Category: Tips
Identity theft can happen to anyone at any age. In fact, 1/3rd of Americans reported that they have been victims of Identity Theft. The most common age demographic is those in their 30’s, however senior citizens report the largest financial loss. While it feels unimaginable, even children can become victims of identity theft. For those who have their identity stolen, repercussions range from frustrating to costly. With this type of crime being so common, how can you protect yourself from falling victim? Be Aware of the Signs Unfamiliar Transactions - Be aware of your account activity. Look at your bank history and credit card statements. Follow up on anything that doesn’t look familiar. Report and dispute activity that does not belong to you. Immediately lock down lost or misplaced cards. Unexpected Mail – While it is easy ignore and cast junk mail aside, do open all your mail. For some victims, finding a bill or otherwise unfamiliar mail is the first indication that identity theft has occurred. Victims of identity theft may receive notices from unfamiliar employers, collection agencies, tax notices or even information from unknown medical providers. If you notice an unexpected decrease in the amount of mail you are getting, be aware that someone could have forwarded your mail to an alternate address. Be Diligent – Be aware of your own spending patterns. Use tools provided by your credit cards and monitor your credit regularly. Check your statements and follow up on unfamiliar charges. Be sure to securely shred or otherwise destroy documents with personal information printed on them. Consider opting out of pre-screened offers by visiting optoutprescreen.com or calling 888-5-optout Creditor/Collection Calls - If you get bills or collection calls that don’t seem familiar, don’t just ignore them. This could be a sign that someone has used your good name to run up a bill. Help for Victims If you find yourself a victim of identity fraud, don’t panic. While it is possible that someone could assume your identity and make a whole series of transactions, most incidences are small and isolated. The Federal Trade Commission reports that the median loss is $650. The longer a perpetrator uses your identity or the higher the financial theft, the more likely they are to be caught. Most make a purchase or two on a stolen account and move on to the next victim. There are actions you can take to fix the situation. First, contact the three major credit reporting agencies (Equifax, Experian and TransUnion) by phone or web. Request that a fraud alert and credit freeze be put on your credit immediately. Obtain a copy of your credit report and determine if there are any accounts that do not belong to you. You are entitled to a free copy annually. Dispute anything that does not belong to you directly with the credit reporting agency. Contact any creditor that you do not recognize as soon as possible and report the fraudulent account. What will this cost me? In most cases, you will not be held responsible for financial losses due to identity theft. You will need to prove to the creditor that you did not make the transaction. That is why acting quickly is the most important thing to do if you are a victim of identity theft. Anything reported to your credit report that is inaccurate, incomplete or unverifiable must be removed within 30 days. While most people can clean up identity theft quickly, those victims of extensive or sophisticated crime may spend weeks or months fighting to recover from identity theft and may spend a lifetime trying to prove they are who they say they are. File an Identity Theft Affidavit with the Federal Trade Commission at Identitytheft.gov or by calling 1-877-FTC-HELP. Rebecca Agamaite Investment Advisor Representative Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
Whether you are a college student, career person or retired, you may be looking for ways to increase your income. Side hustles or gig work are becoming an increasingly popular way to bring in extra money, but what should you consider before jumping on the bandwagon? By understanding how to evaluate income opportunities, you can choose what makes sense for you and what is better to avoid. Consider your long-term goals. Are you hoping to work for yourself someday? Can your part-time gig work become your full-time income someday? A side hustle can be a great way to ease out of the rat race and into being your own boss. Not interested in going into business? Consider casual job opportunities to add extra income. Try something new or do a job that allows you to meet new people while doing things you enjoy. For some, retirement will become a time of “reHIREment”. More people are choosing to open businesses or work in their own industry as a consultant. Doing this offers retirees a chance to work on their terms as much or as little as desired. This is a great opportunity for those who want the freedom of retirement but are not willing to hang up the career they have spent years building. Working for yourself in retirement can create retirement income that can be a great supplement to other sources of income such as Social Security, pensions or retirement account withdrawals. Setting Yourself up for Success If you decide to get moving on a side hustle, it is important for you to set yourself up for success. Do your research. Research similar businesses. Find out what has made them successful or what has caused them to fail. Plan to carve a niche and learn the art of networking yourself and your business. Be mindful of the realistic potential for income. While some businesses are wildly successful, small businesses have a high failure rate. It is important to understand what the business will take to get off the ground and when you can expect to turn a profit before investing your time and money. Be mindful of tax implications. If you make money, you will owe tax. If you are your own employer, you may need to pay into Social Security and Medicare on your own behalf or make estimated tax payments. Consider startup costs and ongoing business expenses. What equipment, materials, or inventory are needed? What other costs have you not considered such as accounting software, or marketing. Be sure to consult with a tax professional or accountant to set your business up legitimately. Avoiding Schemes Seeking out extra income can make you valuable to “get rich quick” schemes. Be aware that pyramid schemes and multilevel marketing (MLM) business models are designed to create a lot of income for those at the top, while those at the bottom often make very little. You may be required to buy products ongoingly that are often more expensive than purchasing similar products elsewhere. These companies entice members to get others to sign up to offset the cost of the products they require you to purchase. They also promise passive income earned on products sold by the people you get to sign up. The Federal Trade Commission estimates that only 25% of MLM participants ever turn a profit. Investment schemes are often advertised for those hoping to earn passive income. Some entice people to buy classes on real estate, crypto currency, stock market investing with the promise of you being able to become a successful and wealthy investor. Some of these business models may even entice people to invest their own money with promises of big returns. As a rule of thumb, if a business or investment opportunity sounds too good to be true, then it probably is. Also, while an income opportunity may be legal and legitimate, it will not guarantee a profit. Some opportunities are simply opportunities for others to make money at your expense. A Note on Passive Income The term “passive income” is often used in the context of side hustles. True passive income is income that you do not have to work for. After the initial set up, it just keeps re-occurring and growing exponentially. You don’t need to start a business to create passive income. Investments such as stocks, bonds, CDs, and savings create passive income in the form of interest and dividends. You get paid for owing these assets. Other assets can help you earn passive income as well. Owning rental real estate, franchises or vending machines can help you earn passive income. If you do not have the capital to purchase an asset for creating passive income, consider creating your asset. Creating online courses, stock photography, or monetize social media to create streams of passive income. Ready to explore your options? We can help. Whether it is setting up your business, evaluating your tax situation or creating investment income, our team of business consultants and advisors is ready to help you create your plan. Visit our website or contact us today. Rebecca Agamaite Investment Advisor Representative Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
From the pandemic era to hyperinflation, the last few years have created a trend of people looking for ways to get back to the lifestyle of yesteryear. While many of us love the idea of getting back to our roots, it may not be practical, with today’s busy lifestyle. You don’t have to be raising backyard chickens or nurturing a sourdough bread starter to do things to save money and live a simpler life. By being intentional and by making a few tweaks to your current lifestyle, you can save a few bucks and even reap some health benefits. Here are a few tips for living a simpler life. Get Some Fresh Air Power down your devices and get outside. We all need a break from non-stop technology. As spring and summer months are approaching, it’s a great time to pause your streaming plans and other memberships and focus on doing things that don’t cost anything. Take a walk, go for a bike ride, or play yard games with the kids. Have a backyard camp out or plan a beachside picnic. Explore your local parks and nature preserves instead of opting for entertainment like going to movies or other venues that charge admission. If you do choose some sort of entertainment that costs money, seek out low-cost opportunities and try to get the best bang for the buck. Consider a yearly state park sticker or family season pass to your local public pool. Fresh air and exercise are great for the body and the wallet. Cook Outdoors Is your Friday night usually a dinner out night? How about rethinking dinner at a restaurant and moving the party outside. Think beyond just grilling out. Use a backyard fire pit to make campfire creations such as pie iron pizza or foil packet dinners. Let kids assemble their own walking tacos with corn chips or tortilla chips. Use an outdoor griddle to whip up a hibachi style stir fry. Whether it is at a campsite or your own backyard, get your family involved with preparing food in the great outdoors. Food cooked at home is a cost-effective alternative to dining out and it can be healthier too. Bringing food outside just adds to the experience and helps you create fun memories with friends and family. Ditch Excess Packaging and Unnecessary Plastic Do you find yourself buying single serve items for lunches and snacks? Any consumable item that is packaged for convenience typically will cost more than it would if you were to portion the food yourself. Additionally, single use packaging creates more environmental waste. Consider using reusable containers to portion out your food and snacks. Avoid single use plastic bags when possible. Consider repurposing glass or plastic containers from products that you buy. Fill a water bottle or make to-go coffee at home instead of buying a beverage while running errands. If you are already in the habit of taking your cup with you on the go, resist the urge to buy the latest cup or water bottle that is trending on social media. You likely have plenty of options at home already. Instead consider using an old mason jar and a reusable straw for a little shabby chic appeal. You will be surprised at the financial and environmental impacts of being mindful about the containers you use for drinks and snacks. Get Your Green Thumb Growing You don’t need to have acres of land to grow your own food. In fact, you can grow delicious food at home without a lot of space or elaborate equipment. If you love the idea of having raised garden beds, but don’t want to spend the time or money, think smaller. Many items that you have lying around the house can be converted to a patio garden. Consider plants that grow well together. Create a salsa garden with tomatoes, jalapenos and cilantro in an old plastic tote. How about using kitchen herbs in flower planters? If you have a little more space, think outside the box. If you have a fence, hang a shoe organizer on it and plant strawberries in the pockets. Or perhaps grow potatoes in a laundry basket lined with an old burlap sack. Make sure that plants have proper drainage, water and adequate sunshine when growing your garden. Now is the perfect time for planting this summer’s healthy harvest. By reusing things you have, you can save money and scratch your itch to get your hands in the soil. Today’s fast paced, highly stressed lifestyle really can leave people looking for opportunities to get back to basics. There are many physical and financial benefits to taking a step back and enjoying the simpler things in life. Avoiding waste and stepping back from the hustle and bustle just makes “cents” and can help you to have a little bit more cashflow to your financial goals. We encourage you to consider what you can do to spend less but create a life with simplicity and significance. Rebecca Agamaite Investment Advisor Representative Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
Many American families dream of that once in a lifetime vacation or enjoy an annual trip. What most people don’t realize is that these types of trips can really set you back. According to USA today, Airfare prices on domestic flights average $367.79 per person. Popular locations at peak season times can cost far more. According to GoGo Charters, the average family of four can plan on spending a whopping $7,936. For some families, this is simply more than what they can afford. With the cost of family vacations escalating, many are finding the vacation of their dreams out of reach. Rest assured, you can still create meaningful memories and spend quality time with your family without breaking the bank. Maximize Your Budget Determine what you can afford. Avoid spending money you don’t have. The only thing worse than seeing your vacation end, is finding a big credit card bill in your mailbox when you get home. When you have determined what you can afford, do some research to find out how to maximize your dollars. Price out different lodging options at different times. Warm weather destinations are much more affordable in mid-October than they are in mid-March. Consider working with a travel agent who may have access to lower pricing or may know the tricks of the trade to make your money go farther. Don’t assume using a travel agent adds cost. It may be just the opposite. Consider all your options for transportation. While it may sound better to jet set off to your destination, if it is possible, driving can trim thousands of dollars off the cost of your trip. Take into consideration the time, number of people traveling and the distance. Will you need to budget for meals or a roadside hotel along the way? Can you trim off these costs by driving longer hours and taking a cooler along? What is the expected cost of fuel? These details all factor into your overall cost. It may be cheaper for a couple to fly, but a family of 4 may save a lot of money by driving. Slay the Staycation If you are looking for a smaller budget option, consider what sort of things your family would love to do on vacation. How many people have talked about booking a fancy vacation for their kids and the kids only wanted to swim in the hotel pool? If this is your family, your kids may have been excited to just stay in a hotel close to home and swim in the pool. Also be sure to check out rental properties that can be the main event of your vacation through Airbnb and Vrbo. Cottages and Cabins could be available only a short drive away from where you live. Perhaps there is a destination that is closer to home that you have never been to. Consider attractions that are within a few hours’ radius. By looking at your own town or state, you may just find a gem that you have overlooked. Natural wonders, museums, baseball stadiums and theme parks in your area can make a great place to visit with your family. Turn “we should do that sometime” into “we can’t wait to do that again”. Go Where the Wild Things Are Vacations focused on nature are a great way to get back to simpler times and can be very affordable options for families. Consider national and state parks as a fantastic opportunity to see this beautiful country we live in. Whether you drive far or stay closer to home, a 1-year car pass for national or state parks generally costs less than $100 and gets your whole family in for the whole year. For those interested in national parks, if you are permanently disabled, or an active or retired armed forces member, you can qualify for a free National Park Lifetime membership. Discounted memberships are available for those over 62 or for families with 4th grade children. National Park memberships grant access for not only national parks, but also national monuments and federal fee recreation areas. While lodging in national park areas can be pricy, it can swing significantly and be more affordable in shoulder seasons. If you are of the adventurous variety, you may want to even consider options for camping. State and Federal camping sites can be very low cost. They do fill up early, however sometimes last-minute cancellations will create booking opportunities. If you are set on camping, you can book up to 12 months in advance. No RSVP, no problem. Most National forests allow for free camping in undeveloped areas. Be sure to check out rules about dispersed camping areas at www.fs.usda.gov. If you have an RV or camper, be sure to check out the rules for boondocking (disbursed camping for RV units). There is really a vacation option for every family on every budget. By getting creative and focusing on what matters, you can create a memorable family vacation. While you won’t remember how much or how little you spent, you will remember the memories you created with those you love. Rebecca Agamaite Investment Advisor Representative Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
How to save more money…What does this mean to you? Does it mean that you actively are looking to increase your savings? Does it make you think of starting a 401k, saving an emergency fund or tucking money away for a major purchase? Or does it mean saving money on groceries, making your paycheck go farther or not feeling stuck in the rut of trying make ends meet. While this same question can have two different meanings, the root of the question comes down to cash flow management. If you are getting established, you might feel like you are trying to make it from paycheck to paycheck. If you are in the middle, you may be looking for ways to increase your savings. If you are in the thick of retirement planning, you may find yourself focused on which expenses you bring into retirement and how to turn your nest egg into a cash flow to cover your monthly expenses. No matter your stage in the game, cash flow is part of equation. Cash flow management is the backbone of all financial planning strategies. Unfortunately, many people overlook the importance of evaluating where your money is going. It can be assumed that if you aren’t having issues managing your money, you don’t need to evaluate your spending. Evaluating cash flow can help you determine retirement spending needs, help you determine what expenses you will carry into retirement, and plan for inflation. Let’s break down some tips for maximizing ways to save more money. Foundational Years If you are just getting yourself established, pay yourself first, then set your lifestyle budget around what is left over. Setting up savings strategies like 401ks, Health Savings and emergency fund as soon as possible will help save more over the course of your working years and can get you on the road to wealth building sooner. It is harder to start these strategies later especially as responsibility grows. Avoid the urge to keep up with Joneses. Social media and other influences have painted an image that you need the latest and greatest of everything. Instead choose to live within your means, keep debt in check, keep emergency funds available and plan for major purchases. Don’t overextend yourself on housing or vehicle payments. Only make major purchases that you can comfortably afford and leave yourself some wiggle room so that you are able to handle unexpected emergencies. While the grass may look greener on the other side of the fence, the grass is truly greenest where you water it. If you are coming late to the game paying yourself first, start small and work your way up. It’s easier to save $1000 to your emergency fund than it is to save 6-12 months of income. If you feel you can’t save for retirement, start small and work your way up. Try to contribute enough to get any match your employer offers. If that seems like too big of a commitment, start by saving a percent or two and then increase every year. If you get a pay increase, increase savings again. By taking small steps towards your goals, you are creating good habits and moving in a positive direction. Wealth Building Phase Focus on increasing savings. The 50/30/20 rule is a very effective strategy to balance your short-term spending needs with your long-term savings goals. 50% of your income can go towards your necessities, 30% of your income can go to discretionary spending and 20% allocated to saving. The 20% that you save should be broken down between long-term goals and short-term goals. For example, if your employer matches up to 6% of your income, you may put 6% into your 401k, but then may fund a Roth IRA up to the maximum, while also putting money into a Health Savings Account and/or taxable brokerage account. The mix of savings can be customized to meet your goals and create tax efficiency. It’s a good rule of thumb that of the portion designated for saving, at least 10-15% will be allocated to retirement. Retirement savings should be left untouched to maximize growth and avoid unnecessary tax and penalty. Retirement Years While some people still save for their goals in retirement, most people’s focus is more on being mindful of how they spend their money. Projecting cash flow and expenses before you retire will help you to determine if your nest-egg will provide the income you will need to cover your expenses. For some people, annual spending needs will decrease because you can eliminate the portion you allocate to retirement income. Additionally, many people will have eliminated debt prior to retirement, which can lower retirement income need. As a rule of thumb, you should be drawing 4% or less of your retirement savings to avoid spending through it prematurely. This is just a general rule, you should consult with your investment advisor representative for what is right for your situation. Investments that generate income such as interest and dividends can be important to help replace the money you spend. If saving money in retirement means spending less, retirees can find lots of great discounts allowing them to spend less in retirement. Retirees can take advantage of discounts on retail purchases, travel, memberships, and pharmacies. Some retirees may even seek out places to reside with favorable tax situations to help them save money in retirement. Final Thoughts Regardless of where in the financial planning process you are, cash flow is an important aspect of evaluating your situation and planning for your future. Thinking beyond budgeting; your cash flow is the most important tool for building long term wealth. If you are not sure where to start, meeting with a trusted financial advisor is a great first step. Our team of fiduciary advisors can help you to determine where you are now and how to accomplish your goals. Rebecca Agamaite Investment Advisor Representative Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
Where do you go when you need help making important financial decisions? Do you find yourself researching financial topics on popular outlets like Reddit, YouTube and TikTok? There is a plethora of information on the internet, but should you trust the information you are getting from social media and other online outlets? Do you feel like the idea of working with a financial advisor is old-fashioned or for people your parents’ age? With so many online resources available is there value in hiring someone to help? Pitfalls of DIY Planning One of the most concerning parts of using social media to research your financial planning needs is the amount of inaccurate information floating around. It can be very difficult to determine what is right and what is not. Even some of the more notable financial gurus are often unlicensed and provide information for entertainment only. In addition, this general advice may not be what’s best for your specific needs. Online calculators are a popular way to project how much money you will need in retirement or other basic planning concepts. While these are helpful, they are basic and don’t allow for much customization. They also depend on accurate and appropriate information to be typed in. If you miscalculate, it may provide an output that isn’t accurate or realistic. Am I ready to see a Financial Advisor? Perhaps you think you need a lot of money to start working with a financial advisor. While some advisors only work with people who have a lot of money, others are happy to help people build their wealth. You don’t need to feel like you don’t have enough money. Choosing to work with a professional earlier in your life can help you to achieve your goals sooner and can help you navigate situations that will arise during your saving years. How to choose a Financial Advisor Choosing a financial advisor is a big decision. In doing so you are giving someone access to a very sensitive part of your life. Remember you are hiring an expert to work with you. Your advisor should provide value to you and your financial decisions. Here are some things to consider when hiring a financial advisor. Communication It is important to find an advisor who communicates clearly and timely. It is important that you understand and are comfortable with what is going on with your money. Find a fiduciary A fiduciary is required to work in your best interest. Today many financial professionals work for firms registered as fiduciaries, however it is possible for an advisor to be dually registered, meaning they are registered as a fiduciary and as a broker dealer. Broker dealers are held to a suitability standard, meaning that they can recommend investments they reasonably believe are appropriate for the situation, but not necessarily the best. By choosing an advisor who only works under a fiduciary standard, they are held to stricter rules and are required to act only in the best interest of the investor. Compensation Understand how the advisor gets paid. Brokers can receive commissions on the investment products they sell. A conflict of interest can arise when one investment product pays a commission, and another product does not. Fiduciaries are paid by a fee billed to a client not through commission from a product sale. This reduces conflicts of interest in investment recommendations. Planning Style Find someone who will take a holistic view of your finances. Creating a portfolio is an important piece of your financial strategy, however this is only one part of your personal finances. Find an advisor who can add value to you in other ways. They should have a knowledge of tax laws as costly mistakes have been made by being unaware of these consequences. Do you have enough in your emergency fund? Do you need to pay down debt or save for a large purchase such as a house? Are you on track for retirement? What will happen to your assets when you pass away? This broad view will help to make sure all the pieces are working together to help you achieve your financial goals. Get a Referral Speak with family and friends. See who they recommend and why. Knowing that someone you trust is working with and presumably is happy with the service the advisor provides can help make you more comfortable in moving forward. Not all financial advisors are the same. It is important to find someone who communicates well with you and will work with you on achieving your goals. Taking the time to find the right advisor can yield big benefits as you build a relationship that can last for decades. Rebecca Agamaite Investment Advisor Representative Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
While health insurance can limit the amount of money you will need to pay when you seek medical treatment, you may find yourself covering a portion out of pocket. According to Statista, in the US, the average annual health cost per person is $1,233 or $4,932 for a family of 4. Dealing with a big stack of medical bills is enough to make even the strongest stomach feel queasy. The good news is that if you plan properly, you can take charge of how you manage out of pocket medical expenses. Having a bit tucked away to cover medical expenses is one of the best ways to take the stress out of being sick. Health Savings Accounts and Flex Spending Accounts offer convenient ways to spend pre-tax money on things that are not covered by your health plan. There are some differences between the two types of plans, so it is important to know which is appropriate and available to you. Flex Spending Accounts (FSA) Flex Spending can be designated for two common uses, dependent care and medical related costs. For this blog we will focus on FSAs for medical and dental expenses. Both employers and employees can contribute. Employers maintain the ownership of the account and they can be restrictive. Contribution limits are generally quite low, you can only make changes annually and amounts saved can be forfeited if you leave your job or do not spend what you have saved by the end of year. You do not need to use a high deductible health insurance plan to benefit from an FSA. They do offer you the ability to pay for medical, vision and dental costs with pre-tax money. Since contribution limits change annually, and each employer's plan is different, be sure to get the specifics on your company’s options. FSA accounts have been available to employees since the 1970’s and continue to be available as a way to help employees prepare for expenses for out-of-pocket medical expenses as well as other qualified expenses. Health Savings Accounts (HSAs) For those who have a high deductible HSA eligible health insurance plan, funding an HSA can be a great option. Unlike an FSA, HSA is owned by you and is far more flexible. You may open the HSA at the financial institution of your choosing and unused money can accumulate. Contribution limits are much higher and those age 55 and over can make catch-up contributions. Contribution limits change annually and are different for single and joint tax filers. Be sure to consult your trusted advisor to help you determine eligibility and your tax benefits. HSAs were introduced in 2003 but have continued to gain popularity. According to the National Institute of Health, currently 1 in 6 insured adults uses an HSA to pay for health-related expenses. Making High Deductible Insurance Work for You While having a high deductible health plan can sound expensive, premiums often are lower than PPO health plans. You can use some of the savings in premiums to fund an HSA account. For those who spend a lot of money out of pocket, spending pre-tax can be a better option than using money you had to pay tax on. Getting in the habit of funding an HSA as a young person has big payoffs. Younger people typically spend less on medical care than families and older people. For those who don’t have a lot of medical costs, money can continue to accumulate for future use. Some HSA vendors have options to invest, helping the money grow faster. It’s a good idea to wait to invest until you have saved enough to cover the maximum out of pocket before beginning to invest. You may want to avoid investing money that you may need to access within the year. Using HSA eligible health insurance can put you in the driver’s seat when it comes to managing your out-of-pocket medical expenses. Planning for Costs in Retirement While you may not have considered HSAs as a part of your retirement planning, funding an HSA in your working years can help you prepare for retirement. These funds can continue to pay for out-of-pocket medical costs, Medicare premiums, COBRA insurance premiums or long-term care expenses. People who have reached age 65 and enrolled in Medicare can no longer contribute, but they can use money that was already saved. Those age 65 or older can use HSA for expenses for non-medical expenses as well. You will however need to pay tax on any money taken from an HSA for non-medical expenses. While no one loves spending money on medical expenses, knowing where you are getting the money from makes it less stressful. By creating a regular savings plan to pay for out-of-pocket medical you can focus on feeling better when you need to seek medical care. Rebecca Agamaite Investment Advisor Representative Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
While we often think that it is only seniors that are targeted by scammers and fraudsters, it is important to be aware that anyone can become a target and incur financial loss. In fact, according to the Federal Trade Commission, the largest demographic of victims of cybercrime were aged 30-39, followed by victims aged 40-49. By keeping informed and up to date, you can protect yourself from becoming one of the nearly 2.4 million people who are scammed annually. Romance Scams As more and more people are looking for love online, romance scams have become more prevalent. Norton estimates that in 2023, there are approximately 57 million people using dating apps. Regardless of the type of romance scam, most scams consist of a cybercriminal creating a fake profile using a photo of an attractive individual. They seek out someone to target and begin a fast-paced relationship. Once the victim is emotionally invested, the cybercriminal will ask for money. Often there is a story about an emergency or tragedy that compels the victim to send money, gift cards or cryptocurrency. Once payment is received, the fraudster disappears and moves on to the next victim. People who are recently widowed, divorced or otherwise lonely may be ripe for the picking when it comes to these types of scams. Be aware of red flags including someone who is interested in a long-distance relationship, someone who has a reason they cannot meet you in person, or someone who quickly professes love without meeting you. Don’t share anything too personal, including compromising photos that might haunt you later. Never buy plane tickets, gift cards, or send money to a person you have never met in person. When in doubt, ask someone you trust for a second opinion about the situation. Grandparent Scams If you are like most grandparents, you would do just about anything to help your grandchildren, especially if you feel they are in trouble or danger. In a grandparent scam, fraudsters use social media to gather information about your family. The cybercriminal then places a phone call or email impersonating a family member stating they are injured or arrested and need money immediately. They often insist that they don’t want you to call their parents. They may pass the phone to a “hospital employee” or “attorney” who can take your payment over the phone. Grandparent scams are not new, however advancements in technology can make these more sophisticated and believable and have widened the target market beyond seniors. Artificial intelligence technology allows for scammers to even replicate a voice. Phishing Attacks Phishing is when scammers create emails or text messages to trick you into providing your personal information including passwords, account numbers and Social Security numbers. It is common that these emails and text messages are compelling and may even use the logos of real companies that you are doing legitimate business with. They may request that you click on a link to go to their website which may install invasive software called malware onto your computer. With these scams, the devil is really in the detail. If you look closely at these, you may notice inconsistencies that will alert you that it is a scam. Be on the lookout for emails from companies you don’t do business with, emails with generic greetings, questionable email addresses, a link to update your payment information, or anything else that looks suspicious. Don’t call the number on the email to verify the request. Instead, compare it to your statement or do a reverse lookup on the number to see if it comes up as a spam number. Cryptocurrency Scams With the rise in interest in cryptocurrencies, many people are asking how they begin to use and invest in crypto. Because there is so much confusion about what it is and how to use it, cryptocurrency scams are on the rise. If you are going to use cryptocurrency, it is important to know about what scams are gaining popularity and how to avoid them. Some good rules to follow are to never do business with someone demanding payment in crypto. No legitimate business will only offer this method of payment. If someone wants you to invest in crypto, be on alert. Scammers often guarantee big profits and fast profits. If someone is making a promise that seems too good to be true, it is. Be aware that cryptocurrency scams are commonly found on dating websites. Protect Yourself Most scammers will cast a wide net of potential victims hoping for a small number of people to fall for it. The more informed you are, the less likely you are to fall victim. Keep updated on the latest scams by subscribing to Consumer Alerts at consumer.ftc.gov. Remember, to guard your identity. Never give credit card information, or provide personal information such as address, social security number or date of birth to someone calling you. Never allow someone claiming to be tech support to establish a remote connection to your computer. Don’t click on pop up messages while online and keep your security software up to date on devices. Understand that places like the IRS and Social Security Administration will not attempt to call you asking for personal information. If you come across a scam, report it. File a report with local law enforcement and the Federal Trade Commission. If you are questioning if something is a scam, it probably is. In this case, the best scenario is to shut down the situation immediately, then report it. Although it can be scary, in most cases, if you haven’t given up any information, a fraud situation is likely avoided. Rebecca Agamaite Investment Advisor Representative Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
If this blog feels a tad familiar, it is, but stick with us. Since the cost of groceries has continued to increase, we wanted to continue the dialog again to help you with the cost of feeding your family. Although inflation is beginning to stabilize, food costs are still on the rise. According to data supplied by the US Department of Agriculture, in 2020 a family of four which included two adults and two small children, who were moderate spenders, spent about $934.90 per month. In 2023 this same family is spending about $1173.50 per month. This is a notable rise; however, it is only a hypothetical scenario. In all actuality, if we evaluate your family from 2020, your kids have grown and might be eating more or perhaps your family has expanded. Growing families have been hit particularly hard by the increase in food costs. While prices have gone up, some of the products you frequently buy may also be getting smaller. “Shrinkflation” is not just an urban legend. You may have noticed that the pack of cookies that you have always bought looks just a bit different. The cookies are smaller or there are fewer in the row. Or perhaps you noticed the bottle of dish soap looks just a little less full than the last time you bought it. Snack chips are notoriously known for this phenomenon. When consumers take note, they release a new larger size at a much higher price. “Shrinkflation” only adds to the stress of increasing food costs. With so much stacked against you, how do you keep it in check at the checkout? Here are some tips to help you. Eat Food In Season And Buy Food Grown Locally Those who live in the northern regions of the country know just how expensive things like fresh berries can be in the cold months. Fortunately, costs drop significantly as the growing season expands across the country. Local food travels fewer miles which results in less transportation costs and a fresher product. Check out local farmer’s markets and garden stands, or purchase Community Supported Agriculture (CSA) produce or meat boxes from local farms or co-ops. Another way to lower your food budget is to plant a garden, not only can this help lower the cost to feed your family, but it is also a great outdoor activity for everyone including children. Finally, learning to preserve larger quantities of food in season by freezing and canning for use over the winter can allow you to enjoy your favorite foods throughout the entire year and can help cut down on food waste. Plan Your Meals And Shop With A List We all know it is a bad idea to shop on an empty stomach, but shopping without a plan can also put all sorts of extras in your cart. Before you head out to shop, make a list of each week’s meals and see what items are already on hand. While you are taking inventory of your pantry, make a list of the things you are running low on. Keeping staple items on hand can help you avoid unnecessary extra trips. Shopping every other week can also save you time and money. Once you arrive at the store, shopping from a list will help you to avoid impulse purchases or just walking down the isles putting unnecessary items in your cart. Track And Compare Prices On Items You Buy Regularly If you track the prices on items you buy frequently, you will be able to evaluate if something is a deal or not. Most stores rotate their sales and soon the patterns of pricing will be easy to anticipate. Shop items featured in the weekly flyer and use store loyalty programs and coupons. Check out the clearance area and fresh items reduced for quick sale. Only buy reduced items you can use right away or freeze. Don’t be afraid to switch up where you shop or buy store-brands instead of name-brand items. If you are willing to think outside the box, you may find great deals at dollar stores, scratch and dent liquidators, Amish bulk stores, and discount grocery stores. Buy in larger quantities and portion out While a 5.3 oz cup of Greek yogurt costs $1.49 or $0.28 per oz, the same yogurt in a 32 oz container costs $5.79 or $0.18 per oz. Convenience can add considerable cost to items. Instead consider just scooping out the yogurt in a bowl or a single serve food storage container. The same thing applies to everything from snacks to meat. If a bulk pack is too much to use, you can always break down the large packages into smaller portions that will fit your needs. Use food storage containers, storage bags, and freezer paper to store these small portions. Over time these savings can really start to add up. Avoid Waste If your crisper drawer is where green things go to die, you are also wasting the green in your wallet. If your plans change often or find yourself not eating your produce fast enough, consider frozen or canned produce instead. It typically costs less and has a longer shelf life. Also don’t make too much when preparing meals especially if you or your family doesn’t like leftovers. Cook just enough to satisfy your family’s hunger. If you do cook extra, reimagine your leftovers into another meal. Extra rice can easily be made into fried rice, left over steak can become steak and eggs, pasta can be added to soups and salads. Baked chicken can become chicken salad. If you still find yourself with leftovers, place them in the freezer to use them later when you need a quick meal. While rising food prices can cause a lot of stress to your budget, putting some strategy into your spending can not only save you money, but it can also save time and reduce food waste as well. Knowing what you have on hand, what you need and what you are spending will put you in the driver’s seat despite high food costs. Rebecca Agamaite Investment Advisor Representative Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
Credit cards can be an important part of managing your financial situation when used correctly, but what do you need to know about being smart when it comes to credit cards? Making credit cards work for you can be confusing, but here are some tips to help you get started. Choose 0% According to Lendingtree, the average credit card interest rate in the US is 23.84%. Remember that this is an average. If you have great credit, you probably have a better rate and if your credit is poor, it can be nearly 30% interest. If you are like most people, this may come as a surprise to you, but credit card rates have steadily increased over the past decade. The good news is you can avoid interest if you do not carry a balance on your credit cards. By paying off your charges monthly, you will not pay any interest regardless of the rate of your card. Paying your bill on time you will also show good credit habits and avoid late fees and penalty interest rates. If you are making a purchase of a big-ticket item, such as furniture or appliances, go ahead and use a payment plan that will allow you to make payments over a set amount of months interest free, but do pay it off before the end of the promotional period. These types of cards will often give you a set amount of time interest free, however will charge interest back to the date of purchase if you fail to pay it off within that time. Use it as a tool Using a credit card can streamline how you spend money day to day, but it must be used responsibly. Some people choose to pay for most expenses on their credit card and pay only one bill at the end of the month to maximize credit card perks such as cash back or travel benefits. Credit cards are one of the safest ways to conduct business such as online purchases and often have tools to protect you from fraudulent activities. When using a credit card, you protect money that you have in your bank account should someone take your card number while you are making a purchase. Compared to the process of reporting fraud on your bank account, reporting credit card fraud is fast and hassle free. They will typically reverse the transaction and shut down the card quickly. You will have a new number and new card within days. Credit cards can also help you track your spending, plan your budget, and monitor credit. Many credit card websites offer you the ability to track your spending and break it down by type. This can help you to diagnose your spending habits and determine how to be smarter with your money. Live credit monitoring and score modeling is often found on credit card websites. For younger consumers or those trying to restore their credit, this can be a powerful way to move you forward financially. Avoid Pitfalls Credit Cards can offer a lot of great perks ranging from cash back to points that you can redeem for travel. It’s important to read the fine print on these types of cards to determine if you can make the benefits work for you. For example, airline cards are notorious for offering free baggage, companion flights or statement credits. This can be very attractive especially if you are looking to save money on your next vacation. Most of the major airlines offer similar cards, although they are advertised as “no annual fee”. If you read the fine print, you will see that they carry significant fees after the introductory period. So, you may get some perks, but if you keep the card past the first year, you may find a hefty annual fee after that. The better the perks, generally the higher the costs associated with the card. Now, if you fly more than a few times per year on the same airline, the $100 annual fee may be less than paying all the baggage fees. Department store cards often offer coupons and discounts to card holders. These are generally designed to keep you shopping on a regular basis. If you get free shipping and a 10% discount on your order you will come back for more. If they sweeten the deal by giving you a coupon for your next order and give you a range of dates to use it by, you may find yourself shopping again in a week or so. Before you know it, you may find yourself shopping way more than what you would have if you were not constantly being enticed to shop. If you must spend money to save, you may not actually be saving. If you shop too much, you may end up with a balance that you didn’t intend to have. Credit card companies would not offer enticing benefits if the deck wasn’t stacked in their favor. It really is about assessing the benefits and costs and determining if there really is a savings, or if it is just another way to win your business or cost you money. While some consumers have mastered the art of using credit cards, the Federal Reserve Bank of New York reports that Americans owed $986 billion dollars in credit card debt at the close of 2022. Remember, interest paid on unpaid balances will very quickly outweigh any perk a card has to offer. If you find yourself tending to accumulate debt while using cards, it may be better to just stay out of the game. Rebecca Agamaite Investment Advisor Representative Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
