TOTH'S TAKES

Do you need Trusted Contacts for your financial accounts? Yes! While it is not mandatory to list a trusted contact, it is highly recommended to do so.

In the recent past, retirees were told to follow the 4% Rule for withdrawals from retirement accounts. More recent retirees face a whole different environment.

As I was reading last month’s Hot Topic Newsletter on our website, I got to wondering how life as we know it will be affected by Artificial Intelligence (AI).

What is Stagflation? Are we in a period of stagflation right now? 

Estimating your future Social Security benefits used to be a difficult task, but not any longer.

What is a Bond? A bond is an IOU between the lender and the borrower. The issuer of the bond is the borrower and the lender is the person who purchases the bond the investor.

Back in October we talked about protecting yourself online - Now I'd like to take the opportunity to inform you about National Consumer Protection Week (NCPW). This event is sponsored by the Federal Trade Commission (FTC). During the week from March 5 through March 11 the FTC, in partnership with AARP and many government agencies, will provide information to help people understand their rights as consumers and avoid fraud.

I hope you learned something new from our last blog about taxes. Now I will outline some dates and rates about Social Security.

At this date in February, we are all busily assembling our tax documents. I thought this would be a good time to review some important tax

The IRS never uses social media or text messages to reach out to taxpayers. The IRS will NEVER call you until they have sent a letter or notice to your home or business.

 The Christmas Cactus is one of my favorite plants. I have had one for close to forty years. The best thing about this little plant is that it blooms – near the end of December - when all the other plants are hibernating.

What is Investing? Investing is using your money to potentially create more money over a period of time.

You have a relationship with money in the same way that you have a relationship with your partner. These relationships cannot help but impact each other.

Thanksgiving isn't just a day. It's a way we can live our lives every day.

For many homeowners, heating the house in the winter is the second highest cost of ownership. And it's going to cost a lot more to heat our houses this winter.

The new COLA, 8.7%, is big — the biggest since 1981, when the adjustment was 11.2%. These automatic, yearly inflation increases began in 1975, during a decade of high inflation. Before then, it took action from Congress to raise benefit levels.

Protecting Yourself Online. Everybody has probably heard of phishing, but not everyone may know just how it works and how to protect oneself from it. What is phishing?

When is the Next Recession? Wouldn't it be great to know when the next recession is coming, how long it will last and how to best position yourself to ride it out?

There has been a lot of dire talk lately about a recession. Negative economic growth this year seems to confirm the most pessimistic predictions. Definitions vary, but most economists agree that a recession is simply a prolonged and significant downturn in economic activity.

"This year has been unnerving for retirees because it has been a triple whammy; falling stock prices, falling bond prices and high inflation", said Christine Benz, director of personal finance and retirement planning at Morningstar.It's a fact that high inflation hits hardest for people on fixed incomes; especially retirees. How are retirees feeling these days?

Why is the market dropping from its peak at the start of the year when the economy, job growth and consumer spending seem to be managing? A healthy economy doesn’t always imply a strong stock market.

Seems like we are headed for another troubling tax season. The IRS is still playing catch-up. There are backlogs in processing returns and refunds, and even tax notices.

The Social Security Administration will never threaten, scare, or pressure you to take an immediate action.

When a financial advisor becomes a Certified Financial Planner™ they must abide by the CFP Board’s Code of Ethics and Standards of Conduct.

To be certified as a financial planner professional there are educational and experience requirements. The person must also possess, and be committed to, high professional and ethical standards.

I am often approached by clients who have been left with the responsibility of settling an estate. It isn’t a walk in the park; with all the paperwork, details, emotions, family/friends’ relationships involved. A lightbulb goes off in their brains, realizing all the financial intricacies associated with money handling. They come to realize a professional may have a better grip on maneuvering in this melee than they do.

2020 will be remembered as a unique year to say the least. Many lessons were learned and some of those lessons will change our future. Some businesses suffered, even closed; some new areas of business were created and/or flourished. Some of us suddenly working from home will continue working from home. Maybe, most importantly, the pandemic proved to us which of our relationships are essential and some which are … not so much.

How are you surviving 2020? Are you in a position to be benevolent or are you just barely hanging on month by month? Were you able to weather the “Covid storm”, maybe able to retire before it hit or did you just undertake a new venture in the midst of the turbulence? So many different scenarios have been created by this unexpected pandemic.

We were warned. It wasn’t a political ploy. It looks like the second wave of coronavirus is here and the numbers are higher than the first outbreak earlier in the year. Many travel restrictions are in place and quarantines are in effect. It is recommended to stay the course; frequent hand washing, mask wearing and limiting your time in public, with the 6 foot distancing rule.

Being bombarded by free advice on retirement; on the internet, on tv, on the radio? There are plenty of suggestions telling you what you need to do; get life insurance, pay off your mortgage, you need X amount of money to retire comfortably. So you educate yourself, do the research; calculate what would work best in your situation.

If you have been contemplating converting your IRA to a Roth IRA, here are some things to consider.

For some of you Social Security isn’t even on your radar, for others it’s around the corner. Some may believe there may be no funds left by the time they reach the age to collect, other are counting on it to help them retire, if not comfortably, at least reasonably. Regardless of your age, there are a few things you should be doing right now with your Social Security account to insure the future.

A crisis can leave us better or worse. As most of us long for things to return to the way they were before COVID-19, observers from various fields believe our lives may actually improve in some areas after the virus is controlled.

If you are applying for benefits or receiving benefits from Social Security, you can now choose up to three advance designate representative payees.

The numbers are staggering. Social Security has been a cornerstone of retirement planning since its inception. I get it now that I am seventy and most of you do too or hope to receive that monthly Social Security check.

Have you heard the term FAANG mentioned in the financial news? Do you know what was being referenced? FAANG is an acronym for five American technology stocks that are among the largest, best-performing companies in the world. As of January 2020, these five companies had a market capitalization of over $4.1 trillion. Are they in a bubble or are they well managed? They trade on NASDAQ and are included in the S & P 500.

A group of men and women +50 were polled on what was important to them concerning their hiring and working with a financial advisor or firm. You might be surprised to know that the women had more requests than the men. What did the women want?

How many hours have you spent at home sheltering in place because of the global coronavirus pandemic? It’s not very exciting to sit around inside, but all this social distancing does open up a convenient opportunity to review your finances and make sure they’re “quarantine clean.” It is also an excellent time to review your insurance policies, like life and homeowners’ coverage. These products are often overlooked during an annual investment review but if you need them, you will be glad you did.

What are some of your favorite spring-cleaning rituals? With so much time at home due to the global coronavirus pandemic, houses may be cleaner than ever this year. But don’t stop at sweeping up the house! Cleaning up recurring payments can bring even more simplicity and savings to your life.

 Hey, hello again, everyone. Just trying to keep you updated on the #status quo. Now, as you probably know, Congress just passed the largest #stimulus package in American history, the Coronavirus Aid, Relief, and Economic Security Act (#CARES). This was done in an effort to combat some of the pandemic’s harmful economic effects.

As many Americans try to navigate this new normal of social distancing, we find ourselves on a lot of Zoom conference call invites. It’s helping to keep people in touch and maintain business during this global pandemic. There are a handful of security steps everyone should be taking to protect their privacy during calls, especially if the calls are professional in nature. There is an increase in Zoom-bombing, which is when unauthorized people hack into your meeting and puts privacy at risk.

Any unpredictable situation in life is likely to bring emotional challenges and during these times of the #COVID-19 #pandemic, there’s definitely no shortage of them.

We have no way to expect the unexpected. And our current COVID-19/coronavirus, social distancing, self-quarantine-ing, is certainly unexpected. It never seems like the right time to discuss the future in terms of a will. However, not having a will can lead to all kinds of unnecessary battles your family might have to undertake in an already egregious situation.

This is advice from Asaf Bitton MD, MPH | Executive Director | Ariadne Labs, Brigham and Women's Hospital | Harvard T.H. Chan School of Public Health "I know there is some confusion about what to do next in the midst of this unprecedented time of a pandemic, school closures, and widespread social disruption. I have been asked by a lot of people for my opinion, and I will provide it below based on the best information available to me today. "

I was a professor of pathology at the University of California San Diego, I was one of the first molecular virologists in the world to work on coronaviruses (the 1970s). I was the first to demonstrate the number of genes the virus contained. Since then, I have kept up with the coronavirus field and its multiple clinical transfers into the human population (e.g., SARS, MERS), from different animal sources.

The corona virus only became a market worry about a month ago. The volatility is expected to remain short-term but there is every reason to believe that the market will return to normal.

Have you wondered which might be more appropriate for you; a Will or a Revocable Living Trust? Here are some of the advantages and disadvantages of each.

The SECURE Act legislation expands savings opportunities for workers and includes new requirements and incentives for employers that provide retirement benefits.

The TEN most common mistakes made on Income Tax forms and how to avoid them. The Affordable Care Act addressed. How to get your refund

Now that the holidays bills are coming due, you are probably also starting to receive those dreaded income tax applications, along with your tax statements for 2019. Some of these statements are required to be sent by the end of January, others not until mid or the end of February.

In 2008 – 09 diversification did not work at all. What would’ve worked was asset allocation. Beebower & Brison stated that asset allocation determined portfolio return variation 94% of the time. Second, notice that they said nothing about diversification. How does diversification fit into the process of investing?

Market volatility is a real concern and as retirement age approaches your investments could be at risk to a market downturn just when you need them to be more consistent. The right annuity may be able to bridge the gap.

Misconception #2 – Annuities are expensive. Fact: MANY ANNUITIES ARE LOW COST. While there will be some cost involved, as with most investment products, annuities offer more options and flexibility than some past annuity products with expenses and higher annual fees. Fees are based on features and benefits chosen and explained.

Ever thought about investing in an annuity? If you like the prospect of income with protection against market loss and the possibility of out-living your money, an annuity might be just the vehicle for your investments.

Preparing for retirement is not a sport. LOL It requires dedication, discipline, endurance, and luck. But there’s a crucial difference … When you cross the finish line in a marathon, you know the race is over. But when you quit the workforce, it’s much harder to figure out whether you’ve successfully reached retirement finish line.

Reports are that more than half of the population stresses on whether or not the Social Security System will be healthy enough to sustain them when they reach retirement age. Is this a realistic fear?

In this blog, I will attempt to explain a similar but different form of investment called an “Exchange-Traded Note” or ENT as compared to an "Exchange-Traded Fund" or ETF.

One issue that troubles me as my clients’ age, is who will handle their affairs/finances if they become incapacitated? This is keenly felt if you are single or have no children. Who is that trusted person? We don’t like to think about our own mortality, but the issues must be dealt with sooner rather than later.

Noticing symptoms of dementia in its early stages can help prevent elder fraud, abuse or exploitation. I do have a good amount of clients who have been with me for a number of years who are now in the latter stages of life. It does concern me that they have family members and associates that may use their advanced age and limited capabilities to exploit them or if they are entirely alone.

So you’ve decided you’d like to work with a financial planner. The next step is to locate a few in your area. On our web site www.regardingyourmoney.com there is a banner located at the very top of the page “Check the background of this financial professional on FINRA's BrokerCheck”, when you click on either of the hyperlinks you will be transferred to a site with background information on me and other local advisors.

At Chestnut Investment Advisory we offer essential support with hand-crafted strategies. I facilitate and ease my client’s relationship with their money. I look forward to working with you. George #CFP #CIMC #AIF #financialplanner #advisor #finance #investments

The Sandwich Generation is defined as a demographic of the population that are caretakers for elderly parents while still supporting their own children. This creates an emotional and financial struggle in many situations. In some instances, more funds are being spent on elder care than child-rearing.

What a unique, brazen, foolhardy idea; that a group of people could comprise their own nation without a king or queen under a democratic rule. The experiment worked. Not smoothly, not without some bumps along the way, but still with the same goal of life, liberty and the pursuit of happiness – our unalienable rights.

A touted way of marketing in today’s business world is to cater to a specific niche. I have been exploring how I can apply this to my financial advising business. But I don’t want to limit myself or my potential clients.

Two acronyms, ESG & SRI, might not mean that much for many investors but for some investors – Hey, Millennials!! – it might mean a world of difference in the equities they choose. Do you “eat clean” or adhere to a vegan lifestyle? Maybe you’re a “gym rat”, practice yoga or run marathons? Have a cause; Cancer research, smoke-free, support lightening the marijuana laws, part of the LGBTQ community, believe in palliative care, ... The list could go on, and on

I’m sure you’ve all heard the ads espousing “Crash-Proof Retirement”. I know I’m getting tired of hearing them. Are you interested? Do you believe in the concept? I will try to give you a brief idea of what type of investment is being promoted by these advertising spots.

They are an elderly couple, each earned a high salary prior to retirement. Both felt it was important to invest a healthy portion of their salaries. There is just one small problem now; one of them is strongly risk-averse, preferring conservative investments such as certificates of deposit and money market funds, while the other one is a risk taker who still loves tech and biotech stocks and initial public offerings – IPOs. A clash of investment styles is common in marriages.

Do you have a legacy plan? In terms of the future, make sure there is a plan in place for your own family members or survivors at the time of mortality so there is less weight and less difficulty for them. I thought this would be an appropriate time to talk about the missteps that could possibly occur during a time of loss and how we can become a victim of bad or rashly made decisions.

Client Fee Structure Options: Potential clients of a financial advisor fall into one of three categories as outlined below; commission as regulated by the financial industry, managed assets or a fixed fee. The category you might fall into depends on YOU! Your plans, goals, risk tolerance etc. My job, through our conversations, is to explain where you fit and why. #financialadvisor #investing #fees #FINRA

I am an advisor of quite a few long-time clients who are approaching their twilight years. Positioning them for this next stage of life is a major concern of mine, especially the ones living alone. Elders living alone can face a risk of higher health issues and/or depression.

Academics and finance professionals sometimes refer to the “risk-free rate of return” as a benchmark; in this context, the risk-free rate is the yield on cash assets, where you’re guaranteed stability of principal even as you pick up a slight (these days very slight) return.

Bonds; Interest-rate Risk, Credit Risk, Inflation, Reinvestment Risk Foreign Bonds; Currency Risk, Geopolitical Risk

Academics and finance professionals sometimes refer to the “risk-free rate of return” as a benchmark; in this context, the risk-free rate is the yield on cash assets, where you’re guaranteed stability of principal even as you pick up a slight (these days very slight) return.

At Chestnut Investment Advisory we also offer a unique way of investing called $ymbil. $ymbil is a self-motivated online investment platform that assesses your investment risk profile and offers recommendations for a risk-appropriate managed approach. $ymbil is for all types of investors from novice investors opening their first account with small dollars to the experienced investor who wants a simple, quick, and easy way to invest capital.

We feel that the only difference between an aggressive investor and one who is risk averse is the relative weighting of equities, bonds, and cash in their portfolios. Aggressive investors would have more equities: typically 80% to 90% of their total portfolio’s value. Risk-averse investors would typically have as little as 10% of their portfolios in equities.

I won’t bore you with the statistics because you wouldn’t believe me. All the numbers on aging are mind-numbing. For example, women live about five years longer than men and are far more likely to suffer from Alzheimer’s disease.

As you probably know, asset allocation is a main topic of discussion on my radio show. Your investment funds need to be divided into risk, less risk, and low risk. The portion allotted to each segment depends on many factors. As you move through your lifetime from your first day at a full-time job until you go to your reward, bonds play a greater, and greater, and greater role in your portfolio.

Life is one decision after another considering small, medium and large goals. It would appear that we could divide them in half - good decisions vs bad decisions. The benefit of a good decision is a general feeling of satisfaction. But perhaps I’m beating around the bush; and it is a big bush.

Our goal is to help our clients create a custom tailored investment portfolio designed to try and fulfill your many specific requirements and constraints. We firmly believe, regarding your money, that we take every effort to help you with your planning. Our approach is designed to help you articulate your true and realistic financial and investment objectives. Everything we recommend is based on listening to you.

Chestnut Investment Advisory was established in 1988. It is a financial advisement and wealth management firm. In 1993, after four years of study and testing, the Certified Financial Planner - CFP® license was granted to George Toth.

Let’s talk ETFs. First, what does ETF stand for – Exchange Traded Fund, and what does that define? An ETF will allow any financially sized investor to build a first class portfolio that will have superior transparency and lower expenses.

For many investors, the thought of reviewing the performance of their portfolio over the past year is about as appealing as walking through seaweed; to swim you have to traverse the muck. Chestnut Investment Advisory offers a better way to enjoy the scene.

Retirement, it is the best of times and it is the worst of times…but there’s always the grandchildren. What does it mean to retire? I think there are 6 points to consider among the many other points.

How would you like to work hard your entire life to achieve financial success, only to lose it by making uninformed estate planning mistakes? Those mistakes can result in your family losing over half of the assets you have accumulated. They can destroy much of what you worked for your entire life not to mention inflicting a great deal of heartache and pain on the people you love.

I will explain the fundamental issues upon which our relationship is based, how an advisor is compensated for service, and list a partial explanation of the benefits for each category. We can help you meet your future goals, safely, securely, at your own comfort level.

If you are happy with the state of your financial highway, go no further, stop. If you have your finances and investments under control and well directed, roll on. On the other hand, financial and investment potholes will blow your tires. Consider these tips and avoid deep holes. On you financial and investment road ahead.

This article is an algorithm for Financial Planning. This, however, is NOT the six step financial planning process of policy development. Rather, it is a way to notch some trees as we move toward a market correction or disturbance, and get to a subsequent clearing …

I saw the writing on the wall and the floor, big business was not for me. Sloshing around in my mind was the fact that I had to make money, and fast. As a 32 year old the question of what I wanted to be when I grew up was large.

Growing up in the 50’s did not prepare me for the 21st century’s demands. In those days, “flying by the seat of your pants” was possible, if not a good idea. The times were tolerant and settled. (I am not talking about the social or cultural attitudes.) I mean, if you did not plan your financial life, you could scrape by.

Over the past decades, trusted advisors have looked for the best ways to inform, structure and build sound financial and investment strategies for their clientele. Contrary to popular belief, financial planning is not investment planning nor is it designed to accurately predict or handle the fluctuation in market trends; it is done to help formulate knowledgeable and well-formed financial strategies with the greatest chance for success over long periods of time.

I am letting The Big Secret out of the bag! There is no bigger secret than planning! People do not plan to fail, they fail to plan. The process of financial planning or investment policy development is a challenge. Most people plan in reverse: they plan after the fact. Bad. All planning should be done with the goal in mind.

Fear and Greed – these two emotions can wreak havoc on even the most well-intentioned investor. It’s been this way since – forever.

The process of Financial Planning is an art and a science. When it was developed over 60 years ago, it was the intersection of the private banking and investment industry. Along the way, risk management, goal setting and other analytical methodologies were added. And as such, the process has split into 2 usages: one Goal Based and the other Cash Flow Based. Cash Flow Based, or at Chestnut what we call Gap Analysis, is more complex, and a better way to achieve your objectives.

"Whoever is careless with the truth in small matters cannot be trusted with important matters." – Albert Einstein My industry is one of the most regulated when you compare it with others. I am regulated by my CFP Board of Standards, the Institute of Investment Management, FINRA, the PA Department of Banking and Securities, and the broker/dealer I operate through; all are overseeing my activities.

Early retirement may not be all it’s cracked up to be. How so you ask? It’s not the money here; it’s the gestalt of psychology for early retirement. Is the whole really worth the sum of its parts?

There are many keys to investing. Here are five that have stood the test of time.

With today’s costs of a college education sharply rising, a 529 plan is a tax-advantaged savings plan that can help save for future college expenses. Introduced in 1996, 529 plans are sponsored by states, state agencies, or educational institutions and may vary slightly between states.

The future is both full of peril and opportunity. Money has been created and destroyed at an unparalleled pace. Money is racing around in fiber optic cables, impulses powered by a nascent global economy. Like it or not, we are headed to that dock, with all the peril and opportunity money can buy.

Mr. Dumpty's imprudence is clear. The market is surely unsafe if you are just going to hang out; playing around; from there you could fall and never get back up.

I am not a big fan of Jeopardy! or reality TV. Reality is challenging enough for me, thank you. I do watch many movies, and I especially love classic movies. The old ones I can re-watch, rewind and re-watch, and so forth. There are so many to choose from that I will never run out of options. After all, having options is what makes this country best.

Ten ways to tell if an elder is losing it. Concerned about an elder? The Alzheimer's Association highlights ten early signs of dementia.

The previous three foundations in this series were Risk Management, Cash Management, Variable Assets and now a description of Fixed Assets. As the title implies, a Fixed Asset has the quality of a “fixture”. It just sits there. The image is of a table or foundation for a house. Each corner has to be set on solid ground and supports the architecture, the walls, wires and well-being of the inhabitants. Otherwise, the table wobbles and you spill the milk.

This Foundation will take a little longer to finish because it is so important to capture the entirety of why, what and how to build your financial house. These Foundations are the simple cornerstones set on solid rock, not sand, upon which you may erect just about any financial or investment future.

The Second Foundation is Cash Management. Under Cash Management fall all the income, expenses, inflow and outflow schedules, conscious or unconscious, and formalized into the dreaded BUDGET. A budget is a snapshot of where you are right now. It can include an additional column called projected budget composed in the beginning of the year, then accompanied by the actual money spent, earned or received

Evaluating insurance coverage isn’t uppermost in the minds of most of you, and it won’t insure a long and happy life or marriage. But, the right insurance can go a long way toward shielding you against the kinds of financial calamities that can strain a budget and sometimes break a marriage. Here are several key insurance areas that I recommend all of you to review.

First Installment of a Five Part Series: Over twenty years ago when I first got my start in the financial services, I was taught about Four Cornerstones of Money Management. They are Cash, Variable Assets, Fixed Assets and Risk Handling. I understood then that every client had to have something in each of them, or at least address them in their asset allocation.

Dollar-cost averaging involves investing a fixed amount on a regular basis, regardless of share prices and market conditions. Theoretically, when the share price falls, you would purchase more shares for the same fixed investment. This may provide a greater opportunity to benefit when the share prices rise and could result in a lower average cost per share over time.

RISK TOLERANCE is the degree of variability in investment returns that an investor is willing to withstand. You should have a realistic understanding of your ability and willingness to stomach large swings in the value of your investments; if you take on too much risk, you might panic and sell at the wrong time.

Keep Your Financial Information Safe Online With an increasing amount of personal financial information available online, it is more important than ever consumers follow the right precautions to ensure the security of their private financial information. Below are five proactive cybersecurity best practices to help keep your information safe.

A revival movement is sweeping the nation. Millions of souls have already been converted, thanks to a charismatic preacher and his passionate disciples.

Any financial process begins with necessary changes in financial behavior. The degree of change varies based on financial priorities, but, in the end, it's about adopting good habits and abandoning bad ones. Here are some ideas: start with nickels and dimes, attack the highest-rate debt first, refinance if you can, make debt-fighting a family lesson, set some post-debt money goals, go debit.

We Are a Two Toothpaste Family!Jensen and I have agreed to disagree about toothpaste – she has hers and I have mine.  Except hers is out because it matches the bathroom, mine is hidden in the linen closet. No troubles.When we were newlyweds, we had separate bank accounts too.  She didn’t want to do Wills, POA’s, an Advance Medical Directive, nor a Living Will.  Of course, today, we have solved the larger issues, so the toothpaste is a lower priority.What about yo