Do You And Your Partner Have The Same Money Values?

We all know that being a part of a couple takes work and that open, honest communications is key! We read an interesting article that spoke about how individuals choose their partners and that often times, we match with those who have similar interests and values as ourselves. However, while this may be true, Jenny Olson, an assistant professor of marketing at Indiana University who studies couples’ financial decision-making, found that “when it comes to money-management styles, opposites do attract.” As financial advisors, we have seen many cases where two partners have different backgrounds and relationships with money. It is very common for partners to have different approaches to their finances, but it’s important in how they to approach the merge them.

In order to have a relationship that is strong financially, as well as emotionally, remember to regularly discuss and review your finances and goals to help make sure that you and your partner are not only on the same track, but on the right one for you as a couple. When you become serious with your partner or even get married, many couples have to sit down to talk about both their relationship with money and how the merging of finances will work. While we know its not easy, its important in order to avoid financial lies. In fact, we read an interesting article that said financial lies between partners are way more common than you’d think. The study from Forbes Advisor found that the top three financial lies American’s tell each other are relating to debt, spending and large purchases, and spending patterns. While you and your partner may not have the same spending habits or relationship with money, but finding a happy medium or compromise to allow honesty is extremely crucial.

At Sherman Wealth, we work with many newly weds, young professionals and couples on the merging of their finances and how to find a medium that works for both parties. As we have said time and time again, communication, transparency, and honesty is key to a healthy relationship, especially as it relates to finances. We know money conversations can be awkward and uncomfortable, but they really are necessary for couples wanting to build a financial roadmap.

So, let’s take a look at some important topics couples should regularly review and discuss.

  1. Retirement Plans – If you’re a young couple, retirement may not be your top priority, but remember – through compounded interest –  a small amount invested now may go a long way in the future. Be sure to reexamine your goals and your portfolio to make sure that you’re both saving enough for retirement and your asset allocation is appropriate given market fluctuations and volatility.
  2. Life Insurance – While not a pleasant topic, it’s important to discuss with your partner what will happen in the event that one of you passes prematurely.
  3. Wills and Trusts – Like life insurance, wills and trusts also are important for protecting your loved ones. They’re especially critical if you have children, or a significant amount of assets.
  4. College Funds – If you have children, or are considering having children, you definitely want to discuss your thoughts on college and how much you as parents want to fund it, if any. Discuss a saving strategy to help pay for college tuition.
  5. Health Insurance – Make sure that you and your partner are both covered, and that you understand the differences – and overlaps – in  your plans. Is there any unnecessary overlap? Should you purchase more coverage to protect yourself?
  6. Major Purchases – If you are planning to make a major purchase such as a home, or a new car, you’ve probably already talked with your partner about it. You may not have talked about how you’ll pay for it though! Talk through these goals together and set realistic strategies to achieve them.
  7. Monthly Expenses – Review your expenses each month to see where you can make changes and cut back. Consider making a budget together to make sure that you are allocating your income in the best possible way for both of you.

While financial topics can be difficult to discuss, they’re an important part of a happy and successful relationship. As mentioned prior, here at Sherman Wealth we help couples facilitate these conversations, especially when it comes to merging finances and creating combined goals. Make sure that both you and your partner are on the same page when it comes to finances, and set short and long term goals together to help keep you both on track.

If you need help going over your finances or coming up with a plan, you may want to seek working with a financial advisor to help point you in the right direction, based on your own goals, and help facilitate difficult, but important, discussions. If you have any questions, email us at or schedule a complimentary intro call here.

The Importance Of Goals Based Financial Planning

In the realm of personal finance, goals-based financial planning is a strategy that helps shape your financial future and roadmap by aligning your short, medium, and long-term goals. Given the time of year, you may be thinking about establishing a “top to bottom” full financial tune up. By aligning one’s financial strategy with specific objectives, such as retirement, education, or homeownership, goals-based planning provides a structured framework that not only shapes financial plans but also helps align other factors of your financial life such as asset allocation, risk tolerance, and overall wealth management.

The foundation of goals-based planning lies in identifying and prioritizing personal and financial achievements and aspirations. Whether short-term, medium or long-term, these goals serve as the compass, directing individuals towards better informed decision-making. A goals-based approach prompts reflection on your wants versus your needs, allowing you to create buckets and strategies to reach all your different goals.

One of the primary advantages of goals-based planning is to create a strategic asset allocation that aligns comfortably with your goals. Rather than adopting a one-size-fits-all investment strategy, individuals can tailor their portfolios to align with their own specific goals. Goals-based planning also encourages a strong understanding of risk tolerance. Different goals may call for different risk levels and comfortability during times of volatility and investor behavior during times such as recent, with all time highs in the stock market. By utilizing goals based planning and working with a financial advisor to sift thru your priorities and portfolio, you can strike a delicate balance that aligns with both your comfort level and financial goals.

Life is dynamic, and circumstances evolve. So, it’s important to remember that as your life evolves and your priorities shift, your financial plan can be revisited and tweaked to accommodate new goals, unexpected challenges, or changes in risk tolerance. This adaptability is crucial in ensuring that the financial roadmap remains relevant and effective throughout life’s different stages.

So in conclusion, when thinking about where to get started on your financial plan, goals based planning can help you define and prioritize your objectives, shape your financial plan, optimize asset allocation, and navigate your personal financial roadmap with greater precision. If you are seeking a spring cleaning financial tune-up or are interested in learning more about how we incorporate goals-based and and top to bottom planning in our process, email or schedule a complimentary 30-minute call here.

Are You A HENRY? Here’s How HENRYs Can Save and Grow Their Wealth

In today’s dynamic economic landscape, an emerging demographic has emerged: HENRYs, or High Earners Not Rich Yet. These individuals, typically professionals in their prime earning and accumulating years, are not yet High Net Worth individuals. HENRYs possess a unique opportunity to not only save but also grow their wealth substantially. Let’s explore how HENRYs can leverage their financial situation to secure a promising financial future.

HENRYs are characterized by their robust incomes, often exceeding national averages, yet their wealth accumulation is not where they might want it to be. These individuals, typically in their 20s to 40s often times despite the high income, face obstacles such as student debt, lifestyle inflation, and delayed financial planning, hindering their wealth-building efforts. So it’s extremely important that they implement smart financial habits early on, build a financial plan, and automate the process to accumulate their wealth and make smart financial decisions.

So, let’s take a look at some places where HENRYs can improve their financial habits. First, budgeting. HENRYs can harness their considerable incomes by implementing strategic budgeting and expense management techniques. By setting up an accountable and accurate budget, they can redirect resources towards savings and investment. For those with student loan debt or other debt, creating a strategic debt repayment strategy is prudent. Given the higher interest rate environment we have been living in, there are tactical moves debt goers can make to keep their financial plan in line.

Next, let’s discuss investing. HENRYs have the perfect opportunity to leverage their wealth by investing wisely and early. By allocating funds to diversified portfolios, including retirement accounts, taxable accounts, and other diversified assets, they can grow their wealth overtime to achieve their short, medium, and long-term goals.

If you’re a HENRY, but are not quite sure where to get started on your financial journey, consider seeking advice from a financial advisors or professional who can provide you with customized strategies to optimize your financial situation. Here at Sherman Wealth, we build out personalized solutions and financial plans to help all clients, including HENRYs make smarter financial decisions and strategically grow their wealth. Professional guidance helps navigate complex investment decisions, minimize tax liabilities, and plan for future milestones.

As discussed in this blog, HENRYs have a vast opportunity to maximize and optimize their financial future. Building a solid foundation early in their careers lays the groundwork for long-term growth and financial security. If you are a HENRY and are seeking financial guidance, email or schedule a complimentary intro call here.

Spring Financial Planning and Clean-Up: March Madness Edition

As the air warms up and spring is arriving, it’s the perfect time to shake off the winter weather and give your finances a thorough cleaning. From revisiting your financial goals to tidying up your budget, here’s a consolidated guide to March financial planning and spring financial clean-up.

Spring is an excellent time to reassess your financial goals. Whether you’re saving for a vacation, planning for retirement, or aiming to pay off debt, take a moment to review your objectives. Are they still relevant and achievable? Have your priorities shifted? Adjust your goals accordingly to ensure they align with your current cash flows, timeline, and financial situation.

Spring cleaning your finances begins with a thorough evaluation of your budget. Review your income and expenses over the past few months to identify any trends or areas for improvement. Are there any unnecessary expenses you can cut back on? Can you reallocate funds to prioritize your financial goals? Adjust your budget accordingly and periodically.

March presents an excellent opportunity to review your investment portfolio. Evaluate the performance of your investments and assess whether they still align with your risk tolerance and long-term objectives from when they were set. While we don’t recommend jumping in and out of the market, it’s important to find a proper asset allocation you can stick to for the long term so you might consider rebalancing your portfolio if necessary, or having a financial professional take a second look.   Additionally, take advantage of any tax-efficient strategies, such as maximizing contributions to retirement accounts or harvesting tax losses.

Your credit report plays a crucial role in your financial health. Check out your credit score and look for any errors or discrepancies that could negatively impact your credit score and take steps to address them promptly. Monitoring your credit report regularly is an essential part of maintaining good financial health. Conversely, ensuring you make the right decisions daily to keep your credit on the right path to improvement is key.

Given the time of year and tax filing season in full swing, spring is the perfect time to declutter and organize your financial documents. Gather all your important paperwork, such as bank statements, tax documents, insurance policies, and investment statements, and create a system for storing and organizing them. Consider digitizing your documents for easy access and backup. Having your financial documents organized will make it easier to track your finances and help you during tax time. Tax season is also a great opportunity to review your whole financial plan as your documents are gathered and you may be identifying tax advantageous strategies to improve on.

Next, automating your savings is one of the most effective ways to build wealth over time. Take advantage of automatic transfers to your savings or investment accounts to ensure consistent contributions. Set specific savings goals, whether it’s an emergency fund, a down payment on a home, or a college fund for your children, and automate your contributions accordingly. By making saving a habit, you’ll steadily progress towards your financial goals without even thinking about it.

March is not only a time for spring cleaning your home but also an opportunity to refresh and revitalize your finances. By revisiting your financial goals, evaluating your budget, reviewing your investments, checking and improving your credit, organizing your financial documents, planning for taxes, and setting up automatic savings, you can set yourself up for financial success in the months and years ahead. So why wait? If you have any questions on the topics discussed in this blog or are looking for your spring financial clean up, email or schedule a complimentary 30-minute call here.

Navigating Life’s Milestones With Financial Planning

Life is a journey marked by various milestones, each accompanied by its own unique set of challenges and opportunities. As humans, we all have goals and milestones that look different, but may involve similar finanicial strategies to achieve them. Whether you’re saving for a down payment on your first home, planning for your children’s education, or looking ahead to retirement, financial planning is essential for achieving your goals and preparing for these milestones. In this consolidated guide, we’ll explore the key aspects of financial planning for life’s different milestones and goals.

A great way to get organized and start planning and strategizing for your life milestones is to begin by identifying your short-term, medium-term, and long-term financial goals. Prioritize your goals based on their importance and urgency, and ensure that your goals are specific, measurable, achievable, relevant, and time-bound (SMART).

Next, work on your budgeting and saving. Develop a budget that aligns with your income, expenses, and financial goals. Track your spending habits and identify areas where you can cut back or save more. Build an emergency fund to cover unexpected expenses or financial setbacks. While you’re working on building up your savings, take a look at your debt and create a strategy for paying off high-interest debt, such as credit card balances or personal loans. Avoid taking on new debt you cannot afford, and prioritize debt repayment in your budget.

When creating a financial plan to achieve your different goals, it’s important to take into account your time horizon for your various goals, and your overall risk tolerance and investment objectives when choosing investment vehicles. Regularly review and rebalance your portfolio to ensure it remains aligned with your goals and risk profile. Regardless of the goal you are striving for, start saving as early as possible to take advantage of compounding interest and maximize your savings.

Financial planning is a dynamic process that evolves over time as you progress through life’s milestones and goals. Consider working with a financial advisor to develop a comprehensive retirement plan and savings/investment strategy. By setting clear objectives, budgeting effectively, managing debt responsibly, investing wisely, and protecting your assets, you can achieve financial security and build a solid foundation for the future. Remember to regularly review and adjust your financial plan to adapt to changes in your circumstances and priorities. If you have any questions on how you can better improve your strategizing for your goals and milestones, email 

The Financial Goals Of Americans Are Changing

It’s been quite an interesting start to the year for the US economy as we are now living in a rising interest rate and inflationary environment after a few years of historically low interest rates during the COVID-19 pandemic. So, as the US consumer is adjusting to this new economic climate, their preferences and goals may be changing, including spending habits and financial goals. Have your financial goals shifted this past year? Does your budget look different ? Are you focusing more on short-or-longer term goals? 

Well, if your goals and preferences have changed, you are not alone! We saw an interesting study that found as we are headed into 2023, many Americans are now focusing on shorter-term financial goals instead of long-term ones. In fact, according to Fidelity’s New Year Financial Resolutions study, surveying 3020 Americans, “more than half ‘53%’ say it’s more important to pay down credit card debt and set aside emergency savings over long-term objectives like retirement and college savings, and roughly half say they’re ready to ‘live sensibly’ or ‘plan ahead’. According to the data from this survey, there is a larger sense of financial pessimism than last year and many reported they feel they are in a worse financial situation than the prior year. 

While we know the start of this year as well as last year has been uncertain and a large adjustment for many with the banking crisis, rising interest rates and a higher cost of living, we found this statistic surprising. In a time where individuals are feeling financial doubt, it’s extremely important to seek financial education. Often times, individuals make financial decisions that are not beneficial purely because they are uneducated on the matter. Given this economic uncertainty we are facing and may continue to face in this new year, it’s important to not prioritize short over long-term goals or vice versa, but to make a well diversified plan that includes a way to save for both short and longer-term goals so that you are not derailing one piece of your financial plan. If you are feeling financially unsure or are uncertain how to separate your financial goals and make an achievable plan to reach them, we are here to help you! Email us at if you are interested or schedule a complimentary 30-minute call to discuss your financial needs and questions here

February: Financial Fitness Month – Your Checklist for a Healthier Financial Household

As February rolls in, it brings with it not just the season of love but also an opportunity to focus on another crucial aspect of our lives: our financial well-being. February is recognized as Financial Fitness Month, a time that can be allotted to assessing, improving, and fortifying our financial health. Just as we prioritize our physical fitness, nurturing our financial fitness is equally essential for a secure financial plan. So, let’s dive into how you can leverage this month to enhance your financial household with a comprehensive checklist:

1. Set Clear Financial Goals: Start by defining your short-term and long-term financial goals. Whether it’s saving for a vacation, buying a home, or planning for retirement, having specific, measurable objectives provides direction and motivation for your financial journey.

2. Review Your Budget: Take a close look at your income and expenses. Create or update your budget to ensure that your spending aligns with your financial goals. Identify areas where you can cut back or reallocate funds towards your priorities.

3. Track Your Spending: Monitor your expenses diligently throughout the month. Use apps or spreadsheets to track every purchase and analyze your spending patterns. This awareness will help you identify unnecessary expenses and make informed decisions about where to trim your budget.

4. Assess Your Debt Situation: Evaluate your outstanding debts, including credit cards, loans, and mortgages. Develop a strategy to pay off high-interest debt more aggressively while making timely payments on all accounts. Consider consolidating or refinancing debt to lower interest rates if feasible.

5. Build an Emergency Fund: Aim to set aside funds equivalent of living expenses in an emergency savings account. Having a robust emergency fund provides a financial safety net during unexpected setbacks like job loss, medical emergencies, or car/house repairs.

6. Review Your Insurance Coverage: Assess your insurance policies, including health, life, auto, and home insurance. Ensure that you have adequate coverage to protect yourself and your loved ones from unforeseen events. Compare quotes and consider adjusting your coverage if necessary.

7. Maximize Retirement Contributions: If you have a retirement savings plan, such as a 401(k) or IRA, maximize your contributions to take advantage of employer matches or tax benefits. Review your investment allocations and adjust them based on your risk tolerance and retirement timeline.

8. Invest Wisely: Educate yourself about investment options and strategies that align with your financial goals and risk tolerance. Consider diversifying your portfolio across different asset classes to mitigate risk and maximize returns over the long term.

9. Plan for Major Expenses: Anticipate upcoming major expenses, such as home repairs, education costs, or weddings, and start setting aside funds accordingly. Establish sinking funds or dedicated savings accounts to earmark money for specific purposes.

10. Seek Professional Guidance: If you’re unsure about certain financial matters or need personalized advice, don’t hesitate to consult a financial advisor. A professional can provide guidance tailored to your unique circumstances and help you navigate complex financial decisions.

As you embark on your journey to improve your financial household this February, remember that small, consistent steps can lead to significant progress over time. By following this checklist and prioritizing your financial well-being, you’ll be better equipped to achieve your goals, weather financial storms, and enjoy greater peace of mind. Let us know if you have any questions on accountability this month and how you can improve your personal financial situation. Email or schedule a complimentary intro call here.

Your End Of The Year Financial Checklist

As we approach the end of the year, it’s time to take stock of our financial well-being and ensure that we’re on the right track for the year’s end and beyond. As we head into December, it’s a good time assess our priorities and ensure we’ve covered all the essential tasks. In this blog post, we’ll discuss your End of The Year Financial Checklist, which includes some “do not pass go” items to check off before the end of the year. So, let’s dive in.

  1. Take Your RMD (Required Minimum Distribution):

For those who have reached the age of 72, taking your RMD from retirement accounts is a crucial financial task. The deadline for RMDs is December 31st, so now is the time to calculate the amount you’re required to withdraw from your IRA or 401(k) accounts to avoid penalties. Consult with your financial advisor to ensure you’re taking the right RMD amount.

  1. Check Your Contributions:

Before the end of the year, it’s essential to review and maximize your contributions to various financial accounts. This includes your retirement accounts, such as a 401(k) or IRA, but also other accounts like Health Savings Accounts (HSAs) or 529 Plans for college savings. Making the most of these contributions can help reduce your taxable income and grow your nest egg for the future. Confirm with your HR department or financial professional about your allowable contributions and deadlines.

  1. Manage Cash Flows and Holiday Spending:

Your fall season spending can quickly build up before your eyes, with holiday spending and end of the year bills. To lighten the burden and ultimately avoid financial stress, create a comprehensive budget that accounts for holiday gifts, travel expenses, and entertaining costs. It’s important to strike a balance between enjoying the season and staying within your means, but planning ahead can help avoid any unforeseen surprises.

  1. Tax Planning for the Spring:

Spring might seem far off, but it’s never too early to begin thinking about your tax situation. Take some time to assess your financial portfolio and plan accordingly so again, there are no surprise come tax season. Consider speaking with a tax professional or financial advisor who can provide guidance on effective tax planning strategies. You might also explore opportunities for charitable donations, such as a donor advised fund and explore tax-efficient investment strategies.

In this season of change and preparation, December 1st reminds us to prioritize our financial well-being. Your Year End Financial Checklist is a helpful guide to ensure you’re on the right track as we approach the year’s end. Similar to everything finance, building your personal financial checklist is unique to you and your family’s personal financial situation, so some of the items above may or may not apply to you. However, as we approach the end of the year, these are good concepts and ideas to think about to ensure you are maximizing your opportunities before year end. If you have questions, or are seeking help executing the tasks mentioned above, email us at or schedule a complimentary intro call here.

Are Your Finances Negatively Impacting Your Mental Health?

Does money and financial conversations stress you out? Do you feel uncomfortable when having money discussions with your partner? If so, you’re not alone. Money conversations can bring up underlying insecurities and cause anxiety amongst individuals. Given the current market environment and economic uncertainty, extreme volatility, and newly reported record high inflation data, it’s extremely important to discuss mental health as it relates to money.

According to a survey from Bankrate, “some 42% of U.S. adults said that money has a negative impact on their mental health” (The study included nearly 2,500 American adults and took place between April 6 and 8.). We found this statistic alarming, as they also reported  “that 28% of those who said money has a negative impact on their mental health worry about it on a daily basis.” This data reinforces not only the importance of mental health awareness, but the importance of utilizing financial strategies to lessen this overwhelmed feeling individuals have when doing daily financial tasks such as checking their bank statements and paying bills.  

Establishing a financial plan is a great place to start when trying to organize your financial life. If you are feeling anxious, maybe it’s a good time to revisit your budget, risk tolerance, and asset allocation. As mentioned in a previous blog, many Americans actually do not have a financial plan, which means they have no road map to follow. At Sherman Wealth, we always say that life is complicated, but your finances don’t have to be. Consider working with a financial professional to lessen the burden and anxiety you feel when tackling your financial life on your own. With customized solutions and behavioral finance strategies, we can provide you with a plan that will seamlessly lead you in the right direction. 

As mentioned prior, we know money topics can be uncomfortable and scary for some, but it’s very prudent to recognize it and utlilize financial strategies so it does not negatively impact your mental health. We recorded a podcast episode with Music City Pysch’s David Pearl and he provided us with tips on having transparent, honest, judgment-free, conversations with your partner. If you have any questions about your financial situation or are feeling like money is negatively impacting you, please reach out to a mental health professional to  discuss or schedule some time here and we are happy to help. 

Are You Having Trouble Saving Money In This Environment?

As the economy continues to adjust to this higher interest rate environment with future uncertainty on what the Federal Reserve will continue to do with hiking interest rates to combat high inflation, many individuals are too feeling an adjustment. We have been finding that many clients and prospects are needing to adjust and revisit their budgets in this environment, and pay closer attention to the amount of cash they have on hand. Do you feel this way too? Are you keeping a closer eye on your spending?  Have your spending habits changed or are you feeling the impact of higher prices? Let’s take a look at how Americans are feeling about their costs and spending. 

According to a survey from the Certified Financial Planner Board of Standards, “63 percent of Americans are concerned with purchasing necessities such as food, their job security (56 percent), paying their rent or mortgage (55 percent), saving money (82 percent), and the national economy (82 percent).” It’s clear that this higher cost of living is having an impact on the consumer. In fact, credit card balances are at an all time high while American’s emergency savings accounts are dwindling. According to a survey by MagnifyMoney, “Nearly 1 in 5 Americans admit they saved no money at all in 2021. While these stats are not meant to cause anxiety or stress, noting where the economy is a great reason to discuss intentional spending. 

Intentional spending and frequent check-ins on your financial plan and budget is crucial, especially in this environment. Whether you had a financial plan created for you years ago or just a few months ago, it’s extremely important to check in with your plan and budget often to ensure it still works for you. 

When you are intentional about your spending, you separate your wants versus your needs as well as your short and long term goals, creating buckets to achieve your different wishes. We find that many individuals don’t sit down to create a realistic budget and end up spending more than they bring in, resulting in negative cash flows and added financial stress. Along with intentional spending, finding an amount that you are comfortable with to sock away each month is a great way to stay responsible and build up your emergency fund. We just wrote a blog about the importance of a mid-year financial check-in which is a great opportunity to re-visit your spending, budget, cash flows, and savings strategy. 

The survey also found that “younger Americans were also more likely to make decisions that could impact them negatively long term, as investors under 45 were more likely to delay credit card payments (29 percent versus 17 percent) and delay loan payments (25 percent versus 16 percent).” We know that financial planning might not always be top of mind for you, especially if you are a young professional just starting out, but setting up a financial plan from a young age and making these financial tasks a priority can be extremely beneficial to your financial future. Delaying loan and credit card payments can be a very slippery slope and get far away from you quickly if not handled appropriately, so make sure you create a plan and budget that works for you to avoid getting yourself into a sticky situation. 

We know that financial planning can seem scary or overwhelming which is why here at Sherman Wealth make financial planning simplified. We take overwhelming topics and make them easily understandable for our clients to ensure we educate and help them every step of the way on their financial journey. If you have any questions and want to revisit your financial plan or spending habits, email us at or schedule a complimentary 30-minute call here