Let's say you've done everything by the book, financially speaking. You don't overspend, put aside money for retirement, come up with a budget before making any big purchases, and have savings set aside for a rainy day. But despite your best efforts, you may sometimes sense the "What If Monster" rearing up, asking questions like, "What if I get sick and can't afford my medical bills?" or "What if I get laid off?" The fact is that everyone's life situation keeps changing. People get married and divorced. Kids go off to college and start living their own lives. People get sick and require home health care.

All these events can be emotionally and economically draining. And at times, they might require you to develop a new strategy that suits your needs. In such situations, conducting a thorough financial plan review is essential.

Signs That Your Financial Plan Is Outdated

You will usually know that your money management plan is outdated because your "What If Monster" will rear up. The "What If Monster" is your friend; it's just there to highlight when a financial refresh is needed. Here are some indications that your personal financial roadmap is no longer current:

• Your income has increased, but you seem to be spending more rather than saving more.
• Using your savings for everyday expenses.
• You're not sure where you're spending your money.
• There are changes in your life situation, and you no longer want what you wanted five or ten years ago.
• You simply haven't looked at your cash flow plan for over five years.
• The strategy you're using for monetary allocation is not helping you reach your goals. This could be because you copied someone else's investment strategy, but they have different goals.

Why Are Regular Financial Reviews Important?

You might contact your investment manager when you feel your wealth management plan is outdated. However, doing so is fine even if you have no money problems.

If you have certain future plans, such as buying a home, having a child, or starting a business, speaking to your advisor first makes sense. This way, you can determine if this is a good time to implement those plans. If not, you can also get some advice about what changes you must make before moving towards your life goals.

In short, a financial plan review is beneficial not only if you're having problems but also if you want to ensure that your economic situation will support the life changes you have in mind.

What Does a Financial Plan Review Include?

So maybe you're ready to quell the "what if monster" by speaking to your wealth manager and adjusting your money management plan to suit your current life goals. Here are certain things that your financial plan review may cover:

• Income: Go over any changes in income, such as if you've changed jobs, received a promotion, been laid off, etc.
• Assets/Investments: Evaluating your assets and investments. Are your investments performing as well as expected? Are your assets increasing or decreasing in value?
• Debt: Discuss whether you are in debt and come up with a debt repayment strategy.
• Goals: Your financial consultant will also ask about your future goals and whether you plan to make any life changes. If so, they will help you adjust your cash flow plan to meet those goals.
• Insurance: A financial strategy also involves an overview of insurance coverage to ensure all your policies meet your needs.
• Retirement Planning: Considering pension plans and how much you are contributing towards them is also included in the examination.
• Estate Planning: Wills, trusts, and powers of attorney are all included in the assessment.

Take Control of Your Future Today!

Keep in mind that a personal financial roadmap is not a static thing. It's something that needs to grow and develop along with growth and development in your life. As your life situation changes, so should your investment philosophy.

Whether the changes come from the outside, in terms of market fluctuations, or from the inside, in terms of changes in your life goals, going over your investment strategy can help. Contact us at CrossleyShear for a financial plan review that focuses on making the best of your finances and your life.

Receiving an unexpected bequest of wealth can bring up a whirlwind of emotions like gratitude, grief, and even anxiety. When it's incidental, you won't have a prepared strategy, let alone an inheritance management plan for what to do with it. Even if you know it's coming, having a plan ready for when it arrives can be challenging.

This confusion can cause the “What If Monster” to start stirring thoughts in your brain. "What if I inherit money and don't know what to do?" You might be concerned you'll make the wrong decision and waste a once-in-a-lifetime gift if you don't feel prepared to take on a large sum of money.

You can rest easy knowing that you don't need to have all the answers right now. All it takes is a thoughtful plan and some expert guidance, and you can make the most of your inheritance.

Breathe Before Acting

If an estate is thrust upon you, you might feel like you need to make a quick decision. Unless you are in financial distress that the legacy could fix, the best thing to do is to wait and focus on inheritance management. Take some time to let your emotions settle, understand what the legacy includes and whether any regulations or conditions apply, and determine any legal requirements or tax implications. Allowing yourself to breathe helps you decide with clarity.

Understanding Your Inheritance

How you spend your bequest depends on the type of assets that are included. You might have been given cash, retirement accounts, real estate, or business interests.

While cash is potentially the easiest to spend, it still requires setting a strategy for inheritance management. If you receive retirement accounts, you need to consider tax and distribution rules. Finally, real estate/business interests require decisions about managing, selling, or transferring ownership. Once you know your type of endowment, you can make the best strategy for it.

Learning to Avoid Common Emotional Traps

When you receive an estate, you might be overwhelmed by pressure, guilt, or a sense of responsibility to do "something big." It can be too easy to allow yourself to fall into emotional decision-making, like giving away a bunch of money without thought or rushing into investments.

You need to take time to decide how you want to spend the money. After all, it was left to you. Process the loss that led to receiving an estate, and remember that it was meant to benefit you, not burden you.

Coming Up With a Plan to Honor Your Goals and Theirs

While the money is ultimately yours to spend, if you want the spending to honor the person who left it to you, that's a valid option. Working with a financial advisor will allow you to create a strategy that helps with your current needs and long-term goals and honors the person who left it to you if that's what you desire.

Your plan might include things like paying off debt, investing, saving for retirement, giving to worthy causes, or helping your family's future, among other things. Remember, while there is no "right" way to use your inheritance, there are thoughtful ways.

Quieting the “What If Monster”

If you've recently inherited money or know you will be soon and aren't sure what your next steps are, take solace in knowing you are not alone. The best thing you can do is ask for guidance. At CrossleyShear, we can help you navigate inheritance management with compassion, clarity, and strategy.

Remember, you don't get financial confidence by having all the answers. It comes when you know who to turn to when you have questions.

Let's start the conversation. Get in touch with us today.

Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Dale Crossley and Evan Shear and not necessarily those of Raymond James.

You are just about to drift off, and it happens - the" What If Monster" is here with a nagging yet crucial question - What if my adult children need financial help? The cost of living is at an all-time high, and no parent wants to see their child struggling. Unexpected medical bills, job loss, student debt, and rising costs can lead even the most independent people to need occasional help. With 50% of parents assisting adult children, there is a strong urge to step in. However, before you invite the "What If Monster" to keep you up at night, let's discuss approaching this delicate situation with heart and clarity that protects your financial future.

It's Normal to Want to Help, But It's Okay to Set Boundaries

It's natural to want to help when your child has difficulties. However, you must think about your financial future. By allowing your adult child to foster their economic independence through budgeting and setting clear expectations, you can provide them with the assistance they need while setting boundaries.

Start With a Conversation, Not a Check

You don't have to immediately reach for your checkbook the second your child asks for monetary assistance. Pause first and try to understand their situation.

Is This a One-Time Emergency or a Recurring Issue?

Sit down with your child and ask them questions. Did an unexpected emergency come up, or will they need financial help every month? Ask them to explain the situation. Did their car break down, or will they need help paying their rent every month? Subtly explain the difference between a one-time emergency and a recurring issue. While just about everyone has the occasional unexpected expense, a recurring issue is the first indication that your child may be living above their means.

Are They Looking for a Short-Term Loan, a Gift, or Advice?

Find out what your child's expectations are. Do they plan on paying the money back within a few weeks, or do they consider the funds a gift? Maybe your adult child isn't asking for money, but they just need some better advice on managing their finances. You not only have to think about what is right for them, but yourself as well. Remember that gifts of $18,000 or less per recipient fall under the annual "gift exclusion" for tax purposes .If your gift exceeds that, it must be reported to the IRS. When it comes to loans, even between family members, the IRS mandates that any loan between family members be made with a signed written agreement, a fixed repayment schedule, and a minimum interest rate.

What's the Long-Term Plan for Getting Back on Their Feet?

An honest, judgment-free conversation can help you determine the best, most sustainable way to assist—without enabling unhealthy patterns or draining your resources. Don't be afraid to ask your child what their long-term plans are. It's easy for adult children to assume their parents have unlimited funds. However, you know that this is not the case. Is your child planning on restructuring their finances so that they can get back on their feet? Perhaps he or she is looking for a side job or finding ways to cut back on unnecessary costs like refinancing a car loan, consolidating debt, or shopping around for better deals on required services.

Ask Yourself: Can I Afford to Help?

Helping shouldn't come at the cost of your financial security. Here are some eye-opening questions to get you started:

• How will helping them affect your retirement plan, 401(K), or emergency savings?
• Are you dipping into funds meant for long-term goals, healthcare needs, or other necessities?
• Do you have other children to support or responsibilities to balance, and don't want to get behind on your bills?

The golden rule: Don't sacrifice your financial future to fix someone else's present. A trusted financial advisor can help you assess what's realistic and healthy for both sides.

Ways to Help Without Writing a Blank Check

You don't always have to hand money over. There are other ways to help. Consider these thoughtful, strategic alternatives:

• Offer to cover a specific expense - Perhaps you can pay this month's rent or buy groceries this week rather than just giving a random amount.
• Help create a budget or financial plan - This helps with economic independence.
• Co-sign with caution. Know the risks if you're asked to co-sign a loan. Read and understand the terms, and make sure your child will be able to make payments.
• Gift wisely - Use annual gift tax exclusions and document everything clearly.
• Connect them with a financial advisor - This guides them toward sustainable decisions.

Strengthen Your Financial Future: Keep the What-if Monster Quiet With a Plan

Every parent wants to help their children, but you must do so without risking your peace of mind. The best way to quiet the "What If Monster" is with a thoughtful, proactive plan that considers your goals, protects your financial future, and offers the support your children may need.

If you've been thinking about what will happen if your adult child needs monetary assistance, we're here to help you explore the right approach. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. We can help you plan how to structure financial gifts, adjust your retirement strategy, or set expectations. We can work together to find a path that supports everyone - eliminating those sleepless nights.

At Crossleyshear, we dedicate ourselves to helping you learn how to support your family while staying secure in your own future. Contact us today for more information.

Any opinions are those of Dale Crossley and Evan Shear and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions, or forecasts provided in the attached article will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Right now, the 'What-if Monster' is tariffs.These import duties have hit the news lately, with the U.S. frequently inflicting and then removing (and then inflicting again) these taxes. This has led to uncertainty and a fear of what these levies might do to the economy. Let's break down what tariffs are, their potential impact, and what you can do to stay financially confident.

What Are Tariffs, and Why Do They Matter?

A tariff is a tax imposed on imported goods. It is typically a percentage of the good's value, which can be very high. Governments may use import taxes to encourage and support domestic production, protect a specific industry, or as a negotiating tool. These levies may apply broadly or be restricted to a specific product or country.

They do have strategic purposes, but can also trigger some problems, including:

1. Higher costs for consumers. The country of origin doesn’t pay the tariff—the importer does, and these costs are often passed on to consumers. It doesn't mean that a 25% tariff results in a 25% increase in cost; it depends on various factors, and the price increase can be lower or higher.
2. Disruptions in supply chains. Tariffs also affect the cost of components used in manufacturing, potentially disrupting supply chains. Typically, a country will retaliate against the impact of tariffs by levying its own, which can become a real issue if a part crosses the border and the final product crosses. Companies may try to source from areas unaffected by the tax, but their costs may increase and slow down shipping.
3. Market volatility. They induce uncertainty and can easily result in fluctuations in the stock market, affecting the value of investments.
4. Economic slowdown. Extended tariffs, reciprocal tariffs, or all-out trade wars can slow or even reverse economic growth, causing issues for everyone. These can also cause manufacturers to leave the country, resulting in job losses.

Should You Be Concerned About the Impact of Tariffs?

These taxes can be scary, and uncertainty about these fees can be even worse. The impact of tariffs in the past has been highly variable, depending on how they are implemented and how businesses and governments respond.

In the past, markets have adjusted over time, resulting in only short-term disruptions. You should not think about them when investing for the long term, thinking of these points:

1. Markets have weathered similar policies before. The broader economy will adapt, although inflation may have a long-term impact.
2. Diversify to mitigate risk. The more diverse and balanced your portfolio is, the less it will be affected by any policy change or global event.
3. Consumer demand and business innovation play an essential role in adapting to tariff changes. Companies change supply chains, develop alternative strategies, and adjust pricing to stay profitable.

The impact of tariffs may also be short-term if they are used in negotiation. These taxes might be placed for a few days or weeks and then removed.

Keeping the "What-if Monster" Quiet

Don't let fear drive your decisions. Focus on the long-term and keep your investments diverse. Avoid making rushed decisions based on short-term tariff impacts. Instead, mitigate risk by maintaining a well-diversified portfolio.

Economic policies, including tariffs, will constantly shift over time. A diverse portfolio can weather any of these storms, so make sure you are using a sound investment strategy so the "What-if Monster" doesn't keep you up at night.

If you are worried about the impact of tariffs on your portfolio and financial plan, contact CrossleyShear today. Let us review your portfolio and help you adjust things so you can navigate the current economic uncertainty and maintain financial security in the long term.

Any opinions are those of Dale Crossley and Evan Shear and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions, or forecasts provided in the attached article will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification. 

When planning for your retirement, there are two types of independent retirement accounts (IRAs). A traditional IRA receives pre-tax income, and you are taxed when you withdraw or receive distributions later on. You are also taxed on any accumulated funds from interest and investments, as income tax is applied to any funds removed from the IRA.

A Roth IRA receives post-tax money, so withdrawals and distributions are neither taxed nor treated like income for your income tax bracket.  Many would prefer to use a Roth IRA to control tax, revenue, and earnings. Especially since you can withdraw anytime, and there are no mandatory minimum distributions after retirement age. However, with the income bracket limitation, Roth IRAs are typically unavailable to individuals or spouses with an income that is too high.

Fortunately, there is a way around it called a backdoor Roth IRA.

What Is a Backdoor Roth IRA?

A "backdoor" Roth IRA allows you to transfer the balance of a traditional IRA or 401(k) to a Roth IRA without consideration for the income level restriction. This will enable people and couples with a high-income bracket to access the financial conveniences of a Roth IRA, even if your annual income is above the restricted level.

• 2024 Roth IRA income limitations are $146,000 for single filers and $230,000 for married couples filing jointly.
• 2025 Roth IRA income limitations are $150,000 for single filers and $236,000 for married couples filing jointly.

You will pay taxes on any pre-tax funds from the traditional IRA. However, as soon as your IRA funds become part of a Roth IRA, you can manage your principal, interest, and earnings in the Roth fashion without a traditional IRA's unique limitations and requirements.

Why Pursue a Backdoor Roth IRA?

• Interest and Investment Earnings
  • With a traditional IRA, earnings from interest and investments are taxed as income when distributed because the principle is pre-tax. Once the funds have entered a Roth IRA, your earnings grow tax free.
• 5 Year Access
  • Five years after you convert an IRA to a Roth IRA, you have full access to your funds without an age or distribution limitation. If the timing is right, this can also mean earlier access to IRA funds before your retirement age.
• No Mandatory Minimum Distributions
  • A Roth IRA does not have mandatory minimum distributions, so you can conserve or withdraw as you see fit for the duration of your life.
• Lesser Tax Burden
  • In general, paying one-time taxes on IRA income converted to a Roth IRA results in a lower overall tax burden than paying income tax on the IRA distributions later on.

Tax Pitfalls to Watch Out For

One of the most important things to be aware of is the potential for mistakes when performing this complex tax-related financial maneuver. Using a backdoor Roth IRA can benefit your long-term financial planning, but you'll want to do it right and avoid possible pitfalls.

• Income Tax on Transfer
  • Remember that all pre-tax funds removed from an IRA or 401(k) will go through a tax cycle during the transfer.
• Income Bracket
  • This transfer can change your income tax bracket.
• IRA Capital Gains
  • Transfer sooner rather than later to reduce the tax burden on IRA capital gains regarding interest and investments.
• One-Time Conversion
  • The backdoor Roth IRA transfer is not a one-time thing. Continue to make routine conversions to minimize taxed earnings.

Consult With Your Financial Advisor

To get the best tax advantage and control over your retirement finances, plan your backdoor Roth IRA conversion with the help of your skilled financial advisor. We are proud to provide insight and a detailed understanding of retirement financial management to help you achieve this unique and beneficial maneuver and get the most from your retirement plans. Contact us today to explore the best financial strategies for your retirement.

Any opinions are those of Dale Crossley and Evan Shear and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions, or forecasts provided in the attached article will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification. 

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Unless certain criteria are met, Roth IRA owners must be 59 1/2 or older and have held the IRA for five years before tax-free withdrawals are permitted. Additionally, each converted amount may be subject to its own five-year holding period. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion.