Building a Balanced Retirement Income Plan

June 5, 2025

Most people have a retirement date in mind.

You’ve had a long career filled with challenges and rewards. And now, the dream of having more time to do whatever is about to come true. Before you send your last email or attend that last meeting, it’s wise to have a solid plan in place to pay the bills when your paycheck stops. What you want to build is a complete retirement income plan. This plan will show you where you’ll be spending your money in retirement. You’ll also learn about available financial resources to help build your new retirement paycheck.Most people have a retirement date in mind.


The 4 Parts of a Retirement Income Plan

Crafting a tailored retirement income plan is key to a successful retirement journey. Taking the time to consider expenses, savings and income before stepping into retirement will help ensure there's an ample balance for a comfortable life.

  1. PERSONAL ACCOUNTS
  2. RELIABLE INCOME
  3. FLEXIBLE EXPENSES
  4. ESSENTIAL EXPENSES


Identify all your non-negotiable, essential expenses

These are the bills and expenses you must continue to pay long after you’ve stopped working. These expenses can’t be deferred or delayed regardless of the ups and downs of the market. You know the obvious must-have expenses such as food, shelter, health care, utilities and income taxes. But many essential expenses are missed: technology, property taxes, and homeowners or renter’s insurance. In addition, some expenses for enjoying retirement living will be essential expenses.

— For some, it will be a club membership.

— Others consider travel to see the grandchildren essential.

— For those who are retiring to pursue hobbies, start-up costs may be a factor to consider.

It’s up to you to define your essential expenses. The closer you are to retiring, the more accurate your list and estimated costs should be.

Make a wish list of your discretionary expenses

Not every expense will be a must-have in retirement. You’ll also need to build in a fair amount of flexibility. For example, you may need a new car or two over a 30-year retirement period, but when and what you buy are flexible. Or, if travel is going to be a big part of retirement, great! You may spread out the trips a bit further or make them a bit shorter to stay within your budget.


It’s fun to think about all the things you might do in retirement, but you may have to make some adjustments or compromises about when and what you can comfortably afford.

Determine your sustainable or guaranteed sources of income

Putting together a retirement income plan can help you get a good handle on the amount of reliable income you are on track to receive in retirement. These sources are ones you can count on every month for the rest of your life. Typically, there are three possibilities:

SOCIAL SECURITY

Most workers qualify for Social Security. Look at the current estimates on your statement (available on SSA. gov/myaccount). You’ll want to know how much less you’ll get each month if you claim too early and how much more by waiting up to age 70. If you’re married, it’s also important to consider what will happen if you die first. How will your surviving spouse’s income be changed by your claiming decision?

PENSIONS

A defined benefit pension plan may be part of your retirement income. These payments are designed to provide monthly income for as long as you live. Take great care in deciding how to take the payments if you are married or have a dependent who will count on this income if you die first.

INCOME ANNUITIES

Insurance companies offer a variety of guaranteed income products. You might already have savings in an annuity product that you’ll turn into a guaranteed income stream, or you might consider buying one. While annuities can be complex, they are the only financial product backed by an insurance company.*

Take a full inventory of all your personal accounts and how they can deliver cash

After a lifetime of work and saving, you may find you have more accounts than you realize. Each account helped you save and will now become part of your retirement paycheck. And each type of account has unique options, distribution rules and tax obligations. Here are some of the more common accounts you may have in your inventory:

401(k)s, 403(b)s and 457(b)s

Tax-deferred when saving, but distributions are taxable. Required Minimum Distributions (RMDs) are required once you reach a certain age. You may be able to delay RMDs from your current employer if still working there.

Traditional IRAs, SEPIRAs and SIMPLE-IRAs

Usually tax-deductible when you made the contributions, but withdrawals are taxable in retirement.

Inherited IRAs

If you were named as a beneficiary on someone else’s IRA (not your spouse), you likely must fully liquidate the account in 10 years and may owe income tax.

Roth accounts

If the holding period and other rules are met, you can generally take money out income tax-free. Hooray!

Health Savings Accounts

These triple-tax advantaged accounts can be used in retirement to pay for qualified health expenses, including Medicare Part B and Part D premiums. When used for qualified expenses, withdrawals are income-tax-free.

Savings accounts and Certificates of Deposit (CDs)

Money socked away in these types of accounts are typically for emergencies. Interest earned is taxable each year

Brokerage and investment accounts

Any interest or capital gains earned from brokerage and/or investment accounts are taxable in the year of the transaction

Nonqualified deferred compensation

Distributions from various NQDC accounts are taxable. As the amounts may be substantial, estimated taxes are often owed as well.

There are many other types of accounts depending upon the complexity of your financial household. And if you have a spouse, they may also have a suite of their own similar accounts.



You can see how important it is to get all your accounts well-organized before retiring. Ensuring you are handling all accounts in the most tax-effective way will help you enjoy sufficient retirement income and achieve your legacy goals.

When planning for your retirement income, creating a simple visual helps you see your financial future.



You’ll want to know what you’ll have as income sources and how you’ll pay for your expenses for 30 years, more or less.

Making a visual 4 part retirement income plan

1. PERSONAL ACCOUNTS

  • Tax-deferred accounts
  • Taxable accounts
  • Roth accounts
  • HSAs1. PERSONAL ACCOUNTS

2. RELIABLE INCOME

  • Social Security
  • Pension payouts
  • Income annuities

3. FLEXIBLE EXPENSES

  • Travel
  • Golf, fishing, sports
  • Parties and dining out
  • House renovations

4. ESSENTIAL EXPENSES

  • Food, shelter, health care
  • Taxes
  • Utilities and tech
  • Retirement goals

Know if you have a gap

After pulling together your four financial parts for retirement, do some simple math to answer these five key questions:

  1. How much of my essential expenses will be paid for by my guaranteed sources of income?
  2. If my essential expenses are higher than my guaranteed sources of income, how much will I need to pull from my personal savings accounts?
  3. What will change, if anything, once I reach the RMD age and must begin taking them?
  4. Do I understand how much I will pay for Medicare and other health care needs and where my HSA can help?
  5. If I have a spouse or partner, have we considered how retirement income will change for the surviving person?

Simplify and organize

Once you have an inventory of your personal accounts, organize them.

Whether that means at one financial institution, one financial advisor or in one integrated money management platform. If you have several same types of accounts (a rollover IRA, SEP IRA, and traditional IRA, for example), simplify by combining them.



Lastly, create a binder or online file of all the latest statements from all your future income sources. Review it at least once a year to keep track of changes.

The Gasaway Team

Gasaway Investment Advisors

7110 Stadium Dr

Kalamazoo, MI, 49009

(269) 324-0080

info@gasawayinvestments.com

www.gasawayinvestments.com


The Gasaway Team

Gasaway Investment Advisors

7110 Stadium Dr

Kalamazoo, MI, 49009

(269) 324-0080

info@gasawayinvestments.com

www.gasawayinvestments.com


This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. ©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute outside original intent

This is not an offer or a solicitation to buy or sell securities. Material is meant to provide general information and it is not to be construed as specific investment, tax or legal advice. The information has been compiled from third party sources. Keep in mind that current and historical facts may not be indicative of future results. Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. ©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute outside original intent.

August Market Update

September 24, 2025
Market Indices Performance 

Why You Might Want to Look at Life Insurance & Long-Term Care Earlier Than You Think

September 19, 2025
Talking about insurance isn’t exactly everyone’s favorite topic, but it’s an important one. Life insurance and long-term care (LTC) coverage are tools that can help you prepare for the unexpected. While many people wait until later in life, starting younger often means more flexibility, lower costs, and a wider range of choices. What They Cover Life insurance → pays a benefit to your beneficiaries if you pass away. This can help cover expenses like rent, loans, or general household costs. Long-term care insurance → helps cover care expenses if you ever need help with daily activities over an extended period. This can include in-home care, assisted living, or nursing facilities costs that typically aren’t covered by health insurance or Medicare. Why Younger Can Be Better Costs are usually lower. Premiums are generally based on age and health. Applying earlier can mean lower monthly payments. More likely to qualify. Good health makes approval easier. Waiting until health issues arise can limit options. More choices. Some policies or riders are only available if you apply earlier. Time to plan. Starting younger lets you spread out costs and build coverage into your budget gradually. Less uncertainty. Putting coverage in place sooner can reduce the risk of being caught off guard later. Things to Consider Premiums are an ongoing cost, so make sure they fit within your budget. You may be paying for long-term care coverage years before you use it. Inflation riders, waiting periods, and benefit limits vary by policy. It’s important to understand the details. Insurance needs can change over time. Reviewing coverage every few years is a good practice. Getting Started Think about who depends on your income now or who might in the future. Compare different companies and products to understand what’s available. Look at both stand-alone and combination (life + LTC) options. Work with a licensed professional and financial planner who can walk through your personal situation. Final Thought Exploring life insurance and long-term care while you’re younger doesn’t mean you expect the worst. It means you’re preparing ahead of time, so future choices are less stressful and potentially more affordable. Disclaimer: This blog is for informational purposes only. It is not intended as legal, tax, or investment advice. Insurance products vary, and everyone’s situation is different. Please consult with a licensed insurance or financial professional before making decisions about coverage. Any opinion included in this blog constitutes our judgment as of the date of this report and are subject to change without notice. The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807 .

Your Money Can Work While You Sleep (So You Don’t Have to Work Forever)

September 12, 2025
Imagine waking up in the morning and realizing your money has been busy working while you slept. That’s the power of a thoughtful financial plan—shifting from working for every dollar to having your dollars quietly working for you. Creating Your Financial Roadmap Financial planning starts with clarity. A financial advisor or consultant can help outline a plan that reflects your goals, resources, and time horizon. This can include:  Individual and personal financial planning for major milestones like buying a home or funding education. Financial planning for businesses to align growth with long-term stability. Retirement plans for small businesses that support both owners and employees. A financial planning firm brings together these services so you can look at the bigger picture, not just one piece at a time. Preparing for the Unexpected Life doesn’t always go according to script, which is why planning for the “what ifs” is so important. Disability planning and life insurance services can provide support for you and your family in unforeseen circumstances. Estate planning is another key step. Working with an estate planner or using estate planning services helps organize how your assets are managed in the future. Making Your Investments Work Investing is one of the most effective ways to put your money to work. Investment advisors, investment managers, and advisory firms can provide guidance tailored to your situation. Services such as investment management and the use of investment models help bring structure and consistency to your approach. If retirement is on your horizon, retirement income planning, retirement plan investments, and ongoing retirement planning services can help align your resources with the lifestyle you want. Managing Risk Along the Way Every financial plan comes with some level of risk. That’s why risk management services and financial risk assessments are essential. A risk manager can help identify potential challenges before they become major issues. For those who need additional oversight, fiduciary services can help ensure that financial decisions are carried out in accordance with established standards. Support for Businesses Business owners often juggle both personal and commercial priorities. That’s where business plan consulting and commercial financial services come in. Combining these with broader financial planning creates a consistent framework for both sides of the equation. Letting Your Money Do the Work At the end of the day, the goal of financial planning isn’t about working harder—it’s about giving your money the chance to do some of the work for you. With support ranging from personal planning to investment management, retirement strategies, and risk awareness, your finances can be set up to keep moving even when you’re not. So go ahead—get some rest. Your plan can keep working while you sleep. The information contained in this presentation has been compiled from third party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. This is for informational purposes only and does not constitute an offer to sell or a solicitation to purchase any products or services. All investments involve risk (the amount of which may vary significantly), and investment recommendations will not always be profitable. Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807 .

The Latte Factor: Can Skipping Coffee Really Make You a Millionaire?

September 9, 2025
You’ve probably heard the advice: “Skip your daily latte and retire rich.” This idea, now commonly known as The Latte Factor, was popularized by author David Bach. But is skipping coffee really the secret to building wealth or just financial clickbait? What Is the Latte Factor? The Latte Factor refers to small, everyday purchases that add up over time. A $5 coffee might not seem like much, but spent daily, that’s around $1,825 per year. If invested with a 7% annual return over 30 years, it could grow to $172,390. Can It Make You a Millionaire? In short, no, not by itself. Skipping coffee won’t make you a millionaire unless you pair it with other smart money moves like investing regularly, increasing your income, and avoiding high-interest debt. The real point of the Latte Factor isn’t about coffee. It’s about awareness of where money is going. Small, unconscious spending habits can prevent you from achieving bigger financial goals. When It Makes Sense to Cut Back Consider cutting out small expenses if: You’re struggling to save or pay down debt You're living paycheck to paycheck You’re spending out of habit, not enjoyment What Builds Real Wealth? Skipping lattes might help, but true wealth comes from: Consistent saving and investing Growing your income Avoiding lifestyle inflation Making intentional financial choices Final Thought The Latte Factor is a helpful metaphor, but it is not a magic formula. It’s not about guilt; it’s about being mindful. If your coffee brings joy and fits your budget, enjoy it. Just make sure your financial habits support your long-term goals. Sources: 1. The Latte Factor: Why you Don’t Have to Be Rich to Live Rich, by David Bach and Kohn David Mann. Copyright 2019. All content presented is for educational purposes only and should not be construed as a solicitation or offer to sell securities or provide investment, tax, or legal advice. All examples are hypothetical, for illustrative purposes only, and are merely arithmetic calculations. They are not representative of the performance of any type of investment, security, or strategy offered by the firm. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. Hypothetical returns do not reflect actual trading and may not be indicative of the performance of any specific investment. They are based on assumptions and estimates that may not be accurate or applicable to your individual situation. Always consult with a qualified financial advisor before making any investment decisions. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Advisor Public Disclosure Site https://adviserinfo.sec.gov/firm/summary/123807 .

The Tariff Situation

August 29, 2025
As you likely know, tariffs have been a major theme of the Trump administration in 2025. These tariffs are being implemented for a few reasons: negotiation/bargaining, punishment/sanction, and improving the U.S.’s economic situation. As a reminder, a tariff is a tax on imported goods. For example, raising the tariff rate on Japan to 25% means that all goods that U.S. companies import from Japan will be subject to a 25% tax at the port of entry. Punitive and Reciprocal Tariffs The tariff announcements began in February, with President Trump threatening 25% punitive tariffs on Canada and Mexico if they didn’t stop the flow of fentanyl across their borders. In April, Trump and the Secretary of Commerce Howard Lutnick announced “reciprocal tariffs”, aimed at lowering the trade deficits between the U.S. and foreign countries. These included a base 10% duty on all countries that have tariffs on U.S. goods, as well as significantly higher rates on countries with high tariff rates on U.S goods (like 46% on Vietnam). This announcement sent stocks reeling as the rates were much higher than expected. Stocks fell 14% in the next 4 days. Then, Trump put a 90-day pause on these reciprocal tariff and stocks rose almost 10% that day. As of August, these tariffs have gone into effect for all countries who haven’t made deals with the U.S. (Japan, Vietnam, and the EU have notably made deals). Targeted 50% Tariffs: India & Brazil India and Brazil have emerged as focal points of the new tariff strategy. India initially faced a 25% reciprocal tariff, but that was doubled to 50% since they are continuing to import Russian oil. Brazil’s tariff rate was raised from 10% to 50%, mostly for political reasons.

July Market Update

August 22, 2025
Market Indices Performance 

Understanding Interest Rates: Why They Matter to You

August 22, 2025
Interest rates may seem like a topic best left to economists and bankers, but they play a critical role in your everyday financial life. Whether you're borrowing money, saving for the future, or investing, understanding how interest rates work can help you make smarter financial decisions. What Are Interest Rates? An interest rate is the cost of borrowing money, expressed as a percentage1. When you take out a loan, you pay interest to the lender. When you deposit money in a savings account, the bank may pay you interest in return. It’s the price of using someone else's money or the reward for letting someone else use yours. Who Sets Interest Rates? In the U.S., the Federal Reserve (or “the Fed”) influences short-term interest rates through the federal funds rate. This rate affects everything from mortgage loans to credit card APRs. When the Fed raises rates, borrowing becomes more expensive. When it lowers rates, loans become more affordable, often to stimulate economic growth. Why Interest Rates Change Interest rates are adjusted to manage inflation, support employment, and stabilize the economy. For example: Rising rates can help cool inflation but also make borrowing more costly. We have seen this over the last couple of years. Falling rates can encourage borrowing and spending but may reduce returns on savings. This narrative has become more vocal in 2025 with our president begging for rates to fall. These shifts can impact both your short-term budget and long-term financial plans. How Interest Rates Affect You Loans & Mortgages: A small change in rates can significantly affect your monthly payments and total loan costs. Credit Cards: Most credit cards have variable rates, meaning your debt becomes more expensive when rates rise. Savings & Investments: Higher interest rates can increase your savings returns and influence investment strategies. Consumer Behavior: Rate changes often affect when and how people borrow, spend, and save. How a Financial Advisor Can Help Navigating interest rate environments can be complex, especially when you're balancing multiple financial goals. A financial advisor can: Help you time major financial decisions, such as refinancing a mortgage or locking in a fixed-rate loan Adjust your investment strategy to account for rate-sensitive assets like bonds or real estate Guide your savings plan to take advantage of higher-yield opportunities Offer personalized advice on managing debt in rising-rate environments  With expert insight, an advisor can help you avoid common pitfalls and align your financial strategy with current economic conditions. Final Thoughts Interest rates may not seem like a personal concern, but they directly affect your finances: from your debt to your savings to your investment portfolio. Understanding how they work and working with a financial advisor can help you make confident, well-timed financial choices in any rate environment. Sources: https://www.investopedia.com/terms/i/interestrate.asp

Retirement: The Qualitative and Quantitative Aspects

August 18, 2025
Retirement represents a pivotal phase in an individual’s life, marked by the transition from employment to a lifestyle supported by accumulated financial resources and personal planning. While often approached primarily through a financial lens, effective retirement planning must also incorporate qualitative factors that influence well-being, identity, and life satisfaction. This article outlines both the quantitative and qualitative dimensions of retirement, emphasizing the importance of a balanced and holistic perspective. Qualitative Aspects Beyond the numbers, retirement is a profound personal and emotional transition that affects daily life, self-perception, and interpersonal relationships. Here are a few aspects that influence a successful retirement transition: 1. Sense of Purpose Many retirees experience a loss of identity upon leaving the workforce. A successful retirement often involves finding new purpose through activities such as volunteering, mentoring, or creative pursuits. 2. Social Engagement Social isolation is a common challenge, particularly for those who derived much of their interaction from the workplace. Maintaining strong social networks contributes significantly to mental health and emotional resilience. 3. Health and Lifestyle Retirement presents an opportunity to focus on physical and mental well-being. Establishing healthy routines, engaging in regular exercise, and pursuing intellectual interests are vital for a high quality of life. 4. Psychological Adjustment The emotional shift into retirement can be complex, requiring time to adjust to a new identity and lifestyle. Gradual retirement or pre-retirement counseling may ease this transition. Quantitative Aspects The quantitative side of retirement focuses on measurable financial and logistical elements essential to sustaining one’s standard of living. 1. Financial Preparedness This includes the evaluation of retirement savings, income streams such as pensions and Social Security, and investment portfolios. 2. Life Expectancy and Longevity Risk With increasing life expectancy, retirees must plan for potentially 25–30 years of post-employment life.1 Longevity risk is the risk of outliving one’s assets and necessitates careful financial forecasting and often calls for conservative investment and withdrawal strategies. 3. Healthcare Costs Healthcare remains one of the most significant expenses in retirement. Retirees must anticipate out-of-pocket costs for insurance premiums, medical procedures, medications, and potential long-term care. Planning for these costs is critical to avoid financial strain later in life. 4. Investment Strategy and Risk Management Retirement typically involves a shift from growth-focused investing to capital preservation. Retirees must balance the need for income generation with the desire to protect against market volatility and inflation. Conclusion A meaningful and secure retirement depends on both quantitative preparation and qualitative enrichment. Financial planning lays the foundation, but personal fulfillment, health, and social engagement define the experience. A truly successful retirement is one that aligns financial stability with purposeful and satisfying living. Source: https://www.dunham.com/FA/Blog/Posts/financial-planning-in-an-era-of-longer-lifespans?ref=dunham.ghost.io

How Technology Is Transforming Financial Advisors

August 7, 2025
The financial advisory industry is undergoing a significant transformation, driven by rapid advances in technology. Once reliant solely on face-to-face meetings and manual portfolio management, today’s financial advisors are leveraging digital tools to offer smarter, faster, and more personalized financial guidance. Far from replacing financial advisors, technology enhances their capabilities, allowing them to deliver more value to clients, stay compliant, and compete in a fast-changing market. 1. The Digital Shift in Financial Advising The traditional model of financial advising that involves paper documents, in-person meetings, and delayed communications, is becoming obsolete. Clients now expect real-time updates, mobile access, and digitally driven experiences. Advisors who embrace technology are not just meeting these expectations; they’re creating new value. Cloud-based platforms, CRM tools, and secure client portals are streamlining workflows, freeing up more time for relationship-building and strategic planning. 2. Robo-Advisors: Competitor or Complement? Robo-advisors are automated, algorithm-driven investment platforms that were initially seen as a threat to traditional advisors. But the story has changed. Instead of replacing human advisors, robo-advisors are now often integrated into hybrid advisory models, combining the efficiency of automation with the insight of human expertise. For example, financial advisors can use robo platforms to handle routine tasks like portfolio rebalancing or tax-loss harvesting, while focusing their time on complex planning, retirement strategies, and holistic financial coaching. 3. Artificial Intelligence and Data Analytics AI is becoming a trusted partner for financial advisors. By analyzing massive amounts of client data, AI tools can uncover patterns, identify risks, and generate tailored recommendations that help advisors offer more proactive and customized advice. With predictive analytics, advisors can forecast life events and suggest actions long before clients even ask. This makes the advisor not just a service provider, but a true financial partner. 4. Client Experience: Personalized, Digital, and On-Demand Modern clients, especially Millennials and Gen Z, expect a digital-first approach to money management. Advisors are meeting this need with client dashboards, mobile apps, and video conferencing tools that make communication fast and convenient. Technologies like e-signatures, digital onboarding, and interactive financial planning software improve transparency and foster engagement. Some advisors even use gamification or AI-powered chatbots to make financial literacy more accessible. 5. Compliance and Cybersecurity in a Digital World As advisors handle more client data online, cybersecurity and regulatory compliance are top priorities. Fortunately, technology also provides solutions here. Compliance tools can monitor communication, generate audit trails, and ensure KYC/AML standards are met with minimal manual input. Secure document storage, multi-factor authentication, and encrypted messaging platforms help advisors build trust and maintain client confidentiality. 6. Open Banking and Financial Integration Tools Thanks to Open Banking and API-driven platforms, advisors can now access clients’ complete financial picture. From banking and loans to retirement accounts and insurance, advisors can get up to date data all in one place without having to ask for updated paper statements. This integrated view allows for holistic planning and better decision-making. Tech-forward advisors are leveraging aggregation tools like eMoney, MoneyGuidePro, or RightCapital to deliver dynamic plans that evolve with clients' goals and can track real time habits of their clients. 7. Fiduciaries vs. Technology? As technology becomes central to financial services and governance, fiduciaries must evolve to meet new standards of care, loyalty, and prudence. Today’s fiduciary responsibilities extend beyond traditional decision-making to include oversight of AI tools, digital platforms, data privacy, and cybersecurity. Whether it’s relying on algorithm-driven investment strategies or evaluating third-party tech vendors, fiduciaries are now expected to exercise digital literacy and ethical judgment in tandem with legal obligations. The rise of opaque algorithms, ESG scoring tools, and automated systems requires not only informed adoption but transparent governance. Technology is no longer a support function it’s becoming a core fiduciary consideration within decision making and putting client’s best interests forward. In conclusion, while some may fear that the integration of technology into the financial sector could diminish control, the reality is quite the opposite. By leveraging advanced tools, advisors are empowered to deliver enhanced, personalized service, allowing them to focus more effectively on their clients and streamline the overall experience. Sources: Nitrogen Launches Its Own AI Notetaker (And More Of The Latest In Financial) Bot Versus Human: For Financial Planning, It’s No Contest Meet the AI agents defining the new customer experience

Importance of Personal Finance

August 1, 2025
Managing personal finances does not need to be overwhelming. Achieving long-term financial goals often begins with simple steps, such as creating a budget and implementing effective debt management strategies. By adopting a few disciplined habits, you can establish a strong financial foundation, reduce stress, and move closer to financial independence. Whether you're just getting started or seeking to refine your approach, consider these five key steps to strengthen your financial well-being: 1. Set Clear Financial Goals Before creating a budget or starting to save, take time to clearly define your financial goals. It's difficult to make meaningful progress without a clear direction. Identify what you want to achieve. Whether it’s paying off debt, purchasing a home, or building an emergency fund, categorizing your goals by timeframe: short-term (1–2 years), medium-term (3–5 years), and long-term (10+ years) can help give direction to which order your goals should fall. Well-defined, measurable goals provide clarity, purpose, and motivation to stay on track. 2. Track Your Spending You can’t fix what you can’t see. Begin by tracking all your income and expenses for a month to gain a clear picture of your financial habits. Whether you use budgeting apps, spreadsheets, or simply pen and paper, the goal is to identify spending patterns, highlight areas for improvement, and uncover potential savings opportunities. 3. Create a Simple Budget A budget is a strategic plan for managing your finances. To create one, begin with your total income, deduct your fixed expenses, such as rent, utilities, and other essential bills, then allocate the remaining funds toward financial goals, savings, and discretionary spending. The 50/30/20 rule is a great place to start: 50% needs 30% wants 20% savings/debt repayment Remember, this is a general structure to help give an idea. Adjust as needed to fit your life. 4. Build an Emergency Fund An emergency fund is your financial safety net. Aim to save at least a measurable, fixed dollar amount to start, then work up to 3–6 months of living expenses. Keep it in a high-yield savings or checking account so it is accessible, but out of everyday reach. This fund keeps unexpected expenses from turning into debt or even more stress. 5. Pay Off Debt and Start Investing Focus on high-interest debt first, like credit cards. Then, compare which debt is ok with sticking around by seeing if it is Good Debt or Bad Debt. A good way to do this is by measuring the life of the item that has the debt associated with it and how long you plan to use said item. For example, a mortgage on a home is Good Debt. A home is an appreciating asset that most people will use for many years. A high-interest personal loan is an example of Bad Debt. Credit cards are the perfect example of this. A common tactic used to get Bad Debts under control is the debt snowball. This approach involves focusing on paying off the smallest balances first while maintaining minimum payments on larger debts. As each balance is eliminated, the freed-up funds are rolled into the next smallest debt, creating a compounding effect. This method builds momentum and motivation, helping you stay engaged as payments grow and debts are steadily eliminated. Once debt is under control, investing in the future is the next step. Use retirement accounts like 401(k)s or IRAs for long-term, tax beneficial growth. Time and consistency are your best friends when planning.