the following years.

Reducing Risk with a Long-Term Strategy

When investors focus on time in the market, they can potentially help reduce the risks associated with short-term volatility. Instead of worrying about day-to-day fluctuations, they may benefit from:

Market recoveries: Historically, the market has rebounded from every downturn.
Lower emotional decision-making: Long-term investors are less likely to panic and sell at the wrong time.
A disciplined investment approach: Staying the course allows investors to stick to their financial plan rather than reacting to market noise.

A Fiduciary’s Perspective on Long-Term Wealth Growth

At Agemy Financial Strategies, we take a proactive approach to long-term wealth growth. Market volatility is inevitable, but with a well-structured financial plan, you can navigate it confidently. For over 35 years, Agemy Financial Strategies has been dedicated to empowering retirees and pre-retirees through comprehensive services like retirement planning, wealth management, and legacy planning. Here’s how we help our clients build sustainable wealth:

Focus on Goals, Not Market Fluctuations: Instead of reacting to short-term market events, we emphasize creating a financial plan aligned with individual goals, risk tolerance, and time horizons.
Diversification and Asset Allocation: A well-diversified portfolio helps manage risk and optimize returns. Our fiduciaries help ensure that your investment choices are tailored to meet your unique needs rather than chasing market trends.
Behavioral Coaching and Education: Investors often need guidance during market downturns. Our advisors help clients stay disciplined by avoiding emotional decisions that could harm long-term results.
Risk Management and Tax Efficiency: Long-term investing doesn’t mean ignoring risk. We help clients make tax-efficient investment decisions and adjust portfolios based on evolving life circumstances while focusing on wealth preservation.

Final Thoughts

Building long-term wealth requires a strategic, disciplined approach—and at Agemy Financial Strategies, we’re here to help you stay on course. Your financial future is too important to leave to chance. Whether you’re planning for retirement, growing your investments, or preserving wealth for future generations, our award-winning team is committed to providing personalized guidance at every step.

Let’s create an investment strategy tailored to your goals. Contact us today to get started.

FAQ: Timing vs. Time in the Market

What is the biggest risk of market timing?
The biggest risk is missing the market’s best days, which can significantly reduce long-term returns. Investors who attempt to time the market often make emotional decisions that result in buying high and selling low.

How long should I stay invested in the market?
Your investment timeframe depends on your financial goals, risk tolerance, and retirement plans. However, history shows that staying invested for at least 10 to 30 years may help you to take full advantage of compounding growth and market recoveries. Partnering with the trusted advisors at Agemy Financial Strategies can help ensure you have the right strategy that aligns with your goals while helping you confidently navigatemarket fluctuations.

What if I need to access my money before retirement?
A diversified investment strategy includes liquid assets for short-term needs while keeping long-term investments growing. A fiduciary advisor can help balance liquidity with growth.

Can dollar-cost averaging help reduce risk?
Dollar-cost averaging spreads investments over time, reducing volatility’s impact and avoiding market timing’s pitfalls.

How do fiduciary advisors help with long-term investing?
Fiduciary advisors can help investors by creating customized strategies to help ensure investment decisions align with your overall financial goals. At Agemy Financial Strategies, our fiduciary commitment means that every recommendation we provide is made in your best interests, helping you stay on track toward financial security.

Disclaimer: This article is for educational purposes only and does not constitute financial advice. Investing involves risk, and past performance is not indicative of future results. Before making investment decisions, consult with the trusted fiduciary advisors at Agemy Financial Strategies.

January 31, 2025/by Agemy Financial Strategies

Ask an Advisor: Is an HSA Right for Me?

HSA - Health Savings Account, News

Health Savings Accounts (HSAs) have become increasingly popular as a flexible and tax-efficient way to manage healthcare expenses and build savings for the future.

With nearly 38 million HSAs in the United States as of 2024—a figure projected to exceed 43 million by 2027—it’s clear that more people are recognizing the value of this versatile financial tool. But is an HSA the right choice for you?

To help you decide, let’s explore the essentials of HSAs, their advantages and limitations, and the critical factors to weigh when considering how they might fit into your overall financial strategy.

Is an HSA Right for You?

Health Savings Accounts (HSA) offer a range of benefits, but they’re not a one-size-fits-all solution. Whether an HSA aligns with your needs depends on several factors, including your current financial situation, healthcare requirements, and long-term goals. Before opening an HSA, evaluating how it fits into your overall financial and retirement strategy is important.

HSAs are particularly advantageous for those who prioritize saving for future medical expenses, enjoy the tax benefits of contributing, and can manage the higher deductibles of a qualifying health plan. However, if you frequently incur medical costs or have limited savings, the out-of-pocket expenses associated with a high-deductible health plan may outweigh the benefits of an HSA.

By assessing your healthcare usage, income stability, and savings priorities, you can determine whether an HSA is the right choice for you. Let’s explore the key considerations to help guide your decision.

What is a Health Savings Account (HSA)?

A Health Savings Account is a tax-advantaged savings account designed to help individuals with high-deductible health plans (HDHPs) cover qualified medical expenses. Here’s an overview of what makes HSAs a valuable tool for healthcare and financial planning:

Eligibility: To open and contribute to an HSA, you must be enrolled in an HDHP, a health insurance plan with higher deductibles but lower monthly premiums.
Flexibility: Unlike Flexible Spending Accounts (FSAs), HSAs allow unused funds to roll over from year to year, making them an excellent option for long-term savings.
Ownership: You own the account, not your employer. This means you can take it with you if you change jobs or retire, helping ensure your savings remain accessible.
Contribution Limits for 2025: The IRS has set the annual contribution limits at $4,300 for individuals with self-only coverage and $8,550 for family coverage. Additionally, individuals aged 55 and older can make a $1,000 catch-up contribution.

HSAs combine immediate tax savings with the flexibility to save for future medical costs, making them a unique and potentially powerful tool in your financial strategy.

Benefits of an HSA

HSAs offer a unique blend of healthcare and financial advantages, making them beneficial for individuals who are looking to optimize their health coverage and long-term savings. Beyond their well-known tax benefits, HSAs provide opportunities for strategic financial planning and future security.

Triple Tax Advantage

HSAs provide a triple tax benefit differentiating them from other savings accounts. This feature allows account holders to save for medical expenses while helping maximize tax efficiency. Here’s how the three tax benefits work:

Tax-deductible Contributions: Contributions help reduce your taxable income, lowering your overall tax liability.
Tax-free Growth: Funds in your HSA grow tax-free, whether held in a savings account or invested in the market.
Tax-free Withdrawals: When used for qualified medical expenses, withdrawals are tax-free, providing potential significant savings.

Additionally, many HSAs offer investment options, helping account holders grow their savings over time and build a tax-advantaged cushion for future healthcare needs.

Long-term Savings Potential

Because HSA funds roll over indefinitely, they can be a supplemental savings tool for future healthcare expenses, including those incurred during retirement. HSAs can act as supplementary retirement accounts. While they are designed for medical expenses, their flexibility after age 65 allows non-medical withdrawals (taxed as ordinary income). This can help provide retirees with another source of funds, complementing IRAs or 401(k)s.

Flexibility in Usage

HSAs can help cover many medical expenses, from doctor visits and prescription medications to dental and vision care. After age 65, withdrawals for non-medical expenses are taxed like ordinary income, similar to a traditional IRA. HSA funds can be used for qualified medical expenses for your spouse and dependents, even if not covered by your high-deductible health plan. This flexibility makes HSAs valuable for families managing healthcare needs.

Generational Wealth Transfer

While HSAs are primarily for healthcare, they also allow for tax-efficient wealth transfer. If the account holder passes away, the funds can be transferred to a spouse’s HSA without tax consequences, helping ensure the account’s value remains intact for the family.

By combining flexibility, tax advantages, and long-term growth potential, HSAs are more than just a healthcare account—they’re a versatile tool that can help bridge the gap between immediate healthcare needs and future financial security.

Potential Drawbacks of an HSA

While HSAs offer many advantages, they aren’t the right fit for everyone. Understanding their limitations is essential to deciding whether an HSA aligns with your financial and healthcare needs.

Eligibility Limitations

To open and contribute to an HSA, you must be enrolled in a high-deductible health plan (HDHP). These plans often come with higher deductibles that may not suit individuals or families with frequent or significant medical expenses.

Higher Out-of-Pocket Costs

Although HDHPs typically offer lower monthly premiums, their higher deductibles mean you’ll need to cover more out-of-pocket costs before insurance kicks in. This can be a financial strain, particularly if unexpected medical expenses arise.

Investment Volatility

Many HSAs provide investment options that can grow your funds over time. However, like any investment, these options are subject to market fluctuations. There’s no guarantee of returns, and you could potentially lose money depending on market conditions and investment choices.

Strict Withdrawal Rules

HSA funds for non-qualified expenses before age 65 are subject to income tax and a 20% penalty. Adhering to these withdrawal rules is essential to avoid unexpected costs and penalties that could diminish the account’s overall value. Carefully evaluating these potential drawbacks alongside a trusted fiduciary advisor can help you determine whether the benefits of an HSA outweigh its limitations for your situation.

Make the Most of Your HSA With Agemy

A Health Savings Account (HSA) can be a powerful tool for helping you achieve your financial and healthcare goals, but navigating the rules and strategies for maximizing its benefits can be complex. At Agemy Financial Strategies, we aim to give you confidence in your financial future by crafting robust portfolios focused on income and growth.

Our fiduciary advisors can help you integrate your HSA into a personalized financial plan, helping ensure it works seamlessly with your long-term goals. Here’s how we can help:

1. Maximize Contributions with Proper Guidance

Reaching the annual HSA contribution limit is a key step toward helping you maximize tax savings and growing your account. Our advisors can help review your financial situation and recommend a plan to take full advantage of these limits while balancing other savings priorities.

2. Optimize Your Investment Strategy

Many HSAs offer investment options that can help grow your balance over time. However, it can be challenging to understand which investments align with your risk tolerance and financial objectives. Our team can help you develop a tailored investment strategy that balances growth and stability to maximize your HSA’s potential.

3. Incorporate HSAs into Retirement Planning

An HSA isn’t just a short-term savings account—it’s a vital part of a well-rounded retirement strategy. After age 65, your HSA can act as a secondary retirement account, allowing non-medical withdrawals taxed as ordinary income. Our fiduciaries can help you integrate your HSA into a larger retirement plan, helping ensure you’re prepared for rising healthcare costs and other expenses.

4. Leverage Tax Efficiency with Strategic Planning

HSAs offer unique tax advantages, but their full potential is unlocked through careful planning. Our advisors help you optimize contributions, withdrawals, and investments to reduce potential tax burdens and enhance long-term savings.

Final Thoughts

At Agemy Financial Strategies, we understand financial planning is about more than numbers—it’s about creating a secure future tailored to your unique needs. Whether starting with an HSA or looking to incorporate it into a larger financial strategy, we’re here to help you make the most of this powerful tool.

FAQs About HSAs

1. Can I open an HSA if I’m self-employed?

Yes, self-employed individuals can open a Health Savings Account (HSA). The eligibility requirements are as follows:

You must be covered by a high-deductible health plan (HDHP).
Other disqualifying plans, like Medicare, Medicaid, or TRICARE, can’t cover you.
You can’t be claimed as a tax dependent.

2. What happens to my HSA if I change jobs?

Your HSA is portable, meaning you can take it with you when you change jobs. You can continue to use the funds for qualified medical expenses even if you are no longer enrolled in an HDHP.

3. Can I have an HSA and an FSA simultaneously?

HSAs and FSAs are similar in that they help you make qualified health purchases using tax-free funds. But with limited exceptions, you can’t have both. If you want to take advantage of your employer’s flexible spending account, you may be unable to contribute to your HSA.

4. What happens to my HSA if I don’t use all the funds?

Any unused funds in your HSA roll over to the next year, allowing you to continue growing your savings tax-free. There’s no “use it or lose it” rule, making HSAs an excellent tool for long-term savings.

5. Can I use HSA funds for my dependents?

You can use Health Savings Account (HSA) funds to pay for qualified medical expenses for dependents. This includes your spouse, children, and other dependents you claim on your tax return. You can also use HSA funds for dependents claimed by their other parent.

Disclaimer: This blog is for informational purposes only and does not constitute financial, tax, or investment advice. Consult the qualified fiduciary advisors at Agemy Financial Strategies for personalized guidance tailored to your situation.

January 27, 2025/by Agemy Financial Strategies

Five Star Wealth Manager Award Winners

Financial Planning, Investment Management, News, Retirement Income Planning

Why Choose Agemy Financial Strategies?

Your Trusted Fiduciary Financial Advisors and Wealth Managers

Finding a financial advisor who truly has your best interests at heart is no small decision. At Agemy Financial Strategies, we understand the weight of this choice and are here to provide the guidance, education, and expertise you need to confidently navigate your financial journey.

For over 35 years, Agemy Financial Strategies has been dedicated to empowering retirees and pre-retirees through comprehensive services like retirement planning, wealth management, and legacy planning. Our commitment to excellence has earned us the prestigious Five Star Wealth Manager Award for 14 consecutive years, — 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, and now 2024 — a testament to our dedication to client success.

What is the Five Star Wealth Manager Award?

The Five Star Wealth Manager Award, administered by Crescendo Business Services, LLC (dba Five Star Professional), is awarded based on a rigorous evaluation of 10 objective criteria. These include:

Credentialed and actively employed as a registered investment advisor or representative for at least five years.
High client retention rates over one and five years.
Favorable regulatory and complaint history review.
Number of households served and assets managed.
Professional designations and education.

Out of 3,710 Connecticut-area wealth managers considered in 2024, only 282 (8%) met the qualifications for this exclusive recognition. The award is not indicative of future performance but highlights consistent excellence in service, ethics, and dedication to clients.

Meet the Agemy Team: Experience You Can Trust

Andrew A. Agemy, MRFC®

Andrew Agemy has been honored with the Five Star Wealth Manager Award for 14 consecutive years, as seen in Connecticut Magazine, FORTUNE, and more. With over three decades of experience, Andrew is committed to educating his clients through workshops and webinars, ensuring they make informed financial decisions. His A+ rating with the Better Business Bureau and the National Ethics Association underscores his dedication to integrity and excellence.

Andrew’s philosophy is simple: a financially educated retiree is a happy retiree. He takes pride in helping clients build dependable income strategies that ensure peace of mind during retirement.

Daniel J. Agemy, CPM®, RFC®

As a second-generation wealth manager, Daniel Agemy brings over a decade of experience to Agemy Financial Strategies. Specializing in custom retirement plans, Daniel combines a passion for education with innovative strategies to help clients achieve their dream retirements.

A recipient of the Certified Portfolio Manager (CPM®) designation from Columbia University, Daniel is committed to staying ahead of industry trends, ensuring his clients benefit from cutting-edge strategies and solutions.

Why Work With Agemy Financial Strategies?

When you choose Agemy Financial Strategies, you’re partnering with a team that prioritizes:

Education: Empowering you to make informed financial decisions through radio shows and YouTube podcasts, free online resources, events, and more.
Purpose-Driven Investing: Aligning your investments with your personal goals.
Generational Wealth Transfer: Preserving and growing wealth for future generations.
Dependable Income Strategies: Creating “retirement paychecks” that provide stability regardless of market conditions.

Our mission is to give you confidence in your financial future by crafting custom, robust portfolios designed to generate income and growth.

What Sets Us Apart?

Award-Winning Advisors: Andrew and Daniel Agemy are not just experienced; they’re recognized leaders in the industry with a track record of excellence.
Client-Centric Approach: We listen, understand your goals, and tailor strategies that meet your unique needs.
Commitment to Excellence: With 35 years of experience, we’ve helped countless clients achieve financial peace of mind.

Your Financial Journey Starts Here

At Agemy Financial Strategies, we know that your assets are too important to trust with anything less than Five Star excellence. From retirement planning to wealth management, our award-winning team is here to guide you every step of the way.

Take the first step toward financial freedom and security with Agemy Financial Strategies. Visit agemy.com today to schedule your consultation.

Client Testimonials and Success Stories

“Agemy Financial Strategies gave me the confidence to retire early. Their team walked me through every detail, ensuring I had a plan that worked for me.” – A Satisfied Client

“Andrew and Daniel’s commitment to education and personalized service sets them apart. I’ve never felt more informed or secure about my financial future.” – Long-Time Client

Closing Thoughts

Choosing a fiduciary financial advisor is one of the most important decisions you’ll make for your future. At Agemy Financial Strategies, we combine decades of experience with a deep commitment to helping clients thrive. Whether you’re planning for retirement, building generational wealth, or navigating life’s uncertainties, we’re here to provide guidance you can trust.

Let’s make your financial dreams a reality—because your future deserves nothing less than Five Stars.

January 13, 2025/by Agemy Financial Strategies

Bitcoin & Cryptos: Navigating Economic Predictions for 2025

News

Bitcoin reached a historic milestone last month, surpassing $100,000 for the first time after doubling in value last year. Analysts predict that 2025 could usher in another transformative chapter for Bitcoin and other cryptocurrencies as the market cements its place as a dynamic and evolving asset class.

So what’s driving this surge of investor enthusiasm, and why are critics voicing concerns? In this blog, we’ll explore the key factors shaping the cryptocurrency landscape and what they mean for your investment future. Here’s what you need to know.

The State of Cryptocurrency in 2025

Cryptocurrency, a digital or virtual currency secured by cryptography, has emerged as a significant player in the financial landscape. While Bitcoin remains the most well-known, thousands of cryptocurrencies offer unique features and use cases. These digital assets are utilized for online purchases and investments and help enable quick, cost-effective value transfers across borders, often outperforming traditional financial systems in efficiency.

At Agemy Financial Strategies, we foresaw Bitcoin’s potential to make waves in 2025. In our previous blogs and podcasts, we predicted Bitcoin’s ability to help enhance portfolio diversification and deliver substantial growth potential for long-term investors. These predictions have proven accurate, with Bitcoin starting the new year on a strong note. On January 2, 2025, Bitcoin’s price rose by 3%, reaching $97,234.80, and its year-to-date gain approached 4% when factoring in trading activity from January 1, 2025.

We’ve also addressed the delicate balance between the promise of high returns and the challenges posed by volatility and regulatory uncertainties. These insights have been validated as Bitcoin reaches remarkable milestones, becoming an increasingly sought-after asset for savvy investors seeking diversification and innovation in their portfolios.

Cryptocurrency Market Evolution

The broader cryptocurrency market has rallied, as reflected by the CoinDesk 20 Index, which advanced over 3%. Among altcoins, Solana—a leading Ethereum competitor—outpaced the market with gains of nearly 7%. Meanwhile, crypto-related stocks such as Coinbase and MicroStrategy also saw upward momentum, climbing 3.5% each.

This recovery highlights Bitcoin’s resilience and growing appeal as a potential safe-haven asset during periods of systemic financial uncertainty. As economic volatility continues into 2025, Bitcoin’s role as a stabilizing force in diversified portfolios will likely remain a key focus for investors.

Ethereum and Beyond: The Growth of Altcoins

While Bitcoin dominates headlines, altcoins like Ethereum, Solana, and Cardano are revolutionizing industries with utility-focused platforms. Ethereum’s continued upgrades and transition to a proof-of-stake consensus have cemented its role in decentralized finance (DeFi), NFTs, and Web3 technologies. In 2025, expect more innovation in blockchain ecosystems, creating opportunities for diversified investments.

Institutional Adoption Drives Stability

The growing involvement of institutional investors has brought credibility and liquidity to the crypto market. Bitcoin ETFs, spot trading platforms, and custody solutions have helped bridge the gap between traditional finance and digital assets. As hedge funds deepen their engagement, this institutional backing could potentially reduce market volatility and help attract a broader audience.

Economic Predictions for 2025: Key Trends Impacting Crypto

Interest Rate Dynamics

The Federal Reserve’s monetary policy remains a focal point for investors. Fed officials indicated they now expect to cut rates by just a half point in 2025, which would likely mean two rate cuts at their eight policy-setting meetings. That’s down from predicting a full percentage point (or four quarter-point cuts) in their September projections. This environment could increase liquidity in traditional and crypto markets, driving investor interest in risk-on assets like Bitcoin and Ethereum.

During the 2020 rate cuts, Bitcoin experienced a historic bull run driven by increased liquidity and institutional interest. While past performance doesn’t guarantee future results, similar conditions in 2025 could yield potential outcomes. As always, it’s important to consult a fiduciary advisor to see if investing in crypto is the right strategy for you.

Inflation as a Catalyst

Although inflation appears to moderate (2.75%), core inflation pressures may linger, particularly in the energy and housing sectors. For crypto investors, this presents a potential opportunity. Bitcoin’s capped supply of 21 million coins inherently resists inflation, making it an appealing store of value. Argentina’s economic crisis saw citizens increasingly turn to Bitcoin to preserve purchasing power amid skyrocketing inflation. This trend underscores Bitcoin’s utility in inflationary environments, particularly for global investors.

The Role of Geopolitical Events

Geopolitical uncertainty continues to influence global markets. Events such as trade wars, military conflicts, or shifts in international alliances can ripple through financial systems, impacting cryptocurrencies. In 2024, for instance, heightened tensions in Eastern Europe correlated with increased Bitcoin purchases as investors sought decentralized assets. In 2025, similar dynamics could reinforce the role of crypto as a hedge against geopolitical risks. However, investors should also prepare for potential regulatory responses to increased adoption.

How to Strategically Invest in Crypto in 2025

Diversify Across Crypto Assets

While Bitcoin is the cornerstone of many cryptocurrency portfolios, diversifying into altcoins could help enhance your potential returns and mitigate risk. Altcoins often bring unique utilities and opportunities that can help complement Bitcoin’s role as a store of value. For example:

Ethereum: The go-to platform for decentralized finance (DeFi) and non-fungible tokens (NFTs), Ethereum offers unparalleled opportunities for growth within blockchain-based applications.
Polkadot: Designed for interoperability, Polkadot enables seamless communication between blockchains, making it a critical player in the future of decentralized ecosystems.
Chainlink: A leader in blockchain data oracles, Chainlink connects smart contracts with real-world data, helping enhance the functionality of decentralized platforms.

By working with an advisor, you gain the experience needed to help you navigate the complexities of crypto investing while maintaining a balanced approach. Diversifying across crypto assets can help unlock potential opportunities, but having a knowledgeable guide can help ensure those opportunities align with your financial plan.

Stay Ahead of Regulatory Changes

The cryptocurrency regulatory landscape is in constant flux, with governments worldwide refining their approaches to taxation, compliance, and investor protection. In countries like the United States, regulations are becoming more structured, providing clearer guidelines for reporting and compliance. To help navigate these evolving regulations effectively, consider taking these proactive steps:

Consult a Financial Professional: Cryptocurrency transactions involve complex tax implications, including capital gains, reporting requirements, and deductions. Working with a knowledgeable fiduciary advisor can help ensure you comply with applicable laws while optimizing your financial outcomes.
Diversify Across Jurisdictions: Holding crypto assets in countries with favorable regulations can provide additional flexibility and protection. Diversifying your investments geographically can also help mitigate risks associated with sudden regulatory changes in a single jurisdiction.

Hedge with Stablecoins

Stablecoins like USDC and DAI help link the volatile cryptocurrency market and more stable traditional assets. These digital currencies are designed to help maintain a consistent value, often pegged to fiat currencies like the U.S. dollar. Stablecoins can be a financial safe harbor during potential market turbulence, helping investors preserve their capital without fully exiting the crypto space. Integrating stablecoins into your portfolio can help you manage risk and maintain liquidity in an unpredictable market. As always, consult a trusted advisor to help ensure this investment fits your unique needs and goals.

Consider a Dollar-Cost Averaging (DCA) Strategy

A Dollar-Cost Averaging (DCA) approach involves regularly investing a fixed amount in cryptocurrency. This method helps investors manage the emotional challenges of market timing by promoting a steady, consistent investment strategy. DCA is particularly helpful in volatile markets, as it spreads investments over time and helps minimize the risk of making large purchases during price spikes. While it doesn’t eliminate market risk, DCA offers a potentially reliable framework that supports long-term financial planning objectives. Always weigh your options carefully and consult a financial professional for personalized guidance.

Working With the Right Advisor

Navigating the complex and ever-evolving world of cryptocurrency requires in-depth knowledge and experience. While the growth potential is enticing, the risks of volatility, market shifts, and regulatory changes demand careful consideration. Working with a financial professional who understands this landscape is crucial for making informed decisions.

At Agemy Financial Strategies, we have the experience to help you assess whether cryptocurrencies like Bitcoin align with your long-term goals and risk tolerance. Our team can help you integrate digital assets into a diversified and balanced retirement portfolio, helping you capitalize on opportunities while managing potential risks.

Here’s a breakdown of how our experienced advisors can play a crucial role in helping you integrate Bitcoin into your retirement plan:

Risk Assessment: We can evaluate your risk tolerance and financial situation to help determine whether Bitcoin is a suitable addition to your retirement portfolio. We will help you understand your investment choices’ potential risks and rewards.
Asset Allocation: Our fiduciaries will assist you in determining the appropriate allocation of Bitcoin within your overall retirement portfolio, helping you maintain a balanced, diversified approach that aligns with your financial goals.
Tax Implications: Cryptocurrency taxation can be complex, and tax laws can vary from one jurisdiction to another. Agemy Financial Strategies can help you navigate the tax implications of buying, holding, and selling Bitcoin in the context of your retirement plan.
Long-Term Strategy: Crafting a long-term strategy for your retirement is essential. Our dedicated team of fiduciary advisors can help you set realistic goals, review your plan periodically, and make necessary adjustments to your financial well-being in retirement.

As the cryptocurrency market evolves, don’t go it alone. Partnering with a trusted fiduciary advisor can help you navigate this dynamic landscape and maximize what it offers with levelheadedness.

Navigate the Crypto Landscape with Confidence

The cryptocurrency market in 2025 is poised for significant developments shaped by economic trends, regulatory changes, and technological advancements. By staying informed and adopting strategic approaches, investors can capitalize on this evolving asset class while helping mitigate risks.

At Agemy Financial Strategies, we understand the complexities of crypto and traditional investments. Our team is here to help you align your portfolio with your broader financial goals.

Schedule your complimentary consultation today to take the first step toward financial stability and growth in 2025.

FAQs: Bitcoin and Crypto in 2025

Is it too late to invest in Bitcoin?
Not necessarily. While Bitcoin’s price has increased significantly since its inception, its long-term potential as a store of value and hedge against inflation remains intact. Timing your entry with strategies like DCA can help mitigate risks.

How does crypto compare to traditional investments in 2025?
Cryptocurrencies offer diversification and high-growth potential but come with higher volatility. Balancing crypto with traditional assets like bonds and equities can help create a more resilient portfolio.

What are the risks of investing in altcoins?
Altcoins often carry greater volatility and less liquidity than Bitcoin. Thorough research, risk management, and working alongside a trusted financial professional are essential when exploring altcoin investments.

Will crypto regulations stifle innovation?
While some regulations may limit speculative activities, clear frameworks could help enhance market stability and attract institutional investors, fostering long-term growth.

How do I secure my crypto holdings?
Using hardware wallets, enabling two-factor authentication, and avoiding centralized exchanges for long-term storage are critical steps to help protect your investments.

Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are inherently volatile and can carry significant risks. Always consult the qualified fiduciary advisors at Agemy Financial Strategies before making investment decisions.

January 7, 2025/by Agemy Financial Strategies

2025 Adjustments for Estate, Gift, and GST Tax Exemptions

Estate Planning, News, Tax Planning

Tax laws are shifting, and for individuals committed to preserving their wealth, staying ahead of these changes is more important than ever.

With new adjustments to estate, gift, and generation-skipping transfer (GST) tax exemptions on the horizon, your decisions could have a lasting impact on your financial legacy. For high-net-worth individuals (HNWIs), understanding these updates isn’t just beneficial—it provides a decisive strategic advantage.

In this blog, we’ll break down the key changes and explore how Agemy Financial Strategies can assist you in navigating the complexities of these taxes, turning challenges into opportunities to help secure your future.

What Are Estate, Gift, and Generation-Skipping Transfer Taxes?

The federal government employs estate, gift, and generation-skipping transfer (GST) taxes to help ensure wealth transfers are subject to taxation. In turn, this limits the accumulation of untaxed wealth across individuals and generations. Understanding how these taxes operate and interact is essential for crafting a comprehensive wealth preservation strategy. Let’s explore each tax in detail:

1. Estate Tax

The estate tax is a levy imposed on the total value of an individual’s estate that exceeds the federal exemption threshold at the time of their death. This tax applies to assets such as real estate, investments, cash, and other valuables included in the estate. The federal estate tax doesn’t apply unless you hit a certain exemption amount.

The exemption amount for people who pass away in 2025 is $13.99 million (up from $13.6 million last year).
Married couples can expect their exemption to be $27.98 million (up from $27.22 million last year).

Proper estate planning can help mitigate this tax burden, allowing more wealth to be passed on to your heirs.

2. Gift Tax

The gift tax applies to transferring money or assets during your lifetime that exceeds the annual or lifetime exemption limits. The annual gift tax exclusion sets the amount you can give each recipient without impacting your lifetime exemption. The IRS has announced an increase in the annual gift tax exclusion for 2025:

Individuals: You can gift up to $19,000 per recipient, a $1,000 increase from the 2024 limit.
Married Couples: Couples can gift up to $38,000 per recipient without triggering gift tax reporting requirements.

Maximizing annual gift exclusions helps reduce your taxable estate while providing financial support to loved ones. However, exceeding these limits without careful planning can lead to unnecessary tax liabilities. Working alongside a fiduciary can help you integrate gifting strategies into your broader estate plan.

3. Generation-Skipping Transfer (GST) Tax

The Generation-Skipping Transfer (GST) tax is designed to prevent individuals from avoiding taxation by skipping over a generation and transferring wealth directly to beneficiaries who are at least two generations younger. It is an additional tax on top of the federal gift or estate tax. For the tax year 2025, the GST tax exemption amount is set at $13.99 million per individual.

Transfers to these younger-generation beneficiaries are only tax-free up to the GST tax exemption limit. Any amount exceeding this exemption is subject to the GST tax, which, like the estate tax, has a top rate of 40%. This tax most commonly affects:

Direct Transfers: Gifts or inheritances given directly to grandchildren or other younger-generation individuals.
Trusts: Trusts established for the benefit of grandchildren or great-grandchildren, especially when structured to avoid intermediate taxation on the parent generation.

A fiduciary can help you by providing tailored advice for your estate plan accounts. With proactive planning and guidance, you can better protect your financial legacy and help ensure it benefits your family for years.

Why Understanding These Taxes Matters

Proper planning for estate, gift, and GST taxes is essential to help protect your financial legacy. Failing to account for these taxes can result in significant financial losses for your heirs and complicate wealth transfer strategies. For example:

Overlooking Gift Tax Exclusions: Missing annual or lifetime gift tax exclusions can unintentionally trigger higher tax liabilities.
Missing the Current Exemptions: Failing to take advantage of the higher exemptions before they are reduced in 2026 could expose your estate to substantial federal taxes.
Mismanaging GST Tax Liabilities: Poor planning could undermine the long-term benefits of trusts and other wealth transfer strategies to skip generations.

Working with a fiduciary can help you have the guidance needed to navigate the nuances of these taxes. A trusted fiduciary can help you maximize available exemptions and create a plan to help preserve your wealth for future generations.

Key Changes to Tax Exemptions for 2025

The Tax Cuts and Jobs Act (TCJA) of 2017 significantly increased the exemptions for estate, gift, and GST tax. However, these enhancements are set to sunset at the end of 2025, potentially altering how wealth can be transferred tax-efficiently. Here’s what to expect:

Post-2025 Adjustments

The lifetime estate and gift tax exemptions are scheduled to be cut in half after 2025 to approximately $7 million per individual (adjusted for inflation).
Without action, gifts or estate transfers exceeding these reduced limits could face federal taxes at rates as high as 40%.

If you have a large estate, taking advantage of the higher exemptions in 2025 can help reduce your tax liabilities and preserve wealth for future generations. Early planning is essential to avoid the financial burden of potential reductions.

State Estate Taxes: Another Layer to Consider

In addition to federal estate taxes, many states impose their own estate or inheritance taxes, often with lower exemption thresholds. For residents of states like Connecticut, where state-level estate taxes can be significant, careful planning is crucial to help avoid unexpected tax liabilities.

The current Connecticut estate tax exemption is $13.61, and the flat tax rate is 12%. Any taxable gifts or estates exceeding this exemption amount will be subject to a 12% tax. Thus, it is vital for Connecticut residents to integrate state tax considerations into their overall estate planning strategy.

The absence of a state estate tax offers a significant advantage for Colorado residents. Without an additional layer of taxation, residents can pass on their wealth to loved ones without incurring state-level estate taxes. This benefit particularly appeals to retirees seeking to preserve their legacy and help maximize the financial resources available to their families.

With dedicated offices in Connecticut and Colorado, Agemy Financial Strategies has extensive experience helping residents navigate these state-specific tax laws. Whether navigating Connecticut’s estate tax thresholds or taking advantage of Colorado’s tax benefits, our team helps protect your financial legacy for future generations.

How Agemy Financial Strategies Can Help

The upcoming changes to estate, gift, and GST tax exemptions present a valuable opportunity to help optimize your financial legacy and minimize future tax burdens for your heirs. However, navigating these complex tax structures requires skilled guidance and thoughtful planning. At Agemy Financial Strategies, we help simplify financial complexities, equipping you with the tools and knowledge to make confident, informed decisions about your wealth. Here’s how we can help:

Tailored Estate Planning: We can design personalized estate plans that align with your unique goals, helping ensure your wealth transitions smoothly and tax-efficiently.
Proactive Gifting Strategies: Our team will guide you in leveraging exemptions, avoiding common pitfalls, and making tax-savvy decisions.
Trust Design and Management: Whether you’re setting up a trust or optimizing an existing one, we provide solutions to help maximize benefits for you and your heirs.
Holistic Financial Advice: Estate planning works best when integrated with your broader financial goals. We offer comprehensive advice to help ensure all aspects of your financial life are aligned.
Staying Ahead of Legislative Changes: Tax laws change frequently, and we keep you informed, adapting strategies as needed.

Preparing for the Future: Start Today

The adjustments to estate, gift, and generation-skipping tax exemptions represent a pivotal moment for estate planning. With potential tax savings at stake, proactive planning in 2025 and beyond is more important than ever.

Whether you’re seeking to preserve wealth for future generations or minimize tax liabilities, the key is working with a knowledgeable advisor who understands your needs. Agemy Financial Strategies is here to assist you in navigating these changes and helping secure your financial legacy.

Frequently Asked Questions (FAQs)

How will these exemptions change in 2026?

Unless new legislation is passed, the exemptions will revert to $5 million per individual (indexed for inflation) on January 1, 2026, which is expected to be approximately $7 million per individual.

What Happens If You Exceed the Annual Limit?

Gifts exceeding the annual exclusion are deducted from your lifetime gift and estate tax exemption. If your total lifetime gifts surpass the federal exemption threshold, the remaining amount may be subject to federal gift taxes, which are taxed at a maximum rate of 40%.

How can I take advantage of the current exemptions?

The higher exemptions in 2025 can be used to make large lifetime gifts, establish trusts, or utilize other tax-efficient wealth transfer strategies. Consulting a fiduciary advisor can help ensure your plan is effective and compliant.

What is a Spousal Lifetime Access Trust (SLAT)?

A SLAT is an irrevocable trust that allows one spouse to gift assets to the other while retaining indirect access to the assets. It is a popular tool for utilizing the higher gift exemptions before they are reduced.

How do state-level estate taxes affect my plan?

Some states impose their own estate or inheritance taxes, with exemption thresholds often lower than federal limits. A comprehensive estate plan should account for both federal and state tax implications.

How does Agemy Financial Strategies help with these taxes?

Agemy Financial Strategies provides personalized estate planning services, including wealth analysis, trust creation, and tax-efficient gifting strategies. We help clients navigate complex tax laws and align their plans with long-term goals.

How do I get started with estate planning?

Start by scheduling a consultation with Agemy Financial Strategies. We’ll help you by reviewing your financial situation, discussing your goals, and designing a tailored estate plan to meet your needs. Visit us today to get started.

Disclaimer: The information provided in this blog is for educational purposes only and should not be considered specific investment, tax, legal, or financial advice. Agemy Financial Strategies does not guarantee results, and past performance does not indicate future results. Tax laws are subject to change, and any strategies discussed should be reviewed in the context of current legislation and individual circumstances.

December 23, 2024/by Agemy Financial Strategies

Is Crypto Right for Your Retirement Portfolio?

Cryptocurrency Investing, News

As Bitcoin and other cryptocurrencies continue to gain mainstream attention, more Americans are considering the role of digital assets in their retirement portfolios.

The volatile nature of cryptocurrencies, combined with their potential for substantial gains, has piqued the interest of investors seeking alternative ways to secure their financial future. In this blog, we’ll explore the intersection of Bitcoin and retirement and discuss how a financial advisor can be a valuable resource in helping you make informed decisions. Here’s what you should know.

What is Cryptocurrency?

Cryptocurrency is a digital or virtual currency that relies on cryptography for security. During the first half of 2023, Bitcoin (BTC) and various other cryptocurrencies have rebounded following significant losses experienced in 2022. Nevertheless, the prolonged “crypto winter” (which some experts say is now over) has revealed vulnerabilities within the digital currency landscape, such as excessive risk-taking, the promotion of illegal securities, and even fraudulent activities.

Unlike traditional currencies issued and regulated by governments*, cryptocurrencies operate on blockchain decentralized technology. This technology helps provide transparency and immutability of transactions. (*The sale of cryptocurrency is generally only regulated if the sale (i) constitutes the sale of a security under state or federal law, or (ii) is considered money transmission under state law or conduct otherwise making the person a money services business (“MSB”) under federal law.)

One of the most well-known cryptocurrencies is Bitcoin, but thousands of others have unique features and use cases. Investors can use cryptocurrencies for various purposes, including online purchases and investment, and to transfer value across borders quickly and with lower transaction fees than traditional financial systems.

Close to 44% of U.S. adults who’ve started saving for retirement say they have invested part of their retirement savings in cryptocurrency. Nearly half of these people indicated they had invested a “big” part of their retirement funds in crypto. It’s essential to recognize that cryptocurrencies also come with volatility and regulatory considerations that users must be aware of.

Why is Crypto an Appealing Investment for Retirees

Since its inception in 2009, the pioneering cryptocurrency, Bitcoin, has exhibited extraordinary growth. Starting from virtually nothing, it surged to reach peaks exceeding $60,000 per Bitcoin in 2023, attracting the attention of both individual and institutional investors. The idea of using Bitcoin as a potential retirement asset has gained traction for several reasons:

Diversification: Traditional retirement portfolios often include stocks, bonds, and real estate. Adding Bitcoin to the mix can provide diversification, as cryptocurrencies tend to have a low correlation with traditional assets, which has the potential to reduce portfolio risk.
Hedge Against Inflation: Many investors view Bitcoin as a hedge against inflation, similar to gold. With central banks worldwide injecting stimulus money into economies, concerns about the devaluation of fiat currencies have grown. Bitcoin’s fixed supply (limited to 21 million coins) can protect your wealth from currency devaluation.
Potential for High Returns: Bitcoin’s price history has been marked by significant volatility but has also seen substantial long-term gains.

Some investors hope to capitalize on this growth potential to boost their retirement savings. However, it’s important to use caution as digital assets can be risky investments. Consult with a financial advisor experienced in Crypto to help you align cryptocurrency investments with your unique retirement goals and risk tolerance.

Risk vs. Reward

Cryptocurrency has generated a lot of buzz in recent years, with some investors reaping substantial profits. However, it’s crucial to understand that investing in crypto is not without its risks, and it may not be the right choice for everyone.

One of the most significant concerns with cryptocurrency is its extreme price volatility. Prices can skyrocket one day and plummet the next. Its volatility is often driven by factors like market sentiment, regulatory developments, or technological advancements. This can lead to significant gains but also substantial losses.

Since the cryptocurrency market is relatively new, it lacks the comprehensive regulation seen in traditional financial markets. This means that investors have fewer protections. In fact, hackers stole $400 million of crypto in the first three months of 2023. Security professionals celebrated that number because it’s 70% less than what was stolen in the first three months of 2022.

Assessing your risk tolerance is a pivotal step when considering cryptocurrency investments, especially during retirement. Making ill-informed decisions in the crypto market could potentially jeopardize your hard-earned nest egg. However, working with the right financial advisor can help you understand your risk tolerance and explore the best investments based on your unique needs and financial goals.

How a Financial Advisor Can Help

While Bitcoin may have its appeal, it’s important to remember that it is a highly speculative and risky asset. But with great risk comes the potential for great returns.

“If you invest 2% of your savings and lose it, those savings can eventually be replaced. But if you invest 2% with a 10X return, it’s a game changer for your golden years…” said Daniel J. Agemy, CPM®, RFC®, Chief Investment Officer at Agemy Financial Strategies. With over a decade of portfolio management under his belt, Daniel is well-versed in the alternative ways of helping retirees and pre-retirees generate income streams that last throughout their retirement years.

Daniel continues, “As a fiduciary, I believe that seeking guidance for investment advice is essential because it means we are not just committed to your financial success; we are legally bound to always put your interests first, providing you with personalized and trustworthy support on your financial journey.”

For more valuable insights from the investing world, including cryptocurrency investing, Daniel and his father, Andrew A. Agemy, MRFC®, Founder and CEO
Investment Advisor at Agemy co-hosts the wildly popular radio show and YouTube podcast Financial Strategies, which airs every weekend in Connecticut and Colorado and is available wherever you listen to your favorite podcasts.

Advice You Can Trust

At Agemy Financial Strategies, we want you to know that we are committed to helping you achieve your retirement goals.

Here’s a breakdown of how our experienced advisors can play a crucial role in helping you integrate Bitcoin into your retirement plan:

Risk Assessment: We can evaluate your risk tolerance and financial situation to help determine whether Bitcoin is a suitable addition to your retirement portfolio. We will help you understand the potential risks and rewards in your investment choices.
Asset Allocation: Our fiduciaries will assist you in determining the appropriate allocation of Bitcoin within your overall retirement portfolio; helping you maintain a balanced, diversified approach that aligns with your financial goals.
Tax Implications: Cryptocurrency taxation can be complex, and tax laws can vary from one jurisdiction to another. Agemy Financial Strategies can help you navigate the tax implications of buying, holding, and selling Bitcoin in the context of your retirement plan.
Long-Term Strategy: Crafting a long-term strategy for your retirement is essential. Our dedicated team of fiduciary advisors can help you set realistic goals, review your plan periodically, and make necessary adjustments to your financial well-being in retirement.

The path to wealth accumulation is marked by a commitment to slow and steady progress, and the realm of cryptocurrency remains shrouded in uncertainty. Could cryptocurrency emerge as a more mainstream investment option in the future? That possibility exists. However, having a skilled financial advisor by your side can help ensure that you navigate this dynamic landscape with levelheadedness.

Final Thoughts

Bitcoin’s potential as a retirement asset is a growing interest, but it’s important to approach it with caution and careful planning. At Agemy Financial Strategies, we are dedicated to helping clients navigate the intricacies of planning for retirement to help ensure you never outlive your savings. Our fiduciary advisors can be a valuable resource in helping you navigate the cryptocurrency landscape, assess the risks, and integrate Bitcoin into your retirement strategy to align with your financial goals and risk tolerance.

If you’re ready to explore the world of cryptocurrency investing, contact us today to set up your complimentary consultation here.

Disclaimer: This content is for educational purposes only and should not be considered financial or investment advice. Please consult with the fiduciary advisors at Agemy Financial Strategies before making any investment decisions.

December 20, 2024/by Agemy Financial Strategies

REITs vs. Direct Property Ownership: Pros and Cons for Investors

News, Real Estate

Real estate has long been a cornerstone of wealth-building, offering opportunities for steady income, diversification, and long-term growth. For those approaching retirement, it’s not just about whether to include real estate in your portfolio—it’s about choosing the right approach to suit your goals and lifestyle.

Deciding what to do with yourself in the period between Christmas and the New Year can feel confusing for us all. More unsettling? The daunting decision between Real Estate Investment Trusts (REITs) and direct property ownership! While the festivities take a quick break, use your time off to research each option, as each has its own benefits and challenges, making it essential to understand how they align with your financial plans.

This blog dives into the pros and cons of both strategies, helping you make informed decisions and position your real estate investments for success in retirement.

What Are REITs?

Real Estate Investment Trusts (REITs) own, operate, or finance income-generating real estate. They pool funds from multiple investors, allowing shareholders to own a portion of large-scale properties without directly managing them. REITs are traded on public stock exchanges, making them an accessible and liquid investment vehicle.

More than 45% of American households own REITs, nearly double the estimate from two decades ago. They can be a good fit if you want the diversification benefits of real estate without the commitment and responsibilities of directly owning property. To better understand how REITs work, let’s explore the three main types available to investors, each with unique features and benefits:

Equity REITs: These REITs focus on owning and managing properties. Some examples include apartment complexes, office buildings, and shopping malls. Investors have the potential to earn income through rental revenue.
Mortgage REITs: Investing in mortgages and mortgage-backed securities has the potential to generate income from interest payments.
Hybrid REITs: These combine the strategies of equity and mortgage REITs, offering potential income from rent and interest.

Now that we know more about what REITs entail let’s look at the pros and cons.

Pros of REITs

Liquidity

One of the most significant benefits of REITs is their high liquidity. Since REIT shares are traded on stock exchanges, investors can quickly buy or sell them, unlike physical real estate transactions, which can take weeks or months. This liquidity is particularly advantageous for investors needing immediate access to funds without being locked into long-term real estate ownership.

Diversification

REITs allow investors to spread their exposure across various properties, sectors, and geographies. For example, a single REIT may include assets like shopping malls, apartment complexes, healthcare facilities, and industrial warehouses. This built-in diversification can help reduce the risk of potential loss that could occur if an individual property or sector underperforms. It’s an efficient way to participate in the real estate market without the concentration risk of owning one or two properties.

Accessibility

REITs offer a low barrier to entry compared to direct property ownership. Instead of needing tens or hundreds of thousands of dollars for a down payment on a property, investors can gain exposure to real estate markets with the cost of a single REIT share. This accessibility can make REITs a practical choice for small-scale investors or those just starting to diversify their portfolios into real estate.

Cons of REITs

Market Volatility

Since REITs are traded on stock exchanges, they are subject to the same market volatility as other publicly traded securities. Their values can fluctuate based on economic conditions, interest rates, or changes in investor sentiment, regardless of the underlying real estate performance. This volatility can be challenging for investors seeking stability or those uncomfortable with the stock market’s swings.

Limited Control

Investing in REITs means relinquishing decision-making power to the REIT’s management team. Investors cannot control which properties the REIT buys, sells, or develops. This lack of control can be a drawback for those who prefer a hands-on approach to managing their investments or want to focus on specific property types or locations.

Tax Implications

While REITs often pay attractive dividends, these payouts are typically taxed as ordinary income rather than benefiting from the lower tax rates associated with qualified dividends or long-term capital gains. This can result in a higher tax burden for investors, particularly those in higher tax brackets. For tax efficiency, REITs may be better suited for tax-advantaged accounts like IRAs or 401(k)s.

What Is Direct Property Ownership?

Direct property ownership involves purchasing and owning physical real estate, such as residential properties, commercial spaces, or undeveloped land. Investors earn income by leasing the property or profiting from its appreciation over time. This approach requires hands-on involvement or the hiring of property management services.

Unlike REITs, direct ownership gives investors full control over property management and decision-making. However, it comes with responsibilities like tenant management, property upkeep, and navigating real estate market fluctuations.

Let’s look deeper at the pros and cons of direct property ownership.

Pros of Direct Property Ownership

Building Equity

One of the primary benefits of direct property ownership is the ability to build equity over time. As you pay down the mortgage, your ownership stake in the property increases. This creates a valuable asset that can be leveraged for future investments or financial needs. Unlike other investments, real estate allows you to combine equity growth with income generation, such as rental payments, making it a powerful wealth-building tool.

Potential for Appreciation

Real estate has a historical tendency to appreciate over time, offering investors the potential for substantial capital gains. Investors can benefit from increasing property values by holding long-term property long-term, particularly in growing markets or areas with rising demand. This potential for growth makes real estate a valuable component of a long-term investment strategy.

Inflation Hedge

Real estate is often considered a natural hedge against inflation because property values and rental income typically rise over time, outpacing it. This ability to preserve and potentially increase purchasing power during inflationary periods makes real estate a reliable store of value. This characteristic makes direct property ownership particularly attractive for investors seeking long-term stability.

Cons of Direct Property Ownership

Illiquidity

One of the most significant drawbacks of owning physical property is its lack of liquidity. Unlike REITs or stocks, selling a property can take several months and involves high transaction costs, including real estate agent commissions, closing fees, and potential repairs or upgrades to prepare the property for sale. This lack of liquidity can be a drawback for retirees who need quick access to funds.

Management Burden

Direct property ownership requires active involvement, making it far from a passive investment. Owners are responsible for property maintenance, tenant relations, and compliance with local laws and regulations. Even when hiring a property manager, the owner is ultimately accountable for decisions and outcomes, which can still demand time and effort.

Market Dependency

The value and income real estate generates are heavily influenced by local market conditions, economic trends, and interest rate fluctuations. For instance, an economic downturn or oversupply of rental properties in a specific area can lead to declining property values and rental income. Similarly, rising interest rates can make mortgages more expensive, reducing affordability and demand. These factors can create unpredictable fluctuations in income and value, requiring property owners to carefully research and monitor market conditions to mitigate risks.

Key Considerations for Investors

Choosing between REITs and direct property ownership depends on your financial goals, time horizon, risk tolerance, and tax strategy. Each option has unique strengths and potential drawbacks; understanding these factors can help you make an informed decision.

Financial Goals: If you’re seeking consistent income with minimal effort, REITs may be the better choice as they provide potential dividends and require no active management. On the other hand, direct property ownership may be ideal for those prioritizing control over their investment and potential long-term property appreciation.
Time Horizon: REITs’ liquidity and ease of access can benefit investors nearing retirement. In contrast, younger investors with a longer time horizon may benefit from the potential appreciation and equity growth associated with owning property directly. Because every investor’s journey is different, consulting a fiduciary advisor is crucial to help your decisions align with your financial goals.
Risk Tolerance: REITs inherently offer diversification, spreading risk across multiple properties or sectors, helping reduce the impact of underperformance in any single asset. Direct property ownership, however, concentrates risk into fewer assets, which could be advantageous for investors willing to take on more responsibility for higher potential returns.
Tax Strategy: Tax advantages can vary significantly between the two options. REITs may have limited tax benefits compared to direct ownership, which can offer depreciation and other deductions. Consulting an advisor or tax professional can be essential to help optimize your investment strategy based on your tax situation.

To make this decision easier, we’ve outlined the key differences between REITs and direct property ownership in the table below. Use it as a quick reference to compare their features side by side:

Partner With a Fiduciary Advisor

Investing in real estate during retirement can pose complexities, especially for those managing significant portfolios. If you’re looking for a fiduciary advisor with extensive experience in real estate investments, Agemy Financial Strategies is here to help.

Fiduciary advisors are legally obligated to prioritize your best interests, delivering impartial advice and recommendations aligned with your financial goals. Our seasoned professionals can help you identify opportunities and make well-informed decisions tailored to your unique needs and objectives.

Our advisors are adept at seamlessly integrating your real estate investments into your investment portfolio, helping to ensure they remain balanced and diversified. To explore our full-service offerings, see here.

Final Thoughts

REITs and direct property ownership offer unique advantages, making the right choice dependent on your financial goals, risk tolerance, and time horizon. At Agemy Financial Strategies, we help investors navigate the complexities of real estate investments for their financial portfolios. For over 30 years, our team of fiduciaries has guided clients in exploring opportunities in REITs and other investment vehicles to build resilient, diversified portfolios.

Contact us today to learn how we can help you achieve your financial aspirations and make informed decisions about real estate investments.

Disclaimer: This blog is intended for educational purposes only and should not be considered financial, tax, or legal advice. The information provided is general and may not apply to your financial situation. Investment decisions should always be based on your unique circumstances, goals, and risk tolerance. We recommend consulting a qualified financial advisor, such as our team at Agemy Financial Strategies, for personalized guidance tailored to your needs. Past performance does not indicate future results, and all investments carry inherent risks, including potential loss.

December 20, 2024/by Agemy Financial Strategies

I’m High-Net-Worth. When Should I Start Estate Planning?

Estate Planning, News

If you have substantial wealth, the need for estate planning becomes even more significant due to the complexity of your financial situation. But when should you start estate planning if you fall into the HNWI category?

Estate planning is crucial for managing your wealth and protecting your assets so that they are distributed according to your wishes after your passing. In this blog, we will explore the importance of early estate planning for high-net-worth individuals and the key considerations to remember. Here’s what you need to know…

The Importance of Early Estate Planning

Estate planning is a solid guide on how you wish your assets to be distributed after passing. Whether your goal is to establish a lasting legacy or secure the financial well-being of your loved ones, starting estate planning early helps to ensure that your intentions are documented and legally binding.

A recent survey showed 73% of respondents had no estate plan. What’s even more surprising is that among respondents aged 75 and older, 72% were found to be without an estate plan. While it can be an uncomfortable topic to think about and discuss, postponing estate planning for too long can lead to potential complications and difficulties.

Let’s look deeper at some of the benefits of estate planning for high-net-worth individuals.

The Benefits of Establishing A Trust

As a HNWI, establishing a trust can be a powerful tool for achieving various financial goals and protecting your assets. Trusts offer flexibility, control, and numerous benefits, making them popular among individuals with substantial wealth.

There are various types of trusts, each designed to serve different purposes. Common types include revocable living trusts, irrevocable trusts, charitable trusts, and special needs trusts. Trusts can help shield your assets from creditors, lawsuits, and other threats. High-net-worth individuals can benefit from using irrevocable trusts for asset protection and estate tax planning.

Some trusts allow you to serve as the trustee, maintaining control while enjoying the benefits of asset protection and tax planning. The federal estate tax ranges from 18% to 40% and generally only applies to assets over $12.92 million in 2023 or $13.61 million in 2024. It’s important to consult with a financial advisor who can help you navigate the complexities of trusts to preserve, protect, and distribute your wealth according to your wishes.

Selecting Trustees and Beneficiaries

Estate planning transcends the mere allocation of assets; it involves pivotal decisions regarding the inheritors of your wealth. For high-net-worth individuals, the meticulous selection of trustees and beneficiaries is paramount in crafting a robust estate plan.

Beneficiaries, slated to inherit your assets upon your passing, can encompass a range of individuals or entities, from beloved family members and friends to charitable organizations close to your heart.

Trustees, on the other hand, assume the pivotal role of overseeing and executing the distribution of assets in alignment with your meticulously outlined estate plan. Their role is instrumental in ensuring the proper management of your wealth.

By thoughtfully handpicking both beneficiaries and trustees, you lay the foundation for effectively realizing your estate plan’s objectives. Furthermore, this strategic selection significantly reduces the likelihood of conflicts and delays, assuring you that your assets will be disbursed precisely as you intended.

Minimizing Tax Liabilities

Reducing taxes on what you leave behind is a common estate-planning goal. Estate planning is about protecting your loved ones from potential IRS tax burdens. Essential to estate planning is transferring assets to heirs to create the smallest possible tax burden. Here are some key points to consider:

Asset Distribution: An estate plan allows you to specify how you want your assets, including property, investments, and personal belongings, to be distributed among your beneficiaries. Without a clear plan, your assets might be subject to intestate laws, which can lead to unintended outcomes.
Business Succession Planning: If you own a business, an estate plan can outline how it will be managed or transferred to successors, providing its continuity and your family’s financial future.

Life is constantly changing, and so should your estate plan. Changes in your family structure, financial situation, or legal regulations might necessitate updates to your plan to guarantee it remains aligned with your goals. A fiduciary advisor can help you with any changes that life may bring and help you adapt your plan accordingly.

Regularly Review and Update Your Plan

Estate planning can be challenging — especially for those with a high net worth. You want to protect your family, assets, and business and gain peace of mind knowing you’re prepared and in control. Therefore, it’s essential to regularly review and update your estate plan to confirm it remains aligned with your goals and takes advantage of any new tax-saving opportunities.

An experienced fiduciary advisor can provide valuable advice and guidance regarding estate planning. At Agemy Financial Strategies, our team of skilled fiduciaries excels in assisting clients with creating robust estate plans. We are committed to providing our clients with the highest level of service, and we will work with you every step of the way to confirm that your estate plan needs are taken care of.

Last Thoughts

Estate planning is not just about wealth preservation; it’s about leaving a lasting legacy that reflects your values and priorities. Working with professionals to establish trust is essential to help guarantee your wishes are met, and your assets are protected.

At Agemy Financial Strategies, you can rest assured knowing that your financial affairs are in capable hands. If you want to learn more about how trusts can benefit your estate planning needs, schedule a complimentary strategy session with us today.

December 15, 2024/by Agemy Financial Strategies

Is Your Retirement at Risk? 5 Key Threats You Should Know

News, Retirement Planning

Planning for retirement is a complex journey, with numerous factors influencing your financial security. While a single issue may not derail your plans, a combination of common yet often overlooked risks can significantly impact your retirement outlook.

A recent study found that nearly half of American households could run out of money in retirement if they cease working at 65. Understanding these hidden threats and taking proactive steps to mitigate them can mean the difference between a secure, fulfilling retirement and one filled with financial stress.

In this blog, we’ll uncover five major risks to your retirement that you won’t want to ignore. We will share how tips for strategic planning can help you navigate these challenges, allowing you to retire on your terms with more confidence and peace of mind.

1. Poor Asset Allocation: Finding the Right Balance

Improper asset allocation is one of the biggest risks to retirement savings. Many assume retirement demands a dramatic shift to conservative investments like bonds or cash equivalents. While reducing risk is wise, going too conservative can also hinder your savings growth, leaving you vulnerable to inflation.

A recent study was conducted to gain insight into investors’ alternative investments in workplace retirement savings plans. The study revealed solid interest in private assets despite a significant knowledge gap. Among those who expressed interest in private investments, most would take a measured approach with their retirement plan allocations (Schroders):

52% would allocate less than 10% to private assets.
34% would commit between 10-15%.
8% would invest more than 15%.
6% are unsure how much they would allocate to private assets.

The ideal asset mix depends on individual goals, time horizon, and risk tolerance. Partnering with a fiduciary advisor can help you find the optimal balance and craft a plan that adapts to market conditions and personal changes. This approach can help keep your portfolio resilient and aligned with long-term goals.

2. Running Into Unexpected Expenses

When unexpected expenses arise, they can significantly affect your long-term financial health, particularly in retirement. These unplanned costs can quickly deplete your retirement savings, whether it’s a medical emergency, family support, or sudden home repairs. Nearly 6 in 10 (59%) U.S. adults feel unprepared for financial emergencies, indicating a widespread need for better financial planning.

This highlights the importance of a well-structured emergency fund. An emergency fund acts as a financial buffer, allowing you to manage surprise expenses without jeopardizing your retirement accounts. Building and maintaining this fund requires careful planning. With professional support, you can establish a cushion that shields your retirement savings from unplanned withdrawals, helping ensure your long-term financial security stays intact.

3. Being Part of the Sandwich Generation

The “Sandwich Generation” refers to adults simultaneously supporting aging parents and children, a responsibility that can strain financial resources and delay retirement goals. Juggling these family obligations often means taking on additional healthcare, education, and living expenses, leaving less room for retirement savings.

In fact, 90% of Sandwich Generation adults report making a lifestyle change or financial decision because of caregiving responsibilities. Setting boundaries and establishing a structured financial plan is essential for those in this position. Prioritizing retirement savings while supporting family members can help safeguard long-term financial security.

A fiduciary advisor can provide valuable support by developing a balanced plan tailored to your situation. This personalized guidance can make a significant difference in helping maintain financial stability for both your loved ones and your future.

4. Long-Term Care Expenses: Protecting Against Rising Healthcare Costs

Long-term care remains a significant concern for retirees, with the U.S. Department of Health and Human Services estimating that 70% of people turning 65 will need some form of long-term care in their lifetime. Unfortunately, Medicare provides limited coverage for these services, and long-term care insurance can be costly. Planning for these potential expenses is crucial to helping safeguard your retirement savings.

The 2024 American Association for Long-Term Care Insurance (AALTCI) annual Price Index survey shows that the average annual premium for a $165,000 benefit policy without inflation protection is $950 for a single 55-year-old male and $1,500 for a single 55-year-old female. For a 55-year-old couple, the average combined annual premium reaches $2,080. These figures highlight the financial impact of securing long-term care coverage and the importance of including these costs in retirement planning.

A fiduciary advisor can help you navigate various funding options for long-term care, such as health savings accounts (HSAs), hybrid insurance policies, and setting aside dedicated assets within your retirement plan. With a fiduciary’s guidance, you’ll have access to strategies designed in your best interest, helping ensure these costs won’t drain your retirement funds and that you’re better prepared for the future.

5. Ignoring the Impact of Inflation

One of the most common yet underestimated threats to retirement savings is inflation. Over time, inflation erodes the purchasing power of your money, meaning that the same dollar buys less and less each year. For example, if inflation averages just 3% annually, in 20 years, you’ll need nearly twice as much money to maintain the same standard of living. For retirees, this steady cost increase can severely strain savings, particularly when living on a fixed income.

Ignoring inflation’s impact on retirement planning can lead to a financial shortfall when it matters most. Understanding the long-term impact and incorporating strategies to help protect your purchasing power is essential. Working alongside a fiduciary can help you build a portfolio that includes inflation-resistant assets aimed at outpacing inflation over time. By planning and adjusting your portfolio as needed, you can retain the ability to meet rising costs without compromising your financial security in retirement.

Planning for a Secure Retirement with Agemy Financial Strategies

A secure retirement doesn’t happen by chance; it requires proactive planning and a clear understanding of the risks that lie ahead. Andrew Agemy, Owner and CEO of Agemy Financial Strategies, emphasizes the importance of a client-focused approach. “Our focus is on serving our clients with an educational process and listening with our hearts, not just our ears. This empowers our clients to make and realize their own solid financial decisions and allows them to remain in control.”

Here is how our team can help you navigate these challenges with confidence:

Customized Plans: Every individual has unique retirement goals and concerns. We work closely with you to develop a plan tailored to your financial situation.
Comprehensive Risk Management: From asset allocation to healthcare costs, we address each aspect of retirement to help ensure you’re prepared for potential risks.
Ongoing Support: Retirement planning is an evolving journey. As market conditions and personal circumstances change, we adjust your strategy to align with your goals.

With Agemy Financial Strategies by your side, you can build a retirement plan designed to empower you and support a financially secure future.

Final Thoughts

Understanding and addressing these five critical retirement risks can make a significant difference in securing a comfortable, worry-free future. By taking proactive steps to help protect your savings and working with a knowledgeable fiduciary advisor, you can be better prepared to navigate unexpected challenges and achieve your retirement goals.

At Agemy Financial Strategies, we’re committed to helping you build a retirement plan that aligns with your vision and financial needs. With our personalized approach, you can plan confidently, knowing you’re well-prepared for the future.

Frequently Asked Questions

Q: How can I be sure my retirement plan is on track?
A: Regularly reviewing your retirement plan is essential to staying on course. At Agemy Financial Strategies, we offer ongoing support and periodic reviews to help your plan adapt to changes in market conditions, tax laws, and your personal financial situation. These reviews help you stay aligned with your long-term goals.

Q: What if I don’t know how much I’ll need for retirement?
A: Determining your retirement income needs is a common challenge. Our team at Agemy Financial Strategies helps you estimate these needs by examining your current expenses, desired lifestyle, and potential future costs like healthcare and long-term care. This process gives you a clearer picture of the savings required to maintain your lifestyle.

Q: How do you approach healthcare and long-term care costs?

A: Healthcare and long-term care expenses can be significant in retirement. We explore various options with you, including health savings accounts (HSAs), long-term care insurance, and retirement assets earmarked for medical needs. Planning for these costs in advance helps reduce their impact on your savings.

Q: How does Agemy Financial Strategies help manage inflation risks?

A: Inflation can erode the purchasing power of your savings over time. To combat this, we build inflation-resistant elements into your portfolio, such as stocks, bonds, and other investments that aim to outpace inflation. This approach helps protect your wealth and maintain your standard of living in retirement.

Q: What is the advantage of working with a fiduciary advisor?

A: As fiduciary advisors, we are legally and ethically committed to putting your best interests first. This means that all our recommendations are based solely on what’s best for you, with no conflicts of interest. Our goal is to provide transparent, objective guidance to help you achieve a secure and fulfilling retirement.

Disclaimer: The information provided in this blog is for educational purposes only and should not be taken as specific retirement or investment advice. Retirement and investment strategies should be tailored to each individual’s financial situation, goals, and risk tolerance. Before making any changes to your retirement investments, consult our qualified advisors to ensure these decisions align with your personal retirement objectives.

December 13, 2024/by Agemy Financial Strategies

The Financial Burden of Caregiving

How to Prepare Financially for Caregiving

Protecting Your Financial Future

Planning for the Future with Agemy Financial Strategies

Frequently Asked Questions (FAQ)

The Allure and Risk of Timing the Market

Why Time in the Market Matters

Key Risks of Market Timing

The Power of Compounding

The Market Rewards Patience

Reducing Risk with a Long-Term Strategy

A Fiduciary’s Perspective on Long-Term Wealth Growth

Final Thoughts

FAQ: Timing vs. Time in the Market

Is an HSA Right for You?

What is a Health Savings Account (HSA)?

Benefits of an HSA

Potential Drawbacks of an HSA

Make the Most of Your HSA With Agemy

Final Thoughts

FAQs About HSAs

1. Can I open an HSA if I’m self-employed?

Why Choose Agemy Financial Strategies?

What is the Five Star Wealth Manager Award?

Meet the Agemy Team: Experience You Can Trust

Andrew A. Agemy, MRFC®

Daniel J. Agemy, CPM®, RFC®

Why Work With Agemy Financial Strategies?

What Sets Us Apart?

Your Financial Journey Starts Here

Client Testimonials and Success Stories

Closing Thoughts

The State of Cryptocurrency in 2025

Economic Predictions for 2025: Key Trends Impacting Crypto

How to Strategically Invest in Crypto in 2025

Working With the Right Advisor

Navigate the Crypto Landscape with Confidence

FAQs: Bitcoin and Crypto in 2025

What Are Estate, Gift, and Generation-Skipping Transfer Taxes?

Why Understanding These Taxes Matters

Key Changes to Tax Exemptions for 2025

State Estate Taxes: Another Layer to Consider

How Agemy Financial Strategies Can Help

Preparing for the Future: Start Today

Frequently Asked Questions (FAQs)

What is Cryptocurrency?

Why is Crypto an Appealing Investment for Retirees

Risk vs. Reward

How a Financial Advisor Can Help

Advice You Can Trust

Final Thoughts

What Are REITs?

Pros of REITs

Cons of REITs

What Is Direct Property Ownership?

Pros of Direct Property Ownership

Cons of Direct Property Ownership

Key Considerations for Investors

Partner With a Fiduciary Advisor

Final Thoughts

The Importance of Early Estate Planning

The Benefits of Establishing A Trust

Selecting Trustees and Beneficiaries

Minimizing Tax Liabilities

Regularly Review and Update Your Plan

Last Thoughts

1. Poor Asset Allocation: Finding the Right Balance

2. Running Into Unexpected Expenses

3. Being Part of the Sandwich Generation

4. Long-Term Care Expenses: Protecting Against Rising Healthcare Costs

5. Ignoring the Impact of Inflation

Planning for a Secure Retirement with Agemy Financial Strategies

Final Thoughts

Frequently Asked Questions

Disclaimer

Quick Links

Contact Info