TAX DAY REFLECTIONS with a PRO

Hi everyone. Happy After Tax Day!! If you’re like us, you’ve taken a look at your deductions, credits, spending verses saving habits and promised yourself to make changes in 2019.  I recently blogged about financial matters.  I was surprised how many of you visited the blog post, asked questions here or via email and wanted to know more. This is NOT a sponsored post. But, after chatting with Morgan McGovern, a CERTIFIED FINANCIAL PLANNER™ professional, I’d be remiss if I didn’t share our conversation. CFP® professionals are held to strict ethical standards and take a holistic approach to financial planning, so I felt comfortable taking her your questions and reporting her answers.
As parents, we have to think about summer camps or childcare, vacations, saving for college, retirement, life insurance... it’s a lot. Money is a terrible master but can be an excellent servant. If you’re interested in ways to make 2019 a financially better year for your family, keep reading. 

Just a shot that was taken when I was going through questions on turbo tax a bit ago. This exact top is (so comfy, boyfriend cut) on sale in plus sizes. I linked exact cut and other options below;)

Just a shot that was taken when I was going through questions on turbo tax a bit ago. This exact top is (so comfy, boyfriend cut) on sale in plus sizes. I linked exact cut and other options below;)

MONEY AND RELATIONSHIPS For many married couples, money is such a trigger in their relationship. “Money is tied to emotion,” McGovern said. She encouraged couples to take the time to figure out what their values are independently, as a couple and as a family. “Your spending and your saving habits should align with your core values. You ideally should spend not only your money, but also your time and energy, on the things most important to you and your family.” When you understand this logically, it’s easier to implement when things get emotional. 

There’s a plethora of reading material out there about relationships and money. Get ahead of the game. Know what works best for you and your partner before it becomes an issue. Are your values currently aligning as a individual, couple and family? I think this is a great exercise for all of us to sit down and write out our values once a year. Values are based on our core beliefs that determine our priorities.

RETIREMENT VS SAVING FOR HIGHER EDUCATION I got a considerable amount of DMs from people stating they’re more worried about saving for their children’s college fund than retirement. I imagine this is true for many Americans. I appreciated McGovern’s response: Education costs are increasing but retirement costs and healthcare costs are also increasing. The most important thing to remember is that loans can be taken out for children’s education, but you cannot take out loans for retirement. That really struck me. And inspired me to add more to retirement every year. It’s a discipline; saving is a way of life. 

TAKING FULL ADVANTAGE OF TAX CREDITS AVAILABLE The “child tax” credit has doubled for 2018 to $2,000 per qualifying child. There’s also a family tax credit, now known as ‘The Credit for Other Dependents’. McGovern explained that it’s important to be well informed of all the potential credits and deductions offered to us each year. Professionals learn your family dynamic and history, and can help you understand the best way to implement new policies, as opposed to someone plugging numbers into a program.  No matter how little or much you make, there are opportunities offered to each of us which we should take full advantage.

For us, we’re a blended family and child tax deductions currently do not apply for both boys. It’s imperative to know legally what your options are. (Plus, I work in Canada sometimes, from home a lot of the time, have a corporation, etc.) I feel more confident having another set of expert eyes look over our taxes and help plan.

BUT WHEN IS THE BEST TIME TO CONSULT A PROFESSIONAL and start planning for retirement? What if I don’t have a lot of extra money right now? “The best time is now. It’s always better to do it sooner than later,” she said. “The more time you have to save anything, the better.” But it’s never too late, either. There are always OPTIONS. FIND out what ALL yours are! As far as being able to afford a professional, she explained there’s a number of different fee structures with a CFP® pro; there’s both comprehensive and modular planning options, and some advisors charge an hourly fee if that works best. Why not take a list of questions and sit down for an hour?

Specific Note for today: I’m heartbroken looking at the footage of Notre Dame today. My family and I had the privilege of getting to visit. I’ve luckily been able to go several times in my life. I look back and am grateful my mom and dad make it a financial priority to travel together. That didn’t happen without planning. Today is a sad reminder that there’s no time like the present to make a plan to make things happen. 

So, I hope this gets you thinking! If you want more info on a professional like Morgan, I urge you to check out letsmakeaplan.com. It’s an easy and very resourceful website. I like their blog. But, mainly I want us to continue this conversation often. Share your ideas and tips on planning for your future. A few of you had excellent advice in the comments of the last post. Do you make sure to put money in a pension or a 401K every year? Are you relying on property for your investments? How diversified are your investments? And (this has always been important to me) do you have a nest egg put aside for emergencies? Do your research and figure out what works best for YOU.

PLAN FOR THE FUTURE

I’m thrilled about our new sponsor: CFP Board. They’re shedding light on something I want all of us to think about and discuss – our finances. It’s not always comfortable, but it is extremely necessary.

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As you may already know from my other posts, Joel and I are thinking about expanding our family (eeep!); this has led to discussions about our finances.

Lately, I’ve been waking up in the middle of the night with my mind racing about these discussions. I know stress is not the best during this “process,” but it’s also hard to avoid.  Joel and I both have family in the financial world that have impressed upon us the importance of planning for the future. We were told it was time to get help and make a plan created by a CERTIFIED FINANCIAL PLANNER™ professional.

First off, I’m learning that many people without the necessary qualifications call themselves financial planners, so just beware. It’s essential to get someone who has a CFP® certification upholding the ethical standards required of a CFP® professional. Just like you want a doctor that has the proper license, you want someone guiding your finances that has the proper qualifications.


Like my desire to KonMari style organize my house is strong, my desire to get organized financially is even stronger. Meeting with a CFP® professional near us (letsmakeaplan.org) can help Joel and I start working on all of those questions that keep popping up in the middle of the night. I mainly want to plan for education (from preschool to college) and know how much we should be putting away for retirement and life insurance. It must be our age, but retirement seems to come up in conversation a lot lately. It’s easy to get stuck in the day-to-day and be happy just making ends meet every year, but I know there is a way to WIN the rat race one day–and enjoy retirement–IF we stay on a targeted plan.  

AshandHuck.ashleyajones.com


Like most Americans, our financial needs range and change. The above thoughts are my urgent issues today, but I also have so many others. For instance, lots of little questions about our personal taxes for those of us with blended families. A CFP® professional will work with us today and grow with us as our needs change, especially if (and when!) another little one joins the family. How can we make our money work for us, not the other way around!??  My father gave me the best reason to work with a CFP® professional: worry less. He said money is a terrible master, but a wonderful servant.

Do you feel like your money is working for you? I hope so! But could it be working harder? I’m excited to let the professionals do what they do best, so I can be the best for those I love and be the best at what I love.

It’s so easy to just meet with a CFP® professional. Go to letsmakeaplan.org and find one in your area. The best part of CFP® professionals is that they work with you to build a plan to take care of a myriad of needs–both big and small. If you are starting your own family, there is NO better time than now to start planning ahead and securing your future. If you’re even younger, let me tell you: when I bought my first house in my 20s, I thought that was enough to secure my financial future, but in hindsight, I could have done so much more had I retained a CERTIFIED FINANCIAL PLANNER™ professional. See what they have to say!

If you’re interested, I hope to share our journey with you all–and show you how much financial planning can serve you in your lives. It can be a lifelong relationship, my CFP® pro and me!

As always, any comments below are welcomed! Have you ever worked with a financial planner?

xox

AJH

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