retirement

Your Guide to Financial Stability as a Military Spouse, Courtesy of a Financial Planner

Sam Kroll — Fri, 30 Jan 2026 15:50:28 +0000

Your Guide to Financial Stability as a Military Spouse, Courtesy of a Financial Planner Sam Kroll Fri, 01/30/2026 - 09:50

Being a military spouse can throw constant curveballs your way. Between demanding work schedules for the servicemember, frequent moves and living alone or taking on single-parenting duties during deployments, the life of a military spouse is all about navigating disruption.

If you're a military spouse handling the family finances, whether by choice or necessity, this article aims to help you feel empowered and prepared to make smart financial decisions.

Here are practical tips and resources that will help you manage your finances and military life.

Short-term financial goals

Having the right amount of cash set aside as emergency savings can be a simple way to be prepared for the unexpected. Saving at least three to six months' worth of non-discretionary expenses is recommended.

Non-discretionary expenses include those items you must pay each month, such as rent/mortgage, car loan payments, food, gas, childcare and so on.

The recent government shutdown serves as a reminder of why an emergency savings account is imperative. It will provide some breathing room if there is a disruption to your normal expected income. To build up an emergency fund:

Pay yourself first after receiving each paycheck.
If the servicemember is receiving additional pay for items such as Family Separation Allowance, combat pay, hazardous duty pay, etc., try to set aside a portion of those extra funds to build up your savings. If you're unsure whether the servicemember is receiving these special payments, have them log into myPay to review their Leave and Earnings Statement (LES).

If you are struggling to save, take some time to set up a budget to prioritize monthly savings. A good rule of thumb is to spend 50% of monthly after-tax pay on your non-discretionary items, 30% on discretionary items (dining out, movies, travel, entertainment) and 20% on savings (retirement savings, emergency fund, saving for other goals).

Long-term financial goals

Contributing to retirement accounts
Whether the servicemember plans to serve for at least 20 years to earn a military pension or wants to return to civilian life after four years of service, it's never too early to begin planning for retirement.

The servicemember can contribute to the Thrift Savings Plan (TSP) and should be contributing at least 5% after one year of service under the Blended Retirement System to maximize the government match.

It's important for the servicemember to review their contribution percentage by logging into TSP.gov or logging into myPay to make updates to contributions.

Similarly, if you're employed and have a retirement plan, it's always best to contribute at least enough to receive the full match from your employer, if applicable, so you aren't leaving free money on the table.

It's even better if you can afford to contribute the maximum amount ($24,500 for 2026 if under age 50, and an additional $8,000 for a catch-up contribution for those over 50).

Traditional and Roth IRAs
If you are not currently employed, you can still save for retirement by making annual contributions to a traditional or Roth IRA (subject to income limitations).

While the maximum contribution limits for IRAs ($7,500 for 2026 if under age 50 plus a $1,100 catch-up contribution for those age 50 and older) are not as high as for an employer-defined contribution plan (401(k), 403(b), etc.), you're still able to contribute without having earned income, as long as you file taxes married filing jointly (MFJ) and the servicemember is employed.

Of course, if both you and the servicemember are employed, you can still contribute to a traditional IRA (tax deductibility subject to income limitations) in addition to your employer retirement plan.

Contributions to a Roth IRA are subject to income limitations, so you will want to ensure you are below those Modified Adjusted Gross Income (MAGI) limits before contributing to a Roth IRA.

Choosing between a traditional or Roth IRA will depend on whether you want to get a potential tax break now (traditional IRA) or get a potential tax break in retirement (Roth IRA). If you are eligible to receive a tax deduction, consider a contribution to a traditional IRA. This allows you to forgo taxes now and then pay taxes when you take a distribution in retirement (after age 59½).

Alternatively, if you prefer to pay the taxes now and are below the income thresholds, consider a contribution to a Roth IRA.

These contributions, as well as the earnings on the contributions, can be withdrawn tax-free in retirement, provided the account has been open for at least five years and you have reached age 59½.

As mentioned, there are rules and income limitations associated with traditional and Roth IRA contributions, so consider consulting with a tax professional to ensure you're compliant with these rules. Military One Source provides free tax preparation and consultation through MilTax and is a great resource for the military community.

Education and career benefits

It can often be challenging for military spouses to find employment due to frequent relocation. For those spouses looking for new employment or those who may want to explore starting a career or going back to school, the military offers several resources and benefits to help you.

Post-9/11 GI Bill
Servicemembers may be eligible to transfer some or all of their Post-9/11 GI Bill benefit to their spouse. The GI Bill covers tuition, housing and books.

Military Spouse Preference Program
The Department of Defense has a program that gives priority consideration to military spouses for DOD civilian jobs. Requirements include being the spouse of an active duty servicemember and being listed on the Permanent Change of Station orders to a new duty station.

Military Spouse Licensing Relief Act (MSLRA)
The MSLRA was passed in 2023 to alleviate challenges military spouses face when relocating and who hold state occupational licenses (for example, teachers, nurses and realtors).

This act allows the license holder to transfer their license to the new state. Additionally, each branch of service may have a licensure reimbursement program (up to $1,000) for military spouses who relocate. Check with your specific branch of service.

Military Spouse Education and Career Opportunities (MySeco)
The DOD offers free career counseling, education scholarship opportunities and much more through MySeco.

Military Spouse Residency Relief Act (MSRRA)
If you are a military spouse with earned income, it can be confusing to determine in which state you need to file your state tax return. The MSRRA provides flexibility in choosing either your own state, the state where the servicemember claims residency, or where you are currently stationed.

This allows you to be strategic, especially if one of those states happens to be a state with no income tax.

This can be a complex topic, so discuss it with a tax adviser. Again, MilTax will be knowledgeable in these military laws and may be a good resource for you.

Content in this article is for general information only and not intended to provide specific advice or recommendations for any individual. This information is not intended to provide individualized tax or legal advice. Discuss your specific situation with a qualified tax or legal professional.

This article was originally published by Kiplinger here.

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4 minutes

What is a fiduciary? A Comprehensive Guide to The Roles, Duties, And Responsibilities of Fiduciaries

Sam Kroll — Mon, 06 Oct 2025 15:03:18 +0000

What is a fiduciary? A Comprehensive Guide to The Roles, Duties, And Responsibilities of Fiduciaries Sam Kroll Mon, 10/06/2025 - 10:03

When managing your finances, preparing for retirement, or planning your estate, trust isn’t just nice to have—it’s essential. That’s where fiduciaries come in. Whether you’re seeking investment support or arranging for future care and asset distribution, understanding the role of a fiduciary can help you make more informed and confident decisions.

In this guide, we explore what a fiduciary is, what fiduciaries are obligated to do, and how to choose the right one for your situation.

What is a fiduciary?

A fiduciary is a person or organization who has a legal and ethical obligation to act in your best interest. It’s a relationship built on trust, where the fiduciary must put your needs and interests above their own.

Fiduciaries are often professionals like financial advisors or attorneys, but they can also be individuals appointed in a personal capacity, such as a family member named executor of a will. Yet, what makes someone a fiduciary isn’t just the role they play. It’s the standard of care and loyalty they’re required to uphold.

Types of fiduciaries

Fiduciaries serve in a wide range of roles, depending on the nature of their relationship with those they serve. Different types of fiduciary relationships include guardians and wards, lawyers and clients, boards and shareholders, and financial advisors and clients.

Some of the more familiar fiduciary roles arise in an estate planning context. These representatives are typically appointed through legal documents such as wills, trusts, or powers of attorney and are responsible for making decisions on behalf of others:

Trustees: A trustee manages a trust in accordance with its terms for the benefit of one or more beneficiaries. A trustee’s fiduciary responsibilities extend to how they handle investments, pay taxes, and distribute assets.
Guardians or conservators: These representatives are appointed to act on behalf of a minor or an incapacitated adult and are bound to a fiduciary duty when making personal, medical, or financial decisions.
Executors: Sometimes referred to as personal representatives, executors are responsible for settling an estate after someone dies. They act as fiduciaries when identifying and securing assets, paying debts and taxes, and distributing assets as outlined in a will.

In the financial services space, fiduciaries help manage and oversee investment portfolios, retirement accounts, and broader financial planning. Key examples include:

Registered investment advisors (RIAs): Regulated under the Investment Advisors Act of 1940, RIAs are held to a fiduciary standard by law. This means they must always act in the client’s best interest, disclose potential conflicts of interest, and provide transparent advice.
Certified financial planners (CFPs): Under the CFP Board’s Code of Ethics and Standards of Conduct, CFPs are bound by a fiduciary duty that requires them to prioritize their clients’ financial well-being, put their clients’ interests above their own, avoid or disclose conflicts of interest, and exercise diligence and care in providing financial advice.
Retirement plan sponsors: If you participate in a workplace retirement plan like a 401k, the plan sponsor or investment committee that oversees that plan has a fiduciary responsibility under the Employee Retirement Income Security Act (ERISA) to make informed investment selections, manage plan costs, and act solely in the interest of plan participants. Learn more here.

Conspicuously missing from this list are financial advisors. That’s because not all financial advisors are fiduciaries. Some are only required to adhere to the “suitability standard”.

What is the suitability standard?

Unless a financial advisor or wealth manager holds an RIA, CFP, or similar designation, they may not be bound by fiduciary duties. As a result, non-fiduciary financial advisors may choose to recommend products or investments that provide them with the highest fees, even if those aren’t the best fit for their clients. On the flip side, the recommendations provided by fiduciary financial advisors must always serve the client’s financial goals—rather than being based on the commissions or firm incentives they may earn.

Core fiduciary responsibilities

Fiduciaries don’t just manage money or maintain accurate records. They operate under a legal framework that requires them to meet specific obligations, all designed to protect the interests of those they serve. That said, different laws set out different types of fiduciary obligations. Some of the more common fiduciary duties include:

Duty of loyalty: Fiduciaries must avoid conflicts of interest and act solely in the best interests of their clients and beneficiaries. For example, a trustee can’t benefit personally from trust assets unless explicitly allowed under the trust’s terms. Similarly, a fiduciary advisor should not recommend a financial product because it pays them a commission, unless the payment is fully disclosed and the product truly serves the client’s goals.
Duty of care: This obligation requires fiduciaries to make well-informed decisions. Whether managing investments, reviewing legal documents, or making medical choices on someone’s behalf, a fiduciary must exercise sound judgment, diligence, and experience. For instance, a financial fiduciary should research investment options carefully before making recommendations, just as a guardian should seek appropriate medical input before making health care decisions.
Duty of full disclosure: Fiduciaries are required to communicate openly and honestly. This means disclosing any fees, compensation structures, conflicts of interest, or material information that could affect the individual they represent. Transparency is a core pillar of fiduciary relationships.

You can dive deeper into the roles and obligations of a fiduciary financial advisor here.

The fiduciary standard in practice

To understand how the fiduciary duty works in practice, it can be helpful to consider some examples. For instance, a financial advisor bound by fiduciary duty may recommend a low-cost index fund because it aligns best with a client’s long-term goals, even if the investment generates less revenue for the firm. Similarly, a trustee administering a special needs trust must confirm that disbursements don’t jeopardize a beneficiary's eligibility for government assistance and that they are made strictly according to the trust’s guidelines. These responsibilities aren’t just good practice. They’re legally enforceable.

Legal consequences of a breach of fiduciary duty

Because fiduciaries are entrusted with significant responsibility, failure to uphold their obligations can lead to serious legal consequences. While legal outcomes may vary depending on the nature and severity of the breach, they can include civil lawsuits brought by beneficiaries or clients, court orders to repay losses or correct mistakes, professional sanctions such as disciplinary action or loss of licensure, and removal from the role.

A breach of fiduciary duty occurs when a fiduciary fails to act in the best interest of the person they serve by:

Acting in their own self-interest
Neglecting responsibilities or making uninformed decisions
Failing to disclose conflicts of interest or important information
Violating the terms of a will, trust, or agreement
Mismanaging assets

Even if the fiduciary did not intend to do harm, negligence or poor decision-making can still result in a breach if it causes damage to the client or beneficiaries. To manage these risks, fiduciaries generally rely on established policies and procedures, commit to ongoing and transparent reporting, and consult independent experts as needed.

How to choose the right fiduciary

Choosing a fiduciary is both a practical and deeply personal decision. You’re not only entrusting someone with your finances or legal matters. You’re giving them authority over decisions that affect your well-being and legacy. For these reasons, it’s essential to vet your fiduciary carefully, whether it’s a financial advisor, attorney, executor, or trustee.

In advance of appointing a fiduciary, interview at least two candidates. You can ask for referrals from a trusted friend or family member. When assessing their skills, consider asking the following questions:

“Are you legally bound to a fiduciary standard?”
“How are you compensated, and do you receive commissions?”
“Can you provide references or examples of past fiduciary roles?”
“How do you manage potential conflicts of interest?”
“What’s your process for making important decisions?”

Checklist for choosing a fiduciary

Are they legally obligated to act in your best interest?
Do they have relevant credentials, such as CFP, RIA, or chartered professional accountant (CPA)?
Are they registered with the Securities and Exchange Commission (SEC)?
Have they served as a fiduciary before?
Are they financially responsible and trustworthy?
Can they handle the complexity and time commitment involved?
Will they remain impartial if family dynamics get complicated?

Read this article for more suggestions on the criteria you can use to evaluate each candidate.

Benefits of working with a fiduciary

When you work with a fiduciary, you aren’t just hiring a service provider. You’re engaging a trusted partner who is committed to protecting your interests. This translates into a range of benefits, including:

Legal accountability: Unlike non-fiduciary professionals, fiduciaries must act according to a clearly defined legal standard. This helps prevent conflicts of interest and gives you legal recourse if something goes wrong. It’s an extra layer of protection for your financial well-being.
Knowledgeable advice: Fiduciaries must offer specialized guidance, providing recommendations that aren’t swayed by commissions, sales targets, or third-party incentives. Their focus is on doing what’s best for you, not what’s easiest or most profitable for them.
Confidence: Knowing your fiduciary is legally and ethically bound to act in your best interest allows you to focus on what matters—whether that’s enjoying retirement, caring for loved ones, or building your legacy.

Common myths about fiduciaries

Although the term “fiduciary” is often heard, it’s not an obligation that’s well-understood. To bring greater clarity, let’s clear up common myths:

Myth 1: All financial advisors are fiduciaries

As we mentioned earlier, only registered investment advisors, certified financial planners, and similarly designated advisors who operate under fiduciary mandates are legally bound to put your interests first. Others may follow the suitability standard, meaning they must recommend investments that are suitable, but not necessarily those that are the best for your needs or the lowest cost.

Myth 2: Fiduciaries are only for the wealthy

Anyone with assets, children, or a need for financial guidance can benefit from a fiduciary relationship. Estate planning, investment management, and even elder care often require fiduciary oversight, regardless of wealth. Plus, the clarity and protection that fiduciaries offer can benefit individuals and families at every income level.

Myth 3: Fiduciaries can’t be family members

In many estate plans, family members are appointed as executors, guardians, or trustees. While professional fiduciaries may possess specialized knowledge, a trusted family member can serve effectively, especially with proper guidance and legal support.

Myth 4: Fiduciary relationships are permanent

In many cases, fiduciary roles can be revoked or reassigned. Some even expire after a particular duty is fulfilled.

Regulations governing fiduciaries

In 2016, the Department of Labor (DOL) introduced the fiduciary rule, which would have required all financial professionals offering advice on retirement accounts to follow a fiduciary standard. The rule was designed to eliminate conflicts of interest and enhance transparency, especially around fees and commissions. However, the rule was overturned in 2018 following legal challenges, leaving a patchwork of standards in its place.

Today, fiduciary standards are governed by several agencies:

Securities and Exchange Commission (SEC): Under Regulation Best Interest (Reg BI), broker-dealers must act in the best interest of their clients when recommending securities, but this standard is still considered less stringent than a full fiduciary duty.
Financial Industry Regulatory Authority (FINRA): While FINRA requires that investment recommendations be “suitable”, it does not mandate that they be optimal or conflict-free.
Department of Labor (DOL): As the regulatory authority overseeing employment standards, the DOL continues to push for a stronger regulatory framework for retirement plan advisors under ERISA.

Understanding these nuances can help you evaluate whether a financial professional is truly working in your best interest. For added certainty, take time to read the Form CRS Relationship Summary that financial professionals are required to share with clients, outlining the nature of the proposed relationship, the services offered and their associated fees, and any conflicts of interest.

The bottom line

Fiduciaries play an essential role in protecting your interests—financially, legally, and personally. Whether you’re appointing someone to oversee your estate, manage investments, or act on your behalf in times of need, choosing a fiduciary offers confidence [MR1] and legal assurance that your goals will be honored.

From legal accountability to specialized advice, the benefits of working with a fiduciary are clear. But not all professionals are held to this high standard, so it’s worth asking the right questions and choosing someone committed to serving your best interests.

If you’re ready to appoint a fiduciary or would like to learn more about the fiduciary role, contact a fiduciary financial advisor at Wealth Enhancement to get started

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

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7 minutes

Angie Rummel

AARP: Stephanie Ford Featured in "Should You Pay Off Your Mortgage Before Retirement?"

Sofia Gulino — Fri, 12 Sep 2025 12:40:45 +0000

AARP: Stephanie Ford Featured in "Should You Pay Off Your Mortgage Before Retirement?" Sofia Gulino Fri, 09/12/2025 - 07:40

Stephanie Ford, CRPC®, CDFA® Senior Vice President and Financial Advisor at Wealth Enhancement, was featured by AARP in the article, “Should You Pay Off Your Mortgage Before Retirement?”

“Paying off your mortgage can eliminate a major monthly expense, save money on interest, improve your cash flow and reduce financial stress,” says Stephanie Ford, a financial adviser at Wealth Enhancement Group in Tucson, Arizona.

Read the full article here:

https://www.aarp.org/money/retirement/mortgage-payoff-guide/

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mortgage

retirement

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1 minute

Stephanie Ford

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Media appearances

Retirement Income Planning

admin — Mon, 26 May 2025 13:35:39 +0000

Retirement Income Planning

admin Mon, 05/26/2025 - 08:35

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Key elements of retirement income planning

Defined contribution plans

Defined contribution plans allow both employees and employers to contribute funds towards savings.

Defined benefit plans

Defined benefit plans provide a fixed income at retirement that is usually funded by an employer.

Cash flow analysis

Our team can work with you to set your budget and plan distributions for better outcomes throughout your retirement.

Annuities

Annuities provide you with regular income for a set period, which can be used as retirement funds.

Traditional IRAs and Roth IRAs

Our team can recommend a combination of different retirement accounts with tax-optimization in mind.

Required minimum distribution planning

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When You Should Care About Market Volatility

wegmigrate — Sun, 27 Apr 2025 05:00:00 +0000

When You Should Care About Market Volatility wegmigrate Sun, 04/27/2025 - 00:00

If you’re looking to retire someday (and who isn’t?), then you likely have a good chunk of money invested in various securities. And when you’re counting on those investments to grow so you can pay for the retirement of your dreams, it can be scary watching the markets go up and down.

Market volatility is never fun, but it’s also not something you need to be concerned with on a daily basis. It’s natural to worry when your investments are down and cheer when they’re up, but constantly checking investment performance isn’t doing you any favors–especially if you already have a long-term financial plan that’s built to withstand the ups and downs of the market.

There are, however, a few instances when you should be keeping an eye on market performance. Here are three times when you should care about market volatility.

If You’re About to Retire

This is the home stretch. All those years of saving are finally about to pay off, so you likely can’t afford to deal with any serious declines now. Volatility in the markets is a much more relevant issue here than if you’re still years away from retiring. If your portfolio does take a hit during the period before you retire, your future returns may be severely affected. You may even have to alter expectations for your lifestyle in retirement if you don’t take steps to correct course.

Younger investors have the time to absorb downturns in the markets that those in retirement might not have. If you’re 30 or even 40, you have longevity on your side. While history doesn’t guarantee anything in the future, the markets usually come back from significant declines. You’ll likely have time to recoup the “losses” you experience in a downturn–as long as you don’t fall victim to panic and sell at the wrong time.

Additionally, you still need an income after you retire. Your bills and expenses won’t suddenly go away once you hit retirement, and you’ll need positive returns from your retirement accounts to pay for these expenses. If you suddenly find yourself in a market downturn, you may need to move some assets around between various taxed, tax-deferred, and tax-advantaged accounts so you can still pay for your expenses in the short term.

If You Have a Higher Allocation of Stocks Than Bonds

A portfolio that has a higher allocation of stocks tends to be more susceptible to market volatility than a portfolio that is mostly comprised of fixed-income investments. Historically, the U.S. stock market has been known to fluctuate pretty significantly from year to year. Since 1926, using end-of-year data, yearly real returns have ranged from -38% to +58% and rarely stayed flat. Meanwhile, the fixed income market has historically been much steadier. Since 1976, yearly real returns on the Barclays Bloomberg U.S. Aggregate Bond Index have ranged from -10% to +27%, with most returns staying within the range of -7% to +7%.

Historical data can’t be counted on as a direct indicator of future performance, but the data shows stocks have historically had a much stronger response to changes in the market than bonds. While stocks have the ability to yield higher returns, you have to hold your breath through greater periods of volatility. Basically, the greater the risk, the greater the reward. Bonds, on the other hand, come with historically less risk and less reward.

An experienced financial advisor can help you identify your risk tolerance and build a portfolio around it. But you also need to then rebalance your portfolio from time to time. If you rebalance regularly, then market volatility is likely less of a concern to you, since you’re keeping your portfolio aligned with your ideal levels of risk. If you rarely (or never) rebalance, your portfolio may have a greater allocation of stocks than you realize.

If You Need Money in the Near Term

At Wealth Enhancement, we have a proprietary tool called the Your Money Matrix™ to help you plan your long-term financial strategy. Using the Your Money Matrix, you allocate assets into retirement accounts based on when you plan to use them: the next five years (short-term), 6-10 years (mid-term), or 10 or more years (long-term). Money that you could need in the next five years is much more susceptible to volatility than money you won’t need for 6-10 years, or even longer. That’s why it’s important to split your money into short-term, mid-term and long-term buckets. Invest shorter-term money in more conservative, fixed-income investments, and invest longer-term money in higher risk, higher reward investments like stocks.

With people living longer than ever before, it’s not unreasonable to think you’ll need your retirement savings to last for 20 or 30 years. When you categorize your investment holdings into short-, mid- and long-term buckets, you can stress less about the ups and downs of the market, because the money you’ll need in the near future is held in instruments less vulnerable to volatility. Meanwhile, the long-term money that goes up and down with the markets likely has a long enough timeline to recover from its low points.

It’s understandable why people invested in stocks might closely follow the markets, but that doesn’t necessarily mean you need to worry when there is a correction. If you have a long-term plan based on your values, you should be ready to ride out any volatility the market throws at you.

And if you don’t have a long-term plan, reach out to a financial advisor today to learn how to safeguard your retirement from extreme market volatility.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

All investing involves risk including loss of principal. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

2025-7180 03/25

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5 minutes

Chad Essman

What a Difference a Dollar Makes: These Are the Metros Where Your Paycheck Stretches the Furthest

wegmigrate — Thu, 10 Apr 2025 05:00:00 +0000

What a Difference a Dollar Makes: These Are the Metros Where Your Paycheck Stretches the Furthest wegmigrate Thu, 04/10/2025 - 00:00

By Ben Popken

Data Work by Elena Cox

It's getting hard out there to be an everyday consumer. Prices are up, and so is unemployment. President Donald Trump's newly announced tariffs are contributing to a haze of economic uncertainty. Bracing for impact, shoppers are trimming their grocery runs and seeking discounts, and their confidence in the economy is plunging, according to The Conference Board. Wage growth has been slowing, and job seekers are heading into a job market downturn as businesses pause hiring in the face of an anxious forecast and rising recession fears. Savers are counting their pennies, and kitchen table economics are getting trickier.

That said, it's as important as ever for workers and families to ensure their dollars buy the most they can. Still, that's not the same nationwide. Some cities are more expensive, and others are more affordable. One economic measurement of this is "price parity," determined as a percentage of each year's overall national price level. A metro with a regional price parity, or RPP, of 100 has goods and services equal to the national price. One with an RPP of 110 costs 10% more than the national level, while one with an RPP of 83 is 83% of the national level. Certain areas are more expensive than others due to various factors, including demand for housing and rent, local wages, taxes, and transportation.

Median household income is the dividing line where half of households earn more than that amount and half earn less. Some people get paid more in certain parts of the country. That area may have a greater concentration of high-paying jobs. Those jobs may require higher-skilled workers, or there may be a high demand for them. If the cost of living is higher, employees will have a cost-of-living adjustment, giving them a higher salary than a worker living across the country in a more affordable area. Regions experiencing faster growth will have more competitive labor markets, and companies must offer higher wages to attract workers.

Purchasing power is what your dollars can buy in your local economy. In Seattle, where the median household income is about $110,000, the cost of living is about 13% more expensive than average in the United States, meaning a six-figure median income feels closer to just $93,000.

The islands of Hawai'i are more expensive because many goods have to be imported, and there are fewer retailers. Due to this, $1,000 only buys you about $920 of goods and services, according to a Bureau of Economic Analysis price comparison. In California, $1,000 equals $888; in Washington D.C, it's only $902.

Wealth Enhancement compared median incomes and price parity data from the BEA to examine metros where a paycheck goes the farthest and where it doesn't feel like it goes very far at all.

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The financial geography of America shows there are zones where modest incomes translate into larger lifestyle gains. While Southern households earn less on paper, $73,280 in 2023 versus the national median of $80,610, according to the Peter G. Peterson Foundation's analysis of Census Bureau data, their money performs better at the cash register thanks to lower regional price parities.

Take Fort Smith, Arkansas, a manufacturing and health care hub. As of March 12, 2025, gas pumps show $2.74 per gallon versus the national $3.09 average, giving drivers a 12% discount every time they fill up. A dozen large eggs at Aldi rings up at $6.59, undercutting the national wholesale average of $6.85 as of March 7. The real discounts, however, are seen in housing, where average rents run just $1,000 monthly as of March 11, according to Zillow—barely half the national average of $2,050.

Kingsport, Tennessee, tells a similar story. Health care, manufacturing, and education power the local economy, while gas prices as of March 12 cost $2.74 per gallon. A dozen large eggs at Food City will run you $6.99. At $1,300 monthly on average, housing still delivers a substantial $750 monthly discount versus the national norm.

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These price differentials explain why many Southerners living on seemingly modest incomes might enjoy more disposable income. The raw numbers on a paycheck only tell half the story. What those dollars can buy determines the relative degree of financial comfort.

Despite High Salaries, the Cost of Living Takes a Toll in These Places

The tug of the West Coast's economic rip current makes higher paychecks feel smaller. As of March 12, 2025, San Francisco residents shell out $9.99 for a dozen eggs and $4.85 per gallon at the pump. The average rent is an eye-popping $3,195 monthly. In Los Angeles, where entertainment and logistics drive the local economy, prices are also toasty: $9.99 for eggs, $4.68 for gas, and $2,748 in monthly rent can quickly eat up paychecks. The math reveals why so many six-figure earners still feel cash-strapped. Higher regional price parities in these metros effectively downsize those impressive salaries.

The where-to-live equation isn't just about mortgage payments and receipts. Sure, savvy consumers crunch numbers on the full financial picture, calculating and comparing the various taxes, commutes, insurance, and groceries between ZIP codes. Still, life can't be boiled down to just a spreadsheet. People might want to live near family for closeness and help with child care. Others might need nearby nature access to regain peace on the weekends or to be in the right school district for their kids.

As part of deciding to move, consider the regional price parities and the return on happiness. A longer commute might allow you to live in a bigger house or quieter, nature-filled neighborhood, but that drive will shave hours off your life each week. Even a remote job can be stressful in terms of feeling socially or professionally isolated. One good idea is to try renting near where you're thinking of living for a week or weekend and see what it's like to be in the rhythm of the neighborhood. What makes a house a home is a balance of lifestyle and affordability.

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This information is not intended as a recommendation. The opinions are subject to change at any time and no forecasts can be guaranteed. Investment decisions should always be made based on an investor's specific circumstances. Investing involves risk, including possible loss of principal.

#2025-7336

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Social Security Fairness Act: Five Financial Planning Issues to Revisit

wegmigrate — Wed, 02 Apr 2025 05:00:00 +0000

Social Security Fairness Act: Five Financial Planning Issues to Revisit wegmigrate Wed, 04/02/2025 - 00:00

For decades, public-sector retirees with state-backed pensions have faced reductions in their Social Security benefits due to the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions were designed to adjust Social Security payments for those receiving government pensions. But now, that’s all changed.

With the passage of the Social Security Fairness Act (SSFA), both WEP and GPO have been repealed. This brings significant financial implications for millions of public-sector retirees.

The Social Security Fairness Act, summarized

By eliminating both WEP and GPO, the SSFA guarantees that pension-eligible retirees who paid into the Social Security system will receive their full benefits, rather than having them reduced due to their public pension. This correction helps level the playing field for teachers, firefighters, police officers and other public servants who spent part or all of their careers contributing to Social Security.

Now that we’ve covered the basics, let’s unpack the details.

What the Social Security Fairness Act means for retirees

The SSFA, which was signed into law by President Joe Biden on January 5, 2025, increases Social Security payments for those previously affected by WEP and GPO:

Employees subject to WEP will see an average increase of $360 per month
Spouses impacted by GPO can expect an average boost of $700 per month
Widows or widowers affected by GPO will receive an average increase of $1,190 per month

The new law is retroactive to benefits payable after December 2023, which means that retirees affected by the law will receive a lump sum equal to the value they would’ve received since the start of 2024.

Who benefits from the SSFA?

This change in policy is intended to ensure that public-sector retirees who paid into Social Security during part or all their careers receive the full Social Security benefits they’ve earned, without reductions from the WEP or the GPO.

For example, let’s say Sam is a federal employee who is eligible for a pension, but who also paid into Social Security prior to becoming a federal employee. Previously, WEP would’ve reduced his Social Security benefits to account for this pension income. With the passage of the SSFA, this offset is eliminated.

Similarly, Amanda has just retired after 30 years of teaching. Her husband is a high-earning construction contractor. Previously, she would’ve seen any spousal and survivor benefits reduced by the GPO due to her teacher’s pension. Now, under the new law, she will receive the full benefit amount.

What should you do?

For those who’ve received reduced benefits due to WEP or GPO, the Social Security Administration is automatically adjusting payments and issuing retroactive payments.

Beneficiaries do not need to reapply for Social Security, but they should ensure their mailing address and direct-deposit details are up to date through the SSA website.

Key financial planning considerations for public-sector retirees

Having more money is a good problem to have, but affected retirees need to consider these five potential implications of the SSFA’s passage:

Tax brackets. Social Security benefits are partially taxable based on income. Higher Social Security payments may push some retirees into a higher tax bracket, or increase the taxable portion of their benefits. Retirees could also move into a higher capital gains tax bracket.
Medicare costs. Medicare Part B and D premiums are based on income and have a two-year look-back period. Higher Social Security benefits today could push retirees into a higher premium bracket in the future.
Tax mitigation strategies. The additional income may impact required minimum distributions (RMDs) and Roth conversion strategies.
Investment taxes. An increase in income may trigger the net investment income tax (NIIT) for individuals with a modified adjusted gross income (MAGI) above $200,000 (single) or $250,000 (married filing jointly).
Income-based programs. Retirees who were previously eligible for Supplemental Nutrition Assistance Program (SNAP) or other programs could lose their eligibility due to increased income.

Looking ahead: The future of Social Security

The repeal of WEP and GPO represents a major shift in Social Security policy. While this change increases benefits for some public-sector employees, it could also place additional financial strain on Social Security’s trust funds, potentially accelerating the timeline for depletion if no new revenue sources are introduced.

Regardless of the future, the SSFA is law today. Affected individuals should take action as soon as possible by reassessing their retirement plans with the help of an experienced financial adviser.

This article was originally published by Kiplinger.

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3 minutes

Daniel Goodman

Video: "Women in Investing" - Investment Management Foundations

wegmigrate — Thu, 06 Mar 2025 06:00:00 +0000

Video: "Women in Investing" - Investment Management Foundations wegmigrate Thu, 03/06/2025 - 00:00

We are reposting this video in honor of Women's History Month and International Women's Day! In this episode of “Investment Management Foundations,” Aya Yoshioka, Portfolio Consulting Director at Wealth Enhancement, discusses the topic of women and investing, highlighting a survey that shows 68% of women versus 55% of men are concerned about running out of money in retirement, as well as some additional topics.

VIDEO TRANSCRIPT BELOW

Hello. Welcome to today's edition of “Investment Management Foundations.” My name is Aya Yoshioka, Portfolio Consulting Director and Senior Investment Strategist here at Wealth Enhancement. Today, I'm here to discuss a topic that is near and dear to me: women and investing. As I've navigated a 25+-year career in the investment industry, it has become a more important topic.

Our firm recently conducted a survey about retirement and found that three in five Americans have concerns about running out of money during retirement, and the fear is more commonly held by women than men. 68% of women actually noted this concern, versus only 55% of men. Additionally, only 36% of women believe they would be able to afford everything they want in retirement, compared to 56% of men. And this is likely attributable to the fact that women typically live longer, and unfortunately, we earn less over our lifetimes compared to men. On average, women earn about 85% of what men earn for the same position and live about six years longer than men do.

With these stats, we as women need to make our hard earned money work harder and last longer. But studies show that women are less likely to participate in the stock market, and this can be seen in this chart that shows the gap between men and women, especially when it comes to brokerage accounts and retirement accounts. However, I would note that women control a third of total U.S. household financial assets, more than $10 trillion in total, and by 2030, it is estimated that American women will control nearly $30 trillion in financial assets as more women become family breadwinners and baby boomers transition assets more equally to their children. We have seen some encouraging changes over the years, and I know we are heading in the right direction.

Another stat from the McKinsey study noted that 30% more women are making financial and investment decisions versus just five years ago. Additionally, a Fidelity study, as seen on this chart, shows that the younger generations are embracing investing in financial markets, and they're investing in stocks and bonds, as well as cryptocurrencies, as you can see in this next chart. However, the same study found that only 43% of women felt prepared to handle future dips in markets, versus 62% of men. Although women do tend to stay invested longer, we believe women are modeling healthy investment behavior and making steady progress when it comes to managing financial assets.

Two of the best ways to continue this investment journey is to be open to learning more and reaching out to a financial advisor who can assist with tax management and advanced planning needs. Thank you again for tuning in to this episode of “Investment Management Foundations,” and we'll be back with another episode soon.

2024-5614

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Ayako Yoshioka

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Investing

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Ayako Yoshioka

Investment Management Foundations

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4 minutes

Ayako Yoshioka

Building Wealth in Uncertain Times: Year-End Planning Moves

wegmigrate — Thu, 05 Dec 2024 06:00:00 +0000

Building Wealth in Uncertain Times: Year-End Planning Moves wegmigrate Thu, 12/05/2024 - 00:00

By Bruce Helmer and Peg Webb, Financial Advisors at Wealth Enhancement Group and co-hosts of “Your Money” on WCCO AM 830 on Sunday mornings. Email Bruce and Peg at yourmoney@wealthenhancement.com. Advisory services offered through Wealth Enhancement Advisory Services, LLC, a registered investment advisor and affiliate of Wealth Enhancement Group.

Wealth doesn’t just happen—it’s built by those willing to invest in the details. With year-end fast approaching, now is the perfect time to ensure your money is working as hard as you do. In today’s landscape, marked by political and economic shifts, planning with care and precision is more critical than ever.

Navigating Tax Policy Uncertainty

As we look ahead to 2025, potential tax policy changes under the incoming administration loom large. President-elect Trump has signaled his intention to extend expiring tax cuts, potentially eliminate taxes on Social Security benefits, and make other adjustments. However, implementing these changes requires navigating a divided Congress. Plus, U.S. debt-service costs now exceed defense spending, which is straining global fixed-income markets and adding to the uncertainty.

Tax-Smart Strategies to Consider

What does this mean for you? It’s time to stress-test your financial plan. Deferring income to next year, for instance, might allow you to benefit from anticipated tax cuts. Such strategies, however, require careful coordination to align with your long-term goals.

Capital Gains and Loss Harvesting: Tax-loss harvesting is an often-overlooked opportunity to minimize tax liability. Selling investments at a loss to offset gains elsewhere can reduce your taxable income while keeping more money invested for growth. Make sure your advisor is digging into the details to tailor strategies that fit your goals.
Timing Income and Deductions: With tax cuts on the horizon, deferring income or accelerating deductions could make sense. For example, holding off on year-end bonuses or capitalizing on deductions now may provide a double benefit.

Charitable Giving and Estate Planning

Giving back to the causes you care about can also be tax efficient. Donor-Advised Funds (DAFs) allow you to donate now, locking in tax benefits, while deciding later how to allocate the funds. These accounts are straightforward to set up, require minimal initial funding, and provide flexibility in giving anonymously or publicly.

If your charitable plans extend to trusts, you might explore Charitable Remainder Trusts (CRTs) or Charitable Lead Trusts (CLTs). While these tools require more setup time and complexity, they offer unique benefits such as tax-controlled income or eventual wealth transfer to heirs.

And for families considering wealth transfers, the current estate tax exemption levels may not last beyond 2025. Gifting up to the allowable limit of $18,000 per beneficiary in 2024 removes assets from your estate and potentially lowers your tax bill upon death.

Retirement and Investment Planning

Even the best-laid retirement plans are being challenged in today’s environment. According to Wealth Enhancement’s recently released retirement lifestyle study, inflation concerns have delayed retirement goals by over eight years on average. Even among those who feel financially prepared, 80% believe retirement is increasingly out of reach.

Here are a few steps you can take before year-end:

Maximize Contributions: Ensure you’ve made the most of retirement account contributions. This simple but powerful move potentially lowers your taxable income while keeping your 401(k) or IRA growing steadily.
Roth Conversions: If you’ve been considering a Roth conversion, now might be the time. This strategy lets you convert pre-tax retirement savings to post-tax savings, locking in today’s lower tax rates for future withdrawals. It’s a nuanced decision, requiring careful evaluation of today’s tax costs against tomorrow’s potential savings.

Reclaiming Financial Confidence

Despite challenges, Americans are taking proactive steps towards their financial futures. Our survey revealed that 32% are setting aside more money each month, 29% are using detailed budgets, and 28% have created emergency plans. However, only 19% meet regularly with a financial advisor—a missed opportunity given the complexities of today’s environment.

The end of the year is the ideal time to act. Whether it’s optimizing tax strategies, planning charitable contributions, or recalibrating your retirement contributions, the decisions you make today can have a lasting impact. Just be sure to give your financial advisor team a few weeks to put your desired changes into effect.

Wealth isn’t accidental. It’s built through your clear intention, experienced advice, and comprehensive planning. Start today!

The original article was published by Pioneer Press.

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. Investing involves risk, including possible loss of principal.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

#2024-5978

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4 minutes

Peg Webb

Don’t be a Victim of the Retirement Crisis

Venkatesh Vavilapalli — Wed, 27 Nov 2024 06:00:00 +0000

Don’t be a Victim of the Retirement Crisis

If you think the United States has a retirement crisis, you are not alone. A recent survey found that 79% of working-age Americans believe the same thing.

Venkatesh Vavi… Wed, 11/27/2024 - 00:00

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