Elevation Financial

?? Financial scams are on the rise ?? The FTC reports that around $10 billion has been lost to scams in 2023 - a record high. Key red flags to watch for: ????♂? Unsolicited contact (calls, emails, texts, social media) ????♂? "Too good to be true" offers ????♂? Fear-based "problems" requiring immediate action Common scam tactics: ?? High returns, low investment promises ?? Fake lottery wins or inheritances ?? "Critical" tech support issues ?? False arrest warrants ?? Stay vigilant Verify all unexpected communications independently. Remember: If it sounds too good to be true, it probably is.

It's wild how messy and "loose" our financial system is sometimes. You would expect the rules to be automatically enforced for things like: ?? Retirement account limits ?? IRA income eligibility limits ?? Tax penalties ?? Investment basis But often we're expected to track all these things ourselves. And if we don't, we can get hit later on with penalties when the IRS catches up with us. It's important to pay attention and work with professionals for support ????

Ever made a purchase and regretted it the next day? That’s “buyer’s remorse.” A quick tip: give yourself 24 hours to think it over before big buys.

If you don't have great options for retirement accounts, don't be afraid to use a taxable brokerage account! We've been trained to think that 401(k) and IRA accounts are all we can use for retirement. Brokerage accounts can be used for retirement and often have more advantages.

Umbrella insurance is probably the most boring insurance in the history of insurance. But accidents happen, leaving you exposed to liability. Those with high net worth and high-earning professions are especially vulnerable. And it's way more affordable than most people think.

?? As a business owner, clean bookkeeping isn't just about numbers—it's your financial compass. ? Accurate financial decisions ? Stress-free tax seasons ? Clear view of cash flow ? Easier access to funding Don't let messy bookkeeping drag your business momentum down. Clean books are critical for a healthy business.

?? Let's talk retirement income strategies... There are many ways to generate income from your investments in retirement. Three of the most popular are: ?? Systematic Withdrawals ?? Bucket Strategy ??? Guardrails Approach Systematic Withdrawals (Total Return with Rebalancing) ? This approach involves regularly withdrawing a fixed percentage from your portfolio ? Typically starts with a 4% withdrawal rate, adjusted annually for inflation ? Portfolio is rebalanced to maintain target asset allocation ? Pros: Simple to implement, potentially higher returns ? Cons: Sequence of returns risk, potential for running out of money Bucket Strategy ? Divides assets into short-term (cash), medium-term (bonds), and long-term (stocks) buckets ? Near-term expenses covered by cash bucket, replenished from other buckets ? Provides psychological comfort during market volatility ? Pros: Intuitive, helps manage emotions during downturns ? Cons: Can be complex to manage, potential cash drag Guardrails Approach ? Sets upper and lower withdrawal rate limits based on portfolio performance ? Increases withdrawals in good years, decreases in poor years ? Aims to balance spending flexibility with longevity protection ? Pros: Adapts to market conditions, potentially higher lifetime withdrawals ? Cons: Variable income, requires discipline to reduce spending when needed → Each strategy has its merits, and the best choice depends on your unique financial situation, risk tolerance, and retirement goals.

Financial news loves to highlight negative information. On any given day in the stock market, your odds of a positive return are just 53%, a little better than a coin flip. With the market experiencing a "down day" half the time, it's no wonder the media is frequently doom and gloom. If you’re in financial news, and you have to report on the markets every day, then about 1/2 of your days come with the stock market trading lower that day. And reading “Stocks Fall” 47% of the time you check on the markets can be very stressful, even when these down days are often occurring during bull markets (in which the market is generally trending upwards as measured by total return). All of it makes for a lot of investor angst. It’s no wonder why many people will believe the stock market is down during periods when it’s actually up. Remember, a "down day" is not the same thing as total return.

There are lots of opinions and debates about Roth vs pre-tax. You can drive yourself crazy ?? trying to perfectly optimize taxes. One simple way to think about it can be to set a "lifetime tax rate" target. For example, let's say you want your lifetime tax rate to be no more than 24%. If you are in or under the 24% tax bracket, you might choose to contribute to Roth accounts. However, if you move into the 32% tax bracket, you might switch to pre-tax accounts to lower your taxable income and push yourself back into the 24% tax bracket. The Roth money helps you avoid the risk of future RMDs pushing you into higher tax brackets in the future (and Roth conversions can be used later in lower income years). The pre-tax money helps you lower your tax bracket today. Use both strategically.

Not everything that matters can be measured. Not everything that can be measured matters.