Launch Financial- How To Work Through Money Conversations With Your Significant Other, with David Pearl

Check out our podcast episode, “How To Work Through Money Conversations With Your Significant Other, with David Pearl” (You can find the direct download here). In this episode, we are joined by David Pearl, a LCSW a psychotherapist and consultant who specializes in treating professionals, couples, performing artists and athletes. Together we explore tips and advice on the money conversations you should be having with your significant other and when entering a new relationship. When two people with different backgrounds, risk tolerances, and views on money begin to merge their lives, things can get messy. David walks us through how to make those situations lighter and easier on your relationships.

A little about David, he aims to provide a safe and supportive environment to strengthen self-esteem and facilitate more meaningful connections with family, friends, professional colleagues, or teammates.

David obtained his Master’s degree from The Silver School of Social Work at NYU and his Bachelor’s degree in Human Development and Family Studies from the University of Wisconsin-Madison. He is formally trained in Acceptance & Commitment Therapy (ACT), and has certifications in Imago Relationship Therapy and Prepare/Enrich Premarital and Marital Counseling. David is dual licensed in New York and Tennessee, and works with clients on an ongoing basis in both locations.

Prior to founding Music City Psych in Nashville, TN, David provided psychotherapy and performance coaching at Union Square Practice in NYC, counseling to individuals, couples, and families struggling with hematologic cancers at Mount Sinai Hospital, as well as psychodynamically oriented individual and couples counseling at The National Institute for the Psychotherapies (NIP).

The Extended Tax Deadline Is Approaching. Here’s What To Know

For those of you who have yet to file your 2021 tax return, there is a little under one month until the October 17th tax deadline extension. If you are utilizing the tax extension this year, now is the time to prepare and make sure you have everything you need in order, which includes getting organized, communicating with your financial advisor and tax preparer, or CPA. 

For those of you working with a CPA or tax professional, make sure you are promptly providing them with all the information necessary to file your return. Surprisingly, according to the IRS, an estimated all-time high of 19 million American taxpayers filed an extension for their 2021 returns. With these shockingly high numbers, think about filing your return as quickly as possible to try to avoid any complications or hiccups. 

Before filing this year, make sure you are accounting for all COVID-19 reliefs, such as the stimulus checks and the child tax credits. Make sure all your deductions and withholdings are in order and that you are aware of and prepared for any tax payments due or returns. In all, when dealing with your tax return, whether you file it on time or on the extension, it’s important you are prepared and aren’t waiting til the last minute to get your documents in order.

If you have any questions about your tax return or are looking for tax advice, email us at info@shermanwealth.com and we are happy to help or refer you to a tax professional. If you would like to schedule a complimentary 30-minute intro call, schedule it here

 

When Student Loan Payments Restart

We know the past year and a half has been quite the whirlwind, and as we approach summer and the economy continues to re-open, we want to bring light to some financial stress individuals may be facing. 

Federal student loan payments are set to resume on October 1, after an unprecedented 19-month suspension that was put in place to provide financial relief to borrowers during the pandemic.Borrower balances have paused now for over a year, with no payments required on federal loans since March 2020. 

The pause on payments was originally supposed to be in place for only two 7 months, but it was extended by both of the presidents administrations. We are unsure if it will be extended once again, but will continue to follow it for all of you with student loans who may have been partaking in this extension.  We have been following the recent news of proposals to President Biden to cancel debt for American’s and will continue to report as we learn more; however, for those with student loan repayments starting up soon, its important to start thinking about your financial situation and how that will change as you begin this repayment. For questions about your financial situation or advice on tools to help organize and automate your finances, reach out to us at info@shermanwealth.com or schedule a complimentary 30-minute conversation here.

Estate Planning in Uncertain Times

Although planning for your future is always a necessity, many people tend to wait until they are older to put their legal documents in order in the event something should happen to them. However, the rapid spread of the coronavirus has led to a skyrocketing demand for wills, even for those who aren’t middle aged or older. What once appeared to be a scourge that was primarily affecting the elderly and those with underlying health issues has now been revealed to hospitalize and kill those who are younger, seemingly at an alarming rate. The search term “getting a will” has risen sharply since March 8 and there have been tweets from doctors and nurses in recent days about wanting to get advanced health-care directives—living wills, power of attorney for health-care decisions and do-not-resuscitate orders—because they know their work might expose them to the virus.  Whether or not you are on the front lines of the fight against COVID-19, it is a good idea to make sure you have the following information completed and updated for you and your family should the need arise.

Wills & Beneficiaries

Now is a good time to check your existing beneficiary designations for each of your retirement accounts, annuities, and life insurance policies to make sure they are current and you do not have any lapses. In cases where family situations have changed, possibly because of divorce or birth of children or grandchildren, these designations aren’t often up to date. In the event you do not have a named beneficiary who survives you, your estate will be the beneficiary, which is rarely a good result. With a Will, you can generally leave any type of property to whomever you wish, with some exceptions. Wills can be contested in probate court, but beneficiary designations are legally binding.

Many people haven’t had an opportunity to change or update their beneficiaries since the SECURE Act was implemented.  See (https://www.investopedia.com/what-is-secure-act-how-affect-retirement-4692743) to review how your retirement may be impacted by the SECURE Act).

Durable Power of Attorney

A durable power of attorney is a written document where you designate another person (agent) to act on your behalf. In the event you become physically or mentally incapacitated, it enables your agent to handle your affairs. A person’s ability to name a power of attorney normally terminates upon their incapacity. With an immediate durable power of attorney, you grant your agent the authority effective immediately.

Health Care Proxy

Also called a durable power of attorney for health care, this document appoints a representative to make medical decisions on your behalf. You decide what your representative will have control over  (i.e., selection of health care providers, approval of tests and procedures, etc.). It is important to have an active health care proxy in place in the event you become incapacitated.

If you have adult children, you might want to make sure they also have health care proxies in place. In addition to having a health care proxy, a living will allows you to approve or decline certain types of medical care, such as life support, even if you will die as a result.

Trusts

If you have previously established a living or irrevocable trust, now is a good time to confirm that your trustees and successor trustees are still alive, willing to serve, and that you still want them to serve should the need arise. You should also confirm that all the assets you want to pass through your trust are correctly titled.

While the above topics are often difficult to think about, this also might be a good time to take a look at your financial plan as well. Depending on your circumstances, it might be beneficial to gift highly appreciated assets out of your estate at deep discounts. If you are in a low tax bracket, converting part or all of your Individual Retirement Account (IRA) to a Roth IRA could be an asset to your long-term retirement plans.  

Should you need any referrals for an estate lawyer, we are happy to put you in touch with someone.  If you have any financial questions, please contact us anytime.  We hope you are staying safe and healthy – we are all in this together!

Here are the Benefits of Sherman Wealth Financial Tools

If you budget your money, analyze your investments, and save for retirement, you’d likely benefit from being able to track your finances in one place. With financial literacy month around the corner, it’s a great time to discuss tools that you can utilize to simplify your financial life. Additionally, given the technological shifts due to the coronavirus pandemic and as we are all learning how to operate our lives from the confines of our smartphones and laptops, it’s crucial to continue to automate our lives, especially our finances. 

This is where we can help. Our state-of-the-art technology at Sherman Wealth allows you to track and stay on top of your finances, on your own time, and without charge. Life is complicated, your finances shouldn’t be. We know financial planning may seem like an overwhelming process, but by utilizing these tools, you can do everything in one place, at the tip of your fingers. 

With our comprehensive financial software, all of your financial accounts will be aggregated into one place, and you can use the tools to budget your money for short-term goals and prepare for the long run.  Additionally, through this holistic software, you can utilize the following tools: investment check up, fee analyzer, savings planner, net worth tracker, long-term goal planner, retirement planner, cash-flow planner, running balance sheet planner, and more.

If you have not utilized a financial software yet, we encourage you to consider a trial run of our software. Within minutes, you will be able to see your assets and liabilities in one tab. If you have any questions or would like to trial the software, please reach out to us at info@shermanwealth.com or schedule a complimentary 30-minute meeting here.

The Benefits of “Time” In The Market

As we hit mid-March of 2021, we think about the rollercoaster we’ve been on this past year. A year ago today, the stock market bottomed out. Given this wild ride and great volatility, it’s important to discuss the value of “time” in the market. We saw a very interesting tweet by Peter Mallouk, CEO of Creative Planning, which is a great depiction of what you should save incrementally at each stage of life to become a millionaire by 65 years-old with a 7% return.

As Peter Mallouk states above, “time” in the market truly does matter. It’s crucial to understand consistency, dollar-cost averaging, avoiding the noise, and understanding that there will be drawdowns in the market. Despite these drawdowns; however, stick with your long-term plan because the market will recover, as we have seen a year since the catastrophic lows. Starting early is an essential key to building your long-term wealth, as you can see in the figure below by JP Morgan.

For Brad’s deep dive on a year in the market and the true benefits of “time” in the market, check out the video below. If you have any questions about how to capitalize your financial situation or plan, reach out to us at info@shermanwealth.com or schedule a complimentary 30-minute consultation here

https://youtu.be/_0-eEe76bgg 

MCPS Business Pitch Challenge on March 19th

Brad Sherman is very honored to be asked to judge the MCPS Business Pitch Challenge on March 19th. Students from nine high schools will be participating in this year’s event. As an entrepreneur, Brad Sherman is thrilled to support such a wonderful event promoting leadership, financial literacy and empowerment, and creativity. With the lack of financial literacy around the world, this event is a great opportunity for students to start thinking financially and as an entrepreneur from a young age. 

The event will run from 9 a.m.–noon. Participating high schools are: Montgomery Blair, James Hubert Blake, Winston Churchill, Albert Einstein, Gaithersburg, Northwest, Northwood, Paint Branch and Sherwood. Students will pitch their business ideas for a solution to an existing problem, improvement of an existing product, or create a need for a product/service to a panel of local entrepreneur judges.

The Challenge will be aired via the MCPS homepage, the MCPS YouTube channel and MCPS-TV (Comcast 34, Verizon 36 and RCN 89).

Brad, along with representatives from the MCPS Business, Management and Finance Program Advisory Committee will serve as judges, mentors or supporters. The three top winning teams will receive cash prizes.

Please tune in on Friday, March 19th at 9 a.m. as these bright students pitch their business ideas. Check out our blog from the 2019 MCPS Business Pitch Challenge on ways we helped coach the students in preparation for the big event. Support student growth and empowerment by attending this wonderful event. If you have any questions about the event, email ASKMCPS@mcpsmd.org or let us know at info@shermanwealth.com and we are happy to connect you with the right contacts. 

 

Here Are The Impacts Of The Skyrocketing 10-Year Treasury Yield

Due to tremendous economic aid, interest rates, particularly the 10-year treasury yield, has skyrocketed back up towards where it was a year ago around 1.2%, prior to the coronavirus pandemic.

We have been following this rate quite closely on our instagram handle, @shermanwealth, as we recorded it last week hitting 1.6%. Of course this spike has created tremendous volatility in the housing market in terms of interest rates as well as the stock market in terms of how equities have been priced.

We will continue to follow the 10-year treasury yield closely for you all. Check out the video below for Brad’s take on these interest rates and the effects they are having countrywide. As always, if you have any questions for us, please reach out with questions at info@shermanwealth.com or schedule a complimentary 30-minute consultation here

 

Tax Filing Season Is Here

Tax filing season officially begins February 12th, so make sure to get your documents and files in order! We know tax season can be daunting; however, submitting your tax return to the IRS as soon as you are able may be extra crucial this year. 

That’s because the coronavirus pandemic has led to changes in the tax code that will impact individual returns and refunds.

The season is also shorter than usual this year. The IRS will start accepting and processing tax returns on Friday, Feb. 12, and so far, has made no indication that it will also delay the April 15 filing deadline — an additional incentive to be on top of filing taxes, especially if you’re going to work with a tax preparer. Keep in mind that prior to filing your tax return, you should contribute to your retirement accounts, IRA, and Roth IRA’s depending on your income and if you qualify. For more details on whether you qualify, check out the link here

That’s because the coronavirus pandemic has led to changes in the tax code that will impact individual returns and refunds. The season is also shorter than usual this year. The IRS will start accepting and processing tax returns on Friday, Feb. 12, and so far, has made no indication that it will also delay the April 15 filing deadline — an additional incentive to be on top of filing taxes, especially if you’re going to work with a tax preparer. 

There’s no benefit to waiting on getting your tax return this year. Make sure to get organized and file your documents as soon as you are ready to. If you have any questions or need help finding a tax professional please reach out to us at info@shermanwealth.com or schedule a 30-minute consultation on our site here.

 

Top 5 Pieces of Financial Advice

As we are all adjusting to the new norm that the coronavirus pandemic has created in our world, we are also learning pieces of advice that we could share from this experience. When going through an economic crisis, it’s important to keep some tips at top-of-mind to help you navigate the bumpy waters. In a CNBC Select Article, we found 5 great pieces of financial advice that we want to share with you to put in your financial repertoire.

First and foremost, try not to accumulate credit card debt. Racking up credit card debt can have very negative long term consequences, so it’s important that you pay the full balance on time. When you do not pay the full balance on time, your card will quickly accumulate interest, which often can get so high that it’s hard to pay off. 

According to recent Federal Reserve data released in September, the average interest rate for all credit card accounts is 14.87%. Among accounts assessed interest, or accounts with outstanding finance charges, the average interest rate rises to 16.88%. But for consumers with credit scores below 670, interest rates can near 30%, CNBC Select reports.

Next, make sure you don’t buy things you can’t afford. Although this one seems obvious, it’s much more common than you think. Avoid overspending and spending on things you can live without. Start putting that extra money into savings accounts where you can be accruing interest and earning money. 

Third, invest the year’s expenses or anything saved after you have the year’s expenses saved? Before the pandemic, many people were saying how you should have several months of rent and expenses in a savings account for a rainy day, but as we have seen the economic hardships the coronavirus has inflicted upon our society, we are suggesting to save about a year’s worth of expenses before investing it elsewhere. 

Fourth, start to think like a savvy businessman or woman. Learn to negotiate. Especially in the world we are living in today, make sure you are constantly looking for deals and inquiring about credit card versus cash options. Oftentimes, places will charge you less if you pay in cash. So, before swiping that card, make sure you think about all your options. 

Lastly, buy in bulk. With Amazon becoming increasingly popular and making it possible to get what you need in a matter of hours, take advantage of deals and places you can buy in bulk. If you can save a few dollars here and there, take advantage of it. It’s important to be a smart shopper, especially when buying something pricey, such as groceries for a large family. 

By implementing some of these basic money management tips into your daily routine, you will find yourself becoming a more savvy shopper and saving more money. It is especially important during an economic recession to take these concepts into consideration and make the most of your finances. If you have any questions on other ways you can maximize your financial portfolio and find places in your budget where you can save money, please reach out to us at info@shermanwealth.com or visit our site at www.shermanwealth.com. Check out our other blog posts for more financial advice and tips!