Edward Jones - Chad Choate, AAMS

Katherine Tierney, CFASenior Retirement Strategist, Client Needs ResearchKey pointsDeciding how much to save for retirement can be confusing.Average savings benchmarks can show how you compare with others in your age bracket, but not how prepared you are to meet your individual needs. Determining that will require different tools and benchmarks.Your financial security after retirement will be unique to you: It will depend on things you control, such as spending habits and savings and things you dont, such as financial market volatility and tax rates.To help you get started on an effective long-term strategy, weve calculated broad estimates of how much you should have saved during each decade of your career.How much should I save for retirement?The bottom-line goal of retirement planning is deceptively simple: accumulating enough money to live the life you want once your career is no longer occupying most of your time or generating a regular paycheck.Achieving that goal requires asking questions that have no easy answers: How much money will you need? How can you measure your progress toward a target decades in the future?A financial advisor can help you with those questions, then tailor a financial strategy to help you meet your individual goals.Often, people trying to figure out how well theyre doing begin by comparing their own savings with those of others in the same age bracket. If youre curious how you stack up, data collected by the Federal Reserve in its 2019 Survey of Consumer Finances, shown below, can tell you. What those numbers cant do, though, is tell you how close you are to your goal.Using them as a gauge is a little like comparing your SAT score with the average of your graduating class in high school to determine whether its high enough to get you into a particular university.The one piece of data thats crucial is the average SAT score of the freshmen the university admitted. Without that data point, you have no idea whether your score meets the institutions standards.Average retirement savings by ageSource: Federal Reserve Survey of Consumer Finances, 1989-2019; https://www.federalreserve.gov/econres/scfindex.htmChart descriptionIts the same with retirement: The relevant data point isnt what others your age have saved but how much money you need yourself. The answer depends almost entirely on you, your habits now and your plans for later.For example, whats your average monthly spending today and do you expect to maintain it after retirement? Do you expect to relocate? If so, will you live in a region where the cost of living is higher or lower than where you are now? How do you plan to spend your time traveling the world in style or volunteering in your neighborhood and working in your garden?To help you begin evaluating your progress, weve developed generalized benchmarks, below, that are more useful, and more detailed, than average savings levels for someone retiring at age 65.Retirement savings goalposts by ageBelow you'll find generalized age- and salary-benchmarks for investment levels that might let you retire comfortably, using broad assumptions about factors including taxes and spending preferences. For example, if you are 29, making $100,000, you would want a savings of $15,000 - $90,000 to maintain your current lifestyle. (The higher and lower ends of the range reflect differing assumptions about market volatility during your career.)20s (Ages 20-29)Age$50,000 salary$100,000 salary$150,000 salary$200,000 salary20$0 - $0$0 - $0$0 - $40,000$0 - $140,00021$0 - $0$0 - $0$0 - $65,000$10,000 - $175,00022$0 - $0$0 - $0$0 - $90,000$45,000 - $210,00023$0 - $0$0 - $0$0 - $115,000$75,000 - $250,00024$0 - $5,000$0 - $5,000$20,000 - $140,000$110,000 - $285,00025$0 - $10,000$0 - $20,000$45,000 - $170,000$145,000 - $325,00026$0 - $20000$0 - $35,000$70,000 - $195,000$180,000 - $365,00027$0 - $25,000$0 - $55,000$95,000 - $225,000$215,000 - $405,00028$0 - $35,000$0 - $70,000$120,000 - $255,000$250,000 - $450,00029$5,000 - $45,000$15,000 - $90,000$150,000 - $285,000$290,000 - $495,00030s (Ages 30-39)Age$50,000 salary$100,000 salary$150,000 salary$200,000 salary30$15,000 - $55,000$30,000 - $105,000$175,000 - $320,000$330,000 - $540,00031$25,000 - $60,000$45,000 - $125,000$205,000 - $35,0000$370,000 - $585,00032$30,000 - $70,000$60,000 - $145,000$230,000 - $385,000$410,000 - $635,00033$40,000 - $80,000$80,000 - $165,000$260,000 - $420,000$455,000 - $685,00034$50,000 - $90,000$95,000 - $185,000$295,000 - $455,000$495,000 - $735,00035$60,000 - $100,000$115,000 - $205,000$325,000 - $490,000$545,000 - $785,00036$65,000 - $115,000$135,000 - $225,000$355,000 - $525,000$590,000 - $840,00037$75,000 - $125,000$155,000 - $245,000$390,000 - $565,000$640,000 - $895,00038$85,000 - $135,000$175,000 - $270,000$420,00 - $605,000$685,000 - $950,00039$95,000 - $145,000$195,000 - $29,5000$460,000 - $645,000$740,000 - $1,010,00040s (Ages 40-49)Age$50,000 salary$100,000 salary$150,000 salary$200,000 salary40$105,000 - $160,000$215,000 - $315,000$500,000 - $690,000$790,000 - $1,070,00041$120,000 - $170,000$235,000 - $340,000$535,000 - $730,000$845,000 - $1,135,00042$130,000 - $185,000$260,000 - $365,000$575,000 - $775,000$900,000 - $1,195,00043$140,000 - $195,000$280,000 - $395,000$615,000 - $820,000$955,000 - $1,260,00044$155,000 - $210,000$305,000 - $420,000$655,000 - $870,000$1,01,5000 - $1,330,00045$165,000 - $225,000$330,000 - $450,000$695,000 - $915,000$1,075,000 - $1,400,00046$175,000 - $240,000$355,000 - $475,000$740,000 - $965,000$1,140,000 - $1,470,00047$190,000 - $255,000$380,000 - $505,000$785,000 - $1,020,000$1,200,000 - $1,545,00048$205,000 - $270,000$405,000 - $535,000$830,000 - $1,070,000$1,270,000 - $1,620,00049$215,000 - $285,000$435,000 - $565,000$880,000 - $1,125,000$1,335,000 - $1,700,00050s (Ages 50-59)Age$50,000 salary$100,000 salary$150,000 salary$200,000 salary50$230,000 - $300,000$465,000 - $600,000$930,000 - $1,180,000$1,405,00 - $1,780,00051$245,000 - $315,000$490,000 - $630,000$980,000 - $1,240,000$1,475,000 - $1,860,00052$260,000 - $335,000$520,000 - $665,000$1,030,000 - $1,300,000$1,550,000 - $1,945,00053$275,000 - $350,000$550,000 - $700,000$1,085,000 - $1,360,000$1,625,000 - $2,035,00054$290,000 - $370,000$585,000 - $735,000$1,135,000 - $1,420,000$1,705,000 - $2,125,00055$310,000 - $385,000$615,000 - $775,000$1,195,000 - $1,485,000$1,785,000 - $2,215,00056$325,000 - $405,000$650,000 - $810,000$1,250,000 - $1,555,000$1,870,000 - $2,315,00057$340,000 - $425,000$685,000 - $850,000$1,310,000 - $1,620,000$1,955,000 - $2,410,00058$360,000 - $445,000$720,000 - $890,000$1,370,000 - $1,690,000$2,040,000 - $2,510,00059$380,000 - $46,5000$755,000 - $930,000$1,435,000 - $1,765,000$2,135,000 - $2,615,00060s (Ages 60-69)Age$50,000 salary$100,000 salary$150,000 salary$200,000 salary60$395,000 - $485,000$795,000 - $975,000$1,500,000 - $1,840,000$2,225,000 - $2,725,00061$415,000 - $510,000$830,000 - $1,020,000$1,565,000 - $1,915,000$2,320,000 - $2,835,00062$435,000 - $530,000$870,000 - $1,065,000$1,635,000 - $1,995,000$2,420,000 - $2,945,00063$455,000 - $555,000$910,000 - $1,110,000$1,705,000 - $2,075,000$2,520,000 - $3,065,00064$475,000 - $580,000$955,000 - $1,155,000$1,780,000 - $2,160,000$2,625,000 - $3,185,00065$500,000 - $605,000$995,000 - $1,205,000$1,855,000 - $2,245,000$2,735,000 - $3,305,000

For more information on the author, Edward Jones, CLICK HERE!This study builds on the landmark study from 2020 which explored the four pillars of living well in retirement health, family, purpose and finances. This new study reveals how the timing and funding of retirement are being adjusted, shining a spotlight on the importance of purpose and contribution post-work, and describes what Americans now say are the most critical aspects of both the financial and non-financial elements of comprehensive retirement planning.76% of Americans credit the pandemic with helping them "refocus on what's more important in life."View 2021 ReportThe Four Pillars of the New RetirementOur study surveyed 9,000 North Americans across five generations and identified four areas (dubbed the Four Pillars) that impact the quality of life in retirement: health, family, purpose and finances. Achieving your ideal retirement requires thought and action about each of these pillars.Most retirees wish they had done a better job planning for the financial (61%) and non-financial (54%) aspects of retirement.2Pillar 1: HealthPart of what's new about retirement is a longer lifespan and more years in this life stage. Good health offers choices. Unfortunately, most adults spend 10 years in poor health. The most feared condition in America is Alzheimer's and other forms of dementia.90% of Americans older than 50 say that being healthy is about being able to do the things you want.1Pillar 2: FamilyFamily is the greatest source of satisfaction, support and purpose. On the one hand, adults 50+ worry about becoming a burden on their families. On the other hand, they are willing to offer financial support to family regardless of how it affects their future.72% of retirees say being a burden to their family is one of their top fears, but one in four Americans older than 65 have not discussed their end-of-life care preferences with anyone at all.1Pillar 3: PurposeRetirees say their greatest source of purpose is from spending time with loved ones. They also value learning and growing. Yet now, with more than seven hours a day of free time, one in three new retirees struggles to find purpose in retirement.89% of Americans feel there should be more ways for retirees to use their talents and knowledge for the benefit of others.1Pillar 4: FinancesThe role of money in retirement is to provide security and freedom. Over half of retirees wish they had budgeted more for unexpected expenses. When it comes to the unexpected, the cost of health care is more worrisome than a recession.Two-thirds of Americans who plan to retire in the next 10 years say they have no idea what their health and long-term care costs will be in retirement.1

We all make mistakes in many areas of life. These mistakes are usually fairly harmless we took a wrong turn while driving, used the wrong ingredients in a recipe and so on. But sometimes, our mistakes can be costly especially those connected to investing.Here are some of the most common investment mistakes: Too much buying and selling Some people find it exciting to constantly buy and sell investments in the pursuit of big gains. Yet, frequent trading can work against you in a couple of ways. First, it can be expensive if youre always buying and selling investments, you could rack up taxes, fees and commissions. Perhaps even more important, though, excessive purchases and sales can make it difficult to follow a unified, cohesive investment strategy. Such a strategy requires, among other things, careful construction and management of an investment portfolio thats appropriate for your goals, risk tolerance and time horizon. Heavy trading can disrupt this strategy. Failing to diversify If you only owned one type of asset, such as growth-oriented stocks, your portfolio could take a hit when the financial markets go through a downturn. But not all investments will respond the same way to the same forces for example, stocks and bonds can move in different directions at any given time. And thats why its usually a good idea to own a mix of investments, which can include domestic and foreign stocks, bonds, certificates of deposit (CDs) and government securities. Keep in mind, though, that while diversification can help reduce the impact of market volatility, it cant guarantee profits or protect against losses in a declining market. Trying to time the market Buy low and sell high might be the original piece of investment advice, but its pretty hard to follow because no one can really predict when an investment will reach low or high points. Also, trying to time the market in this way can lead to bad decisions, such as selling investments whose price has dropped, even if these same investments still have good business fundamentals and strong prospects. Not understanding what youre investing in If you dont know the nature of investments when you buy them, you could set yourself up for unpleasant surprises. For example, some companies, by the very nature of their business and the type of industry theyre in, may consistently pay dividends to their investors even though their stock prices may only show relatively modest price gains over time. If you bought shares of this stock, thinking it had the potential to achieve quite substantial appreciation, you might end up disappointed. Making the wrong comparisons Youre no doubt familiar with some of the most well-known investment benchmarks the S&P 500, Dow Jones Industrial Average and the Nasdaq Composite. But it might be counterproductive to compare your results against these indexes. If you have a diversified portfolio, youll own an array of investments that wont fit into any single index or benchmark, so you wont get an apples-to-apples comparison. Youre better off comparing your portfolios performance against the only benchmark that really matters the progress you need to make to help achieve your goals.Investing will always have its challenges but you can help make it easier on yourself by staying away from as many mistakes as possible.Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.choate@edwardjones.comThis article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC

If you own a business and you offer a 401(k) or similar retirement plan to your employees, youll want to stay current on the various changes affecting these types of accounts. And in 2024, you may find some interesting new developments to consider.These changes are part of the SECURE 2.0 Act, enacted at the end of 2022. And while some parts of the law went into effect in 2023 such as the new tax credit for employer contributions to start-up retirement plans with 100 or fewer employees  others were only enacted this year.             Here are some of these changes that may interest you: New starter 401(k)/403(b)  If you havent already established a retirement plan, you can now offer a starter 401(k) or safe harbor 403(b) plan to employees who meet age and service requirements. These plans have lower contribution limits ($6,000 per year, or $7,000 for those 50 or older) than a typical 401(k) or 403(b) and employers cant make matching or nonelective contributions. These plans are low-cost and easy to administer but the credit for employer contributions doesnt apply, as these contributions arent allowed, and since start-up costs are low, the tax credit for these costs will be correspondingly lower than theyd be for a full-scale 401(k) plan. Matches for student loan payments Its not easy for young employees to save for retirement and pay back student loans. To help address this problem, Congress included a provision in Secure 2.0 that allows employers the option to provide matching contributions to employees retirement plans (401(k), 403(b), 457(b) and SIMPLE IRAs) when these employees make qualified student loan payments. Of course, if you offer this match for student loan payments, your costs will likely increase, although these matching contributions are tax deductible. In any case, you may want to balance any additional expense with the potential benefit of attracting and retaining employees, particularly those who have recently graduated from college. 401(k) eligibility for part-time employees Part-time employees who are at least 21 years old and have at least 500 hours of service in three consecutive years must now be eligible to contribute to an existing 401(k) plan. The inclusion of part-time employees could lead to higher business expenses for you, depending on the amount of contributions you may make to employees plans. Again, though, youd be offering a benefit that could be attractive to quality part-time employees.             Emergency savings account Many people, especially those who dont earn high incomes, have trouble building up emergency funds they can tap for unexpected costs, such as a major home or car repair or large medical expenses. Now, if you offer a 401(k), 403(b) or 457(b) plan, you can include a pension-linked emergency savings account (PLESA) that allows non-highly compensated employees to save up to $2,500, a figure that will be indexed for inflation in the future. PLESA allows for tax-free monthly withdrawals without incurring a 10% tax penalty. PLESA contributions are made on an after-tax (Roth) basis and must be matched at the same rate as other employee contributions.              You may want to consult with your tax and financial professionals to determine how these changes may affect what you want to do with your retirement plan. The more you know, the better your decisions likely will be.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445Chad.choate@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

If youre a parent, you want to do everything you can to help your children succeed in life. Therefore, you might think that one of the best things you can do is to save for your childrens college education. And this is certainly admirable, but could it conflict with your ability to prepare for another key goal your own retirement?Of course, this would not be a problem if you had unlimited means, but most of us dont fall into that category. So, given the financial resources and income you do have, how should you approach the college-versus-retirement issue?Fortunately, its not necessarily an either-or scenario. However, it may make sense to prioritize saving for retirement over college, for two reasons.First, your children have a lot more time to pay for college than you have to save for retirement. In addition to any grants or scholarships your children may receive, they might need to take out loans. While its a good idea to keep this debt load as manageable as possible, its also true that most student loans can be repaid over a long period of time.And heres the second point: One of the best gifts you can give your children is to be self-sufficient in your retirement. You could easily spend two, or even three, decades as a retiree, so you will need to build considerable financial resources to pay for all those years. Your adult children will have their own financial needs to address, so youll be doing them a great favor by relieving them of any financial responsibilities on your behalf. Taking these factors into account, you may want to direct most of your saving and investing efforts toward achieving a comfortable retirement. Consequently, think about putting away as much as you can afford into your IRA and 401(k) or other employer-sponsored retirement plan. Even with this focus on retirement, though, you may find opportunities to save and invest for your childrens education. For example, if you receive bonuses or income tax refunds, or your salary goes up, or youre able to free up money from your budget by reducing your debts, you could use these funds to invest in an education savings vehicle, such as a 529 plan. When you invest in a 529 plan, your earnings and withdrawals are federally tax free, provided the money is used for qualified education expenses such as tuition, room and board, books, and computers. Depending on where you live, you may also get some state tax benefits from your 529 plan. And a 529 plan isnt just for college it can be used for K-12 private school tuition costs, plus expenses from qualified apprenticeship programs, such as those found at trade schools eligible for Title IV federal student aid.It might not be easy to save and invest consistently for your retirement and your childrens education. But both goals are worthy after all, retirement can last a long time and college is expensive. So, try to develop a financial strategy that can allow you to make progress in both areas your efforts may well be rewarded.             Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.   

You may have read reports about an impending debt crisis in the U.S. Should you be worried about investing in Treasury securities?Part of the concern over debt has been driven by the cost of government borrowing, which has risen because of higher interest rates. But its worth noting that while interest expenses have risen to nearly 2% of gross domestic product (GDP), this measure had exceeded 3% in the early 1990s. So, while the upward trend of federal debt could prove problematic down the road, the claims of a current crisis may be overblown. And Treasury securities are still considered among the safest investments in the world, as they are secured by the full faith and credit that is, the ability to borrow and tax of the United States. In any case, if you havent invested in Treasury securities, youll want to know the basics. First of all, when you purchase a Treasury security, youre lending money to the federal government for a specific period of time.Here are your purchase options:  Treasury bill Typically matures in four, 13 or 26 weeks, although some have maturities of up to a year. Treasury note  Matures between one and 10 years. Treasury bond  Typically matures in 10 to 30 years. When you buy Treasury notes or bonds, you receive semiannual interest payments, but when you purchase a Treasury bill a T-bill you generally buy it a discount, and when the bill matures, you receive its face value. So, for instance, you might pay $4,700 for a 13-week T-bill and get $5,000 back at the end of the three months.When investing in Treasury securities, youll want to keep these features in mind: Price fluctuation While your interest payments will always remain the same, the market value of your Treasury security can change. So, you might not get face value for a Treasury bond if you sell it before it matures, particularly if market interest rates are higher than the rate youve been receiving. Because longer-term bonds have more payments left to make than shorter-term ones, they are more sensitive to interest rate changes and market price fluctuations. Taxes Interest income from Treasury securities is subject to federal income tax but exempt from state and local taxes. In addition to the traditional Treasury bonds, bills and notes, another option is available: Treasury Inflation-Protected Securities (TIPS). Unlike other Treasury securities, in which the principal is fixed, the principal of a TIPS can move up or down, based on movements in the Consumer Price Index for Urban Consumers (CPI-U). Once your TIPS matures, if the principal is higher than the original amount, youll get the increased amount; if the principal is equal to or less than the original amount, youll get the original amount. TIPS pay a fixed interest rate semiannually until maturity, but because interest is paid on the adjusted principal, the amount of your interest payments can vary. As with other Treasury securities, you can hold a TIPS until maturity or sell it before it matures. Dont let scary or gloomy predictions discourage you from considering Treasuries they remain a good option as part of the fixed-income portion of your investment portfolio.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com  This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.  Edward Jones, Member SIPC

As you go through life, youll have various financial goals and to achieve them, youll need to invest. But just recognizing the need to invest is not as useful as matching specific types of accounts or investments with specific goals. How can you make these connections?Lets look at some common goals and how they could possibly be met with appropriate accounts and investments: Saving for a down payment on a house  When youre saving for a down payment, you want a certain amount of money available at a certain time so, for this goal, you wont want to take too much risk. Consequently, you might consider investing in certificates of deposit (CDs), which will pay you regular interest payments and return your principal when the CDs mature. CDs are issued in a range of maturities, from one month to 10 years. Other vehicles you might consider are money market accounts or other cash equivalents.   Saving for a childs education  If you have children, and youd like to help them pay for some form of higher education, you may want to consider a 529 education savings plan. Any earnings growth in a 529 plan is federally tax free, provided the withdrawals are used for qualified education expenses, and you may also receive state tax benefits. A 529 plan can be used for college, approved trade school programs, student loan repayments and some K-12 costs. And if the child youve named as a beneficiary chooses not to continue their education, and doesnt need the money in a 529 plan, you can generally switch beneficiaries to another immediate family member.  Saving for retirement  This is the one goal that will remain consistent throughout your working years  after all, you could spend two or even three decades in retirement, so youll need to accumulate as many financial resources as you can to pay for those years. Fortunately, you likely have access to several good retirement-savings vehicles. If you work for a business, you might have a 401(k) plan, which offers you the chance to put away money on a tax-deferred basis. (If you have a Roth option in your 401(k), your withdrawals can be tax free, although, unlike a traditional 401(k), your contributions wont lower your taxable income.) If you work for a public school or a nonprofit organization, you may be able to participate in a 403(b) plan, which is quite similar to a 401(k), and the same is true if you work for a state or local government, where you might have a 457(b) plan. And even if you invest in any of these plans, you can probably also contribute to an IRA, which gives you another chance to invest on a tax-deferred basis (or tax-free basis, if youre eligible for a Roth IRA). Try to take full advantage of whatever retirement plans are available to you.Here's one final point to keep in mind: While some investments and accounts are appropriate for certain goals, they may not necessarily be suitable for your individual situation  so keep all your options in mind and take the steps that are right for you.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC 

A qualified charitable distribution (QCD) is a distribution from a traditional or Roth IRA made directly by the IRA trustee to a qualified charitable organization when the IRA owner is age 70 or older. A QCD may satisfy the clients required minimum distribution (RMD) and, for 2024, up to $105,000 of QCDs may be excluded annuallyfrom an individuals taxable income. Also for 2024, distributions are limited to a one-time $53,000 donation. These limits are adjusted annually for inflationEligibilityA qualified charitable distribution may be made:    When the IRA holder is age 70 or older    Directly from the IRA to a qualified charity    From a traditional or Roth IRA Qualified charitiesGenerally, a qualified charity includes most public charities that are eligible to receive tax-deductible contributions including religious institutions, certain veterans organizations, fraternal societies and community foundations that provide scholarships. LimitationsRestrictions set on QCDs include the following:           Distributions must be transferred to the charity no later than Dec. 31 of the current tax year.    Deductible contributions made during or after the year an individual reaches age 70 will reduce the amount that may be excluded.    QCD must be a direct IRA distribution from the IRA custodian or trustee to a qualified charity.    Not all charitable organizations qualify.          QCDs are applicable only for traditional and Roth IRA distributions (excludes SEP and SIMPLE IRAs).Making a QCD provides an opportunity to makea charitable contribution that you might otherwise not have been able to make and/or receive potential tax benefits for charitable contributions that you are already making. You should consult your tax advisor and estate-planning attorney about your situation. Edward Jones, its financial advisors and employees do not provide tax or legal advice. Key benefits     For those who give larger gifts Deductibility limits do not apply to QCDs, which means the QCD can be made in addition to other charitable contributions that may be limited by the annual maximum deductible percentage of income or phaseouts of itemized deductions.    For those who dont itemize deductions If QCDs are used as the funding source for charitable donations, the donor will receive tax benefits when there otherwise would have been none due to the use of the standard deduction.    For those who pay taxes on a portion of their Social Security benefits Income for determining the taxation of Social Securitybenefits is lower than if the IRA holder had taken the RMD, potentially reducing this taxation.     For those whose income level subjects them to tax on net investment income, or phaseout of personal exemptions or itemized deductions A QCD made in lieu of an RMD will result in lower adjusted gross income for the IRA holder, which may lessen the effect of this tax or applicable phaseouts.

We all hope to remain healthy and independent throughout our lives but life can be unpredictable. If you were ever to need some type of long-term care, would you be financially prepared?Long-term care encompasses everything from the services of a home health aide to a stay in an assisted living facility to a long residence in a nursing home. You may never need any of these kinds of care, but the odds arent necessarily in your favor: Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and support in their remaining years, according to the U.S. Department of Health and Human Services.And all types of long-term care can involve considerable financial expense. The median annual cost for a home health aides services is more than $60,000 per year, and its more than $100,000 per year for a private room in a nursing home, according to Genworth, an insurance company. Furthermore, contrary to many peoples expectations, Medicare usually pays very little of these costs. Of course, some people expect their family will be able to take care of their long-term care needs. But this may not be a viable strategy. For one thing, your family members simply may not have the skills needed to give you the type of care you may require.  Also, by the time you might need help, your grown children or other family members might not live in your area. So, you may need to protect yourself and your loved ones from the potential costs of long-term care. Basically, youve got two main choices: You could self-insure or you could transfer the risk by purchasing some type of long-term care insurance. If you have considerable financial resources, you might find self-insuring to be attractive, rather than choosing insurance and paying policy premiums.  You may wish to keep an emergency savings or investment account thats earmarked exclusively for long-term care to help avoid relying on your other retirement accounts. But self-insuring has two main drawbacks.  First, because long-term care can be costly, you might need to plan for a significant amount. And second, it will be quite hard to predict exactly how much money youll need, because so many variables are involved your age when you start needing care, interest rates or inflation, the cost of care in your area, the type of care youll require, the length of time youll need care, and so on. As an alternative to self-insuring, you could purchase long-term care insurance, which can provide benefits for home health care, adult day care and assisted living and nursing home facilities. However, you will need to consider the issues attached to long-term care insurance. For one thing, it can be expensive, though the younger you are when you buy your policy, the more affordable it may be. Also, long-term care policies typically require you to wait a certain amount of time before benefits are paid. But policies vary greatly in what they offer, so, if you are thinking of buying this insurance, youll want to review options and compare benefits and costs.In any case, by being aware of the potential need for long-term care, its cost and the ways of paying for it, youll be able to make the appropriate decisions for your financial situation, your needs and your loved ones.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com  Edward Jones is a licensed insurance producer in all states and Washington, D.C., through Edward D. Jones & Co., L.P. and in California, New Mexico and Massachusetts through Edward Jones Insurance Agency of California, L.L.C.; Edward Jones Insurance Agency of New Mexico, L.L.C.; and Edward Jones Insurance Agency of Massachusetts, L.L.C. California Insurance License OC24309  This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

The school year will soon be here. And if you have young children, youre one year closer to the day when they may be headed off to college. When that day arrives, will you be financially prepared?            College isnt cheap. For the 202324 academic year, the average cost including tuition, fees, housing, food, books, transportation and other expenses was nearly $29,000 for in-state students at four-year public colleges and universities, and about $60,000 for private schools, according to the College Board. Most students do get some type of financial aid or scholarships, or both, but even the net price of college can be considerable. So, its a good idea to begin a savings program as early as you can.            One popular way to build money for college expenses is through a 529 education savings plan. When you invest in a 529 plan, your earnings can grow tax deferred and your withdrawals are federally tax free when used for qualified education expenses tuition, fees, books and so on. And while you can invest in any states 529 plan, you might be able to deduct your contributions from your state income tax or receive a state tax credit if you invest in your own states plan.Despite these tax benefits, some people are concerned that a 529 plan can prove costly in terms of lost financial aid. And the value of a 529 plan is looked at as an investment asset on the Free Application for Federal Student Aid (FAFSA). However, recent changes to FAFSA may mean that a 529 plan has a relatively small effect on the amount of aid you may receive.            A 529 plan also can be used to pay for other costs, including:   K-12 expenses You can use a 529 plan to pay K-12 expenses, up to $10,000 per student per year. Not all states comply with this 529 expansion for K-12, so you might not be able to claim deductions and your withdrawals could be subject to state tax penalties.              Apprenticeship programs  A 529 plan can be used to pay for most expenses connected to apprenticeship programs registered with the U.S. Department of Labor. These programs are often available at community colleges and combine classroom education with on-the-job training.             Student loans  You can withdraw funds from a 529 plan to repay qualified federal private and student loans, up to $10,000 for each 529 plan beneficiary and another $10,000 for each of the beneficiarys siblings.            Another potential advantage of a 529 plan is its transferability. If youve named a child as a 529 plan beneficiary, and that child eventually chooses not to pursue any post-secondary education, you as the account owner  can name another family member as beneficiary. And with the passage of the SECURE 2.0 Act, any unused 529 plan funds up to a lifetime limit of $35,000 can be transferred to a Roth IRA for a beneficiary, free of taxes and penalties. There are certain rules governing this 529-to-Roth move for example, you must have had your 529 plan at least 15 years so youll want to consult with your tax advisor before making any moves in this area.            If youd like to invest in your childrens future education, a 529 plan can be a good choice so study up on it soon. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC

Investments can play an important role in helping you achieve your financial goals. Building an investment portfolio, though, can feel overwhelming. There are so many different ways to invest and save for your future. Working with someone you trust and focusing on a defined set of steps, centered around what youre trying to achieve, can make the process much easier and personalized to you.Therefore, we recommend working with your financial advisor on these steps to building a portfolio:Identify your goalsWeigh your comfort with riskUnderstand your time horizonAgree on an optimal portfolio mixEnsure proper diversification1. Identify your goalsWhen it comes to creating an investment portfolio, it all starts with you and your aspirations. Therefore, before you begin choosing how to invest, we want you to think about why youre investing, as well as your motivations and the values driving them. What matters most to you? Its important that your investment portfolio is based on an objective that helps you achieve your unique financial goals. After all, the biggest risk you face is not in the stock market its not reaching your long-term goals.Additionally, you likely have multiple goals, each with a distinct purpose and time horizon. Your financial advisor can help you balance and prioritize all you're working to achieve. Together, you can develop a financial strategy that incorporates your investment objectives by considering topics such as:What you would like retirement to look likeIf youd like to contribute to a childs or grandchilds educationIf you plan make a large purchase, such as a home or a carIf you want to start a businessIf you want to leave a financial legacy to your children or heirs2. Weigh your comfort with riskAssessing your comfort with risk is important because its unlikely youll reach your long-term goals if you abandon your strategy during the inevitable short-term market decline. Determining and periodically revisiting your comfort level with risk can help you avoid some emotional investing mistakes, such as chasing performance.Growth investments, such as stocks or stock mutual funds, may experience more market volatility than more income-oriented investments, such as bonds or bond mutual funds, but can provide opportunities for higher returns. Appropriate diversification across quality, long-term investments can help align the risk of your portfolio with your comfort level. Finding that right balance can help you stay on the path toward your investment strategy. Typically, your financial advisor will ask you to complete a questionnaire that can gauge how you might react to risk in different situations. If youre building an investment portfolio with your partner or spouse, this is an important topic to discuss with each other.3. Understand your time horizonYou need to determine when youll need your money, which is directly related to your financial goals. Each financial goal will probably have a different time horizon. For example, if youre saving for retirement, think about when you want to retire. If another goal is saving for college, your time horizon will be based on when your children will reach college age and how many years of school you plan to pay for.Typically, the longer you have to invest, the greater your ability to make up for potential market declines, possibly allowing you to consider investments with greater return potential. As your time horizon shortens, we recommend shifting to more conservative investments that typically have smaller price fluctuations.4. Agree on the optimal portfolio mixThere are risk and return expectations associated with each investment you choose. If an investment portfolio is made up primarily of fixed-income investments, it will likely have lower risk and lower return expectations. If an investment portfolio is more focused on equities, it will likely have higher risk and higher return expectations.Investing is all about balance. For your portfolio, we recommend choosing an appropriate mix between equity and fixed-income investments based on your unique situation, starting with your comfort with risk, time horizon and financial goal(s). Considering additional factors such as your retirement income needs, existing savings and whether you want to leave a legacy can also help you decide the most appropriate allocation to stocks and bonds.Evaluating how the risk and return characteristics of our portfolio objectives align with your situation can help you through this step in the process. This illustration can help you visualize the risk-return tradeoff as you move across portfolio objectives:Source: Edward JonesChart descriptionRetirement Portfolio MixesSource: Edward JonesThis graphic shows how your tolerance for risk (low, low to medium, medium, medium to high, or high) affects your portfolio objective at various periods in your life, from your early investing years to your later retirement years. So, for example, if you are in your high income and savings years (defined as having 15 years or less until retirement) and have a medium level of risk tolerance, your portfolio objective would likely be balanced toward growth, which emphasizes higher long-term growth and rising dividend potential, with a secondary goal of current interest income.College Education Portfolio MixesSource:  Edward Jones Investment Policy Committee. Growth focus: 80% stocks/20% bonds; Balanced toward growth: 65% stocks/35% bonds; Balanced growth & income: 50% stocks/50% bonds; Balanced toward income: 35% stocks/65% bonds; Income focus: 80% bonds/20% stocks; Preservation of principal: 50% cash and 50% short-term fixed income. Diversification does not guarantee a profit or protect against loss. Special risks are inherent to international investing, including those related to currency fluctuations and foreign political and economic events.5. Ensure proper diversificationOnce youve agreed on the mix of equity and fixed-income investments that aligns with your situation, we recommend building a portfolio diversified across a variety of asset classes. Asset classes are groups of investments that share similar risk and return characteristics. Since asset classes behave differently over time and its impossible to know which may be the best performer in any given year, having a diversified portfolio helps manage risk, creating a more solid foundation.Our long-term strategic asset allocation guidance represents our view of balanced diversification for the fixed-income and equity portions of a well-diversified portfolio, based on our outlook for the economy and markets over the next 30 years. Our recommended allocation to each asset class depends on the mix of equity and fixed-income investments you have chosen for your situation, as defined by our portfolio objectives.Source: Edward JonesChart descriptionDiversifying within each asset class, not just across asset classes, can also strengthen the foundation of your portfolio. Within equity asset classes, consider investing in stocks representing different sectors or styles. Within fixed income, consider investing in bonds representing different sectors, categories or maturities. Mutual funds and exchange-traded funds (ETFs) can provide a convenient way to diversify your investments as you begin building your portfolio.Start building your investment portfolio todayMaking sure you have the right investment portfolio for your financial goals can be easier to achieve when you partner with the right financial advisor. Edward Jones will help you build an investment portfolio that aligns with your financial goals now and in the future. Together, we can define your investment portfolio objectives.

You cant predict financial emergencies but you can prepare for them.             To do that, you can build an emergency fund to pay for unexpected expenses, some of which may be sizable. Without one, you might be forced to dip into your investments, possibly including your retirement accounts, such as your IRA or 401(k). If this happens, you might have to pay taxes and penalties, and youd be withdrawing dollars that could otherwise be growing over time to help pay for your retirement.             In thinking about such a fund, consider these questions: How much should I save? The size of your emergency fund should be based on several factors, including your income, your spouses income and your cost of living. However, for most people in their working years, three to six months of total expenses is adequate. Once youre retired, though, you may want to keep up to a years worth of expenses in your emergency fund because you dont want to be forced to cash out investments when their price may be down, and you may not be replenishing these accounts any longer. How can I build an emergency fund? Given all your normal expenses mortgage, utilities, food, transportation and others you might find it challenging to set aside some extra money in an emergency fund. But you do have opportunities. If youre working, you could set up a direct deposit so that part of your paycheck goes directly into your emergency fund. You could also save a portion of any extra income you receive, such as bonuses and tax refunds. Where should I keep the money? An emergency fund has two key requirements: You need to be able to access the money immediately and you need to count on a certain amount being available. So, its a good idea to keep your emergency fund in a liquid, low-risk account that offers protection of principal. For this fund, youre less interested in growth than you are in stability. But because interest rates have recently changed, you may be able to get a reasonable return without sacrificing liquidity or safety. What types of emergencies should I prepare for? Your emergency fund could be needed for any number of events: a job loss or early retirement, housing or auto repairs, unreimbursed medical bills, unexpected travel, and so on. But this fund may also be needed to help you cope with other threats. Consider this: In 2023, the U.S. saw a record 28 weather and climate disasters, each of which resulted in at least $1 billion in damages and often many times this amount according to the National Oceanic and Atmospheric Administration. Depending on where you live, your home or business may be susceptible to tornadoes, floods, wildfires, hurricanes and extreme heat and cold waves. These events can, and do, result in property repair and relocation costs, higher insurance premiums and even price increases for basic goods, such as groceries and prescription medications. One final word about an emergency fund: It takes discipline to maintain it and to avoid tapping into it for everyday expenses or impulse purchases. The name says it all this is a fund that should only be used for emergencies. By keeping it intact until its truly needed, you can help yourself weather many of the storms that may come your way.  Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

If there's one thing in life that's certain, it's that plans can and will change. Unexpected expenses and events may be inevitable, but they don't have to derail your financial goals. With a little planning, you can be better prepared for life's ups and downs.Start by exploring the questions and guide below. Then take the recommended steps if you haven't already.Preparing for the unexpectedYou can't predict the future, but you can plan for it. Learn the steps you can take to prepare for the unexpected.Learn MoreHow much should I save for emergencies?To help you figure out how much you should have in your emergency fund, think about your family's ongoing needs and expenses.Learn MoreYour guide to choosing life insuranceDiscover which type of life insurance is best for your family and learn an easy way to calculate how much you need.Learn MoreSix ways we can help you prepare for the unexpectedYour financial strategy isnt complete until you have a plan to protect it.Learn MoreAre you in control of your legacy?Establishing your estate is simply not something that can wait by taking the time to prepare your estate strategy now, you can help ensure some comfort for the future.Learn MoreFunding your legacy with life insuranceLife insurance can offer more than just protection for the unexpected. It also can help you accomplish your legacy goals.Learn MoreWhat should I prepare for now that I'm retired?We can help you with the right strategy, so you can avoid dipping into your retirement savings to pay for unexpected expenses.Learn MoreHow can I prepare for medical or long-term care?Before you can address these costs, it's important to understand what Medicare and other insurance may cover.Learn MoreLearn Is life insurance through work enough?Employers usually offer coverage that is designed to accommodate all employees and life insurance is definitely not one size fits all.Learn MoreNew budget for your new normalTime to rethink your budget? Here are some ideas to help you update it or, if you dont already have one build a budget from scratch.Learn More

Like most of us, you may someday want to enjoy a comfortable retirement. Your ability to achieve this goal will depend on how much you save but it also matters how much you spend.            And saving and spending are certainly related: The more you can reduce your spending, the more money you could have available to save for retirement through your IRA and your 401(k) or other employer-sponsored retirement plan. Over many years, even relatively small amounts diverted from spending to saving and investing could add up substantially.             How can you go about potentially reducing your spending? Here are a few suggestions: Use a budgeting tool. If youre not already doing so, you might want to consider using a free online budgeting tool. Among other capabilities, these apps can place your spending in categories groceries, travel, entertainment, and so on  which can reveal redundancies that, once eliminated, could save you money. For example, you might find that youre spending a not-insignificant amount on streaming services you rarely use. Or you might be surprised at how often you go the grocery store, rather than consolidating your visits and reducing the likelihood of impulse purchases. Take advantage of employee benefits. If you work for a mid-size or large company, you may have an extensive employee benefit plan, which could include discounts on some products and services. Also, if you are enrolled in a high-deductible health plan through your employer, you might have access to a health savings account (HSA) or flexible spending account (FSA), either of which may let you lower your out-of-pocket health care costs by using pre-tax dollars to pay for deductibles, copayments, coinsurance and some other qualified expenses. Shop around for insurance. To some extent, we are all creatures of habit, which can be good in some circumstances and not so good in others. In the not so good category, many people stick with their auto, homeowners and life insurance policies year after year, even though they might be able to save some money by switching to another company. But even if you stay with your current company, you might find ways to save money by taking steps such as adding a home security system. Check with your insurer to learn more. Compare credit cards. Theres a piece of financial advice that essentially says: Pay cash for everything and this isnt a bad idea. Ideally, you might want to use a credit card strictly for items such as car rentals or hotel reservations, and you should pay off the bill each month to avoid interest charges. Sometimes, though, you may need to use your card for other purposes, and it may not always be possible to pay your bill in full. Thats why youll want to review credit cards periodically to find one with lower interest rates, a favorable balance transfer offer and a better rewards program.Its not always easy to cut down on your spending, but when you do, it can provide more peace of mind and an opportunity to boost your savings for what could be a long and active retirement. Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.comThis article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

If you work for a midsize or large company, you may soon be able to review your employee benefits package, as we are entering the open enrollment season. So, consider your options carefully, with an eye toward making changes appropriate for your needs.             Here are some of the key areas to look at:            Retirement plan Depending on your employer, you could change your 401(k) or similar retirement plan at any time of the year, but you might want to use the open enrollment season to review your contribution amounts. If your salary has gone up over the past year, you might want to boost your pre-tax contributions (including catch-up contributions beginning at age 50). At a minimum, try to put in at least enough to earn your employers match, if one is offered. At the same time, look over how your contributions are allocated among the various investment options in your plan. Youll want your investment mix to reflect your goals, risk tolerance and time horizon.             Life insurance If your employer offers group life insurance at no cost as an employee benefit, you may want to take it but be aware that it might not be enough to fully protect your family should anything happen to you. You may have heard that you need about seven to 10 times your annual income as a life insurance death benefit, but theres really no one right answer for everyone. Instead, you should evaluate various factors including your mortgage, your income, your spouses income (if applicable), your liabilities, the number of years until your retirement, number of children and their future educational needs to determine how much insurance you need. If your employers group policy seems insufficient, you may want to consider adding some outside overage.            Disability insurance Your employer may offer no-cost group disability insurance, but as is the case with life insurance, it might not be sufficient to adequately protect your income in case you become temporarily or permanently disabled. In fact, many employer-sponsored disability plans only cover a short period, such as five years, so to gain longer coverage up to age 65, you may want to look for a separate personal policy. Disability policies vary widely in premium costs and benefits, so youll want to do some comparison shopping with several insurance companies.            Flexible spending account A flexible spending account (FSA) lets you contribute up to $3,200 pre-tax dollars to pay for some out-of-pocket medical costs, such as prescriptions and insurance copayments and deductibles. You decide how much you want to put into your FSA, up to the 2025 limit. You generally must use up the funds in your FSA by the end of the calendar year, but your employer may grant you an extension of 2 months or allow you to carry over up to $640.             Health savings account Like an FSA, a health savings account (HSA) lets you use pre-tax dollars to pay out-of-pocket medical costs. Unlike an FSA, though, your unused HSA contributions will carry over to the next year. Also, an HSA allows you take withdrawals, though they may be assessed a 10% penalty. To contribute to an HSA, you need to participate in a high-deductible health insurance plan.              Make the most of your benefits package it can be a big part of your overall financial picture.  Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

Spring is almost here, which means its time for some spring cleaning. This year, in addition to tidying your home and surroundings, you might want to consider sprucing up your financial environment, as well.Here are some suggestions for doing just that: Improve your vision. Once the days are warmer and longer, you may want to get outside and clean all the winter grime and smudges from your windows, allowing you to see the world more clearly. And you may want to bring more focus to your financial vision by asking some key questions: Is my investment strategy still appropriate for my needs, goals and family situation? If not, what changes should I make? And am I prepared for changes in my life, such as health challenges or a need to retire earlier than planned? The answers to these and other questions can help you clarify where you are, in terms of your financial picture, and where you want to go. De-clutter. As you look around your home, you may find things such as expired health care products, old prescriptions, ancient cleaning solutions, and so on, in addition to duplicate household items (how many blenders do you really need?) and non-working equipment printers, laptops, etc. Most people find that eliminating this clutter gives them a good feeling and more livable space. As an investor, you can also find clutter in the form of redundant investments for example, you might own several nearly identical mutual funds. You might be better off selling some of these funds and using the proceeds to find new investments that can help you further diversify your portfolio. As you may know, diversification is a key to investment success, but keep in mind that it cant prevent all losses. Plant seeds of opportunity. Whether theyre planting camellias and crocuses or carrots and cilantro, gardeners are busy in the spring, hoping their efforts result in lovely flowers and tasty foods. And when you invest, you, too, need to plant seeds of opportunity in the form of investments that you hope will grow enough to enable you to make progress toward your goals. So, you may want to review your portfolio to ensure its providing this growth potential, given your individual risk tolerance. Reduce dangers. You may not think about it that much, but your home and surroundings can contain potential hazards. You might have ill-fitting caps on cleaning products with toxic chemicals, or sharp cutting instruments protruding from shelves in your garage, or heavy, cracked tree branches hovering close to your roof. Spending some time on a spring-cleaning sweep can get rid of these dangers and devoting time to consider the possible threats to your financial security, and those of your family, can pay off, too. For starters, review your life insurance to determine if youve got enough. Your employer may offer some coverage as an employee benefit, but it might not be sufficient, so you may need private coverage. And the same is true for disability insurance, because if something were to happen to you, and you couldnt work for a while, youd still want to protect your familys lifestyle. Spring is a great time for brightening your physical space and your financial one, too.  Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.   Edward Jones is a licensed insurance producer in all states and Washington, D.C., through Edward D. Jones & Co., L.P., and in California, New Mexico and Massachusetts through Edward Jones Insurance Agency of California, L.L.C.; Edward Jones Insurance Agency of New Mexico, L.L.C.; and Edward Jones Insurance Agency of Massachusetts, L.L.C. California Insurance License OC24309

You might not have thought much about beneficiary designations but they can play a big role in your estate planning.            When you purchase insurance policies and open investment accounts, such as your IRA, youll be asked to name a beneficiary, and, in some cases, more than one. This might seem easy, especially if you have a spouse and children, but if you experience a major life event, such as a divorce or a death in the family, you may need to make some changes because beneficiary designations carry a lot of weight under the law.            In fact, these designations can supersede the instructions you may have written in your will or living trust, so everyone in your family should know who is expected to get which assets. One significant benefit of having proper beneficiary designations in place is that they may enable beneficiaries to avoid the time-consuming  and possibly expensive probate process.             The beneficiary issue can become complex because not everyone reacts the same way to events such as divorce some people want their ex-spouses to still receive assets while others dont. Furthermore, not all the states have the same rules about how beneficiary designations are treated after a divorce. And some financial assets are treated differently than others.            Heres the big picture: If youve named your spouse as a beneficiary of an IRA, bank or brokerage account, insurance policy, will or trust, this beneficiary designation will automatically be revoked upon divorce in about half the states. So, if you still want your ex-spouse to get these assets, you will need to name them as a non-spouse beneficiary after the divorce. But if youve named your spouse as beneficiary for a 401(k) plan or pension, the designation will remain intact until and unless you change it, regardless of where you live.            However, in community property states, couples are generally required to split equally all assets they acquired during their marriage. When couples divorce, the community property laws require they split their assets 50/50, but only those assets they obtained while they lived in that state. If you were to stay in the same community property state throughout your marriage and divorce, the ownership issue is generally straightforward, but if you were to move to or from one of these states, it might change the joint ownership picture.            Thus far, weve only talked about beneficiary designation issues surrounding divorce. But if an ex-spouse or any beneficiary passes away, the assets will generally pass to a contingent beneficiary which is why its important that you name one at the same time you designate the primary beneficiary. Also, it may be appropriate to name a special needs trust as beneficiary for a family member who has special needs or becomes disabled. If this individual were to be the direct beneficiary, any assets passing directly into their hands could affect their eligibility for certain programs.              You may need to work with a legal professional to sort out beneficiary designation issues and the rules that apply in your state. But you may also want to do a beneficiary review with your financial advisor whenever you experience a major life event, such as a marriage, divorce or the addition of a new child. Your investments, retirement accounts and life insurance proceeds are valuable assets and you want them to go where you intended.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.choate@edwardjones.com  This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.  Edward Jones, Member SIPC

 In the past year, weve seen some big swings in the financial markets. This volatility may make you feel as if you have little control over your investment success. But the truth is, you do have more control than you might think as long as you dont let fear guide yourdecisions. Investment-related fear can manifestitself in a few different ways: Fear of loss Some investors may emphasize avoiding losses more than achieving gains. Consequently, they might build portfolios they consider very low in risk, possibly containing a high percentage of certificates of deposit (CDs) and U.S. Treasury securities. Yet, a highly conservative approach carries its own risk the risk of not achieving enough growth to stay ahead of inflation, much less meet long-term goals such as a comfortable retirement. To reach these goals, youll want to construct a diversified portfolio containing different types of assets and investments each of which may perform differently at different times. Your objective shouldnt be to avoid all risk which is impossible but to create an investment strategy that accommodates your personal risk toleranceand time horizon.           Fear ofmissing out Youre probably familiar with the term herd mentality the idea that people will follow the lead of others for fear of missing out on something. This behavior is responsible for fads or the sudden emergence of hot products, and its also relevant to investing. In fact, herd mentality may contribute to sharp jumps in the financial markets as investors drive up prices by buying stocks to avoid being left behind. And the same may be true in reverse when the market starts dropping, skittish investors may accelerate the decline by selling stocks so they, too, can get out before its too late. Buying or selling investments should be considered as needed to help advance your long-term financial strategy not in response to what others are doing. Fear of the unknown Some investorsfall victim to familiarity bias the tendency to invest only in what they know, such as local or domestic companies. But this behavior can lead to under-diversified portfolios. If your portfolio is dominated by just a few investments, and these investments are fairly similar to each other, you could experience some losses when the inevitable market downturn occurs. To help reduce the impact of market volatility, its a good idea to spread your investment dollars across large and small companies in a range of industries and geographical regions. And thats just on the equities side its also wise to consider further diversifying your portfolio by owning bonds and government securities. (Keep in mind, though, that diversification cant guarantee profits or protect against all losses.) Fear ofadmitting failure Some individuals dont like to admit when theyve been wrong about something, and they may continue the same failed activities, hoping for eventual success. This behavior can be costly in the investment arena. Sometimes, a particular investment, or even an investment strategy, just doesnt work out, but an investor is determined to stick with it even if it ultimately means considerable financial loss. Dont let his happen to you if it becomes apparent you need to change your investment approach, move on to something better.Fear can holdus back in many walks of life but dont let it keep you from making appropriate investment moves. Chad Choate III, AAMSFinancial Advisor | Edward Jones828 3rd Ave WBradenton, FL 34205941-462-2445   Chad.Choate@edwardjones.com  This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

Before you can address these costs, it's important to understand what Medicare and other insurance cover.We can help you do just that so you can make the decisions that are right for you. In general, youll have two types of medical expenses when you retire: traditional and long-term.Traditional medical expensesMedicare is designed to cover traditional expenses, such as doctors visits, prescriptions, in-hospital expenses and wellness exams. However, you'll still need to budget $4,000 to $6,000 a year to cover out-of-pocket costs Medicare doesn't pick up including premiums and deductibles as well as any supplemental insurance.Below is a quick overview of Medicare Parts A and B costs and coverage.Standard Medical Components*Source: Medicare, Kaiser Family Foundation, Edward Jones estimates.Medicare doesn't cover most long-term care costsOf all the expenses Medicare doesn't cover, long-term care is potentially the biggest. This type of care includes nursing homes, assisted living, in-home health care and adult day care. Costs vary according to the type and amount of care, but the price tag can add up: Using an average nursing home stay of 2.5 years, you'd need more than $200,000 in todays dollars to cover this cost and that doesn't include the effects of inflation.You can pay for long-term care by adding these costs to your budget or insuring against them. If you decide to pay for them out of pocket, your Edward Jones financial advisor can look at your entire financial picture and help you determine if your portfolio can withstand this potential cost.Another option is to purchase some form of long-term care insurance. The policies and costs can vary dramatically, however, based on your age, health and gender, as well as the amount of coverage you desire.Your Edward Jones financial advisor can help you evaluate the following:Amount of coverageLook for a policy that offers the highest amount of long-term care coverage relative to other options, assuming the same premium.Potential for rising premiumsInsurance companies can raise their premiums even after you've purchased a policy. Make sure you read the fine print. Your Edward Jones financial advisor will work with you to make sure you understand all of this.Benefit of insurance vs. the risk of not needing itAs with any insurance policy, there's always the possibility that you'll pay for coverage you'll never use. But given the large potential costs of a long-term care stay, its important to weigh the cost of insurance with the risk of needing care and not having coverage to pay for it.Health care costs are important, but they are also just one of many factors to consider when you look at your retirement picture. That's where your Edward Jones financial advisor comes in. By getting to know you and your whole financial picture, he or she can work with you on a personalized strategy to fit your needs.Written & Submitted By: Edward Jones- click for more information*

For more information on the author, Edward Jones, CLICK HERE!No one really wants to think about paying taxes, but taking steps today may help reduce the amount of taxes you or your heirs may pay later.A lot has changed in recent years regarding estate taxes. Depending on your situation, these changes could affect how much you leave as a legacy. That's why it's important to review your strategy regularly.When it comes to making these decisions, we believe a team approach is best. Your financial advisor can work with you and your legal and tax professionals to help ensure your strategy reflects your current wishes as well as current tax laws.Below are some highlights of current federal tax laws that are important to know if you are concerned about the taxes your estate could pay. Along with federal taxes, some states have their own estate or inheritance taxes. So while your estate may not be subject to federal estate tax, your estate or heirs may have additional state taxes upon your passing.Estate taxesThe federal estate tax exclusion amount for 2020 is set at $11.58 million (adjusted for inflation annually) for all individuals. That means you may be able to pass an amount up to $11.58 million at death ($23.16 million for a married couple) free from federal estate tax.Gift taxesThe gift tax exclusion is coupled with the estate tax exclusion, so its also $11.58 million for 2020. Therefore, you may be able to gift up to $11.58 million during your lifetime free from federal gift tax. Its important to remember, though, that any gifts made during your lifetime will reduce your estate tax exclusion amount dollar for dollar.Portability for married couplesPortability means that when a person dies, the surviving spouse may retain the deceased spouses unused exclusion amount. For instance, if one spouse dies, the surviving spouse may be able to use their full $23.16 million exclusion without planning for it in advance. There are certain tax-filing requirements that must be satisfied to take advantage of this option, so you should talk with your qualified tax advisor about your situation.Depending on your assets and situation, your estate may or may not have a tax issue. If needed, however, there are strategies you can put into place that may help minimize the effects of these taxes.But taxes are only one reason you should create an estate and legacy plan having a strategy is about much more than money. Think about the things that are most important to you: your family, your children, charities, your business. A properly planned estate strategy gives you control over how to provide for these, both financially and personally, once you are no longer able to do so yourself.

            One of your important sources of retirement income will likely be Social Security but when should you start taking it?            You can start collecting Social Security benefits at 62, but your checks will be considerably bigger if you wait until your full retirement age, which is likely between 66 and 67. You could even wait until youre 70, at which point the payments will max out, except for yearly cost-of-living adjustments. But if you need the money, you need the money, even if youre just 62 or any age before full retirement age.             However, if you have adequate financial resources to meet your monthly needs, whether through earned income, your investment portfolio or a combination of the two, you could have some flexibility in choosing when to take Social Security. In this case, you may want to weigh these considerations:            Life expectancy For all of us, its one of lifes great mysteries: How long will we live? Of course, we cant see into the future, so the question cant be answered with total confidence. But to make an informed decision on when to take Social Security, you dont need to know your exact lifespan you just need to make a reasonably good estimate. So, for example, if youre approaching 62, youre enjoying excellent health and you have a family history of longevity, you might conclude its worth waiting a few years to collect Social Security, so you can receive the bigger payments. Conversely, if your health is questionable and your family has not been fortunate in terms of longevity, you might want to start taking your benefits earlier.             Employment You can certainly continue working and still receive Social Security benefits. However, if youre under your full retirement age for the entire year, Social Security will deduct $1 from your benefits for every $2 you earn above the annual limit of $22,320. In the year you reach your full retirement age, Social Security will deduct $1 in benefits for every $3 you earn above $59,520. So, you may want to keep these reductions in mind when deciding when to begin accepting benefits. Once you reach your full retirement age, you can earn any amount without losing benefits. (Also, at your full retirement age, Social Security will recalculate your benefit amount to credit you for the months you received reduced benefits because of your excess earnings.)            Spouse Spouses can receive two types of Social Security benefits: spousal and survivor. With a spousal benefit, your spouse can receive up to 50% of your full retirement benefits, regardless of when you start taking them. (Your spouses benefit can be reduced by the amount of their own retirement benefit and whether they took Social Security before their full retirement age.) But with a survivor benefit, your decision about when to take Social Security can make a big difference. A surviving spouse can receive the larger of their own benefit or 100% of a deceased spouses benefit, so if you take benefits early and receive a permanent reduction, your spouses survivor benefit may also be reduced for their lifetime.             When to take Social Security is an important and irrevocable decision. So, consider all the factors before making your choice.  Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

If youve been thinking about life insurance, especially if you have family, loved ones, or anyone who depends on you financially, you might be curious about the different kinds of policies available. Which type is right for you?Essentially, you can look at two main categories of life insurance: term and permanent.Term insurance is a pay-as-you-go option that covers a specific amount of time, usually 20 years or fewer. Term insurance benefits are paid to your beneficiaries free of federal income taxes if you pass away during the coverage period, but theres no opportunity to build cash value. Permanent insurance, such as whole life or universal life, offers coverage for as long as you pay the premiums, and in addition to providing a tax-free death benefit, also offers a chance to build equity, or cash value, on a tax-deferred basis. When determining which type of insurance is appropriate for your needs, youll want to consider these factors: Cost Term insurance is generally affordable for most people, which is why it may be particularly suitable for parents and young adults who may be at the beginning of their careers. Permanent insurance is typically more expensive, largely because it is meant to last for one's lifetime and some of the premiums go toward building cash value in the policy and paying for other features. Generally, the younger and healthier you are when you purchase permanent insurance, the lower your rates will be. Length of time insurance is needed If you think you will only need life insurance for a certain period perhaps until your children are grown you might lean toward term insurance. If you feel the need for life insurance for other goals throughout your lifetime, for whatever reason you might have a special needs child, or perhaps you want to use your policy to help pay for retirement, or you wish to include the policy as part of your legacy and estate plans you may want to consider some type of permanent insurance. Investment preferences You may have heard the phrase buy term and invest the difference. Essentially, this just means that an investor could purchase low-cost term insurance, and then invest the money that was saved by not getting permanent insurance. This can be a valuable strategy in some situations, but people often dont actually invest the difference. A permanent insurance policy, through the payment of premiums, may result in a steady buildup of cash value or continued contributions to the policys investment components. For many people, this discipline is helpful. Future insurability If you have health issues, it could become difficult to get permanent insurance after youve reached the end of a term insurance policy. (Some term insurance policies do offer the opportunity to convert to permanent coverage, usually without the need for a medical exam.) You could avoid this potential problem by purchasing permanent insurance when you are still young and healthy. Ultimately, you will need to weigh the various factors involved in the permanent-versus-term decision. You also might benefit from consulting a financial professional, who can evaluate which type of insurance is most appropriate for your situation. But whether its term or permanent, make sure you have the coverage you need to protect yourself and your loved ones.  Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.  Edward Jones is a licensed insurance producer in all states and Washington, D.C., through Edward D. Jones & Co., L.P. and in California, New Mexico and Massachusetts through Edward Jones Insurance Agency of California, L.L.C.; Edward Jones Insurance Agency of New Mexico, L.L.C.; and Edward Jones Insurance Agency of Massachusetts, L.L.C. California Insurance License OC24309

 Now that weve reached 2024, you might be thinking about your goals and hopes for the new year. But in addition to whatever personal resolutions you might make volunteering, going to the gym more, learning a new language and others  why not make some financial resolutions, too?Here are a few to consider: Boost your retirement savings. If you can afford it, try to increase your contributions to your IRA and 401(k) or similar employer-sponsored retirement plan. The more you put away in these accounts, the greater your chances of reaching your retirement goals. At a minimum, contribute enough to your 401(k) to earn your employers match, if one is offered. And whenever your salary goes up, consider raising the amount you put in to your 401(k). Reduce your debts. Its not always easy to reduce your debts but its worth the effort. The lower your debt load, the greater your monthly cash flow. So, look for ways to consolidate debts or find other, possibly more productive, ways of using credit. And if you truly cant afford something thats nonessential, dont go into debt for it. Live within your means is an old piece of advice, but its just as valid now as ever. Build an emergency fund. If you suddenly needed a major home or car repair, or received a large medical bill not fully covered by insurance, would you have the funds available? If not, you might be forced to dip into your retirement accounts or other long-term investments. To avoid this possibility, try to build an emergency fund containing several months worth of living expenses, with the money kept in a liquid, low-risk account thats separate from the ones you use to meet your daily expenses. It can take a while to build such a fund, but if you make it a priority and contribute regular amounts each month, you can make good progress. Avoid emotional decisions. Too many people overreact to events in the financial markets because they let their emotions get the better of them. If the market is temporarily down, it doesnt mean you need to sell investments to cut your losses especially if these investments still have good fundamentals and are still appropriate for your portfolio. It can be hard to ignore market volatility, but youll be better off if you focus on the long term and continue following an investment strategy thats designed to meet your needs. Review your goals. Over time, your goals may have changed. For example, while you once might have wanted to retire early, and planned for it, you may now find that youd like to work a few more years. If thats the case, you may also need to adjust your financial and investment strategies. Revisit your estate plans. If youve married, divorced, remarried or added children to your family within the past few years, you may need to review the account titling and beneficiary designations on your 401(k) and other retirement assets, along with your estate-planning documents, such as your will or living trust. You might also need to revise these documents in other ways.              Of course, you may not be able to tackle all these resolutions at one time, but if you can work at them throughout the year, you can potentially brighten your financial outlook in 2024 and beyond.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.  Edward Jones, Member SIPC

Its probably not on your calendar, but September is Life Insurance Awareness Month. And that means its a good time to become more aware of the benefits of having life insurance and the dangers of not having it.            Unfortunately, confusion about some of the basic elements of owning life insurance may be keeping people from getting the protection they need. More than half of uninsured Americans say they have put off purchasing coverage because they dont know what to buy or how much they need, according to Life Happens and LIMRA, two nonprofit organizations that provide research and education about life insurance.            Yet, while this confusion may be understandable, a delay in acquiring appropriate insurance can be costly in more ways than one. From a strict dollars-and-cents perspective, its generally much more affordable to buy life insurance when youre younger. But there are potentially much greater costs involved in not having insurance when it's needed and these costs are personal.            To be specific, what is it worth             to know your family could stay in your home if something happened to you?            to know your children could continue their education plans?            to know your debts could be paid without burdening your family?            Clearly, if you were to assign these benefits a price tag, it would be pretty high. And thats the value of owning sufficient life insurance.             So, lets return to the issue of people putting off buying insurance because they dont know how much they need, or what type they should have:            How much is enough? You might hear that you need life insurance equal to about seven to 10 times your pretax annual salary. Thats not a bad ballpark figure, but not everyone is playing in the same ballpark. To get a true sense of how much of a death benefit you require from your life insurance, youll need to consider a variety of factors, possibly including your current income, spouses income, the size of your mortgage (in addition to other liabilities), number of children, educational expenses and final expenses for funeral arrangements.             What type? You can essentially choose between two basic types of life insurance: term and permanent. As its name suggests, term insurance is designed to provide coverage for a designated period, such as 10 or 20 years. Generally speaking, term insurance is quite affordable for most people, especially when they buy policies as young adults. On the other hand, permanent insurance, such as whole life or universal life, is usually considerably more expensive than term insurance. This is because permanent insurance premiums, in addition to providing a death benefit, help build cash value, which you can typically access through loans or withdrawals, giving you additional flexibility should your financial needs change over time. In choosing between term and permanent insurance, youll want to evaluate several issues, such as how long you think youll need coverage and how much you can afford to pay in premiums.             Finding out about the benefits, costs and types of life insurance can help you make informed choices to help protect your family for years to come so dont delay learning what you need to know.   Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.choate@edwardjones.com                                                                                                                                       This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Paying for health care can be challenging but are you taking full advantage of all the resources available to you?You might have access to a Health Savings Account (HSA) or a Flexible Spending Account (FSA), so lets look at both.An HSA is a personal savings account used to pay health care costs. If youre enrolled in a high-deductible health plan, you also may be eligible to contribute to an HSA. You arent taxed on the money you put into this account or on the earnings generated from your contributions, as long as withdrawals are used for qualified health care costs such as deductibles, copayments and coinsurance. And theres no use it or lose it provision with HSAs the money stays in your account until you use it. In fact, you can carry your HSA with you all the way until retirement, when you can use the money to pay for qualified expenses that Medicare or Medicare Supplement Insurance (Medigap) doesnt cover. In 2023, you can contribute up to $3,850 to an HSA, or $4,850 if youre 55 or older; for family coverage, you can put in up to $7,750.            Its important to keep in mind that your HSAs tax benefits only apply when your withdrawals are used for qualified heath care costs. If you use the money for non-qualified expenses, it is considered taxable income, and you may also face a penalty of 20% on the amount withdrawn. However, once you turn 65, you can use your HSA funds for any purpose without a penalty, though the withdrawals will still count as taxable income.            Now, lets turn to the Flexible Savings Account. An FSA may be available to you if you get health insurance through your employer. And because you fund your FSA with pretax dollars, your contributions can reduce your taxable income. (In 2023, you can contribute up to $3,050 to an FSA.) Your employer may also choose to contribute to your FSA. Once your account is funded and active, you submit claims with proof of your medical expenses, along with a statement that these expenses arent covered by your plan, and you can be reimbursed for your costs.              Its helpful to have a good estimate of your yearly medical expenses for a Flexible Savings Account. Thats because an FSA generally needs to be spent before the end of the plan year if you dont use all the money, you can only carry over some of it and any remaining balance is forfeited. (You can carry over up to $610 from 2023 into 2024.)You can't contribute to an HSA and a traditional FSA in the same year. But if you have an HSA, you might be able to use whats known as a Limited Purpose Flexible Spending Account (LPFSA) for dental and vision expenses. Youll need to check with your plan to see if this option is available. Managing your health care expenses should be a key part of your overall financial strategy so consider putting an HSA or FSA to work for you.Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205Phone: 941-462-2445chad.choate@edwardjones.com      This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.        Edward Jones, Member SIPC

  If youve ever been involved in building a house  or even if youve just heard about it you know that theres a well-defined process to be followed. But heres something to think about: Some of the same steps connected to constructing a home are the same as those needed to build an estate plan.             What are those steps? Here are some to consider:            Get the right builder. Unless youre an experienced do-it-yourselfer, youll probably have to hire someone to build a house for you. Of course, youll make your wishes known about what you want your house to look like, but youll be relying on the builders expertise. And the same is true with estate planning  youll want to share your goals and vision with a legal professional whos experienced in creating comprehensive estate plans.             Build a strong foundation. Every house needs a strong foundation isnt just a metaphor its true for every house thats built. And when you create an estate plan, you also need a foundation that includes whatever basic elements are appropriate for your situation a will, a living trust, power of attorney and so on.             Make the necessary additions. Even if youre pleased with your new house, you may eventually decide to make some changes, such as adding on a new bedroom or bathroom. And the structure of your estate plan may need to undergo some modifications, too. For example, if you drew up a will two decades ago, but havent looked at it since, it may be out of date especially if youve experienced changes in your life, such as new children or a divorce and remarriage. That'swhy its a good idea to review your estate plans at least every few years.             Protect your investment. Of course, when you build a new house, youll have to insure it properly. And while theres no actual insurance policy for an estate plan, you do have ways to protect it. For one thing, you need to make sure beneficiary designations on retirement plans, investment accounts, insurance policies and other assets are correct. These designations are powerful and can even supersede the instructions in your estate-planning documents. So, as mentioned, if youve had significant life changes involving your family, you need to ensure your beneficiary designations are updated if you want to protect how insurance proceeds, investments and other assets are distributed.            Watch for mistakes. Its unfortunate, but mistakes do happen in home construction. Water stains can indicate that water is seeping through cracks in the foundation. Or cracks in retaining walls and garage floors could be a sign that the concrete structures were installed improperly. Estate plans can also contain errors or bad choices. Some are inadvertent, such as failing to put intended assets into a trust, but others are done with the best of intentions, such as naming adult children as joint owners of your assets. Even if your children are quite responsible, this move could give their creditors access to your money. If you want your children to be able to step in as needed, you could find other methods, such as giving them power of attorney.             Following these construction techniques can help you create an estate plan that can last a lifetime and beyond.            Chad Choate III, AAMS828 3rd Ave WBradenton, FL 34205chad.choate@edwardjones.com941-462-2445 This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC Edward Jones, its employees and financial advisors cannot provide tax or legal advice.  You should consult your attorney or qualified tax advisor regarding your situation.

Many people don't take the time to think about estate planning because they think it's only for the wealthy or those living in retirement. But thinking about estate strategies is important for just about everyone to ensure not only that your assets are handled properly, but also that you and your loved ones are cared for as you wish should you be unable to make such decisions.The following list of questions will take you through estate-planning considerations, and it will help you prepare for a discussion with yourfinancial advisor.Note: While Edward Jones cannot provide estate-planning advice, it is helpful for us to understand how your current situation and estate goals may affect your investment strategy.Beneficiary designationsWhen was the last time you reviewed your beneficiary designations?Beneficiary designations are a critical part of a comprehensive estate plan unique to your situation. There's no "one size fits all" guideline for naming beneficiaries, and you need to take into consideration things like: estate taxes, retirement plans, insurance policies, multiple marriages, special needs children, etc.Even if you have a will or trust, your beneficiary designations are an important part of your overall plan. Its important to review your beneficiary designations regularly, particularly when your life circumstances change, such as a marriage, a divorce, the birth of a child or the death of a spouse. If you dont update your account beneficiaries, your assets could be inherited by someone you no longer intend.Asset transfer plan and trustsDo you have a will or trust?A last will and testament can help your assets pass in the manner that you would prefer them to transfer.A trust might be right for your situation if you're concerned about: estate taxes, avoiding probate, controlling the transfer of assets to heirs, leaving assets to spendthrift children, protecting assets during incapacitation or eventually needing assistance with money management and paying bills.Have you shared your current transfer plan with your beneficiaries?If you haven't already had conversations with your beneficiaries, there's no better time than the present. The discussion will help inform your beneficiaries when it comes to matters related to your finances and health and how you want things handled upon your death or if you are unable to make decisions for yourself. The more family members know about your preferences, generally the more comfortable they'll feel that they're making the right decisions for you down the road, if necessary.Would you like to control how your beneficiaries access their inheritance (via a trust, for example)Determining who will handle your financial affairs when you are no longer able to do so can be an important decision. You might not know that some clients use trust services not only to manage the family legacy, but also to help handle everyday financial needs.If you are looking for a responsible, experienced and unbiased trustee to step in and handle your affairs, you can name Edward Jones Trust Company* as trustee of your trust. There are three types of services we provide:Managing Agent We can simply provide you investment and administrative services for a trust, a personal account or an Individual Retirement Account.Trustee or Co-trustee We can act as trustee or work alongside an individual you designate to execute the terms of a trust.Successor Trustee We can serve as trustee should a trustee resign or become unable to make decisions regarding a trust.Guardianship considerationsDo you have minor dependents?Have you assigned a guardian in your will for your dependents?It can be important to name guardians for minor children or dependents. This information can be contained in a will so the court and your family members know who is responsible for your dependents, should you pass away.Have you provided for minor dependents in your asset transfer plan?Incapacity protection (financial and health care)Do you have a Durable Power of Attorney?A Durable Power of Attorney can be an important document that generally allows you to name someone to make financial and health care decisions on your behalf, should you become incapacitated.Do you have a living will or advanced medical directive?A living will is generally a statement or declaration that a person may make indicating their wishes for specific medical treatment to be either provided or withdrawn under specific circumstances. It is often recommended that this document be well thought out and drafted prior to an illness or imminent death. Note: There can be limitations to living wills.Charitable intentDo you intend to leave assets to charity?Do you have a plan outlining your contribution strategy?Would you like to have control over how assets are used by the charity?How we can helpSometimes it takes going through a difficult situation to realize the importance of being prepared. If you don't already have an estate strategy in place, your financial advisor can help walk you through the process of prioritizing your goals and work to coordinate your team of tax and legal professionals to help ensure your goals are met.Submitted & Written By: Edward Jones- click here to learn more.

As the year winds down, you might be wondering whether you still have time to make some positive financial moves and you do. One productive action to consider is maxing out on your individual retirement account (IRA).You have until April 15, 2024, to contribute to your IRA for the 2023 tax year. But if you can afford it, why not put in the extra money now and get it working for you as soon as possible?For 2023, you can put up to $6,500 into an IRA, plus an additional $1,000 catch-up contribution if youre 50 or older. (This limit rises to $7,000, plus the $1,000 catch-up amount, in 2024.) If you already have a traditional or Roth IRA, you may know the benefits, but if you dont have either, heres a quick summary: Traditional IRA When you invest in a traditional IRA, your earnings grow tax deferred and your contributions may qualify for a tax deduction. If you and your spouse dont participate in a 401(k) or similar employer-sponsored plan, you can deduct the full amount of your IRA contributions, up to the contribution limit. But if you or your spouse invest in an employer-sponsored plan, you may be able to take a full or partial deduction if you are married and filing jointly, with a modified adjusted gross income of $136,000 or less. For single filers, this figure is $83,000. (For the 2024 tax year, these figures rise to $143,000 if youre married and file jointly, and $87,000 if youre a single filer.) Roth IRA By investing in a Roth IRA, your contributions are not tax deductible, but your earnings can grow tax free provided youve held your account at least five years and you dont start withdrawing the earnings until youre 59. And because youre investing with after-tax dollars, you can withdraw contributions not the earnings at any time, for any purpose, without taxes or penalties. You may be eligible for a full or partial contribution if your modified adjusted gross income is less than $228,000 married and filing jointly, or less than $153,000 if youre a single filer. (For 2024, these figures are less than $240,000 if youre married and file jointly, and less than $161,000 if youre a single filer.) These tax advantages provide a strong incentive to fully fund an IRA each year. Furthermore, you can put almost any investment stocks, bonds, mutual funds and so on into an IRA, so you can create a portfolio that matches your goals and risk tolerance. You can still fully fund your IRA for the 2023 tax year, but as you continue to save, you might find a more efficient way to reach the maximum, such as setting aside a regular amount each month. To make it as stress-free as possible, you can have the money automatically moved from your savings or checking account to your IRA. If its still difficult to come up with these amounts every month, you could put in what you can afford and then add other funds, such as a year-end bonus or a tax refund, when you receive them.  Any time you contribute to your IRA is a good time but if you can do it early, or have a savings strategy throughout the year, you can avoid the last-minute dash to put in the cash. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.choate@edwardjones.com  This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.  Edward Jones, Member SIPC

Sophisticated support combined with convenient local serviceEdward Jones offers clients and their beneficiaries the convenience of a nationwide network of branch offices, providing local assistance to clients and their estate-planning professionals and to executors, trustees, personal representatives and beneficiaries, even if they are in different geographic locations. We also offer a number of complimentary services designed to help attorneys, CPAs, executors and other professionals who assist clients with estate-related matters process firm-held assets.Express EstatesExpress Estates allows for quick and efficient transfer or sale of firm-held securities generally within 24 hours of receipt of the necessary documents by our home office, allowing for smooth transfer of assets to beneficiaries.If a security is not held in firm name and must pass through to a third-party transfer agent, Express Estates processes the security generally within 24 hours of receiving all necessary documents in our home office. Once Express Estates completes processing, the home office passes the request to the third-party transfer agent.Estates Hotline- 888-441-5475The Estates Hotline is a complimentary service available to professionals who have questions about estate processing matters involving Edward Jones clients.Professionals may access the Estates Hotline year round, Monday through Friday from 7:30 a.m. to 4:30 p.m. Central time.Estate valuation serviceThis service provides a ready-to-file date of death valuation date report on firm-held assets for the benefit of a deceased clients beneficiaries.Date of death reports are presented in a format consistent with Schedule A of IRS Form 706. To order a report, just contact the branch office managing the account. Reports are typically available within 24 hours.Re-registration of securitiesEdward Jones can help transfer securities into a registration that fits a clients estate plan. We also facilitate re-registration of securities to designated beneficiaries after the death of a client.We pride ourselves on our typical 24-hour turnaround following receipt of all necessary documentation when re-registering assets held in an Edward Jones account. If assets from other firms are transferred to Edward Jones accounts, or certificate shares are re-registered, Edward Jones normally processes and submits such requests to the applicable firms or transfer agents within 24 hours.Transfer on Death (TOD)A TOD agreement may help certain clients pass firm-name assets directly to beneficiaries while bypassing the time and expense of probate. Our TOD agreement imposes no limit on the number of beneficiaries or contingent beneficiaries. Contact your financial advisor to discuss mutual clients who may benefit from this agreement.Additional resources and servicesCustom Beneficiary DesignationsTo learn more about these resources and how we can help you help your clients work toward their financial goals, contact your local Edward Jones financial advisor today.

 With the presidential election just a few weeks away, the public is naturally interested in not just the outcome but what the results will mean for issues of national importance. As a citizen, you likely share these concerns but how about as an investor? After the votes are counted or even before should you make some moves in anticipation of possible changes in policy?  Lets look at the big picture first, through the lens of history. The financial markets have performed well and at times, not so well under Democratic and Republican presidents alike. And the same is true about which party controlled Congress.While it might be an overstatement to say that decisions made in Washington have no effect on the markets, its not always so easy to draw a direct line between what happens there and how the markets perform. For one thing, political candidates often make promises that are not fulfilled, or, if they are, have different results than intended. Also, other institutions can have a significant impact on the markets. For example, the Federal Reserve, which controls short-term interest rates, can certainly affect many market sectors. And there will always be external events, such as foreign conflicts and even natural disasters, that can make short-term impacts on the investment world.So, rather than making changes to your portfolio in anticipation of what might happen if certain candidates get elected, or even in response to actual policy changes, look to other factors to drive your investment decisions. These factors should include the following: Your goals You probably have short- and long-term goals youd like to achieve. For your short-term goals, such as a wedding, a down payment on a house or a long vacation, you may want to invest in instruments that provide stability of principal. For your long-term goals, most important of which may be a comfortable retirement, you'll need to own a reasonable number of growth-oriented investments.            Your risk tolerance When you build and maintain your investment portfolio, you'll need to accommodate your individual risk tolerance. All investments carry some type of risk, but you need to be comfortable with the overall risk level of your investments.            Your time horizon Where you are in life is an important consideration when investing. When you are young and just starting out in your career, you may be able to focus more on growth, as you have time to overcome the inevitable short-term market downturns. But as you near retirement, you may want to consolidate any gains you may have achieved, and lower your risk level, by moving your portfolio toward a somewhat more conservative approach. Even in retirement, though, you will need some growth potential to stay ahead of inflation.            Your needs for liquidity As you invest, youll need to maintain an adequate amount of cash and cash equivalents in your holdings. Without this liquidity, you might be forced to sell long-term investments in case you have unexpected expenses.             In any case, when it comes to investing, you may want to pay less attention to what names are on the ballot and instead vote for the longer-term strategies that reflect your needs and goals.   Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com                                                                                                                                           This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

For more information on the writer Chad Choate, AAMS- Edward Jones, CLICK HERE!It's a good question to ask, and an important one. Because how much you withdraw from your portfolio each year can play a big role in how long your money could last.It's taken a lifetime of saving and investing to get to this point. So, now what? How much money can you use from your investments to spend in retirement? It's an important question because how much you withdraw from your portfolio each year can play a big role in how long your money could last. We can help you find the answer.Life wasn't predictable when you were working full time. That doesn't change in retirement. That's why we believe withdrawal rates (or how much you take from your investments each year) should be modest.Adjust your strategy, if neededHaving a retirement income strategy can help give you an intangible, but critical resource flexibility. This means you're better prepared to handle whatever life brings your way. YourEdward Jones financial advisorwill talk with you to understand what you want to do and how much you want to spend. Then, you can work together to create a strategy that's specific to you.Our guidance for withdrawal rates below can serve as a good starting point to determine if your expectations are realistic. This guidance assumes you'll spend a bit more each year to account for inflation, and that you'll live until at least age 90.Initial withdrawal guidance Age in Retirement, More Conservative, Less Conservative, Early 60s3.0 %4.0 %Late 60s3.5 %4.5 %Early 70s4.0 %5.5 %Late 70s5.0 %7.0 %80s+6.0 %8.0 %Withdrawal rates can include the withdrawal of principal. If preservation of principal is a high priority, you will likely need to use a lower withdrawal rate. In general, the higher your withdrawal rate, the greater the risk that your money may not last throughout your time horizon. These are based on estimates and assume a 3% annual inflation rate, a diversified portfolio 50% equities, 50% income and a life expectancy to at least age 90.But a successful withdrawal strategy in retirement doesn't just mean sticking to a certain percentage. You'll probably need to make adjustments over time as your goals and income needs change, and that is where yourEdward Jones financial advisorcan help tailor this guidance to your situation.Struggling for income? Steps to considerIf your retirement goals don't exactly align with what your investments can support, your Edward Jones financial advisor can help you determine if you need to make some adjustments, including cutting expenses, working part-time, or delaying retirement.These adjustments may have other benefits, too. For example, delaying retirement may allow your investments to continue to grow and could increase your Social Security benefits. Other options, such as immediate annuities, might help increase your cash flow and provide a floor for your income. Be flexible over time Market performance can be unpredictable, but you can prepare for it. Starting out with a modest withdrawal rate can provide you the flexibility to better handle market declines and unexpected expenses, should they occur. But you may still need to make adjustments along the way to keep you on track during a market decline, such as: Determining where you can cut back on spending Not taking an annual raise (not automatically taking more from your investments each year for inflation)

   As we enter the annual season of giving, you might be thinking of charities you wish to support. But you also might be wondering how to gain some tax benefits from your gifts.            It used to be pretty straightforward: You wrote a check to a charity and then deducted the amount of the gift, within limits, from your taxes. But a few years ago, as part of tax law changes, the standard deduction was raised significantly, so fewer people were able to itemize deductions. Consequently, there was less financial incentive to make charitable gifts.            Of course, this didn't entirely stop people from making them. And it's still possible to gain some tax advantages, too.            Here are a few tax-smart charitable giving strategies:             Bunch your charitable gifts into one year. If you combine a few years' worth of charitable gifts in a single year, you could surpass the standard deduction amount and then itemize deductions for that year. In the years following, you could revert to taking the standard deduction.             Make qualified charitable distributions. Once you turn 73 (or 75 if you were born in 1960 or later), you must start taking withdrawals from your traditional or inherited IRA.  These withdrawals technically called required minimum distributions, or RMDs are taxable at your personal income tax rate, so, if the amounts are large enough, they could push you into a higher tax bracket or cause you to pay larger Medicare premiums.            But if you donate these RMDs directly to a qualified charity, you can avoid the taxes.  And because these donations, known as qualified charitable distributions (QCDs), will reduce the balance on your IRA, you may have lower RMDs in the future.            Of course, if you need some or all your RMDs to help sustain yourself in retirement, the use of QCDs may not be of interest to you. Keep in mind, though, that you can start making QCDs at 70, even before you must start taking RMDs. QCDs up to $105,000 can be taken in 2024.               Consider a donor-advised fund. If youre interested in a long-term charitable giving arrangement, you might want to consider establishing a donor-advised fund. You can put many types of assets into this fund, and then direct it to make grants periodically to the charities youve chosen. You get an immediate tax deduction for your contribution, and, if you donate appreciated assets, such as stocks, you'll avoid the capital gains taxes you would have incurred if you simply sold the stocks and then gave the money to the charities. One note of caution, though your contributions to a donor-advised fund are irrevocable, and once the assets are in the fund, you cant use them for anything except charitable giving.            These strategies QCDs and donor-advised funds in particular can be complex and involve several issues of which you should be aware. So, you should consult your tax advisor before taking action. But if any of these techniques are appropriate for your situation, give them some thought because helping a charitable group and getting tax benefits for doing so is a win for everyone.Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

If you save and investfor decades, youd like to know you can retire without financial worries.Nonetheless, you still have to be aware of some threats to a comfortableretirement and how to respond to them.These threats include: Inflation Inflation has beenhigh recently, but even a mild inflation rate can seriously erode yourpurchasing power. In fact, with just a 3% inflation rate, your expenses could doublein about 25 years and your retirement could easily last that long. So, if youregoing to rely on your investment portfolio for a sizable part of yourretirement income, you will need to own a reasonable number of growth-orientedinvestments, such as stocks or stock-based funds, whose potential returns can equalor exceed the inflation rate. Excessive withdrawals Once you retire, youshould establish a withdrawal rate for your portfolio an amount you can takeout each year and still feel secure that you wont run out of money. Some peoplemake the mistake of withdrawing too much, too soon, once theyre retired. Yourwithdrawal rate should be based on several factors, including your age at retirement,the size of your portfolio and the amount of income you receive from other sources,such as Social Security. A financial professional can help you determine awithdrawal rate thats appropriate for your needs. Market volatility The financial marketswill always fluctuate. When youre still working, this volatility may not besuch a problem, as you have years or decades to recover from short-term downturns.But when you retire, you dont want to have to sell investments when their priceis down. To help prevent this, you can tap into the cash in your portfolio, assumingyou have enough to cover several months worth of living expenses. You could also draw on a CD ladder a group of CDs thatmature at different times to provide you with resources for the next fewyears and allow your equity investments time to recover their value. Unexpected costs You had them when you were working, and youll probably have themwhen youre retired: the furnace that breaks down, the car that needs a majorrepair, and so on. But if youve established an emergency fund containing ayears worth of living expenses, with the money kept in a liquid account, youmay be able to ride out these costs without jeopardizing your investmentportfolio. Be sure to keep these reserves separate from your typical day-to-dayaccounts to avoid the temptation of spending your emergency money. Health Retirees may face more health concerns thanyounger people, and those concerns often come with larger medical bills. Thatswhy its important to maximize the benefits from Medicare or your MedicareAdvantage plan. Also, if you contributed to a Health Savings Account (HSA)while you were working, and you havent depleted it, you can use the money inretirement. As long as the HSA funds are used for qualified medical expenses,withdrawals are tax- and penalty-free, and wont be included in your income. Thiscould help keep your income below certain levels, lower your Medicare premiumsor avoid the 3.8% surtax on net investment income that can be assessed on high-net-worthtaxpayers. Retirementcan be a pleasant time in your life and youll enjoy it more if youre preparedfor the challenges that face all retirees.     Chad Choate III, AAMS   Bradenton's Riverwalk   828 3rd Ave W   Bradenton, FL 34205   941-462-2445   chad.choate@edwardjones.comThis article was written by Edward Jones for use by your local EdwardJones Financial Advisor.Edward Jones, Member SIPC

A credit shelter trust is an estate-planning strategy for married couples. This type of trust may provide control over the assets for the creator of the trust and tax efficiency for the surviving spouse and beneficiaries. It is also sometimes known as a bypass trust or family trust. A credit shelter trust allows you to set aside a certain portion of your assets upon your death. There are a variety of reasons to discuss a credit shelter trust with your estate-planning attorney. Control over assets The spouse who sets up the trust can determine how the assets will be distributed. The surviving spouse can receive income and principal from the trust during his or her lifetime. When he or she passes away, the remaining amount in the trust goes to the beneficiaries designated by the spouse who created the trust. This type of trust can be helpful in cases where the creator of the trust wants to control the distribution of the assets after his or her death. This is common with second or later marriages, where the creator of the trust has his or her own children and would like for them to inherit their separate assets. Creditor claims protection A credit shelter trust can help protect assets from claims by divorcing spouses, spouses from subsequent marriages and creditors. Generally, creditors cannot access the principal in the trust to meet their claims against the trust beneficiaries. Federal estate tax exclusion A credit shelter trust allows a married couple to benefit from the federal estate tax exclusion of the first spouse to die so trust assets are sheltered from future estate tax. Any growth or appreciation of those assets while in the trust is similarly protected from estate tax. A portability provision gives married couples a chance to save an unused exclusion amount without a credit shelter trust (see Federal Estate Tax and Portability in the blue section to the right). However, assets passed via portability are not protected from generation-skipping transfer (GST) taxes, nor do they have the control or creditor protection advantages of a credit shelter trust. State estate tax exclusion Several states have their own state estate tax in addition to the federal estate tax. A credit shelter trust may be the only option to use the state estate tax exclusion of the first spouse to die. Federal estate tax and portability The American Taxpayer Relief Act of 2012 updated the federal estate tax exclusion amount and provided for occasional increases to offset inflation. The Tax Cuts and Jobs Act enacted in 2017 made increases to the exclusion amount through 2025. In 2024, you may be able to transfer up to $13.61 million (up from $12.92 million in 2023) at your death free from federal estate tax. Any amount exceeding the exclusion can be taxed up to 40%. The portability provision states that when a person passes away, the surviving spouse may retain the deceased spouses unused exclusion amount. For instance, if a husband dies in 2024, his wife may be able to use their full $27.22 million exclusion (up from $25.84 million in 2023) without planning for it. There are certain tax-filing requirements that must be satisfied to take advantage of this option. You should talk with your qualified tax advisor about your situation. Proactive planning can help ensure you have control over your estate and benefit from tax- saving strategies. You may think the portability provision means you dont need to plan to protect your legacy and reduce estate tax; however, that may not necessarily be the case. Although portability, in some situations, may provide advantages to some married couples, considering a credit shelter trust could have benefits for you and your family. You should work with your estate-planning attorney and tax advisor to determine the appropriate plan for you. Portability (transfer to spouse) Credit shelter trust The surviving spouse has full access and control over all the assets. The spouse who sets up the trust designates the beneficiaries. The surviving spouse and/or other beneficiaries may receive benefits from the assets in the trust during their lifetimes. Growth of the assets may be subject to estate taxes when the surviving spouse dies. Growth of the assets in the trust generally is not taxed for estate tax purposes upon the death of the surviving spouse. Assets can be subject to creditor claims. Assets are typically protected from creditor claims. Assets may be subject to state estate taxes. Assets may not be subject to state estate taxes. All assets, including those from the first spouse to die, generally get a full step-up in cost basis at the surviving spouses death. Assets do not get a step-up in cost basis at the surviving spouse's death. Portability exclusion does not apply to federal GST taxes. With proper planning, assets may not be subject to GST taxes. What is a step-up in cost basis? Cost basis generally is the price you paid for an asset. If you buy a stock for $5 per share, your basis is $5. If you still own that stock at death and the fair market value is $10, your estate may get a step-up in basis to the fair market value at your death. So, your estate holds the stock with a $10 basis, allowing your estate to pass assets to your beneficiaries at the new basis or to sell the asset, potentially without capital gain. This typically means less income tax burden for your beneficiaries as they inherit your assets. Review your plan regularly During the past 10 years, estate tax laws have constantly changed. Thats why its important to remain diligent when working toward your long-term investing and estate goals. Its important to review your estate plan every three to five years. You should also review it when changes in estate tax law occur or when your life circumstances change, such as a birth, marriage, divorce or death in the family. Chad Choate III, AAMSTM Financial Advisor 828 3rd Ave W Bradenton, FL 34205-8665 941-462-2445 Your estate-planning attorney, tax advisor and financial advisor can work with you to determine whats best for your situation.  

For more information about the author Edward Jones, CLICK HERE!When it comes to the right retirement age, there is no right answer. The traditional retirement age of 65 may not be feasible or desirable for you. But what really matters is if you are financially and emotionally ready to stop working.We think it's important to invest some time now to prepare for this change, so we recommend involving your spouse and other family members in the conversation. Openly discussing your vision can help ensure a successful adjustment to your new life. And even though there's a lot to think about, your Edward Jones financial advisor can help you better prepare for the financial impact of not working full time whenever that may be.Explore these five important questionsThinking about your answers to the following questions can help bring your vision to life:What does the word "retirement" mean to you?The idea of a traditional retirement doesn't fit many of our ideal notions anymore of how we may want to spend our future. You may want to travel, volunteer or spend more time with your family. You could also be ready to spend more time enjoying a hobby or even start a new career. Having a plan of what will make you happy during the next phase of life can help you start to envision what your days may look like.How will leaving the workforce make you feel?You've probably worked most of your adult life. Making the switch can be a big adjustment. It's normal to be excited yet have some doubts. You don't have somewhere to go every day. Are you OK with that? Do you have other things you want to do? Money is only part of the picture. Make sure you've thought through how you actually feel about retiring.Whats the first thing you want to do when you retire?Write down the first three, five or 10 things you want to do and don't expect to achieve them all in the first week. Remember, you'll have plenty of years to fill with the things you want to do.If you have a spouse or partner, is he or she on board?Does your spouse or partner want to retire when you do? If so, what's your health insurance situation? Is working part time or volunteering an option or desire for you? If you want to travel, does your partner? Talk to your partner about his or her ideas about retirement. If you have different visions, discuss them and find some common ground. By talking now, you can work together to make the best of retirement for both of you.If you have children, how do they feel?Talk to your children about their and your expectations. For example, do they expect you to offer child care or other favors after you are no longer working full time? If necessary, decide on ground rules and boundaries ahead of time. This can help prevent uncomfortable conversations down the road.It's OK to be a little concerned about making the right choices about retirement these are big decisions. Working with your financial advisor can help address some of these worries and make you feel more confident about your path forward.

When drawing up your estate plans, you might find it useful to create a revocable or irrevocable trust, either of which can help your estate avoid probate court and give you significant control over how and when your assets are distributed. But who should oversee your trust.As the person who established the trust known as the grantor or settlor you can also name yourself as trustee. However, this may not be the best move, particularly if the trust is irrevocable. An irrevocable trust protects the assets in the trust from creditors and civil judgments, but if you serve as trustee, this protection will disappear. It might be more advantageous for you to be the trustee of a revocable (living) trust, which can be modified without much trouble and allows you to move assets in and out of the trust and to change trust beneficiaries. You should work with a qualified estate-planning attorney to determine which type of trust, if any, is appropriate for your situation, and to get some guidance on the wisdom of serving as your own trustee.           If you decide to choose someone else as trustee, youll want to consider the following factors:            Trust In thinking about whom you might want to serve as your trustee, the most important attribute is trust. Do you trust that this individual will always act in your best interest? If so, then they may be a good trustee candidate, but youll also need to look at other considerations.            Financial management skills  The person you choose to be your trustee doesnt have to be an accountant or a financial professional but they should be skilled at managing their own finances. And they should be well-organized and good with details.             Mental and physical fitness  Your trustee could serve in that position for many years, so youll want to name someone who is in good physical and mental health. Of course, things can change over time, so if you observe that your chosen trustee has begun to suffer physical or mental decline, you may need to name a successor trustee in your trust document.            Conflict of interest  You want your trustee to carry out your wishes in a fair manner so, you should pick someone who doesnt have a conflict of interest with any of the beneficiaries youve named in your trust. Of course, this can be tricky if you want to name a family member as trustee. So, if you do, youll need to spell out your wishes clearly to the trustee and to other family members.            Heres something else to think about: Instead of choosing an individual, you could name a corporate trustee. By doing so, you can receive some key benefits, such as objectivity and potentially avoiding some of the family-related disputes that can arise when an estate is settled. Also, corporate trustees have the expertise and resources to navigate the various tax and inheritance laws affecting living trusts.             Whether its a trusted individual or a corporate entity, the right trustee can make a big difference in the effectiveness of your living trust and, by extension, the outcome of your comprehensive estate plans. So, start your search, get the help you need and take the steps necessary to arrive at a choice for trustee thats right for you and your family.  Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

A proactive estate strategy can help place you not state law or courts in control of decisions about the care of your children, your assets and your health care.Whose strategy do you want yours or the states?When you don't have an established estate strategy, the laws of your state become your strategy by default, which may not align with your desires. Every state has statutes dictating to whom assets will be passed after a persons death, how to handle the decisions of an incapacitated person, and how the court will select a person to be in charge of these decisions. Even considering this, only slightly more than half of Americans have a will or trust in place, leaving control of their minor children and their assets to state law and the courts.1Its about controlUltimately, developing an estate strategy is not merely about wealth. Its about putting you in control of your legacy, ensuring the items most important to you are cared for as you intend. Additionally, having a strategy in place can help ensure your wishes are followed in an orderly and structured manner, reducing potential delays and conflicts that could arise among your beneficiaries.Understanding trade-offsEstate planning often will require you to prioritize your goals and make some trade-offs. For example, there is often a trade-off between strategy simplicity and level of control. Transfer on Death (TOD) agreements and beneficiary designations are often simpler to implement but offer little control over taxes and/or the beneficiaries use of funds. If you want more control over these items, trusts may provide more options. However, these options may bring additional costs and complexity, and your decisions could even become irrevocable, depending on the strategy. Its important to discuss all of these considerations with an estate strategy attorney.A team approachEdward Jones does not provide estate planning or tax advice, so its important to have a team of professionals, including your:Edward Jones financial advisorEstate-planning attorneyCPA/tax professionalEach team member has a different area of expertise .For example, your Edward Jones financial advisor can help you identify and prioritize your overarching financial legacy goals, and consider how these goals align with other financial goals, such as living comfortably in retirement, ensuring your surviving spouse can maintain his or her lifestyle should you pass away or providing for your children's/ grandchildren's education .Your financial advisor can also review your beneficiary designations to ensure they align with your desires. Your attorney drafts legal documents for specific estate strategies based on these goals, while your tax professional determines the tax implications of these strategies.Engaging a fee-based trust companyStrict federal and state laws govern the implementation of trusts, requiring trustees to perform certain duties for investments, administration, communication, accounting and confidentiality. Some individuals may want to delegate these legal responsibilities to an outside entity, such as a fee-based trust company, rather than maintaining them or passing them to a family member. Some services provided by these firms may include managing nonfinancial assets, withdrawal analysis and investment planning. Edward Jones Trust Company provides professional trust services, including serving as trustee or co-trustee, successor trustee or managing agent. The Edward Jones Trust Company can also help you determine your estate and legacy goals personal and financial and can work closely with your Edward Jones financial advisor and other estate and tax professionals to develop a comprehensive strategy for your situation and goals.Take control todayEstablishing your estate is simply not something that can wait. By taking the time to prepare now, you can help ensure some comfort for the future putting you in control of your legacy goals.Submitted & Written By: Edward Jones- click here to learn more.

At some point, youll want to share your estate plans with your loved ones and the first step in this process may be to hold a family meeting.The best time to hold this meeting is when youre still in good mental and physical shape, and the enactment of your estate plans may well be years away. But what topics should you cover? Consider these main areas: Your wishes and those of your family. Use this meeting to introduce your estate plans and, in a basic sense, what you hope to accomplish with them leave money to your family, support charitable groups and so on. Youll want to emphasize that you want to be equitable in what you leave behind, but there may be issues that affect this decision, such as disparities in income between grown children or an allowance for a special-needs child. But youll also want to listen to what your family members want and you might be surprised at what they tell you. Consider this: More than 80% of the millennial generation would rather know their parents are financially secure throughout their retirement, even if this means that their parents will pass on less money to them, according to an Edward Jones/Age Wave study. Estate planning documents At the time of your family meeting, you may or may not have already created your estate planning documents, but in either case, this would be a good time to discuss them. These documents may include a will, a living trust, financial power of attorney, health care power of attorney and possibly other arrangements. At a minimum, youd like to give a general overview of what these documents mean, but at an initial family meeting, you dont necessarily have to get too detailed. For example, you might not want to talk about specific inheritances. This is also an opportunity to inform your loved ones of the professionals involved in your estate plans, such as your attorney and your tax advisor. Roles of everyone involved Not only does a comprehensive estate plan involve moving parts, such as the necessary documents, but it also includes actual human beings who may need to take on different roles. You will need an executor for your will and, if you have a living trust, youll need a trustee. Even if you choose to serve as the initial trustee, youll still need to identify one or more successor trustees to take your place if you become incapacitated, or upon your death. Plus, youll need to name people to act as your power of attorney for health care and finances. Choosing the right people for these roles involves thought and sensitivity. Obviously, you want individuals who are competent and reliable, but you also need to be aware that some family members could feel slighted if others are assigned roles they feel they could do. By being aware of these possible conflicts, you can be better prepared to address them.Here's one more suggestion: Let your family know that this initial meeting doesnt mean the end of communications about your estate plans. Encourage your loved ones to contact you with questions whenever they want. You may need to hold additional family meetings in the future, but by laying the initial groundwork, you will have taken a big first step in establishing the legacy youd like to leave.   Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC.  Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.

If youve retired, you may have thought you closed the book on one chapter of your life. But what happens if you need to reverse your retirement?           Due to higher inflation and rising interest rates, many retirees are taking out more money from their retirement accounts than they had originally anticipated. As a result, some are headed back to the workforce. If youre thinking of joining them, youll need to consider some factors that may affect your finances.First, if youve been taking Social Security, be aware that you could lose some of your benefits if you earn over a certain level, at least until you reach your full retirement age, which is likely between 66 and 67. Specifically, if you are under your full retirement age for the entire year, Social Security will deduct $1 from your benefit payments for every $2 you earn above the annual limit, which, in 2024, is $22,320. In the year you reach your full retirement age, Social Security will deduct $1 in benefits for every $3 you earn above a different limit, which, in 2024, is $59,520.Social Security will only count your earnings up to the month before you reach your full retirement age, at which point your earnings will no longer reduce your benefits,  regardless of how much you earn. Also, Social Security will recalculate your benefit amounts to credit you for the months your payments were reduced due to your excess earnings. Social Security also allows you to pay back early benefits received if you withdraw your application within 12 months of starting benefits. This move could help you receive substantially higher benefits at full retirement age.Your Social Security isnt the only benefit that could be affected by your earnings. Your Medicare Part B and Part D premiums are based on your income, so they could rise if you start earning more money. Also, your extra income could push you into a higher tax bracket.Nonetheless, you can certainly gain some benefits by returning to the working world. Obviously, youll be making money that can help you boost your daily cash flow and possibly reduce some debts. But depending on where you work, you might also be able to contribute to a 401(k) or other employer-sponsored retirement plan. And regardless of where you work, youll be eligible to contribute to an IRA. By putting more money into these accounts, you may well be able to strengthen your financial position during your retirement years. You might also be able to receive some employee benefits, such as group health insurance which could be particularly valuable if you havent yet started receiving Medicare.In addition to the potential financial advantages of going back to work, you might get some social benefits, too. Many people enjoy the interactions with fellow workers and miss these exchanges when they retire, so a return to the workforce, even if its on a part-time basis, may give you an emotional boost.In the final analysis, youll want to weigh the potential costs of going back to work against the possible benefits. Theres no one right answer for everyone, but by looking at all the variables, you should be able to reach a decision that works for you. Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

In the popular imagination, receiving an inheritance always sounds like a good thing after all, who doesnt want a financial windfall? And inheritances can certainly be life-altering events. But they can cause challenges, so youll want to help your heirs be prepared.            To assist in this preparation, try to address some key questions affecting your heirs:             Do they know whats in your estate plans? Your family and other heirs will be much better prepared to deal with an inheritance if they know what to expect. Thats why its so important that you share your estate plans with everyone involved. You need to let them know the wishes and decisions youve expressed in your will and other legal arrangements, such as a living trust. Of course, sharing this information doesnt necessarily mean that all your heirs will be completely satisfied with your choices but at least they wont be surprised, and perhaps will be less likely to cause disputes when the time comes to settle your estate.             Will they know what to do with the money or other assets? You may be planning to leave your grown children a sizable amount of assets, possibly including cash, stocks, real estate, IRAs, 401Ks or other types of valuable personal property. But this inheritance brings with it several possible questions: Do your heirs already have an investment platform ready to accept inherited stocks? If you do leave behind rental property or a vacation home, can it be easily sold? These types of issues are generally not hard to resolve, but the more prepared your heirs are for their inheritance, the quicker they can take whatever actions are needed.               Are they prepared to handle any taxes that may result from the inheritance? Unless you have a very large estate, your heirs likely wont face federal estate taxes. (In 2024, the first $13.61 million of an estate is exempt from federal estate taxes.) However, other types of taxes may apply. A few states assess state inheritance taxes, and your heirs could incur federal and/or state income taxes when they withdraw money from inherited assets funded with pre-tax dollars, such as some retirement accounts. They could also face capital gains taxes when they sell inherited assets, such as stocks, for more than they were worth at the time of the inheritance. In any case, inheritance-related taxes can be complex, so you and your family and other heirs should discuss these issues with your tax advisor.             Will they be liable for any outstanding expenses? If you have developed a comprehensive estate plan, it's unlikely your heirs will be on the hook for any outstanding expenses, such as credit card balances or funeral costs. If you do still carry a mortgage, though, and you are planning on leaving your house to your heirs, they may want to be prepared to act quickly to sell it.            When leaving an inheritance, theres a lot involved emotionally, financially and legally. So, do whatever you can to make the entire process as easy as possible for your loved ones. By communicating your wishes regarding the inheritance, and by considering all the issues that may arise, you can go a long way toward achieving the outcomes you desire. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.comThis article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Your investment goals are as unique as the route you take to reach them. But regardless of your course, we believe these 10 rules of the road can help you get where you want to be.1. Develop your strategyYour financial advisor gets to know you your long-term goals, investment time frame and comfort level with risk before recommending a strategy. The more you can outline what you are trying to achieve, the more he or she can tailor your strategy to you.2. Understand the riskAs a rule, the higher the return potential, the more risk youll have to accept. To determine what makes sense for you, your financial advisor will want to know:What is your comfort level with risk? Understanding this can help him or her determine how you may react to market ups and downs over time.How much risk are you able to take? The amount of time you have to invest plays an important role in determining how much risk youre able to take.How much risk do you need to take? Your financial advisor will want to determine the return, and therefore the risk, that may be necessary to reach your long-term goals.3. Diversify for a solid foundationYour portfolios foundation is your asset allocation, or how your investments are diversified among stocks, bonds, cash, international and other investments. Your mix should align with your goals and comfort with risk.4. Stick with qualityOf all the factors to consider when investing, Edward Jones believes quality is one of the most important. Its also one of the most overlooked. Although it may be tempting to buy a popular investment, it may not fit with the rest of your portfolio, and it may be riskier than you expect. If it sounds too good to be true, it probably is.5. Invest for the long termDespite stories of fortunes made on one or two trades, most successful individual investors make their money over time, not overnight. One of the biggest mistakes you can make is trying to time the markets.6. Set realistic expectationsFirst, youll need to determine the return youre trying to achieve which should be the return you need to reach your goals. Then you can base your expectations on your asset allocation, the market environment, and your investment time frame.7. Maintain your balanceYour portfolios mix could drift from its initial objectives from time to time. You can rebalance to reduce areas where your investments are overweight or add to areas where they are underweight. By rebalancing on a regular basis, you can help ensure your portfolio remains aligned with your objectives and on track to reach your long-term goals.8. Prepare for the unexpectedUnforeseen events could derail what youre working so hard to achieve. By preparing for the unexpected and building a strategy to address it, youll be better positioned to handle the inevitable bumps along the way.9. Focus on what you can controlYou cant control market fluctuations, the economy, or the political environment. Instead, you should base your decisions on time-tested investment principles, which include:Diversifying your portfolioOwning quality investmentsMaintaining a long-term perspective10. Review your strategy regularlyThe one constant you can expect is change. Thats why its so important that you and your financial advisor review your strategy on a regular basis.Think of your financial advisor as your navigator on this journey. By working together to regularly review your strategy and make the adjustments you need, you can have a clearer picture of where you stand and what you need to do to help reach your goals.

As a business owner, youve always got a lot to think about today  but what about tomorrow? Have you thought about the person you would like to see as your successor?If you havent, youre not alone. Of the business owners who have created a succession plan, about 70% have named a successor for their businesses and have taken measures to train and prepare this successor, according to a survey by Morning Consult, NEXT 360 Partners and Edward Jones. But this means that nearly a third of business owners have not taken this action, leaving a big gap in their succession plans.So, if you havent yet named a successor, you may want to start thinking about it. It may be helpful to ask yourself these questions: Should I look inside or outside? You could find a successor whos already working for you, or you could find someone from the outside. On one hand, an internal successor would already know how you operate and what you value as you run your business. But on the other hand, an external successor could bring a new point of view and a different set of skills, both of which might prove beneficial. Youll need to weigh both choices carefully. How prepared is a potential successor? Whether you decide on an internal or external candidate, youll want to be sure the person you choose is prepared to take over the business. Do they have management skills? Will they share your commitment to your businesss success? Will they be able to build strong relationships with your customers or other employees? Are they enthusiastic about the work involved? Youll want to evaluate all these types of factors in making your selection.  Are there potential family squabbles? If you would like a family member to become your successor, you may need to be careful about whom you choose and how you communicate your decision to the entire family. Even if it may make sense for one individual to take over the business, perhaps because theyre already involved in it and theyre interested in taking it over, it doesnt mean hurt feelings wont develop among other family members, who may feel they are somehow being cheated out of what they view as their share of a valuable inheritance. So, if you are convinced that youre making the right choice, explain your reasoning to all family members and let them know that youre also exploring other, tangible ways for them to share in your family wealth, possibly by leaving them other financial assets through your estate plans. How will my choice of a successor affect my finances? Passing the business to an heir, selling it to an existing employee or selling it to an outside buyer can yield vastly different results for you in terms of your personal finances. Youll need to consider the possible business transfer arrangements, such as a buy-sell agreement, to determine which one is in your best interests. In doing so, you may want to work with your financial advisor or a consultant with experience in selling or transferring a business.Choosing a successor is one of the most important decisions youll make  so, take your time, evaluate your options and work to reach a decision that works well for everyone involved.Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com   This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

            We all hope to enjoy long, healthy lives, retaining the ability to think clearly and make our own decisions. But life doesnt always work out that way which is why you need to prepare for a potential incapacity that could affect your independence and possibly create financial problems for your family.            So, in thinking about incapacity planning, you may want to consider the following arrangements:               Health care power of attorney When you establish a health care power of attorney, you name someone, such as a spouse or adult child, to make medical decisions on your behalf, should you become incapable of making them on your own due to disability or illness. These decisions include choosing doctors, treatments and care facilities.             Financial power of attorney With a financial power of attorney, you designate someone to assume a variety of duties for you in case you become incapacitated. These tasks include investing, selling property, paying bills and debts, collecting Social Security benefits and adding or changing insurance policies.             When establishing a health care or financial power of attorney, you may need to decide whether its durable or springing. A durable power of attorney typically takes effect immediately after you sign it, have it notarized and witnessed. So, the person youve chosen to have power of attorney sometimes called an agent can act on your behalf whenever you choose. On the other hand, you could select a power of attorney that springs into effect only when you become incapacitated hence, the springing designation.            One issue affecting a springing power of attorney involves the speed with which it can be enacted. Generally, it wont go into effect until a licensed physician declares in writing that the person granting the power of attorney is indeed incapacitated. This could cause a problem if your chosen agent needs to act quickly on your behalf. Its because of this potential delay that a durable power of attorney is often favored over a springing power of attorney. However, everyones circumstances are different, so if you have a choice between a durable or springing power of attorney, you may want to consult with an estate-planning professional for guidance.            Apart from the health care and financial powers of attorney, you may also want to consider one other incapacity-related legal document a living will. When you establish a living will, you describe the steps you would or wouldnt want taken to keep you alive, along with other medical decisions, including pain management and organ donation. Obviously, the decision to create a living will is highly personal, involving your feelings about self-sufficiency and the circumstances that define the quality of life you wish to have. But the mere fact of having a living will can relieve your loved ones of having to make potentially agonizing decisions.            Planning for an incapacity may not be the most pleasant task but its an important one. Of course, you may never become incapacitated at all, but by making the proper arrangements, you can make things easier for yourself and your family just in case.  Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.  

You may spend decades contributing to various retirement accounts. But for some accounts, such as a traditional IRA and 401(k), you must start withdrawing funds at a certain point. What should you know about this requirement? To begin with, the rules governing these withdrawals technically called required minimum distributions, or RMDs have changed recently. For many years, individuals had to begin taking their RMDs (which are based on the account balance and the IRS life expectancy factor) when they turned 70. The original SECURE Act of 2019 raised this age to 72, and SECURE 2.0, passed in 2022, raised it again, to 73. (If you turned 73 in 2023, and you were 72 in 2022 when the RMD limit was still 72, you should have taken your first RMD for 2022 by April 1 of this year. You will then need to take your 2023 RMD by Dec. 31. And going forward, youll also need to take your RMDs by the end of every year.) Not all retirement accounts are subject to RMDs. They arent required for a Roth IRA, and, starting in 2024, wont be required for a Roth 401(k) or 403(b) plan. But if your account does call for RMDs, you do need to take them, because if you dont, you could face tax penalties. Previously, this penalty was 50% of the amount you were supposed to have taken, but SECURE 2.0 reduced it to 25%. When you take your RMDs, you need to be aware of a key issue: taxes. RMDs are taxed as ordinary income, and, as such, they could potentially bump you into a higher tax bracket and possibly even increase your Medicare premiums, which are determined by your modified adjusted gross income. Are there any ways you could possibly reduce an RMD-related tax hike? You might have some options. Here are two to consider: Convert tax-deferred accounts to Roth IRA. You could convert some, or maybe all, of your tax-deferred retirement accounts to a Roth IRA. By doing so, you could lower your RMDs in the future while adding funds to an account youre never required to touch. So, if you dont really need all the money to live on, you could include the remainder of the Roth IRA in your estate plans, providing an initially tax-free inheritance to your loved ones. However, converting a tax-deferred account to a Roth IRA will generate taxes in the year of conversion, so youd need the money available to pay this tax bill. Donate RMDs to charity. In whats known as a qualified charitable distribution, you can move up to $100,000 of your RMDs directly from a traditional IRA to a qualified charity, avoiding the taxes that might otherwise result if you took the RMDs yourself. After 2023, the $100,000 limit will be indexed to inflation. Of course, before you start either a Roth IRA conversion or a qualified charitable distribution, you will need to consult with your tax advisor, as both these moves have issues you must consider and may not be appropriate for your situation. But its always a good idea to know as much as you can about the various aspects of RMDs they could play a big part in your retirement income strategy.   Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL  34205 941-462-2445 chad.chaote@edwardjones.com   This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.   Edward Jones, Member SIPC

Many of us have found that our priorities and perspectives have shifted with recent events. Your financial strategy may need to adjust accordingly, and now may be the perfect opportunity to get your financial house a little more in order, putting you on better footing for whatever the future holds. Here are a few things to consider pick and choose which apply most to your financial situation.Build/Adjust your budgetCreate your budget: Collect a few months' worth of bank and credit card statements so you can understand how much money you have to work with and where it's going.Cancel subscriptions you're not using: These are generally small monthly charges but add up over time.Check for lower insurance rates: Ensure you're getting the best rate without sacrificing coverage.Refinance your mortgage: Your local lender should be able to compare your current terms to the rates available now to determine if you would benefit from refinancing your mortgage.Tackle your debtAdd it all up: Make note of the type of debt (credit card, student loan, auto payment, etc.), the total amount owed, the minimum payment and the interest rate being charged.Check your credit report: Mistakes on credit reports are incredibly common, so make sure everything is accurate and there are no negative errors that could result in you paying more for your debt.Consolidate your debt: This can mean fewer payments with balances being charged lower interest rates. Be aware of any fees that get charged and the potential impact to your credit score.Make a plan to pay it down: Determine how much money you have to reduce debt, and then make a plan for paying it down. This can be a particularly tough step, so don't hesitate to reach out to your financial advisor for help.Read more about tackling your debt.Safeguard your planPlan your emergency savings: Emergency savings help protect against an unexpected expense and/or loss of income. Even relatively small amounts of savings can help create financial stability.Do an insurance checkup: Your financial advisor can explain the importance of different types of insurance (life, disability, long-term care, etc.) and determine if you have adequate coverage.Set up a password manager: Having unique and secure passwords for different accounts, especially your financial accounts, creates more security to protect you from online threats.Consider freezing your credit: Placing a freeze on your credit reports restricts access and makes it more difficult for identify thieves to open new accounts without your knowledge.Read more about preparing for the unexpected.Take advantage of market fluctuationsInvest toward future goals: Although past performance is not a guarantee of future results, pull-backs in the market have historically been a great time to invest. Your financial advisor can help you determine how best to put your money to work to help you meet your financial goals.Rebalance: Large market swings can throw off the balance you want among your investments. Revisit your portfolio to ensure your investments are properly aligned to keep you on the right track.Roth conversion: If you have a traditional retirement account, a down market or year in which you have lower income can be an opportune time if you've been wanting to convert it to a Roth retirement account. Talk with your financial advisor and tax professional to determine if this could be beneficial.Tax loss harvesting: If you have taxable investments, selling at a loss can reduce your tax bill. It's best to talk with your financial advisor and tax professional to determine if this is an appropriate strategy.Ensure your wishes are honoredUpdate beneficiaries: The beneficiaries for your financial accounts (bank, savings, retirement, and investments), as well as your insurance and annuity policies, instruct these institutions on who the funds should go to if something happens to you. Read more about beneficiary designations.Create or update legal documents: Many legal professionals are taking appointments remotely, allowing you to create (or update) important documents like advanced directives, medical or financial power of attorney and a will from home.Organize and share your legal documents: If you've already got your legal documents in place and updated, now is a good time to get them organized and share them with key people.Your financial advisor or legal professional can help you with these important documents.Start a conversationTalk with your parent(s): Determine how your parents plan on meeting any long-term care needs they might have, who has their financial and medical powers of attorney, and their end-of-life wishes.Teach your young children: Take some time to share money lessons with your children. Being transparent and open now will help them navigate their finances as adults.Share with your adult children  At a minimum your children should understand who has health care and financial decision-making rights for you, as well as your end-of-life wishes.Ask for help  We can help you navigate through the financial to-dos and conversations that can otherwise feel overwhelming. That's what we're here for!Read more about family financial conversations.Whether it's talking to older parents about their long-term care needs, your young kids about early money lessons or your adult children about your own plans, having those conversations now can help you be better prepared for the future. Not everything will apply to your situation, but taking even one small step today can help ensure your financial house is in order for whatever tomorrow holds.

Its probably not on your calendar, but September is Life Insurance Awareness Month. And its indeed a pretty good idea to be aware of what life insurance can do for you.            Life insurance can help you in two main ways. First, life insurance policies offer a death benefit that can assist your family if youre no longer around. And second, some types of life insurance offer the chance to build cash value, which can work for you during your lifetime.            Lets look at the death benefit first. If something were to happen to you, your life insurance proceeds could help your family meet at least three major needs:            Paying a mortgage The biggest expense many families face is their monthly mortgage. If you werent around, could your family continue paying the mortgage? Or would they have to move? With asufficient life insurance death benefit, they could remain in their home, meeting the monthly mortgage payments, or perhaps pay off the loan entirely (although this might not be in their best financial interest).            Paying for education If you have young children, you may already be saving for their college education because you know college is expensive. Without your income, would college, or some other form of post-secondary education or training, still be realistic? Again, the proceeds from an insurance policy could make the difference.            Paying off debts You might have a car loan, credit card debt or other financial obligations. If your surviving spouse is a joint account holder for these debts, they could still be liable for paying them off. But insurance proceeds could be used to retire the debts immediately, or over time.          All life insurance policies offer a death benefit. But permanent insurance, unlike term insurance, also offers the chance to build cash value which can be a valuable supplement to your IRA and 401(k) or other retirement accounts.             A cash value policy such as whole life also can provide flexibility for changing financial needs or emergencies in retirement. And heres another key advantage: Because this type of policy provides fixed, guaranteed returns, it is not dependent on the performance of the financial markets and is thus insulated from the market downturns that can happen while youre retired. So, taking money from the cash value of your whole life policy may help you avoid selling investments that have temporarily declined in value.            Keep in mind, though, that the premiums for a cash value policy will generally be substantially higher than those for term insurance. Thats why some people choose to buy term and invest the difference rather than purchase a permanent life policy with cash value. Whether this strategy is right for you depends on a few different factors, perhaps the most important of which is your ability and willingness to consistently invest the money you would have otherwise placed in a cash value policy.             In any case, should you choose cash value insurance, you generally have three ways to get at the money: withdrawals, loans or surrender of the policy. Youll want to weigh all the factors involved including taxes and the effect on the policys death benefit when deciding on how to access the cash value.             Life Insurance Awareness Month ends on Sept. 30. But your need for life insurance, and the potential benefits it provides, can last a lifetime.  Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC  Edward Jones is a licensed insurance producer in all states and Washington, D.C., through Edward D. Jones & Co., L.P. and in California, New Mexico and Massachusetts through Edward Jones Insurance Agency of California, L.L.C.; Edward Jones Insurance Agency of New Mexico, L.L.C.; and Edward Jones Insurance Agency of Massachusetts, L.L.C. California Insurance License OC24309

Its been a bumpy year for the financial markets which means that some of your investments may have underperformed or lost value. Can you use these losses to your advantage?Its possible. If you have some investments that have lost value, you could sell them to offset taxable capital gains from other investments. If your losses exceed gains for the year, you could use the remaining losses to offset up to $3,000 of ordinary income. And any amount over $3,000 can be carried forward to offset gains in future years.This tax-loss harvesting can be advantageous if you plan to sell investments that youve held in taxable accounts for years and that have grown significantly in value. And you might receive some gains even if you take no action yourself. For example, when you own mutual funds, the fund manager can decide to sell stocks or other investments within the funds portfolio and then pay you a portion of the proceeds. These payments, known as capital gains distributions, are taxable to you whether you take them as cash or reinvest them back into the fund.Still, despite the possible tax benefits of selling investments whose price has fallen, you need to consider carefully whether such a move is in your best interest. If an investment has a clear place in your holdings, and it offers good business fundamentals and favorable prospects, you might not want to sell it just because its value has dropped.On the other hand, if the investments youre thinking of selling are quite similar to others you own, it might make sense to sell, take the tax loss and then use the proceeds of the sale to purchase new investments that can help fill any gaps in your portfolio.If you do sell an investment and reinvest the funds, youll want to be sure your new investment is different in nature from the one you sold. Otherwise, you could risk triggering the wash sale rule, which states that if you sell an investment at a loss and buy the same or a substantially identical investment within 30 days before or after the sale, the loss is generally disallowed for income tax purposes.Heres one more point to keep in mind about tax-loss harvesting: Youll need to take into account just how long youve held the investments youre considering selling. Thats because long-term losses are first applied against long-term gains, while short-term losses are first applied against short-term gains. (Long-term is defined as more than a year; short-term is one year or less.) If you have excess losses in one category, you can then apply them to gains of either type. Long-term capital gains are taxed at 0%, 15% or 20%, depending on your income, while short-term gains are taxed at your ordinary income tax rate. So, from a tax perspective, taking short-term losses could provide greater benefits if your tax rate is higher than the highest capital gains rate.Youll want to contact your tax advisor to determine whether tax-loss harvesting is appropriate for your situation  and youll need to do it soon because the deadline is Dec. 31. But whether you pursue this technique this year or not, you may want to keep it in mind for the future because youll always have investment tax issues to consider.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com  This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC

Youll find some big differences between traditional and speculative investments and knowing these differences can matter a great deal when youre trying to reach your financial goals.To begin with, lets look at the basic types of traditional and speculative investments. Traditional investments are those with which youre probably already familiar: stocks, bonds, mutual funds, government securities, certificates of deposit (CDs) and so on. Speculative investments include cryptocurrencies, foreign currencies and precious metals such as gold, silver and copper. Now, consider these three components of investing and how they differ between traditional and speculative investments:The first issue to consider is risk. When you own stocks or stock-based mutual funds, the value of your investments will fluctuate. And bond prices will also move up and down, largely in response to changing interest rates. However, owning an array of stocks small-company, large-company, international, etc. can help reduce the impact of volatility on your stock portfolio. And owning a mix of short- and long-term bonds can help you defend yourself somewhat against interest-rate movements. When interest rates fall, youll still have your longer-term bonds, which generally but not always pay higher rates than short-term ones. And when interest rates rise, you can redeem your maturing short-term bonds at potentially higher rates. With speculative investments, though, price movements can be extreme as well as rapid. During their short history, cryptocurrencies in particular have shown astonishingly fast moves up and down, resulting in huge gains followed by equally huge, or bigger, losses. The risk factor for crypto is exacerbated by its being largely unregulated, unlike with stocks and bonds, whose transactions are overseen by well-established regulatory agencies. There just isnt much that investors can do to modulate the risk presented by crypto and some other speculative investments.A second key difference between traditional and speculative investments is the time horizon involved. When you invest in stocks and other traditional investments, you ideally should be in it for the long term its not a get rich quick strategy. But those who purchase speculative investments want, and expect, quick and sizable returns, despite the considerable risk involved. A third difference between the two types of investments is the activity required by investors. When youre a long-term investor in traditional investments, you may not have to do all that much, once youve built a portfolio thats appropriate for your risk tolerance, goals and time horizon.After that point, its mostly just a matter of monitoring your portfolio and making occasional moves youre not constantly buying and selling, or at least you shouldnt be. But when you speculate in crypto or other instruments, you are constantly watching prices move and then making your own moves in response. Its an activity that requires considerable attention and effort.One final thought: Not all speculative instruments are necessarily bad investments. Precious metals, for instance, are found in some traditional mutual funds, sometimes in the form of shares of mining companies. And even crypto may become more of a stable vehicle once additional regulation comes into play. But if youre investing for long-term goals, such as a comfortable retirement rather than speculating for thrills and quick gains, which may disappear just as quickly  you may want to give careful thought to the types of investments you pursue. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com TThis article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

For more information on the writer Chad Choate, AAMS- Edward Jones, CLICK HERE!At some point, almost everyone asks, "Will my money last?"And even though life doesn't hand out guarantees, you can feel more confident about your answer if you prepare with the help of your financial advisor. We'll walk you through the process and discuss all your "what if" and "how-to" questions.The answer to how long your money will last really comes down to how much you've saved and how you spend it. And if you're already retired or close to it, focusing on what you can control now your spending probably makes the most sense.Be flexible when taking money outSince your spending needs may rise and fall over the years, be flexible. For example, if you can take out $10,000, but you only need $8,000, then just take out $8,000. And if you feel your purchasing power is keeping pace with inflation fairly well, dont automatically take out more every year.Maintain a cash balanceWe recommend a cash balance to cover about 12 months worth of living expenses, as well as a short-term fixed-income ladder(in investments like short-term bonds or certificates of deposit) for your first few years of expenses.This may be especially important if the market drops in the first few years after you retire. Your cash reserves can help you avoid selling investments and losing potential growth opportunities if you experience down years in the market early in retirement.Seek income guaranteesYou can receive guaranteed income* through annuities offered by insurance companies. Since certain annuities can offer insured payments for life, they may help fortify your income by providing income insurance a lifetime payment stream regardless of market performance or how long you live. Like any investment, annuities have trade-offs to consider.Protect against unexpected or health care costsTo help combat rising long-term health care costs, you may also consider options, such as long-term care insurance, that address where care is administered and how to pay for it. Because these options and their coverage limitations can be complex, we recommend working with your financial advisor to find out which may make the most sense for you.Review your strategy regularlyThe review may be your most important step. Remember, your retirement could last 25 years or more, and undoubtedly your goals and situation will change over time. Regularly reviewing your strategy with your financial advisor and making adjustments (if necessary) could help ensure your retirement stays on track.

During your working years, you know where your income is coming from because youre working. But once you retire, youll have to identify your income sources, know how much you can expect from them and know how to manage them to help support a retirement that could last two or three decades.So, where will your retirement income come from? And what decisions will you need to make about these income sources? Consider the following:            Retirement accounts If youve regularly contributed to an IRA and a 401(k) or similar employer-sponsored retirement plan, you likely have accumulated substantial amounts of money in these accounts but during your retirement, youll need to start tapping into them. In fact, once you turn 73, youre required to start taking withdrawals from some of your retirement accounts, with the amount determined by your age and account balance. You could take out more than these amounts (technically called required minimum distributions, or RMDs) but you cant take less without incurring penalties. Many people take out 4% of their balance each year, and this guideline may be reasonable, but everyones situation is different. So, youll need to weigh various factors including your age, health and other sources of income before deciding on an appropriate withdrawal rate.            Social Security You can start collecting Social Security at age 62, but your payments will be much higher if you wait until your full retirement age, which will be between 66 and 67. And your benefits will reach the maximum amount if you wait until 70 before collecting. So, your decision on when to take your benefits will depend on whether you can afford to wait, and for how long. In making this choice, youll also need to consider your health and your family history of longevity. And if youre married, you may want to factor in spousal benefits when deciding when you should collect Social Security. A spouse can receive either their own benefit, based on their work record, or up to 50% of their spouses benefit, whichever is greater. So, if one spouse has a much higher benefit, it may make sense for that spouse to delay taking Social Security as long as possible so that both spouses can receive bigger payments.             Earned income Even if you have retired from one career, it doesnt mean you can never receive any earned income again. If you have specific skills that can translate to part-time work or a consulting arrangement, you might want to consider reentering the work force in this way. With the added income, you might be able to afford delaying Social Security, and you would still be eligible to contribute to an IRA.            Supplemental lifetime income There arent many guarantees in the financial and investment worlds but one of them is the income from a fixed annuity, which can be structured to provide you with a lifetime income stream. Annuities arent for everyone, however, and they do involve penalties for early withdrawals and lack of protection from inflation.             By learning all you can about your potential retirement income sources, and by understanding how to manage this income to your best advantage, you can help yourself achieve a comfortable and more rewarding retirement. Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC Edward Jones is a licensed insurance producer in all states and Washington, D.C., through Edward D. Jones & Co., L.P., and in California, New Mexico and Massachusetts through Edward Jones Insurance Agency of California, L.L.C.; Edward Jones Insurance Agency of New Mexico, L.L.C.; and Edward Jones Insurance Agency of Massachusetts, L.L.C. California Insurance License OC24309

Its not as well-known as Halloween, but National Retirement Security week happens every October the third week, to be precise and while it doesnt involve ghosts and goblins, it does deal with something even more frightening: the risk of not being able to enjoy a comfortable retirement. Through various events, this occasion highlights ideas about building retirement security. What steps can you take?Here are some suggestions: Dont underestimate your longevity. Consider this: 65-year-old men can expect to live another 20 years, while 65-year-old women can anticipate almost 22 more years, according to the Society of Actuaries. And these figures are just averages, meaning you could well exceed these ages, perhaps by many years. So, in thinking about how much money youll need as a retiree, be aware that you could spend two, or even three, decades in retirement. Dont underestimate health care costs. When you retire, some of your expenses such as transportation, wardrobe and other costs associated with your career will drop. Others will not and may even increase. Health care is a prime example: Many people assume that Medicare or their Medicare Advantage plan will take care of virtually all their health care costs in retirement, but thats not the case. Generally speaking, you could plan on spending $4,500 to $6,500 per year on health care costs during retirement, excluding the large expenses connected with long-term care. Your actual costs could be higher or lower, depending on your health, prescription drugs and supplemental insurance coverage, but make sure you plan for sizable health care costs in your projected retirement budget. Contribute as much as you can afford to your retirement plans. Try to put in as much as you can afford to your 401(k) or other employer-sponsored retirement plan and try to increase your contributions whenever your salary goes up. You may also be eligible to contribute to a traditional or Roth IRA, which offers tax benefits and a wide variety of investment options. (Contributions to a Roth IRA may be limited based on your income.)Once you reach retirement, you can still make some moves that could help boost your financial security: Maintain an appropriate investment mix. When you retire, you might be tempted to shift most of your portfolio into highly conservative investments to lock in gains and avoid being over-exposed to market volatility that could cause short-term losses. Yet, even in retirement, you should still own some growth-oriented investments that can potentially help keep you ahead of inflation. In fact, its important to periodically rebalance your investments back to your preferred mix to avoid taking too much or too little risk, so you may want to consult with a financial advisor. Identify a suitable withdrawal rate. You dont want to take out so much from your portfolio each year that you run the risk of outliving your money. So, youll want to determine an annual withdrawal rate that can reduce this danger. A common withdrawal rate to start retirement is 4%, but your own rate should be based on several factors: your age, size of portfolio, other sources of income and so on. It can be challenging to make all the moves necessary to help achieve retirement security but its worth the effort. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445Chad.choate@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.  Edward Jones, Member SIPC

Summertime is almost here and for many people that means its time to hit the road. But even if you decide to take a vacation, youll want other areas of your life to keep working especially your investments.            So, how can you prevent your investments, and your overall financial strategy, from going on vacation?  Here are a few suggestions:            Check your progress. You want your investments to be working hard for you, so youll need to check on their performance periodically but be careful about how you evaluate results. Dont compare your portfolios results against those of a market index, such as the S&P 500, which tracks the stock performance of 500 large U.S. companies listed on American stock exchanges. This comparison may not be particularly valid because your own portfolio ideally should include a range of investments, including U.S. and foreign stocks, corporate and government bonds, certificates of deposit (CDs) and other securities. So, instead of checking your progress against a market index, use benchmarks meaningful to your individual situation, such as whether your portfolio is showing enough growth potential based on a compounding rate of return to keep you moving toward a comfortable retirement and other long-term goals.            Invest with a purpose. When you work intensely at something, its usually because you have a definite result in mind. And this sense of purpose applies to investing, too. If you buy a stock here, and another one there, based on hot tips you might have seen on television or the internet, you may end up with a jumbled sort of portfolio that doesnt really reflect your needs. Instead, try to follow a long-term investment strategy based on your financial goals, risk tolerance, asset accumulation needs, liquidity and time horizon, always with an eye toward where you want to go in life how long you plan to work, what sort of retirement lifestyle you envision, and so on. Be strategic with your investments. Over the years, you will likely have a variety of competing financial goals and youll want your investment portfolio working to help achieve all of them. That means, though, that youll likely need to match certain investments with specific goals. For example, when you contribute to an IRA and a 401(k) or similar plan, youre putting away money for retirement. But if you want to help your children go to college or receive some other type of post-secondary education or training, you might want to save in a 529 education savings plan, which allows tax-free withdrawals for qualified education expenses. Or, if you want to save for a short-term goal, such as a wedding or a long vacation, you might choose an investment that offers significant protection of principal, so the money will be available when you need it. Ultimately, this type of goals-based investing can help ensure your portfolio is always working on your behalf, in the way you intended. When you take a vacation, you will hopefully be more relaxed and refreshed. But if you let your investments stop working as hard as they should, the results could be stressful. So, be diligent about your investment strategy, monitor it regularly and make those moves appropriate for your situation. By doing so, you cant necessarily guarantee a long day at the beach, but youll have a good chance of enjoying a sunny outlook.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

Its election season again. Over the next several months, youre bound to hear an array of promises from the candidates and speculation from the pundits on what those promises, if enacted, could mean for the country. But how might these possible outcomes affect your financial future?            When considering this question, keep these points in mind:             Campaign promises arent always kept. Presidential candidates often proclaim that they intend to institute major changes in tax or spending policies, or both. But the reality is that our political system is generally resistant to major changes, which may be good for investors, because the financial markets dislike the uncertainties accompanying these types of changes.             Economic progress doesnt always depend on Washington. Even when political leaders do succeed in enacting laws and regulations, the results can be unpredictable. Major economic indicators, such as jobs, interest rates and inflation, can move in unexpected directions.             Financial markets can do well no matter whos in charge. Since 1970, the stock market, as measured by the S&P 500, has returned, on average, more than 10% annually. And thats under every political combination Democratic president with Democratic Congress, Republican president with Republican Congress, or one party holding the presidency with the other holding Congress.            The fact is that many factors outside political leaders control drive financial markets. To cite just one example, its the Federal Reserve, not the president or Congress, that sets interest rates, and the Fed itself may do so in response to unforeseen or unexpected economic events, such as the supply chain backlogs brought on, in part, by the COVID-19 pandemic. And other events, including natural disasters, global political or military conflicts, oil production, and so on, also will have an impact on our economy and financial markets.            Therefore, instead of making investment decisions based on the political scene, vote for some tried-and-true strategies. For starters, try to build a diversified portfolio containing U.S. and international stocks or stock-based mutual funds, corporate bonds, U.S. Treasury securities, certificates of deposit (CDs) and other investments. While diversification cant protect against all losses or guarantee profits, it can help shield you from market volatility that might primarily affect one asset class. To put it simply, if you only owned stocks and the market dropped, your portfolio could decline more than if you also owned bonds, which frequently move in a different direction from stocks.            Heres another suggestion: Invest for the long term. The financial markets will always experience short-term downturns, but you dont want to overreact by selling investments to cut losses. After all, if youre not invested in the market, youll miss out on the early stages of the next rally, which is often when the biggest gains are made. Ultimately, the most successful investors are the ones who hold quality investments for decades as part of a strategy thats appropriate for their risk tolerance, time horizon and personal goals.            Elections can give political leaders a lot of influence but when it comes to making the right investment choices, youve got the power. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com  This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

Though many people use the words interchangeably, making the distinction between saving and investing could make a big difference in achieving your long-term goals. Whether its providing for your family, paying for your childrens education or living comfortably in retirement, investing may be the best way to get there. Saving is simply accumulating your money in a safe place so its readily available when you need it. Typically, youll earn a low, fixed rate of return, and can quickly access the cash when you need it. Money in a savings account may provide a cushion for emergencies and reduce the need to borrow or use credit cards. Keeping money in savings can also help fund upcoming goals, such as a vacation or buying a new car next year. But saving is not necessarily the best way to build wealth and financial security over time. Investing, on the other hand, puts your money to work over a period of years through interest or the increased value of your investments, potentially creating more money. Saving helps to maintain the amount of money put into an account but has little potential to generate more income. So, even though you may already be taking the first steps by saving, down the line, not investing some of those savings could make it much more difficult to provide for your childrens education, support your family and achieve other future goals, such as retiring comfortably. Remember your reasons for investing. Some people may shy away from investing, thinking its too risky. Although investing does pose risks, its important to bear in mind that not investing can also be a risk to your financial future. If your money doesnt grow, you may face the risk of not achieving your financial goals. Importantly, differences between saving and investing can add up over time. To illustrate, lets assume a 7% long-term return for a balanced investment portfolio and a 3% long-term return for savings (which is generous, given todays low interest rates).Over a long time frame, the difference between a 7% return and a 3% return is much more than just 4%it could be nearly $600,000. That can make a dramatic difference, for example, when youre building a nest egg to provide income in retirement. Assuming you were to withdraw 4% of your investment balance each year in retirement, a $410,000 nest egg would provide about $16,000 in income per yearbut a $990,000 investment portfolio could provide about $40,000 per year. The key is finding balance: having some emergency cash in savings but also investing enough to help keep you on track to reach your long-term goals. Talk to your financial advisor today for more information about incorporating investing into your financial strategy.  Chad Choate III, AAMSTM Financial Advisor 828 3rd Ave W Bradenton, FL 34205-8665 941-462-2445 Same contributions, different returns, different results 

             Now that weve reached 2024, you might be thinking about your goals and hopes for the new year. But in addition to whatever personal resolutions you might make volunteering, going to the gym more, learning a new language and others  why not make some financial resolutions, too?Here are a few to consider: Boost your retirement savings. If you can afford it, try to increase your contributions to your IRA and 401(k) or similar employer-sponsored retirement plan. The more you put away in these accounts, the greater your chances of reaching your retirement goals. At a minimum, contribute enough to your 401(k) to earn your employers match, if one is offered. And whenever your salary goes up, consider raising the amount you put in to your 401(k). Reduce your debts. Its not always easy to reduce your debts but its worth the effort. The lower your debt load, the greater your monthly cash flow. So, look for ways to consolidate debts or find other, possibly more productive, ways of using credit. And if you truly cant afford something thats nonessential, dont go into debt for it. Live within your means is an old piece of advice, but its just as valid now as ever. Build an emergency fund. If you suddenly needed a major home or car repair, or received a large medical bill not fully covered by insurance, would you have the funds available? If not, you might be forced to dip into your retirement accounts or other long-term investments. To avoid this possibility, try to build an emergency fund containing several months worth of living expenses, with the money kept in a liquid, low-risk account thats separate from the ones you use to meet your daily expenses. It can take a while to build such a fund, but if you make it a priority and contribute regular amounts each month, you can make good progress. Avoid emotional decisions. Too many people overreact to events in the financial markets because they let their emotions get the better of them. If the market is temporarily down, it doesnt mean you need to sell investments to cut your losses especially if these investments still have good fundamentals and are still appropriate for your portfolio. It can be hard to ignore market volatility, but youll be better off if you focus on the long term and continue following an investment strategy thats designed to meet your needs. Review your goals. Over time, your goals may have changed. For example, while you once might have wanted to retire early, and planned for it, you may now find that youd like to work a few more years. If thats the case, you may also need to adjust your financial and investment strategies. Revisit your estate plans. If youve married, divorced, remarried or added children to your family within the past few years, you may need to review the account titling and beneficiary designations on your 401(k) and other retirement assets, along with your estate-planning documents, such as your will or living trust. You might also need to revise these documents in other ways.              Of course, you may not be able to tackle all these resolutions at one time, but if you can work at them throughout the year, you can potentially brighten your financial outlook in 2024 and beyond.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com      This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.       Edward Jones, Member SIPC

If you work for a midsize or large company, you may soon be able to review your employee benefits package, as we are entering the open enrollment season. So, consider your options carefully, with an eye toward making changes appropriate for your needs.             Here are some of the key areas to look at:             Retirement plan  Depending on your employer, you could change your 401(k) or similar retirement plan at any time of the year, but you might want to use the open enrollment season to review your contribution amounts. If your salary has gone up over the past year, you might want to boost your pre-tax contributions (including catch-up contributions beginning at age 50). At a minimum, try to put in at least enough to earn your employers match, if one is offered. At the same time, look over how your contributions are allocated among the various investment options in your plan. Youll want your investment mix to reflect your goals, risk tolerance and time horizon.              Life insurance  If your employer offers group life insurance at no cost as an employee benefit, you may want to take it but be aware that it might not be enough to fully protect your family should anything happen to you. You may have heard that you need about seven to 10 times your annual income as a life insurance death benefit, but theres really no one right answer for everyone. Instead, you should evaluate various factors including your mortgage, your income, your spouses income (if applicable), your liabilities, the number of years until your retirement, number of children and their future educational needs to determine how much insurance you need. If your employers group policy seems insufficient, you may want to consider adding some outside overage.             Disability insurance  Your employer may offer no-cost group disability insurance, but as is the case with life insurance, it might not be sufficient to adequately protect your income in case you become temporarily or permanently disabled. In fact, many employer-sponsored disability plans only cover a short period, such as five years, so to gain longer coverage up to age 65, you may want to look for a separate personal policy. Disability policies vary widely in premium costs and benefits, so youll want to do some comparison shopping with several insurance companies.             Flexible spending account  A flexible spending account (FSA) lets you contribute up to $3,200 pre-tax dollars to pay for some out-of-pocket medical costs, such as prescriptions and insurance copayments and deductibles. You decide how much you want to put into your FSA, up to the 2025 limit. You generally must use up the funds in your FSA by the end of the calendar year, but your employer may grant you an extension of 2 months or allow you to carry over up to $640.              Health savings account  Like an FSA, a health savings account (HSA) lets you use pre-tax dollars to pay out-of-pocket medical costs. Unlike an FSA, though, your unused HSA contributions will carry over to the next year. Also, an HSA allows you take withdrawals, though they may be assessed a 10% penalty. To contribute to an HSA, you need to participate in a high-deductible health insurance plan.              Make the most of your benefits package it can be a big part of your overall financial picture.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC

As we transition from summer to autumn, change is all around us leaves are taking on new colors, temperatures are dropping, and the days are getting shorter. But you can also experience different seasons in various aspects of your life including when you invest. What are the seasons of an investors life? And how should you respond to them?            The first such season may happen when you are in your 20s and just starting out in the working world. At this stage in your life, its especially important to prioritize your financial goals. At the top of your mind may be a short-term goal, such as saving for a down payment on a house. To help achieve this goal, youd generally want to save in cash accounts and invest in fixed-income vehicles that offer preservation of principal. At the same time, you dont want to disregard a longer-term goal in particular, saving for retirement. While you may not be able to afford to put much away, every amount helps. And youll want to invest for growth.             Now, as the seasons of your life progress, lets consider your early middle years. At this point, youve moved past the down payment on your home and youre well into paying a mortgage regularly. And you might even have retired your student loans. But now, you may have another major goal helping build resources for your childrens college education or other post-secondary training. For this objective, you could consider several options, one of which is a 529 education savings plan, which can provide federally tax-free earnings and withdrawals if the money is used for qualified educational expenses. But youre also moving closer to retirement, so, if you can afford it, you may want to increase your contributions to your IRA and your 401(k) or other employer-sponsored retirement plan.            As the seasons continue to move on, and you find yourself in your later middle years, your financial situation may have changed significantly. Now, your children may be out of school, your earnings may have grown to their highest level, and you might even have paid off your mortgage. Given these factors, you may now be able to devote more of your resources toward your retirement by ramping up your IRA and 401(k) contributions even further, and possibly also considering other investment vehicles. And you may want to inject more balance into your portfolio, possibly lowering its overall risk level somewhat, especially in the years immediately preceding your retirement.            Once you move into your retirement season, you may need to continue, and possibly accelerate, the movement toward a more balanced portfolio one that provides you with more income-producing opportunities. Some investments provide current income, while others provide it in the future, but all of them can contribute to your ability to enjoy your retirement lifestyle. However, you still need some growth-oriented investments to help keep you ahead of inflation. Plus, its a good idea to keep at least a years worth of living expenses in cash and another few years worth in short-term, fixed-income investments. By doing so, you can help avoid having to sell assets in a down market.            The seasons of your life may come and go more quickly than you realize but you can be prepared for them by making the appropriate investment moves.   Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

Youve probably heard stories about fortunate investors who get in the ground floor of a new, hot company and quickly make a fortune. But while these things may happen, they are exceedingly rare and often depend on hard-to-duplicate circumstances and they really dont represent a viable way of investing for ones goals. A far more tried-and-true approach is the slow-and-steady method.To follow this strategy, consider these suggestions: Start small and add more when you can. When youre first starting out in the working world, you may not have a lot of extra money with which to invest, especially if youre carrying student loan debt. But one of the key advantages of the slow-and-steady method is that it does not require large investment sums to get going. If you can afford to put away even $50 or $100 a month into individual stocks or mutual funds, month after month, you may be surprised and pleased at how your account can grow. And when your salary goes up, you can put away more money each month. Take advantage of an employers retirement plan. If your employer offers a 401(k) or similar tax-advantaged retirement plan, try to take full advantage of it. Again, if youre just beginning your career, you may not be able to put away much in this type of plan, but even a small amount is better than nothing. And as soon as you can possibly afford it, try to put in enough to earn your employers matching contribution, if one is offered. These types of plans can offer some key benefits and perhaps the biggest one is that investing is automatic, in that the money is moved directly from your paycheck into the investments youve chosen within your 401(k) or other plan. Be prepared for downturns. The financial markets will always experience ups and downs. So, you need to be prepared for those times when your investment statements may show negative results. By understanding that these downturns are a normal part of the investment environment, you can avoid overreactions, such as selling quality investments with good fundamentals just because their price has temporarily dropped. Chart your progress regularly. A key element of a slow-and-steady investment approach is knowing how well its working. But its important to measure your progress in a way that makes sense for you. So, for example, instead of measuring your portfolios performance against that of an external stock market index, such as the S&P 500, you may want to assess where you are today versus one year ago, or whether the overall progress youre making is sufficient to help you meet the financial goals youve set for yourself well into the future. Another reason not to use a market index as a measuring tool is that the index only looks at a certain pool of investments, which, in the case of the S&P 500, is simply the largest companies listed on U.S. stock exchanges. But long-term investors try to own a range of assets U.S. and foreign stocks, bonds, government securities, certificates of deposit, and so on. Slow and steady may not sound like an exciting approach to investing. But its often the case that a little less excitement, and a lot more diligence, can prove to be quite effective.  Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

As we transition from summer to autumn, change is all around us leaves are taking on new colors, temperatures are dropping, and the days are getting shorter. But you can also experience different seasons in various aspects of your life including when you invest. What are the seasons of an investors life? And how should you respond to them?            The first such season may happen when you are in your 20s and just starting out in the working world. At this stage in your life, its especially important to prioritize your financial goals. At the top of your mind may be a short-term goal, such as saving for a down payment on a house. To help achieve this goal, youd generally want to save in cash accounts and invest in fixed-income vehicles that offer preservation of principal. At the same time, you dont want to disregard a longer-term goal in particular, saving for retirement. While you may not be able to afford to put much away, every amount helps. And youll want to invest for growth.             Now, as the seasons of your life progress, lets consider your early middle years. At this point, youve moved past the down payment on your home and youre well into paying a mortgage regularly. And you might even have retired your student loans. But now, you may have another major goal helping build resources for your childrens college education or other post-secondary training. For this objective, you could consider several options, one of which is a 529 education savings plan, which can provide federally tax-free earnings and withdrawals if the money is used for qualified educational expenses. But youre also moving closer to retirement, so, if you can afford it, you may want to increase your contributions to your IRA and your 401(k) or other employer-sponsored retirement plan.            As the seasons continue to move on, and you find yourself in your later middle years, your financial situation may have changed significantly. Now, your children may be out of school, your earnings may have grown to their highest level, and you might even have paid off your mortgage. Given these factors, you may now be able to devote more of your resources toward your retirement by ramping up your IRA and 401(k) contributions even further, and possibly also considering other investment vehicles. And you may want to inject more balance into your portfolio, possibly lowering its overall risk level somewhat, especially in the years immediately preceding your retirement.            Once you move into your retirement season, you may need to continue, and possibly accelerate, the movement toward a more balanced portfolio one that provides you with more income-producing opportunities. Some investments provide current income, while others provide it in the future, but all of them can contribute to your ability to enjoy your retirement lifestyle. However, you still need some growth-oriented investments to help keep you ahead of inflation. Plus, its a good idea to keep at least a years worth of living expenses in cash and another few years worth in short-term, fixed-income investments. By doing so, you can help avoid having to sell assets in a down market.            The seasons of your life may come and go more quickly than you realize but you can be prepared for them by making the appropriate investment moves.   Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC

You saved for years, made sacrifices and finally achieved your goal of retiring. Nothing can get in the way of your dreams now, right? Hopefully. But life isn't always that simple. Here's how to get ahead of some risks you might face in retirement.Risk: Outliving your moneyPrepare by:Not taking too much from your investments We typically recommend an initial annual withdrawal rate of 4%, with a 3% increase each year for inflation. However, the longer you expect to live, the lower that rate should be.Considering annuities  with lifetime income benefits Depending on your spending flexibility and how much you rely on your portfolio for income, you may want to consider annuities that guarantee an income payment for as long as you live.Risk: Unexpected health care costs or a need for long-term carePrepare by:Considering supplemental coverage Medicare Supplemental Insurance (Medigap) or Medicare Advantage (Part C) may help fill in the gaps for items that Medicare doesn't cover.Budgeting for long-term care costs Even if you dont anticipate needing nursing home care, you should still consider planning for some type of assisted living or home health care costs.Protecting against long-term care expenses Several options are available to help pay for long-term health care costs, including traditional long-term care insurance or combining life insurance with a long-term care benefits rider.Putting your wishes in writing Powers of attorney, health care directives and living wills can help you outline your wishes for future care. Work with your tax and legal professionals to create these legal documents.Risk: Market declines and inflationPrepare by:Staying diversified No one can predict the financial markets, but knowing how much risk you are willing and able to take as well as having a properly constructed portfolio can help you prepare. This includes:Diversifying your investments among stocks (which can help combat inflation), bonds and cash so success isnt tied to one company or one type of investment.Sticking with quality investments with proven track records and rebalancing as appropriate.Keeping your focus on your long-term goals, not on short-term fluctuations.Assessing your risk tolerance Determine how much risk you are willing and able to take, so you can be better prepared to stay on track during the inevitable short-term declines.Being flexible with your spending You should regularly review your spending strategy and withdrawal rate especially during years when the market doesn't perform well.Considering a CD/short-term fixed-income ladder Laddering involves owning a variety of quality fixed-income investments with staggered maturity dates. By doing this, you don't have to try to guess how interest rates will act in the future. Owning a variety of quality fixed-income investments with maturities 5 years and less can help you navigate a down market.Risk: Personal liabilityPrepare with:Umbrella liability insurance This protection is designed to kick in when coverage on other policies, such as home or auto, has been exhausted.Asset ownership structures Specific ownership structures designed to hold certain assets, such as a small business or rental property, could potentially reduce your personal liability in the case of an accident or lawsuit.How we can helpThere are other risks to consider when it comes to your retirement. But your Edward Jones financial advisor can walk through different scenarios with you to stress-test your strategy and make sure you stay on track even if one of these risks becomes a reality.

Submitted and Written By: Edwards Jones- click for more information*Bonds can help provide balanceThe key to riding out market fluctuations lies in owning a balanced mix of quality investments. Although studies show that stocks have historically provided better long-term returns, its your asset allocation the overall mix of stocks, bonds and cash that ultimately can determine how well your portfolio performs. Bonds can provide a steady stream of fixed-income payments that can help you weather stormy markets. Bond prices and interest rates may change, but you can expect to receive regular interest payments and the bonds original principal value at maturity, provided the bond doesn't default. Even if you don't need the income, bonds can help reduce risk through better price stability if you hold them until maturity. If a bond is sold prior to maturity, however, it may lose principal value.Through good times and badStock and bond prices generally don't move in tandem. In other words, when stock prices decline, bond prices may rise, and vice versa. This relation-ship helps a well-balanced mix of investments potentially achieve more stable returns. So if you own bonds when the stock market drops, they may help reduce your losses.The chart below shows that since 1975, bonds have provided positive returns during the eight years when stocks declined. Of course, past performance is not a guarantee of future results, but during those eight years, stock returns fell by an average of 12.5% while bond returns rose by an average of 6.7% a difference of 19.2%.

April is National Financial Literacy Month a good reminder that all of us can benefit from boosting our financial knowledge.But what is financial literacy? Theres no one single definition, but the term certainly covers these areas: Saving Most of us would probably agree that saving money is important, but actually doing it can be challenging given all the expenses of modern living. Still, techniques are available that everyone can follow, such as having money automatically moved each month from a checking or savings account to a financial account thats not used for daily expenses. Budgeting Budgeting isnt necessarily a fun activity but its an important one. And its easier than ever these days, given the variety of budgeting tools available online. By tracking your spending every month and organizing it into categories, you may be able to find areas where you can cut back, such as on streaming services you rarely use. Borrowing Virtually all of us carry some type of debt at various times in our lives. But its important to manage your debt load so it doesnt become too burdensome. One way of achieving this goal is to use good debts wisely such as a low-rate mortgage on your home and avoid bad debts such as high-rate credit cards used for unnecessary purchases. Investing As you go through life, youll likely have a variety of financial goals, such as making a down payment on a house, sending your children to college and attaining a comfortable retirement lifestyle. And to achieve these goals, youll need to invest for them. Thats why its important to learn about different types of investments and how to develop an investment strategy thats appropriate for your objectives, risk tolerance and time horizon. We arent born with these skills we have to learn them. Unfortunately, as valuable as they are, they arent widely taught to young people. In fact, according to a 2023 Edward Jones study conducted with Morning Consult, only 20% of respondents reported receiving financial education in school. This situation may be changing, though, as many states are now requiring or recommending personal finance education before high school graduation.For now, though, if you have younger children, try to teach them money management skills. You will likely find that they enjoy learning about these matters. You can make it fun for them in different ways, too. For example, to teach them about investing, why not buy them a share or two of stock of a company with which theyre familiar? Charting a stocks progress and learning something of the factors affecting its price can help children build a foundation in investing, which will be valuable when they reach the age when they can invest for themselves.But financial education isnt just for kids. If you feel that you are lacking somewhat in any of the key financial management areas mentioned above, you can always educate yourself by reading or talking to people knowledgeable in these subjects. You also might find it valuable to work with a financial professional someone who will take a holistic approach to your finances and make appropriate suggestions.National Financial Literacy Month will end on April 30, but the benefits of financial literacy can last a lifetime. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.choate@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.  Edward Jones, Member SIPC

As you know, the gig economy has been booming over the past several years. If youre thinking of using your skills to take on a side gig, what should you do with the money youll make?Theres no one right answer for everyone, and the decisions you make should be based on your individual situation. And of course, you may simply need the extra income to support your lifestyle and pay the bills. But if you already have your cash flow in good shape, and you have some freedom with your gig money, consider these suggestions: Contribute more to your IRA. If you couldnt afford to contribute the maximum amount to your IRA, you may find it easier to do so when you have additional money coming in from a side gig. For the 2023 tax year, you can put in up to $6,500 to a traditional or Roth IRA, or $7,500 if youre 50 or older. (Starting in 2024, this extra $1,000 catch-up contribution amount may be indexed for inflation.) The amount you can contribute to a Roth IRA is reduced, and eventually eliminated, at certain income levels. Look for new investment opportunities. If youre already maxing out your IRA, you might be able to find other investment possibilities for your side gig money. For example, if you have young children, perhaps you could use some of the money to invest in a 529 education savings plan. A 529 plan offers potential tax advantages and can be used for college, qualified trade school programs, and possibly some K-12 expenses. Please keep in mind that potential tax advantages will vary from state to state. Build an emergency fund. Life is full of unexpected events and some can be quite expensive. What if you needed a major car repair or required a medical procedure that wasnt totally covered by your health insurance? Would you have the cash available to pay these bills? If not, would you be forced to dip into your IRA or 401(k)? This might not be a good move, as it could incur taxes and penalties, and deprive you of resources you might eventually need for retirement. Thats why you might want to use your gig earnings to help fund an emergency fund containing several months worth of living expenses, with the money kept in a liquid, low-risk account. To avoid being tempted to dip into your emergency fund, you may want to keep it separate from your daily spending accounts.   Pay down debts. Most of us will always carry some debts, but we can usually find ways to include the bigger ones mortgage, car payments and so on into our monthly budgets. Its often the smaller debt payments, frequently associated with high-interest-rate credit cards, that cause us the most trouble, in terms of affecting our cash flow. If you can use some of your side gig money to pay down these types of debts, you could possibly ease some of the financial stress you might be feeling. And instead of directing money to pay for things you purchased in the past, you could use the funds to invest for your future.As weve seen, your side gig money could open several promising windows of opportunity so take a look through all of them. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

            The movement of the financial markets can seem mysterious and yet, if we look back over long periods, we can see definite patterns that consistently repeat themselves. As an investor, how should you respond to these market cycles?            To begin with, its useful to know something about the nature of a market cycle and its connection to the business or economic cycle, which describes the fluctuations of the economy between periods of growth and contraction. Issues such as employment, consumer spending, interest rates and inflation can determine the stage of the business cycle. On the other hand, the market cycle refers to whats happening in the financial markets that is, the performance of all the different types of investments.             The market cycle often anticipates the business cycle. In other words, the stock market may peak, or hit bottom, before the business cycle does the same. Thats partially because the financial markets are always looking ahead. If they foresee an event that could boost the business cycle and help the economy, such as the Federal Reserve lowering interest rates, they may become more bullish on stocks, thus driving the market up. Conversely, if the markets think the business cycle will slow down and the economy will contract, they may project a decline in corporate earnings and become more bearish on stocks, leading to a market drop.         Once youre familiar with the nature of market cycles, you wont be surprised when they occur. But does that mean you should base your investment strategy on these cycles?            Some people do. If they believe the market cycle is moving through a downward phase, they may try to cut their perceived losses by selling stocks even those with strong fundamentals and good prospects and buying lower-risk investments. While these safer investments may offer more price stability and a greater degree of preservation of principal, they also wont provide much in the way of growth potential. And youll need this growth capacity to help reach your long-term goals, including a comfortable retirement.             On the other hand, when investors think the market cycle is moving upward, they may keep investing in stocks that have become overpriced. In extreme cases, unwarranted investor enthusiasm can lead to events such as the dotcom bubble, which led to a sharp market decline from 2000 through 2002.            Rather than trying to time the market, you may well be better off by looking past its cycles and following a long-term, all-weather strategy thats appropriate for your goals, risk tolerance, time horizon and need for liquidity. And its also a good idea to build a diversified portfolio containing U.S. and foreign stocks, mutual funds, corporate bonds, U.S. Treasury securities and other investments. While diversification cant protect against all losses, it can help protect you from market volatility that might primarily affect just one asset class.           Market cycles often draw a lot of attention, and they are relevant to investors in the sense that they can explain whats happening in the markets. Yet, when it comes to investing, its best not to think of cycles but rather of a long journey one that, when traveled carefully, can lead to the destinations you seek.  Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

Submitted By: Edward Jones- click here for more information*Discussing finances with your family can be uncomfortable, but its also critical to ensuring your loved ones are prepared to carry out your wishes. Here are some things you might want to consider sharing.1. Estate documents and beneficiariesDon't assume your family members or beneficiaries know what you'd like them to do when you pass away or where you keep your estate documents. Give them the opportunity to prepare mentally and emotionally for these responsibilities. And if you havent named beneficiaries yet, be sure to do so.2. Contact information for your tax, financial and legal teamsDuring times of emergency or grief, knowing where to turn for financial and legal help could be a great relief to your family. You may even want to consider introducing your family to these professionals now, so they can develop a relationship with them.3. Wishes for future living arrangementsDiscuss with your family and doctor where you'd like to receive medical care if you develop a serious illness. Would you like to stay at home? Or if that isn't possible, is there a facility you prefer?4. Funeral arrangements or burial instructionsIf you've already made funeral arrangements, make sure your family has access to the documents and information, so they can ensure your wishes are carried out.Finally, remember, the more your family knows about your preferences, the more comfortable they'll be that they're making the right decisions for you down the road.

For more information on the author, Edward Jones - Chad Choate, AAMS, CLICK HERE!If you understand how probate works in your state, you can put estate strategies in place to potentially avoid probate. Your financial advisor can work with you, your attorney and your tax professional to determine what may work best for your situation.What happens?Generally, an attorney submits a last will and testament to the probate court, which starts the process to:Notify beneficiaries and creditors. This is done to ensure that everyone who might have an interest in the estate knows about the court proceedings.Formally appoint an executor or personal representative, who is usually named in the will.Review and inventory assets and debts.Continue management of property and pay any outstanding debts.Prepare final tax returns and complete other record keeping.Make final distributions to beneficiaries.It's important to remember that every state and local municipality has different rules and processes for probate. Talk to your attorney to learn more about how probate may look where you live.Are there any assets that don't need to go through probate?Some types of property (sometimes called non-probate assets) pass automatically to specific beneficiaries without a courts involvement. For example, if you name beneficiaries on assets including transfer on death (TOD) accounts, 401(k)s, IRAs, insurance policies and annuities, they won't have to go through probate. In addition, assets that are titled in certain ways (like "joint with rights of survivorship") don't need to go through probate, since they pass directly to the other joint owner.Are there disadvantages of probate?The probate process is intended to help provide some oversight on how your estate is handled after your death. But with that oversight come some potential disadvantages, including:Probate is public The court proceedings are public record, and in many cases, a notice to creditors is posted through a public medium, like the local newspaper.Probate can be costly and time-consuming Depending on where you live, probate costs can range from 2% to 5% of the estate's value. And because it's a legal proceeding, state law determines how long this process may take anywhere from a few months to a year or more.

When youretire, youll experience many changes should one of them involve your livingarrangements?The issueof downsizing is one that many retirees will consider. If you have children,and theyve grown and left the home, you might find yourself with more spacethan you really need. Of course, this doesnt necessarily mean you must pack upand scale down yourself. You might love your home and neighborhood and see noreason to go. But if youre open to a change, you could find that moving to asmaller house, a condo or an apartment may make sense for you.Letsconsider some of the advantages of downsizing: Youcould save money. Moving to a smaller space could lower your utility billsand upkeep costs. You couldsave effort. A smaller home will mean less maintenance and cleaning. Youcould de-clutter. Over the years, most of us accumulate more possessionsthan we really need. Downsizing gives you a chance to de-clutter. And you cando some good along the way, too, because many charitable organizations willwelcome some of your items.   Youcould make money. If youve had your home for many years, its certainlypossible that its worth more perhaps a great deal more than what you paidfor it. So, when you sell it, you could pocket a lot of money possiblywithout being taxed on the gains. Generally, if youve lived in your home forat least two years in the five-year period before you sold it, you can exclude$250,000 of capital gains, if youre single, or $500,000 if youre married andfile taxes jointly. (Youll want to consult with your tax advisor, though,before selling your home, to ensure youre eligible for the exclusion,especially if you do own multiple homes. Issues can arise in connection withdetermining ones primary residence.)Whiledownsizing does offer some potentially big benefits, it can also entail somedrawbacks. First of all, its possible that your home might not be worth asmuch as you had hoped, which means you wont clear as much money from the saleas you anticipated. Also, If you still were paying off a mortgage on yourbigger home, you may have been deducting the interest payments on your taxes a deduction that might be reduced or lost to you if you purchase aless-expensive condo or become a renter. Besides these financial factors, theresthe ordinary hassle of packing and moving. And if youre going to a muchsmaller living space, you may not have much room for family members who want tovisit or occasionally spend the night.So, as youcan see, youll need to weigh a variety of financial, practical and emotionalissues when deciding whether to downsize. And you will also want to communicateyour thoughts to grown children or other family members who may someday havereason to be involved in your living space. In short, its a big decision so giveit the attention it deserves.  This article was written by Edward Jones for use by your local EdwardJones Financial Advisor:Chad Choate III, AAMSBradenton's Riverwalk828 3rd Ave W Bradenton, FL 34205941-462-2445chad.choate@edwardjones.comEdward Jones, Member SIPC

If youre planning to retire in a few years, are you looking forward to it? Or are you somewhat apprehensive? Are you asking yourself: What sort of retirement can I afford?            Its a good question because the answer can make a big difference in your ability to enjoy life as a retiree.             And retirement can indeed be enjoyable, exciting and fun. Consider this from a recent survey by Edward Jones and AgeWave: A majority of respondents said retirement should be looked at as a whole new chapter of life, and not just a time for rest and relaxation. In other words, people are viewing retirement as a chance for new experiences and new opportunities, rather than a time to simply wind down. But if youre going to make the most of your retirement which could last two or even three decades you need to be financially prepared.            This preparation can involve many steps, but here are some of the key ones:              Decide what your retirement lifestyle will look like. How you choose to spend your retirement years can make a big difference in the financial resources youll need. For example, if you plan on traveling the world, you might need more income than if you were to stay close to home and pursue your hobbies. If you can envision your retirement lifestyle and estimate how much money youll need to support it, you can help reduce some of the uncertainties you might face once you do retire.             Review your income sources. During retirement, youll likely need to draw on all your income sources, so its a good idea to know what youll have available, such as your IRA, 401(k) and other investment accounts. Youll also need to decide when to take Social Security if you wait until your full retirement age (probably between 66 and 67), youll get much larger monthly benefits than if you started taking them at 62. And heres another variable: earned income. Even if youve retired from your career, you might, if you desire, use your acquired skills in a consulting or part-time position. The more you can earn, the less you may have to withdraw from your investment accounts and the better position youll be in to delay taking Social Security.             Consider adjusting your investment portfolio. For most of your working years, you may have invested mostly for growth to increase your assets as much as possible. But growth-oriented investments are also, by nature, riskier, so when you retire, you should review your portfolio to determine whether you need to move it toward a more conservative position. Also, more conservative investments may provide more current income in the form of interest payments. However, even in retirement, you may need some investments with growth potential if you want to keep ahead of inflation.             Retirement is certainly a major milestone in your life and adjusting to it can take some time.  But there will be much less to fear and much more to enjoy if youve done what you can to prepare yourself financially.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

  We all hope to enjoy long, healthy lives, retaining the ability to think clearly and make our own decisions. But life doesnt always work out that way which is why you need to prepare for a potential incapacity that could affect your independence and possibly create financial problems for your family.            So, in thinking about incapacity planning, you may want to consider the following arrangements:               Health care power of attorney  When you establish a health care power of attorney, you name someone, such as a spouse or adult child, to make medical decisions on your behalf, should you become incapable of making them on your own due to disability or illness. These decisions include choosing doctors, treatments and care facilities.             Financial power of attorney  With a financial power of attorney, you designate someone to assume a variety of duties for you in case you become incapacitated. These tasks include investing, selling property, paying bills and debts, collecting Social Security benefits and adding or changing insurance policies.            When establishing a health care or financial power of attorney, you may need to decide whether its durable or springing. A durable power of attorney typically takes effect immediately after you sign it, have it notarized and witnessed. So, the person youve chosen to have power of attorney sometimes called an agent can act on your behalf whenever you choose. On the other hand, you could select a power of attorney that springs into effect only when you become incapacitated hence, the springing designation.            One issue affecting a springing power of attorney involves the speed with which it can be enacted. Generally, it wont go into effect until a licensed physician declares in writing that the person granting the power of attorney is indeed incapacitated. This could cause a problem if your chosen agent needs to act quickly on your behalf. Its because of this potential delay that a durable power of attorney is often favored over a springing power of attorney. However, everyones circumstances are different, so if you have a choice between a durable or springing power of attorney, you may want to consult with an estate-planning professional for guidance.            Apart from the health care and financial powers of attorney, you may also want to consider one other incapacity-related legal document a living will. When you establish a living will, you describe the steps you would or wouldnt want taken to keep you alive, along with other medical decisions, including pain management and organ donation. Obviously, the decision to create a living will is highly personal, involving your feelings about self-sufficiency and the circumstances that define the quality of life you wish to have. But the mere fact of having a living will can relieve your loved ones of having to make potentially agonizing decisions.            Planning for an incapacity may not be the most pleasant task but its an important one. Of course, you may never become incapacitated at all, but by making the proper arrangements, you can make things easier for yourself and your family just in case.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. 

If you own a business and you offer a 401(k) or similar retirement plan to your employees, youll want to stay current on the various changes affecting these types of accounts. And in 2024, you may find some interesting new developments to consider.These changes are part of the SECURE 2.0 Act, enacted at the end of 2022. And while some parts of the law went into effect in 2023 such as the new tax credit for employer contributions to start-up retirement plans with 100 or fewer employees  others were only enacted this year.            Here are some of these changes that may interest you: New starter 401(k)/403(b)  If you havent already established a retirement plan, you can now offer a starter 401(k) or safe harbor 403(b) plan to employees who meet age and service requirements. These plans have lower contribution limits ($6,000 per year, or $7,000 for those 50 or older) than a typical 401(k) or 403(b) and employers cant make matching or nonelective contributions. These plans are low-cost and easy to administer but the credit for employer contributions doesnt apply, as these contributions arent allowed, and since start-up costs are low, the tax credit for these costs will be correspondingly lower than theyd be for a full-scale 401(k) plan. Matches for student loan payments  Its not easy for young employees to save for retirement and pay back student loans. To help address this problem, Congress included a provision in Secure 2.0 that allows employers the option to provide matching contributions to employees retirement plans (401(k), 403(b), 457(b) and SIMPLE IRAs) when these employees make qualified student loan payments. Of course, if you offer this match for student loan payments, your costs will likely increase, although these matching contributions are tax deductible. In any case, you may want to balance any additional expense with the potential benefit of attracting and retaining employees, particularly those who have recently graduated from college. 401(k) eligibility for part-time employees  Part-time employees who are at least 21 years old and have at least 500 hours of service in three consecutive years must now be eligible to contribute to an existing 401(k) plan. The inclusion of part-time employees could lead to higher business expenses for you, depending on the amount of contributions you may make to employees plans. Again, though, youd be offering a benefit that could be attractive to quality part-time employees.             Emergency savings account  Many people, especially those who dont earn high incomes, have trouble building up emergency funds they can tap for unexpected costs, such as a major home or car repair or large medical expenses. Now, if you offer a 401(k), 403(b) or 457(b) plan, you can include a pension-linked emergency savings account (PLESA) that allows non-highly compensated employees to save up to $2,500, a figure that will be indexed for inflation in the future. PLESA allows for tax-free monthly withdrawals without incurring a 10% tax penalty. PLESA contributions are made on an after-tax (Roth) basis and must be matched at the same rate as other employee contributions.             You may want to consult with your tax and financial professionals to determine how these changes may affect what you want to do with your retirement plan. The more you know, the better your decisions likely will be. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445Chad.choate@edwardjones.com

When it comes to the right retirement age, there is no right answer. The traditional retirement age of 65 may not be feasible or desirable for you. But what really matters is if you are financially and emotionally ready to stop working. The two work hand in hand: when you are financially prepared, you can focus more on your purpose and vision in retirement - the fun stuff, many would say.We think it's important to invest some time now to prepare for this change, so we recommend involving your spouse and other family members in the conversation. Openly discussing your vision can help ensure a successful adjustment to your new life. And even though there's a lot to think about, your Edward Jones financial advisor can help you better prepare for the financial impact of not working full time whenever that may be.Explore these five important questionsThinking about your answers to the following questions can help bring your retirement vision to life:What does the word "retirement" mean to you?The idea of a traditional retirement doesn't fit many of our ideal notions anymore of how we may want to spend our future. You may want to travel, volunteer or spend more time with your family. You could also be ready to spend more time enjoying a hobby or even start a new career. Is working part time or volunteering an option or desire for you? Having a plan of what will fulfill you during the next phase of life can help you start to envision what your days may look like.How will leaving the workforce make you feel?You've probably worked most of your adult life. Making the switch can be a big adjustment. It's normal to be excited yet have some doubts. You don't have somewhere to go every day. Are you OK with that? Do you have other things you want to do? Money is only part of the picture. Make sure you've thought through how you actually feel about retiring.Whats the first thing you want to do when you retire?Write down the first three, five or 10 things you want to do and dont expect to achieve them all in the first week. Remember, youll have plenty of years to fill with the things you want to do.If you have a spouse or partner, is he or she on board?Does your spouse or partner want to retire when you do? If so, what's your health insurance situation? Is working part time or volunteering an option or desire for you? If you want to travel, does your partner? Talk to your partner about his or her ideas about retirement. If you have different visions, discuss them and find some common ground. By talking now, you can work together to make the best of retirement for both of you.If you have children, how do they feel?Talk to your children about their and your expectations. For example, do they expect you to offer childcare or other favors after you are no longer working full time? If necessary, decide on ground rules and boundaries ahead of time. This can help prevent uncomfortable conversations down the road.It's OK to be a little concerned about making the right choices about retirement these are big decisions. Working with your financial advisor can help address some of these worries and make you feel more confident about your path forward.

Paul Simmons, CFA, CFP Senior Analyst, Client Needs ResearchHealth care is one of the biggest expenses in retirement. Medicare may cover a large part of traditional medical expenses, but it generally doesnt cover expenses related to long-term care, which can be substantial. Thats why it is important to plan for long-term care costs before youll need them.Planning tipWhile its never too late, it's ideal to begin planning for long-term care expenses between ages 50 and 60.When to start planning for a long-term care needIts earlier than you may think! While long-term care services are typically needed later in life, its beneficial to start planning between the ages of 50 and 60. This is especially important if you decide insurance is an appropriate solution, because:Your health may be better, increasing the likelihood that coverage can be obtained and that premiums are lower.Being younger gives you more time to spread out the premiums, which also makes them lower.You may still be working and better able to afford the premiums.Planning early also gives you more time to discuss your care and aging preferences with your loved ones. The more proactive you are, the more options you may have and the more confident you can be that your wishes will be met.What to consider for your care preferencesLong-term care services are broad, ranging from help with day-to-day tasks such as cleaning to more substantial supervision required for ones health and safety. When thinking about how youd prefer to receive care, consider what you may want and need with respect to the:Place of care. The majority of care starts in ones own home whether out of preference or necessity (aaltci.org). It may also take place in facilities like rehabilitation centers, adult day cares, assisted living facilities and nursing homes. Costs vary substantially based on where care is received, as shown in the chart below.Providers of care. The majority of care is provided by informal caregivers family and friends (SCAN Foundation). While this may be sufficient for a period of time, informal caregiving can carry significant trade-offs for the caregiver as well as the person who needs care. Paid caregivers range from personal care and home health aides to nursing and skilled care providers.The annual costs of long-term care options vary. Care in an assisted living facility costs $54,000; home health aide services (assuming 44 hours per week) costs $62,000; a semi-private room in a nursing home runs $95,000; a private room in a nursing home costs $108,000.Next stepsOnce you have a sense of how youd want to receive long-term care and how much it may cost, youll want to discuss the options for covering those costs. That could include self-insurance, purchasing insurance, or a combination of those two solutions. Working with a financial advisor can help you determine which long-term care insurance plan is most appropriate for you.Source: Genworth 2021 Cost of Care Survey. Median values, rounded to the nearest thousand.

If you want to make a big purchase, such as a new car or a piece of property, or you were faced with a large, unexpected expense, such as a major home or auto repair, would you have the funds readily available? If not, you might look at what may be your biggest pool of money your 401(k) or IRA. But should you tap into these accounts well before you retire?Maybe not and heres why: Less money in retirement  The more money you invest in your retirement accounts, and the longer you keep it invested, the more youll probably have when you need it most when youre retired. Consequently, taking out sizable amounts from these accounts before you retire could be costly, as it would disrupt the benefits of compounding that can be achieved by holding investments for the long term.   Possible bump into higher tax bracket  The money you take out from your traditional IRA and 401(k) is taxable in the year of withdrawal. So, if you withdraw a significant amount of money at once from your traditional IRA or 401(k), you could be pushed into a higher tax bracket, at least for one year. Tax penalties  If you take money out of a 401(k) or traditional IRA before you turn 59, you could face a 10% tax penalty, although some exceptions exist. Penalty-free withdrawals can be made for several reasons, including for education and medical expenses, first-time purchase of a home (up to $10,000), after the birth or adoption of a child (up to $5,000) and more (see irs.gov/taxtopics/tc557). With a Roth IRA, which is funded with after-tax dollars, you can withdraw contributions but not earnings at any time, for any purpose, without incurring penalties. Given these issues, how can you avoid dipping into your retirement accounts when youre faced with a financial need?One possibility is to take out a loan from your 401(k). Unlike a 401(k) withdrawal, a loan is neither taxable nor subject to tax penalties. Also, the interest you pay on a 401(k) loan goes back into your account. Still, a 401(k) loan has its drawbacks. If you leave your job, youll likely have to repay the loan in a short period of time and if you dont have all the money to repay it, the loan will be considered in default, so youll owe taxes and the 10% penalty if youre younger than59. But even if you dont leave your job and you do repay the loan, youll still have taken away money that could have potentially kept growing within your tax-deferred account. As mentioned above, as your money compounds, youll want to minimize disruptions.            Building an emergency fund is another way to gain access to cash. Such a fund should contain at least six months worth of living expenses, with the money kept in a liquid, low-risk account. It can take time to build a fund of this size, so its never too soon to start putting away money for it. To avoid the temptation of dipping into your emergency fund, youd ideally keep this fund separate from your daily spending accounts.            Explore all your options before tapping into your IRA or 401(k) early. Keeping these accounts intact as long as possible is one of the best moves you can make to help build your future retirement income.Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.choate@edwardjones.com      This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.      Edward Jones, Member SIPC

With the presidential election just a few weeks away, the public is naturally interested in not just the outcome but what the results will mean for issues of national importance. As a citizen, you likely share these concerns but how about as an investor? After the votes are counted or even before should you make some moves in anticipation of possible changes in policy?  Lets look at the big picture first, through the lens of history. The financial markets have performed well and at times, not so well under Democratic and Republican presidents alike. And the same is true about which party controlled Congress.While it might be an overstatement to say that decisions made in Washington have no effect on the markets, its not always so easy to draw a direct line between what happens there and how the markets perform. For one thing, political candidates often make promises that are not fulfilled, or, if they are, have different results than intended. Also, other institutions can have a significant impact on the markets. For example, the Federal Reserve, which controls short-term interest rates, can certainly affect many market sectors. And there will always be external events, such as foreign conflicts and even natural disasters, that can make short-term impacts on the investment world.So, rather than making changes to your portfolio in anticipation of what might happen if certain candidates get elected, or even in response to actual policy changes, look to other factors to drive your investment decisions. These factors should include the following: Your goals  You probably have short- and long-term goals youd like to achieve. For your short-term goals, such as a wedding, a down payment on a house or a long vacation, you may want to invest in instruments that provide stability of principal. For your long-term goals, most important of which may be a comfortable retirement, you'll need to own a reasonable number of growth-oriented investments.             Your risk tolerance  When you build and maintain your investment portfolio, you'll need to accommodate your individual risk tolerance. All investments carry some type of risk, but you need to be comfortable with the overall risk level of your investments.             Your time horizon  Where you are in life is an important consideration when investing. When you are young and just starting out in your career, you may be able to focus more on growth, as you have time to overcome the inevitable short-term market downturns. But as you near retirement, you may want to consolidate any gains you may have achieved, and lower your risk level, by moving your portfolio toward a somewhat more conservative approach. Even in retirement, though, you will need some growth potential to stay ahead of inflation.             Your needs for liquidity  As you invest, youll need to maintain an adequate amount of cash and cash equivalents in your holdings. Without this liquidity, you might be forced to sell long-term investments in case you have unexpected expenses.             In any case, when it comes to investing, you may want to pay less attention to what names are on the ballot and instead vote for the longer-term strategies that reflect your needs and goals. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com

The movement of the financial markets can seem mysterious and yet, if we look back over long periods, we can see definite patterns that consistently repeat themselves. As an investor, how should you respond to these market cycles?            To begin with, its useful to know something about the nature of a market cycle and its connection to the business or economic cycle, which describes the fluctuations of the economy between periods of growth and contraction. Issues such as employment, consumer spending, interest rates and inflation can determine the stage of the business cycle. On the other hand, the market cycle refers to whats happening in the financial markets  that is, the performance of all the different types of investments.             The market cycle often anticipates the business cycle. In other words, the stock market may peak, or hit bottom, before the business cycle does the same. Thats partially because the financial markets are always looking ahead. If they foresee an event that could boost the business cycle and help the economy, such as the Federal Reserve lowering interest rates, they may become more bullish on stocks, thus driving the market up. Conversely, if the markets think the business cycle will slow down and the economy will contract, they may project a decline in corporate earnings and become more bearish on stocks, leading to a market drop.          Once youre familiar with the nature of market cycles, you wont be surprised when they occur. But does that mean you should base your investment strategy on these cycles?          Some people do. If they believe the market cycle is moving through a downward phase, they may try to cut their perceived losses by selling stocks  even those with strong fundamentals and good prospects  and buying lower-risk investments. While these safer investments may offer more price stability and a greater degree of preservation of principal, they also wont provide much in the way of growth potential. And youll need this growth capacity to help reach your long-term goals, including a comfortable retirement.             On the other hand, when investors think the market cycle is moving upward, they may keep investing in stocks that have become overpriced. In extreme cases, unwarranted investor enthusiasm can lead to events such as the dotcom bubble, which led to a sharp market decline from 2000 through 2002.            Rather than trying to time the market, you may well be better off by looking past its cycles and following a long-term, all-weather strategy thats appropriate for your goals, risk tolerance, time horizon and need for liquidity. And its also a good idea to build a diversified portfolio containing U.S. and foreign stocks, mutual funds, corporate bonds, U.S. Treasury securities and other investments. While diversification cant protect against all losses, it can help protect you from market volatility that might primarily affect just one asset class.           Market cycles often draw a lot of attention, and they are relevant to investors in the sense that they can explain whats happening in the markets. Yet, when it comes to investing, its best not to think of cycles but rather of a long journey one that, when traveled carefully, can lead to the destinations you seek.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC

If you have grandchildren, you probably enjoy spending time with them and watching them grow. And to help them achieve a bright future, you might like to make some financial gifts but which ones?   You have several options. Lets look at three of them: 529 plans When you invest in a 529 education savings plan, any earnings growth is distributed federally tax free, as long as withdrawals are used for qualified education expenses. (Withdrawals used for expenses other than qualified education expenses may be subject to federal and state taxes, plus a 10% penalty.) And in-state residents who invest in their home states 529 plan may also receive state tax incentives. A 529 plan can be used for college, approved trade school programs, qualified student loan repayments and even some K-12 costs. And if the grandchild youve named as a beneficiary of a 529 plan decides to forego further education, you can generally switch beneficiaries to another immediate family member. You can contribute up to $17,000 in 2023, per grandchild, to a 529 plan without incurring gift taxes. Furthermore, as of the 202425 school year, grandparent-owned 529 plans wont affect financial aid eligibility. However, tax issues for 529 plans can be complex, so consult with your tax advisor about your situation. Roth IRA Any earnings growth in a Roth IRA is distributed tax free, provided the owner is at least 59 and has had the account at least five years. If your grandchildren earn money from babysitting or a part-time job, they can open a Roth IRA with the help of a parent or other adult. You could match your grandchildrens contributions, possibly on a dollar-for-dollar basis, to provide them with an incentive for saving. In fact, you could fully fund the Roth IRA, up to the annual contribution limit, which is $6,500 or the amount of your grandchilds taxable compensation, whichever is less. (The annual limit is $7,500 for those 50 or older.) And your grandchildren can withdraw the contributions not the earnings at any time to pay for college or anything else. Custodial account You can open a custodial account, also known as an UGMA or UTMA account, for a grandchild, and fund it with most types of investments: stocks, mutual funds, bonds and so on. For that reason, it can be a good way to teach grandchildren about the nature of investing risks, returns and the value of holding investments for the long term. Plus, theres an initial tax benefit to custodial accounts: The first $1,250 of your grandchilds investment income (dividends, interest, capital gains) is tax free, and the next $1,250 is taxed at the childs rate. Anything above that amount is taxed at the parents marginal tax rate. However, once your grandchildren reach the age of termination usually 18 or 21, depending on where they live they take control of the account and can do whatever they choose with the money. So, while a custodial account could be considered as a funding source for college, it might alternatively serve as a gift that could eventually enable your grandchild to fulfill another desire or goal take an overseas trip, pay for a car or maybe even start on a path to entrepreneurship.  Making financial gifts to your grandchildren can be rewarding for them and for you. So, consider the possibilities carefully and put your generosity to work.Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.choate@edwardjones.com                                                                                                    This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.  

During times of crisis, such as economic downturns or global pandemics, it's understandable to feel anxious about your investments. However, knee-jerk reactions can often do more harm than good. History has shown that staying the course with a well-thought-out investment strategy tends to yield better results over the long term. For instance, during the 2008 financial crisis, investors who panicked and sold their stocks missed out on the subsequent market recovery, whereas those who stayed invested saw their portfolios regain and even exceed their pre-crisis levels over time.It's crucial to remember that investing is a long-term endeavor, and short-term market fluctuations are a normal part of the process. By maintaining a disciplined approach and focusing on your long-term financial goals, you can avoid making impulsive decisions that could jeopardize your financial future. Instead of reacting to crises, consider using them as opportunities to review and possibly rebalance your portfolio to ensure it remains aligned with your risk tolerance and objectives.

If youre a parent, you want to do everything you can to help your children succeed in life. Therefore, you might think that one of the best things you can do is to save for your childrens college education. And this is certainly admirable, but could it conflict with your ability to prepare for another key goal your own retirement?Of course, this would not be a problem if you had unlimited means, but most of us dont fall into that category. So, given the financial resources and income you do have, how should you approach the college-versus-retirement issue?Fortunately, its not necessarily an either-or scenario. However, it may make sense to prioritize saving for retirement over college, for two reasons.First, your children have a lot more time to pay for college than you have to save for retirement. In addition to any grants or scholarships your children may receive, they might need to take out loans. While its a good idea to keep this debt load as manageable as possible, its also true that most student loans can be repaid over a long period of time.And heres the second point: One of the best gifts you can give your children is to be self-sufficient in your retirement. You could easily spend two, or even three, decades as a retiree, so you will need to build considerable financial resources to pay for all those years. Your adult children will have their own financial needs to address, so youll be doing them a great favor by relieving them of any financial responsibilities on your behalf. Taking these factors into account, you may want to direct most of your saving and investing efforts toward achieving a comfortable retirement. Consequently, think about putting away as much as you can afford into your IRA and 401(k) or other employer-sponsored retirement plan. Even with this focus on retirement, though, you may find opportunities to save and invest for your childrens education. For example, if you receive bonuses or income tax refunds, or your salary goes up, or youre able to free up money from your budget by reducing your debts, you could use these funds to invest in an education savings vehicle, such as a 529 plan. When you invest in a 529 plan, your earnings and withdrawals are federally tax free, provided the money is used for qualified education expenses such as tuition, room and board, books, and computers. Depending on where you live, you may also get some state tax benefits from your 529 plan. And a 529 plan isnt just for college it can be used for K-12 private school tuition costs, plus expenses from qualified apprenticeship programs, such as those found at trade schools eligible for Title IV federal student aid.It might not be easy to save and invest consistently for your retirement and your childrens education. But both goals are worthy after all, retirement can last a long time and college is expensive. So, try to develop a financial strategy that can allow you to make progress in both areas your efforts may well be rewarded.               Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. 

 Its probably not on your calendar, but September is Life Insurance Awareness Month. And its indeed a pretty good idea to be aware of what life insurance can do for you.            Life insurance can help you in two main ways. First, life insurance policies offer a death benefit that can assist your family if youre no longer around. And second, some types of life insurance offer the chance to build cash value, which can work for you during your lifetime.            Lets look at the death benefit first. If something were to happen to you, your life insurance proceeds could help your family meet at least three major needs:             Paying a mortgage  The biggest expense many families face is their monthly mortgage. If you werent around, could your family continue paying the mortgage? Or would they have to move? With a sufficient life insurance death benefit, they could remain in their home, meeting the monthly mortgage payments, or perhaps pay off the loan entirely (although this might not be in their best financial interest).              Paying for education  If you have young children, you may already be saving for their college education because you know college is expensive. Without your income, would college, or some other form of post-secondary education or training, still be realistic? Again, the proceeds from an insurance policy could make the difference.             Paying off debts  You might have a car loan, credit card debt or other financial obligations. If your surviving spouse is a joint account holder for these debts, they could still be liable for paying them off. But insurance proceeds could be used to retire the debts immediately, or over time.              All life insurance policies offer a death benefit. But permanent insurance, unlike term insurance, also offers the chance to build cash value which can be a valuable supplement to your IRA and 401(k) or other retirement accounts.             A cash value policy such as whole life also can provide flexibility for changing financial needs or emergencies in retirement. And heres another key advantage: Because this type of policy provides fixed, guaranteed returns, it is not dependent on the performance of the financial markets and is thus insulated from the market downturns that can happen while youre retired. So, taking money from the cash value of your whole life policy may help you avoid selling investments that have temporarily declined in value.            Keep in mind, though, that the premiums for a cash value policy will generally be substantially higher than those for term insurance. Thats why some people choose to buy term and invest the difference rather than purchase a permanent life policy with cash value. Whether this strategy is right for you depends on a few different factors, perhaps the most important of which is your ability and willingness to consistently invest the money you would have otherwise placed in a cash value policy.             In any case, should you choose cash value insurance, you generally have three ways to get at the money: withdrawals, loans or surrender of the policy. Youll want to weigh all the factors involved including taxes and the effect on the policys death benefit when deciding on how to access the cash value.             Life Insurance Awareness Month ends on Sept. 30. But your need for life insurance, and the potential benefits it provides, can last a lifetime.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC

Save for a rainy day is an old piece of advice and a good one. But is it possible to save too much?To begin with, what defines a rainy day in terms of financial needs? It could be any number of things: a temporary loss of employment, a major home or car repair, a large medical bill, and so on. If you did not have the money readily available to pay for these types of expenses, you might be forced to dip into your IRA, 401(k) or other retirement accounts, incurring taxes and possible penalties, as well as lowering the amount of money youd have available for retirement. And thats why its a good idea to build an emergency fund containing up to six months worth of total expenses, with the money kept in a liquid, low-risk account thats separate from the accounts you use for your daily spending needs.An emergency fund is valuable, but many people may be overfunding it. And while this isnt the biggest financial mistake one can make, it could result in some missed opportunities.For one thing, when you keep money in a low-risk account, you can generally count on your principal being protected, which means the money will be there for you when you need it but the flip side is that this money likely wont grow very much, if at all. And if youre going to achieve your long-term goals, such as a comfortable retirement, you need your investment portfolio to provide you with significant growth potential within the context of your individual risk tolerance. So, any excess dollars kept in your rainy-day fund might be used to help fuel some growth-oriented investments.You could also use these dollars to help diversify your investment portfolio. If you only owned one type of investment, your portfolio could take a big hit if a market downturn affected just that asset class. But by owning a mix of stocks, bonds, government securities and other investments, you can help reduce the impact of market volatility. (Keep in mind, though, that diversification, by itself, cant protect against all losses.)Still, before deciding on what to do with extra money you might have in your emergency fund, how will you know if you indeed have too much? Up to six months worth of total expenses may be adequate for most people but everyones life is different. For example, if you have reason to believe your employment or that of your spouse may be in jeopardy in the near future, or if you anticipate the need for some renovations to your home, but not for a year or so, you might want more than six months of expenses tucked away in your emergency fund. Also, once youre retired, you may well want to keep a years worth of expenses in the fund. If you need cash, you dont want to be forced to sell investments when their price may be down, especially since you have less time for them to recover. Ultimately, when thinking about how much to keep in your emergency fund, review your situation carefully and weigh as many variables as you can. And if you do decide your rainy-day fund is abundant, use any overflow in a way that can help you keep moving toward your financial goals. Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.  Edward Jones, Member SIPC

Who knows where the time goes? Weve reached the end of another year, so its appropriate to reflect on the nature of time and how it affects us. And time certainly is a key element in the pursuit of your financial goals.As an investor, time can be your greatest ally. If you hold some investments for the long term, you could achieve an impressive cumulative growth in value. Furthermore, if you keep adding shares to these investments, possibly through a dividend reinvestment plan, you could attain growth on growth through the power of compounding. Of course, when you own equity investments, you will experience market fluctuations, but in general, the longer you hold these investments, the more you can reduce the effects of market volatility.             But you also need to consider aspects of time in these contexts:  Checking progress on achieving goals When you establish a goal, such as saving for a childs education or your own retirement, you know the end date of when youll need the money, but its also important to mark your progress along the way. So, each year, see how far along you are in meeting your goal. If youre falling behind, you may need to adjust your investment mix. Choosing an appropriate strategy The time needed to achieve a goal should drive your investment strategy for that goal. For example, when you are saving for a retirement that wont happen for three or four decades, you will need to invest for growth by placing a reasonable percentage of equities and equity-based investments in your portfolio, based on your comfort with the various types of risk, including interest rate risk, credit risk and market risk. You will experience some bumps along the way keep in mind that the value of investments will fluctuate and the loss of some or all principal is possible  but you likely have time to overcome the down periods. On the other hand, when you are saving for a short-term goal, such as a vacation or a new car or a wedding, youll want a set amount of money available precisely when you need it. In this case, you may need to sacrifice some growth potential for investments whose principal value wont fluctuate, such as certificates of deposit (CDs) and bonds.Keep in mind, though, that when youre investing for long- and short-term goals, it doesnt have to be just one strategy or the other. You can save for retirement with primarily growth vehicles but still have room in your portfolio for shorter-term instruments. And even when youre specifically investing for some short-term goal, you cant forget about your need to save and invest for retirement.And heres one final point about the relationship between time and investing: Your risk tolerance can, and probably will, change over the years. As you near retirement, you may feel the need to adjust your portfolio toward a more conservative approach. Thats because you may want to consolidate any gains you might have achieved while also recognizing that you simply have less time to bounce back from down markets. Still, even in retirement, youll need some growth potential in your portfolio to help you stay ahead of inflation.When you invest, one of your biggest considerations is time so use it wisely.   Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com     This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.      Edward Jones, Member SIPC

Managing your finances and investing for your future are important tasks and they can be challenging. But you dont have to go it alone. Many people benefit from working with a financial advisor, someone who knows their needs and goals and makes appropriate recommendations. If youre considering getting some help, youll want to ensure a particular financial advisor is right for you, so its a good idea to ask questions.Here are some to consider: Have you worked with people like me? All of us are unique individuals. Yet, you do share certain characteristics with others age, income, family situation and so on. And you might feel comfortable knowing that a financial advisor has worked with people like you and can readily understand and appreciate your needs and specific goals: college for your children, a certain type of retirement lifestyle, the kind of legacy youd like to leave and others. The more information you can provide about yourself upfront, the better your chances of finding a good match. Do you have a particular investment philosophy? Some financial advisors follow a particular investment style, while others might focus on specific investments or categories. Theres nothing inherently wrong with these types of approaches, but you might be better served by working with someone who takes a broader view one that emphasizes helping clients meet their goals over any particular philosophy or strategy. How will you communicate with me? Open and frequent communication are key to a successful relationship with a financial advisor. So, youll want to know what you can expect. Will you have annual or semi-annual reviews of your accounts? In between these reviews, can you contact your advisor at any time with questions you may have? How will an advisor notify you to recommend investment moves? Is the financial advisor the individual youll communicate with, or are other people involved? How do you define success for your clients? Some investors track their portfolios performance against that of a specific market index, such as the S&P 500. But these types of benchmarks can be misleading. For one thing, investors should strive for a diversified portfolio of stocks, bonds and other investments, whereas the S&P 500 only tracks the largest U.S. stocks. So, when you talk to potential financial advisors about how they define success for their clients, you may want to look for responses that go beyond numbers and encompass statements such as these: Im successful if my clients trust me to do the right things for them. And, most important, Im successful when I know Ive helped my clients reach all their goals. How are you compensated? Financial advisors are compensated in different ways some work on commissions, some charge fees, and some combine fees and commissions. There isnt necessarily any best method, from a clients point of view, but you should clearly understand how a potential advisor is compensated before you begin a professional relationship. These arent the only questions you might ask a potential financial advisor, but they should give you a good start. When youre trusting someone to help you with your important financial goals, you want to be completely comfortable with that individual so ask whatever is on your mind. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com                                                                                                                            This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

Do you worry about running out of money during your retirement years? If so, how can you help prevent this from happening?            In the first place, if you have this type of fear, youre far from alone. Consider this: 58% of retirement savers from all age groups, including current retirees, say that outliving their assets is their greatest retirement fear, according to a study by Cerulli Associates, a financial services research organization.             This type of fear can certainly affect your quality of life when you retire. Still, theres no need to panic because you can take steps to help prevent the running-out-of-money scenario.             Here are a few to consider:            Know how much youll need during retirement. You need to get a clear picture, or at least as good an estimate as possible, of how much money youll need to support your retirement lifestyle. Once you do retire, some costs, such as transportation or other work-related expenses, might go down, while others medical expenses, in particular will likely go up. The fear of running out of money, like many fears, is caused largely by what you dont know, so having a good sense of how much youll need in retirement can help reduce your anxieties.              Build financial resources before retirement. Youre probably at your peak earning capacity in the years close to your retirement, so consider contributing as much as you can afford to your IRA and 401(k) or other employer-sponsored retirement plan.             Maximize your Social Security payments. You can start collecting Social Security as early as 62, but your monthly benefits will be larger if you can afford to wait until your full retirement age, between 66 and 67. (Payments will max out at age 70.)            Re-enter the workforce. Going back to work in some capacity is one way to possibly help build retirement resources and delay taking Social Security. If you have a particular area of expertise, and you enjoyed the work you did, you might be able to go back to it on a part-time basis or do some consulting. You could boost your cash flow, and potentially extend your contributions to an IRA and to an employers retirement plan.             Cut costs during retirement. Possibly the biggest cost-cutting measure is downsizing are you willing and able to move to a less expensive area or scale down your current living space? Of course, this is an emotional decision, as well as a financial one, and downsizing isnt for everyone, but it might be something to at least consider. As for the lesser ways of reducing expenses, take advantage of senior discounts, which are offered in many areas, including entertainment, public transportation, restaurants and retail establishments. And look for other opportunities, such as cutting out streaming services you dont use.            Look for more income from your investments. As you get closer to retirement, and even when you do retire, you might want to adjust your investment portfolio to provide you with more income-producing opportunities. However, even as a retiree, youll want some growth potential in your investments to help keep you ahead of inflation.            Ultimately, the more you can bolster your financial security before and during retirement, the less fear you may have of outliving your money.  Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

Should I take Social Security early? Take it later? Continue to work? Your decisions around Social Security can make a big impact on your retirement especially considering that Social Security administration estimates say it makes up about 40% of the average 65-year-old's retirement income today.When and how you take Social Security are personal and complex decisions and they need to be made with your entire financial picture in mind. Your Edward Jones financial advisor can walk you through various scenarios based on your specific situation, including the age you plan to begin claiming benefits, marital status and more, to help you decide what makes the most sense for you.As a starting point, you'll need to begin thinking about a few things.Is it better to take it early or wait?If you begin taking your benefit at what the Social Security Administration considers full retirement age (FRA) generally 66 or 67 you'll receive 100% of your benefit. However, many people begin taking benefits earlier or later. The difference of just a few years can have a significant impact on how much you receive. And if you're married, your decision does not just affect you, it could also affect how much your spouse could receive when you pass away. Ultimately, your decisions should be made based on a variety of factors. Learn more with our Social Security resources.What additional benefits are available for spouses?If you're married, you can generally receive the higher of your full retirement benefit or 50% of your spouse's full retirement benefit. The amount will be reduced if you take your benefits before your FRA.What if I plan on working after I retire?Many people choose to work longer or work part time. But if you're receiving Social Security benefits, have not yet reached full retirement age, and earn more than a certain amount, some of your benefits may be withheld. In 2021, those earnings thresholds are $18,960 if you do not reach FRA in 2021, and $50,520 if you reach FRA in 2021. The agency's Retirement Earning Test Calculator can help you determine the impact. Unearned income (such as investments) won't reduce your benefit, but you should consider all income sources in your planning.What if I'm divorced or widowed?Spousal benefits may also be available for divorced spouses, depending on how long you were married.If you're a surviving spouse, you can receive the higher of your own benefit or up to 100% of the deceased spouse's benefit, whichever is higher. This means that when you take Social Security could have an impact not only on your income when you are alive but also for your surviving spouse when you pass away. Talk to your local Edward Jones financial advisor or visit the Social Security Administration's website.What other types of retirement benefits might I be entitled to?Depending on your situation, you may be entitled to disabled or dependent benefits. We recommend talking to the Social Security Administration for more information.The decisions you make about Social Security can impact your retirement significantly.Written & Submitted By: Edward Jones- click here for more information*Click here for original blog link*

If youve retired, you may have thought you closed the book on one chapter of your life. But what happens if you need to reverse your retirement?            Due to higher inflation and rising interest rates, many retirees are taking out more money from their retirement accounts than they had originally anticipated. As a result, some are headed back to the workforce. If youre thinking of joining them, youll need to consider some factors that may affect your finances. First, if youve been taking Social Security, be aware that you could lose some of your benefits if you earn over a certain level, at least until you reach your full retirement age, which is likely between 66 and 67. Specifically, if you are under your full retirement age for the entire year, Social Security will deduct $1 from your benefit payments for every $2 you earn above the annual limit, which, in 2024, is $22,320. In the year you reach your full retirement age, Social Security will deduct $1 in benefits for every $3 you earn above a different limit, which, in 2024, is $59,520. Social Security will only count your earnings up to the month before you reach your full retirement age, at which point your earnings will no longer reduce your benefits,  regardless of how much you earn. Also, Social Security will recalculate your benefit amounts to credit you for the months your payments were reduced due to your excess earnings. Social Security also allows you to pay back early benefits received if you withdraw your application within 12 months of starting benefits. This move could help you receive substantially higher benefits at full retirement age.Your Social Security isnt the only benefit that could be affected by your earnings. Your Medicare Part B and Part D premiums are based on your income, so they could rise if you start earning more money. Also, your extra income could push you into a higher tax bracket.Nonetheless, you can certainly gain some benefits by returning to the working world. Obviously, youll be making money that can help you boost your daily cash flow and possibly reduce some debts. But depending on where you work, you might also be able to contribute to a 401(k) or other employer-sponsored retirement plan. And regardless of where you work, youll be eligible to contribute to an IRA. By putting more money into these accounts, you may well be able to strengthen your financial position during your retirement years. You might also be able to receive some employee benefits, such as group health insurance which could be particularly valuable if you havent yet started receiving Medicare. In addition to the potential financial advantages of going back to work, you might get some social benefits, too. Many people enjoy the interactions with fellow workers and miss these exchanges when they retire, so a return to the workforce, even if its on a part-time basis, may give you an emotional boost.In the final analysis, youll want to weigh the potential costs of going back to work against the possible benefits. Theres no one right answer for everyone, but by looking at all the variables, you should be able to reach a decision that works for you.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com

 If youve been thinking about life insurance, especially if you have family, loved ones, or anyone who depends on you financially, you might be curious about the different kinds of policies available. Which type is right for you?Essentially, you can look at two main categories of life insurance: term and permanent.Term insurance is a pay-as-you-go option that covers a specific amount of time, usually 20 years or fewer. Term insurance benefits are paid to your beneficiaries free of federal income taxes if you pass away during the coverage period, but theres no opportunity to build cash value.Permanent insurance, such as whole life or universal life, offers coverage for as long as you pay the premiums, and in addition to providing a tax-free death benefit, also offers a chance to build equity, or cash value, on a tax-deferred basis.When determining which type of insurance is appropriate for your needs, youll want to consider these factors: Cost  Term insurance is generally affordable for most people, which is why it may be particularly suitable for parents and young adults who may be at the beginning of their careers. Permanent insurance is typically more expensive, largely because it is meant to last for one's lifetime and some of the premiums go toward building cash value in the policy and paying for other features. Generally, the younger and healthier you are when you purchase permanent insurance, the lower your rates will be. Length of time insurance is needed  If you think you will only need life insurance for a certain period perhaps until your children are grown you might lean toward term insurance. If you feel the need for life insurance for other goals throughout your lifetime, for whatever reason you might have a special needs child, or perhaps you want to use your policy to help pay for retirement, or you wish to include the policy as part of your legacy and estate plans you may want to consider some type of permanent insurance. Investment preferences  You may have heard the phrase buy term and invest the difference. Essentially, this just means that an investor could purchase low-cost term insurance, and then invest the money that was saved by not getting permanent insurance. This can be a valuable strategy in some situations, but people often dont actually invest the difference. A permanent insurance policy, through the payment of premiums, may result in a steady buildup of cash value or continued contributions to the policys investment components. For many people, this discipline is helpful. Future insurability  If you have health issues, it could become difficult to get permanent insurance after youve reached the end of a term insurance policy. (Some term insurance policies do offer the opportunity to convert to permanent coverage, usually without the need for a medical exam.) You could avoid this potential problem by purchasing permanent insurance when you are still young and healthy.Ultimately, you will need to weigh the various factors involved in the permanent-versus-term decision. You also might benefit from consulting a financial professional, who can evaluate which type of insurance is most appropriate for your situation. But whether its term or permanent, make sure you have the coverage you need to protect yourself and your loved ones. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

For more information on the author, Edward Jones, CLICK HERE!Life doesn't happen in neat little boxes. Everything overlaps. While you're dealing with multiple priorities, we have multiple ways to support you.That's why your Edward Jones financial advisor asks questions to understand what's important to you. Once we understand your priorities, we can help you document specific goals. Then, together, we can develop personalized financial strategies based on your risk tolerance and current financial picture to help you achieve them.Below are some things to consider if you are caring for a child or helping an aging parent.Child to support?Supporting a child doesn't have to mean placing your retirement and other goals on hold .There are loans for college but not for retirement. So you may decide to focus on contributing to your 401(k) and/or Roth vs traditional IRA. However, if you feel strongly about helping your kids go through college relatively debt-free, you may want to focus more on your college savings options.We don't believe you have to pick one goal over the other. Remember, there are ways to balance the goals of saving for education and retirement.Caring for an aging parent?You may need to juggle your financial goals with the needs of your aging parents. Even if you don't have to contribute financially, you may need to spend time and energy making sure your parents situation remains positive.Use our financial checklist to help you navigate caring for an aging parent

If youve invested in an IRA for many decades, it may well turn into a key source of income for your retirement. Still, you might not deplete your IRA in your lifetime, especially if you also have a pension or a 401(k) and other investment income. So, if your IRA still has sizable assets after your passing, it would likely end up in your estate plan. If you leave your IRA to grown children or other family members, could they be hit with a big tax bill?Heres a little background: Up until the Secure Act of 2019, those who inherited traditional IRAs could extend their required withdrawals over their lifetimes, which stretched out the annual taxes due on these withdrawals. But the Secure Act changed the provisions for non-spouse beneficiaries who inherited an IRA after 2019, meaning that beneficiaries of inherited IRAs had only 10 years (beginning the year after death) to withdraw the entire balance. For some beneficiaries, this could potentially create a tax burden. (Inheritors of Roth IRAs are also required to follow the 10-year distribution rule but are not subject to income taxes on account earnings if the Roth IRAs five-year holding period has been met).However, not all beneficiaries were affected by the new rules. Spouses can stretch their inherited IRA distributions over their lifetimes and exceptions exist for certain non-spouse beneficiaries. Minor children of the IRA owner (until the age of majority), chronically ill or disabled individuals, and beneficiaries who are no more than 10 years younger than the IRA owner may opt to stretch their distributions.The new 10-year requirement applies to IRAs inherited on or after Jan. 1, 2020. But due to confusion over changes to required minimum distribution (RMD) rules for some beneficiaries of inherited IRAs, the IRS waived penalties for individuals who failed to take RMDs in 2021 and 2022 and extended the RMD penalty waiver for 2023.Although these rulings give beneficiaries those not eligible for the exemptions listed above more time to plan, they will eventually need to start taking RMDs, which could affect their tax situations. To help protect your heirs, consider these suggestions:   Using permanent life insurance. A properly structured permanent life insurance policy could help you replace the assets your family might lose to the taxes resulting from an inherited IRA. You might even consider naming a charity as the beneficiary of an IRA, rather than your family members. The charity would receive the IRA proceeds tax free, and the life insurance could then provide tax-free benefits to your heirs. Leaving taxable investment accounts to your heirs. Apart from your tax-deferred IRA, you may own other, fully taxable accounts containing investments such as stocks or bonds. Typically, these investments receive whats known as a step-up in their cost basis once they are inherited. This means your heirs will essentially inherit all the gains your investments earned by the time of your passing but they wont be taxed on these gains if they sell the assets immediately. This type of sale could help offset the taxes your heirs will incur from the inherited IRA.The tax and investment issues surrounding inherited IRAs can be complex, so consult with your tax and financial advisors before making any moves. And, as with many areas relating to inheritances, the sooner you start planning, the better. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.choate@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.  Edward Jones, Member SIPC

If your children are grown and your mortgage is paid off, do you still need to carry life insurance? It depends on your situation, but for many people, a cash-value life insurance policy, such as whole life or universal life, can be a valuable, tax-efficient source of retirement income.And by drawing on the cash value of your policy, you might be able to temporarily reduce the amount you take out from your retirement accounts, such as your IRA and 401(k). This ability could be especially important when the financial markets are down youd probably like to avoid liquidating your assets when their prices have dropped.  Basically, you can use the cash in your policy in these ways: Withdrawals You can typically withdraw part of the cash value of your life insurance without losing coverage. You generally wont incur income taxes on these withdrawals, up to the amount youve put into the policy that is, the premiums youve paid. Once your withdrawals exceed this amount, you would generally owe taxes. Also, keep in mind that any withdrawals will reduce your policys death benefit and the available cash surrender value. Policy loans  Rather than taking a withdrawal from your policy, you could take out a loan. You wont have to go through an approval process or income verification, and policy loans typically have lower interest rates than bank loans and dont assess closing costs. Plus, because your insurer will be lending you the money and using the cash in your policy as collateral, your policys cash value can remain intact and still potentially grow. However, policy loans do carry some issues of which you should be aware. For one thing, while a loan usually isnt taxable, you could end up owing taxes on any unpaid loan balance, including interest. And if this balance exceeds the policys cash value, it could cause your policy to lapse. Also, outstanding loans can reduce your death benefit. Cashing out If you cash out, or surrender, your policy, you can receive the entire cash value, plus any accrued interest. You will have to subtract any money needed to pay policy loans, along with unpaid premiums and surrender fees, which can be significant. Also, any amount you receive over the policys cash basis the total of premiums youve paid will be taxed as regular income. 1035 Exchange Through whats known as a Section 1035 Exchange, you can transfer your life insurance policy to an annuity, which can be structured to pay you a lifetime income stream. The exchange wont be taxable but surrender charges may still apply.  Given the potential tax implications of the above options, you may want to consult with your tax advisor before making any moves. Also, be sure you are comfortable with a reduced or eliminated death benefit. Specifically, youll want to be confident that your spouse or other family members dont need the proceeds of your policy. This may require some discussions about your loved ones plans and needs. And dont forget that life insurance can help your family pay for final expenses, such as funeral costs and unpaid medical bills.Whether its providing you with needed retirement income or helping your family meet future needs, your cash value life insurance policy is a valuable asset so try to put it to the best use possible.   Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.choate@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.  Edward Jones, Member SIPC

If youre a business owner, you always have a lot to do and a lot to think about. But have you put much thought into how youll eventually leave it all behind? Even if youre a few years away from that day, its a good idea to create an exit strategy. If youre like most other owners, most of your net worth may well be tied up in your business so how you exit that business can have a big impact on your finances and your retirement.As you begin the exit strategy process, youll need to examine some basic questions, such as how much you want for your business and how much its worth. But youll especially need to plan for the mechanics of your exit that is, just how youre going to sell or transfer ownership of it. Essentially, you have three main options: Internal sale or transfer You could sell or transfer your business to someone affiliated with the company, such as a family member, business partner or even a group of employees. The advantages of this method are that youll have greater control over the timing of your exit, and youll be able to provide greater continuity for your employees, clients and suppliers. One potential disadvantage is that your net sales proceeds may be less than what youd get from selling the business to an unrelated third party. External sale or transfer The biggest benefit of selling or transferring your business to an unrelated third party is that you can potentially maximize your net sales proceeds. But youll need to consider some tradeoffs, too. For one thing, a sale to an outside person or business usually requires a long and possibly expensive due diligence process. Also, youll have less control over the timing of your exit than you would if you sold the business to an internal source. Liquidation If you liquidated your business by selling all your assets and shutting down operations, you could end up with far fewer net proceeds than if you sold the business to an internal or external source. However, you could raise cash pretty quickly. But if you chose to liquidate or dissolve your business, it could potentially be disruptive for your employees, clients and suppliers.Because everyones situation is different, theres no clear-cut formula for deciding which of these exit options is right for you. And it isnt simply a matter of numbers, either, because youll need to consider some intangible factors, too. How will your family be affected by your choice? How would you feel if your business was in someone elses hands, or no longer existed? Youll need to work out these issues, along with the financial ones, before you decide on your business exit strategy.Fortunately, you dont have to go it alone. You may want to consult your financial, legal and tax advisors, and possibly work with a commercial banker and a business evaluation expert. By drawing on several sources of expertise, you can feel more confident that youll make a decision thats appropriate for your needs.One final suggestion: Dont wait too long before you begin putting together your exit strategy. Time goes fast and when the time comes for you to say goodbye to your business, youll want to be prepared.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com  This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

Do you worry about running out of money during your retirement years? If so, how can you help prevent this from happening?            In the first place, if you have this type of fear, youre far from alone. Consider this: 58% of retirement savers from all age groups, including current retirees, say that outliving their assets is their greatest retirement fear, according to a study by Cerulli Associates, a financial services research organization.             This type of fear can certainly affect your quality of life when you retire. Still, theres no need to panic because you can take steps to help prevent the running-out-of-money scenario.             Here are a few to consider:             Know how much youll need during retirement. You need to get a clear picture, or at least as good an estimate as possible, of how much money youll need to support your retirement lifestyle. Once you do retire, some costs, such as transportation or other work-related expenses, might go down, while others medical expenses, in particular will likely go up. The fear of running out of money, like many fears, is caused largely by what you dont know, so having a good sense of how much youll need in retirement can help reduce your anxieties.               Build financial resources before retirement. Youre probably at your peak earning capacity in the years close to your retirement, so consider contributing as much as you can afford to your IRA and 401(k) or other employer-sponsored retirement plan.              Maximize your Social Security payments. You can start collecting Social Security as early as 62, but your monthly benefits will be larger if you can afford to wait until your full retirement age, between 66 and 67. (Payments will max out at age 70.)         Re-enter the workforce. Going back to work in some capacity is one way to possibly help build retirement resources and delay taking Social Security. If you have a particular area of expertise, and you enjoyed the work you did, you might be able to go back to it on a part-time basis or do some consulting. You could boost your cash flow, and potentially extend your contributions to an IRA and to an employers retirement plan.              Cut costs during retirement. Possibly the biggest cost-cutting measure is downsizing are you willing and able to move to a less expensive area or scale down your current living space? Of course, this is an emotional decision, as well as a financial one, and downsizing isnt for everyone, but it might be something to at least consider. As for the lesser ways of reducing expenses, take advantage of senior discounts, which are offered in many areas, including entertainment, public transportation, restaurants and retail establishments. And look for other opportunities, such as cutting out streaming services you dont use.           Look for more income from your investments. As you get closer to retirement, and even when you do retire, you might want to adjust your investment portfolio to provide you with more income-producing opportunities. However, even as a retiree, youll want some growth potential in your investments to help keep you ahead of inflation.            Ultimately, the more you can bolster your financial security before and during retirement, the less fear you may have of outliving your money.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com

As a business owner, youve always got a lot to think about today but what about tomorrow? Have you thought about the person you would like to see as your successor?If you havent, youre not alone. Of the business owners who have created a succession plan, about 70% have named a successor for their businesses and have taken measures to train and prepare this successor, according to a survey by Morning Consult, NEXT 360 Partners and Edward Jones. But this means that nearly a third of business owners have not taken this action, leaving a big gap in their succession plans. So, if you havent yet named a successor, you may want to start thinking about it. It may be helpful to ask yourself these questions: Should I look inside or outside? You could find a successor whos already working for you, or you could find someone from the outside. On one hand, an internal successor would already know how you operate and what you value as you run your business. But on the other hand, an external successor could bring a new point of view and a different set of skills, both of which might prove beneficial. Youll need to weigh both choices carefully. How prepared is a potential successor? Whether you decide on an internal or external candidate, youll want to be sure the person you choose is prepared to take over the business. Do they have management skills? Will they share your commitment to your businesss success? Will they be able to build strong relationships with your customers or other employees? Are they enthusiastic about the work involved? Youll want to evaluate all these types of factors in making your selection.  Are there potential family squabbles? If you would like a family member to become your successor, you may need to be careful about whom you choose and how you communicate your decision to the entire family. Even if it may make sense for one individual to take over the business, perhaps because theyre already involved in it and theyre interested in taking it over, it doesnt mean hurt feelings wont develop among other family members, who may feel they are somehow being cheated out of what they view as their share of a valuable inheritance. So, if you are convinced that youre making the right choice, explain your reasoning to all family members and let them know that youre also exploring other, tangible ways for them to share in your family wealth, possibly by leaving them other financial assets through your estate plans. How will my choice of a successor affect my finances? Passing the business to an heir, selling it to an existing employee or selling it to an outside buyer can yield vastly different results for you in terms of your personal finances. Youll need to consider the possible business transfer arrangements, such as a buy-sell agreement, to determine which one is in your best interests. In doing so, you may want to work with your financial advisor or a consultant with experience in selling or transferring a business. Choosing a successor is one of the most important decisions youll make  so, take your time, evaluate your options and work to reach a decision that works well for everyone involved. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com   This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.  Edward Jones, Member SIPC

Many people plan to take an early retirement, so when that day arrives, theyre ready for it. But what if you were to face an unplanned retirement? Would you be prepared to deal with the financial issues?Its something worth thinking about, because any number of factors illness, a spouses illness, downsizing, other issues could lead to an abrupt departure from the workforce. But taking action while youre still working may help you make the transition easier on yourself.Your first move, of course, should be to at least consider the possibility of having to retire earlier than you planned. You can then move on to some concrete steps, possibly including the following. Build an emergency fund. Under any circumstances, its a good idea to build an emergency fund but its especially important if you want to prepare for an unforeseen retirement. Generally speaking, your emergency fund should contain three to six months worth of living expenses, with the money kept in a liquid, low-riskaccount. But if you suspect an earlier-than-anticipated retirement may be in your future, and you have some time to prepare for it, you should consider an emergency fund that contains a full years worth of expenses. Consider your portfolios asset allocation. If youre concerned about an unexpected retirement, you may want to consider the equities allocation in your portfolio. If you think you may need to tap into your portfolio sooner than you expected, you may not want to be over-exposed to investments most vulnerable to market volatility.However, these are the same investments that offer you the most growth potential which youll need to help stay ahead of inflation. So, look for an investment balance thats appropriate for your needs. As part of this positioning, you may want to shift some assets into income-producing vehicles, while alsoadding to the cash portion of your portfolio to boost your liquidity.    Evaluate your Social Security options. An unplanned retirement may cause you to consider taking Social Security earlier than you had planned. You can start taking Social Security when youre 62, but your monthly benefits will be up to 30% lower than if you had waited until your full retirement age, which is likely between 66 and 67. Ifyou have sufficient income through other sources, you may be able to delay taking Social Security until your checks will be bigger but of course, if you need the money, waiting may not be an  option.   Address your health care needs. If you take an unplanned retirement, and you have employer-sponsored health insurance, youll have to look for alternatives. You might be able to get extended coverage from your employer, but this could be quite expensive. Of course, if youre already 65, you can get on Medicare, but if youre younger, you might be able to get coverage under your spouses plan. If thats not an option, you may want to explore one of the health care exchanges created by the Affordable Care Act. To learn more about these exchanges, visit healthcare.gov.Taking an unexpected retirement can certainly be challenging but the more prepared you are, the better your outcomes are likely to be.Chad Choate III, AAMSFinancial Advisor |  Edward JonesBradenton's Riverwalk828 3rd Ave W Bradenton, FL 34205941-462-2445  chad.choate@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC  

Its been a bumpy year for the financial markets which means that some of your investments may have underperformed or lost value. Can you use these losses to your advantage?Its possible. If you have some investments that have lost value, you could sell them to offset taxable capital gains from other investments. If your losses exceed gains for the year, you could use the remaining losses to offset up to $3,000 of ordinary income. And any amount over $3,000 can be carried forward to offset gains in future years. This tax-loss harvesting can be advantageous if you plan to sell investments that youve held in taxable accounts for years and that have grown significantly in value. And you might receive some gains even if you take no action yourself. For example, when you own mutual funds, the fund manager can decide to sell stocks or other investments within the funds portfolio and then pay you a portion of the proceeds. These payments, known as capital gains distributions, are taxable to you whether you take them as cash or reinvest them back into the fund. Still, despite the possible tax benefits of selling investments whose price has fallen, you need to consider carefully whether such a move is in your best interest. If an investment has a clear place in your holdings, and it offers good business fundamentals and favorable prospects, you might not want to sell it just because its value has dropped. On the other hand, if the investments youre thinking of selling are quite similar to others you own, it might make sense to sell, take the tax loss and then use the proceeds of the sale to purchase new investments that can help fill any gaps in your portfolio. If you do sell an investment and reinvest the funds, youll want to be sure your new investment is different in nature from the one you sold. Otherwise, you could risk triggering the wash sale rule, which states that if you sell an investment at a loss and buy the same or a substantially identical investment within 30 days before or after the sale, the loss is generally disallowed for income tax purposes.Heres one more point to keep in mind about tax-loss harvesting: Youll need to take into account just how long youve held the investments youre considering selling. Thats because long-term losses are first applied against long-term gains, while short-term losses are first applied against short-term gains. (Long-term is defined as more than a year; short-term is one year or less.) If you have excess losses in one category, you can then apply them to gains of either type. Long-term capital gains are taxed at 0%, 15% or 20%, depending on your income, while short-term gains are taxed at your ordinary income tax rate. So, from a tax perspective, taking short-term losses could provide greater benefits if your tax rate is higher than the highest capital gains rate.Youll want to contact your tax advisor to determine whether tax-loss harvesting is appropriate for your situation  and youll need to do it soon because the deadline is Dec. 31. But whether you pursue this technique this year or not, you may want to keep it in mind for the future because youll always have investment tax issues to consider.   Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com  This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC

In the popular imagination, receiving an inheritance always sounds like a good thing after all, who doesnt want a financial windfall? And inheritances can certainly be life-altering events. But they can cause challenges, so youll want to help your heirs be prepared.            To assist in this preparation, try to address some key questions affecting your heirs:             Do they know whats in your estate plans? Your family and other heirs will be much better prepared to deal with an inheritance if they know what to expect. Thats why its so important that you share your estate plans with everyone involved. You need to let them know the wishes and decisions youve expressed in your will and other legal arrangements, such as a living trust. Of course, sharing this information doesnt necessarily mean that all your heirs will be completely satisfied with your choices but at least they wont be surprised, and perhaps will be less likely to cause disputes when the time comes to settle your estate.             Will they know what to do with the money or other assets? You may be planning to leave your grown children a sizable amount of assets, possibly including cash, stocks, real estate, IRAs, 401Ks or other types of valuable personal property. But this inheritance brings with it several possible questions: Do your heirs already have an investment platform ready to accept inherited stocks? If you do leave behind rental property or a vacation home, can it be easily sold? These types of issues are generally not hard to resolve, but the more prepared your heirs are for their inheritance, the quicker they can take whatever actions are needed.              Are they prepared to handle any taxes that may result from the inheritance? Unless you have a very large estate, your heirs likely wont face federal estate taxes. (In 2024, the first $13.61 million of an estate is exempt from federal estate taxes.) However, other types of taxes may apply. A few states assess state inheritance taxes, and your heirs could incur federal and/or state income taxes when they withdraw money from inherited assets funded with pre-tax dollars, such as some retirement accounts. They could also face capital gains taxes when they sell inherited assets, such as stocks, for more than they were worth at the time of the inheritance. In any case, inheritance-related taxes can be complex, so you and your family and other heirs should discuss these issues with your tax advisor.            Will they be liable for any outstanding expenses? If you have developed a comprehensive estate plan, it's unlikely your heirs will be on the hook for any outstanding expenses, such as credit card balances or funeral costs. If you do still carry a mortgage, though, and you are planning on leaving your house to your heirs, they may want to be prepared to act quickly to sell it.             When leaving an inheritance, theres a lot involved emotionally, financially and legally. So, do whatever you can to make the entire process as easy as possible for your loved ones. By communicating your wishes regarding the inheritance, and by considering all the issues that may arise, you can go a long way toward achieving the outcomes you desire.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.comThis article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Many investors were glad to see the end of 2022. But whats ahead this year? And what moves can you make in response to last years results? To begin with, heres what happened: 2022 was the worst year for the financial markets since 2008, with the Dow Jones Industrial Average dropping nearly 9%, the S&P 500 losing more than 19% and the technology-heavy Nasdaq falling 33%. Several factors contributed to these results, including the moves by the Federal Reserve to aggressively hike interest rates to combat inflation, the Russia-Ukraine war, recession fears and increased concern over COVID-19 cases in China.However, 2023 may be different. Many experts believe that inflation may moderate considerably, especially during the second half of the year. If that happens, the Fed may well pause its interest rate hikes and perhaps even consider cutting rates a move that is often positive for the financial markets. Also, if a recession emerges, but its relatively short and mild, as expected, the rebounding economy may be favorable for the investment outlook.   Regardless of what transpires this year, though, you can help move toward your financial goals by following some basic steps that make sense in all investment environments. Here are a few to consider: Focus on the long term. It can bedisconcerting to look at investment statements containing negative results, as was the case for many people throughout 2022. But its important to view a single years outcome in the larger context and historically, the stock market has had many more positive years than negative ones, though, of course, past performance is not a guarantee of what will happen in the future. In any case, its generally not a good idea to overreact to short-term downturns and make moves that could work against your long-term strategy. Keep adequate cash in your portfolio. Thevalue of your investments may have gone down in 2022 but you didnt really sustain any actual losses unless you sold those investments for less than what you paid for them. To avoid having to sell investments to supplement your income or to pay for unforeseen costs, such as a major home or car repair, try to build the cash portion of your portfolio, so it covers a few months worth of living expenses.When youre retired, and it becomes even more imperative to avoid selling investments when their price is down, you may need an even bigger pool of available cash. Look for opportunities. Although 2022 was certainly a down year for the financial markets, some developments have presented new opportunities for investors. For one thing, the contribution limits have increased for IRAs, 401(k)s, and Health Savings Accounts (HSAs), all of which are pegged to inflation. Also, with interest rates considerably higher than they were a year ago, fixed-income investments may offer more income and provide added stability in portfolios during times of economic weakness.When youve been investing for a long time, you will experience down years in the market, such as the one in 2022. These years are an inevitable part of the investment process. But since you cant control what happens in the financial markets, you need to concentrate on what you can control and that may be a lot more than you think. Chad Choate III, AAMS Edward Jones828 3rd Ave W. Bradenton, FL 34205 941-462-2445 chad.choate@edwardjones.com

As we begin the new year, you may be receiving various tax statements from your financial services provider  so its a good time to consider how your investments are taxed. This type of knowledge is useful when youre doing your taxes, and, perhaps just as important, knowing the type of taxes you generate can help you evaluate your overall investment strategy. To understand the tax issues associated with investing, its important to understand that investments typically generate either capital gains or ordinary income. This distinction is meaningful because different tax rates may apply, and taxes may be due at different times. So, when do you pay either capital gains taxes or ordinary income taxes on your investments?You receive capital gains, and pay taxes on these gains, when you sell an investment thats increased in value since you purchased it. Long-term capital gains (on investments held more than a year) are taxed at 0%, 15% and 20%, depending on your income. Also, qualified dividends which represent most of the dividends paid by American companies to investors are taxed at the same rates as long-term capital gains. (Keep in mind that youll be taxed on dividends even if you automatically reinvest them.)On the other hand, you pay ordinary income taxes on capital gains resulting from sales of appreciated assets youve held for one year or less. You also pay ordinary income taxes when you receive ordinary dividends, which are paid if you purchase shares of a company after the cutoff point for shareholders to be credited with a stock dividend (the ex-dividend date). Because your ordinary income tax rate may be much higher than even the top long-term capital gains rate, you may be better off, from a tax standpoint, by focusing on investments that generate long-term capital gains. And the best strategy for doing just that is to buy quality investments and hold them for the long term. By doing so, you could also reduce the costs and fees associated with frequent buying and selling.The investment tax situation has another twist, though, because not all ordinary income is taxable and if it is, it may not be taxable immediately. The most common example of this is tax-deferred accounts, such as a traditional IRA and 401(k). When you take money from these accounts, typically at retirement, youll pay taxes at your personal tax rate, but for the years and decades before then, your taxes were deferred, which meant these accounts could grow faster than ones on which you paid taxes every year. Consequently, its generally a good idea to regularly contribute to your tax-advantaged retirement accounts. Finally, some investments and investment accounts are tax free. Municipal bonds are free from federal income taxes, and often state income taxes, too. And when you invest in a Roth IRA, your earnings can grow tax free if you dont start taking withdrawals until youre at least 59 and youve had your account at least five years. Ultimately, tax considerations probably shouldnt be the key driver of your investment choices. Nonetheless, knowing the tax implications of your investments specifically, what type of taxes they may generate and when these taxes will be due can help you evaluate which investment choices are appropriate for your needs.   Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com  This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

You plan, dream and talk about it for decades and now its finally within sight: retirement. Now that your vision is about to become a reality, there are lots of details to take care of. In addition to talking to your financial advisor, this checklist can help you get started. Checklist-Coming down the home stretch  Take stock of your income, expenses, assets and other financial obligations. Your assets include:   Retirement savings: IRAs and employer-sponsored plans   Equity in your home and other real estate   Cash value of life insurance   Investments   Bank accounts   Work with your financial advisor to identify a specific goal for the amount of savings you want to have at retirement and develop a strategy to reach it.   If you still have a few years to retire, ramp up your retirement plan contributions and savings as much as possible. Limits on contributions to IRAs and many employer retirement plans e.g., 401(k) and 403(b) plans are higher for people 50 and over.   Work to pay off all your debts, including mortgage, car loans, credit cards and home equity loans.   Estimate your Social Security benefits see www.ssa.gov to calculate your benefits and any pensions or other government benefits.   Think about when you'd like to retire. Your age when you retire will impact the amount of Social Security benefits you receive.   Work with your financial advisor to estimate how much income you think you'll need in retirement. Take into consideration that some expenses (such as health care) may be higher in retirement, while others will be lower.   What other financial obligations do you have? Are you caring for parents or supporting children? Do you want to help children or grandchildren with their education or leave an inheritance?Do you wish to make donations to charity?   Estimate how many years you may spend in retirement based on average life expectancy. If your family has a history of living well into the 90s or longer, expect that you'll live that long, too! Put your plan into action  Learn about the requirements for your retirement plans how early you can start taking penalty-free withdrawals, when you must begin withdrawing, and how long you can continue making contributions.   Review the beneficiaries listed on your retirement accounts, life insurance policies, annuities and trusts, and make sure they're up-to-date.   Enroll in Medicare three months before you turn 65, and look into Medicare supplemental insurance. If leaving your job before age 65, determine how you will cover health care. Options may include:   Enrolling in your spouses medical plan   Obtaining insurance through the federal Health Insurance Marketplace   Extending your employers coverage under COBRA   Purchasing private insurance   Consider purchasing long-term care insurance.   Everyone knows about Social Security, but you may qualify for other benefits. You may be eligible for federal benefits to help pay for medications, health care or utilities. Visit www.benefitscheckup.org to find out.   Meet with an estate-planning attorney to ensure you have a strategy in place that will carry out your wishes. Review and, if necessary, update your:   Will   Living will   Durable health care power of attorney   Health care power of attorney   Trust   Think about and discuss with your loved ones how you'd like to spend your time. Do you plan to earn income in any way, such as a part-time job or consulting? Or are you ready to leave the workforce altogether?   Be sure to think about the nonfinancial considerations and discuss them with your loved ones. It's important to have a plan for how you'll spend your newfound free time.  

For more information on the author, Edward Jones, CLICK HERE!Losing a loved one is never easy. On top of the emotional distress, you may suddenly have to deal with financial issues you've never encountered. This guide can help walk you through some of the most important steps to take on behalf of your loved one's finances.Order multiple copies of the death certificate.Financial institutions and insurance companies will require certified death certificates before they release funds. The funeral home, mortuary or medical examiner's office can provide them for you. Depending on your state, the cost could range from $10 to $25 per death certificate. File the will with the appropriate probate court, if needed.Contact your loved ones estate-planning attorney to determine if you need to file the original will with the probate court and/or open a probate estate. The attorney should have copies of your loved ones most recent estate-planning documents and can assist you with the probate process. You may need to contact the financial institution that holds the mortgage for your loved ones real estate to ensure the mortgage and homeowners insurance are paid while the estate is being settled. Notify your loved ones employer(s).Be sure to collect any salary, vacation or sick pay owed. You also may want to look into continuing health insurance coverage and potential survivors benefits for a spouse or children. If the death was work-related, you may be able to file a claim for workers compensation benefits. You also should contact past employers about pension plans. Contact your loved ones financial advisor.A financial advisor can help determine what investments your loved one owned and help assess the value of those assets on the date of death. He or she also can help retitle assets in the name of a beneficiary or an heir. Report the death to the Social Security Administration.If your loved one received benefits, contact your local Social Security Administration office to find out whether any payments must be returned. Additionally, a surviving spouse may be eligible for a lump-sum death benefit and/or survivors benefit. To learn more, contact your Social Security Administration office or call 800-772-1213. File any insurance claims.Contact the insurance companies where your loved one owned policies and ask about their claims processes. You also should consult your legal or tax advisor to determine whether funds may be needed to pay final expenses or taxes. In the case of annuities, the beneficiary(ies) should consult with a legal and/or tax advisor to determine which payout option is appropriate. Reduce the risk of identity theft.Notify your loved ones financial institutions to retitle or distribute the accounts and cancel any online banking services. Cancel your loved ones passport, drivers license and any credit cards in his or her sole name. Review credit card statements monthly to ensure no unauthorized transactions have occurred and fees are reimbursed when appropriate. You also should report your loved ones death to all three credit reporting agencies: Experian, Equifax and TransUnion. They can flag the accounts as deceased to create a permanent credit freeze. File a federal estate tax return.You should consult with your legal or tax advisor to determine whether your loved one's estate is required to file a federal estate tax return. State laws vary, but you may need to file state estate tax and/or inheritance tax returns within nine months of the death. In addition, federal and state income taxes are due for the year of death on the normal filing date. If you need assistance, please consult a qualified tax professional. Close your loved one's social media accounts.Social media sites have different policies on closing the account of a loved one. In some cases, you may be able to turn your loved one's page into a memorial. Online platforms enforce their own rules on who can or can't access a deceased person's accounts. If you have questions about this, you may want to contact the customer service areas from platforms such as Facebook, Instagram and Twitter to learn their policies.Also consider other types of online accounts, such as financial (PayPal, bill-paying), virtual property (air miles, "points" for hotel bookings), business (eBay, Amazon, Etsy), email (Gmail, Outlook, Yahoo), online storage (Google Drive, iCloud, Dropbox) and applications (Netflix, Kindle, Apple).