You may be surprised to learn that you can plant a garden on as little as one-fourth of an acre that supplies a good portion of your family’s needs.

For those without any land or living in an apartment, consider microgreen kits or tower gardens. With the right lighting, you can even grow produce in a garage.

Still not convinced to start planting? Here are 3 benefits of having a garden.

Benefit 1: Better Health

Produce at the supermarket generally contains preservatives or other protections that allow for longer shelf life. Often, it comes from far distances out of state.

The downside is that produce at the store loses nutrients that could otherwise be protected if it were sourced closer to home.

Additionally, you have no control over the use of pesticides or GMO crops.

In contrast, growing your own produce gives you more control. Your food will contain all the naturally occurring nutrients. Some people even like the taste of their own home-grown fruits and vegetables better.

Outside gardens might also provide other health benefits such as exercise, sunshine, and fresh air.

Benefit 2: A New Hobby

Caring for a garden involves work, but it can be rewarding for many people.

• Choosing which seeds and coupling them with the right soil, fertilizer, time to sow, and time to harvest can be a satisfying challenge.
• Watching small seeds sprout into full-grown plants.
• Harvesting fruit or vegetables for your dinner table (or to share with your neighbor).
• Try a variety of veggies in your salad or outright new recipes.
• Growing herbs that can help soothe pain or lighten up your mood.

Gardening can grow on you as a new hobby.

Benefit 3: Your Home Garden Might Lower Your Grocery Bill

Of course, this was the main reason for your question. While the savings at first might not seem like much, consider that as you grow out your garden, you also pay less at the supermarket. Also, if you grow your own supply of your favorite vegetables, you have less to worry about in seasons of supply chain shortages.

There can be many benefits of growing a garden beyond lowering your grocery bill.

Do some research. Talk to friends and neighbors who are expert gardeners. Visit a nursery or garden store and maybe even take classes on gardening. Start small and expand your horizons as you get more comfortable. Enjoy and share the fruits of your home garden.

Free Consultation

The post My Grocery Bill Keeps Going Up. Any Suggestions? appeared first on AWM.

It’s understandable to feel financially obligated to your kids when they need a little extra help, but you also want them to become financially independent. Monetary support can provide a short-term lifeline, but I have also seen this approach backfire.

1. Paying Their Bills Will Cost You.

Don’t feel selfish for focusing on your retirement savings. Every dollar you give away adds up. The more you give to your kids, the less you will have for retirement. This could put a huge financial burden on your kids if/when you run out of money in retirement.

In addition, there can also be an emotional cost. Money can strain any relationship, especially with family. Your adult kids might feel guilty and inadequate when they ask for help. As time goes on, you may begin to feel taken advantage of or underappreciated.

The truth is, supporting your kids financially could be doing more damage than good.

2. Set Them Up for Success.

It’s never too late to teach your kids good money management.

Start with an open conversation. Explain that it’s time for them to take on more financial responsibility and it’s time for you to plan for retirement.

Next, help them establish a budget and brainstorms ideas to cut their expenses and keep costs low. Come up with a plan to ween them off of your household payroll in the coming months.

Once they’re on their feet, talk about managing debt, planning for taxes, and investing their savings.

3. Find Other Ways to Be Supportive.

You have so much more to offer than money.

Financial difficulties can be emotionally taxing. Sometimes all our kids need is a listening ear, a shoulder to lean on, and some encouragement from us.

There are so many ways to support your kids that don’t require a cash handout. Maybe you have an old car you aren’t using, you could pitch in with babysitting, or help them find the best deals when they need to make a large purchase.

Be proud of what you’ve accomplished. Raising kids is no easy feat. You’ve done well, and you can still do better, starting today!

It’s not too late to help your adult kids grow into financially independent and thriving adults.

Let’s Get Started

The post Helping Your (Adult) Kids Become Financially Independent appeared first on AWM.

Host Thanksgiving on a Smart Budget

Hosts can feel pressured to entertain their guests with the most lavish Thanksgiving meal. Truth is, you don’t need to break the bank to deliver.

Thanksgiving is a potluck-style holiday at heart, so when your friends and family offer to bring something, say yes! It’s also okay to pick and choose which sides will appear on your table. Simplify your menu!

Track All Your Spending

Whether you’re into spreadsheets, money apps, or opening a designated holiday account with your local bank, track every purchase you make. Your budget is useless unless you actually track where that money is going. Don’t spend more than you are able to.

Set up a “Secret Santa” Gift Exchange

This is a great option for any gathering size. You can use websites like elfster.com to set up a gift exchange and invite friends and family to join. Each member who accepts your invitation will be assigned one person to buy a gift for.

Be Creative with Holiday Traditions

We can all agree that traditions are what make the holidays so special.  Yet, they can also be a huge financial burden. If your traditions include traveling, paying for a special attraction, or surprising your kids with extravagant gifts, you might find yourself going way over budget in the name of family.

Traditions don’t have to be expensive to be memorable. Here are some cheaper alternatives:

• Touring neighborhood Christmas lights
• Watching Christmas movies at home with hot chocolate
• Caroling
• Attending a high school production—like a play or choir performance
• Sledding/building snowmen
• Sugar cookie decorating
• Building the perfect gingerbread house
• Check out local deals on Groupon or LivingSocial

Know When to Stop

When you’ve finished your list and checked it twice, it’s time to stop shopping. No more stops at the mall to “see what they have.”

If you know your shopping itch won’t go away, try to spread out your shopping as much as you can. By planning purchases and stopping when you’re done, you can save yourself from shocking credit card bills.

The holidays should be full of fun and joy, but don’t break your bank getting there. Take care of your finances and plan smartly.

Start the Conversation

The post How to Enjoy the Holidays Without Breaking the Bank appeared first on AWM.

Somewhere sunny, on a beach? Your dream house on a piece of land?

If you love vibrant cultures and authentic food, retiring abroad might be what makes your retirement years golden. Before you go, it’s important to plan and research thoroughly. Otherwise, you might end up paying some over-looked expenses:

1. Paying for what you leave behind.

If you’re planning to keep a house in the U.S., consider the upkeep and maintenance costs. You’ll either have to hire a professional service to mow the lawn and clean out the gutters or purchase a ticket to fly back and do it yourself.

2. Steep utility bills.

On the surface, living abroad can appear to be significantly cheaper than in the U.S. If you don’t research the local prices for Wi-Fi, fuel, internet, and natural gas, you might be surprised to spend more on utilities than you are used to.

3. Paying for English.

If you don’t speak the common language, don’t be surprised to pay premiums. You could easily be marked as a “tourist” or be charged more for an English-speaking plumber.

4. Not knowing their systems.

As an American citizen, you know exactly how and when to renew your driver’s license. Other countries can have complicated immigration and residency requirements that can be costly. Especially if you need to hire a translator.

5. International health insurance.

Medicare won’t cover health care costs outside of the U.S. You may end up buying an international health insurance plan or factor in out-of-pocket health care expenses.

6. Exchange rate fluctuations.

Don’t assume exchange rates will always work in your favor. Even if the rates are good now, they can and will change over time. Think about how a gradual increase over 10 years could impact your day-to-day- budgeting.

7. Spending on extras.

Planning an annual trip to the states is a great way to keep in touch with your kids and grandkids. But once a year might not be enough. If a loved one’s health changes suddenly, you could find yourself in the U.S. for weeks or months to help out.

Missing certain foods or electronics could also lead to higher bills. It’s easier than ever to find what you’re looking for abroad, but they often come with big importation taxes and shipping expenses (i.e. Peanut Butter can double in price).

Retiring abroad might be just the thing you’re looking for to happily live out the rest of your non-working days. But I urge you to do some research and work with a trusted fiduciary financial advisor before you go.

Let’s Talk

The post 7 Overlooked Costs of Retiring Abroad appeared first on AWM.

Can you relate?

It’s not easy to make financial resolutions, but with the right plan, Donna (and you) can rest easy about the future.

1. Up Your Retirement Contributions
   

   In 2020, Donna can contribute more than ever to her retirement accounts. Because she’s still working, Donna can stock away $19,500. If you are expecting a raise, bonus, or can sock away a little extra, consider upping your contributions this year. Donna knows, even the smallest increase can have a large impact down the road.

    

2. Make Catch-Up 401(k) Contributions
   

   Since Donna is over 50, she can play “catch-up” with her retirement savings. This means she can contribute an extra $6,500 to her 401(k), maxing out at $26,000 in 2020. If your birthday falls anytime in 2020, you can start making these contributions as early as January 1, 2020. Think of it as a birthday present to yourself 😉

    

3. Max Out Your IRA Contributions

   As long as Donna or her husband are earning income, she can put $6,000 into a traditional or Roth IRA, assuming she meets the income threshold. Donna can contribute up to $7,000 since she’s over 50. Certain situations allow for backdoor Roth contributions if you can’t deduct your IRA contributions.

    

4. Start A Health Savings Account (HSA)

   Did you know HSAs have triple tax-free benefits? Donna can take tax deductions when funding the plan, her money will grow tax-free, and it’s not taxed on withdrawals when used for health care expenses after the age of 65. You can contribute $3,550 as a single or $7,100 as a family.

    

5. Design a Comprehensive Financial Plan 

   Donna has real, tangible ways she can work to prepare for her future, but she’s not done yet. She wants to meet with her financial planner and make sure she’s on track to meet her retirement goals. The ups and downs of the market are so much easier to follow when you have a solid plan to follow.

With the right planning and professional help, Donna can take advantage of various retirement plans and stow away a substantial amount each year for her future. Sounds like a pretty good New Year’s Resolution to me.

Talk to your financial advisor or accountant. Let’s make 2020 the best year yet!

Ask a Question

The post How can I make meaningful resolutions that will help my family? appeared first on AWM.

It goes against our personal finance philosophy to take money out of a retirement account before retirement, but under the right circumstances, it could be an option to consider. Here are some pros and cons of a 401(k) loan:

Pros of Borrowing from Your 401(k)

• No credit check. – If your credit score is not ideal, you might have a hard time getting a loan. As long as your 401(k) allows for loans, you should be able to borrow without a credit check to a bank.
• Convenience. – Borrowing from your 401(k) usually requires less paperwork and is a quicker process than standard or personal loans.
• Borrowing at a competitive interest rate – and then repaying yourself. – The rate you pay is dependent on the terms of your 401(k) plan, which is typically lower than the rate you will pay on a personal loan or credit card. Plus, the interest you pay will be to yourself instead of a finance company or bank.

Cons of Borrowing from Your 401(k)

• Opportunity cost of not being fully invested. – When the market rises, the money you borrowed might miss out on potentially higher returns. Many people who borrow from themselves also stop contributing. Think how much you could lose if you stop contributing to your principal.
• Risk of job loss. – A 401(k) loan can be treated as a distribution. This loan is subject to taxes and a 10% penalty if you are under the age of 59 ½. If you were to switch jobs or get laid off, the balance you borrowed becomes immediately due. If you repay it back within 60 days, you will face tax consequences.
• Warning about your financial health. – Borrowing from your retirement account(s) to fund your large expenses could be a red flag or sign of overspending. While you might be saving money by paying off your high-interest credit-card balances, you might end up doing more harm than good to yourself. If you do not address your underlying spending problems, you risk reloading the credit cards with high balances and paying high-interest rates again.

Closing Thoughts

We seldom advise our clients to borrow from their 401(k) plan.  Yet, we also understand that under the right circumstances, it might be an appropriate option.

I encourage you to seek out professional help before making this decision on your own. We want you to make the best decisions for your situation and future. You can schedule a second opinion with us to make sure you are avoiding large penalties, have a solid understanding of any potential taxes, and that you are making the best financial decisions possible.

Let’s Get Acquainted

The post The Pros and Cons of Borrowing from Your 401(k) appeared first on AWM.

Even if your home was recently constructed, there might still be opportunities to save energy.

You can find ways to save on your utility bills by performing this easy energy-saving audit and fixing any trouble spot you find.

Step 1: Do-It-Yourself Audit

Performing an audit on your home can help to determine where your house is losing energy and where you can save. A hired professional can do this assessment for you, or you can follow this checklist for a quick do-it-yourself audit:

• Locate air leaks: take a walk around your house and feel for drafts. Find out where warm/cold air is escaping, or entering your home.
• Check ventilation: examine your air filters. Do they need to be replaced? Dirty air filters prevent airflow and take more energy.
• Check insulation: check your crawl space and ceiling for loose, missing or falling insulation.
• Inspect heating and cooling equipment: How often do you forget to turn your thermostat down or up? When was the last time your furnace and/or A/C was inspected?
• Check lighting: walk through and inspect your lighting features. Are they on too often? Are your bulbs sucking energy?
• Appliances and electronics: take a close look at what’s plugged into your walls.

Step 2: Implement Findings

Now that you’ve inspected your home thoroughly, it’s time to make some changes.

• Seal air leaks: install door sweeps to block out drafts and make sure your windows are shut completely.
• Replace your air filters: when your filter is dirty and needs a change, it slows down the air flow and costs more to generate.
• Install a programmable thermostat: this device will automatically lower or raise your room temperatures at night and monitor them during the day. Maintaining your furnace and A/C can help them run more efficiently as well.
• Change your lightbulbs: use modern LED or smart bulbs and install timers to save on energy.
• Get used to unplugging appliances: if you’re not using it, unplug it or turn it off

Step 3: Don’t Forget Your Car

Lots of people spend more money maintaining their car(s) than their home. Here are a few ways you can save:

• Keep your car tuned: things like oil changes and general engine maintenance can save you more in the long run.
• Check your tire pressure.
• Eliminate weight: it might be time to empty your trunk.
• Drive sensibly: no excessive idling, aggressing driving or speeding.

While there are many more things you can do to save on energy costs, for both your house and car, we encourage to consult with a financial professional. They might have more effective ways to save additional money. Be diligent as improving can get costly and don’t forget to look at how long some improvements will take to recoup your investments.

We encourage all of our clients to be frugal, smart and live a purposeful life.

Let’s Connect

The post How to Save Money: Energy Efficiency appeared first on AWM.