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.

Happy New Year! I hope you made some wonderful memories in 2021.

The beginning of the year is a prime time to focus on understanding your money.

Are you ready to set some new financial resolutions? I encourage all of my clients to design a personalized, comprehensive Financial Plan to guide them towards their goals.

Here are a few tips to get you started:

Every Adult Should Consider Having a Financial Plan.

From my experience, families that take the time to structure a plan tend to:

1. Be more in control of their finances.
2. Have more confidence in their ability to reach goals.
3. Save more for retirement.

You might be surprised how these could impact the success of your retirement.

What Should Your Plan Include?

It’s important that your plan is comprehensive and includes:

1. Short- and Long-Term Savings Goals
2. Tax Planning
3. Investment Strategies
4. Insurance Planning (health, life, and long-term care)

Remember, your goals don’t have to be strictly business. Maybe you want to save up for a new TV or a nice family vacation. Either way, these goals should be reflected in your plan.

What Does That Look Like for Various Age Groups?

Young adults in their 20s-30s will probably focus on paying off student debt, building an emergency fund, and possibly saving up for a down payment.

Most 40-50-year-olds prioritize paying for their kids’ college, eliminating debt, and ramping up their retirement savings.

The pre-retirement crowd (usually 60+), tends to focus on maxing retirement contributions, paying off their mortgage, arranging for long-term care insurance, and preparing for a successful retirement.

How to Get Started:

Meet with a Fiduciary Financial Advisor who specializes in planning and understands tax implications. It’s important to find an advisor who will watch out for your best interest.

Together, you can design a plan that entails your personal dreams and goals and keeps you accountable.

Start working on your plan now. The sooner you start, the sooner you’ll see your plan come to fruition.

The post What Should I Include in My New Year’s Resolution? 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.

These lessons can span from savings to being charitable, or even understanding market value.

I always encourage my clients to engage their kids and grandkids in age-appropriate dialogue that can help pave the way for responsible savings and spending habits down the road.

1. Saving For A Rainy Day.

Challenging kids to eat through their candy slowly is good for their health but also gives them a chance to hone their budgeting skills.

It could be a tough sell at first, but their self-control will quickly pay off when they still have half their haul in mid-November and their friends have nothing left but empty wrappers.
 

2. Sharing With Others.

Your kids might not have deep pockets to support a local charity, but candy is a commodity that can be easily shared.

Some nonprofits redistribute donated candy to U.S. troops, service members, wounded heroes, and veterans. Homeless shelters and senior centers generally accept unopened candy as well.
 

3. Dealing With Taxation.

We all know that death and taxes are inevitable. This might be a good opportunity to help explain to your kids a lesson on taxes with a “mom or dad tax” on their loot (candy).

Help them understand that this tax will help support the cost of shared resources. Just keep it simple, and prepare for some pushback.
 

4. Understanding Market Value.

This might be my favorite. Kids quickly learn that different candies are worth different values. After a fun night of trick-or-treating, kids tend to haggle among their friends and siblings. They create a market without even knowing it.

Some candies are more coveted than others, hiking up the trading price. This is a great opportunity to explain market value and how quantity is not always better quality.
 

The best way to teach our kids to is to lead by example and include them in real-life conversations. Show them what it means to be charitable and the importance of saving.

Encouraging good money management habits now will set them up for a successful future.

The post How to Teach Your Kids About Money This Halloween appeared first on AWM.

This makes August a stellar time to work on your finances. My advice? Don’t put it off until December.

Here are a few year-end planning items to check off your list:

1. Get Ready for Upcoming Education Costs

For students: this is a great time to start looking at college scholarships. Find 3 or 4 you would like to win and start working to make yourself the perfect candidate and apply early.

For the parents: take a look at some college calculators to get a sense of how much your expected family contribution (EFC) will be and the best tax-efficient way to pay for it.

Even if college is a few years out, planning now can help keep costs down later. Make sure everyone is on the same page and only look at schools that you can afford.

2. Do You Need to Rebalance Your Investments?

Consider the market. Is your current asset allocation up-to-date and working for you? This is a good time to review your portfolio with your financial planner.

Also, consider the tax consequences of reallocating your investments. This might be a good time for a tax planning session.

3. Revisit Your Budget and Goals

Do you have dreams of buying a home, paying for college expenses, or ramping up your retirement savings?

Take a look at your budget. How are you doing? It might be time to trim down some costs by eating out less and ditching subscriptions you no longer use.

Write down your goals and how you plan to reach them. This is the first step in making those dreams a reality.

4. (Bonus!) Plan for Your Next Tax Bill

August is usually a slow month for accountants and other tax experts. This means it’s a good time for tax planning.

Don’t wait until December. Estimate your upcoming take bill, and start preparing for it.

If you don’t already have a team of professionals ready to help you through this planning season, consider talking to a certified financial planner who offers hourly consulting—and keep the conversation limited to tax strategies.

A 2-hour planning session could help you keep more of your hard-earned money.

The post Don’t Wait to Start Your Year-End Financial Planning appeared first on AWM.

I hope you enjoyed a Merry Christmas and a wonderful New Year!

Our office is looking forward to what this new year will bring.

Quick Recap of 2020

A quick glance at your December statement might give you the impression that 2020 was smooth sailing. Unfortunately, that was not the case.

Do you remember the last time you were on a wooden rollercoaster? Your car trudges upward as you enjoy the view.  Suddenly, the track disappears!  You race towards the ground and fly around corner after corner.

That’s a good depiction of 2020.

Here’s a quick recap:

• Market started out with a bang in January
• Coronavirus hit the U.S. / world
• Market dropped nearly -40% from February to March
• Government went into rescue/bailout mode
• Treasury went on a money printing spree
• The Fed lowered rates and kept them at near-zero
• By 4^th quarter, markets recovered and ended positive

It’s important to look back on where we came from. For those of you with a Financial Plan in place, you were able to stomach the wild ride of 2020.

How We Manage Your Money

A client recently asked me how I managed their money, especially with so much volatility. How do I know when/what to sell and when/what to buy?

You might have seen a lot of activity on your accounts this last year. 2020 was a very challenging and unusual year.

We had to react quickly, stay vigilant, and be innovative to follow new trends in the economy. Things that worked before, stopped working, and vice versa.

Additionally, I have to make decisions for each of my clients based on their personal situation with the information I had.

My hope is to have enough information about each of my client’s finances to keep them on the right track.

The four big questions I try to answer are:

1. Do you need money to live off of your investments?
2. What kind of risk can you tolerate?
3. Where is the market going?
4. Are there any other factors I need to be aware of?

For those who have a very close relationship with us, we know where you stand and can act proactively for you, no matter what the market throws our way. Most of you have a Financial Plan in place and know what to expect during the good and rough seasons.

If you are still on the fence about scheduling a planning session, know that both you and we can benefit. I will be more informed of what your goals, needs, and plans are. You can have greater peace of mind knowing we have your back and will act in your best interest.

The more you share with us, the more beneficial it can be for you.

Who Benefits the Most? (*Hint* It is not necessarily how much you have!)

Our top clients who reap the most benefits from me do these 3 things:

• You engage with me because you see the value of getting the most out of us in a relationship.
• You share information so I am better informed on seeking to protect you and when to take opportunities.
• You introduce us to your other professionals so we can work as a team to optimize your planning strategies.

Clients who pay taxes can save money by having us explore and execute tax harvesting, Roth conversions, and RMD distribution strategies for you.

Do you know anyone who struggles with these roadblocks to financial success?  (See the sidebar below.).

What Happens When You Don’t Engage?

From my experience, clients are tempted to quickly become disengaged, passive, and lose sight of the big picture.

When we feel we’re missing information, we are forced to exercise caution, even for clients who could be taking more risks.

Disengaged clients can often experience fear and emotions without a plan to keep them grounded. Not willing to invest, because of fear, or staying out of the market because of emotions.

We serve you best when we are proactive. There is still time to engage and benefit more fully from working with us.

What to Expect in 2021:

1. The Market. Expect volatility – a new roller coaster ride?
2. A New Administration. Many things will change, including higher taxes and more regulations.
3. Taxes. Regardless of what happens in the market or the new administration, there will be tax changes. RMDs are back.

How Are We Watching Out for You?

We will be vigilant on investments and diversification, focusing on opportunities that will benefit from higher government spending.

Heading into 2021, we are less confident on things like fixed income that are dependent on interest rates staying low forever.

Inflation is also on the top of our minds.

Sincerely,

Petr Burunov, CFP®
President / Wealth Strategist

The post Client Newsletter 1Q21 appeared first on AWM.

We all know that one guy at the gym…

He stands in front of the mirror and curls the biggest dumbbells, but never works out anything else.

Picture his average-sized calves struggling to carry his ginormous biceps out the door.

It’s pretty obvious that he’s not following a balanced workout routine. You might be able to get away with that at the gym.  But can you do the same with your money?

So many of us are consumed with contributing to our retirement accounts that it’s easy to ignore our budget and unleash our impulsive spending habits.

Are you ready to start laying a solid foundation for a balanced retirement? Here’s where you can start!

Discipline.

It all comes down to living within your means.

A client I used to work with is the perfect example. She didn’t make more than $30,000 a year, but because she budgeted strategically, she was able to take extravagant vacations and save up for big purchases without tapping into her savings.

Discipline is creating a doable budget and sticking to it. Here are a few ways to get your budget started:

• • Pay yourself first—Each paycheck or raise, set a little aside for your future. Start by saving a small amount to your retirement account(s) and increase your contributions over time.
  • Use the envelope system—If you struggle with overspending, break down your expenses into categories. Either with real envelopes or separate savings accounts, budget a certain amount for each category and only spend what you have saved.
  • Have a little fun—Build some fun into your budget. It will motivate you to keep working towards your goals and live your life with purpose.

Have A Solid Plan.

Work with a trusted fiduciary financial planner to design a road map to follow. Think about where you want to be in 3, 5, 10 or even 30 years. What do you want to have accomplished? You deserve to be successful, and working with the right professionals will help you get there.

Don’t skip leg day.

No seriously, don’t skip leg day. At the gym… Or with your finances. 😉
Don’t focus on just one aspect of your finances. If you want to be successful, there has to be a balance.

Building financial discipline is a lot like building muscle. You have to start slow.  Add more reps and weight over time. You might be sore at first. As you push and stretch yourself, you will start to love the results!

Get Started!

The post How can I develop financial discipline in my life? 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.