Whitaker-Myers Wealth Managers is proud to announce that John-Mark Young has recently earned the prestigious Chartered Financial Consultant (ChFC®) designation from the American College of Financial Services . This significant achievement highlights John-Mark’s dedication to expanding his expertise and furthering his ability to serve clients with a wide range of financial planning needs. The ChFC® designation is one of the most comprehensive financial planning credentials in the industry. It requires completion of a rigorous curriculum that covers essential topics such as retirement planning, estate planning, insurance, taxation, investment strategies, and more. Earning this designation reflects John-Mark’s commitment to providing his clients with advanced, holistic financial solutions tailored to their individual goals. As a Financial Advisor with Whitaker-Myers Wealth Managers, John-Mark brings years of experience and a deep passion for helping individuals and families navigate the complexities of financial planning. In addition to his ChFC® designation, he holds several other notable certifications, including the Certified Kingdom Advisor (CKA®) designation, Retirement Management Advisor (RMA®) certification, the Retirement Income Certified Professional (RICP®), the Advanced Certificate in Blockchain and Digital Assets, and the National Social Security Advisor (NSSA®) certification. This diverse skill set uniquely positions him to assist clients in planning for their futures with confidence and clarity. “Obtaining the ChFC® designation is a milestone that underscores John-Mark’s unwavering dedication to continuous learning and excellence in financial planning,” said Timothy Hilterman , Chief Financial Planning Officer at Whitaker-Myers Wealth Managers. “His ability to combine technical expertise with a genuine passion for helping clients achieve their financial goals is what makes him an invaluable asset to our team.” Obtaining the ChFC® designation, with its emphasis on retirement planning, enables John-Mark to more effectively assist Dave Ramsey listeners who value a debt-free lifestyle and a secure retirement. By integrating retirement strategies with Ramsey's principles, John-Mark aids these clients in crafting personalized plans that foster long-term wealth while staying true to their core values. The ChFC® designation enhances Whitaker-Myers Wealth Managers' dedication to upholding exceptional professionalism and client service standards. Clients partnering with John-Mark can trust they are receiving guidance supported by the most current financial planning knowledge and best practices. John-Mark serves clients throughout Ohio, Florida and beyond, helping them build, preserve, and manage their wealth for generations to come. Congratulations to John-Mark Young on this outstanding accomplishment

Introduction If you are a small business owner or self-employed, you may be looking for tax-advantaged ways to save for retirement above and beyond the contribution limits of IRAs. The maximum contribution limit in 2025 for a Traditional IRA and Roth IRA is $7,000 ($8,000 for individuals 50 and older). Complimenting your IRA with a SEP IRA or Solo 401(k) can be an excellent solution to saving more for retirement. This article will briefly explain each option and provide insight into the similarities and differences between a SEP IRA and Solo 401(k).   Overview of a SEP IRA A SEP IRA stands for Simplified Employee Pension Individual Retirement Account. This type of account allows employers to contribute to their personal and employee retirement accounts. A business of any size can establish a SEP IRA, even someone self-employed. A SEP IRA is easy to set up and maintain and allows additional tax-advantaged retirement savings beyond a Traditional or Roth IRA. There are specific eligibility requirements for individuals to participate in a SEP plan. The individual must be at least 21. They must have worked for the employer in at least 3 of the last 5 years and received at least $750 in compensation for 2023 and 2024.   Contributions to a SEP IRA are made by the employer. Employees cannot contribute to their own SEP IRA. The employer can contribute up to 25% of the business’s income into a SEP IRA up to the maximum of $70,000 in 2025. Unlike Traditional IRAs, Roth IRAs ,  and 401(k)s, SEP IRAs do not have catch-up contributions for individuals over 50. Employers with more than one employee must contribute the same amount to each employee equally. If the employer contributes 5% to their SEP IRA, they must also contribute 5% to each eligible employee's SEP IRAs.   SEP IRA contributions are tax deductible for the employer and provide tax-deferred growth for the employee. SEP IRAs also allow the employee to invest in a broader range of investments than some other employer-sponsored plans. You can withdraw money from the SEP IRA at any time. However, distributions before the age of 59 ½ may result in an additional 10% tax penalty unless you qualify for an exception to the tax. All distributions in a SEP IRA are taxed as regular income and count as income in the year the distribution was taken. Required Minimum Distributions (RMD)  also apply to SEP IRAs. The individual will be required to take an RMD each year when they reach age 73 (or 75 if born in 1960 or later). The IRS Rules of SEP IRAs prohibit participants from taking out loans, and assets in the SEP IRA may not be used as collateral.   A SEP IRA is relatively easy to set up and requires minimal effort to maintain. Setup and maintenance also come with minimal cost. There are three steps to setting up a SEP plan. There must be a written agreement providing benefits to eligible employees. The plan participants must be given information about the plan, and a SEP IRA must be set up for each eligible employee. Taking advantage of a financial professional’s services will make setting up a SEP IRA simple and correct.   Overview of a Solo 401(k) A Solo 401(k) is for self-employed individuals with no employees other than the business owner (and potentially a spouse). A Solo 401(k) is often called a Self-Employed 401(k), Individual 401(k), or One-Participant 401(k). A Solo 401(k) is very similar to a regular 401(k) with multiple employees in the plan, but the business owner in a Solo 401(k) acts as the employer and the employee. The business owner also is not subject to nondiscrimination testing because there are no other employees in the business. A Solo 401(k) allows a business owner to save more tax-deferred (or tax-free in a Roth Solo 401(k)) funds than they could in a Traditional IRA or Roth IRA.   Contribution limits in a Solo 401(k) are like those of a regular 401(k), but the business owner can also give a nonelective contribution as the employer. The total contribution limit in a Solo 401(k) for 2025 can be up to $70,000 for individuals under 50, $77,000 for individuals between 50 to 59 or over 64, and new for 2025 is the super catch-up contribution where individuals from 60 to 63 can have total contributions up to $81,250. Keep in mind that this is just the maximum allowed for total contributions. In 2025, a participant in a Solo 401(k) can make elective deferrals as the employee up to $23,500 under 50, a $7,500 catch-up contribution between 50 to 59 and over 64, and the super catch-up contribution of $11,250 for participants ages 60 to 63. The business owner can also make a nonelective contribution of up to 25% of compensation as defined in the plan.   For example, Jake, age 34, owns a consulting firm and is the only employee and the owner. Jake earns $200,000 in 2025 from his W-2 wages. He contributes $23,500 as an employee and wants to contribute 25% of his compensation as the employer, which would be $50,000. But he cannot do that because he would exceed the $70,000 2025 maximum (he would be over by $3,500), so his maximum contributions are capped at $70,000. Nick, age 35, on the other hand, also has a small business and made $100,000 in 2025. He contributes $23,500 as the employee and can also contribute up to 25% of his earnings as the employer ($25,000). So, the maximum that Nick can contribute to his Solo 401(k) for 2025 is $46,500. Although this is well under the maximum of $70,000, Nick has reached the maximum allowable contributions as the employee and employer.   Setting up a Solo 401(k) is a relatively simple process. You need a tax identification number like an Employer Identification Number or Social Security Number. Choosing a plan administrator is the next step. This is basically selecting a custodian to hold your assets and administer the plan. At Whitaker-Myers Wealth Managers , we can help you set up your Solo 401(k) with Fidelity or Charles Schwab and manage and direct the investments within the plan. Next, you need to sign a plan adoption agreement and any other paperwork the provider requires. Once the account is set up, you will decide how you would like to contribute and choose your investments. One more note about Solo 401(k) plans is if your balance is over $250,000, you might have to file tax form 5500-EZ with your tax return.   Conclusion A SEP IRA is generally easier to set up than a Solo 401(k). SEP IRAs are low maintenance and easy to manage. They are suitable for small business owners with variable income and little to no employees. Unlike a Solo 401(k), SEP IRAs do not have catch-up contributions available because the employer makes the contribution. A Solo 401(k) may require more effort to set up but allows individuals to potentially save more than they would be able to in a SEP IRA. The Solo 401(k) is ideal for small business owners with no employees (other than a spouse) looking to maximize contributions.   If you are looking to set up a SEP IRA or Solo 401(k), we suggest consulting with your financial advisor to determine which option is best for your particular situation.

If you're an EntreLeadership Podcast enthusiast, you're aware that the show has seen various hosts over the years. Currently, Dave Ramsey is at the helm. Not too long ago, Ken Coleman was the host. During his time, Ken encouraged listeners to send him letters via snail mail. He received a large number of letters from listeners nationwide, possibly including yours. Yet, one particular letter deeply moved Ken. Ken recounts meeting a man named Tim Hilterman in the lobby of Ramsey Solutions some years back. While Ken mistakenly identified Tim's profession, since Tim wore firefighter gear to run a marathon for drug prevention rather than being a firefighter, Ken did share a portion of Tim's letter. This letter highlighted Tim's unique bravery, not in battling fires, but in saving a life from something that almost claimed his own early in his marriage: cancer. Below is an excerpt from Ken's reading of the letter. You can also listen to the episode by clicking on the link here and starting at minute 2:30. "I get that life is short. In 2007, after one year of marriage, I was diagnosed with invasive malignant melanoma. God chose to spare me, but I haven't looked at life the same. Jim Collins wrote in the forward to Halftime (A book by Bob Buford), "We only get one life, and the urgency of getting on with what we were meant to do increases every day." Two years ago, my wife and I got to know a cute 4-year-old who was on dialysis 12 hours a day because she had lost both kidneys to cancer at the tender age of 1. I had one of those, if not me, then who moments, and after some prayer, I decided to find out if I was a match to donate a kidney. In God's providence, I was, and now a part of me is giving Brielle a chance at a normal childhood. This is quite impressive. It's the second occasion that a Ramsey broadcast has acknowledged one of our team members. You might also recall when a client showed their trust in Financial Advisor Jake Buckwalter.

Health Savings Accounts (HSAs) are one of the most versatile and tax-advantaged tools available for managing healthcare costs and planning for retirement. Whether you're looking to save on medical expenses, lowering your current year income tax liability, or optimizing your long-term financial goals, understanding how to leverage an HSA is key. Below, we’ll outline the eligible HSA expenses and explore how strategic planning can use these expenses to boost retirement savings while potentially lowering taxable income. What Are Eligible HSA Expenses? The IRS allows HSA funds to be used tax-free for qualified medical expenses. According to the IRS website they define HSA expenses as: "Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. These are explained in Pub. 502, Medical and Dental Expenses . Amounts paid after 2019 for over-the-counter medicine (whether or not prescribed) and menstrual care products are considered medical care and are considered a covered expense. These expenses must primarily alleviate or prevent a physical or mental disability or illness. Here’s a breakdown of some common eligible expenses: Medical Services and Treatments Prescription Medications Dental and Vision Care Therapies and Mental Health Preventative Care Long-Term Care and Supportive Devices Alternative Treatments  (if prescribed) Let's look at some specific examples from Publication 502 of the IRS code. Acne laser treatment Acupuncture Ambulance fees and emergency care Artificial limbs Birth control pills, injections, and devices, such as IUDs Blood pressure monitors Body scans Breast pumps and lactation supplies Breast reconstruction surgery following cancer Canes and walkers Childbirth expenses, such as care from a midwife or obstetrician Childbirth classes for the expectant mother Chiropractic care Contact lenses and saline solution Crutches Dental care, including cleanings, sealants, fluoride treatments, X-rays, fillings, braces, extractions, and dentures Diabetes supplies, such as blood sugar test kits and insulin Diabetes education, including nutrition counseling Eye exams Eye surgery, including laser surgery Eyeglasses, including prescription and reading glasses, and prescription sunglasses Blue-light-blocking glasses First-aid kits Flu shots Guide dogs to assist with disabilities Food, grooming, and veterinary care for guide dogs Hearing aids and batteries Hospital expenses for both inpatient and outpatient services Infertility treatment, including in vitro fertilization; egg, sperm, and embryo storage; fertility monitors; and sperm washing Egg donor expenses related to infertility treatment Inpatient drug and alcohol treatment Insulin Lab fees Long-term-care premiums, up to a qualifying amount based on your age Medical alert bracelets Medical records fees Medicare premiums if you're 65 or older, excluding Medicare supplemental policies Night guards to treat teeth grinding Nursing care, whether provided in your home or a nursing home Occupational therapy Oxygen and oxygen equipment Physical exams Physical therapy Prescription medications Psychiatrist care Psychologist care Smoking-cessation programs and drugs, including nicotine patches and gums Speech therapy Surgery, excluding elective cosmetic surgery Thermometers Tubal ligation (female sterilization) and tubal ligation reversal Ultrasounds Vaccines Vasectomy (male sterilization) and vasectomy reversal Wheelchairs X-rays Additionally, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) changed to allow HSAs to be used for over-the-counter medicine (whether or not prescribed) and menstrual care products, provided they are paid after 2019. Finally, suppose you have a medical diagnosis where a doctor confirms a product or service is necessary to treat that medical condition. In that case, there is a whole list of items that could qualify as an eligible HSA expense. Please talk to your Financial Advisor if you think this situation pertains to you. It’s important to keep detailed records of expenses to ensure compliance and facilitate future strategic use, which we’ll discuss shortly. HSA Strategy: Using Prior-Year Expenses to Boost Retirement Contributions One of the lesser-known benefits of an HSA is the ability to reimburse yourself for qualified medical expenses incurred in prior years, provided those expenses were incurred after the HSA was established and you kept proper records. This feature opens the door for strategic tax planning. The Scenario Let’s say Emily has been diligently contributing to her HSA for several years and paying out of pocket medical expenses, allowing her HSA balance at Fidelity to grow tax-free while being invested in the four Dave Ramsey categories . Over the years, she’s accumulated $10,000 in unreimbursed medical expenses. In 2025, Emily decides to reimburse herself from her HSA for these past expenses. She withdraws $10,000 tax-free from her HSA and uses the funds to make a $7,000 contribution to her IRA (the maximum allowed for her age and income) and the remaining $3,000 for her 401(k) at work. By doing this: She reduces her taxable income in 2025 by $10,000, thanks to her IRA and 401(k) contributions. Her retirement accounts grow tax-deferred (or tax-free, in the case of a Roth IRA). This strategy not only lowers her immediate tax liability but also bolsters her retirement savings using pre-tax dollars. Incorporating Dave Ramsey’s Principles Dave Ramsey emphasizes the importance of intentional financial planning, particularly in avoiding debt and building wealth through consistent savings. HSAs align well with his principles: Budget for Healthcare Costs : Just as Ramsey encourages families to budget for monthly expenses, planning for healthcare costs ensures that HSA funds are used effectively without dipping into debt. Debt-Free Living : By paying for medical expenses out of pocket when possible, you avoid depleting your HSA, allowing it to grow as a debt-free source of financial security. Baby Step 4: Invest 15% for Retirement : Using your HSA strategically, as Emily did, can help you meet Ramsey’s goal of consistently investing for retirement while enjoying immediate tax savings. Final Thoughts An HSA is more than just a tool for covering today’s medical expenses—it’s a powerful vehicle for long-term financial success. By understanding eligible expenses and leveraging the flexibility of reimbursement, you can align your HSA strategy with larger financial goals like retirement planning and tax efficiency. At Whitaker-Myers Wealth Managers , we help clients incorporate HSAs into a holistic financial plan , maximizing their benefits while staying true to principles like those of Dave Ramsey: living intentionally, saving consistently, and building a legacy of financial freedom. Ready to take control of your finances and make the most of your HSA?  Contact us at Whitaker-Myers Wealth Managers to develop a strategy tailored to your unique financial goals.

The 19th century author Balzac wrote that “our worst misfortunes never happen, and most miseries lie in anticipation.” This quote perfectly captures 2024, a year of major market, economic, and political concerns for many investors. Worries over a “hard landing” recession, market pullbacks, election turmoil, and more drove market sentiment to extremes. Yet, as we approach the end of the year, many of the miseries that investors feared did not take place. As a matter of fact, they almost never do. Instead, the S&P 500 is near record levels, inflation is subsiding, the economy is growing steadily, and the Fed has begun to cut interest rates. This is a reminder that excessive worry can lead investors to make decisions that may not serve their long-term interests. I've often quoted to clients during times of stress and fear Philippians 4:6-7 , "do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God. And the peace of God, which surpasses all understanding, will guard your hearts and your minds, Christ Jesus." If the past few years have been about extremes – the bear markets of 2020 and 2022, compared to the sharp rebounds in 2021, 2023, and 2024 – then 2025 should be about regaining balance. This is as much about investor emotion as it is about the economic data. History shows that those who can maintain a disciplined, long-term approach are better positioned to achieve financial success. This will only grow in importance in the coming year. Stock market valuations are well above average, the path of interest rates is now uncertain after last week, doubts about artificial intelligence are emerging, and geopolitical risks are escalating in some parts of the world and de-escalating in others. There will likely be many more unforeseen events that will heighten investor concerns. Fortunately, the lessons of the past year can guide financial decisions in 2025 and beyond. Below, we present five important insights that can provide investors with perspective even when the world seems uncertain and other investors fear the worst. 1. A stronger-than-expected economy has supported all asset classes A year ago, investors spent much of their time worrying about a “hard landing” as the Fed kept rates high to fight inflation. Fortunately, this never materialized. Instead, inflation is returning to pre-pandemic levels, the job market is healthy, and economic growth is steady. Few investors expected such a positive scenario twelve months ago. The Consumer Price Index, a measure of inflation, has slowed to only 2.6% year-over-year. Unemployment remains low at only 4.2%, and 2.3 million new jobs have been created over the past twelve months. GDP growth, at 2.8% in the third quarter, has been stronger than many economists anticipated. All these are stats you can be updated weekly on by listening to our Investment Research Analyst Summit Puri, on his incredible weekly video and podcast, What We Learned in the Markets . This economic expansion has helped to propel many asset classes. U.S. stock market indices are near all-time highs, international stocks have continued to rise albeit at a slower pace, and bonds have performed better in recent weeks, with interest rates moderating. Gold is near record levels due to demand from investors and central banks. Bitcoin has also risen to historic highs following the presidential election, and it has finally topped 100,000. This does not mean there are no challenges ahead. Consumer spending could slow as excess savings are spent, and debt levels are high for both households and businesses. Assets that have risen sharply could experience greater volatility as well. In times like these, focusing on fundamentals such as earnings and valuations will be important. 2. Expensive stock market valuations underscore the need for portfolio management and a trusted advisor One reason for higher stock prices is the strength of corporate America. Corporate earnings have grown 8.6% over the past twelve months, rising to $236 per share for the S&P 500. However, the fact that the stock market has risen far more than earnings means that valuations have increased. The price-to-earnings ratio is 22.3, meaning that investors are paying $22.30 today for every dollar of future earnings. This is well above the historical average of 15.7, and is nearing the historic peak of 24.5 during the dot-com bubble. Valuations matter because paying a higher price today means, all else equal, a lower return in the future. For investors, this has two implications. First, it’s important to construct portfolios by balancing stocks with other asset classes such as bonds and international investments. Second, with stock market indices at historically expensive levels, it’s critical to focus on more attractive parts of the markets. For example, while artificial intelligence stocks have driven market returns over the past two years, many other parts of the market have performed well recently. Year to date, all eleven sectors have generated positive gains. Given that it is difficult to predict which sectors may outperform each year, having an appropriate allocation to many parts of the market can help to stabilize portfolios. This is one reason why we as a firm have been optimistic about something like the Vaneck Wide MOAT ETF (MOAT) . Here, the fund is looking towards the future by allocating capital towards companies with sustainable competitive advantages (the Moat) while quantifying if those advantages will last 20 years or more (the Wide). Additionally, they run screens around their valuations to try and allocate capital to those companies with wide moats, yet their future growth through those moats is not priced in completely. While not perfect, this has balanced the top heavy-weighted S&P 500, while delivering long-term Alpha through quality stock selection and low cost. Everyone can do math, so identifying high valuations in and of themselves is not an advantage. However, companies with sustainable competitive advantages with a sensible valuation may be advantageous. 3. The Fed is expected to cut rates further The Fed began to cut policy rates in September after months of investor speculation. So far, the Fed has lowered rates by one full percentage point, and according to our Summit Puri's last video, the markets are currently expecting one or two more additional cuts by the end of 2025. This is less than what we thought about one short month ago, hence the somewhat orderly repricing we saw in the markets last week. The timing and magnitude of these rate cuts remain uncertain and will depend on the economic data. Regardless, the monetary policy headwinds that began in 2022 are now turning into tailwinds. Just as higher rates slowed economic growth and led to investor concerns, lower rates can help to stimulate the economy, supporting both corporate earnings and possibly stock market returns in the long run. After a few challenging years, the easing of monetary policy may also be positive for bonds as inflation and economic growth potentially enter a more stable period. If short-term rates trend lower and longer-term rates remain steady, the prices of many bonds could benefit while still offering attractive yields. This environment may present opportunities for diversified investors to generate both income and growth. For investors, what matters is not trying to guess each move by the Fed, but the overall path of rates. With greater clarity and guidance around Fed policy, the market’s attention may shift back to specific policies by the incoming Trump administration. 4. Political focus will shift from the election to policy Presidential politics also clouded markets leading up to election day in November. Since then, the stock market has rallied due to the lifting of policy uncertainty, and the hopes that the incoming administration will create a pro-growth environment. While politics are important in our personal lives, the reality is that the economy and stock market have performed well across both Democratic and Republican presidencies over the past century. When it comes to investing, business cycles matter more than who occupies the White House, and they are driven by many factors beyond politics. In 2025, investors should put politics aside as they construct their portfolios and financial plans. Taxes , for instance, are clearer after the election since it is likely that most provisions of the Tax Cuts and Jobs Act will be extended. This affects individual income tax rates, corporate tax rates, estate taxes, and much more. As is always the case, working with a trusted advisor is the best way to ensure that your financial strategy considers tax implications and changing market conditions. This does not mean that politics will be out of the spotlight in the coming months. Issues such as trade wars and the budget deficit will continue to worry investors. On trade, the new administration is expected to raise tariffs across many trading partners, especially China. However, it’s important to remember that the worst-case predictions during the first Trump administration never materialized, and many tariffs were continued during the Biden administration. When it comes to debt ceilings and the growing federal deficit, there are no simple solutions. The national debt has grown to $36 trillion with no signs of slowing. Without a sustainable path, interest payments on the federal debt will continue to rise, credit rating agencies may continue to question the quality of U.S. debt, and the role of the U.S. dollar as the world’s reserve currency could become uncertain. Without minimizing the severity of this topic, it’s important to recognize that we are not at a tipping point just yet, and markets have historically performed well regardless of the level of the deficit and national debt. 5. Long-term thinking will be key to success in 2025 and beyond Perhaps the most important lesson of 2024 is that markets can perform well despite investors’ worst fears. For example, market pullbacks in April and August this year may have led some investors astray despite positive gains throughout the year. Markets have shown remarkable resilience over the past twelve months, supported by economic growth, innovation, and positive trends across many asset classes. It’s important to celebrate these positive outcomes while also remaining vigilant and focused on the long term. The accompanying chart shows the value of a long-term perspective. History reveals that true wealth is created not over months but over years and decades. Even for those already in retirement, a longer-term perspective allows investors to put short-term events in context and make productive decisions. The bottom line? As the year comes to a close, we can celebrate a strong year for markets. In 2025, investors should focus on finding balance in their portfolios. This means making sure your stocks have the recommended growth, growth & income, aggressive growth and international allocation we typically recommend. If you're close to your goals or retirement, make sure you have placed non-correlated assets such as real estate, bonds and cash into your portfolio mix and talk to a qualified financial advisor . History shows that this is the best way to manage unforeseen events, while staying on track to achieve long-term financial goals.

The repeal of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) marks a significant milestone in the fight for Social Security fairness. For decades, these provisions have reduced Social Security benefits for millions of public servants, including teachers, police officers, and firefighters, who also earned pensions from government jobs not covered by Social Security. Their elimination signals a step toward equity and economic security for retirees.   The WEP, enacted in 1983, aimed to prevent "double-dipping" by individuals who worked in jobs that did not pay into Social Security while also earning substantial benefits from Social Security-covered employment. However, its formula disproportionately reduced benefits for low- and middle-income retirees, penalizing workers who spent part of their careers in public service.   Similarly, the GPO , established in 1977, reduced Social Security spousal or survivor benefits by two-thirds of the recipient's public pension. This offset disproportionately affected women, many of whom relied on spousal benefits to supplement their retirement income. In some cases, the GPO entirely eliminated these benefits, leaving retirees with limited financial resources.   The repeal of these provisions addresses longstanding concerns about fairness and economic disparity. Advocates for the repeal, including unions and retiree organizations, argued that WEP and GPO unfairly penalized public servants who contributed to their communities and earned their benefits.   The change comes as part of broader efforts to modernize Social Security and ensure it remains a robust safety net for all workers. By repealing WEP and GPO, lawmakers have restored fairness and financial stability to millions of retirees and their families.   As the repeal takes effect, retirees impacted by WEP and GPO will see a meaningful increase in their benefits. This will help secure a more dignified retirement for those who dedicated their lives to serving the public. As of this article's writing, the Bill still needs to be signed by President Biden. Additionally, the Heritage Foundation, a conservative think tank, has estimated that this bill will cost Social Security $196 billion over a decade, and the Congressional Budget Office thinks it will speed up Social Security's insolvency by six months . As Dave Ramsey says, Social Security is the cherry on top of your retirement sundae. Thus, one should always strive to pay off all their debt, using the debt snowball (Baby Step 2), create a source of margin so they don't go back into debt (Baby Step 3 - Emergency Fund), and then save 15% of their income towards company-sponsored retirement plans, like your 401(k) and if eligible a Roth IRA. Our Financial Advisors are always ready to help you take that next step toward retirement security.

The Homestead Tax Exemption is a legal benefit available in most states, which reduces property tax reduction on homeowners’ primary residence and protection from creditors following the death of a spouse or declaration of bankruptcy. The exemption can only be applied to your primary residence, and while some states offer it to every homeowner, others have specific requirements that must be met, which vary from state to state. Some of these are the value of your home, income level, age, whether or not you are a veteran, or if the individual has a disability. In some states, the exemption is automatically applied, while in others, you must apply. In this article, we will look at the benefits of the exemption, the qualifying criteria, and how to apply for it. Benefits There are two benefits for the Homestead Tax Exception that we will dive into each individually and give an example of how the exemption benefits you.   Property Tax Reduction The main benefit of the Homestead Exemption is reducing the property taxes owed on the homeowner's primary residence. For example, if your home is valued at $200,000 and your state’s property taxes are based on your home’s assessed value with an assessment ratio of 35%, your home's assessed value would be $70,000. With a 1.5% tax rate, you would pay $1,050 in property taxes. In this example, we will say you are eligible for a $50,000 deduction. After applying for the Homestead Exemption, your home's assessed value would now be $52,500 ($150,000 x 35%). With the same 1.5% tax rate, your property taxes would now be reduced to $787.50. That is a $262.50 yearly savings. Protection from Creditors Another benefit of the Homestead Exemption is protection from unsecured creditors. This only applies to the equity in your home, not the home's assessed value. There is also a limit to how much equity you can have in your home, typically around $40,000 in most states. Requirements Example As mentioned, eligibility requirements vary from state to state. In Ohio, applicants must be at least 65 years old on January 1st in the year they are applying or be permanently disabled, in which case age would not be a factor. There is also a limit on total household income. For 2024, the limit is $40,500, including all sources such as wages, pensions, and social security.   How to Apply The form to apply is called the “Homestead Exemption Application (Form DTE 105A)”. Most counties will have a downloadable application on the county auditor’s website, or you can pick up a physical form from their office. In addition to your basic information, you will need to provide all of the following that apply to you: Proof of age  (e.g., a birth certificate or driver’s license) Proof of disability  (e.g., a statement from a medical professional if applying based on disability) Income verification  (e.g., tax returns, W-2s, Social Security statements) Veterans’ documentation  (e.g., VA disability certification) Once completed, you can submit the form to your county auditor’s office in person or online (if they allow it). After submitting, you will also want to check if you must reapply each year or if they automatically apply it once accepted.   Conclusion If you are unsure or think you may qualify for the Homestead Exemption, contact your financial advisor to start the conversation. If you do not have a financial advisor, we have a team at Whitaker-Myers Wealth Managers  with the heart of a teacher who can help explain how this could benefit you. Along with a CPA on staff , you have a team to answer any of your questions and help you apply if you qualify.

The new year can fill you with a sense of hope and expectation.  There are new goals to reach and new challenges to tackle.  Something that may be on your mind is finally taking control of your finances and making meaningful advances.  Perhaps you’ve faced a financial challenge, or maybe you’ve never been able to get to a place where you feel like you’re progressing.    Through my years of working in the financial industry, I have found four basic steps you can take right now to give yourself clarity and confidence in your future.   Take stock: Get a Financial Snapshot Find out where you are today by calculating your net worth.  This may sound more complicated than it is. Start by writing a list of the things that you own: house, car, bank accounts, investment accounts, etc., with price amounts.  Next, list out what you owe: mortgage, car loan, student loan, credit cards, and so forth, along with the amount you still owe on these items.  Add up your assets (what you own), subtract your liabilities (what you owe), and viola: you have your net worth.    *Financial Planner Tip* Write this number down and repeat this exercise every New Year to see your progress from year to year.   Perform general maintenance: Review your contributions and beneficiaries A quick tip to increase your retirement: see if you can take some of your last raise and bump up your 401(k) contributions. Or see if the annual limit for your ROTH IRA has increased since last year , and make sure you’re adding more if you can.    Also, look at each of your accounts to ensure your beneficiaries are updated.  Would you want your retirement account unintentionally going to an ex-spouse?  Or for one of your kids to be forgotten as a life insurance  beneficiary?    Avoid bumps in the road Sometimes, we can get so focused on progressing with our finances that we don’t consider what would happen if we faced an unforeseen difficulty. Two areas that are often uncomfortable to think about but are crucial in financial planning for your family are Long-Term Disability Insurance and Life Insurance.   Long-term disability insurance  can be life-altering to your family if you cannot work for an extended period of time.  And, of course, you need to consider how you would leave your loved ones if you passed away.  When calculating how much life insurance you need, consider what it would take to replace your income, pay off debts, and accomplish goals like saving for college for your current children.   Develop a financial plan Most importantly, update your financial plan on a consistent basis.  Your plan is a comprehensive compilation and projection of your finances.  It can show you potential shortfalls and help you make minor adjustments now to reach your goals.  Your plan can also give you confidence and peace that you’re heading in the right direction.    Financial advisors at Whitaker-Myers Wealth Managers are experienced and skilled at creating comprehensive financial plans while keeping your financial goals in mind.  We’d be honored to help bring financial peace to you in 2025.   To learn more about these types of topics or industry information, subscribe to the Whitaker-Myers Wealth Managers channel on YouTube  and visit our blog page , where our team members write weekly articles to help educate you and feel confident in your financial journey.

For many individuals with investments in the market and other securities, the state of the economy is critically important. But what economic data matters most? Where can I find it? What are the most credible sources? How often is the data released? Don’t worry; one of my goals in today’s article is to help you answer these questions!   The Conference Board’s LEI The Conference Board is a non-profit organization that provides trusted insights and economic data to help businesses and investors make informed decisions. They release the “Conference Board’s Leading Economic Index (LEI)” monthly, typically around the third week of the month.   The Conference Board’s LEI predicts future economic activity by combining ten key indicators. A rising LEI suggests economic growth, while a falling LEI signals potential downturns. The LEI factors average weekly hours (manufacturing), initial unemployment claims, new orders for consumer goods and nondefense capital goods (excluding aircraft), ISM® new orders, building permits, stock prices, the Leading Credit Index™, the interest rate spread, and average consumer expectations for business conditions.   You can find the summary and detailed reports of The Conference Board’s Leading Economic Index (LEI) on their LEI page. This page includes the latest press releases and comprehensive reports that provide insights into the economic outlook. By monitoring the Conference Board’s Leading Economic Index (LEI), investors can anticipate economic trends and adjust their strategies accordingly.   For example, when the LEI is up, it suggests economic growth, and investors might favor cyclical industries like consumer discretionary and technology, which tend to perform well during expansions. Conversely, when the LEI is down, indicating a potential downturn, investors might shift to defensive stocks like utilities and consumer staples , which are more resilient during economic contractions.   Federal Reserve Economic Data (FRED) FRED is an online database from the Federal Reserve Bank of St. Louis that provides access to a vast array of economic data. FRED releases data at various frequencies, including daily, weekly, monthly, quarterly, and annually. You can find the release schedule and detailed information on FRED’s Economic Release Calendar.   FRED provides insights into interest rates, inflation, and employment, helping investors understand economic trends. For example, during periods of high unemployment and recessionary cycles, bonds generally perform better as investors seek safer investments , while stocks often perform worse due to reduced consumer spending and lower corporate earnings.   Bureau of Labor Statistics (BLS) The BLS is a U.S.  government agency that collects and shares data about the economy, including employment, inflation (CPI), and the  Producer Price Index (PPI). The Jobs Report, CPI, and PPI are all released monthly, with the Employment Report typically on the first Friday, the CPI around mid-month, and the PPI usually in the second week.   This data gives a snapshot of the job market, showing how many people are working or unemployed. It also tracks price changes for consumers (CPI) and businesses (PPI), which helps indicate inflation trends. Together, these data points give clues about the overall health of the economy.   By keeping an eye on the BLS data, the average investor can gauge the health of the job market and inflation trends. For example, if inflation is up, historical trends show that  stocks and bonds tend to perform worse , while  commodities and real estate often outperform . This information can help investors make more informed decisions about adjusting their portfolios to mitigate risks or capitalize on growth opportunities.   Putting it all together Staying current on the state of the economy can help us be prepared for whatever lies ahead. At Whitaker-Myers Wealth Managers , we understand not everyone has time to comb through dozens of pages of economic research. That is why our team of financial advisors  uses these tools to help you reach your financial goals. Reach out to one of our advisors today; by doing so, you can gain insight into expectations for the economy, build a financial plan, or make changes to an existing one!

What is Mean Reversion? Mean reversion is a financial concept that describes the tendency of a stock or index price to return to its average or "mean" value after deviating from it. This phenomenon is based on the idea that extreme price movements, whether upwards or downwards, are often temporary and unsustainable in the long run.   Think of your daily commute. Imagine if your average commute took one hour to complete. Depending on traffic, you may experience longer-than-average delays; on other days, when traffic is light, it may take you less than average. Over time, with enough samples, your commute tends to revert to the average of 60 minutes.   Stocks tend to do this as well. We see these deviations in individual securities/stocks as well as asset classes  or categories. Using technical analyses while tracking 30-day, 60-day, or 120-day moving averages, traders who employ mean reversion strategies can try to capitalize on these temporary price deviations. They believe that when a stock moves significantly away from its average, it presents an opportunity to profit from its eventual return to the mean.   Mean Reversion Strategies in Practice Mean reversion strategies are often implemented using technical indicators that help identify overbought or oversold conditions. These indicators include:   RSI (Relative Strength Index) The RSI is an oscillator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. It fluctuates between 0 and 100. A high RSI value (typically above 70) suggests the asset is overbought, while a low RSI (typically below 30) indicates oversold conditions. Traders using mean reversion might buy when the RSI is low, anticipating a price rebound, or sell when the RSI is high, expecting a price correction.   Bollinger Bands Bollinger Bands consist of a moving average and two standard deviations plotted above and below the moving average. These bands widen during periods of high volatility and contract during periods of low volatility. A stock price moving outside of the Bollinger Bands can signal an overextended move, suggesting a potential mean reversion opportunity. Traders might sell when the price touches the upper band, expecting a pullback, or buy when it touches the lower band, anticipating a bounce.   Stochastics   Similar to RSI, the Stochastics oscillator is used to identify overbought and oversold conditions. It compares a stock's closing price to its price range over a given period. Traders might use the Stochastics oscillator in conjunction with other indicators to confirm mean reversion signals.   Consecutive Bars Another simple yet effective indicator is the number of consecutive up or down bars. This indicator helps identify extreme price moves in one direction, which might signal a potential reversal.   Internal Bar Strength (IBS) IBS measures where a stock's closing price falls within the day's price range. A high IBS indicates that the closing price is near the day's high, while a low IBS signifies a close near the day's low. This information can be used to identify potential overbought or oversold conditions.   Challenges and Considerations While mean reversion strategies can be profitable, they also carry certain risks and limitations. Starting from: Identifying the mean Determining the appropriate "mean" for a particular stock or index can be challenging. Different timeframes and calculation methods can yield varying results. Trend Days Mean reversion strategies tend to be less effective on trend days, where the market exhibits a strong directional bias. On such days, the price might continue to move in one direction, defying mean reversion expectations. Stop-Loss Orders Implementing stop-loss orders is crucial to manage risk in mean reversion trading. These orders automatically sell a position if the price moves against the trader's expectations, limiting potential losses. Psychological Factors Mean reversion trading can be psychologically demanding. It often requires buying when the market is falling or selling when the market is rising, which goes against the common instinct to follow the trend.   Conclusion Overall, mean reversion is a valuable concept that can be incorporated into trading strategies. However, it's essential to understand its limitations and use appropriate risk management techniques. Combining mean reversion indicators with other technical analysis tools and a sound understanding of market dynamics can help make more informed decisions. Keep in mind that I do not recommend these strategies to the majority of investors. Most of us are long-term investors intending to play the long game to succeed and meet our financial goals. My intent in sharing these strategies is simply to educate part of the investment world.     If you need any assistance on your financial journey, walking through Dave Ramsey’s Seven Baby Steps , or need a deep dive into your financial/investment plan, reach out to a member of our financial advisor team . They are always ready to help with the heart of a teacher to help educate and create a plan to help you reach your financial goals.

Who remembers their senior year of high school? You’ve completed at least 12 years of school already, perhaps even more with pre-school, and at this point in your life you feel like you’ve learned everything you need to know and you’re just ready to be done. Problem is you have one more year and taking it too easy in that last year, could create hardship in the not-too-distant future. In the same way, many retirees, as they enter their final working years feel those same, “just get me outta here” emotions they felt all those years ago in high school, yet decisions made right before retirement can have some big impacts. Let’s consider that as a general rule, most individuals have a gradual rising income over their working career. Even young high-income earners can expect that high income to continue to grow into the future. What we’re often faced with a few years before retirement is some of the best income you’ll personally ever see, which allows for some great “catch up” strategies like ensuring all your debts are paid off, including your home, making sure your emergency fund is stacked as strong as you’ve ever had it and putting the final touches (including catch up) on your retirement savings. The purpose of this article is to dive into the realties of how to deal with a retirees retirement savings right before retirement. To be clear, every situation is unique and your specific situation should be discussed with your financial advisor . Your financial advisor is part of your team, which includes your tax and estate planning professionals that should guide you through retirement and a good advisor, according to Vanguard’s Advisor Alpha Study , can add as much as 3% to their clients return through asset allocation, rebalancing, behavioral coaching, asset location, spending strategy (withdrawal order) and other factors. So, let’s dig into the question of how someone should allocate their retirement savings right before retirement – Roth or Pre-Tax? Delay Your Roth Contributions We know the team at Ramsey Solutions tells us that the Roth IRA or Roth 401(k) is the right way to go and we whole heartly believe that, however for some pre-retirees the decision to do a delayed Roth IRA may be more beneficial. What we mean by a delayed Roth IRA is making contributions right before retirement into pre-tax retirement accounts, as opposed to your Roth IRA or Roth 401(k). The reason for this is tax savings, relative to your cost to convert the monies right after retirement. Let’s take a look at an example. In 2022, a married couple, filing jointly, can earn up to $83,550 while paying 10% and 12% in federal taxes. With their standard deduction in 2022 of $25,900 that could increase their potential income in the above mentioned brackets, to $109,450. Then your rates jump to 22% and go as high as 37%. All things considered keeping your income in the 10% and 12% brackets is a pretty nice strategy. So, let’s assume our client, SAMPLE CLIENT A , who is age 63 and will retire at age 65, is earning $120,000 between himself and his wife. That means that he should be contributing $18,000 towards retirement ( Baby Step 4 – 15% of income into retirement ). If they would contribute everything to a Roth IRA / Roth 401(k) then they’d have a piece of their income ($10,500) that would fall into the 22% bracket therefore costing them $2,321 in federal taxes on that piece of their wages. However, if they allocated, that $10,550 into their pre-tax accounts and left the balance of their savings in Roth buckets they would have avoided the 22% bracket altogether. Fast forward two years when SAMPLE CLIENT A retires and let’s assume they would like $70,000 worth of income in retirement. Their income is broken down as follows: $30,000 – Social Security – Only 85% of this income is taxable so only $25,500 hits their return $40,000 – Income from Retirement Accounts (assuming non-Roth assets here) Therefore, their taxable income is $65,500. That means, under 2022 tax laws, they would have $43,950 left in the 12% federal income bracket. Let’s go back to the $10,550 they allocated to their pre-tax account at age 63, if grew at an 8% rate it is now worth $12,373. If we did a Roth Conversion of this money, meaning taking it from the pre-tax account and moving it to the Roth IRA, now that they are retired and their income is lower, we would have to pay $1,484 in federal income taxes. Keep in mind, at age 63 we saved $2,321 in taxes by contributing the $10,550 to the pre-tax side, to keep ourselves under the 12% bracket. Thus approx. tax savings for this person was $837. If they had a higher income, presumably you’d contribute more to the pre-tax side, creating an even larger savings. This strategy won’t be right for everyone, however those that are above the 12% federal bracket ($109,450 income in 2022 with the standard deduction) and that will dip below it when entering retirement, should be able to see tax savings by executing this strategy. Of course, we always recommend you consult your financial advisor team and your tax ELP team to get specific advice to your unique circumstances.

Invest in what you know or invest with someone you trust with the heart of a teacher. That's the way I've heard Dave Ramsey describe your investment strategy. We make better decisions when we understand those decisions better. That's why I don't try and repair my plumbing. It would be an awful decision to try and attempt that because I'm not an expert, nor do I want to learn that, considering my busy work, family, and church schedule. Thus, I outsource, and before I buy, I want to learn what will happen, when and how much it will cost. Typically, within your 401(k), it's hard to outsource and hire an expert because the plan is held in a pre-determined place, with a pre-determined investment lineup (which is typically not bad), that I must self-direct myself. Thanks to Fidelity's BrokerageLink® and Whitaker-Myers Wealth Manager's new custodial relationship with Fidelity, certain employees may now be able to get the expertise they desire when utilizing their company's retirement plan. If you’re an employee of The Cleveland Clinic , you likely have access to a robust retirement savings plan through Fidelity Investments. One compelling feature of this plan is the Fidelity BrokerageLink® option, which allows you to take more control over your retirement investments. With guidance from Whitaker-Myers Wealth Managers , you can unlock the full potential of this feature and align it with your long-term financial goals. What is Fidelity's BrokerageLink®? Fidelity's BrokerageLink® is an investment option within certain Fidelity retirement plans that gives participants access to a wider range of investment choices beyond the standard, pre-selected plan options. While traditional plans typically offer a limited menu of mutual funds or target-date funds, BrokerageLink® opens up a world of investment opportunities, including: Individual stocks Exchange-traded funds (ETFs) Thousands of mutual funds Other advanced investment options This flexibility empowers investors to tailor their portfolio to better suit their individual risk tolerance, retirement timeline, and specific financial objectives. How Cleveland Clinic Employees Can Benefit For employees of The Cleveland Clinic, utilizing the BrokerageLink® feature with the expertise of Whitaker-Myers Wealth Managers can offer several key advantages: 1. Enhanced Diversification Standard retirement plans often provide a “one-size-fits-all” selection of funds. Many times, if you're unable or unwilling to select the investments they default you into a Target Date Fund (a fund with the year on the end of it). By leveraging BrokerageLink®, you can diversify your portfolio with asset classes and funds that aren’t included in the standard plan. This broader access can help reduce risk while potentially enhancing returns over the long term. 2. Personalized Investment Strategy Everyone’s financial situation is unique, and your investment strategy should reflect that. Through BrokerageLink®, Whitaker-Myers Wealth Managers can work with you to craft a highly personalized portfolio, balancing growth potential with appropriate levels of risk to meet your specific retirement goals. 3. Professional Guidance While BrokerageLink® provides greater flexibility, it also requires more hands-on management. That’s where we come in. Our Smartvestor Pro financial advisor team can help you navigate the expanded investment universe, selecting options that align with your goals, preferences, and overall financial plan. 4. Cost Efficiency Many mutual funds available through BrokerageLink® may have lower expense ratios than the default options in your plan. Lowering your investment costs over time can significantly impact the growth of your retirement savings. 5. Opportunities for Growth For those who are financially savvy or working with a professional advisor, BrokerageLink® can offer access to investment options with higher growth potential. With our guidance, you can explore these opportunities while maintaining a disciplined and strategic approach. Why Work with Whitaker-Myers Wealth Managers? Whitaker-Myers Wealth Managers has extensive experience in helping clients optimize their retirement savings. For Cleveland Clinic employees, this includes providing tailored advice on how to use features like BrokerageLink® to their advantage. Our advisors can: Help you set up and manage your BrokerageLink® account. Develop a customized investment strategy aligned with your goals. Monitor your portfolio to ensure it remains balanced and on track. Provide ongoing support and adjustments as market conditions and your needs change. Tim Hilterman, CFP®, Chief Financial Planning Officer at Whitaker-Myers Wealth Managers, highlights the importance of a personalized approach: "A more customized investment strategy ensures that every dollar you invest is working toward the financial goals we’ve helped you define. By integrating your BrokerageLink® options with the comprehensive financial plan our team has put together for you, we can maximize the potential for growth while keeping you aligned with your long-term vision." Is BrokerageLink® Right for You? While BrokerageLink® offers tremendous potential, it’s not for everyone. It requires a deeper understanding of investment principles and a willingness to actively manage your portfolio—or the guidance of a trusted advisor. Before making any decisions, it’s important to consult with a professional to determine whether this option fits your financial plan. Start Planning Today If you’re a Cleveland Clinic employee interested in exploring how BrokerageLink® can enhance your retirement savings plan, Whitaker-Myers Wealth Managers is here to help. Contact us today to schedule a consultation and discover how we can empower you to take charge of your financial future. If you’d like to start your financial plan today, you can follow this link .