• New Year, New Goals: Planning Your Money Moves for 2024


    Smart Money Moves: Will You Start the New Year with a Roadmap to Success?

    The coming of a new year inspires much thinking and planning. You may be looking for ways to structure and organize your life to be prepared for a brand-new year, especially when it comes to your personal finances. As you plan your money moves for 2024, it’s important to consider both short- and long-term goals. It’s also beneficial to arrange finances for emergencies or unexpected situations. How should you plan your money moves for 2024 to ensure economic stability and prosperity? Here are key strategies to consider.

    List Short-Term Goals

    When people discuss personal finances, they tend to think in generalized terms. How much wealth have they accumulated? How are their finances positioned for the future? Will they be able to retire comfortably?

    While all of those objectives are important, you still have to live in the present. This means taking care of short-term needs that may arise within the next few years. Your money moves for 2024 should account for these smaller-scale goals and unexpected events.

    Short-term goals can include:

    • Paying down credit debt
    • Building an emergency fund
    • Saving for vacation
    • Purchasing new appliances
    • Exploring additional income streams
    • Renovating or improving your home
    • Planning for marriage, children, relocation, or other life transitions

    Many other goals and ambitions can be characterized as short-term needs. Whatever they are, make room for them in your plans for money moves in 2024. You may have big ideas in mind for the future, but you still need to live day to day. Plan your finances to take care of the present, too.

    Articulate Long-Term Goals

    While you’ve got to consider your short-term financial goals, it’s essential to keep your long-term goals in sight, too – even though these are goals that won’t be met for years, or even decades down the road. They can include:

    • College tuition for children
    • Saving for retirement
    • Paying off a mortgage
    • Starting a business
    • Planning for long-term healthcare needs
    • Achieving financial independence
    • Establishing a legacy

    Thinking about long-term goals can be frustrating at times because they often feel aspirational. You can expect to make gradual progress – even slow at times – which can be a hit to your motivation. It’s not necessarily easy to track your success in meeting them. However, it’s very beneficial to itemize them while you’re still working to set a framework for your future.

    Keeping these goals uppermost in mind will help you make more responsible financial decisions now, planning your money moves for 2024 to pay off handsomely in the future.

    Identify Middle-of-the-Road Goals

    Sometimes, it’s hard to determine whether a certain financial goal or need is short- or long-term. Some may consider buying a home within 10 years to be a long-term goal, while others who are positioned to buy a house outright might think about it as a short-term goal.

    The good news is that you don’t have to classify these middle-of-the-road goals. You can set a reasonable timeline for accomplishing them that works for you. Some of these goals might include:

    • Maximizing 401(k) contributions
    • Improving your credit score
    • Supporting charitable causes
    • Taking on home renovations
    • Growing your savings and emergency funds
    • Pursuing a “passion project”

    These goals can also be considered “active” ones that aren’t defined by time. Although many people prefer to have some sense of time for each goal, you can give yourself the freedom to identify timelines that work best for you, identifying money moves for 2024 that suit you personally.

    Make a Realistic Budget

    One of the biggest pitfalls of setting financial goals is harboring unrealistic expectations. You might expect to be able to conclude payments on your car loan within three years, but you can’t account for uncertainty or surprises. It might not even be possible to construct a timeline until you’ve been working at achieving your goals for a time.

    On the other hand, you might discover that you have the means to pay off certain debts earlier than expected. You may find yourself able to pay double your current mortgage and get on track toward an early payoff. If you’ve set a realistic budget that allows you the time and room to make alterations, you’ll find it easier to accomplish your goals.

    When you make money moves for 2024, approach them from a realistic standpoint. This goes beyond daydreaming — it means thinking rationally, preparing honestly, and putting pen to paper. Don’t be afraid to switch short- or mid-range goals to long-term goals if the situation warrants. Think about the future, but also think about how to maintain a content existence from day to day.

    Get Help with Your Money Moves for 2024

    January is Financial Wellness Month and there’s no better time to think about your financial future. If you would like to update your Lane Hipple financial plan or simply refresh your memory as to the financial goals we set out to achieve for you, please do not hesitate to reach out and schedule an appointment.

    Happy New Year!

    Illuminated Advisors is the original creator of the content shared herein. I have been granted a license in perpetuity to publish this article on my website’s blog and share its contents on social media platforms. I have no right to distribute the articles, or any other content provided to me, or my Firm, by Illuminated Advisors in a printed or otherwise non-digital format. I am not permitted to use the content provided to me or my firm by Illuminated Advisors in videos, audio publications, or in books of any kind.

  • Legacy Planning for Families: Passing on Your Values and Wealth


    Tips to Serve Your Family Now and into the Future Through Smart Legacy Planning for Families

    Affluent individuals often turn to legacy planning for families to ensure that they protect not only their financial standing but also their values and missions. Some of the steps they may take include designating an executor to manage the distribution of assets, writing a will, and filling out beneficiary forms on retirement accounts. However, these steps are only the start of what legacy planning for families involves. Below, we’ll share tips for building your family legacy in a way that both serves your present needs and preserves your family’s wealth for generations to come.

    Understand Your Options

    A surprisingly large number of families miss out on some of the most important opportunities to transfer their wealth in a way that’s secure and tax-efficient. One of the most missed key opportunities is account titles. Many spouses choose to title their assets jointly, leading these jointly titled assets to count toward their individual estate tax exemptions when they pass away. Current tax law, however, allows each spouse to own up to the state tax exemption before becoming subject to the tax. By titling assets more strategically, couples can own twice as many assets before having to worry about estate taxes.

    Corporate executives and individuals who own businesses might also overlook certain beneficial wealth-planning tactics. For instance, business owners can pass their companies down tax-efficiently, but doing so requires them to begin succession planning years in advance. Executives who have stock options will want to use these options before they expire as well.

    To make the most of the available opportunities, it’s essential to work with a qualified financial advisor to understand the options available to you. A professional can point out the best strategies for reducing estate taxes while at the same time helping to make sound decisions for the remainder of your life.

    Choose a Non-Family Executor

    In the process of legacy planning for families, assigning the role of executor to the eldest child is a common practice. However, it’s not necessarily the best option. Depending on the size and complexity of the estate, being appointed executor can be a full-time responsibility, one that requires a significant amount of financial expertise. This may become an issue for individuals who have ownership stakes in multiple businesses or those with operations in different states where they’re required to file taxes.

    Some states also require the executor to attend probate court, meaning they may have to travel. Additionally, the executor might need to turn to various real estate agents to help them sell homes. All of this adds up to a lot of time and effort.

    Instead of saddling a family member with these responsibilities, choosing an institution as executor can be the better call. An institutional executor will adhere to all key state laws and protocols while keeping the family updated and helping you avoid the kind of conflicts that are common when a family member is appointed executor.

    Review and Revise Regularly

    Perhaps the most common error in legacy planning for families is failing to update paperwork. It’s crucial to review all financial paperwork to avoid possible complications following any major life event that occurs within the family, including marriage, divorce, birth, death, and new money-making opportunities.

    Even if there haven’t been any major life events, it’s still a good idea to revisit all financial paperwork with your financial advisor every three to five years. They’ll be able to point out any changes in tax laws or your personal financial situation that could impact your assets.

    Opt for Customized Plans

    Every family is different and will face unique challenges, making it vital to have a unique legacy plan that reflects this reality. It’s particularly important for parents to think about what their children will receive, as certain concerns or obstacles may disqualify a particular child from being considered the best recipient of the family assets. For instance, if a child has substance abuse issues or mental health concerns or lacks a sound work ethic, making other arrangements may serve to protect a family’s wealth.

    Trusts are powerful tools in legacy planning for families in these instances. Some trusts will pay out funds to the beneficiary if they earn an income, with select options even paying out dollar-for-dollar amounts. These types of arrangements can help incentivize the beneficiary while preventing them from spending the assets all at once.

    Prepare Your Heirs

    Money is a very personal matter, and it can be difficult to talk about the specifics of your assets and inheritance plans, even with your closest loved ones. Many people choose to withhold this information out of fear that it will curb their loved ones’ motivation to accomplish their goals or spark conflicts between family members. However, open and honest communication is a crucial part of preparing heirs to inherit family assets.

    A beneficiary who isn’t aware of what they’ll inherit  – and is subsequently handed a complex estate, business, foundation, or other investment – likely won’t be ready to manage it. Instead of keeping your heirs in the dark, it can be helpful to give them at least a basic understanding of how to manage various family assets so they don’t make costly mistakes once they come into possession of them.

    With that in mind, take your heirs to meet the family’s financial advisor as part of your legacy planning for families process. Doing so will give them not only a more thorough understanding of the family’s wealth but also someone to call on after the head of the family passes away.

    Another crucial aspect of legacy planning is ensuring that the family’s values are respected. Addressing family history and philanthropic goals while demonstrating how they connect to family wealth helps beneficiaries understand what they should focus on in the future.

    For most families, successful legacy planning for families involves offering clear family objectives. This means providing age-appropriate transparency and creating a positive learning environment so that financial literacy receives intentional focus.

    Legacy Planning for Families: Looking Ahead

    Dealing with end-of-life topics isn’t easy for anyone, which is why too many people avoid these conversations until it’s too late. If you’ve spent your entire life building your wealth, you want to do everything possible to ensure that it’s safe when you’re no longer there to manage it. That’s what legacy planning for families offers — it allows you to provide for your family while preserving your core values and passing them onto the next generation.

    By turning to reliable strategies like choosing a non-family executor, communicating with your beneficiaries, opting for customized plans, understanding all of your options, and regularly reviewing your financial paperwork, you can effectively safeguard your life’s work through the legacy planning for families process.

    Having a trusted and experienced financial advisor on your side to help you navigate the process of legacy planning for families will help you avoid common pitfalls while ensuring that your heirs have the support they need at all times. With the right people on your team, you can safely pass on your values and wealth to future generations without burdening your beneficiaries or leaving your wishes unfulfilled.

    Contact Lane Hipple Wealth Management Group at our Moorestown, NJ office by calling 856-406-5120, emailing info@lanehipple.com, or to schedule a complimentary discovery call, use this link to find a convenient time.

    Illuminated Advisors is the original creator of the content shared herein. I have been granted a license in perpetuity to publish this article on my website’s blog and share its contents on social media platforms. I have no right to distribute the articles, or any other content provided to me, or my Firm, by Illuminated Advisors in a printed or otherwise non-digital format. I am not permitted to use the content provided to me or my firm by Illuminated Advisors in videos, audio publications, or in books of any kind.

  • Lane Hipple’s Annual Donation Drive

    Updated 12/20/23

    THANK YOU so much to our clients for your generosity and kindness! Our collection for families with children from the local school district was very successful. Every item on their wish list was purchased and then some! We have no doubt the children will have a great holiday and their parents will be grateful. Upon delivering to the school yesterday, we were told this really is a Christmas Miracle!

    “There were a lot of tears today when families picked up their amazing gifts.  You and your clients are giving a beautiful holiday to so many children.”

    – Maureen Ioannucci, SVE School Counselor

    “Words can’t express our gratitude. Your company’s generosity is remarkable, it’s surreal the amount of items collected. Please know how much this has made an impact on these families and kids. Just purely beautiful……..we are humbled and grateful for Lane Hipple!”

    Heather Hackl, SVE Principal

    We hope you all have a wonderful holiday and new year.


    Hello friends,

    Let’s come together again and support families in our community this holiday season. We will be collecting items for local families.

    Please do not wrap the gifts. If you buy a specific item, please email melissa@lanehipple.com so we can try to prevent duplicates. This list will be updated weekly. Gift cards will be accepted also.  The requested items are below:

    Girl age 8

    Girl’s size 14/16
    Needs winter coat, hat, gloves, maybe snow pants.
    Loves arts and crafts.

    Boy age 11

    Men’s medium in pants and shirts
    Needs winter coat, hat, gloves, maybe snow pants.
    Would love a fat tire bike (Walmart)

    Girl age 11

    Girl’s size 18 or XXL, women’s size 8 pants and 8 ½ shoes
    Roller skates size 8 ½
    Girl Lego sets

    Boy age 10

    Boys size 14-16 boys, size 8 men’s shoes
    Roller blades men’s size 8
    Pogo stick

    Boy age 8

    Boys size 8/10, size 3 shoes
    Toy remote Bugatti
    iFly drone

    Girl age 13

    Size medium jr/women, jean size 4, shoe size 10
    Would like anything Nike, her favorite color is red, she loves to paint.
    Canvases

    Boy age 6

    Size ⅚, shoe size 12c, loves anything Spiderman.

    Girl age 7

    Size 7 clothing, shoe size 2
    Loves Barbies, any Barbie sets.
    Her dream gift would be the Barbie Malibu Dream Home

    Boy age 2

    Size 3T clothing, shoe size 7T
    Books

    Girl age 7

    Barbie Club Chelsea Camper
    Barbie Chelsea Doll and Unicorn Car
    Gabby’s Dollhouse
    Barbie Doll & Playset, Cook & Grill Restaurant w/ Pizza Oven

    **Same family**

    Boy age 8 – Size 10/12
    Boy age 6 – Size 7/8
    Boy age 3 – Size 4/5
    Boy age 2 – Size 3t

    **The boys love Pokemon, dinosaurs, cars, coloring books, books, and puzzles but said anything would be appreciated.

    Thank you for your generosity through the years. This group has made a difference in lives.

  • Annuities: The Good, the Bad, and the Ugly

    Written by Thomas A. Lane, Jr., ChFC®, CFP®

    I HATE annuities, and you should too” is a popular marketing campaign utilized by a national investment advisory firm to create uncertainty and fear among annuity owners with the hope they will seek out their firm who will then “rescue” them from these “horrific” products.

    Is there any basis or truth to such a comment? I can only assume that the owner of that firm probably does hate annuities. That said, he is making a very broad statement inferring that ALL annuities are bad, which, of course, is not the case. Annuities receive a lot of press, some good, some bad, some ugly, and deservedly so. Annuities are pushed very hard by insurance salesmen and brokers who are paid, often times, excessive commissions, by the insurance companies to peddle their products, without consideration to the needs of the individual or couple to whom they are selling the annuity. The truth of the matter is that not all annuities are bad and not all annuities are great. In my many years of practice as a CFP® professional, I have seen all types of annuities. Some of which have been a nightmare for clients in terms of fees, expenses, and poor performance; and some that have worked extremely well.

    The problem with annuities is that they are often painted with a broad brush by the uninformed media as being “bad”. It is this overwhelming belief by consumers that prevents them from enjoying the benefits the right annuity can offer. As a result, when an annuity is recommended to a client by an experienced advisor who clearly has his client’s best interest at heart, the client will often react defensively and may miss out on a perfectly reasonable solution to their specific financial need. As with any solution to a specific planning need, annuities are not an elixir, and there is no “one size fits all”.

    Types of Annuities:

    Fixed, Variable, Indexed, Deferred, Immediate, Longevity.  What to do these terms have in common? They all describe different types of annuities that are as different as their names imply. Unfortunately for the consumer, it is very difficult to understand the differences between the several types of annuities and, more specifically, how they work before making a determination as to whether or not they have a need for an annuity.

    It is beyond the scope of this article to provide an in-depth description of each product, so I will provide a brief overview of each and will keep the description of each as generic and simple as possible so as to provide the reader with a basic understanding of various types of annuities. 

    Fixed Annuity: The simplest way to describe a fixed annuity is to imagine a tax-deferred CD. This is not to imply that a fixed annuity is a bank product that offers the guarantees associated with FDIC insured products. For example, if you purchase a five-year fixed annuity, a pre-determined fixed rate of interest is credited annually for five years. Interest is not taxable during the deferral period unless withdrawn from the contract.  After five years, the annuity can be 1) “cashed in”, at which time tax would be due on the accrued interest, 2) left with the insurance company for an additional five years, or 3) exchanged (without tax¹) for a new annuity at a different insurance company if more competitive rates are available. Barring cashing in the annuity during the “penalty” period, you can’t “lose” money in this type of annuity².

    Indexed Annuity: Indexed annuities are similar to a fixed-rate annuity, with the exception of how the insurance company credits interest. Rather than a “declared” or fixed rate, the interest credited to the annuity is linked to an index, i.e., the S&P 500, subject to a cap. For example, if the annual cap is set at 5%, and the index earned 9%, the interest credit would be 5% for that contract year. However, if the index is negative for the year, regardless of how steep the decline, there is simply no interest credit. The annuity does not lose value. Indexed annuities also offer additional benefits, for a fee, including enhanced income and death benefits that are beyond the scope of this article.

    Variable Annuity: A variable annuity (VA) is considered a “security” and can only be sold by a registered representative. A VA might be viewed as a tax-deferred mutual fund account, however, with much greater fees.  VAs historically have very high fees, which eat into the returns offered by these contracts. Some VAs offer “enhanced” income or death benefits that can justify paying high fees if real value is created by protecting the annuity owner and/or beneficiaries against market risk. VAs are very complex products and should be considered only when enhanced benefits are offered that are desired by the consumer. It is important to note that money can be lost in a VA, as the funds are invested in sub-accounts/mutual funds that are directly invested in the equity and bond markets.

    Immediate Annuity: A single premium immediate annuity (SPIA) is a contract between an insurance company and the annuitant where, in exchange for a lump-sum of capital, the annuitant receives a guaranteed stream of income, often times payable for life, or joint lives. A SPIA can maximize the amount of income the annuitant can receive from a lump-sum of capital since the payments consist of both principal and interest. A SPIA is appropriate for someone who is concerned about spending down assets during their lifetime. A good financial planner can help a client determine when an immediate annuity is appropriate, and if so, which type of payout structure is optimal to meet their needs.  

    Longevity Annuities: These products are similar to the above-referenced SPIA and were brought to market by the insurance industry as a solution for the client who fears “living too long” and running out of money.  These products, while much more complex in how payments are calculated, provide guaranteed income starting at a pre-determined age, typically as late as ages 80 or 85. The amount of income that can be generated at a pre-determined point in time can be substantial when compared to more traditional options; not due to unreasonably high rates of returns, but for the simple concept of “surviving” to the specific age when the payments commence. Mortality credits are applied to the annuitant who attains a certain age, at which time the payments commence and greatly enhance the amount of income paid. 

    As with any of the aforementioned annuity products, careful thought and consideration must be given before purchasing any type of annuity contract, as they are very complex and there are “the Good, the Bad, and the Ugly” in terms of product choices for every type of annuity. I suggest that you consult with a qualified advisor who understands how annuities work and will act in your best interest when recommending an annuity product to meet your specific needs.

    An excellent resource for information about all types of annuities can be found at http://www.annuityfyi.com. I have often used this site during my career when researching various annuity products for our clients.


    ¹ via a 1035 Exchange, which if done properly allows an annuity owner to “exchange” on annuity for another company’s annuity without paying tax on the accrued interest.

    ² Principal is guaranteed by the issuing life insurance company. Losses may be suffered if the annuity contract is surrendered during the first five years.

  • Social Security Benefits Set to Increase in 2024

    Proper financial planning includes forecasting future Social Security benefits

    In a welcome development for millions of Americans relying on Social Security, the Social Security Administration has recently announced an increase in retirement and disability benefits. Starting in January 2024, recipients will see a meaningful boost, with benefits set to rise by 3.2%, translating to an average increase of more than $50 a month.

    This cost-of-living adjustment (COLA) marks a helpful step in ensuring financial stability for retirees and individuals with disabilities, impacting over 71 million Social Security beneficiaries across the nation.

    Historic Increases

    This COLA increase of 3.2% follows a historic 8.7% surge for 2023 and a 5.9% rise in 2022. These significant adjustments are a testament to the government’s commitment to addressing the rising cost of living, especially for those who depend on Social Security benefits as a primary source of income.

    Impact on Recipients

    For the average recipient, the 3.2% increase means more than just additional dollars in their monthly budget. It signifies improved financial security, providing a cushion against inflation and ensuring that essential needs are met with less strain. This extra income can contribute to covering healthcare expenses, purchasing necessities, and even indulging in a few luxuries, hopefully enhancing the overall quality of life for retirees and disabled individuals.

    Importance of Social Security Forecasting

    Understanding and forecasting Social Security benefits are vital components of financial planning. As demonstrated by the recent COLA adjustments, these benefits are subject to change, and staying informed about these fluctuations is essential for effective financial planning.

    Retirement Planning: For those approaching retirement, accurately estimating Social Security benefits can help plan for additional income streams and bridge the gap between retirement savings and living expenses.

    Budgeting: Knowing the exact amount of the monthly benefit allows individuals to budget effectively, ensuring that essential expenses are covered without relying solely on these funds.

    Long-term Financial Security: Forecasting Social Security benefits aids in long-term financial planning, enabling individuals to make informed decisions about investments, healthcare costs, and potential legacy planning.

    Disability and Survivor Benefits: For those receiving disability benefits, understanding the potential adjustments in benefits can help plan for healthcare and support services, ensuring a higher quality of life despite the challenges faced.

    The Elephant in the Room

    Relying solely on Social Security as a primary source of income during retirement, however, is a very risky proposition, and any good financial advisor will caution against this for several reasons.

    Firstly, the future of Social Security benefits is uncertain. While the government has taken steps to address immediate concerns, the program is projected to face financial challenges due to the aging population and a declining worker-to-beneficiary ratio. With a growing number of retirees drawing from the system and a shrinking workforce contributing, there are concerns about the long-term sustainability of Social Security in its current form.

    Secondly, Social Security benefits alone might not be sufficient to maintain the standard of living many individuals desire during retirement. The benefits are designed to replace only a portion of pre-retirement income, and for many people, especially those with higher incomes before retirement, this replacement rate might not be enough to cover essential living expenses, healthcare costs, and other financial obligations. Depending solely on these benefits could lead to financial hardship, forcing retirees to compromise on their lifestyle or struggle with unexpected expenses.

    Additionally, the cost of living adjustments made to Social Security benefits might not keep up with the actual rise in living expenses, particularly healthcare and housing costs, which tend to increase at a faster rate than the general inflation rate. This discrepancy can erode the purchasing power of Social Security benefits over time, making it challenging for retirees to keep up with rising costs.

    Planning Matters

    The increase in Social Security benefits by 3.2%, coupled with previous historic adjustments, is a significant stride towards supporting the financial well-being of retirees and disabled individuals. Proper financial planning, including forecasting Social Security benefits, empowers individuals to navigate their financial futures with confidence, ensuring a comfortable and secure retirement.

    However, while Social Security benefits can provide crucial support, they should be viewed as a supplemental income rather than the sole foundation of a retirement plan. Diversifying income sources, such as personal savings, investments, and employer-sponsored retirement accounts, is essential for building a robust financial cushion that can withstand the uncertainties of the future and ensure a comfortable retirement.

    Accordingly, as these benefits evolve, staying informed and seeking guidance from financial experts becomes paramount, allowing Americans to make the most out of their hard-earned benefits and enjoy their golden years with peace of mind.


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