Category: Saving

Financial perspectives are often shaped by experience, and in many cases, by the lessons learned and shared within a family. In recognition of Mother’s Day, we asked the moms of Advisors Management Group’s financial advisory team to share their perspectives on money, financial planning, and the lessons that have shaped their approach to financial decisions. Their insights reflect a range of experiences, priorities, and approaches, offering a more personal look at how financial planning connects to everyday life. Here’s What They Had To Say: Melanie Chapel “The best advice I want my kids to take on is learning how to budget and plan ahead. Start saving young, even if it’s a small amount, make saving part of your budget. Kids today often don’t know how to balance a checkbook, let alone create a budget..” Kate Pederson “It’s good to have money and the things that money can buy, but it’s good, too, to check up once in a while and make sure you haven’t lost the things that money can’t buy.” —George Lorimer Rebecca Agamaite “Live within your means. Don’t live to impress others.” Ashley Vega “Saving early and consistently for your kids, even if it’s a small amount, can go a long way over time. Having a small account for them can also provide a way for you to connect with your kids and educate them about finances as they get older.” Jenna Deets “One of the most helpful things for our family has been tracking where every dollar we spend goes. This has allowed us to make the choices needed to save for large expenses instead of taking on debt. As a result, we have fewer fixed payments each month, giving us flexibility for emergencies or new expenses. Whether a household lives paycheck to paycheck or has excess cash flow, this is one of the most important habits a family can build.” Planning For The Whole Family At Advisors Management Group, financial planning is centered around helping clients navigate decisions across all stages of life, with a focus on long-term priorities and family goals. On behalf of the Advisors Management Group team, we wish all those celebrating a Happy Mother’s Day! Contact Advisors Management Group If you would like to discuss your financial goals or have questions about your current strategy, please contact us. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Graduation season often marks a transition for both students and their families. Whether a student is finishing high school or college, this stage can bring financial decisions into clearer focus, particularly around education, income, and future responsibility. For many families, these moments are expected. What changes is how financial responsibilities begin to shift and how an existing plan starts to be carried out in real time. Different Paths After High School And College For many high school graduates, the focus often turns toward education-related decisions. This may include understanding how college or other programs will be funded, how living expenses may be handled, and how financial responsibilities may be shared between parents and their now adult children. For college graduates, the transition can look different. Moving into the workforce may bring changes related to income, living arrangements, and day-to-day financial responsibilities. It can also mark the beginning of new considerations around saving, paying off student loans, future housing plans, and longer-term financial priorities, such as marriage, children, and retirement. While high school and college graduates have different financial priorities, both mark a point where long-term decisions begin to play out, rather than remain on paper. Changing Financial Roles Within The Family Graduation can also change how financial roles are defined within a family. For some families, this may involve a gradual transition of responsibility from parent to child. For others, it may include continued support while a student completes additional education or establishes a career. There isn’t a single timeline for this. Each family approaches it differently based on their own circumstances and financial priorities. Income, Expenses, And Early Career Decisions As children move into the next stage of life, new patterns of income and expenses may arise. For high school graduates, this may include entering the workforce, trade programs, military service, or continuing education. Each path can bring different types of income, expenses, and financial responsibilities, often for the first time. For college graduates entering the workforce, this may include adjusting to a regular income, navigating increased living expenses, and managing existing financial obligations such as student loans or car payments. It can also introduce early decisions around how income is allocated across different priorities, including employer-sponsored retirement plans and individual savings or investment strategies. For families, these transitions may influence how financial support is provided, and how planning priorities and financial education continue to evolve. Education Costs And Long-Term Planning For families with students continuing their education, the financial impact may extend over several years. Education-related expenses, whether planned in advance or addressed as they arise, can play a role in shaping a family’s overall financial strategy. These considerations often connect to other priorities, including saving, investing, and long-term planning decisions. A Period Of Transition And Perspective Graduation represents more than just a transition from high school or college. It can also be a point where financial responsibilities and knowledge begin to shift between generations. During this time, families may review their existing financial plan and talk with their graduate about financial considerations for the future. Major life changes such as graduation can also provide an opportunity to introduce the topic of financial literacy to the next generation. Planning For The Long-Term Financial planning often involves adapting to different stages of life. Transitions such as graduation can highlight how plans evolve as circumstances change. For many families, this period can be a time to consider how education costs, early career decisions, and shifting responsibilities align with long-term goals, while also introducing the next generation to financial literacy. At Advisors Management Group, financial planning is centered around helping clients navigate these types of transitions with a clear understanding of how each stage fits within their overall plan and family goals. Contact Advisors Management Group If you would like to discuss your financial goals or have questions about your current strategy, please contact us. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Scheduling an initial meeting with a financial planner can feel like a significant step, especially for those who have not gone through the process before. Questions about what to expect, what to bring, and how to prepare are common. While every firm may structure these conversations a little differently, most introductory meetings are designed to be informational and conversational. They provide an opportunity to share your current financial picture, discuss goals, and better understand how financial planning works. With a bit of preparation, individuals can approach this first meeting with greater clarity and confidence. What Typically Happens During An Initial Meeting An introductory meeting with a financial planner is usually centered around getting to know you and your financial situation. Rather than focusing on specific decisions, the conversation often begins with a general overview of your current circumstances and priorities. Topics that may be discussed include: Your current financial situation, including income, savings, and existing accounts Short-term and long-term financial goals Major life events that may influence planning Any concerns or questions you may already have The planner may also explain how their process works, including how financial plans are developed, how meetings are structured, and how ongoing communication typically takes place. This initial conversation is not about having everything finalized or figured out. Instead, it is a starting point for understanding how different pieces of your financial life fit together. Documents and Information That May Be Helpful To Bring Bringing a few key documents to your first meeting can help provide context and make the conversation more productive. While it is not necessary to have every detail organized, having a general picture of your finances can be helpful. Some individuals choose to bring: Recent tax returns Pay stubs or documentation of income Statements for retirement accounts, investment accounts, and savings Information about employer benefits, such as retirement plans or insurance Mortgage statements or other debt-related information Estate planning documents, if available These documents can help create a clearer view of your financial situation. However, if certain items are not readily available, that is generally not a barrier to having an initial conversation. The goal is not perfection, but preparation. Thinking Through Your Financial Goals Before your meeting, it can be helpful to spend some time thinking about your financial goals. These do not need to be fully defined or detailed. Even general ideas can help guide the conversation. Some individuals reflect on questions such as: What are my short-term priorities over the next few years? What does retirement look like for me, and when might it occur? Are there major life events I want to plan for, such as buying a home or supporting family members? Are there areas of my finances that feel unclear or uncertain? Having a sense of direction can help make the conversation more meaningful and ensure that the discussion reflects what matters most to you. Questions You May Want To Ask An initial meeting is also an opportunity to ask questions and better understand the planning process. Some individuals choose to ask about: How financial planning is structured and what the process looks like How often meetings typically occur What types of services are offered How communication is handled between meetings What information will be needed moving forward These questions can help provide clarity and give you a better sense of what to expect if you choose to continue the relationship. It is also a chance to understand whether the approach aligns with your preferences and communication style. Understanding The Role Of The Conversation For many individuals, one of the most important things to keep in mind is that the first meeting is simply a conversation. It is not a test, and there is no expectation to have all the answers. Financial planning is a process that develops over time, and the initial meeting is just the first step in that process. The purpose is to establish a foundation for future discussions. By sharing information, asking questions, and learning about the planning approach, individuals can begin to build a clearer understanding of how financial planning may fit into their overall goals. Creating A Comfortable Starting Point Feeling comfortable during an initial meeting can make a meaningful difference. Preparation can help reduce uncertainty and allow the conversation to flow more naturally. Even small steps, such as gathering a few documents or thinking through key questions, can make the experience feel more manageable. At Advisors Management Group, introductory meetings are approached as an opportunity to listen, learn, and understand each individual’s situation. These conversations are designed to provide clarity and establish a starting point for ongoing financial planning discussions. Taking The First Step For those considering meeting with a financial planner, taking the first step can feel unfamiliar. However, understanding what to expect and how to prepare can make the process more approachable. An initial meeting is simply an opportunity to begin a conversation about your financial life. With a thoughtful approach and a bit of preparation, individuals can make the most of their time and gain a clearer perspective on their financial picture. Over time, these conversations can help support a more informed and organized approach to financial planning, aligned with your personal goals and circumstances. Contact Advisors Management Group If you would like to discuss your financial goals or have questions about your current strategy, please contact us. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Life rarely stays the same for long. Over time, careers evolve, families grow or change, and priorities shift in ways that may not always be immediately reflected in a financial plan. While financial planning is often thought of as a long-term process, certain life events can naturally prompt a closer look at how everything is structured. Periods of transition can offer a valuable opportunity to step back, review your current financial picture, and consider whether your plan still aligns with your goals and circumstances today. Financial Planning Is Not Static A financial plan is often built around a snapshot in time. It reflects your income, responsibilities, goals, and resources at that moment. As life moves forward, those elements may change gradually or all at once. Because of this, financial planning is not a one-time event. It is an ongoing process that may benefit from periodic review, especially during times of change. Even small shifts can influence how different pieces of a financial plan work together. Recognizing when to revisit your plan can help ensure that it continues to reflect your current situation. Career Changes and Income Shifts Changes in employment are one of the more common reasons individuals revisit their financial plans. A new job, promotion, career change, or transition to self-employment can affect income, benefits, and overall financial structure. These changes may also influence retirement plan options, healthcare coverage, and savings patterns. During these transitions, individuals often take time to review: Changes in income and how they affect cash flow Differences in employer-sponsored benefits Retirement plan availability and contribution activity Adjustments in short-term and long-term financial priorities These moments can provide a clearer understanding of how income and benefits connect to broader financial goals. Approaching Retirement As retirement becomes more immediate, many individuals begin to take a closer look at their financial plans. This stage often involves shifting from accumulating savings to considering how those savings may support future income needs. It may also include reviewing timelines, expected expenses, and lifestyle preferences. Common areas of reflection during this phase include: Anticipated retirement timing Current savings and account structures Income sources during retirement years Healthcare considerations Rather than focusing on specific actions, this type of review helps individuals understand how their current plan aligns with their expectations for retirement. Business Ownership and Changes For business owners, financial planning can be closely tied to the structure and performance of the business itself. Changes such as starting a business, expanding operations, bringing on partners, or preparing for a transition can influence both personal and business-related finances. These developments may also affect income variability, tax considerations, and long-term planning. During these times, individuals may choose to review: The relationship between personal and business finances Cash flow patterns and financial stability Long-term plans related to business ownership Potential transitions, such as succession or sale These reviews can help ensure that financial planning reflects both personal goals and business realities. Divorce Or Separation Significant personal changes, such as divorce or separation, often lead to a reevaluation of financial priorities. These transitions can affect income, expenses, asset ownership, and long-term planning considerations. They may also prompt individuals to revisit documentation and account structures. During this period, individuals sometimes take time to review: Changes in income and household expenses Ownership and division of assets Beneficiary designations and account information Short-term and long-term financial priorities This process can help individuals better understand their financial position as they move forward. Family Changes and Responsibilities Family dynamics can shift over time in ways that influence financial planning. Events such as marriage, the arrival of children, supporting aging parents, or changes in household structure can all play a role in shaping financial priorities. These changes may affect budgeting, savings goals, and long-term planning considerations. Some individuals choose to reflect on: Adjustments in household expenses Savings goals related to education or family needs Changes in insurance coverage Estate planning considerations These types of reviews help ensure that financial plans continue to reflect the needs of those who depend on them. Relocation or Lifestyle Changes Moving to a new location or making a significant lifestyle change can also prompt a review of financial plans. Changes in cost of living, housing expenses, and local tax considerations may all influence how a financial plan is structured. Even smaller lifestyle adjustments can have an impact over time. During these transitions, individuals may consider: Differences in housing and living expenses Changes in income or commuting costs Adjustments in savings or spending patterns Long-term goals related to lifestyle preferences Understanding how these factors fit together can provide clarity as individuals adapt to new circumstances. Why These Moments Matter Life transitions often bring both challenges and opportunities. While some changes are planned, others may happen unexpectedly. In either case, these moments can create space for reflection. Reviewing a financial plan during a period of change does not necessarily mean making immediate adjustments. Instead, it allows individuals to evaluate whether their current approach continues to align with their evolving goals. By taking time to review financial information, priorities, and documentation, individuals can gain a clearer understanding of where they stand and how their plan supports their direction moving forward. Keeping Financial Planning Aligned With Life Financial planning works best when it reflects real life, not just a fixed set of assumptions. As circumstances change, revisiting your financial plan can help ensure that it continues to align with your current needs and long-term objectives. Even if no changes are made, the process of reviewing can provide valuable perspective. At Advisors Management Group, financial planning is viewed as an ongoing conversation. Life events often serve as natural points to revisit that conversation, helping ensure that each plan remains aligned with the individual circumstances and priorities of the people it is designed to support. If you are experiencing a life transition or simply want to revisit your financial plan, connecting with a financial professional can help provide a structured approach to reviewing your current situation and understanding how it fits into your broader financial picture. Contact Advisors Management Group If you would like to discuss your financial goals or have questions about your current strategy, please contact us. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Retirement planning is often discussed in broad terms, but many assumptions about it are shaped by incomplete information or generalizations. These misconceptions can influence how individuals think about saving, timing, and long-term financial needs. Taking time to understand some of the more common misunderstandings can help bring clarity to the planning process. Rather than focusing on specific actions, it can be helpful to look at how different factors interact over time and how expectations compare to reality. When Do Most People Start Saving? One common assumption is that retirement planning begins at a certain age, often later in one’s career. In reality, individuals approach retirement planning at many different stages of life, depending on their circumstances, priorities, and financial situation. Some may begin saving early, while others may focus more on retirement planning as their careers progress. Factors such as student loans, housing costs, or career changes can influence when and how individuals begin to prioritize long-term savings. There is no single timeline that applies to everyone. Instead, retirement planning tends to reflect a combination of personal goals, financial resources, and life experiences. Understanding this can help shift the focus away from comparison and toward individual progress over time. How Long Retirement May Last Another area where misconceptions often arise is the length of retirement. It is sometimes assumed that retirement will last for a relatively short period. However, increasing life expectancy has changed that perspective. Many individuals may spend several decades in retirement, depending on when they retire and their overall health. This extended timeframe introduces additional considerations. Planning for a longer retirement may involve thinking about how financial resources are used over time and how different sources of income interact throughout those years. Because longevity varies from person to person, estimating the length of retirement is not an exact calculation. Instead, it is one of several factors that can influence how individuals think about their financial plans. Understanding Income Sources in Retirement Another misconception is that retirement income comes from a single source. In practice, retirement income is often made up of several components. These may include Social Security, employer-sponsored retirement plans, personal savings, or other financial resources. Each source may play a different role depending on the individual’s situation. Relying on one source alone is not always how retirement income is structured. Instead, these elements often work together to support financial needs over time. Understanding how different income sources interact can provide a more complete view of retirement planning. This perspective also highlights that retirement planning is not just about accumulation. It also involves understanding how resources may be used and coordinated throughout retirement. The Role of Inflation Over Time Inflation is another factor that is sometimes underestimated in retirement planning. While inflation may seem gradual in the short term, its long-term impact can influence purchasing power over time. This can affect everyday expenses such as housing, healthcare, and general living costs. Surveys have shown that many individuals view inflation as a significant concern in retirement, as rising costs can influence how far savings may go over time. Because retirement can span many years, even modest changes in inflation may have a cumulative effect. Recognizing this can help provide context when reviewing long-term financial plans. Assumptions About Spending in Retirement Another commonly held belief is that spending decreases significantly in retirement. While some expenses may change, overall spending patterns can vary widely. For example, work-related costs may decline, while other areas such as healthcare, travel, or leisure activities may increase. Research indicates that many retirees report higher-than-expected expenses, suggesting that spending in retirement does not always follow a predictable pattern. Because of this, retirement planning often involves looking at a range of potential expenses rather than assuming a single pattern. This approach can provide a more balanced view of long-term financial needs. Misunderstandings Around Withdrawal Strategies Rules of thumb are often discussed in retirement planning, particularly when it comes to withdrawing savings over time. While these frameworks can provide a general starting point, they are sometimes interpreted as universal solutions. For example, commonly referenced withdrawal approaches are often based on specific assumptions about time horizons, market conditions, and individual circumstances. These assumptions may not apply equally to every situation. Because retirement planning is highly personal, these types of guidelines are often best viewed as general concepts rather than fixed outcomes. Understanding the context behind them can help individuals interpret them more effectively. Balancing Expectations With Reality Misconceptions in retirement planning often stem from simplified ideas about complex topics. Retirement involves a range of variables, including timing, longevity, income sources, and economic conditions. At the same time, individuals may find that their expectations evolve over time. As circumstances change, so can perspectives on retirement goals and financial priorities. Taking a step back to review these assumptions can help create a clearer understanding of how different elements fit together. Keeping the Focus on Long-Term Perspective Retirement planning is a long-term process that develops over many years. Rather than focusing on a single moment or decision, it often involves ongoing reflection and adjustments based on changing circumstances. Understanding common misconceptions can be a useful starting point for these conversations. It can help individuals ask more informed questions and consider how their plans align with their current situation. At Advisors Management Group, financial planning is approached as an ongoing process that evolves over time. As individuals review their financial picture, these discussions can help maintain alignment between long-term goals and the realities that shape them. While retirement planning can feel complex, taking the time to better understand common assumptions can provide valuable perspective. Over time, that perspective can support more informed conversations about financial priorities and long-term planning. Contact Advisors Management Group If you would like to discuss your financial goals or have questions about your current strategy, please contact us. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via e-mail as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation. This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

This is a common question related to retirement and retirement planning, and the answer might surprise you. While most people assume there is a magic account balance, for example one million dollars, that is not the case. The truth is that people retire comfortably with all different account balances because every situation is unique. Let’s look at factors that contribute to your retirement needs.  Spending Need Everyone’s spending needs are different. If you plan to retire with no debt and minimal monthly expenses, you may need less than someone who has a larger spending need. For those with minimal spending, Social Security may cover a good amount of their spending need allowing for minimal dependence on retirement savings. On the other hand, if your monthly spending needs are large or you anticipate travel or big-ticket discretionary spending, you will need to have more money available. Ask yourself what you would like your retirement to be like, what expenses you will likely bring into your retirement and what you envision your lifestyle to be like.  Replacing Income If the idea of living without your 9 to 5 paycheck causes you to feel stressed, you are not alone. When you start retirement, you will need to replace your paycheck with other sources. For most people, Social Security will be the base portion of your retirement income. According to the Social Security Administration, on average, Social Security payments will replace about 40% of your income. If you have lower income, this number will be higher, but if you have higher income, this amount will be closer to 25-35%  Anything that Social Security does not cover can be supplemented by your savings. IRAs, 401ks, Roth IRAs and non-qualified assets can be used to create a stream of income that becomes your paycheck in retirement. A professional financial planner can help to navigate how to spend your money to avoid spending it too quickly or paying too much in tax.  Pensions While only an estimated 15% of employees work for a company or entity that offers a pension, certain professions such as those in skilled trades, education or government likely offer a pension. If you are one of these workers, you will likely retire with less money in investments than your neighbor who works in the private sector. If you have worked in this industry for most of your career, you may have significant income that is not dependent on your personal savings. You may need far less money in savings to retire comfortably if you have a pension. The Case for Financial Planning The ins and outs of retirement planning can feel overwhelming. Financial planning can give you a look into the future and help you shed some light on your retirement future. There are a lot of factors that come into play when it comes to determining how much money you will need to save for retirement, and it is not a universal answer. It is easier to adjust your strategy earlier, then make compromises to your lifestyle later.  You do not need a lot of money to benefit from a financial plan; however, it can be the difference between having a comfortable retirement or not. Not sure where to turn? We can help. Contact us today to start planning for your retirement future.    Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

How to save more money…What does this mean to you? Does it mean that you actively are looking to increase your savings? Does it make you think of starting a 401k, saving an emergency fund or tucking money away for a major purchase? Or does it mean saving money on groceries, making your paycheck go farther or not feeling stuck in the rut of trying make ends meet. While this same question can have two different meanings, the root of the question comes down to cash flow management. If you are getting established, you might feel like you are trying to make it from paycheck to paycheck. If you are in the middle, you may be looking for ways to increase your savings. If you are in the thick of retirement planning, you may find yourself focused on which expenses you bring into retirement and how to turn your nest egg into a cash flow to cover your monthly expenses. No matter your stage in the game, cash flow is part of equation. Cash flow management is the backbone of all financial planning strategies. Unfortunately, many people overlook the importance of evaluating where your money is going. It can be assumed that if you aren’t having issues managing your money, you don’t need to evaluate your spending. Evaluating cash flow can help you determine retirement spending needs, help you determine what expenses you will carry into retirement, and plan for inflation. Let’s break down some tips for maximizing ways to save more money. Foundational Years If you are just getting yourself established, pay yourself first, then set your lifestyle budget around what is left over. Setting up savings strategies like 401ks, Health Savings and emergency fund as soon as possible will help save more over the course of your working years and can get you on the road to wealth building sooner. It is harder to start these strategies later especially as responsibility grows. Avoid the urge to keep up with Joneses. Social media and other influences have painted an image that you need the latest and greatest of everything. Instead choose to live within your means, keep debt in check, keep emergency funds available and plan for major purchases. Don’t overextend yourself on housing or vehicle payments. Only make major purchases that you can comfortably afford and leave yourself some wiggle room so that you are able to handle unexpected emergencies. While the grass may look greener on the other side of the fence, the grass is truly greenest where you water it. If you are coming late to the game paying yourself first, start small and work your way up. It’s easier to save $1000 to your emergency fund than it is to save 6-12 months of income. If you feel you can’t save for retirement, start small and work your way up. Try to contribute enough to get any match your employer offers. If that seems like too big of a commitment, start by saving a percent or two and then increase every year. If you get a pay increase, increase savings again. By taking small steps towards your goals, you are creating good habits and moving in a positive direction. Wealth Building Phase Focus on increasing savings. The 50/30/20 rule is a very effective strategy to balance your short-term spending needs with your long-term savings goals. 50% of your income can go towards your necessities, 30% of your income can go to discretionary spending and 20% allocated to saving. The 20% that you save should be broken down between long-term goals and short-term goals. For example, if your employer matches up to 6% of your income, you may put 6% into your 401k, but then may fund a Roth IRA up to the maximum, while also putting money into a Health Savings Account and/or taxable brokerage account. The mix of savings can be customized to meet your goals and create tax efficiency. It’s a good rule of thumb that of the portion designated for saving, at least 10-15% will be allocated to retirement. Retirement savings should be left untouched to maximize growth and avoid unnecessary tax and penalty. Retirement Years While some people still save for their goals in retirement, most people’s focus is more on being mindful of how they spend their money. Projecting cash flow and expenses before you retire will help you to determine if your nest-egg will provide the income you will need to cover your expenses. For some people, annual spending needs will decrease because you can eliminate the portion you allocate to retirement income. Additionally, many people will have eliminated debt prior to retirement, which can lower retirement income need. As a rule of thumb, you should be drawing 4% or less of your retirement savings to avoid spending through it prematurely. This is just a general rule, you should consult with your investment advisor representative for what is right for your situation. Investments that generate income such as interest and dividends can be important to help replace the money you spend. If saving money in retirement means spending less, retirees can find lots of great discounts allowing them to spend less in retirement. Retirees can take advantage of discounts on retail purchases, travel, memberships, and pharmacies. Some retirees may even seek out places to reside with favorable tax situations to help them save money in retirement. Final Thoughts Regardless of where in the financial planning process you are, cash flow is an important aspect of evaluating your situation and planning for your future. Thinking beyond budgeting; your cash flow is the most important tool for building long term wealth. If you are not sure where to start, meeting with a trusted financial advisor is a great first step. Our team of fiduciary advisors can help you to determine where you are now and how to accomplish your goals. Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Whether you are planning to do your own, or hire a pro, you are probably getting ready to file your tax return soon. You may wonder why you need to file a tax return. Think of your return like this, you probably made money from a few different sources (income) last year. You probably paid some tax along the way (withholding). You probably get some tax breaks (deductions). Your tax return adds up the income, subtracts off your deductions and determines how much tax you owe. This amount is compared to what you paid throughout the year. If you paid too much, you get a refund. If you didn’t pay enough, you have an amount due. As you assemble your documents, it can be helpful to understand what documents you should be looking for and how they tell the story of your prior year. Income Forms If you are an employee of a company: If you are employed, you will likely get a W-2. This form reports how much you made, taxes withheld and voluntary deductions such as health insurance and retirement savings. If you work for yourself: 1099-NEC is issued to those who work as consultants, independent contractors and those who take temporary assignments such as traveling health professionals. If you have bank accounts, investments or cashed savings bonds: If you have savings, be on the lookout for several different 1099 forms. 1099-INT reports interest earned. 1099-DIV reports dividends earned. 1099-B reports stock sales. 1099 Composite is a combination of 1099-B and 1099-DIV. These are commonly associated with checking, savings, and brokerage accounts. 1099-R reports income that comes from retirement accounts such as IRA’s and pensions. Note that if you rolled over a 401k to an IRA, you may receive a 1099-R even though you did not have a taxable event. If you are disabled or retired: If you are receiving Social Security payment in retirement, due to disability or as a survivor’s benefit, you will receive a SSA-1099. If you were unemployed: If you received unemployment benefits, you should expect a 1099-G. If you were a lucky winner If you won money or a prize as the result of a contest or gambling, you should expect to receive a 1099-MISC or W2G. Deduction/Credit Forms Forms for Homeowners 1098 reports mortgage Interest, Property Tax Bill. Education If you have a student with college tuition, their school will issue a 1098-T. Dependent Care If you have a child or qualified dependent in daycare or other dependent care, be sure to get a receipt from your provider that includes the EIN/Social Security number of the care provider. Renters Rent payments can be used as a deduction or used towards a credit on some state tax returns. In some cases, you may need a rent certificate from your landlord. Charitable Donations Due to the increased standard deduction, most people will not be able to use charitable donations on their federal return however, your state may offer some tax benefits for donations. Help for Those in Need If you have tax questions or need help preparing your taxes, but are unable to pay for help, check out resources in your community that aid low-income individuals, disabled and retired people in navigating simple tax returns at low or no cost. Organizations like Goodwill, VITA and AARP have volunteers on hand who have tax knowledge and can help those in need. Final Thoughts Many people find tax season to be stressful. Keep in mind that with a little up-front organization, tax season can be a breeze. Before gathering your documents for this year’s return, you may find it helpful to review last year’s return to see what forms you had last year. Use this year’s completed return as a planning tool for the year ahead. If you owed too much money or got too much back, consider adjusting your withholding. If you have deductions that you will lose in the coming year, you may also need to change your withholding. Small changes early in the year can help you avoid the unexpected next year.   Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

In 2022, in attempts to stop runaway inflation, the Federal Reserve increased Federal Funds rate 7 times increasing rates a total of 4.25%. This is perhaps one of the most aggressive increases in recent history, but what does it mean for you? Let’s take a little look at how the Federal Reserve works and how the process of monetary control affects you. Despite what the name may suggest, the Federal Reserve or “The Fed” is not a part of any government. Rather, it is an independent central bank that serves our country.  Most countries have a similar central bank that controls the money system for their country. Our own central bank was approved by Congress under The Federal Reserve Act of 1913, and it was signed into law by Woodrow Wilson. Although is not part of the government and operates primarily independently of federal government, it is overseen by the board of governors, a group chosen by the President of the United States and approved by Congress. The job of the Fed is to serve as the bank to retail banks assisting in the movement of money in the US and beyond. It is broken into 12 Federal Reserve Districts that cover different areas of the country. District Federal Reserve branches are the bank at the top of the system that includes your local bank or credit union. Your bank uses the Fed to obtain money for lending and for the process of clearing transactions. The Fed also controls the US’s money supply through monetary policy. Think of monetary policy like a big dam. Money sits in the reservoir behind the dam and The Fed allows for money to run down the dam structure and down the river to you and me.  When the Fed uses loose monetary policy, there is more money flowing down the line and when they are tightening monetary policy, they are holding more in the reservoir. Different monetary control styles are used during different times as the economy moves through different phases of the economic cycle. 2022’s Fed rate hikes are an example of tightening monetary control. One of the more noticeable effects of the 2022 Fed rate hikes was the quick changes to the real estate market. Rate hikes caused an increase of activity as buyers became fearful that rising rates would make payments less affordable. The flurry of activity quickly gave way to a slowdown as some buyers either edged out of the marketplace or decided to hold off. Money became more expensive to borrow keeping more of it in the reservoir. You may have felt frustrated if you have ever been trying to make a major purchase during the recent rising interest rates, but there are other things at play during changes in monetary control. Ultimately, 2022’s rate hikes were aimed at lowering the unstainable inflation which affects the prices of everything we buy. Although it is unlikely to quickly bring the price of your eggs and milk down, the hope is that we would see prices begin to stabilize, a return to a more normal inflation rate. There are two sides to the coin when it comes to monetary policy. While borrowers began to see the effects of higher interest rates, those saving also did. For the first time in a long time, rates on savings accounts, CDs and bonds began to climb. As rates continue to climb, it is expected that fixed rates will be beneficial to people wanting to save. This can be a welcome sight for those savers who are becoming exhausted from the rocky market conditions that existed throughout the year 2022. Though you may give little thought to the Federal Reserve and how it works, it affects how you transact, spend, and save. By understanding a little about what the Fed’s role in our economy is, you can better understand what risks and opportunities are available for you because of the Fed. If you would like to discuss how recent how recent changes in interest rates have affected your financial situation, please feel free to contact our team for a complimentary consultation. We have experienced financial advisors located in Eau Claire, La Crosse, and Green Bay. Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Whether it’s on your phone, on the nightly news or scrolling on the bottom banner of your web browser, you probably have seen the performance of the market indexes such as the Dow Jones Industrial or the S&P 500. We see the familiar red and green arrows as we go about our days without giving it much thought. Some people bring the indexes up in casual conversation, but few people take the time to really understand what they are or how they apply to them. Let’s break down some basics about indexes, how they work, and what they mean to you. What are indexes? Indexes are hypothetical portfolios representing different parts of the financial market. The ones investors are most familiar with are the Dow Jones Industrial Average (DJIA), S&P 500 and the Nasdaq Composite. There are plenty of other indexes that might be less familiar to you. To state this in simple terms, indexes are groups of company stocks. Depending on how well the companies are doing, their stock prices will move up or down. If times are good and companies are profitable, the indexes will move up. During hard times, the stock prices will decrease, and the indexes will move down. What makes up the indexes? S&P 500 -Standard & Poor’s 500 Index is a grouping of 500 of the leading publicly traded companies. Companies with more shares outstanding and higher capital make up the largest percentage. Currently Apple holds the largest percentage of the 500, DaVita Inc, is the smallest of the 500. Dow Jones Industrial Average, or simply the Dow- The Dow is the oldest and perhaps the most familiar index. It includes companies that are found globally. It includes 30 companies who are ranked by their price. UnitedHeath Group, Inc is the top company with a price over $500 per share, Intel is the lowest ranking with a current price under $30 per share. Nasdaq- The Nasdaq is one of the largest US indexes. It includes nearly every company that trades on the Nasdaq stock exchange. It is the most misunderstood index because it has some unique characteristics. Some people call it the tech index, although it is not exclusive to any industry. To be included, a company must trade exclusively on Nasdaq stock exchange unless it was there prior to that rule being made in 2004. This means that unless grandfathered in, none of the companies in Nasdaq appear on the NYSE, Philadelphia Stock Exchange, American or another exchange unless they have been there for a very long time. Some of its largest holdings, Apple, Microsoft, Meta, Alphabet, Tesla and others also appear as some of the top positions in the S&P 500. How does this apply to me? Aside from giving you something to talk about other than the weather, you may find that it’s helpful to know the current state of the market. It is kind of like looking at a thermometer for your investments. Having an idea of what is going on in the market can prepare you for what is going on in your own retirement accounts and investments. If you are seeing a lot of red days, it probably means that you can expect to see some losses in your account. Keep in mind, it’s just an idea of how things are going in the financial markets. Just because the S&P 500 or Dow Jones is down 10% year to date doesn't mean your portfolio is down 10%. You have your own group of investments in your personal portfolio and your portfolio has its own return based upon what you are holding and how much risk you are taking in your portfolio. Your advisor may discuss the market index’s performance and compare it to your performance. This is called using an index as a benchmark. This same strategy also applies for risk. You can determine if your portfolio has more risk, less risk, or similar risk. An aggressive investor may have a portfolio with nearly as much risk as the S&P 500 whereas a conservative investor may not be comfortable with that much risk. Most people misunderstand how to use an index as a benchmark. Often, we see people judging the success of their portfolio by how it compares to an index. Instead, you should judge your portfolio based on your long-term goals and how well your portfolio is set up to achieve your goals. Can I invest in an index? While you cannot invest in the actual index, there are mutual funds and ETF’s that mirror the index. These buy the exact same stocks that are in the indexes and their return can be similar. While this could be appealing, there can be downsides to this type of strategy. Index funds are not actively managed and can potentially carry more risk than an actively managed strategy. Finding a knowledgeable advisor can help you to decide what is right for your portfolio and how it relates to the broad markets   Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.