Money and Mental Health: Finding the Balance

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What Is a Financial Advisor? A Beginner’s Guide Managing personal finances can often feel complex and overwhelming particularly for those just beginning their financial journey. From building an emergency fund to planning for long-term goals like homeownership or retirement, the number of financial decisions can quickly add up. This is where the guidance of a financial advisor can make a significant difference. But what exactly does a financial advisor do, and how can they support your financial well-being? What Is a Financial Advisor? A financial advisor is a trained professional who helps individuals effectively manage their money and improve their financial literacy. By empowering clients with knowledge and strategic guidance, financial advisors help build confidence in achieving both short- and long-term financial goals. Think of a financial advisor as a trusted guide who offers expert advice on saving, investing, budgeting, and planning for major life milestones such as retirement, purchasing a home, or funding education. What sets financial advisors apart is their ability to offer personalized strategies. They take a comprehensive look at your individual financial situation including income, expenses, debts, assets, and goals, and craft a tailored plan that aligns with your needs and aspirations. Their aim is to help you maximize your financial potential while avoiding costly missteps. Different Types of Financial Advisors It's important to recognize that not all financial advisors operate the same way. One key distinction lies in how they are compensated. Fee-only advisors charge clients directly for their services either through hourly rates, flat fees, or a percentage of assets under management. Others may earn commissions by selling financial products, such as insurance or investment funds. Understanding how your advisor is paid is crucial, as it helps you identify potential conflicts of interest and ensures their recommendations align with your best interests. You may also come across professionals with the Certified Financial Planner (CFP®) designation. CFPs have completed rigorous education, examination, and experience requirements. They adhere to a fiduciary standard, meaning they are legally obligated to act in your best interest. This can be a big point of differentiation between advisors. In today’s technology-driven world, robo-advisors have emerged as a lower-cost, automated alternative to traditional financial advice. These platforms use algorithms to provide investment management advice and basic financial planning. While convenient and accessible, robo-advisors typically lack the personalized insights and nuanced guidance that a human advisor can offer, especially when navigating complex financial situations. It is a good idea to check with a financial professional when receiving advise from a robo-advisor. Why Would You Need a Financial Advisor? If you're new to managing your finances or feel uncertain about making investment decisions, partnering with a financial advisor can provide clarity, structure, and peace of mind. Here are several key reasons to consider working with a financial professional: Navigating Life Transitions: Major life events, such as getting married, starting a family, buying a home, or preparing for retirement often require new financial strategies. A financial advisor can help you adjust your plan to align with your changing circumstances. Managing Complex Financial Situations: If you have multiple income streams, investment accounts, or outstanding debts, an advisor can help organize and optimize your financial picture for greater efficiency and long-term success. Saving Time and Reducing Complexity: Financial topics like investing, tax planning, and retirement savings can be overwhelming and time-consuming to navigate alone. A financial advisor brings a professional aspect that can save you valuable time and help you make informed decisions. Avoiding Costly Mistakes: Poor financial choices can have long-lasting consequences. Advisors help you avoid common pitfalls and design a strategy that supports sustainable wealth building while managing risk. How to Choose the Right Financial Advisor If you're considering working with a financial advisor, keep these tips in mind: Ask About Services: Understand what areas they specialize in, such as investing, retirement, or tax planning. Check Credentials: Look for designations like a CFP® to ensure they meet professional standards. Know the Fees: Clarify how they’re paid and ask about any hidden costs. Read Reviews or Get Referrals: Trusted recommendations can help you find a reputable advisor. Evaluate Communication: Choose someone who listens well and explains things clearly. Final Thoughts A financial advisor can be a valuable ally in helping you navigate your financial journey, particularly if you're just starting out or facing important financial decisions. By understanding the role, or roles, they play and how their services align with your needs, you can be better equipped to determine if partnering with an advisor is the right move for achieving your goals. Disclosure: Content 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. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. 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.

TAKE ADVANTAGE OF STOCK MARKET UPS AND DOWNS WITH DOLLAR COST AVERAG  ING

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. PERSONAL ACCOUNTS RELIABLE INCOME FLEXIBLE EXPENSES 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.

This easy-to-use checklist can help you take charge of your money

Turbulent times can bring turbulent markets. Many factors cause chaotic swings in the investing world including housing, political elections, and international instability. Despite the financial queasiness this can have, experts consistently have one piece of advice for investors: stay calm and stay the course. Maintaining a long-term investment strategy can help weather the storm of a volatile stock market, whereas reacting irrationally or panicking is the last thing investors should do. History tends to repeat There are a few ways to keep nerves at bay amidst a sea of daunting headlines. First, a historical review shows that market fluctuations are normal. This should serve as a comforting reminder during unstable conditions. According to Fidelity, “...while market downturns may be unsettling, history shows stocks have recovered and delivered long-term gains.” 1 While no one can predict the stock market with absolute certainty, the significant crashes of the last century all saw periods of recovery. For example, after the 2008 market crash, the recovery began almost immediately and achieved an eventual increase of 178% in 5-year returns. 2 These past events reinforce the importance of focusing on long-term financial strategies and goals, not short-term fluctuations. The markets will have bull and bear runs which need time to play out without trying to anticipate short-term trends. However, past performance is no guarantee of future results. Don’t try to catch a falling knife Another potential mistake that investors can make is to stop saving during a market downturn. A popular way to continue savings momentum when nerves are being tested is dollar-cost averaging , or in other words, investing a fixed amount on a regular schedule (e.g., per pay period) that generally results in buying more shares when prices are low and less shares when they are high. Dollar-cost averaging is a stabilizing approach. It can take away some of the fear of timing risk and become less of a system shock than lump sum investing. However, this strategy does not ensure a profit and does not protect against loss in declining markets. You need lemons to make lemonade Downturns are a perfect time to consult with a financial professional or investment advisor to review different strategies and also rebalance your portfolio. It might be time to look at investments 1 Fidelity Viewpoints. “6 Tips to Navigate Volatile Markets.” Fidelity. 6 March 2025. 2 Fidelity Viewpoints. “6 Tips to Navigate Volatile Markets.” Fidelity. 6 March 2025. that have lost value, which can potentially help manage risk exposure and provide an opportunity to reposition the portfolio for recovery. Another possibility is to consider a Roth conversion. If your plan allows for a Roth conversion - moving money from pretax dollars to Roth dollars - then a downturn could help. A conversion in a downturn might result in a lower tax bill for the same number of shares sold, and then the individual can experience the benefits of a Roth account, allowing qualified distributions of future growth to be tax free.3 Market downturns are a part of any investing lifecycle so it’s best to keep a steady hand, consult with your advisor and consider all options so you can weather through this market cycle - and the next one. Information provided herein is not, and should not be regarded as, investment advice or as a recommendation. Investing involves risk, including potential loss of principal. ________________________________________ The Gasaway Team Gasaway Investment Advisors 7110 Stadium Dr., Kalamazoo, MI, 49009 Email: info@gasawayinvestments.com Phone: (269) 324-0080 Website: www.gasawayinvestments.com This information is provided as a general guide to educate plan sponsors. It is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. ©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute without permission. ________________________________________ Content 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. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. 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 . 3 Fidelity Viewpoints. “6 Tips to Navigate Volatile Markets.” Fidelity. 6 March 2025.

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Gasaway Investment Advisors is celebrating its 35th anniversary this year.

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