Exploring Financial Information Sources with Liz Zemak

In this episode of the Wine and Dime podcast, host Amy Irvine welcomes Liz Zemak, a financial planner and tax professional. They discuss various sources of financial information that people can explore to enhance their financial knowledge. They highlight The Morning Brew, Wall Street Journal, CNBC, Bloomberg, Yahoo Finance, The Balance, Nerd Wallet, and Finra.org as reliable sources for financial news and education. Liz also mentions Student Loan Planner as a valuable resource for individuals dealing with student loans. The conversation emphasizes the importance of finding resources that present information in an easily understandable and digestible manner.

Key Takeaways:

  1. The Morning Brew, Wall Street Journal, CNBC, Bloomberg, Yahoo Finance, The Balance, Nerd Wallet, and FINRA.org are reliable sources for financial information.

  2. Student Loan Planner is a valuable resource for individuals dealing with student loans.

  3. It is crucial to find resources that present information in an easily understandable and digestible manner.

About The Guest:

Liz Zemak is a financial planner and tax professional with over ten years of experience. She joined the Rooted Planning Group in July 2023 and has been dedicated to building client relationships and providing valuable financial advice. Liz is passionate about helping clients achieve their financial goals and has been pursuing certifications to enhance her expertise in the field.

Quotes:

  • "Finding those resources that really present information in a way that's easy for you to understand is important." - Liz Zemak

  • "If you make slight changes on a day-to-day basis, you can reach your financial goals." - Liz Zemak

Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!

If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

Or visit us at www.rootedpg.com/podcasts for full show notes and links!

Exploring Financial Resources: A Comprehensive Guide

Welcome to Wine and Dime, where we uncork the world of personal finance and explore the various sources of financial information available to individuals. In today's episode, we have Liz Zemak, a seasoned financial planner, joining us to discuss the different resources people can turn to for financial knowledge. As we delve into this topic, we'll highlight some of our favorite sources and the reasons why we find them valuable.

The Morning Brew: A Digestible Source of Financial News

One resource that our team unanimously recommends is The Morning Brew. This platform offers both a newsletter and a podcast, making it convenient for individuals to stay informed even on the go. Liz and I particularly appreciate The Morning Brew because it provides concise and easily digestible summaries of the top financial stories. It serves as a great starting point for exploring further information on specific topics.

Established Financial News Outlets

When it comes to financial news, there are several established outlets that consistently produce high-quality content. The Wall Street Journal, CNBC, Bloomberg, and Yahoo Finance are among our team's top picks. These sources cover a wide range of financial topics and provide in-depth analysis of current events. Their reputation and credibility make them reliable sources for staying updated on the latest developments in the financial world.

Going Back to Basics: The Balance and Nerd Wallet

Sometimes, it's essential to revisit the fundamentals of personal finance. The Balance and Nerd Wallet are two resources that excel in breaking down complex financial concepts into easily understandable language. Whether you're looking for information on different types of accounts, benefits offered at work, or general financial literacy content, these platforms offer valuable insights. They are particularly useful for individuals who are new to the world of finance or want to refresh their knowledge.

FINRA.org: A Trustworthy Consumer Education Resource

For those seeking factual and well-researched information, Finra.org is an excellent resource. While primarily known as a platform for broker registration, Finra.org also provides comprehensive consumer education. The content on this website undergoes rigorous checks, ensuring accuracy and reliability. It serves as a valuable resource for individuals looking to enhance their financial knowledge and make informed decisions.

Student Loan Planner: Navigating the Complexities of Student Loans

Student loans can be a significant financial burden for many individuals. That's why our team highly recommends Student Loan Planner, a resource dedicated to helping individuals navigate the complexities of student loans. With the rising costs of education, understanding repayment plans and exploring strategies for managing student debt is crucial. Student Loan Planner offers valuable insights and tools to help individuals make informed decisions regarding their student loans.

The Interplay Between Financial and Personal Health

As we wrap up our discussion on financial resources, it's worth highlighting the connection between financial health and personal health. Liz, with her background in bodybuilding and health training, emphasizes the importance of self-control, discipline, and consistency in both realms. Just as we develop healthy habits to take care of our physical well-being, we must cultivate similar habits to achieve financial goals. Whether it's practicing self-control in spending or consistently working towards financial objectives, these habits contribute to overall financial and personal well-being.

Conclusion: Empowering Yourself with Financial Knowledge

In today's digital age, there is an abundance of financial resources available at our fingertips. By exploring a variety of sources, we can empower ourselves with the knowledge needed to make informed financial decisions. From trusted news outlets like The Morning Brew, The Wall Street Journal, CNBC, Bloomberg, and Yahoo Finance to educational platforms like The Balance, Nerd Wallet, and Finra.org, each resource offers unique insights and perspectives. Additionally, specialized resources like Student Loan Planner cater to specific financial needs.

As we continue on our financial journey, let us remember the importance of consistency, self-control, and discipline. Just as we prioritize our physical health, we must prioritize our financial health. By leveraging the wealth of information available and developing healthy financial habits, we can achieve our goals and secure a brighter financial future.

So, grab a glass of your favorite wine or beverage of choice, and dive into the world of financial knowledge. Cheers to your financial well-being!

This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.

Visit www.rootedpg.com to learn more.

Investment Long Game: Why Staying in Stocks Pays Off

Amy Irvine and Kate Welker discuss whether people should be pulling money out of the stock market and putting it into cash. They explain that while cash may currently be yielding a high rate of return, historically, a stock market-based portfolio will provide a higher rate of return over the long term. They also discuss the concept of the yield curve and how it affects different investment options. Additionally, they provide tips for saving on taxes at the end of the year, such as maximizing contributions to retirement plans and considering Roth conversions.

Key Takeaways:

  • Historically, a stock market-based portfolio will provide a higher rate of return over the long term compared to cash.

  • The yield curve refers to the relationship between short-term and long-term interest rates. A normal yield curve has lower short-term rates and higher long-term rates.

  • Consider maximizing contributions to retirement plans and exploring Roth conversions to save on taxes at the end of the year.

Quotes:

  • "For a long-term investment, staying steady in the market is more successful." - Kate Welker

  • "Run some numbers right now. Once you get to the end of the year, you don't have a lot of options." - Amy Irvine

Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!

If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

Or visit us at www.rootedpg.com/podcasts for full show notes and links!

Should You Pull Money Out of the Stock Market?

The question of whether to pull money out of the stock market and invest in cash is a common one, especially during periods of market volatility. However, it is important to consider one's long-term goals and objectives before making any decisions based on fear. As Kate Welker, one of the financial planners at Rooted Planning Group, explains:

"If you have one side of your equation allocated to stocks and equities, and the other side allocated to fixed income, such as bonds, CDs, cash, or money market funds, it may be ideal to allocate a portion of your cash to a money market fund that is currently yielding a higher rate of return. While this rate is not guaranteed and may change in the future, it is currently around 5%."

It is crucial to remember that historically, a stock market-based portfolio has provided a higher rate of return over the long term compared to cash investments. As Kate points out, cash investments have historically averaged around 1.2% return, while a stock market-based portfolio can yield a historical rate of return of 7% to 9%. Therefore, staying invested in the stock market is generally more beneficial for long-term investment goals.

Understanding the Yield Curve

To fully grasp the implications of investing in different types of fixed income vehicles, it is important to understand the concept of the yield curve. The yield curve represents the relationship between the interest rates and the time to maturity of bonds of the same credit quality. A flat yield curve occurs when short-term and long-term interest rates are relatively equal, while an inverted yield curve occurs when short-term interest rates are higher than long-term rates.

As Amy Irvine, the CEO and founder of Rooted Planning Group, explains:

"A flat yield curve would mean that a three-month CD, a five-year CD, and a ten-year CD all have the same interest rate, for example, 5%. An inverted yield curve, on the other hand, occurs when shorter-term interest rates are higher than longer-term rates."

In recent years, the yield curve has been inverted, with shorter-term rates being higher than longer-term rates. However, the yield curve is starting to level out, and longer-term rates are beginning to rise. This normalization of the yield curve suggests that investing in longer-term fixed income vehicles may become more attractive in the future.

Last-Minute Tips for Maximizing Tax Savings

As the end of the year approaches, it is essential to consider strategies for maximizing tax savings. One such strategy is to contribute to retirement plans, such as 401(k)s or 403(b)s, before the end of the year. By increasing your deferral rate, you can lower your taxable income for the current year. Kate Welker advises:

"If you have extra cash flow available or have not maximized your employer-sponsored retirement plan, it may be beneficial to increase your deferral rate. This can help lower your taxable income for the current year."

Another strategy to consider is a Roth conversion. A Roth conversion involves transferring funds from a tax-deferred account, such as a traditional IRA, to a Roth IRA. By paying taxes on the converted amount now, you can potentially enjoy tax-free growth in the Roth IRA. Kate explains the importance of timing when considering a Roth conversion:

"If you anticipate being in a higher tax bracket in the future, it may make sense to do a Roth conversion now. By projecting your income for the year and determining your tax bracket, you can assess whether a Roth conversion would be beneficial."

Conclusion and Future Outlook

In conclusion, it is generally advisable to stay invested in the stock market for long-term investment goals, rather than pulling money out and investing in cash. While cash investments may offer a higher rate of return in the short term, historical data shows that stock market-based portfolios provide higher returns over the long term. Additionally, understanding the yield curve can help investors make informed decisions about fixed income investments.

As the end of the year approaches, it is crucial to consider strategies for maximizing tax savings. Contributing to retirement plans and considering Roth conversions can help lower taxable income and potentially provide tax-free growth in the future. By running projections and assessing one's tax bracket, individuals can make informed decisions about their financial future.

Looking ahead, it is important to stay informed about market trends, interest rates, and tax regulations. Consulting with a financial planner can provide valuable insights and guidance in navigating these complex financial decisions. By staying proactive and informed, individuals can make the most of their investments and optimize their financial well-being.

This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.

Visit www.rootedpg.com to learn more.

Budgeting Tips and Tricks for a Successful Spending Plan

Wine and Dime is back with a new episode...

Budgeting. The mere mention of the word can send shivers down the spine of even the most financially savvy individuals. It's a topic that often elicits feelings of overwhelm and anxiety. But fear not, for today we have the wonderful Becky Eason, a financial planner with Rooted Planning Group, here to share her expertise and shed some light on the art of budgeting.

About The Guest(s):

Becky Eason is a financial planner at Rooted Planning Group. She has been with the company since 2018 and is known for her expertise in budgeting and finding deals. Becky is passionate about helping clients achieve their financial goals and make the most of their money.

Key Takeaways:

  • Evaluate past spending to understand where your money is going and assign values to each expense.

  • Set goals and automate savings to achieve them.

  • Use apps and tools like Mint.com to track spending and find discounts.

  • Be flexible with travel plans to take advantage of lower prices.

  • Seek out local resources and workshops for financial guidance and counseling.

Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!

If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

Or visit us at www.rootedpg.com/podcasts for full show notes and links!

The Power of Intentionality

When it comes to budgeting, it's important to start with a clear goal in mind. Are you budgeting to address a cash flow deficit or simply to gain a better understanding of where your money is going? This distinction will shape your approach to budgeting.

Becky suggests starting by examining your historical spending patterns. Take a look at your bank and credit card statements from the past few months and categorize each transaction. This exercise will give you a clear picture of where your money has been going. From there, you can assign value to each category and determine if any adjustments need to be made.

"By going historical, you're not really being conscious of what you should be spending your money on. It's okay, this is what I actually am doing. And then once you build that out, then you can analyze what you've been spending and put the value to it," Becky explains.

The Importance of Setting Goals

Once you have a clear understanding of your spending habits, it's time to set goals. Becky emphasizes the importance of being intentional with your spending and aligning it with your values. If travel brings you joy, for example, you can shift your spending in other areas to create a travel budget.

By incorporating your goals into your spending plan, you can visualize how much you can allocate toward each goal. Becky recommends automating your savings for these goals, ensuring that the money is set aside and easily accessible when needed.

Strategies for Reducing Spending and Increasing Income

For those facing a cash flow deficit, reducing spending and increasing income are key strategies. Becky suggests finding a balance between saving for retirement and paying off high-interest debt. It may be necessary to scale back on retirement contributions to prioritize debt repayment.

She also advises exploring resources within your community, such as government organizations, local churches, and nonprofits, that offer workshops or counseling on financial management. These resources can provide guidance and support as you navigate your financial journey.

The Art of Finding Deals

Becky is known for her knack for finding deals and discounts. She shares some of her tips and tricks for saving money, particularly when it comes to travel. Setting price alerts on flight bookings, monitoring prices for potential adjustments, and being flexible with travel dates can all lead to significant savings.

Additionally, Becky suggests utilizing apps and working with travel agents who can help find the best deals and save you time. Travel agents often have access to exclusive discounts and can assist with price adjustments if the cost of your trip decreases after booking.

Overcoming Fear and Taking Action

Budgeting can be a daunting task, but Becky encourages individuals not to be afraid of it. She emphasizes the importance of facing your financial situation head-on and taking the necessary steps to gain control over your money.

"Don't be afraid of it. There's a lot of fear around looking at your spending, and it can be fearful and time-consuming, but the sooner you do it, the sooner you'll be able to see the results," Becky advises.

Conclusion and Future Outlook

Budgeting is a powerful tool that allows individuals to take control of their finances and work towards their goals. By being intentional with spending, setting clear goals, and exploring strategies for reducing spending and increasing income, anyone can create a solid financial plan.

As technology continues to advance, there are more resources than ever to assist individuals in their budgeting journey. From apps that track spending to online workshops and counseling services, the options are endless. The key is to find the tools and strategies that work best for you and your unique financial situation.

In conclusion, budgeting is not something to be feared or avoided. It is a valuable skill that can transform your financial future. By taking the time to evaluate your spending, set goals, and explore strategies for reducing spending and increasing income, you can create a spending plan that aligns with your values and helps you achieve your dreams. So, don't wait any longer. Start your budgeting journey today and take control of your financial destiny.

This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.

Visit www.rootedpg.com to learn more.

Understanding Asset Allocation: A Simplified Guide for Investors

Hello, everyone! Welcome to another episode of the Wine and Dime Podcast! In this episode, I have the pleasure of chatting with Kerrie Beene about a topic that sometimes gets a bad rap: asset allocation. Kerrie isn’t a fan of the term, explaining that it can be somewhat intimidating and confusing for clients. Together, we delve into the critical importance of comprehending asset allocation, especially regarding its relation to risk tolerance and investment goals. We also explore the intriguing concept of asset location and discuss the different types of accounts that you might utilize in your investment journey. Our conversation underscores the crucial need for all clients to educate themselves and seek advice from reliable, trusted sources in the investment world. Join us for a deep dive into making asset allocation and investment more accessible and understandable!

Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!

If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

Or visit us at www.rootedpg.com/podcasts for full show notes and links!

Key Takeaways:

  • Asset allocation is the mixture of investments within a portfolio and is based on an individual's risk tolerance and investment goals.

  • It is important to understand the different types of investments, such as stocks and bonds, and how they can be allocated within different accounts.

  • Tax allocation is also a consideration when determining asset allocation, as different types of accounts have different tax implications.

  • Target date funds can be a good option for beginners, as they automatically adjust the asset allocation based on the investor's age and retirement timeline.

Quotes:

  • "Don't let this terminology scare you. Take the time to educate yourself." - Kerrie Beene

  • "Asset allocation is the mixture of investments within your account or portfolio." - Kerrie Beene

  • "Don't put all your eggs in one basket. Diversify your investments." - Amy Irvine

  • "Target date funds are a great way to start investing, as they automatically adjust the allocation based on your age and retirement timeline." - Kerrie Beene

About The Guest(s):

Kerrie Beene is a financial planner with Rooted Planning Group. She has a high level of understanding of retirement and investments and is passionate about helping clients understand complex financial concepts.

A Conundrum Called Jargon

We've all been there – enveloped by the perplexing jargon of the financial world, feeling somewhat adrift in a sea of terminologies like "asset allocation." As your guide through this maze, I aim to demystify these terms, breaking them into digestible insights that won’t leave you lost in translation.

The Essence of Asset Allocation

Asset allocation isn’t just a term; it's an instrumental strategy shaping your investment portfolio, tailored meticulously according to your risk tolerance and financial goals. How do we decipher our comfort levels and preferences concerning various investment options? The episode provides a magnifying glass over the methodologies that assist in crafting a strategy sculpted to your needs.

Diversification: Your Financial Safety Net

"Diversifying" is more than a catchphrase; it's a safety net, ensuring you're not entrusting your financial future to a singular investment basket. Spreading your investments judiciously across varied asset classes, we unearth the secret to mitigating risks while simultaneously maximizing potential returns.

Exploring Beyond with Asset Location

While we dissect the realm of asset allocation, we also saunter into the domain of asset location, exploring how this extends our investment strategy beyond mere allocation, considering the type of accounts and their respective tax implications.

Your Pathway to Financial Literacy

Navigating the financial world requires a semblance of understanding of its intricate terminologies. Fear not, for embarking on this journey with us equips you with the knowledge, to decode complex jargon into straightforward, actionable insights.

Embarking on Investment Journeys with Target Date Funds

For the nascent investor, target date funds might be your starting point, offering a simplified, hands-off investment approach, progressively re-balancing itself as you inch closer to your retirement. But is it the one-stop solution?

The Impact and Future of Asset Allocation

Asset allocation isn’t merely a set-and-forget strategy; it’s a dynamic, evolving approach, requiring periodic reviews and realignment, especially as technological advancements like robo-advisors become intertwined with investment strategies.

This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.

Visit www.rootedpg.com to learn more.

How to Sell Yourself at a Job Interview, Without Sounding Like a Jerk With Sarah Connors

As the job market continues to evolve and adapt, it is essential for individuals to approach their career transitions with confidence and purpose. Whether you are seeking a new opportunity or have been displaced from your current position, understanding the recruitment process and effectively positioning yourself in the market is crucial. In this article, we will explore the insights and expertise of Sarah Connors, a seasoned recruitment professional, as she shares her knowledge on navigating the job market and finding the right fit for your career aspirations.

About The Guest(s):

Sarah Connors is the Senior VP of Planet Professional, a staffing firm based in Boston. With over 12 years of experience in recruiting, Sarah has a passion for helping individuals find their dream jobs and guiding them through the placement process. She specializes in administrative, accounting, finance, HR, and recruiting roles.

Summary:

Sarah Connors, Senior VP of Planet Professional, joins Amy Irvine, founder and CEO of Rooted Planning Group, to discuss the process of finding the right job placement. Sarah shares her background in recruiting and explains the importance of the intake call in understanding a candidate's needs and preferences. She provides tips on how to sell yourself in an interview without sounding arrogant and emphasizes the significance of researching the company before an interview. Sarah also advises individuals to regularly evaluate their happiness and career goals to ensure they are on the right path.

Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!

If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

Or visit us at www.rootedpg.com/podcasts for full show notes and links!

Key Takeaways:

  1. The intake call is crucial in understanding a candidate's needs and preferences.

  2. Confidence in an interview comes from listening, asking insightful questions, and showing passion for your work.

  3. Researching the company before an interview is essential to demonstrate your interest and preparedness.

  4. Regularly evaluate your happiness and career goals to ensure you are on the right path.

  5. Did you know that the average resume initially only gets a 5 - 10-second look, so what do you need to do to make it stand out?

  6. How to self-promote without sounding overconfident like a jerk

  7. When to apply for a job even when you aren’t sure you have all the qualifications

To learn more about Sarah Connors and her expertise in recruitment, you can connect with her on LinkedIn or reach out to her via email at sconnors@planet-pro.com.

Wine Recommendations: 

This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting or looking to make a big change, Rooted Planning Group can help.

Visit www.rootedpg.com to learn more.

To Divorce or Not To Divorce: Moving Gracefully Through Your Journey with Paula Lesso

Hello, dear listeners! In this special episode of the "Wine and Dime" podcast, we are venturing into a topic that intertwines personal growth and financial wisdom - navigating the complex journey of divorce. I am thrilled to introduce you to the remarkable Paula Lesso, a seasoned divorce coach and author, who has transformed her personal experiences into a beacon of support and guidance for many women. And here's a little sprinkle of excitement - Paula has a heartwarming exclusive offer just for our listeners, which we can't wait to unveil in the episode!

Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!

If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

Or visit us at www.rootedpg.com/podcasts for full show notes and links!

What You Will Learn

Join us as we uncork a bottle of empathy, understanding, and financial savvy in this episode. Here are some nuggets of wisdom you can look forward to:

  • The Three H's to Happiness: Discover Paula's unique approach to finding joy and fulfillment during and after divorce, focusing on the Head, Heart, and Health.

  • Making the Go or No-Go Decision: Learn how to evaluate your relationship critically and make informed decisions that protect your best interests.

  • How Paula’s coaching can help you gain clarity on your journey

  • Reasons to build your “team” should you decide to move forward with a divorce

  • Financial Planning During Divorce: Gain insights into the financial intricacies of divorce and how to navigate them with grace and foresight.

  • Communication and Self-Reflection: Uncover the power of effective communication and self-reflection in healing and rebuilding relationships.

Wine Recommendation

Dr. Konstantin Frank Salmon Run Riesling

As we delve into this enriching conversation, let's raise a glass of the exquisite Salmon Run Riesling 2021. Best described as bright fresh fruit with dominant characters of fresh pineapple and lemon sorbet. The light sweetness is well balanced by a refreshing acidity and a soft mouth feel.

Pair with Middle Eastern, Moroccan, Thai, and Asian cuisines. Pairs well with Spicy and Aromatic Ingredients like Pepper, Ginger, Curry, Sesame, and Soy. Spicy BBQ and Wings. Pork.

Conclusion

As we wrap up this preview, I, Amy Irvine, invite you to join us in this comforting and enlightening session. Together, we'll explore the realms of personal growth and financial stability during one of life's most challenging transitions. Let's uncork both a bottle of fine wine and the wisdom Paula Lesso has to offer, fostering a community of support, understanding, and resilience.

Remember, whether you're going through a divorce or simply interested in personal finance nuances during such a transition, this episode promises a blend of heartfelt advice and financial expertise. So, grab your favorite wine glass and join us for a session that promises warmth, camaraderie, and a journey to rediscovering happiness.

Cheers to moving gracefully through life's journeys, one step (and one sip) at a time!

Find More About Our Special Guest and Today's Wine Recommendation:

This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.

Visit www.rootedpg.com to learn more.

Disclaimer: The information provided in this episode is for informational purposes only and should not be considered legal or financial advice. Every individual's situation is unique, and it is recommended to consult with a qualified professional before making any decisions related to divorce or financial planning.

Diving into the 529 Plan: College Savings and Strategies

Welcome back Wine and Dime listeners! As the CEO and founder of Rooted Planning Group, I am fervent about assisting families in steering through the intricate world of college planning. This episode will dissect the nuances of 529 plans, a favored college savings avenue. We will scrutinize the advantages and considerations of these plans, coupled with shedding light on other savings prospects and strategies. So, pour yourself a glass of wine and accompany me as we venture into college planning, equipped with the finest insights and a splash of exquisite wine.

Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!

If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

Or visit us at www.rootedpg.com/podcasts for complete show notes and links!

Key Takeaways:

  • 529 plans are a tool for college savings but should not be overfunded.

  • Contributions to 529 plans are made with after-tax dollars and grow tax-free.

  • 529 plans may have minimal impact on financial aid eligibility.

  • Consider other savings opportunities and prioritize retirement savings.

  • Engage with the college financial aid office early and be aware of hidden costs.

Exploring the East Side of Seneca Lake

Before we immerse ourselves in the complexities of 529 plans, I wish to impart some reflections on the wines I am venturing into this autumn. As the fall season graces upstate New York, I am eager to traverse the east side of Seneca Lake. A vineyard that has piqued my interest is Caywood Vineyards. Nestled near the Finger Lakes National Forest, Caywood Vineyards boasts a tasting room adorned with handcrafted redwood and oak, complemented by a three-story fireplace. It seems to be the quintessential locale to bask in the fall atmosphere. Caywood Vineyards, a subsidiary of the Pleasant Valley Wine Company family based in Hammondsport. If you happen to be in the vicinity, I strongly advocate for a visit to appreciate the scenery and ambiance. Learn more about them here and discover the best wine trails around Seneca Lake here.

Understanding 529 Plans

Transitioning our attention to the focal point of this article - 529 plans. These plans serve as a vital instrument for college savings, yet it's imperative to avoid overfunding them. Contributions to 529 plans are facilitated with after-tax dollars and flourish tax-free. Withdrawals utilized for qualified education expenses are also exempt from tax. In certain states, like New York, tax deductions or credits are accessible for contributions to 529 plans. A notable merit of 529 plans is their negligible effect on financial aid eligibility, being categorized as a parental asset. In instances where the 529 plan is held by someone other than the parents or student, it might be excluded entirely.

Strategizing Contributions and Gift Tax Exclusion

When orchestrating contributions to 529 plans, awareness of the gift tax exclusion is vital. For 2023, the gift tax exclusion stands at $17,000, allowing anyone to bestow a gift up to this amount per annum to your child without triggering gift tax repercussions. Furthermore, direct tuition payments to colleges are unrestricted and can diminish taxable estates. Strategic planning of your contributions to 529 plans is essential, taking into account other savings avenues. Prioritizing retirement savings is prudent, as borrowing for retirement is not an option. A diversified investment approach, encompassing both 529 plans and conventional brokerage accounts, can facilitate a balanced strategy for college planning.

The True Cost of College

In the realm of college planning, recognizing that the advertised tuition rate may not be the final figure is crucial. A substantial number of students, even those hailing from families with incomes surpassing $200,000, do not bear the full price. A majority of colleges propose monthly payment schemes to assist families in managing education costs. Tailoring a 529 plan to your unique circumstances and seeking professional advice is vital. Early engagement with college financial aid offices can unveil valuable insights and aid in steering financial aid choices. Additionally, it's noteworthy that supplementary funds might become accessible later in the process, and alumni could offer scholarships for their offspring. Being vigilant of the concealed costs of college, which can accumulate, is essential.

Exploring Different Types of 529 Plans

In the context of 529 plans, distinguishing between the various types available is crucial. The primary categories are savings plans and prepaid plans. Savings plans operate akin to other investments, fostering the growth of your savings over time. Conversely, prepaid plans permit you to secure current tuition rates. Private savings plans are crafted specifically for private colleges, while state plans offer prepaid options as well. Adapting your strategy to your circumstances and evaluating all potential options, including brokerage accounts, is vital when saving for college.

Understanding the Cost of Prepaid Plans

The pricing of prepaid plans fluctuates based on elements such as your child's age and the duration of your savings period. Unit plans, for instance, enable the purchase of fractional units redeemable in the future. A thorough analysis of all options, weighing the pros and cons, including potential returns and investment flexibility, is essential. While 529 plans present tax benefits and serve as a potent tool for college planning, exploring other savings prospects and investment avenues to ensure a comprehensive approach is crucial.

Conclusion and Future Outlook

To conclude, 529 plans stand as a potent tool in college planning, offering tax benefits and adaptability. However, approaching them with a discerning eye and not relying on them as the sole college savings mechanism is vital. By diversifying your investments and exploring other savings prospects, like regular brokerage accounts, you can craft a holistic strategy for financing your child's education. Engaging early with the college financial aid office and investigating all scholarship and financial aid opportunities is also key. As college costs escalate, staying abreast of developments and modifying your college planning strategy is essential.

Looking ahead, the dynamics of college planning are set to evolve continually. Keeping pace with regulatory changes and uncovering new avenues for education funding is vital. By adopting a proactive stance and seeking expert guidance, you can navigate the intricacies of college planning, securing a promising future for your child. Here's to a triumphant journey in college planning!

Thank you for joining us on Wine and Dime. If this podcast resonated with you, we encourage you to share it with your friends and family. We'd appreciate your support in rating us on iTunes to help others discover us. A heartfelt thank you to TJ Meehan at Meehan Media for his expertise in production. Until next time, cheers!

This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting or you're looking to make a big change, Rooted Planning Group can help.

Visit www.rootedpg.com to learn more.

Exploring the Changes in FAFSA: A Comprehensive Guide

Welcome back, Wine and Dime listeners! In this four-part series on college planning, we have been discussing the major changes coming to the Free Application for Federal Student Aid (FAFSA). In part one, we explored college savings options, and in part two, we delved into ten changes to the FAFSA. Today, in part three, we will continue our discussion on the FAFSA changes, focusing on income and other factors that will impact students and their families.

But before we dive into the details, let's take a moment to appreciate the beauty of the upcoming fall season in upstate New York. As the fall colors start to grace our surroundings, I am reminded of the stunning landscapes in the Adirondacks. However, it's important to remember that we live in an equally beautiful area. So, why not act like a tourist in our own backyard? I am excited to explore the east side of Seneca Lake and visit Silver Thread Winery. If you have any recommendations or information about this winery, please let me know. Now, let's shift our focus to the changes in the FAFSA process.

Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!

If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

Or visit us at www.rootedpg.com/podcasts for full show notes and links!

Key Takeaways:

  1. The Income Protection Allowance will increase by about 20% for parents and 35% for dependent students.

  2. The allowance for state taxes is going away, resulting in an increase in overall income.

  3. The Employment Expense Allowance is being adjusted to allow married couples with only one working spouse to qualify.

  4. Students who can't provide their parents' financial information can now file as a provincial independent student.

  5. Reporting for two household families will require information on both parents and spouses who provide the majority of the student's financial support.

Key Changes

  • Income Protection Allowance increasing, but multiple students in college no longer a factor

  • Employment Expense Allowance tweaked - now calculated based on total family income

  • Option for students unable to provide parent info; can file as Provisional Independent

  • New formula for reporting income if parents are divorced/separated

  • Changes already enacted: Pell Grants for incarcerated students, required disclosure of aid adjustments

Timeline and Effects

  • FAFSA available starting in December 2023, not October

  • Delayed timeline could impact acceptance letters, grant deadlines, award letter timing

  • Steps to take: Use Estimator Tool, get FSA ID, check college websites for updates

Winery Recommendation

Host Amy Irvine recommends visiting Silver Thread Vineyard on the east side of Seneca Lake in the Finger Lakes region.

Founded in 1982, Silver Thread is an owner-operated, boutique winery known for sustainably-grown estate wines. Acclaimed winemaker Paul Brock and wine educator Shannon Brock took the helm in 2011 and practice a holistic, regenerative style of farming called biointensive viticulture. The winery generates 100% of its energy needs from a 28kw solar array located on-site.

Silver Thread produces about 3,000 cases annually of premium vinifera wines like Riesling, Chardonnay, Cabernet Franc, and Lemberger. Wines are available in their relaxed tasting room, through the wine club, via mail order, and in select stores and restaurants.

The winery is tucked away off the main wine trail, overlooking Seneca Lake. Wine lovers will enjoy discovering this hidden gem and sampling outstanding, terroir-driven wines that capture the essence of the Finger Lakes.

Silver Thread is still being written - the team is constantly learning, improving their sustainable practices, and applying new knowledge. Thanks for joining their journey!

Conclusion and Future Outlook

In conclusion, the changes to the FAFSA process under the FAFSA Simplification Act will have a significant impact on students and families. While some changes, such as the increase in the Income Protection Allowance, provide relief, others, like the reporting requirements for two-household families, pose challenges. The expansion of the professional judgment process and the eligibility of incarcerated students for Pell Grants aim to provide more equitable opportunities for students. However, the delayed availability of the FAFSA this year may create additional stress and time constraints for families.

As we move forward, it is crucial for families to stay informed and prepared. Utilizing available resources, attending informational sessions, and staying updated on deadlines will help navigate the changing landscape of college planning. While the FAFSA changes may present initial difficulties, they also offer an opportunity for families to gain a clearer understanding of the true cost of education and explore available financial aid options.

Thank you for joining me on this journey through the changes in the FAFSA process. I hope this comprehensive guide has provided valuable insights and guidance. If you found this information helpful, please share it with your friends and family. Your support and feedback are greatly appreciated. Cheers to a successful college planning journey!

This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.

Visit www.rootedpg.com to learn more.

Top 10 Changes to the FAFSA for the 2023 - 2024 FAFSA Season

Welcome back to another episode of Wine and Dine! In today's discussion, we will be diving into the changes in the Free Application for Federal Student Aid (FAFSA). As a financial planner, it is my goal to provide you with valuable information that can help you navigate the complexities of college planning. So grab a glass of wine, sit back, and let's explore the recent updates to the FAFSA.

Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!

If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

Or visit us at www.rootedpg.com/podcasts for full show notes and links!

Introduction

The FAFSA is a crucial tool for families seeking financial aid for college education. It helps determine the expected family contribution (EFC) and the amount of financial aid a student may be eligible for. In this episode, we will be focusing on the changes in the FAFSA, including the transition from EFC to the student aid index, the shorter FAFSA form, and the impact on small businesses and farms. We will also discuss the expansion of the Pell Grant and the changes in reporting assets and income. So let's dive right in!

Key Takeaways:

  1. The FAFSA is transitioning from the expected family contribution to the student aid index.

  2. The FAFSA form is getting shorter, reducing the number of questions.

  3. Small business and farm owners will now have to report the value of their businesses on the FAFSA.

  4. The student aid index can be below zero, allowing for more financial aid for needy students.

  5. The Pell Grant formula is linked to family size and the federal poverty level, providing additional funding opportunities.

  6. Families with an AGI up to $60,000 will not be required to report assets on the FAFSA.

  7. Contributions to pre-tax retirement plans will no longer be added back to AGI for FAFSA calculations.

  8. Child support received will no longer be added to income, but the amount will be added to non-retirement assets.

  9. Financial help from family members or friends will no longer be considered untaxed income for students.

  10. Funds used from a grandparent-owned 529 plan will not be considered untaxed income for students.

Adirondack Winery

Adirondack Winery, nestled in the scenic beauty of Lake George and the Adirondacks, is a testament to the passionate pursuit of Mike & Sasha Pardy. Starting as a micro-winery in 2008, their dedication has transformed it into a renowned establishment with a state-of-the-art $2.6 million Tasting Room and Winemaking Facility in Queensbury. Throughout the years, they've seamlessly combined traditional wine-making with innovative techniques, resulting in award-winning wines that showcase the region's charm. With a history rich in family, innovation, and a dedication to excellence, Adirondack Winery invites you to be a part of their wine journey. Discover more and plan your visit at https://www.adirondackwinery.com/

Conclusion and Future Outlook

In conclusion, the changes in the FAFSA aim to simplify the application process and provide more accurate financial aid assessments. While some changes may pose challenges for families, such as the inclusion of small businesses and farms in the formula, there are also opportunities for families to strategically manage their assets and increase their eligibility for financial aid.

As the FAFSA continues to evolve, it is essential for families to stay informed and seek professional guidance to navigate the complexities of college planning. By understanding the changes in the FAFSA and exploring the planning opportunities they present, families can make informed decisions and ensure a smoother path to funding their children's education.

Remember, college planning is a journey, and with the right knowledge and resources, you can navigate the financial vineyard and craft a delicious life for yourself and your loved ones. Cheers to a fruitful future!

Links for more information:

The FAFSA Simplification Act - Upcoming FAFSA Changes - College Aid Pro - B2C

A New FAFSA Form Is Coming, Along With Changes in College Aid - The New York Times (nytimes.com)

This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.

Visit www.rootedpg.com to learn more.

College Planning Fundamentals: Terminology and Financial Aid Tips

Welcome to Wine and Dime, where we explore the intersection of wine and finances. In this series on college planning fundamentals, we will delve into the terminology and strategies that can help you navigate the complex world of college planning. Just like a fine wine, college planning requires careful consideration and aging to achieve the desired outcome. So, grab a glass of your favorite vintage and join me on this journey of financial education.

Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!

If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

Or visit us at www.rootedpg.com/podcasts for full show notes and links!

Key Takeaways:

  1. Define your college funding goals and prioritize them based on timing and resources.

  2. Fill out the FAFSA form even if you don't think you qualify for financial aid.

  3. Need blind colleges consider a student's ability to pay tuition cost in the admissions decision.

  4. Merit scholarships are based on a student's merit and do not need to be repaid.

  5. Parent PLUS loans can bridge the gap between need-based aid and family resources.

Quotes:

  • "You can borrow for education, but you can't borrow for retirement."

  • "Don't assume anything. Fill out the FAFSA form."

  • "Merit scholarships are based on the student's merit and do not need to be repaid."

  • "Parent PLUS loans are taken by the parent and often close the final gap between need-based aid, merit scholarships, and family resources."

Exploring the Vineyards of Shaw Vineyard

Before we dive into the intricacies of college planning, let's take a moment to appreciate the beauty of the vineyards. Shaw Vineyard, located on Seneca Lake, is known for its dedication to aging their wines. Their reds spend five or more years in the cellar before they are bottled, resulting in a rich and flavorful experience. They also offer a unique blend called the Cuca Hill Reserve, which combines Merlot, Cabernet Sauvignon, and Cabernet Franc. I am eager to explore this winery and discover the nuances of their wines. If you have had the pleasure of trying Shaw Vineyard's wines, I would love to hear about your experience. And if you find yourself in the Finger Lakes area, I encourage you to visit and embark on your own wine adventure.

The Five Essential Steps of College Planning

Now, let's shift our focus to the topic at hand: college planning fundamentals. It is important to approach college planning with a clear understanding of your goals and priorities. Defining your goals involves determining how much responsibility you and your child will have in funding their education, as well as considering other financial goals that may require attention. It is crucial to establish a timeline for each goal and anticipate any potential detours along the way. By mapping out your college planning journey, you can create a comprehensive and adaptable plan that aligns with your family's unique circumstances.

The Power of Savings: Understanding 529 Plans

When it comes to saving for college, 529 plans are a popular choice. These education savings plans offer tax advantages and can be customized to suit your needs. There are different types of 529 plans, including savings plans, prepaid plans, and private plans. A savings plan allows you to invest money that will grow over time, while a prepaid plan involves prepaying the cost of education within your state's system. Private plans, on the other hand, provide the flexibility to save for private school education. It is important to consider your family's situation and consult with a financial planner to determine the best approach for your college savings.

Navigating the FAFSA: Your Gateway to Financial Aid

The Free Application for Federal Student Aid (FAFSA) is a crucial step in accessing financial aid for college. Regardless of your financial situation, it is essential to complete the FAFSA to determine your eligibility for various forms of aid. Filling out the FAFSA opens the door to institutional aid, academic scholarships, and federal loans. It is important to note that the FAFSA includes the student's name and may require reporting of the parents' assets, excluding retirement assets, the value of the home, and life insurance. However, some colleges may require additional information through the CSS profile, including the cash value of life insurance. To ensure a smooth FAFSA process, consider working with a financial planner who can guide you through the application.

Need-Based Aid vs. Merit Scholarships: Understanding the Difference

Financial aid can come in various forms, including need-based aid and merit scholarships. Need-based aid is determined by the academic institution and is based on the student's financial need. It may include loans, tuition reductions, or work-study opportunities. Merit scholarships, on the other hand, are awarded by colleges based on the student's academic achievements and do not need to be repaid. It is important to explore both need-based aid and merit scholarships to maximize your financial resources for college.

Federal Student Loans: A Tool for Financing Education

Federal student loans can be a valuable tool for financing education. Undergraduate students can borrow a maximum amount each year, depending on their dependency status and whether they qualify for subsidized or unsubsidized loans. Subsidized loans are based on financial need and do not accrue interest until after graduation, while unsubsidized loans accrue interest from the day they are dispersed. Parent PLUS loans are another option for closing the gap between financial aid and tuition costs. It is important to understand the terms and conditions of federal student loans and consider them as part of your overall college financing strategy.

The FAFSA Simplification Act: Changes on the Horizon

The FAFSA Simplification Act, set to take effect in 2024, will bring significant changes to the college financial aid landscape. These changes aim to simplify the FAFSA process and provide more transparency in determining financial aid eligibility. It is crucial to stay informed about these changes and their potential impact on your college planning. In our next episode, we will delve deeper into the FAFSA Simplification Act and explore its implications for families navigating the college planning journey.

Conclusion: Nurturing the Vines of Financial Success

College planning is a complex and multifaceted process that requires careful consideration and strategic decision-making. By defining your goals, exploring savings options, understanding the FAFSA, and navigating financial aid opportunities, you can set the stage for a successful college experience. Remember, college planning should be customized to your family's unique circumstances, and seeking guidance from a financial planner can provide invaluable support along the way. So, raise a glass to the journey ahead and toast to the fruitful vines of financial success.

Thank you for joining me on this exploration of college planning fundamentals. I hope you found this episode informative and insightful. If you have any questions or would like further guidance on college planning, please reach out to us at Rooted Planning Group. Cheers to a bright future!

This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.

Visit www.rootedpg.com to learn more.

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