Community First Investment Group

Why does it make sense to have an Advisor as a part of your small business's retirement plan? 1. Ensure your plan design matches your desired outcomes. Having an "off the rack" 401k plan may be just the right fit. But if your company is unique in any way, you might feel restricted by the standard 401k. Reviewing your companies' goals and areas in need of attention may require a more customized plan for your needs. Keep in mind that updating the plan document without being able to properly communicate the incentives and benefits to your employees won't truly make a difference. 2. Engage your team. Having regular plan meetings can help to refresh your team's understanding of the plan and allow a forum for FAQ's. This also serves as an additional resource by making sure your employees know who their Advisor is and gives you the ability to more effectively delegate some of the plan questions your team has to the experts. 3. Personal Financial Wellness. Providing your team with access to a Financial Advisor can improve their overall financial health. This is one of the number one concerns for the average employee who spends several hours per month on the clock working on or worrying about their personal finances. What's holding you back from working with an Advisor on your business's retirement plan? #401k #retirementplan #smallbusiness

Have you started investing for your future? Let's plan together ?? Visit https://lnkd.in/gTU9SXGd for more information ??

All you need to do is be a good saver and the rest will take care of itself...FALSE! I had a great conversation with a client this past week about a concern they were having with their finances. They told me they have always been great at saving (a good skill to have), but they felt as though they were hording money instead of using it to their advantage. After reviewing their goals and how they currently had their money set aside I was inclined to agree with them. So how does one go about fixing this? Step 1: Identify what you are trying to accomplish. If you can't articulate what you are hoping to accomplish, talking with your Advisor and/or Spouse can be a great place to start. Often talking through where you would like to be in the future can help resolve this indecision. Step 2: Review what type of accounts your funds are in now and determine if the features of these accounts support the targets you have set. For instance, if you have determined you need $3,000 a month to cover your basic fixed expenses using a High Yield Savings Account or HYSA may be a great vehicle to park 3 - 6 months of your fixed expenses. I personally prefer to label these accounts if possible, with your bank to ensure it is obvious what the funds are for. Step 3: Don't overfill your buckets. Knowing that you want 3 - 6 months of fixed expenses saved is the start. Knowing when to stop filling the account because you have reached your target will take you to the next level. Once you have defined what the purpose/size of the account should be, don't fall into the trap of continuing to put funds in an already "full" account. Step 4: Redirect funds once your targets have been reached. If you have a "full" account, it's time to turn your attention to your next priority. Sometimes this can be a challenge. Engaging your Advisor is a good idea here as well to sort through your options and determine what is your next best step to take. Do you use cashflow planning as a part of your financial plan? #familyfinances #financialplanning #cashflow

October is Cybersecurity awareness month, and LPL is offering a webinar to learn more about best practices and scams ?? The live event will be hosted on October 30th at 2 pm E.T. and feature panelists such as Mike Terry, Norman Luc, Olivia Lack, Anthony Tran, and Amanda Ordemann ?? To register, visit https://lnkd.in/g7MYNS8M ??

I've had several conversations with the people we serve to discuss tax implications of different financial moves they can make. While I have no doubt that most cringe at the mere mention of "taxes", it is one of the most important topics to consider when making investment decisions. To Roth or not to Roth, should I sell the stock that is up 100% in my non-retirement account or hold until day 366, should I look for ways to take advantage of tax credits or deductions? The list goes on. There are potentially big changes coming in 2026 when the Tax Cuts and Jobs Act is set to sunset. If Congress does nothing this will bring our federal tax rates back to 2017 levels. The big question is what does this mean for your short term and long-term financial strategy? The reality is this is a different story for all of us but if you aren't sure what this could mean for you, it's a good time to get with your Financial Advisor and CPA to discuss your strategy! How big a role does tax planning have in your financial strategy? #taxplanning #financialplanning #retirementplanning

PSA: if you are concerned about a market drop, especially before you are preparing to retire, please speak with a trusted Advisor before you take any steps! This past week I met with a referral who had experienced some previous trauma during the financial crisis and was concerned about the upcoming election in regard to its potential effects on the market. They decided to take their 401k balance and distribute it to their bank account for safekeeping. While it won't lose principal in the bank, there are a slew of other problems that this creates. 1. Taxes - for many, their 401k accounts are their largest accounts. A distribution to your bank account IS a taxable event. Imagine having to pay taxes all in one year on your entire life's savings. ?? 2. Lack of Investment Options - regardless of how extensive your 401k options are they will always have more options for investing and growing your money to combat inflation than your local bank account. ?? 3. Withholdings - when you make a distribution like this the default/requirement for many custodians is to withhold 20% minimum for federal taxes. These funds can be hard to get back depending on whether or not you change your mind about the distribution. ?? The good news. We were able to work with this individual to identify the opportunity for a 60-day rollover. This is when you have distributed funds from your qualified retirement accounts (401k, 403b, IRA) to yourself but then put the funds back into another qualified account. As the name indicates, this is TIME SENSATIVE. In most cases we don't recommend using this as your method to rollover due to the risk of incurring penalties and the clunky nature of getting the withholding returned. What would you do if you were concerned about a major market drop right before retirement? #financialplanning #retirementplanning #familyfinances

When working with younger professionals, I find a common concern they have is that they aren't saving/investing enough. This tends to bring with it some general anxiety. While too much anxiety isn't healthy, striving to take steps towards financial security and having this on your mind is actually a positive. Here are some examples of ways young professionals are building a strong financial foundation without realizing it. 1. They are focused on paying off high interest debt. Primarily credit cards and personal loans debt that is revolving and interest rates nearing 30% will devastate your finances if they aren't tackled swiftly. 2. They are investing in their education. Going to/back to school to increase your earning potential is one of the best investments you can make! Keep in mind that a cost benefit analysis should be done on this investment to ensure that there is a strong track record of tangible value in the degree that is being pursued. 3. They are contributing to their savings accounts. One of the primary questions I ask before moving forward to set up an investment account is to determine if someone has ample liquid funds. You never know when an emergency may crop up and one of the quickest ways to torpedo your investments is to pay early withdrawal penalties and pull money in a down market. What are some other ways that young professionals can invest in their financial futures that aren't contributing to their retirement accounts? #financialplanning #familyfinances #youngprofessionals

Why does the average American need access to a Financial Advisor if they aren't even maximizing the match of their workplace retirement plan? I've seen some giving push back on there being a tangible need for Financial Advisors if someone doesn't have large amounts of wealth. A conversation I had recently is a great example of why I believe the middle-class continues to need guidance. I spoke with a new client recently who requested help initiating a small rollover. As we completed the request, he mentioned that he also had a Life Insurance policy that he had purchased several decades ago that he would be interested in taking money from, perhaps to invest more with us since he had a positive experience with the rollover. Upon making some calls to his insurance provider we found that he had been paying into a Universal Life policy for over 30 years. The coverage was substantial, and he even had an option B provision which allows the cash value to be included as a part of the death benefit. While he did have money that was available for distribution to him as a loan, we gathered details about the policy and found that he would be paying 8% interest in order to access these funds. His monthly premium payments are quite large, and his retirement assets are limited. So, what is the lesson here? Many middle-class American's find themselves being sold products and aren't' often provided any solutions. I'm not anti-life insurance. I wouldn't even call myself anti-permanent life insurance. But what I can't justify is selling someone a product without looking at the big picture to ensure that it gives them a good chance to be secure. Advisors don't just "earn our keep" by helping people meet their investment goals. We pride ourselves on guiding people through the proverbial minefield of financial products, mistakes and get rich quick schemes. #financialplanning #familyfinances #lifeinsurance

A huge thank you to Nate, our LPL Financial Advisor, for sharing advice and insights on investment options for organization staff at a nonprofit learning series! ?? To learn more about our team or schedule a meeting, visit https://lnkd.in/gnnD6g5g ??

Yesterday I was able to spend a little time with a college sophomore who wanted to learn more about a potential career in Financial Advising. While I think we can all agree that taking 20 minutes in the middle of our day to talk about our career may not feel like the best use of time, I like to take these opportunities to share my journey and experiences with those that are genuinely searching. We discussed the nuts and bolts of what our responsibilities are for clients, the services we offer and even the tests that they would need to pass in order to begin practicing. But the most important thing that we covered was determining what brings them purpose. There are hard days, months and years in every field of work but keeping your focus on what your purpose is can help you get through the valley and reach the next summit. How would you describe your purpose and does your job/business help you fulfill it? #businessnetworking #financialadvising #purposedriven