Yahoo! Finance Feature: Transitioning Into Retirement: A 2024 Financial Checklist→

Andrew Van Alstyne had the privilege to be featured in Yahoo! Finance to talk to readers about the preparing for retirement in 2024.

Andrew discusses a systematized checklist that can be utilized in the years leading up to, and then through, retirement.

Fiduciary Financial Advisors, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.

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Recent Articles Written by Andrew:

Recent Articles Andrew Has Been Featured In:

Financial Planning Feature: American's Top 5 Financial Regrets of 2023→

Andrew Van Alstyne had the privilege to be featured in Financial Planning to talk to readers about the financial regrets of 2023.

Andrew discusses how one of the biggest missed opportunities was missing out on higher yield savings accounts and how inflationary risk is all too often under valued for the impact in can have on the real rate of return of an investment.

Fiduciary Financial Advisors, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.

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Recent Articles Written by Andrew:

Recent Articles Andrew Has Been Featured In:

Yahoo! Finance Feature: 13 Key Signs You’ll Always Be Middle Class→

Andrew Van Alstyne had the privilege to be featured in Yahoo! Finance to talk to readers about the behaviors keeping them middle class.

Andrew discusses how certain financial habits are keeping high-income earners from elevating their socioeconomic position.

Fiduciary Financial Advisors, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.

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Recent Articles Written by Andrew:

Recent Articles Andrew Has Been Featured In:

Yahoo! Finance Feature: How Much the Average Florida Retiree Should Have in Their Savings Account→

Andrew Van Alstyne had the privilege to be featured in Yahoo! Finance to talk to readers about the factors to consider if you want to retire to the sunshine state.

Andrew discusses the benefits to consider when retiring to a state without income tax as well as strategies that can be applied more broadly.

Fiduciary Financial Advisors, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.

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Recent Articles Written by Andrew:

Recent Articles Andrew Has Been Featured In:

GoBankingRates Feature: Net Worth for Baby Boomers: How To Tell Whether You’re Poor, Middle Class, Upper Middle Class or Rich→

Andrew Van Alstyne had the privilege to be featured in GoBankingRates to talk to readers about gaining clarity on the blurred lines between classes in America.

Andrew discusses the differentiating factors in each wealth segment, and how to properly manage your assets based on the one you’re in.

Fiduciary Financial Advisors, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.

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Recent Articles Written by Andrew:

Recent Articles Andrew Has Been Featured In:

Yahoo! Finance Feature: Six Ways to Mitigate a Sudden Job Loss→

Andrew Van Alstyne had the privilege to be featured in Yahoo! Finance to talk to readers about the importance of being prepared at all times for the possibility of a job loss.

Andrew discusses why it is important to have a dedicated emergency fund along with tax efficient ways of further upskilling and educating oneself.

Fiduciary Financial Advisors, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.

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Yahoo! Finance Feature: Why Your Idea of Retirement May Be Wrong: And What You Can Do To Better Prepare→

Andrew Van Alstyne had the privilege to be featured in Yahoo! Finance to talk to readers about the importance of preparing for expenses in retirement.

Andrew discusses why retirees must plan on having similar, if not greater expenses in retirement to those they’re experiencing in their working years and how they can maximize their cash flow to support their financial independence.

Fiduciary Financial Advisors, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.

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What Teaching My Children About Finance Has Taught Me

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Are you as shocked as I am that financial literacy is not a mandated course in all school curriculums? I’m obviously biased on the subject and while you may not be as laser-focused as I am, it's a crucial life skill that can impact our financial well-being for years to come. As my children start their schooling, I won’t leave it up to chance that they will learn the fundamentals correctly.

While my children may only be five and two, I feel it’s never too early to start passing on some of my wisdom. With that being said, there are some key takeaways to consider if you elect to start these conversations with your children.

Keep it Simple at The Beginning

It is crucial to keep things simple when teaching children about money. Depending on their age, children may not even understand the concept of money, which is becoming increasingly difficult to grasp as we move further into the digital age. The transactional act of handing over physical currency in exchange for a good or service is extremely powerful in not only learning when they have run out of funds and to spend within their means, but it also involves an emotional experience in separating from one item of value to obtain another. Learning this fundamental concept will help lay the groundwork for more complex matters later in life.

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Get Specific About What They’re Saving For

As adults, the savings goals start to present themselves more naturally. Whether it’s retirement, your children’s college tuition, or purchasing a larger house. If I were to put my kids on the spot and ask them what their long-term goals are it would probably be to get candy after dinner, so to save for something even a week or two out may seem alien. But when the opportunity presents itself such as an interest in a new toy I capitalize on it by mentioning how if they saved (insert birthday, chore, etc.) money, they could buy it themselves.

The Money Needs to Go Somewhere

While I help my clients with their finances by making sure their assets are in the correct investment vehicles to achieve their goals, even a savings account is overkill for my children at the moment plus, that would take away from the tangible transactional experience mentioned above. Yet placing it in a sock drawer or worse, immediately into their pocket, isn’t the solution either. Whether it is a family heirloom piggy bank or an empty jar, the money needs to have a defined place to go where they (once again) need to physically take it out if they intend on spending it. An additional measure that I’ve taken with my oldest is to have her manage a balance sheet that we reconcile every few months (as there isn’t enough cash flow for monthly/weekly balancing just yet.)

Let Them Vote

If you want your child to gain financial literacy then they need to have a say in their finances. Constantly telling them what decisions should be made and how to direct their funds, they won’t develop the skills and habits to make the correct decisions on their own. Just remember to take it easy on them when there is a mistake, while a $3 misspend may not be a big deal to us, it can be devastating to a child who was intending on a bigger purchase and they can now no longer afford it. I recommend extending grace if it is a rare occurrence and tightening up if it starts to present itself as more of a habit.

It’s Okay to Incentivize

As adults, we have plenty of reasons to put money aside, whether it's for an employer match or as part of a strategy to minimize tax liability. So why should it be any different for kids? I encourage my children to save by offering to match an additional fifty cents for every dollar they can save for a month. Additionally, I offer extra matches and savings incentives around vacation time. I'll match a percentage of their savings leading up to vacation and offer an additional match for every dollar they bring back home. My kids seem to enjoy the process of saving and planning, and it's a great way to teach them about money management. While these strategies may not work for everyone, I believe it's okay to pay more for good financial behavior.

Looking Into The Future

As they get older, we will begin opening up bank accounts that will develop a deeper understanding and appreciation of the varying accounts that can be utilized in achieving long-term goals. Eventually, I’ll have to succumb to letting my children have access to electronic forms of payment. The initial foray will be a debit card linked to a checking account with minimum funding as to avoid the temptation of blowing through all of their savings.

Of course, once they begin to earn a paycheck, we will incorporate more complex systems and budgeting measures, but by starting small now there will be plenty of runway ahead of us to ensure that they are well-equipped to make smart financial decisions by the time they reach adulthood.

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Fiduciary Financial Advisors, LLC is a registered investment adviser and does not give legal or tax advice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. The information contained herein has been obtained from a third-party source which is believed to be reliable but is subject to correction for error. Investments involve risk and are not guaranteed. Past performance is not a guarantee or representation of future results.

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Embracing Lifestyle Changes Over Strict Budgeting: A Sustainable Approach to Personal Savings

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If you’re looking to lose weight, instead of a diet, the focus should be on making lifestyle changes. Meaning that if you’re going to force yourself to eat certain foods, it won’t be sustainable, and you’ll be right back to where you started if it isn’t a change that will naturally fit within your lifestyle. 

The same philosophy should be applied when working towards saving for the future. The more the budget fits with your lifestyle, the more likely you are to follow it.

The 50/30/20 Budget Rule

One of the most common budgeting tactics is the 50/30/20 rule. It will assist you in living within your means and staying out of debt. Use the percentages below as a rough guide for how the percentages should play out:

• 50% For necessary expenses

  • 20-25% Housing

  • 10-15% Food

  • 5-10% Utilities

  • 5-10% Transportation

  • 5-10% Healthcare

• 30% For lifestyle expenses

  • 5-10% Recreation/Entertainment

  • 5-10% Consumer goods

  • 5% Miscellaneous

• 20% For Savings

Keep in mind that these percentages should be based on your take-home pay (after tax). Additionally, your budget for savings should be prioritized after necessary expenses but before lifestyle.

Avoid a Mindset of Constriction

Remember how I mentioned earlier that sustainability was the key to a successful "diet" strategy? The 50/30/20 budget plan includes discretionary expenses to enable you to enjoy occasional treats that make life worth living. Being too strict with yourself can be counterproductive, as it may lead to excessive purchases driven solely by emotion due to the stress of trying to stick to the budget.

But Be Prepared to Have to Make Hard Decisions When Setting Up Your Budget

While it's important to include discretionary spending in your budget, keep in mind that it should be the last category to consider. The preceding categories may exceed the recommended ratios meaning you may not have the full 30% to spend here. For example, if you live in a high-cost-of-living area, your necessary expenses may exceed  50%. This may sound in opposition to the enjoyment mentioned previously, but the difficult (and oftentimes stressful) decisions being made here are when you sit down to plan out your budget in advance of expenses.  This will lead to the ability to avoid making stressful decisions in the moment.

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Flexibility is Key

It’s perfectly acceptable to get very, very intentional for short periods to achieve goals. Want to buy a new car and pay cash? Go on a lavish trip? Pay off your mortgage 5 years early? These are rather lofty examples but regardless, if the goal you set is what will bring you joy, then by all means get after it. Keep in mind, if your budget is too tight you’ll have trouble sticking to it for extended periods and the extra savings amount will have to come from your lifestyle expenses.

Reflection and Adaptation

When you’re drawing up your first budget, reference historical data and avoid guestimating amounts. Ideally, you want to review six to twelve months of financial statements to ensure you’re able to spot trends in expenses. The great thing about this exercise is you’ll probably find expenses that you either weren’t aware you were still paying or are more than what you thought it costs.

Pay Yourself First

I alluded to this earlier but saving for your future should always precede your current lifestyle. You should establish a savings account that is linked to your employer for direct deposit. From that account, you can then transfer the EXACT dollar amount you budgeted for to your checking account where all outgoing payments will be transacted.

Ideally, there will be excess funds left in the savings account at the end of every month (and as you improve, it’ll be more than 20% of your post-tax income) This is the simplest, and most cost-effective way to ensure that you pay yourself first.

Review and Improve

The more frequently you can track and review your progress, the less likely you are to deviate from the plan. A bare minimum should be a monthly review but for the first few months, daily reviews would be best.

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Fiduciary Financial Advisors, LLC is a registered investment adviser and does not give legal or tax advice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. The information contained herein has been obtained from a third-party source which is believed to be reliable but is subject to correction for error. Investments involve risk and are not guaranteed. Past performance is not a guarantee or representation of future results.