Stephen C. Detweiler, CFP®

Congratulations! Your hard work has paid off. You’ve finally hit that six-figure salary. You must be asking yourself, “What do I do now?” Whether you’re looking to start a family, work hard/play hard, or just want to retire as early as possible, making sure you’re saving and investing to reach your goals is going to be your first priority.  Employers offering pensions are a relic of the past, and social security may not be sufficient to satisfy your expense needs. It’s up to you to save enough.  Other professionals have advised 10% as a healthy savings goal, but if you wish to maintain your quality of life in retirement, this probably will not be enough. We advise saving 20%-30% of your gross income depending on your age and your earnings. The earlier you start, the greater the chance that 20% will be enough. However, the more you make, the higher the percentage you’ll need to save. These amounts could be adjusted further depending on your targeted retirement age. Where You Are Saving Is Just as Important as How Much You Are Saving! Navigating the complexities of a comprehensive financial strategy can be daunting. A CERTIFIED FINANCIAL PLANNER™ practitioner will be able to

There is something special about the holidays that, for some, elicits deep feelings of philanthropy. So, it is not uncommon that at this time of year we get questions about charitable donations. But, before simply writing a check to a charity, you should consider other ways to gift that may benefit you as well as the charity. Two great strategies to consider are gifting highly appreciated securities and utilizing Qualified Charitable Distributions (QCD’s). We’ll touch on some lesser-implemented strategies as well.  Gifting Highly Appreciated Securities There are certain types of accounts in which we invest that are subject to capital gains tax. This tax is different from your 401k or your IRA because you only have to pay tax on amounts that you made on the investment. You see, accounts such as individual brokerage accounts, joint tenant accounts, trust accounts, and the like are funded with money that you have already paid tax on. So, the IRS can’t tax you on those dollars again. They do, however, tax you on the amounts that your investments made. This tax is called capital gains tax and occurs once the investment has been sold. At times, the value of these investments grows so

Saving for your child’s college isn’t an easy endeavor. It is increasingly expensive, which can make it challenging to cover even a portion of the total, much less the entire cost. This is why the best strategy is to start saving early. However, for those who are starting later, there are still financial planning opportunities to help support your savings goals.

$250,000 in joint gross income is a substantial sum! Is it too much to qualify for need-based financial aid? Not necessarily. Is a 3.0 high school GPA and an 1100 SAT score good enough to qualify for merit scholarships? It might be. The formula for need-based financial aid is more nuanced than one might think. In addition to obvious considerations such as income and assets, other key variables include number of children in college and which college the student is applying to. Most schools rely on the FAFSA to calculate the dollar amount that a family is expected to contribute towards their child’s tuition each year. This dollar amount is commonly referred to as the EFC (Expected Family Contribution). The FAFSA, or Free Application for Federal Student Aid, is required to be completed each year to determine eligibility for financial aid. It can be completed online for free and consists of a variety of questions related to parental and student income and assets. Many private schools require an additional financial aid form called the CSS Profile, which is used to determine financial aid offered directly by the institution. Have multiple children headed for college? You may not need to rule