The State Teachers Retirement System of Ohio (STRS) has announced significant, yet temporary, changes to retirement eligibility that may impact your financial planning. From June 1, 2025, through July 31, 2027, educators can qualify for full retirement benefits with 33 years of service, reduced from the current 34-year requirement. Additionally, eligibility for reduced retirement benefits will be available after 28 years of service, down from 29 years. These adjustments are designed to provide greater flexibility for educators contemplating retirement during this timeframe. However, it’s important to understand that these changes are temporary; after July 31, 2027, the eligibility criteria will revert to the previous standards. The STRS Board plans to review these provisions in spring 2025 to determine if further adjustments are necessary. credit: strsoh.org Given the temporary nature of these changes, planning is key. Tim Hilterman, Chief Financial Planning Officer at Whitaker-Myers Wealth Managers , emphasizes the importance of strategic retirement preparation: "With these temporary changes, Ohio teachers face a unique opportunity—and challenge. It’s critical to sit down with a qualified financial planner and their team to ensure your retirement goals align with these revised criteria. Proper planning can help you maximize your benefits and avoid surprises as these adjustments expire in 2027." As retirement timelines may shift under these new rules, understanding how they fit into your overall financial strategy is essential. We recommend reaching out to your financial advisor to assess the impact on your retirement plan and ensure you stay on track for a comfortable future. You can also read a little about the STRS Defined Contribution Plan, written by President of Whitaker-Myers Wealth Managers, John-Mark Young . In this article, he discusses the plan within STRS, where a teacher would be treated more like a 401(k) employee than a pension or defined contribution plan employee. This must be elected early in your career, so talk to a Whitaker-Myers Financial Advisor to see if you might qualify for this plan if you are interested. You can read that article here . For more detailed information about these changes, refer to the official STRS Ohio announcement, which can be read by clicking here .

Whitaker-Myers Wealth Managers is excited to announce the addition of Tim Hilterman as the firm’s first Chief Financial Planning Officer (CFPO). This newly created role is a key step in our mission to deliver an unparalleled client experience while fostering the continued development of our advisors. Tim brings decades of financial expertise, leadership, and a deep commitment to community service. As CFPO, he will focus on enhancing the firm's planning processes, mentoring advisors to excel as financial planners, and ensuring clients benefit from a robust and comprehensive financial planning experience. A New Chapter for Whitaker-Myers Wealth Managers Tim's hiring reflects our commitment to staying at the forefront of the wealth management industry. By creating the CFPO role, we aim to further empower our advisors with the tools, training, and resources to better serve clients in an increasingly complex financial landscape. Tim’s focus will be on integrating financial planning best practices, improving client engagement, and being involved in the planning process with our advisors and clients, either when they initially sign on with Whitaker-Myers Wealth Managers or as their situation becomes more complex. “Our advisors are the backbone of our success, and Tim’s leadership will help them grow professionally while enabling us to provide an even higher standard of service to our clients,” said John-Mark Young , President of Whitaker-Myers Wealth Managers. “We are thrilled to welcome him to the team.” A Legacy of Service Tim joins us from Whitcomb & Hess, where he served as a Senior Financial Advisor and Planner, gaining a reputation as a strategic thinker and client advocate. His background as a Certified Financial Planner (CFP®) and a Chartered Advisor in Philanthropy (CAP®) along with his passion for helping clients achieve their goals, align perfectly with the mission of Whitaker-Myers Wealth Managers. Tim Hilterman and retired President of The Richland County Foundation Brady Groves Beyond his professional accolades, Tim is well-known for his dedication to community involvement. As highlighted in a 2018 Mansfield News Journal feature , Tim has made giving back a central part of his life: Spherion Mid-Ohio 13er : Tim founded this half marathon that raised significant dollars that were donated to the Richland Foundation , which in turn administered grants to applications with suitable programs addressing drug addiction and treatment. Richland Academy of the Arts : Tim is an active board member at Richland Academy of the Arts. The Greatest Gift - Life : Tim was recognized locally for donating a kidney to a 4-year-old girl from his church who was fighting cancer. She lost both kidneys because of her cancer and was forced to undergo dialysis for 12 hours a day until Tim's incredible gift of life! “Helping others has always been a part of who I am, whether it’s through my work or volunteering in the community,” Tim shared. “Joining Whitaker-Myers Wealth Managers allows me to continue that mission, both professionally and personally.” A Bright Future With Tim at the helm of financial planning, Whitaker-Myers Wealth Managers is poised for continued growth and innovation. His unique combination of financial expertise, leadership, and a service-driven mindset will be instrumental in shaping the firm’s future and ensuring that we continue to deliver exceptional value to our clients. As we look ahead, we are confident that Tim’s impact will be felt across the firm, from our advisors to our clients and throughout the communities we serve. Tim resides in Lexington, Ohio, with his wife Abby, and their seven children. Tim and his family are actively involved in their local church, Westwood Alliance Church , and he loves to run and hopes to one day complete in another full ironman triathlon. Please join us in welcoming Tim Hilterman to Whitaker-Myers Wealth Managers!

What is a Fee-Based Advisor? When looking for the right financial advisor , several questions should be at the top of anyone’s mind . One question we always hear when meeting with potential clients, and rightfully so, is, “How are you compensated?”. It is essential for those looking for a financial advisor to understand that advisors charge clients in a few different ways. In this article, we will look at the various compensation methods and the one you should be looking for when choosing an advisor.   Types of Advisor Compensation Financial advisors usually follow one of two compensation structures: fee-based or commission-based. A fee-based advisor charges a flat fee based on the value of the client’s assets under management (AUM). At the same time, commission-based advisors will also charge a fee and receive additional compensation based on the products they sell to clients. This should immediately be a red flag to anyone considering hiring a financial advisor due to the conflict of interests from a commission-based advisor looking to push recommendations that enhance their own pockets rather than picking the most appropriate fund for the client. It is also important to mention that some advisors are a combination of the two, meaning they charge a fee and receive kickbacks from sponsoring companies when their products are sold. That being said, the most transparent type of advisor is a fee-only type of compensation.   How are fees paid? The fee-based advisor will generally charge an annual percentage fee for the total AUM per client. A simple example would be that you have $1,000 ready to invest, and the advisor charges a 1% annual management fee, this may be broken down monthly or quarterly. That would be $10 broken down into twelve or four installments across the year, typically drawn directly from the client's account. This percentage fee will likely change as the client’s account changes. The fee-based advisor may offer other services outside of financial management that come at a separate charge, such as estate planning. It is important to mention that both types of advisors may offer additional services separate from the advisory fee. Here at Whitaker-Myers Wealth Managers , we can provide you with estate planning, term life insurance, and a financial coach and CPA on staff, all of which would have separate fees.    Fiduciary Responsibility Commission-based advisors may represent a conflict of interest by pushing products that offer themselves commission to their clients. It would be wise for individuals looking to hire a financial advisor to search for an independent advisor not tied to any mutual fund company or other proprietary products and whose compensation is fee-only. They should also look for one who upholds the fiduciary standard , meaning the advisor is legally obligated to always act in the client's best interests rather than serving self-interests.      Conclusion Whitaker-Myers Wealth Managers  is a fee-only advisor because we believe it is the most transparent form of compensation. We want clients to know that we have no ties to mutual fund companies or sell any proprietary products. This allows us to pick from a wide variety of funds and uphold our fiduciary standard of always putting the client's needs first. If you are searching for a financial advisor , we have a team ready to help answer questions and plan for your future.

The IRS recently announced the changes to the retirement contribution limits for 2025  for the various retirement account types.  To simplify, I’ve included a table of the limits below, including what you would have to contribute bi-weekly, bi-monthly, or monthly to hit the maximum limits if that’s a goal you/your advisor want to achieve.   Most clients like to contribute to these accounts periodically.  However, some clients may choose to max out their Roth/Traditional IRAs with one-time contributions.  These contributions can be from bonus money received around the end of 2024 / beginning of 2025, brokerage account  funds, an inheritance, or other cash inflow.    As a reminder, you have until the tax filing deadline (April 15, 2025, for the 2024 tax filing year) to contribute to a Traditional and Roth IRA.  For employer-sponsored retirement plans, most deadlines are at the end of the calendar year.  This means you’re limited to making contributions that go through payroll, and generally, the last pay of the year is based on the date you’re paid, not the dates the work was completed.   401(k) and Employer-Sponsored Retirement Contribution Limits for 2025 The 401(k)-contribution limit for 2025 is $23,500 for employee contributions, an increase of $500 from 2024. $70,000 is the combined employee and employer contributions limits.    Starting in 2025, there’s a new contribution maximum specific to those ages 60 – 63. If you turn one of these ages in 2025, you can contribute up to $11,250 as a catch-up contribution, which is $3,750 more than any other age 50 and older.  The 50 to 59 and 64 and older catch-up contribution remains at $7,500.    Below are the contribution limits and how much someone would need to contribute to max it out based on how often you’re paid. Source: IRS As part of the Secure Act 2.0 that was passed at the end of 2022, there was a provision that was going to force those 50 and older with higher incomes to make catch-up contributions to Roth 401(k), 403(b), etc. accounts.  That was initially scheduled to take effect in 2024, however, the IRS announced on August 25, 2023 , that this rule will have an “administrative transition period” that will delay this from taking place until 2026.   Roth and Traditional IRAs The Traditional and Roth IRA limits have not changed in 2025 from 2024.  There are still income limits based on your Modified Adjusted Gross Income (MAGI) for making contributions to Roth and Traditional IRAs, so you should consult your accountant or schedule a consultation with Kage Rush to discuss whether you are close to or over these ranges.   Deductible Traditional IRA Income Limits   Roth IRA Income Limits   Simple IRAs Simple IRA  2025 contribution maximums have increased by $500 from 2024.   Health Savings Accounts Health Savings Accounts  2025 contribution maximums have increased by $150 for an individual and $250 for a family from 2024. Other Tax-Advantaged Accounts Below is a list of other less common accounts and their contribution limits:   Every client situation is different, so you should discuss your cash flow needs with your Whitaker-Myers Wealth Managers advisor for not just retirement goals but other non-financial/financial goals.  This should also include a conversation about your sinking funds for a car, home improvement, etc. If you do not have an advisor, the team of advisors at Whitaker-Myers Wealth Managers is ready to help answer any questions you may have.

Whitaker-Myers Wealth Managers has been named the 6th Best Place to Work in Money Management   by Financial Planning.com , solidifying its reputation as an industry leader not only in client services but also as an outstanding employer. This prestigious recognition is part of Financial Planning’s  annual list highlighting the top workplaces in the field of money management. The rankings, developed in partnership with the HR research firm Best Companies Group, were determined through an extensive evaluation of workplace policies, practices, and benefit programs, alongside direct feedback from employees. Surveyed employees assessed their firms based on leadership, culture, pay, benefits, training, work environment, and overall engagement. A Three-Pronged Approach to Excellence According to Financial Planning , the best workplaces focus on three key pillars: Employee Satisfaction:  Ensuring the workplace meets the needs of its team members. Team Cohesion:  Creating an environment where teams feel valued and supported. Client Experience:  Building a workplace culture that reflects and enhances the client experience. Whitaker-Myers Wealth Managers embodies these principles. By fostering a culture of collaboration, professional growth, and dedication to client success, the firm has created a workplace where employees thrive and clients receive exceptional service. A Commitment to Excellence The ranking reflects Whitaker-Myers’ ongoing commitment to its employees and clients. With a strong leadership team, robust employee benefits, and an emphasis on professional development, the firm continues to build on its 150-year legacy of excellence. Its employees, many of whom bring decades of experience, are empowered to innovate, grow, and contribute to a supportive and inclusive culture. “We believe that creating an outstanding workplace is not just about meeting business goals but also about empowering our employees to reach their fullest potential,” said Whitaker-Myers President John-Mark Young . A Bright Future for Whitaker-Myers This recognition comes on the heels of other recent achievements, including winning the Wooster Chamber of Commerce Business of the Year Award and ETF.com naming Whitaker-Myers Wealth Managers as one of their Top 50 RIA Firms in the country . As Whitaker-Myers Wealth Managers continues to expand its services and grow its team, this accolade reaffirms its position as a leader in the financial industry. Being named one of the best places to work in money management is a testament to the firm's unwavering commitment to its employees, clients, and community. As the firm continues to innovate and lead, it serves as a shining example of how a focus on people can drive success in the financial world. For more information on this honor and Whitaker-Myers Wealth Managers’ services, visit https://www.whitakerwealth.com/personal-services .

A Life-Changing Event Our daughter and her family experienced a horrible life-changing event this past summer. They were making home improvements, replacing an interior door, and staining the door in the garage. They were using an oil-based stain. They did what we all probably do; they used an old T-shirt to stain the door. But we learned a very valuable lesson from this, so please learn from our loss here. Oil-based stains are combustible and more so in a high-humidity climate. In fact, the oil-stained rag burned a hole clean through the workbench and burned down their home beyond repair. Yes, fortunately, they were able to escape unharmed. Thank you, Jesus!   The firefighters shared that this cause of loss is all too common.  Researching this issue further, we learned that one should seal an oil-based staining shirt in a container of water before disposal.  We wish we had known that before.  We certainly know it now.  Now, you also know it.   Besides this valuable lesson on oil-based stains, we would like you to know something else...the importance of properly insuring your home.   Insuring Your Home to Value Have you ever wondered what it means to "insure your home to value"? It's a crucial concept that can significantly impact your financial security in the event of a loss.   Insuring your home to value, simply put, is insuring it for the full replacement cost. Meaning if your house is insured to value and there is a loss, your house will be replaced in full. Whereas if you do not have it insured to value, you might only be paid out a pro-rated amount.   This does come with a higher premium for the higher coverage, but as we say, having the right insurance for when it is needed is worth the additional cost throughout the year. What is Replacement Cost? The replacement cost of your home is the amount of money needed to rebuild it to its pre-loss condition. This includes the cost of labor, materials, permits, and debris removal. It's important to note that replacement cost is different from market value. Market value reflects what your home is worth on the open market, while replacement cost focuses on the cost of rebuilding.   Why is Replacement Cost Important? As property values and construction costs rise, especially in inflationary environments, it's essential to ensure your homeowner's insurance policy provides adequate coverage. Underinsured homes can leave you financially vulnerable if a major disaster strikes.   Taking Action If you haven't recently reviewed your homeowner's insurance policy with your agent, now is the time to do so. Consider the following: Recent Home Improvements:  Have you added a room, renovated a kitchen, or finished a basement? These improvements can increase the cost of rebuilding your home. Inflationary Impact:  Rising construction costs and material prices can significantly impact the replacement cost of your home. Natural Disasters:  Your region's risk of natural disasters, such as hurricanes, wildfires, or earthquakes, can influence the necessary coverage.   By proactively reviewing your policy and ensuring it's adequately insured to value, you can protect your most valuable asset. Don't let a lack of coverage turn a disaster into a financial catastrophe.   Where to find help Whitaker-Myers Wealth Managers cares about our client’s financial health. And part of a healthy financial situation is having the proper insurance(s) in place. The more you can learn and help protect yourself in an unfortunate situation, whether it be auto, health, or house insurance , we want to help you be the best prepared for any situation that could potentially derail your financial goals. Whitaker-Myers Wealth Managers is fortunate enough to be a part of the Whitaker-Myers Group . This team of professionals is equipped to help answer questions about coverage and provide quotes for you on multiple types of insurance.   If you have questions on types of insurance or would like to be put in contact with a member of the Whitaker-Myers Group  to discuss options, reach out to your financial advisor today to start the conversation.

So many terms in the financial industry  seem mysterious and confusing, and some even sound completely made up.  The Backdoor Roth IRA doesn’t need to remain a mystery.  If you haven’t heard of a Backdoor Roth, financial advisor Kelly Kranstuber  wrote a short article explaining the basics.  The team at Ramsey Solutions suggests saving 15% of your income for retirement (also known as Baby Step 4 ).    One frustration many of our clients share is that reaching that 15% can be difficult because of the income limits imposed on those making Roth IRA contributions. Before 2010, there was an income limitation for those who could do Roth IRA conversions.    Advantages of Roth IRA In 2010, the IRS changed the rules to make a way for high-income earners to make Roth conversions.  One advantage of making contributions to a Roth IRA is that many high-income earners will actually be in a higher tax bracket later in life, and thus, paying the tax now allows them to take the hit when they are in a lower tax bracket, saving money.    A second advantage is that funds inside a Roth IRA  can grow tax-free.  If an individual contributes to a traditional IRA, the investment is tax deductible in the current year, but the growth of the investment is tax deferred.  For younger investors with a longer timeline for investment growth, the difference in taxing contributions now versus taxing the growth later could be tens of thousands of dollars in tax liability—even if they remain in the same tax bracket their entire working career.    A third advantage is that because contributions are taxed going into a Roth IRA, there are no Required Minimum Distributions  (commonly referred to as RMDs) when the account owner reaches the age of 70 ½, as is the case with investments in a traditional IRA.   Misconception #1: Process NOT Product A Backdoor Roth IRA  is not actually a type of account… instead, it is a PROCESS whereby high-income earners can avoid the IRA income limitations for making contributions to a Roth IRA.  This process has become a popular tax-advantaged strategy for making retirement contributions in a way that avoids the income limitations associated with making Roth IRA contributions (in 2023, the limit for couples married filing jointly is $218,000-$228,000 and the limitation for those filing single is $138,000-$153,000).    If you are unfamiliar with the difference between a Roth IRA and a traditional IRA, take a few minutes to read   this description of the differences posted by Fidelity—one of our custodial partners at Whitaker-Myers Wealth Managers .       Misconception #2: I can do this on my own Yes and no.  The process of making backdoor contributions is relatively simple if the investor(s) do not already have IRA accounts (traditional IRAs, SIMPLE IRAs, SEP IRAs).  If an interested investor does have preexisting IRAs, making a backdoor Roth contribution is still possible, but there are complex tax issues involved in calculating the Pro-Rata tax treatment of funds being converted.  We advise seeking direction from a CPA in these cases.    For those looking to increase or begin making retirement contributions, the primary move is to open two accounts: an IRA and a Roth IRA.  The contributions are made to the IRA and held in cash for no more than the time it takes for the transaction to settle. Then, the transaction is moved into the Roth IRA and invested within that account.    However, an important step involves notifying your CPA to ensure you file the appropriate forms.  Most CPAs will assume that contributions to an IRA will not be withdrawn because doing so triggers the taxation and, in some cases, a penalty.  In the case of a Roth conversion, this withdrawal will trigger the issuance of a 1099 unless the CPA files IRS Form 8606  to note the funds that have been converted into the Roth account.  If you have questions about your particular tax situation, consult your CPA or contact Whitaker-Myers Tax Advisor Kage Rush  for more information.   Misconception #3: Money inside a Roth IRA will take care of itself Remember, the Roth IRA is simply an umbrella under which an investor can save for retirement and enjoy tax-free investment growth.  The funds inside the Roth should be invested with careful consideration of the objectives and goals of the individual investor, including the appropriate risk profile and time horizon based on the expected retirement income projections.  Since one of the reasons for converting into a Roth is to avoid taking RMDs, investors using a target date fund may miss out on potential growth opportunities by having an asset allocation  mix that doesn’t fit their specific situation.   Summary If your household income falls within the high-income limitations described above—or your income is approaching those limits, it may make sense for you to talk to a financial advisor  about whether making Backdoor Roth IRA contributions is right for you.  When done correctly, the Backdoor Process involves three basic steps: Open two accounts, an IRA and a Roth IRA Move funds into the IRA for the minimum holding period (usually a few days) before converting into the Roth Work with your CPA or tax professional to file form 8606   At Whitaker-Myers Wealth Managers , our team can assist clients through various aspects of financial management, retirement income planning, and tax advice.  If you are interested in speaking with a financial advisor, schedule a conversation today.

Basic Insurance In addition to health, home, umbrella, and auto insurance, each family and most individuals should consider a few other types of insurance to protect their assets and overall financial plan. Planning for the unexpected is important, and insurance serves that purpose. It's a safety net that provides relief in times of crisis, ensuring your financial plan stays on track. It's not an investment that grows over time; it's a shield that protects your financial plan from being derailed, provides peace of mind, and reduces the burden of unexpected events. Here are a few additional types of insurance to consider for yourself and your family.   Life Insurance Life insurance is a must for individuals who have people who depend on their income or even their non-income support to get by day to day. And even if you are single, you might consider a policy that will at least cover your funeral expenses vs. leaving it to your family/friends to figure out and arrange when already dealing with grief.   Among the various life insurance options, term life insurance  stands out for its affordability and suitability for most individuals. Other types, such as whole life or universal life, often come with a higher price tag for the coverage they offer.   Several factors, including age, health, coverage amount, term length, and occupation, influence the cost of life insurance. A common guideline is to choose a policy with a death benefit of ten to twelve times your household income. As the Ramsey Solutions Team  suggests, stay-at-home parents should also consider a policy covering child care and home care costs, somewhere between $250,000 to $400,000.   As far as length of term goes, consider a 15 to 20-year policy. Life insurance is only necessary when someone depends on one’s income to go about their daily life. Eventually, children grow up and move out, and this should be enough time to build wealth and become self-insured.   Lastly, life insurance costs continue to increase, so getting covered sooner rather than later will save money. Locking into a level-term policy will ensure the price does not change for the policy's full term. The need for an additional policy may occur as income goes up. In that case, adding extra coverage is possible with an additional policy.   Long-Term Disability Insurance Long-term disability insurance  is also a must-have for working adults. Becoming disabled and unable to work for a prolonged period can be devastating to a family. The Social Security Administration claims that “About 1 in 4 of today’s 20-year-olds will become disabled and entitled to Social Security disabled worker benefits before reaching age 67, and 65% of the private sector workforce has no long-term disability insurance.” - SSA.gov     That is a crazy statistic and furthers the need for long-term disability insurance. You can get Social Security Disability, but that can take a long time. First, you need to be approved for the government benefit, and then, if you are approved, you must wait five months before you can get your first payment.   Having a long-term insurance policy can bridge that gap. A common question is, “Should I have short-term disability too?” Short-term benefits last between three to six months, depending on the coverage. That is also how long it takes for long-term policies to start. Planning correctly can avoid the need for short-term disability insurance if you have a fully funded three to six-month emergency fund .   The cost of long-term disability is typically 1-3% of your income. Even if you have a relatively safe job, that does not eliminate the need for coverage. However, it can help lower the cost.   Identity Theft Protection With the rise of AI and technology in general, protecting your identity is more critical now than ever. Millions of people are victims of identity theft  every year, and that number is growing. In 2023, 5.7 million identity theft cases were reported to the Federal Trade Commission (FTC), and identity theft cases have almost tripled in the last decade. – FTC Stats   The cost of identity theft protection varies, but finding an affordable policy with a quick internet search is easy. Here are a few easy ways to avoid becoming the victim of identity theft: Beware of phishing emails or spam calls. Do not give away your social security number unless you know it is safe to do so. Watch for mail or packages and get them promptly when they arrive. Shred documents with sensitive information. Use strong passwords or a password generator  for online accounts. Do not use easy-to-guess security questions. Always use two-factor authentication. Do not use public wi-fi to check your bank account or other sites with sensitive information. Add alerts to your credit cards and bank account.   Where to look These additional types of insurance can be a lifesaver when one least expects it. This article is meant for general informational purposes and should not be taken as advice. Several of our agents at Whitaker-Myers Group  are licensed in multiple states and would be happy to discuss in more detail these insurance products or any other type of insurance you are looking for.     If you would like to talk to someone about how these could benefit your financial plan, we suggest contacting your advisor. If you do not have an advisor, Whitaker-Myers Wealth Managers has a team of advisors  ready to help answer your questions.

We are thrilled to announce that Whitaker-Myers Wealth Managers  has been named one of the Top 50 RIA Firms in the United States  by ETF.com ! This prestigious recognition is part of the ETF.com Leaders: Top Advisors & Firms List , which highlights financial professionals and firms that demonstrate exceptional expertise, growth, and leadership in leveraging exchange-traded funds (ETFs) to help clients achieve their financial goals. For the last decade, Whitaker-Myers Wealth Managers has been dedicated to providing clients with personalized, comprehensive financial strategies designed to grow and protect their wealth. This honor reflects the hard work and dedication of our team , as well as our commitment to innovative and client-focused investment solutions. "We appreciate ETF.com 's recognition of our forward-thinking investment philosophy and process, rooted in the principles taught by Dave Ramsey and leveraging the next generation of diversified investment options such as ETFs ,"  said John-Mark Young , President and Chief Investment Officer of Whitaker-Myers Wealth Managers. As a firm that embraces the power of education and disciplined financial planning, we are proud to be among the leaders shaping the future of wealth management. ETFs, with their cost efficiency, transparency, and flexibility, play a critical role in helping us design portfolios that align with our clients’ unique objectives while remaining agile in today’s dynamic markets. This recognition inspires us to continue innovating and building on our mission to deliver financial clarity, peace of mind, and long-term success for our clients. We would like to thank our clients, partners, and team members for their trust, collaboration, and dedication—without you, this achievement would not have been possible. To learn more about how our team can help you build a brighter financial future, contact us at 330-345-5000 or visit our website at www.whitakerwealth.com . Let’s continue this journey together!

Defining your investment plan When choosing the best way to invest in the stock market, it is good to look at a few items that make up the stock market. Knowing what stocks, ETFs, and mutual funds are is essential in determining the best action plan when investing. Through this knowledge, one hopes to understand better what stocks, ETFs, and Mutual funds are. Stocks The definition of a stock is: “In finance, stock consists of all the shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares”. When one buys a share of Microsoft, Facebook, or Tesla, they become a fractional company owner. Stocks allow stockholders to vote on board members and give the stockholder the potential to receive dividends. When someone invests aggressively, they would have a portfolio made up almost entirely of stocks. Stocks are risky, as they measure a given company's performance and perceived value. If a company is deemed worthless, then so is your proportional ownership in that company. The pro of a stock is that a stockholder can benefit from growth in a company, long-lasting performance in the form of dividends, and a small say in what is happening in the company. ETFs The definition of an Exchange Traded Fund (ETF) is: “A marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.” The best metaphor to explain ETFs is in the definition. It is a basket. Within that basket are multiple assets. Let’s say that someone thinks the S&P 500, which tracks the performance of the 500 most valuable companies in the USA, is the best “basket” to invest in. Well, there is an ETF for that. Custodial companies like Schwab, Vanguard, and Fidelity have their own ETFs that track the S&P 500. Although Exchange Traded Funds (ETFs) take two days to settle, their price is always live during market hours, just like a stock. It is constantly fluctuating during that time too. What is made up of this basket depends entirely on what the ETF was created to track. It does not change. Mutual Funds The definition of a Mutual Fund is: “A professionally managed investment fund that pools money from many investors to purchase securities.” Mutual Funds have a fund manager. This person decides what comes in and out of the mutual fund and acts accordingly based on market trends. They take the pooled money and diversify the fund for those who buy into it. Mutual fund pricing is not live and is updated at the market’s closing of each trading day. The mutual fund also comes with a management fee for purchasing into their fund. The power of speaking with your advisor Everyone has different goals and risk tolerances, and that is why it is important to speak with your advisor to make sure your assets are allocated appropriately. If you have more questions, be sure to reach out to your Financial Advisor today.

Beginning Steps In recognition of Small Business Month, Whitaker-Myers Wealth Managers is partnering with our CPA and fellow small business owner, Kage Rush, to discuss the thought process and steps needed to open and continue to operate a successful small business or side hustle. This article will be the first of three on organizing a small business and the early steps. Starting a small business can be an exciting opportunity. Still, it can also present new risks and challenges for entrepreneurs who may not know what all is entailed with running a small business. Many people have ideas they think will work for a small business but don’t always have a business plan to execute the vision. Regarding your business venture, there are several factors to consider when starting a small business. Questions to ask yourself We list a couple of questions below to consider when you are starting a small business: Is there a market in your area for the service/project you are creating? If the market for your product is not for local clients, what is the hurdle needed for the service/product to be easily accessible to the markets you want to service? How competitive is the market for your service/product? If there is similar competition for your service/product, then your margin for error can be tight, or revenue could be harder to generate because of competitive pricing. How much money or capital is needed to start the business before it becomes sustainable on its own? If the business is not profitable for several years, the owner(s) must be willing to fund it until it is sustainable. Do you want to be the business's sole owner, or do you want to bring on partners to share the company's burden? What is your goal/purpose for creating the business? Will you need to hire employees at the start of the business? How much time are you willing to commit to the business? What are the risks associated with starting the business? If risk is associated with your business, you may want to consider putting the business in a Limited Liability Company (LLC). We recommend contacting qualified attorneys for this to ensure the proper setup of the LLC. Will this business become your full-time job and source of wages/income? Creating a Business Plan Answering these questions helps entrepreneurs create business plans to help meet their objectives. The business plan enables you to set goals for the business, track progress towards those goals, and give you a vision of what the business will look like once you have created your business plan. The definition of a business plan is “a document that sets out a business’s future objectives and strategies for achieving them.” The critical part of that definition is the word “document,” meaning you want to have a written plan that can be referenced and checked to hold yourself accountable. Goals for a business plan should be specific, obtainable in a reasonable period, and measurable. A bad example of a goal for a business plan is to say, “My goal is to become the greatest tax preparer on the planet!” . While some of my clients may feel that way, there is no easy way for me to measure success on that goal. A better example of a goal for a business plan is to say, “I want to add 75 new clients for the tax year 2023.” The purpose is clearly defined. We have a time period to reach that goal and can measure the success of that goal by how many new clients we gain between now and April 15th, 2024. Setting up your game plan Once a goal is established, the next step is creating a game plan for reaching that goal and creating checkpoints. Using the example goal from above, if my goal is to add 75 new clients by April 15th, 2024, I need to add 18 clients a quarter, or 6 clients a month between now and April 2024, to succeed. Our goal checkpoints can now be measured to see if our goal is progressing to completion, whether we are behind on the goal, or if we are exceeding those expectations. Monitoring these checkpoints for your goals is essential because it holds you accountable to your business plan and helps you take a step back and take a macro view of your business. Next Steps… I hope this article helped provide insight into the thought process behind starting a small business. Our next article (Part II) will cover the type of business entities to choose from to form your small business, the tax implications and reporting associated with that choice, and how to determine what setup best suits your needs. If you are interested in starting your own small business and have accounting questions or need accounting services, please get in touch with your financial advisor or visit our tax website to schedule an appointment.

Annuities “You get an annuity; you get an annuity, you get an annuity, and in fact… everyone gets an ANNUITY!”   It's not a common phrase you would expect to hear from a Dave Ramsey  enthusiast.  And for GOOD REASONS! Annuities are a very complex investment system and require a very in-depth breakdown. However, this article intends to give a 30,000-foot overview. We will start by looking at the common terminology to understand annuities and the pros and cons of the annuity product.       What is an Annuity? Let’s start by defining an annuity and some common terminology used with annuities.   Annuity An investment product, where the insurance company agrees to make payments to the Annuitant; these payments can either be made immediately or in the future   Accumulation Phase A   period of time in which the annuity grows (funds are accumulating)   Annuitization Phase Payments to the annuitant begin   Annuitant The individual who opens the annuity with the insurance company   Beneficiary Persons who are entitled to a death benefit if the terms of the Annuity contract permit    Common Types There are several different kinds of annuities as well. With so many available, knowing which one could benefit you can be overwhelming. Below are the most common types of annuities, to name a few. Immediate Annuity The insured person provides a large lump sum, and the Insurance company starts to provide immediate payments to the insured person Deferred Annuity Payments to the insured person start at some future date The insured party can either provide an initial large lump sum payment or make periodic payments Flexible Premium Deferred Annuity Insured persons make payments, which they can change the amount they regularly contribute; just like investing, the less you contribute, the less your potential income stream is Single Premium Deferred Annuity Initial Large lump sum payment Commonly purchased with proceeds from a life insurance policy Fixed Annuity Funded with a significant initial contribution Insured receives a fixed interest rate over a period of time Variable Annuity Funded with an initial contribution Invested into sub-accounts that are tied to either the equity or bond market No guarantee of returns   Payment Types Knowing how the annuity would be paid out is important to be aware of, as there are several different ways to do this. Pure Life Annuity Payments are made to the annuitant throughout their lifetime.  Anyone wishing to provide an asset to their heirs would not use this investment vehicle. Refund Option Annuitants can choose a period of time when their heirs receive a payment proceeding the annuitant’s death if the annuitant dies before the end of the annuity The annuitant buys a $100,000 annuity and only collects $75,000 before their death; the balance ($25,000) goes to the annuitant’s heirs Period of Time Certain Annuity The annuitant can choose a length of time where the annuity is guaranteed. However, it will continue throughout the entire lifetime of the annuitant The annuitant chooses a “10-year Period of Time Certain Annuity”, but if the annuitant dies in year 7, the annuitant’s heir will receive payments for 3 years  The annuitant chooses a “10-year Period of Time Certain Annuity”, but if the annuitant dies in year 40, since the annuitant received a monthly payment for all 40 years, the annuitant’s heir will not receive any benefit Joint and Survivor Annuity This annuity will cover two annuitants; typically, these are two spouses, and this option will make payments for both the annuitants' lives  Annuitant buys a Joint Survivor Annuity, and one of the annuitants dies within three years, but the spouse dies 30 years later; the surviving spouse will receive monthly payments for their whole life No benefit for heirs   Benefit Rider This is a benefit an annuitant can purchase, allowing the upside potential of the equity market along with a guaranteed rate of return and principal protection.  Cost ranges from .3% - 2% annually Guaranteed Minimum Accumulation Benefit Guarantees for a specified period of time an investor’s contract will be at a minimum amount of invested regardless of performance Has principal protection with upside potential Funds are invested in sub-accounts Guaranteed Minimum Income Benefit Guarantees annuitant a minimum amount of income during their lifetime regardless of the investment performance The minimum monthly amount is based on the annuitant’s initial investment The annuitant must wait for a specified period of time before annuitization Guaranteed Minimum Withdrawal Benefit Guarantees a percentage, usually 5%-7%, of the amount invested can be withdrawn annually until the entire amount is recovered Principal protection Guaranteed Lifetime Income Benefit Guarantees a certain percentage, usually 2-8%, of the original investment can be withdrawn each year as long as the annuitant lives Percent is usually based on age, with young individuals receiving a lower percentage    Taxation of Annuities As with everything in life, one must consider the tax associated with an annuity. Growth of the investment is tax deferred.  Then, when the annuitant elects to start distributions, growth is taxed at Ordinary income.  If the annuitant outlives the original benefit of the annuity, all payments following that point are taxed at Ordinary income.  The annuitant purchases $100,000 annuity.  He receives $2,000 a month.  Of that $2,000, $833 is principal of his original $100,000 and the $1,167 is interest.  After 10 years, he has received the $100,000 that he contributed.  100% of distributions following this point will be taxed at Ordinary Income.   As mentioned at the beginning of this article, annuities are complicated to understand; in fact, many people within the financial community don’t fully understand them.  This information will help clarify this complex product in future articles.  At Whitaker Myers Wealth Managers , we have a team of financial advisors available to help answer questions and create financial plans to help try and reach your financial goals. If you don't have an advisor, reach out to one of our team members today!