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Listen to the podcast HERE The old life insurance question! Do I need it? The answer is most likely yes. But what kind of life insurance do I need? There are basically two types of life insurance: whole (also called permanent) and term. There is a different purpose between the two. The type you need depends on your goals with life insurance. First, let's talk about whole life insurance. Whole life insurance is a policy written on a person that lasts until their death and then pays out to a designated beneficiary. Whole life insurance policies can be taken out on a husband and wife together, called a second to die policy, and these policies do not pay out until the second person dies. Premiums for a whole life insurance policy are substantially higher than term because there is the definite payout at death. As premiums are paid, the cash surrender value of the policy increases. The cash surrender value is what you would receive if you chose to surrender or terminate the policy early. This cash surrender value is substantially less than the policy amount, the amount that would be paid to the beneficiary upon death, and the policy ends when that money is taken out. However, you can usually borrow against the cash surrender value without terminating the policy but it lowers the amount paid out at death. Taking out the cash surrender value and terminating the policy is not the goal of a whole life policy. It should not be viewed as a retirement type account. Whole life insurance is not for everyone. It is generally used as an estate planning tool for people with a high net worth or a lot of assets that will be passed on. For example, if someone dies and their estate holds a lot of assets but not a lot of cash, they may have a whole life insurance policy so that the beneficiary has cash to pay any estate taxes. Let's say William has one child, Sally, and William's wife has already passed away. William owns a lot of real estate. William also has a whole life insurance policy of $10,000,000 and Sally is the beneficiary. William owns so much real estate that when he dies, $15,000,000 will be subjected to estate tax. Assuming an estate tax rate of 40%, that would be $6,000,000 due in taxes. We've all heard sad stories about children having to sell the family farm because they needed money to pay the estate taxes. Well, in this example, Sally has $10,000,000 from the whole life insurance policy to pay the $6,000,000 in taxes and still has another $4,000,000 to maintain the properties and pay the annual property taxes. Since the life insurance proceeds are not taxable, it is a great way to get cash to your children (or designated beneficiary) without that amount of money being part of the estate and subject to estate tax. As you can see, not everyone falls into William's category. Whole life insurance is not for everyone but it can be a great estate planning tool if you have a lot of assets or a large estate. Term life insurance works in a different way. Term life insurance is exactly as it's name implies, insurance coverage for a specified term. Term life insurance does not have a guaranteed death benefit. Term life insurance only pays out if the person dies during that specified term. For example, if you have a $1,000,000 term life insurance policy up to age 55 and you die at age 52 then the $1,000,000 benefit will be paid. On the other hand, when you turn 56 the policy will terminate. The main purpose for term life insurance is to financially provide for your family in the event of your premature death. Let's say Maggie and Bill are married with two kids. Both Maggie and Bill work. They each make $100,000 per year. Their budget and their lifestyle is based around income of $200,000 per year. However, if Bill unexpectedly died then there would only be $100,000 of income for Maggie and the two kids to live on. Maggie would not be able to maintain her current lifestyle, and probably her current home, with half the amount of income to live off of. However, if Bill had a term life insurance policy then it would give Maggie the peace of mind of not having to worry about finances as she mourns the loss of her husband and supporting her family going forward. The general rule of thumb is to have term life insurance that is at least ten times your annual income. In our prior example, if Bill had a $1,000,000 term life insurance policy then Maggie would receive that at the time of his death. You may be thinking, that's great she would have 10 years worth of income BUT if Maggie invests that money at say 7% and withdraws $100,000 per year then it will last about 15 years! A premature death is difficult enough to deal with, the last thing needed is financial concerns. It is usually a good idea to obtain term life insurance when you get married but definitely once you have kids. And have a policy on both spouses. Even if one spouse stays home with the kids and technically doesn't have income, if that spouse were to die then the surviving spouse would then have to pay for childcare, etc. You want the term life insurance term to go until a time that you are debt free and have enough in savings to live off of. Term life insurance is relatively cheap. If a 30 year old husband and wife each wanted a $1,000,000 policy with a 20 year term, meaning it terminates when they are 50, the average annual premium would be about $450 for the husband and $400 for the wife. Age, gender, health, etc do affect your rates. While one hopes to never need the term life insurance, it is definitely peace of mind in the event of a premature death. On the other hand, whole life insurance premiums are much more expensive because they have the guaranteed death benefit. The premiums for that $1,000,000 would be more like $4,500-$5,000 a year and would continue until death. Remember, choosing term or whole depends on your goals. Term is a great option for peace of mind for families and whole is a great estate planning tool. Information contained in this post is for educational purposes only and is not considered financial advice.

This bowl packs lots of delicious fresh flavor! The recipe makes 2-4 servings depending on how hungry you are. The lime cilantro flavored rice is key so you will want to try and find that! I purchased the lime salt at a local gourmet shop but you can substitute kosher salt. Ingredients: 1 pound shrimp, peeled and deveined 1/2 tbsp lime salt 1/2 tbsp cilantro 1/4 cup fresh lime juice (about 3 limes) 1/4 cup olive oil 15 ounce can black beans, drained 8.5 ounce packet Seeds of Change Lime Cilantro flavor rice 3 roma tomatoes, diced 1 jalapeno, diced 1/4 cup diced red onion 1/2 tbsp cilantro 1 avocado, chopped 1/2 cup shredded sharp cheddar To Make: Preheat oven to 400 degrees. Grease a rimmed baking sheet. In a bowl, combine the lime juice and olive oil and whisk together. Then add the shrimp. Stir well. Add the shrimp to the baking sheet and sprinkle the lime salt and 1/2 tbsp cilantro over the shrimp. Bake 10-12 minutes. Warm black beans over low heat. Cook the rice packet per instructions. Combine the tomatoes, jalapeño, red onion, and 1/2 tbsp cilantro. Stir well. To serve: split the rice amongst 2-4 bowls, top with the black beans, then the shrimp (pour extra juice on top), then tomato mixture, then cheese and avocado. Serve immediately

To listen to the podcast click HERE April 15 is a date that a lot of people don't associate with positive thoughts and happiness. Nevertheless it is something we all must deal with. Death and taxes, right? On a good note, the deadline is actually April 18 this year since the 15th falls on a Saturday. But what happens if you just don't have everything organized and prepared to file your taxes on time? Well, there is some good news and some bad news. First, the good news. The good news is that you can do an extension. It is a simple form, Form 4868 which is called the Application for Automatic Extension of Time to File. It can be filed electronically or via paper. This extension will get you an additional 6 months to file your return! October 15 is usually the deadline date for extensions but that date can slightly differ if it falls on a weekend. You can file any time within that 6 month extension. Sounds pretty simple, right? You might be asking yourself, why don't I extend every year that sounds awesome! Well, that is where the bad news comes in. Even though you can fairly easily get an extension of time to file your taxes, you don't get an extension of time to pay! So, when you request your extension you have to go ahead and pay as well. The extension form has a line for your Estimate of Total Tax Liability, a line for Payments made, such as withholding or estimated payments made, and then a line for the Balance Due. The Balance Due is the amount you will go ahead and pay with your extension. Oftentimes, people need to extend because they don't have everything together to calculate how much tax they owe. This is where knowing your estimate at the time of extension can be difficult. Some people like to estimate high and others estimate low knowing that they are still most likely going to owe more. This is where some more bad news comes into play. If your estimate is low and the amount you pay with your extension is not enough to cover your total tax liability when you do file, then you will have penalties and interest on top of the tax owed. Interest is calculated beginning on the original deadline date (usually April 15). The interest amount is figured on the amount of tax that was owed by the deadline but not paid. For example, if you had paid $10,000 by April 15 and actually owed $15,000 then your interest would be calculated on the $5,000 shortage from April 15 until the date you filed. You may also be subjected to a Late Payment Penalty. This applies if you did not pay at least 90% of the actual tax due and didn't pay the balance with the extension. In the prior example, the $10,000 paid was not at least 90% of the $15,000 owed so a Late Payment Penalty would apply in that situation. However, if you had paid $9,500 by April 15 and actually owed $10,000 and paid the $500 balance when you filed, then you would not be subjected to the Late Payment Penalty because you had paid 95% of the actual owed. What happens if you still don't file by the extension date of October 15? This is where the Late Filing Penalty comes into play. This penalty is 5% of the tax amount due for every month the return is late and carries a max penalty amount of 25% of the tax amount due. So, you want to make sure to file by your extension date! Filing an extension can be a norm for people with complex returns or people waiting on information from business returns before they can file. Getting the estimate right can be tricky when you are waiting on substantial financial information on April 15. That is where deciding to estimate high and risk over-paying or estimate as accurately as you can (and hope that amount is accurate in the end or at least 90% of what is owed) becomes a personal decision. All in all, extending your taxes is quite simple, especially if you need the extra time to get your paperwork together. Just don't forget to pay that estimate with your extension! Taxes are bad enough, nobody wants penalties and interest too! NOTE: This information is for federal tax purposes. States will vary. Information contained in this post is for educational purposes only and is not considered financial advice.

To listen to the podcast, click HERE This week we are talking about giving the gift of money! Last week we talked about putting your child on the payroll if you have your own business and how it can save you money in taxes and how it can go to your child tax free. If you missed that episode and you have your own business, you will definitely want to go give it a read or a listen HERE! What if you don’t have your own business or your child isn’t ready to work in your business or you just want to transfer money to them? That is where the Annual Gift Tax Exclusion comes in! But before we talk about that, there is one other thing you need to know about and that is the Estate and Gift Tax Exemption, also called the Lifetime Gift Exclusion. The Estate and Gift Tax Exemption is the amount you can transfer during your life or at death without incurring estate or gift tax. For 2023, that amount is $12.92 million per person! That amount is transferable between spouses so a married couple in essence would have $25.84 million in 2023! While most people do not have assets or an estate that would exceed this number, it’s important to note that, unless Congress makes it permanent, that current large amount of $12.92 million and $25.84 million for a married couple is only temporary and is set to revert back to about $6 million beginning in 2026. $6 million is a number that would affect a lot more people’s estates and assets. There has even been political discussion of lowering it even more. That being said, it could greatly affect a lot of people, especially if they don’t plan ahead. Now, that brings us back to the Annual Gift Tax Exclusion. So how does the Annual Gift Tax Exclusion fit into this? The Annual Gift Tax Exclusion is an amount you can gift each year that won’t affect that Estate and Gift Tax Exemption. For 2023, that amount is $17,000 per person per gift. So, a married couple can give $34,000 per recipient. That gift can go to anyone, not just your children, and to as many recipients as you would like. So, in 2023, you can gift $17,000 to as many people as you’d like and there would be no gift tax. However, if you gifted more than $17,000 then the excess would count against your Estate and Gift Tax Exemption. For example, if I gifted $27,000 to a friend this year, then the $10,000 excess would reduce my Estate and Gift Tax Exemption amount. Keep in mind, just because tax isn’t owed at the time of the gift doesn’t mean you don’t need to file a Gift Tax Return though! Why is this Annual Gift Tax Exclusion important? First and foremost, there is the possibility (and likelihood) that the Lifetime Gift Exclusion, that Estate and Gift Tax Exemption amount, could be a much smaller number when you pass away. Considering the gift and estate tax can be as high as 40%, you want to minimize the amount of estate or gift tax you would have to pay. That is why planning at a young age is so important. Waiting until you are retired is often too late for effective planning. One thing that is interesting to note is that when gift tax is owed, it is paid by the giver not the recipient. And the estate tax is paid by the estate. Let’s look at an example. If you are currently 40 and your total estate is worth $2 million then you are probably thinking that this doesn’t really affect you yet but you need to be thinking in the long term. Say you live to be 80. At 80, maybe your estate has grown to $10 million and let’s say the Lifetime Exclusion amount is $6 million at that time. Then $4 million of your estate would be subject to being taxed. By using the Annual Gift Tax Exclusion, you are able to get money out of your estate during your lifetime without it being subject to taxes because it doesn’t count towards your Lifetime Exclusion number at death. You may now be asking, what can I gift? Is it only cash or can I gift other assets? You can gift cash or other assets such as jewelry or real estate. Although real estate is rarely going to be under $17,000. However, it is important to note what assets are ideal to gift and what assets are ideal to wait and leave to loved ones when you pass. The big deciding factor in what to gift now and what to gift later comes down to basis. What do I mean by basis? By basis, I mean the amount the asset is valued at for transactional, and tax, purposes. For the Annual Gift Tax Exclusion, assets transfer at cost basis thus making cash a very ideal asset to gift. What cost basis means is the actual cost paid for the asset. If you bought a diamond ring for $12,000 and gifted it then the recipient would also have a basis of $12,0000. If you bought a piece of land 30 years ago for $15,000 and it is now worth $150,000 and you gifted it then the recipient would also have a basis of $15,000. This is where taxes would come back in. If that recipient sold the gifted land the day after you gave it to them for the market value of $150,000 then they would pay taxes on the gain of $135,000 (the $150,000 market value it was sold for less the $15,000 cost basis of the gift). On the flip side, if you waited to give that piece of land at your death then the recipient would get what is called a step up in basis, meaning that even though you paid $15,000 for that land, since it is now worth $150,000 then the recipient has a basis of $150,000 when they receive it after your death. If the recipient sold that land the next day for $150,000 then there would be no gain and no tax due. You can see why there is definitely some planning and strategy that needs to go into what assets you gift now and what you leave at death. The more assets you have, the better you need to plan. Maybe you want to gift your child some cash now but you are worried they aren’t responsible enough to save it or invest it as wisely as you would intend for them too. You can also create a trust and gift the money into that trust. If you go this route, I would highly recommend consulting an attorney that specializes in this area but this can be a great way to go if you have younger children or ones that are slow to mature. LOL. While it can be a little morbid to think about planning for “death and taxes” when you are younger, it can make a big difference in maximizing the value of your hard work and your assets and minimizing taxes. Since this has been a bit technical, let’s do a recap: Point #1: The Estate and Gift Tax Exemption, also called the Lifetime Exemption, is the amount of money and assets you gift during your lifetime and/ or at death without tax ramifications. While that number is $12.92 million per person in 2023, that number is currently set to decrease significantly. That means you want to get money and assets out of your estate before death. Point #2: The Annual Gift Tax Exclusion allows you to gift money and assets each year while you are living to reduce your total estate. As long as you don’t gift more than the annual exclusion amount, which is $17,000 in 2023, then your Lifetime Exclusion won’t be affected. It is important to note that the Annual Gift Tax Exclusion amount has historically increased each year and will most likely continue to do so. Point #3: Planning which assets to gift while alive and which ones to pass along at death can make a big difference in the recipient’s basis in that asset. Assets that have increased in value versus their original cost are the ones you will most likely want to gift at death so the recipient gets that stepped up basis and minimizes taxable gains on the sale of the asset. You work hard and want to maximize how much you are able to give your children and loved ones rather than Uncle Sam. Making a long term plan is ideal to achieve that goal! NOTE: This information is for federal tax purposes. States will vary. Information contained in this post is for educational purposes only and is not considered financial advice.

Listen to the podcast HERE If you have your own business, putting your child on the payroll may be a good idea. The amount you pay your child is a tax deductible expense for your business thus lowering the taxable income of your business. Plus, the income is tax free to your child as long as it stays under the standard deduction amount. That amount is $13,850 in 2023. Depending on which tax bracket you fall into, if you pay your child $13,850 you could save over $5,000 in taxes. Your child can then put that money into savings or a 529 plan to pay for college. So, not only are you lowering your taxable income and thus your tax liability, you are also helping your child do things like avoid student loan debt or start their savings for their long term investment goals. Getting ahead young is key to achieving financial goals and when you can help your child in this way while also lowering your tax liability, that is a WIN WIN in my book! So what types of jobs can my child do? This is where you want to make sure you are following labor laws and paying your child a reasonable rate. And of course, have plenty of documentation to substantiate the work your child did. If you were to be audited and you don't have the proof as to the work your child did, then the IRS will disallow the deduction. The types of jobs that are good to have your child do include things like cleaning the office, filing, basic paperwork, and computer entry. You can't have your minor child doing something dangerous such as operating heavy machinery. You also don't want to pay your child an excessive rate for the work they are doing such as $30 an hour for filing paperwork. There isn't a minimum age requirement for putting your child on the payroll but you want to make sure the job is appropriate for their age. If you are a photographer then you could justify using your 3 year old as a model for your sample portfolio. However, if you own a plumbing business then a position for a 3 year old would be difficult to justify. Bottom line is ask yourself would the average person think this is a reasonable job for a child their age and is the pay reasonable for the work being performed? You may be asking but what about payroll taxes? Well, that depends on what type of entity structure your business is. If your business is a sole proprietorship, LLC, or partnership then you don't have to worry about social security, medicare, or FUTA taxes! However, depending on what state you are in, you may need to include your child on your workers comp policy. Plus, you don't have to issue a W2 to your child (since there are no withholdings). If your child does plan to contribute to a Roth IRA then you will want to consider issuing a W2 to support the earned income but otherwise you don't need to issue a W2. If you do have an S or C Corporation then the withholding piece isn't quite as easy but there is still a way you can do this! If your structure is an S or C corporation then you would have to do the FICA piece. However, what you can do instead is to pay a separate sole proprietor or single member LLC a "management fee" and then pay your child out of that entity. The management fee is tax deductible on your corporation and avoids the FICA (payroll tax) issue. Then you pay your child out of the sole proprietor or LLC entity and avoid having to do withholding and issue a W2. For example, my son is 16 and he does work for my business. He does mostly computer work. I am not a tech-y person and he assists with website and digital editing. It is a reasonable role for his age and I can substantiate the work he does. He is legitimately doing work that I would have to pay someone else to assist me with so it is a WIN WIN when we are able to work together, I get a tax deductible expense for my business, and he receives income that he uses to put gas in his car while also starting to save and invest for his future! A job in high school can be a great experience for kids! They can learn responsibility, expose them selves to new things, and earn some money in the process. The problem is, scheduling can be hard especially if your child plays sports. When you are able to put your child to work in your own business, you have the ability to schedule their work in a way that still allows them to prioritize school and sports. Maybe your child only works in the summer for your business. When I was in high school, I worked in the summer at our family business doing filing and stuff like that and then in the evenings I worked at a restaurant. It kept me really busy but I learned a lot and I was able to save money. Even if your business is a side hustle, consider hiring your child if there is work they can do for you. They can learn so much if you are in the start up phase and they help you grow. It just may spark their own entrepreneurial spirit. In an age where teens are glued to their smart phones, exposing them to other avenues of life can give them a different perspective on their own life and what they want to do with it. The world is a very different place than it was when I was a teen. Giving your child learning experiences can help them gain confidence. Summer is right around the corner so if you have a small business and your child is ready to work and earn some money, this just may be the answer you are looking for! NOTE: This information is for federal tax purposes. States will vary. Information contained in this post is for educational purposes only and it not considered financial advice.

This easy pork tenderloin tastes like a fancy meal but is simple enough for a busy weeknight. It pairs well with a sweet potato and green beans. For the seasoning, I use the McCormick brand that you can easily find at most grocery stores. There are also a few other flavors that would work well on this recipe. In case you have trouble finding them, I have linked them HERE as well. If you prefer your tenderloin well done, alter the baking to about 25 minutes, or 155 degrees.

After the passing of our 3 year old boy, Port, from osteosarcoma in October 2021, we were absolutely heartbroken. We weren't sure when we would be ready to welcome another boy into our home. But then this sweet boy was born on our anniversary and we knew that was meant to be. My husband and son made the very long trek to Charleston and back in one day to pick him up. He fit right in immediately! We are fortunate that he is naturally a little bit lazy and has great big sisters to show him the ropes! When he was still a little guy, whenever he went missing, which is usually not a good thing with a lab puppy, he was always cooling off on the tile floor in the bathroom. He is the sweetest boy and he makes our hearts so happy. As with most labs, he has to have something in his mouth all the time. He has grown a lot and is almost 100 pounds so he thinks a king size pillow is a dog toy and stuff like that. Another cute thing he insists on doing is walking up behind you and going between your legs. It gets quite interesting when I have a long dress on. I could go on and on about all the cute things he does. I can't believe he is already 1! The year has flown by but he has brought so much joy to us and helped our hearts heal in so many ways. I sure do love my fur babies and couldn't imagine them not being a part of our lives!

Listen to the podcast HERE It's tax filing season and that means the ads have started for businesses wanting people to spend their tax refunds buying something they probably don't need or weren't planning on buying. These ads make tax refunds sound like they are free or found money. And many people view their tax refund in the same light. Lots of people get their taxes filed as quickly as they can so they can hurry up and see how much their refund is for and how quickly they can get it. The truth is, it's called your tax refund because it is exactly that, a refund. It's a refund of your money that you have basically lent the government, interest free, until you let the government know how much of that money is yours and not theirs. And then they will send it back to you, on their schedule. You would be hard pressed to find a bank that would lend you money for a year, interest free, but that is exactly what a large portion of the population is doing: they are lending the government their money interest fee. If you have a job that withholds taxes from your paycheck you are more likely to be someone that gets a refund. If you are self-employed and pay estimated taxes you may actually owe taxes each year and not get a refund, depending on the accuracy of your estimated payments. When you begin a job you fill out form W4 with your employer and that information instructs your employer how much tax to withhold from your check. Your employer then remits that money to the IRS (and your state) on your behalf. Then, at the end of the year you receive your W2 and it tells you how much tax was withheld and remitted on your behalf for that year. The accuracy of your W4 will drive the accuracy of the tax withheld. If you have been at a job for awhile or had a major change in your circumstances, you may need to do an updated W4. In the past, people would claim allowances on their W4 to reduce the amount of tax withheld from each paycheck but in 2020 a new W4 form was introduced that changed that. The new form allows you to adjust your withholding to take out more or less depending on such things as your number of dependents, other jobs you may have, or itemized deductions you may be eligible for. Getting that W4 as accurate as possible will get your withholding most in line with what your actual tax liability is. The goal is to have enough withheld that you don't owe tax that could also be subjected to penalties and interest but also not to have a large overage withheld that results in a big refund. I generally like to think of a refund in excess of $500 as big enough to justify making changes on your W4 for going forward. If you are self employed then you don't have taxes withheld and remitted on your behalf but you do have to pay estimated taxes throughout the year. These estimates can change as your income changes. The general rule of thumb with estimated taxes is to make the safe harbor payment amount which is 100% or 110% (depending on how much income you make) of your prior year's tax. Then, if your income is growing in the current year you can increase your estimates so that you don't have a big tax bill at the end of the year. We will talk further about taxes for the self employed in another episode. Now, back to the refunds. As you may recall from the episode about standard and itemized deductions, your tax liability is calculated from your taxable income and that is your total income less either the standard or itemized deduction. From that taxable income figure at the bottom of page 1 of your 1040, you move on to the Taxes and Credits section of your 1040 to calculate your tax due. Your rate depends on the amount of income you make. If you are eligible for credits like the Child Tax Credit, you would deduct that from the calculated tax due to find your net total tax due. The next section of form 1040, called the Payments section, is where withholdings (as well as estimated taxes paid) are listed. These are the amounts that you have already paid towards that net total tax due. If your withholdings are more than the total tax due then you have a refund, if they are less then you owe the difference. The Payments section is also where refundable credits are claimed. Non-refundable credits are claimed in the Taxes and Credits section. The credits can be confusing. The first thing to know about credits is that they reduce the actual tax due. Remember the deductions only reduce your taxable income. The second thing to know about credits is that some are refundable and some are not. The non-refundable credits are listed in the Taxes and Credits section because they can only reduce your net total tax due to $0. Even if subtracting the credit from your calculated tax due results in a number lower than $0, you stop there and simply have $0 net total tax due. You don't get a refund for that excess. However, the credits listed in the Payments section are what are called refundable credits. These credits can decrease your tax liability below $0 and that excess is refunded. Some argue that these refundable credits are found money but again if the W4 was tweaked to be more accurate then the refundable credit would still most likely not create a refund solely based on the credit. Let's walk through some examples. We will start with a very basic example. Betty is single and her calculated tax due is $10,000. Her net total tax due is also $10,000 because she doesn't have any adjustments in the Tax and Credits section. Betty had $12,000 withheld by her employer and is not eligible for any refundable credits. Betty's net total tax due of $10,000 less the $12,000 withheld creates a refund of $2,000. Now let's make Betty's scenario a little more complex. Betty is single and has one 8 year old child. Betty's calculated tax due is $10,000. Betty reduces that amount by the $3,000 Child Tax Credit she is eligible for. Her net total tax due is now $7,000. Betty then moves on to the Payments section of her tax return. Because Betty's W4 took her child into account, her withholding was only $6,000. Betty is also eligible for the Earned Income Credit (a refundable credit) and for ease of math we will say that amount is $4,000. So Betty has a net total tax due of $7,000 less the $6,000 that was withheld and then less the $4,000 Earned Income Credit. Her refund is $3,000. In the first example, Betty's net total tax due of $10,000 was also how much she ultimately owed. In the second example, Betty's net total tax due of $7,000 was reduced further down to $3,000 because of the Earned Income Credit. In both examples though, Betty is getting a large refund. Making adjustments to her W4 with her employer could keep that money in her pocket (and her monthly budget) rather than getting a large lump sum back once a year. People are much more likely to use their money with purpose if it is in their monthly budget rather than being in the form of a large refund once a year. The thing to remember is that if you don't make adjustments to your withholding and you continue to get a refund then have a plan for that refund every year. That plan could be putting the full amount towards some debt pay down such as credit cards or student loans, applying it to your child's 529 plan, or adding it to your own retirement savings. All in all, that tax refund is your money so don't blow it on a whim! Be intentional with it and assign that money a purpose whether your having less withheld and putting it back into your monthly budget or still taking that big refund at the end of the year.

Today my husband and I celebrate 19 years of marriage! It truly is amazing how fast time goes by! It has been a blur! In all reality we should be celebrating 21 years on April 27 but we had to cancel our first wedding date due to lack of support from some family. The thing is, it has been instances like enduring that cancellation that have only made us stronger. We only became closer and more of a rock to each other when that happened. We ultimately decided that we would get married even though we did not have the blessing of some family. It is safe to say we have proved the naysayers wrong about our relationship. We put our marriage and our family first. We nurture our relationship daily. Our love and the strength of our relationship have only grown over the years. I am blessed to spend my life with such a wonderful man. He is not only a wonderful husband but the most amazing dad I have ever known. He is family first all the time. Yesterday, we went to early church and then went out to brunch together. We had planned to go to Beaufort Grocery. It is a special place to us and holds lots of wonderful memories. However, they were closed for their annual vacation so we decided to go to 34 North at the new Beaufort Hotel. It was warm enough to sit outside and we enjoyed the beautiful weather and each other's company with a lot of laughs! I tried to just soak it all in. How blessed I am and how wonderful life is. We have not had an easy path in our marriage. We have been through times that would break a lot of people. Just being able to get married was a feat in itself! There have been some times that I wouldn't have made it through without him by my side. My rock. I wish time would slow down but I am looking forward to a lifetime of happiness!

Listen to the podcast HERE Have you heard people mention the FIRE movement but you aren't sure what it is? It stands for Financial Independence, Retire Early and was coined in the 1990's book "Your Money Your Life." It has gained traction in the last decade, especially with millennials. The basics are a very frugal lifestyle and extreme savings. It is a thought process of anti-consumerism; the complete opposite of the "keeping up with the Jones'" mindset. It's definitely not for everyone. It takes a great amount of discipline, sacrifices, and lifestyle adjustment but it also takes enough income to make the concept work, usually 6 figures. You also need a lack of debt like credit cards and student loan payments that eat up a large percentage of your budget. Followers of the movement evaluate every expense in terms of the number of work hours it takes to pay for it and they save 50-75% of their income. The goal is to "retire" in their 40's or maybe even their 30's. The old school train of thought for retirement was saving over a lifetime career and retiring somewhere around 65. But a lot of people ask the question "how many good years will I have to enjoy life and what I love?" Which leads to the next question, why does retirement have to be defined by an age? After all, most retirement accounts don't let you access your money until you reach a certain age (unless you pay penalties). Why isn't retirement defined by a number? A number unique to everyone. A number that generates the amount of income YOU need to live the lifestyle you want to live and spend your days doing what you WANT to do! The thought process is financial independence and a life of flexibility. Retire early doesn't mean you have to completely stop working but the financial independence allows you to do something part time or that pays less but you really enjoy and you still have the income you need to cover your expenses. If you plan to live an elaborate lifestyle in retirement then you will most likely need to work longer, save more, or a combination of both. Followers of the FIRE movement greatly focus on two rules: the rule of 25 and the 4% rule. The rule of 25 states that you want your savings to be at least 25 times your annual expenses. If your annual expenses are $80,000 then you need $2,000,000 in savings (plus a standard emergency fund of 6-12 months expenses). The $2,000,000 is your FIRE number. Once you have attained that number then the 4% rule applies. This rule (from the Trinity study) states that if you withdraw 4% a year (adjusted for inflation) then you will have enough to live off of long term. One thing to note here, if your investment account reaches that $2,000,000 number so your 4% is the needed $80,000 but the market crashes and declines 20% for example, you now have $1,600,000 and a 4% withdrawal is only $64,000. For this to work, you have to have assets that can generate enough income to cover your expenses. These rules have the savings and investments channeled on paper assets. A mix of tax advantaged retirement accounts and regular brokerage accounts. Remember, the retirement accounts can't be accessed until retirement age so if you are retiring early you will need an account that can be accessed at any age. FIRE followers max out their tax advantaged accounts first. If you have a 401k at your job then you want to max it out, especially if your employer has an employee match because that is just free money. The 2023 max contribution to your 401k is $22,500. 2023 max contributions for both Roth and traditional IRA's is $6500 and $15,500 for a SIMPLE. Remember that these contributions may be tax deductible so that's just another win for maxing these accounts out! Once these accounts are maxed out then you save in a traditional brokerage account that is diversified to account for your risk tolerance. Let's look at an example of how many years you need to get to your number based on income and expenses. If your income is $70,000 and your expenses are $60,000 and you are saving $10,000 per year then you will need 44.3 years to retire. Ouch! But what if you pick up a side hustle and increase that income to $85,000 and you cut out all expenses except necessities and get them down to $50,000 so you are saving $35,000 then you are at 20.6 years. If you are 25 when you start this then retiring in your mid 40's is possible. The FIRE movement is heavily focused on paper assets such as stocks, bonds, mutual funds, and ETFs. They are relatively easy to purchase, especially on a monthly basis. However, with the volatility in the markets recently there are FIRE followers turning to rental real estate to generate their retire early income. It can be a great way to achieve the goal. If you max out the retirement accounts like the 401k and IRA for the later years but focus on the rental real estate for the immediate cash flow needs, you have a good chance of achieving "retire early" even earlier than if you followed the rule of 25. You can begin buying the properties when you have the savings to fund a down payment, mortgage the balance, and the rental income pays down the mortgage while also generating some monthly cash flow. Plus, rental properties can create some great tax advantages since taxes are paid on the net rental income after expenses and depreciation and rental income is not subjected to self employment tax. If you are looking to retire early or just generate additional income and cash flow, rental real estate can be a great option. Plus, real estate usually appreciates in value so that is another win. If you are thinking, I can embrace some of this but maybe not all of it, there are some different variations of the FIRE movement. Lean: this is the person living an almost extreme minimalist and frugal lifestyle and completely focused on how much they can save. This person is not going "to live a little" so to speak. Fat: this is the person that isn't as focused on retiring early but is focused on saving more so that they can "live it up" in retirement. This person needs $200,000 a year versus the $50,000 of the Lean person. Barista: this person is focused on working less but not necessarily completely escaping work. They want to live off the "retirement money" and concentrate on more meaningful work that only creates a limited income. Your desired lifestyle in retirement, regardless of your retirement age, heavily dictates the amount of savings you need and the length of time it will take to achieve financial independence. The FIRE movement thought process is not for everyone and like most things, there are risks associated with it such as: having to pay for health insurance when you leave a job that has provided it. This could be a big expense making that annual expense number increase drastically. Medicare doesn't kick in until 65 so you may have decades to cover. as mentioned above, your investments may not perform as planned and the market could crash and take years to recover. while you are in the savings period, you have to earn enough to cover your basic needs and still save 50% or more. If you have a family, child care, and other large expenses, saving 50% may not be feasible. also as mentioned above, if your budget is full of debt payments like credit cards and student loans, saving 50% may not be possible even if the rest of your budget is strictly addressed. All in all, followers of the FIRE movement are people that believe laboring for decades in a job you don't enjoy is not a life well lived. They believe we were not meant to spend 8 hours in an office each day and 2 hours in our car commuting. They are wanting to live a simple life, extravagance is not their style.

The other day I was scrolling Instagram and stopped at a post that was talking about why has our society normalized the encouragement of a victim to reconcile with their abuser. It stopped me in my tracks and it has made me do a lot of thinking. The page is focused on emotional and mental abuse so was geared towards victims of that type of abuse. One of the first things I thought of, besides how true this post was, was that you don't see victims of physical or sexual abuse being encouraged to reconcile with their abusers. So why do people basically shame the victims of emotional and mental abuse? When the victim of such abuse finally gets up the courage to leave the relationship, the last thing they need is to be shamed for their strength. Physical wounds are often easy to see so victims typically get support and help quicker than victims of abuse that isn't as visible. Plus, the abusers that invoke emotional and mental abuse usually have a perfect public facade to discount their victim's abuse claims. Their facade is so believable that people often side with the abuser thus leaving the victim more alone with a lower sense of self worth and value. Then, the victim's closest friends and family shame them for not reconciling! It's no wonder that healing from emotional and mental abuse is a traumatic path. The courage to leave is actually one of the smallest steps because society has the out of sight out of mind approach with supporting victims of abuse that they can not see. Victims often receive support from only a handful of people while being ostracized by many and shamed by others. Meanwhile, the abuser continues their fake perfect facade and actually plays the victim. They pretend the relationship ended because of something the actual victim did to them, often going to great lengths to prevent the abuser from being heard. If you know someone in this situation, even if you don't know the depth of the abuse, stop encouraging them to reconcile and instead support them in their healing. Ask questions and learn the depth of what they endured. Be an advocate for them, especially if their abuser has created a smear campaign against them. Treat them the same way you would if they told you they were being physically or sexually abused. Extreme emotional and mental abuse is not just a disagreement or a spat. For many it has been a lifetime of manipulation, control, fear, degradation, and gaslighting. All while the abuser was seen by others as a wonderful person. The behavior of the abuser is intentional and calculated and those that believe the abuser are just being played as a fool by the abuser. If you are looking for social media pages that support recovery from emotional and mental abuse, these are a few of my favorite on Instagram: @laurakconnell @escapingnarcissticmothers @narcissisticparents @novas_narcissitabuse_recovery @silenceofthenarcs

Who doesn't love cinnamon rolls? These are packed with icing all the way through not just on top! Sweet and creamy deliciousness in every bite! I used Pillsbury crescent sheets for this recipe. The cream cheese mixture makes enough for 2 crescent sheets but if you want extra icing, just do one sheet and reserve half the cream cheese mixture to ice on top after baking!

Listen to the podcast HERE Watching our babies grow up can be hard on a momma's heart. Some milestones are harder than others and some are just down right scary. The driver's license is one of those moments. After a year of riding alongside them (with our eyes closed a good bit of the time), we all of a sudden turn them loose. We pray they stay safe and make smart decisions. There are so many distractions these days, notably the phone, that weren't an issue for us parents. On the flip side, we also have (for the most part) safer vehicles now and apps like Life 360 so that we can keep dibs on our teens. I watched that Life 360 app like a hawk those first few weeks after my son got his license. Side Note: I am not affiliated with Life 360 but if you haven't checked this app out, I recommend it. There is a free version and a paid version. We didn't use it until my son got his license but we are thankful to have it. Here are some of my favorite features: you can set alerts for certain locations. I get an alert once he arrives at school and when he leaves. I also get an alert when he arrives at his girlfriend's house. LOL it tells you how fast they drove. You can actually track them as they drive and see how fast they are going. it tells you if they accelerate aggressively or have any hard breaking. and probably my favorite, it alerts you if there is phone usage while they are driving. Okay, back to the topic at hand. I am generally prepared for most things. I keep a tight rein around our family finances and household items. I talk with lots of mom friends (as well as dads) about lots of topics and have always felt very in tune. However, there was one item that caught me completely off guard and that was the sticker shock when I added my son as a driver on our insurance policy. I thought it was an error for sure. Sadly, I was wrong. So I am here today to give y'all a heads up on the insane cost of insuring teen drivers. If you already have a teen driver then you know exactly what I am talking about and you are probably still recovering from the sticker shock yourself! States vary on their insurance laws and regulations. I live in NC and the minimum coverage requirement is 30/60/25 coverage. That is coverage that pays up to $30,000 for bodily injury for one person, up to $60,000 for the total bodily injuries, and up to $25,000 in property damage. The property damage doesn't have to be another vehicle. It could be a fence or something like that. As you can imagine, costs from an accident, especially a bad accident, are going to be well beyond those limits. If you (or your teen driver) are found at fault for an accident then you are responsible for the damages. I don't like to think negatively or focus on the worst case scenario BUT what if your teen driver causes an accident that totals a Porsche? Or what if your teen driver runs off the road and hits a pedestrian on the sidewalk? You are going to want much higher coverage limits and so a full coverage policy may be ideal! If you are unsure what your limits are, I encourage you to check and if they are the minimum then you may want to look at increasing them. Yes, your premium will go up if you increase the limits but it is definitely something worth evaluating for peace of mind! Speaking of premiums, how much is it going to be to add your teen driver? According to the website carinsurance.com, your current premium will increase anywhere from 50-100%! Yes, you heard that correctly! Ouch right? Except for a few states (like NC) that prohibit this, male teen drivers pay more than their female counterparts due to a higher crash rate. It is usually cheaper to add your teen driver to your existing policy and list them as a secondary driver. Quotewizard.com states that you can pay up to 48% less by adding your teen to your policy rather than them getting a stand alone policy. The site also lists out average prices by state. (I will link this information in the show notes). It states that the national average for a two parent policy is $302 per month and adding a teen to that policy will add another $278 per month for a total of $580. However, the average stand alone policy for a teen is a whopping $532 per month! And according to insurance.com "When you add a 17-year-old driver to your policy you'll see an average rate increase of $2,102 a year for full coverage. The average cost of car insurance for a 17-year-old on their own policy is about $5,924 a year. For a 16-year-old driver, the average rate for full coverage is $7,203." If your teen doesn't have any accidents, speeding tickets, or the like then the rates will decrease and once they are 25 with a good driving record, they will decrease substantially. You may be wondering, what would happen if my teen caused an accident or got a speeding ticket, how will that affect the rates? The national average is a 25% increase from a speeding ticket and if your teen got that speeding ticket and they are on your policy, then your rates are going up! The good news is that your teen may be eligible for some discounts. Insurance companies don't always let you know about these discounts so be sure to inquire. Good student discounts, extra driver education, low mileage, as well as a few others. It's definitely worth checking to see if any are available! If your teen is nearing driving age, do your homework and shop around for rates because you may end up needing to move your coverage to another company and if you bundle your insurance with your home that process could take a little longer. If you or your teen are buying their own car, check insurance rates before you buy. As you can imagine, sports cars come with higher rates but things like certain safety features can bring rates down. Bottom line, getting the driver's license is a big deal and while it comes with a lot of excitement for the teen, it comes with a lot of scary for the parents! A serious conversation with your teen so that they fully understand the responsibility they are taking on with their license is a must. I do want to note that when your teen has their learner’s permit, it doesn’t affect your insurance, only once they become a licensed driver. The content in this blog is educational in nature and is not considered financial advice.

What is the one thing in this world that we can't get more of? Time! I recently had a post on Instagram about respecting people's time. It was more of a Public Service Announcement than a planned post but it garnered a lot of attention, comments, and even several direct messages. Bottom line was, y'all were agreeing with what I had said. I think the incident that caused me to make the post really got under my skin because I have been thinking about time a lot lately. About how short life truly is. I have been making a concerted effort to make each and every day count to the fullest. I have embraced taking better care of myself so that I can be the best version of me each and every day. Making every little thing worthwhile. Not wasting time and regretting it later. Here's what happened: I had offered my services to another CPA to help her with something she was unfamiliar with. I have never met this woman and I was not going to be paid for this meeting. Nevertheless, I was doing it to help her out and her client. I allowed her to choose the date and time. So, 10:00 on Wednesday morning was the time. It was a gross, cold, and rainy day. I arrived at her office about 9:58. I walked in and told the receptionist who I was there to see, she told me to have a seat, and that she would let her know I was there. I sat there and I sat there (fortunately my hubs had sent me some dog videos to help pass the time). The receptionist never said another word. The person I was supposed to meet never came out to see if I was there. Other people that work there walked through the lobby. Not a single one ever spoke to me. Not a "Good morning" or a "Who are you here to see and I will see if they are ready for you?" Nothing. Crickets. The longer I sat the more irritated I became and at 10:30 I decided I would leave. So, I got up and walked out the door. The receptionist never tried to stop me. I just got in my car and drove home. Almost 15 minutes to drive back home. I had wasted a solid hour of my day. My PSA on Instagram was about respecting people's time. Everyone's time is valuable and precious. Yes I understand that we all run behind from time to time. We can easily let someone know that as well. When I go to my OB, if she has had a patient go into labor and is tending to them, then I will be told as such. I won't be left in the waiting room with no updates. There are probably some OB's that don't do that but I have always had a great experience when that arises. Bottom line: it's not really hard to respect people's time as long as you don't think your time is more valuable than theirs. I think the older we get the more we think about time. We regret all the time we've wasted. Whether it was a career we didn't like, long daily commutes, sleeping in too much, prioritizing the wrong people, and the list could go on and on. Being intentional matters in regards to so many aspects of our lives and time management is a huge one. I have always been a planner and I know I am a little over the top when it comes to my schedule. I am one of those that time blocks so I can get everything done. It's a reason I was upset by wasting an hour. I had the thought process of "well I could have gotten X done and not needed to do it Saturday." Here's the thing, not only do we need to be respectful of other people's time; we need to be respectful of our own. I believe people that respect their own time tend to be more cognizant of time in general and thus respect other's time as well. Being intentional with your time each day of what you want to accomplish, who you want to spend your time with, who you want to do things for, etc makes a difference. We all have errands to run and things we don't love to do (but may need to do) and by planning for it all we are able to utilize our time to the fullest and have less regrets about wasting time. Do you regularly leave people hanging? Do you regularly waste time having meaningless conversations (mostly gossip)? Do you regularly waste time binge watching shows, even ones you've already seen? Here is what I think about when I am planning how to spend my time each day: if I found out tomorrow that it was my last day on earth, would I be happy with how I spent my time today or would I be regretful? I know that is quite a depressing thought but that is also the point. It is depressing if our answer would be regretful. Make your time count! Respect other people's time so theirs counts too! We can't make more of it. Therefore, we can't waste a minute of it!