• How can I create a budget and stick to it?
• Even if you are financially successful, it is important to have a budget and to follow it.  The first step is to track your expenses for a month.  This will give you a better understanding of your finances, and you can project the amount of money you spend in a year.  Then you can decide which spending areas to reduce in order to add to your savings and investment portfolio.  Having a budget is also very important for retirees to make sure your retirement savings will not run out.  PFSG can help you track your expenses, create your budget, and build a successful wealth management plan.

• What is my net worth?
• Net worth is calculated by subtracting what you owe from what you own. This snapshot of your current financial situation is good information in general, but it is crucial to know to create a comprehensive and sustainable financial plan.  PFSG can perform a full analysis of your net worth and put you on a path to reaching your financial goals.

Real Estate

• Should I refinance my home mortgage?
• When interest rates are low or falling, you may be able to save money by refinancing your home mortgage.  If you have an adjustable rate mortgage, you may want to refinance in order to lock in a stable rate.  However, refinancing is often costly.  Charges may include loan origination, application fees, a credit check, an appraisal, and attorney fees, as well as title insurance, transfer taxes and more.  If you are planning to move in three years or less, refinancing is probably not the right choice.  Due to the costs of refinancing, it generally takes at least three years to fully realize the savings from a lower interest rate. PFSG can perform a thorough analysis to determine the costs and benefits of refinancing.

Family

• How do I teach my children financial responsibility?
• By learning good financial habits now, children will be set for a lifetime of financial responsibility.  One way to teach is by example.  By working with PFSG to develop and implement a comprehensive financial plan and sharing your progress with your children, they will see the power of savings and investing in action.  Allow your children to learn by doing by giving them a role in managing their money by helping them open their own bank accounts, save for and purchase things they want, and keep track of their account balances.  Give your children enough money to help them learn important financial principles, but not so much that they believe the supply is infinite.  PFSG can work with your entire family to build generations of financial security.

• What type of life insurance should I purchase to protect my family?
• Selecting the proper policy can be a complicated decision.  Factors such as income, savings and investments, debts, size of your family, and your health should all be considered.  PFSG will work with you to determine how much coverage you need.  We will compare different types of policies for you and find one that best suits your family’s needs. 

• What is the best way to save for my child’s education?
• Even if your income is high, paying for one or more children or grandchildren to attend college can be a challenge.  There are various tax-advantaged investments which make saving for college a little easier.  PFSG will develop a college savings plan for you and your family based on your time horizon, income, goals, and risk tolerance. 

Retirement

• Am I financially ready to retire?
• Deciding when to retire is a big decision and can be intimidating if you don’t have a full picture of your financial situation.  When planning your retirement, consider what kinds of things you want to do, such as traveling, playing golf, or spending time with grandchildren.  Consider what your future expenses will be.  Do you plan to have a vacation home or pay for a grandchild to attend college?  PFSG will analyze how much you are spending now, how retirement will affect your expenses, and how much you will need to live on in retirement, considering that your savings will be subject to inflation and taxes over the course of your retirement.

• Should I rollover my 401(k) into an IRA once I retire?
• Rolling over a 401(k) can allow you to keep control of your investments when you leave a job.  However, when rolling over a 401(k), beware of unnecessary taxes.  A 401(k) is tax-deferred, but if you are under 59.5, withdrawals from your 401(k) will be taxed as ordinary income plus a 10% tax penalty.  To allow your savings to continue to grow tax free, roll over or transfer the assets directly from the current plan into a Traditional IRA.  With this type of roll over, you will pay no taxes now but will pay taxes when you withdraw the funds in retirement.  If you would rather not have to pay taxes on your retirement assets during retirement, you can roll your 401(k) over to a Roth IRA.  You will be subject to a one-time tax at the time of roll over but will be able to make tax free withdrawals in retirement.  PFSG can review all of your roll over options and recommend the best strategy.

• How can I prepare to retire early?
• Retiring early can be a reality with an aggressive savings strategy and the right financial plan.  It can be difficult to focus on retirement when you are young, but planning ahead will ensure you can accomplish your retirement goals.  PFSG will asses your income, assets, and time horizon and will develop a financial plan that will prepare you and your family for retirement. 

Estate planning

• How do I select a beneficiary for my IRA ?
• Whom you select as beneficiary plays an important role in IRA distributions, both for you and for the person you designate.  Naming a spouse as beneficiary is the least complicated situation.  Under current law, your husband or wife can decide how and when to receive your IRA proceeds, and the proceeds may not be subject to estate taxes.  If you designate another family member or friend, the funds are subject to estate and income taxes which could be substantial when you become deceased.  If you are married but wish to name a person other than your spouse as beneficiary, usually your spouse must agree before the designation can be finalized.  You can also greatly reduce federal estate taxes by naming a trust or estate as beneficiary.  You will also be able to stipulate how your money will be spent after your death.  It is also a good idea to select a contingent beneficiary if something happens to your original designee.  You should also reevaluate your decision of beneficiary from time to time to make sure you have selected the right person for current circumstances.  PFSG can work with you to designate the right beneficiary for your IRA and review it with you periodically.

• How can I incorporate life insurance into my existing 401(k) plan?
• Keep in mind that an estate plan benefits your loved ones after you become deceased.  Life insurance allows you to supplement your estate while providing funds for medical and funeral costs.  There are many types of life insurance to choose from.  If you want protection for a specific period of time, you may want to purchase term life insurance.  Another option is whole life insurance which remains in effect for your entire life.  Universal life insurance offers a wide range of choices in premium payments, allowing you to choose how much will be paid and when.  Variable life insurance is designed to grow.  This type of policy allows you to invest the cash value of your policy into various investments so the value has the potential to grow at a faster rate than in another type of plan.  PFSG can help you select the proper life insurance policy in conjunction with your comprehensive estate plan.