Money & Finance

When you die, will your family be in turmoil? Will there be arguments, resentment, and doubt, or will there be a sad-but-smooth transition, with your values known and your wishes honored? Will family members support each other, or will your passing break the family apart? The emotional impact for those left behind when you die goes way beyond the estate planning, legal issues, and tax implications your death may create.

Estate planning documents generally include a will, a trust (revocable or irrevocable), powers of attorney for property (durable power of attorney) and personal care (advance health care directive).  You name a person or people to make decisions for you when you are unable to and given direction on how to settle your affairs after you die.

Are you saving for retirement? For education? If so, you’ll want to know how inflation can impact your savings. Inflation rates have fluctuated over the years; short-term changes aren’t often noticed. The real issue is the effect of long-term inflation.

I really don’t like change! My parents used to tell me, “Nothing is as constant as change.” I didn’t understand exactly what that meant as a child, but now I experience a change in one form or another almost daily. My clients often discuss changes in such things as their current job, a promotion or new work benefit, a new business opportunity, adjusting their savings plan, their income needs, retirement goals, estate planning, buying a new home, upgrading a vehicle, etc. As we go through life and adapt to the many different situations we encounter, we must adjust our plans accordingly.

Using an IRA or employer retirement plan is a smart way to save! In addition to saving, there are tax advantages to using an IRA or employer retirement plan.

Every year it seems the tax code becomes more and more complicated; as some opportunities disappear, others are created that can lower taxes due when tax returns are filed. Below are two common techniques tax professionals use to lower their clients’ tax burden.

Between rising housing costs, student loan burdens and credit mistakes, achieving financial independence can seem like an impossible undertaking to young adults. Mentors and parents still have many life lessons to impart to young adults, especially around managing money.

A clause in your trust, or a standalone pet trust, can help protect your animals and possibly assure placement. Charities can help, particularly if you are making a gift donation as part of the request to place your animals. In choosing which documents to use to express your intent, do not rely on a will alone. Attorneys say only a trust can help assure prompt response to an animal’s needs (wills may need to be probated, and the probate process can take time. In the interim, the animal must be cared for).

Socially responsible investing—that which aligns an investor’s personal beliefs and faith with their investments—has gained in popularity. As a result, so have ways to invest with social conscience.

COVID-19 turned millions of you into stay-at-home workers. You had to create space for desks, computers, printers, fax machines, and office supplies. Some of these expenses weren’t paid by your employer. In addition, your utility bills, internet access or telephone expenses may have increased during that time. And while expenses increased, your income most likely didn’t.

Although the name is changing, the legacy continues: Schott Financial Management—formerly Tomlinson Wealth Management—brings to Prescott three generations of financial expertise. Advisor Steve Schott, a ten-year veteran of the financial business and the son-in-law of Andy Tomlinson, will take the helm.

I received a call from a retired attorney who was seeking advice about a threatening letter he received from the IRS.  He said he had been working with a “tax person” on past IRS issues; sadly, she died in an accident a few months prior and he didn’t know who to talk to.  The “Intent to Levy” letter showed an October 10 deadline for response or payment of $12,113. The man called me October 7.