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For kids, teens, and college students, summer break often represents freedom from schedules, responsibilities, and all those other drains on your time. Retirement actually can provide a similar level of freedom, but only if you've adequately prepared, planned, and saved. Below, we discuss three ways that planning ahead for your retirement can be like scheduling your summer. Deciding What to Do After spending decades at a 9-to-5, you may struggle to find ways to fill your time after retirement. Just like summer break, a couple of weeks of well-deserved decompression may turn into boredom. It's important to have a plan to transition into retirement. Whether this means having a list of vacation destinations, a hobby to turn to, or an organization to volunteer with, giving yourself some options can help you remain active and engaged instead of simply vegetating. Deciding Where to Go Many new retirees spend a lot of time traveling now that they no longer need to worry about coming back to a pile of work or rationing a limited number of vacation days. As you spend time traveling during your working years, take note of the destinations you'd like to return to. Planning for retirement in general can look a lot like planning a vacation: you'll need a budget, a destination, a timeline, and a Plan B. More than just longer vacations, retirement may also mean traveling to a new home – whether downsizing, moving closer to family, or even heading to a senior living community. When considering next steps, especially if debating an interstate move, take into account factors like: The way your state treats and taxes retirement income Whether the setup of your home allows you to "age in place" Access to amenities Access to necessities (like grocery stores and hospitals) Transportation options Cost of living By keeping these factors in mind, you'll be able to find the best fit for your lifestyle now and in the future. Deciding How to Pay For It How do you afford your current lifestyle? What expenses do you expect to lose in retirement – and which ones might you gain? Just like planning a vacation, planning how you'll fund your retirement can be an intricate process with many moving parts. Having a financial professional at your side can help streamline matters. Your financial professional will probably help you work backward to create your retirement financial plan. This planning can begin by evaluating how much your retirement lifestyle will cost, then figuring out how much income you'll need to afford it. By looking at sources such as 401(k), IRA savings, a pension, Social Security, and taxable savings, your financial professional will scour all your potential areas of income and help you figure out the most tax-efficient way to fund your retirement. Retirement planning can take time and effort – but just as you wouldn't embark on the vacation of a lifetime without doing a bit of preliminary research, you also don't want to leap into retirement without a plan. Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. This article was prepared by WriterAccess. LPL Tracking # 1-05367403

Both offer valuable lessons from those who have come before you The Masters golf tournament and successful investing may seem like two completely different worlds, but they share many similarities in terms of tradition. Both have established practices that have stood the test of time, and both require a combination of skill, strategy, and patience to succeed. Let’s take a closer look at the traditions of the Masters golf tournament and how they compare to the traditions of successful investors. Traditions Matter One of the most well-known traditions of the Masters is the Green Jacket. The winner of the tournament is presented with a Green Jacket, which has been awarded to every champion since 1949. Similarly, successful investors often have a signature item or practice that sets them apart. For example, Warren Buffett is known for his simple lifestyle and preference for Coca-Cola, while Peter Lynch famously suggested investing in what you know. Another tradition of the Masters is the Champions Dinner. The previous year's winner hosts a dinner for all past champions, where they select the menu and are given the opportunity to share stories and advice with the current competitors. This tradition emphasizes the importance of learning from those who have come before you, which is also a key aspect of investing. Veteran investors often share their experiences and knowledge with younger investors, providing them with valuable insight and guidance. The Augusta National Golf Club, where the Masters is held, is known for its pristine condition and attention to detail. From the perfectly manicured fairways to the meticulously maintained flower beds, every aspect of the course is designed to be visually stunning. Similarly, successful investors pay close attention to detail when researching potential investments. They scrutinize financial statements, study market trends, and conduct thorough due diligence before making a decision. Another tradition of the Masters is the Par 3 Contest, a light-hearted competition held the day before the tournament. This tradition shows that even in the midst of intense competition, it's important to take a step back and have fun. Similarly, successful investors know that investing can be a serious business, but it's also important to enjoy the process and not become too bogged down in the details. Finally, the Masters is known for its exclusivity. Only the best golfers in the world are invited to compete, and only a select few are ever invited to become members of Augusta National Golf Club. Similarly, successful investors often seek out exclusive investment opportunities that are only available to a select group of investors. This exclusivity can often lead to higher returns and greater prestige. Traditions Matter While light-hearted, it is easy to see that the traditions of the Masters golf tournament and investing share many similarities. Both require skill, strategy, and patience to succeed, and both emphasize the importance of tradition and learning from those who have come before you. By understanding and embracing these traditions, both golfers and investors can build confidence and work towards leaving a lasting legacy. Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. This article was prepared by FMeX. LPL Tracking #1-05367279

Whether you are expecting your first child or have been a parent for years, finances and building a future for your family go hand-in-hand. Luckily, there are money moves you can make now to help manage financial stress, support yourself and your loved ones, and help your children as they get older. Here are three key financial moves all parents should consider making. Review and Update Your Life Insurance For many, life insurance is a necessary but unmanaged expense for a good reason. It is not pleasant to consider a situation where your life insurance policy may become relevant to your loved ones. However, for parents, in particular, having adequate life insurance might be the difference between your children struggling or enjoying a comfortable future. Many employers offer life insurance to their employees, often at a specific multiplier of their salary. For some families, this amount may be adequate; but in other cases, you may need to purchase an additional term policy that provides coverage until your youngest child is an adult. It is worth reviewing how much coverage you have, then comparing this with your average projected earnings over the next decade or so. Also, update your beneficiaries after any major changes. A divorce decree does not remove an ex-spouse's name from a life insurance policy. For any changes in your marital status or if a named beneficiary passes away, you must update your list of beneficiaries with your insurer. Consider a College Savings Account As anyone who is still paying their student loans could confirm, college costs may be a major expense. For many, student loans are second only to the cost of a home purchase. Fortunately, time is on your side when saving for college for those with young children. The funds you put toward your child's future college education may have years to grow. In many states, contributing to a 529 college savings account might even provide you with a state tax credit. Additionally, 529 funds do not have to be for a specific child. If your child gets a scholarship or decides not to attend college, you are free to change the beneficiary to someone else, even yourself. These accounts may also pass down and can be used by grandchildren. Check Your Health Insurance Coverage Health care costs might also be a huge part of any family's budget. And while many employer-sponsored health insurance plans may provide you with decent coverage at a reasonable cost, this is not always the case. Some families with fixed annual health care expenses may benefit from a lower deductible plan that provides more coverage, while other families with infrequent health care costs might find a high-deductible health plan with lower premiums is an easier expense in their budget. If you are not sure about your options, a financial professional or insurance broker may be able to provide more information. Important Disclosures The opinions voiced in this material are for general information only and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information. Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing. This article was prepared by WriterAccess. LPL Tracking #1-05268284

As an engineer, you already likely know the importance of accurate input when it comes to the final equation, which may put you ahead of the game when it comes to managing your finances. Below are a few ways engineers could apply their skills to their financial planning process. Automate and Optimize Your Finances In today's digital society, it's easy to put bills on autopay and make payments online most of the time. And for regular, steady bills like cable and internet, your mortgage or rent, your cell phone, and any student loans or auto payments, setting up recurring payments may relieve you of the need to remember to pay dozens of different bills each month. As long as you have an adequate financial cushion to cover these bills when they come due, automating your finances may save you time, effort, and the potential for late fees and collection notices. Stay Flexible It may be easy for many people, engineers in particular, to treat their finances with a certain amount of rigidity—especially if you have a steady wage and relatively stable expenses. However, the ability to pivot or adjust your finances to account for changes in income, unexpected expenses, and other surprises may be invaluable. Try to keep an open mind and remain flexible when challenges or opportunities come your way. Invest for Your Future Engineers may make anywhere from $50,000 to $80,000 or more per year, well above the median individual income in the U.S.1 Use this salary to your advantage by setting aside some funds for your future, including your retirement. If your job provides a 401(k), this may be a useful place to stash up to $20,500 per year (or $27,000 per year if you're age 50 or older).2 Your 401(k) contributions won't count toward your taxable income, saving you money in taxes while allowing you to save for future expenses. Some employees also contribute up to $6,000 per year to an individual retirement account (IRA) or Roth IRA as long as your earned income meets certain limits. Setting aside these funds now may not only provide you with a nice nest egg upon retirement, but it may also get you in the habit of saving and help you avoid lifestyle creep when your income increases. Important Disclosures 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. Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax. The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking: 1-05217801 1 https://www.ziprecruiter.com/Salaries/What-Is-the-Average-Engineer-Salary-by-State 2 irs.gov/newsroom/irs-announces-changes-to-retirement-plans-for-2022

Setting healthy financial goals is critical. Even more important is staying committed to those financial goals. Keeping yourself committed to your goals may be difficult, especially when times may be financially tough. But by staying on track and focused on your goals, you are more likely to get the long-term outcome you seek. Below are a few simple tips that will help you to stay on track and committed to your financial goals. Find Tools to Make Your Efforts Easier There is a wide range of tools available that can help you stay on track to maintain your goals. These tools generally make financial tasks less hands-on, or even streamline any hands-on processes. One tool to take advantage of is automation. Start by setting up automatic transfers to the various accounts needed for your goals. This way, your funds will be automatically distributed from your monthly income, leaving you less tempted to use the money for other wants. Set up automatic transfers to retirement accounts, savings accounts, and even vacation and holiday shopping funds. Other tools to explore and leverage are budgeting tools that allow you to maintain your budget and ensure the money is designated where it needs to be. Set up an Emergency Fund No matter how hard you plan, sometimes life will get in the way. Major financial needs such as car repairs, housing maintenance, and even medical emergencies can cause you to put your goals on the back burner. At the same time, you must use your finances to get yourself out of the emergency. What should you do? By having and maintaining an emergency fund, you will have the money set aside to deal with these issues without having to take money away that is budgeted toward your financial goals. Track Your Progress and Reward Yourself Sometimes the greatest motivation is seeing your hard work manifest. Set a regular time to check your progress regularly, whether it is monthly or quarterly. See how close you are with each account or goal so that you will see how your hard work is moving you closer to those goals each period. This check-in is also a good time for you to check in to see if your efforts are being appropriated properly. You can make necessary adjustments to ensure you stay on-track with achieving your goals. Need help setting and staying committed to your financial goals? Contact your financial professional today to set up your consultation. Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. Sources https://skilledfinances.medium.com/how-to-stay-committed-to-your-financial-goals-aa78dc581056 https://www.fool.com/personal-finance/how-to-set-financial-goals-keep-them-2019.aspx Content Provider: WriterAccess LPL Tracking 01-05121935

Deciding which one comes first so you know where to focus your efforts When it comes to personal finance, there are a number of competing priorities that can make it difficult to determine where to focus your efforts. For many people, the choice between building emergency savings and working towards their retirement goals is one of the biggest dilemmas they face. So, which should you focus on first? In order to answer this question, it's important to understand what emergency savings and retirement goals are and why they are both important. Emergency savings refers to the amount of money you have set aside in a readily accessible account to cover unexpected expenses, such as a job loss, medical emergency, or major home repair. Retirement goals, on the other hand, are the plans you have in place to provide for yourself financially once you stop working. Both emergency savings and retirement goals are important, but the order in which you focus on them will depend on your individual financial situation. If you have a stable income and few financial obligations, you may be able to focus more on your retirement goals, knowing that you have a safety net in place in the form of your emergency savings. However, if you have limited income and high debt, you may need to prioritize building up your emergency savings in order to protect yourself from financial shocks. Emergency Savings First Here are a few reasons why emergency savings should come first: Peace of mind: Having a solid emergency fund in place can help you sleep better at night, knowing that you have a safety net in case of an unexpected expense. Protects against debt: If you don't have emergency savings, you may turn to credit cards or loans to cover unexpected expenses, which can quickly spiral into debt. Building up your emergency savings can help you avoid this trap. Provides flexibility: With an emergency fund in place, you have more flexibility to make decisions about your financial future, such as taking on a new job or starting a new business. Retirement Goals First However, there are also some good reasons why focusing on your retirement goals first can make sense: Time value of money: The earlier you start saving for retirement, the more time your money has to grow, which can make a big difference in the amount you have saved when you retire. Compound interest: The power of compound interest means that the earlier you start saving, the less you have to save each month in order to work towards your goals. Employer matching: If you participate in a 401(k) or other retirement plan at work, your employer may match a portion of your contributions. By maximizing this match, you can significantly increase your retirement savings. Emergency Savings vs. Retirement Goals So, which should come first? Ultimately, the answer will depend on your individual financial situation and goals. In any case, it's important to find a balance between the two. You don't want to neglect your emergency savings and end up in debt when an unexpected expense arises, but you also don't want to neglect your retirement savings and end up struggling to make ends meet in your later years. A good rule of thumb is to aim to have three to six months of living expenses in your emergency fund, and then start contributing to your retirement goals as soon as you can. Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. This article was prepared by FMeX. LPL Tracking #1-05358627

Financial goals are essential. Setting them will help you to obtain the things you want out of life as well as live the lifestyle you desire, both during your working years and in your retirement. But obtaining these goals isn't always easy unless you develop a money mindset that aligns and drives you to these goals. So how do you create this mindset to give you the ideal chance of obtaining your financial goals? Determine Your Values The easiest way to be confident with your financial goals is to align your spending habits with your values. This will allow you to better stick to your spending habits. So to start, you will need to determine the values that are important to you. Ask yourself, what do you value most, your family, your freedom, your security, or your health? In what order do you place these priorities? Once you have established these values, you need to spend your money in a way that correlates with these values. For example, if your family is most important, you may want to focus on saving for your children's future education, instead of spending the money on expensive clothing or take out. Determine What You Need to Do to Work Toward Your Goals Once you have established your goals and determined what you value most in your life, you will want to make a plan to pursue those goals. Want to be able to travel during your retirement? Come up with ways to increase your retirement savings. Invest more in your employer-sponsored account. Cut back on spending that is not necessary. Learn how to develop and manage a financial portfolio that may help you to address your goals. Start Small Changing your money mindset involves changing the way you think about money and spending it. But making large changes quickly will rarely work over the long term and may act as a deterrent, causing you to give up on your goals before you have a chance to obtain them. After you have determined the changes that you need to make, implement one change each month. That way, you will have time to get used to the small change and how they affect you, without feeling overwhelmed. The changes should be simple such as tracking your spending for the month or opening a retirement savings account. Follow the tips above to change your money mindset and get your head in a better place which may make your future financial goals seem easier to obtain. Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL tracking #1-05318508. Sources https://www.iwillteachyoutoberich.com/psychology-of-money/ https://www.ruleoneinvesting.com/blog/personal-development/4-valuable-tips-for-a-healthy-money-mindset https://lauradadams.com/money-mindset-tips-tools-for-financial-success

The Gatewood Wealth Solutions Investment Committee is excited to announce our new investment strategy: Cash Flow. For those of you who have been with GWS for a while, you know that one of our core financial planning strategies is creating and maintaining clients’ cash Hub Accounts, which remain liquid should they be needed in the case of a market downturn. That way, clients can keep the rest of their money in the market, without needing to pull it out in uncertain times. This has been the cash portion in your personal risk bucket, which allows us to invest for long-term returns and weather bear markets in your market risk bucket. The key is figuring out exactly how much money to keep in the cash hub and how much to keep in the market, which depends on a number of economic and personal factors (click here). As a client, your cash Hub Account acts as an important buffer in providing you a sustainable cash flow no matter the economic conditions. This intentional margin of safety has proved quite helpful during the trailing three years of two bear markets. But what if that money could also be working for you and earning interest, while still serving as a buffer? Enter our Cash Flow strategy. This approach brings together the best of both worlds — keeping your cash Hub Account intact, while also using it to generate additional interest for you. Before we implemented this strategy, the money in cash hubs typically generated only 0.35%, or 35 bps. The National Deposit rate for savings accounts is 0.37% with checking accounts much lower. Source: www.stllouisfed.org Am I a Good Fit for the Cash Flow Strategy? This strategy works best in certain situations, such as: You meet the account minimum: $50,000 (24-month cash Hub Account target of $50,000) You like the “personalized pension” approach: Prefer getting monthly checks, similar to pension payments, for living expenses You’re planning to take out money for big lump sum purchases: Saving for a house, taxes, or anything big lump sum payment in the future with a known time horizon. The goal of the strategy is to protect you from ever having to sell from your market risk portfolio during a drawdown. By growing your cash Hub Account now, you’ll be better equipped to keep your personalized pension payments coming while also preparing to take out lump sums in the future. How Does It Work? We've been coordinating the plan and delivering the personalized pension for clients for years; we just haven't yet maximized the yield in the cash bucket. Historically, we have raised cash to a 24-month target, meaning we don’t have to pull from your portfolio for two years. If you have 24 months of cash, you’re now leaving a lot of yield on the table considering the recent rise in interest rates. So, there is a spread to earn above pure cash (i.e., cash equivalents and bonds). This strategy divides funds into four risk buckets: Cash Sweep, Cash Equivalents, US Government, and Credit. Cash Sweep is the shortest-term bucket that holds 0-4 months of expenses, providing the lowest expected return but daily liquidity. Cash Equivalent is for cash that will be needed within the next 10 months and is invested in money market securities with an average maturity below 60 days, offering higher expected returns than pure cash. The US Government bucket invests in high-quality US government securities with a longer duration, offering higher yields from the term premium. The Credit bucket invests in securities with longer maturities and higher credit risk, offering higher expected returns from the term premium and credit premium, with an investment horizon of at least 16 months. By allocating your cash into funds according to time horizon and need, you can earn interest on your cash hub money while still keeping it appropriately liquid. While there is our Advisory management fee, it’s the same as your family’s current fee, and the yields net of fees are still much higher than the standard 35 bp interest you might make in a savings account or cash sweep account. If you’d like to speak with your Client Care Team about this strategy and if it may be right for you, don’t hesitate to reach out! * Please note that throughout this blog, “cash” refers to cash and cash alternatives, not cash sweeps, unless otherwise noted. Disclosures All investing involves risk including loss of principal. No strategy assures success or protects against loss.

Small businesses may often find themselves struggling, and there are many situations in which business owners may find themselves weathering a storm and hoping to make it through. While the strength and fortitude of those who run small businesses can be an asset in helping them succeed when times are rough, there are a few strategies that can make survival a little easier. Reduce Costs Strategically When things start to go awry, one of the first things most business owners look for is ways to cut down on expenses to improve cash flow. Unlike widespread significant cuts that large corporations often employ, small businesses must be more strategic with their trimming. For example, if you cut your staff down too drastically, you may find your company spread so thin that you are not able to recover. Likewise, if the cuts are too minor, they may not be enough to make a difference. Take time to make a well-researched analysis of how proposed cuts can affect your business in the present and the future.1 Find Low-Cost Marketing Solutions Even when times are tough, you need to continue to promote your company so that you are able to keep your current customers and try to obtain more, which can help increase your cash flow. The good news is that marketing your business is still possible even with a small budget. Put your company’s focus on types of marketing that may have a low initial cost and a higher return rate. Content marketing and social media marketing are great ways to draw in new business and get your name in front of potential customers without spending a lot upfront.2 Expand Your Network When times are tough for your business, they are likely hard for other businesses as well. There is strength in numbers, and connecting with other companies or industries may be the answer to some of your problems. You could cross-promote your business with other peers that provide complementary services, recommend each other's businesses, or see if there are other ways for you to help each other out.1 Don't Dwell on Past Mistakes When things start to go wrong, it is easy to get caught up in past mistakes. Dwelling on the past may make you continue to replay issues and situations that you believe brought you to the current point in your business. This may leave you wondering how the outcome would be if you had changed something. Unfortunately, the past is not able to be changed, and living with regret may prevent you from pushing forward and doing what you need to keep your business afloat.1 Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking #1-05361929 Footnotes 1”The Small Business Hard Times Survival Guide,” Live About https://www.liveabout.com/the-small-business-hard-times-survival-guide-2951407 2A 10-Point Small-Business Survival Plan for Dealing With the Coronavirus, Entrepreneur, https://www.entrepreneur.com/living/a-10-point-small-business-survival-plan-for-dealing-with/347913

Financial literacy is crucial, not only for adults but for everyone in the family. When you have a good foundation of financial literacy, you will have a greater understanding of money and prepare yourself for a brighter financial future. Ready to improve the financial literacy of your family? Below are a few ways to get started. Help Them Understand How Money Works One of the first steps in teaching your family financial literacy is helping everyone understand where the money comes from. When it comes to adults, income is most likely to come from a job. For children, their income is most likely an allowance, a part-time job, or the occasional influx of birthday or other gift money. Next, they will need to understand that the things they spend their money on are considered expenses. Get your children to understand the type of expenses associated with daily living, so it won't come as a surprise when they encounter their expenses.2 Show Them How to Distinguish Between Needs and Wants An important thing to instill in children early is the differences between needs and wants so that they learn how to spend their money appropriately. Tell them that needs are items that aren’t easy to live without, such as food, shelter, and clothing. Explain to them that wants are items that you would like to have but do not need. It is essential that they understand that spending money on wants should wait until after they are sure that all of their needs are met.1 Let Them Know the Importance of Savings Children need to know that, in some instances, expenses will be larger than anticipated. Because of that, savings are critical. Saving money when possible is vital to have the funds for large or unexpected expenses. With kids, you may want to start teaching them to save by showing that if they put their money away diligently, they will be able to purchase a much more expensive item they really want.2 Teach Them to Budget Teaching your children to budget is as important as teaching them how to save. With a budget in place, they will be able to satisfy their needs, learn to put money away for savings, and only spend their money on wants when they have it to spend. Budgeting is also a crucial tool to see where your money is going and find areas where you are able to cut back on expenses if needed. To create a simple budget, you need to account for all possible income and then calculate monthly expenses. If your income is less than your expenses, more income will be needed, or expenses will need to be cut. 1 Teaching financial literacy early on will help you prepare your family for the future and give them tools to help stave off financial problems while helping them pursue their financial goals. Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking #1-05359966 Footnotes 1 Money Matters: Financial Literacy for the Whole Family, ABC Money Matters, https://abcmoneymatters.ca/wp-content/uploads/2019/02/MM-SeminarSeries-Financial-Literacy-2019.pdf 2 Teaching Children About Money, Family Ed Center, https://familyedcentre.org/money-matters-when-parenting/

We're thrilled to announce that Barron’s has once again named John Gatewood to the Barron’s Top 1,200 Advisors List! The list is based on a variety of factors, including assets under management, revenue produced for the firm, regulatory record, quality of practice, and philanthropic work. “I am tremendously proud of our entire GWS team for this recognition,” said Gatewood Wealth Solution’s Founder & CEO John Gatewood. “Our advisors go above and beyond every day to help clients become and remain financially self-reliant by providing the highest level of personal service and financial advice.” Thank you to our hard-working team for helping us earn this recognition, as well as to our loyal clients. It is a privilege to serve you! To review the full list or get more information, visit here. Disclosures Barron's Top 1,200 Financial Advisors is based on assets under management, revenue produced for the firm, regulatory record, quality of practice and philanthropic work.

When discussing multigenerational wealth it is common to come across proverbs that acknowledge the fact that generational wealth typically won’t make it past the third generation. In the United States the saying goes, “from shirtsleeves to shirtsleeves in three generations.” [i] In China it is said, “rags to rags in three generations.” [ii] Generational wealth encompasses financial assets with a monetary value. These include investments, real estate, land, cash, collectibles, etc., that are passed from generation to generation. Why does wealth seem to disappear within three generations? Several reasons include: Mismanagement of wealth leading to an inheritance tax burden A growing family Spendthrifts Lack of financial education for those who are receiving the inheritance If you have concerns about assets being passed down, please view our checklist and determine where you stand. Do you participate in effective gifting? Using the annual gift exclusion and lifetime exemption is an effective strategy for passing on wealth to beneficiaries without being subject to significant tax responsibilities. The gift tax exclusion for 2023 is $17,000. That means both parents are allowed to give someone up to $17,000 per year ($34,000 per person), to as many people as they want. Should any of their gifts happen to exceed the gift exclusion limit, the amount in excess will go toward the lifetime exclusion amount which is currently $12.92 million in 2023. [iii] Are you familiar with how trusts work to preserve generational wealth? Trusts are legal entities that preserve wealth and allow the issuer of the trust to distribute the wealth as they see fit. They mitigate the risk of beneficiaries losing assets through lawsuits, divorce, or unexpected occurrences, and trusts also provide certain tax incentives. They can help you avoid probate, provide for a disabled beneficiary, establish a spousal trust, and other benefits. There are a variety of options to choose from and it is encouraged that you consult a financial professional to help you determine what works best for you and your family. Some of these trusts include: Living trusts Charitable and Charitable Remainder trusts Testamentary trusts Dynasty trust Spendthrift trust Irrevocable trust Are you teaching financial skills to the children who will inherit your wealth? It is critical to teach children the value of saving and how to invest. This can help to preserve the wealth they will one day inherit. It is a common theme that beneficiaries who inherit wealth will be tempted to spend it. However, this may stem from the fact that they don’t understand how to make the money work for them. Parents can educate their children and grandchildren on investing in financial instruments like stocks, bonds, CDs, annuities, and real estate interests. They can walk them through preparing a budget, provide them with financial literacy books, and even consider granting them a small sum of money to practice money management (while the parents monitors their progress). Do you know how taxes affect generational wealth as it is passed down? Depending on the amount of assets distributed to beneficiaries, and the manner in which they are passed down, the act of giving may trigger a gift tax. There are several methods of giving that can help to lessen the tax burden including: Annual gifting Lifetime gift exclusion Charitable giving Taking capital losses to offset capital gains Deduct medical expenses that exceed 7.5% of your adjusted gross income Tax credits can be more beneficial than tax deductions as they lower your tax bill dollar for dollar as opposed to reducing your taxable income, like the plug-in electric vehicle credit and residential energy efficient property credit [iv] Do your beneficiaries understand the value of compounding wealth? The earlier they begin investing money, the more beneficial the compounding interest will work on their behalf. The idea is long-term growth. To take full advantage of compounding wealth you have to be patient. A few common ways of investing where your interest compounds over time include: Dividend stocks High-yield savings accounts Bonds and bond funds Certificates of deposit (CDs) Real estate investment trusts (REITs) Simple interest annuities It is highly encouraged that you enlist the help of a financial professional to learn which investments would be appropriate for you and your family’s generational wealth distribution goals. Is there a family member you want to help with education expenses? A popular way to transfer wealth is by paying for a family member or friend’s education. With this strategy, the tuition is paid directly to the institution, which permits the giver to be exempt from gift taxes. Money used for books, room and board, and other educational expenses is not tax exempt. If the preservation of wealth over multiple generations is a plan that you are interested in exploring, consider consulting a financial professional who can help you design a strategy to pursue your financial goals. Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market. An increase in interest rates may cause the price of bonds and bond mutual funds to decline. CD’s are FDIC Insured and offer a fixed rate of return if held to maturity. Non-traded Real Estate Investment Trusts (REITs) invest in commercial real estate or real estate related debt, but unlike exchange-traded REITs are not listed on a national securities exchange. Non-traded REITs differ from exchange-traded products with similar strategies, and can carry significant risk that should be understood prior to investing. Significant risks include, but are not limited to: sector concentration, geographic, illiquidity, interest rate, change in governmental, tax, real estate, and zoning laws, and debt. Alternative investments, including REITs, may not be suitable for all investors, and the strategies employed in the management of alternative investments may accelerate the velocity of potential loss. Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value. LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by LPL Marketing Solutions Footnotes [i] How to beat the third-generation curse (smu.edu.sg) [ii] Why wealth lasts 3 generations ? - Entrepreneur Post [iii] IRS bumps up estate-tax exclusion to $12.92 million for 2023 (cnbc.com) [iv] 9 Best Ways to Lower Your Taxes - Experian LPL Tracking # 1-05361300