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Fatherly Advice: 6 Timeless Financial Tips Our Fathers Taught Us

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Although many things have changed in the financial world over the past 20 years, some nuggets of financial advice are timeless. Here are a few tips that have remained constant for several generations.

Always Spend Less Than You Make

Wealth creation is not about how much you earn. It is about how much you save.1 Spending more than you make incurs debt that you must repay with interest. Spending less than you make allows you to earn money through your investments.

Pay Yourself First

Have money automatically deducted from your paycheck and deposited into retirement accounts such as a 401(k) or 403(b) plan or an individual retirement account (IRA). The average employer and employee contribution rate is about 14%.2

No One Ever Got into Trouble by Borrowing Too Little

Or said in another way, investors may get rich, but borrowers usually stay poor.3 America has two financial escalators. Investments, such as stocks and real estate, are the escalator that may move you up. The down escalator is debt, such as high-interest credit cards and payday loans. Do not go into debt to buy things you do not need.

Buy a Home

Homeowners have a median net worth of 40 times that of renters. In other words, the median net worth of homeowners is $255,000 versus 6,300.4

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Three Massive and Often Hidden Costs of Divorce

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Divorce, while an emotionally taxing experience, also comes with several financial implications that, if not properly managed, could result in long-lasting financial strain. It's essential to understand these hidden costs to effectively navigate your post-divorce financial life. Here are three key areas where hidden costs often lurk: Health insurance, dividing retirement accounts, and transferring real estate and mortgage refinancing.

Health Insurance: The Unexpected Cost

It's a common scenario for one spouse to be covered under the other's employer-sponsored health insurance plan. Post-divorce, the covered spouse may no longer be eligible for this benefit, leading to a sudden, potentially significant, expense.

Cobra continuation coverage can extend benefits from an ex-spouse's employer's plan for up to 36 months. However, this coverage can be costly, as you would bear the entire premium cost plus a 2% administration fee. Alternatives include seeking coverage through your own employer or the Health Insurance Marketplace. Yet, these routes may also involve increased out-of-pocket costs or changes to your health care providers.

Additionally, consider potential changes to life insurance policies and disability insurance. It's essential to account for these potential changes early in your financial planning to minimize the financial impact.

Retirement Accounts: The Tax Trap

Dividing retirement accounts in a divorce can lead to substantial tax implications if not handled correctly. For instance, if funds are withdrawn from an individual retirement account (IRA) or a 401(k) without a Qualified Domestic Relations Order (QDRO), they may be subject to income taxes and a 10% early withdrawal penalty.

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Forbes Recognizes Joe Walsh Jr. As A Best-In-State Wealth Advisor

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Sarasota, Florida - April 09, 2024 - Joe Walsh, Jr., an independent LPL Financial Advisor in Sarasota, FL, has been recognized in this year’s list of the Forbes/SHOOK Best-in-State Wealth Advisors for his track record of success in the financial services industry. Walsh Jr., Founder, CEO, and Wealth Advisor of Walsh & Associates was recognized as the 9th advisor in the Tampa Area of Florida.

The annual list is compiled by Forbes with insights from SHOOK Research. Advisors are selected based on quantitative and qualitative data, and are assessed on a variety of criteria, including interviews, years of experience, compliance records and assets under management*.

"We are thrilled to extend our heartfelt congratulations to Joe Walsh Jr. for the well-deserved recognition from Forbes, on behalf of the entire team at LPL," exclaimed Julian Lopez, LPL's executive vice president of Independent Advisor Services Relationship Management. "This award showcases his dedicated efforts in guiding his clients towards financial success, especially during times of economic uncertainty and global challenges. LPL remains steadfast in our commitment to supporting ambitious advisors like Joe Walsh Jr., equipping them with cutting-edge investment solutions, advanced technology platforms, and extensive resources to provide unparalleled service and experiences for their clients."

Joe Walsh Jr. has 38 years of experience in the financial services industry and provides a full range of financial services for individuals, families and business owners; including retirement and financial planning, individual money management, individual stocks and bonds, alternative investments, mutual funds, annuities and more.

Joe Walsh Jr. is a financial advisor affiliated with LPL Financial, a leading wealth management firm that supports financial advisors—whether they work as independent business owners, with an RIA firm or in a financial institution—so they take care of their clients and run a thriving business.

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Wealth, Success, and Mental Health: Finding the Balance Between Healthy and Wealthy

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April marks Stress Awareness Month, which provides a great opportunity to shed light on a topic often overlooked in the world of high-net-worth investors, which is mental health. For anyone who is used to managing substantial wealth, the pressure to sustain success may take a toll on your mental well-being. Here are some of the mental health challe...

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Inflation and Its Impact on the Market and Portfolios

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Understanding the implications of CPI and PPI is crucial for investors. In the ever-evolving world of finance, staying abreast of economic indicators is crucial for  investors looking to make informed decisions. One such key indicator is inflation, which recently made headlines with the release of data in early January 2024. According to ...

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There's Still Time to Fund an IRA for 2023

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The tax filing deadline is fast approaching, which means time is running out to fund an IRA for 2023. If you had earned income last year, you may be able to contribute up to $6,500 for 2023 ($7,500 for those age 50 or older by December 31, 2023) up until your tax return due date, excluding extensions. For most people, that date is Monday, April 15,...

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Midyear 2023 Newsletter

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BENEFICIARY IRA RMD REQUIREMENT PUSHED AGAIN The SECURE Act of 2019 rewrote the rules for non-spouse beneficiaries who inherited IRAs in 2020 or later. While they used to be able to "stretch" their required minimum distributions (RMDs) from inherited IRAs over their lifetimes—thus stretching out the tax bills on their windfalls—the SECURE Act decre...

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2023 Newsletter

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SECURE 2.0 ACT CHANGES RETIREMENT SAVINGS The SECURE 2.0 Act of 2022, signed into law in December, brings dozens of changes intended to enhance Americans' retirement savings outlook.The main headliner has been the change to the Required Minimum Distribution (RMD) age: SECURE 2.0 pushed the RMD age to 73 for those born in 1951-1959 and 75 for those ...

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Joe Walsh's Fall 2022 ACE Sarasota Class Schedule

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Joe Walsh Jr is once again presenting financial literacy classes through Adult & Community Enrichment (ACE) at Suncoast Technical College. A program of Sarasota County Schools, ACE provides lifelong learning opportunities to meet the changing needs of the Sarasota community.

Joe is a volunteer instructor, so all registration fees go directly to ACE.

UPCOMING CLASSES:

Tues, Oct 18, 4:00 PM  |  Estate Planning Essentials: Where to Begin?
Estate planning is the key to making sure that everything you have worked for is passed on according to your wishes. These are difficult decisions, but if you don't make them, a court will.

Wed, Oct 26, 5:00 PM  |  7 Things To Do When Planning for Retirement
You’re in the home stretch of the race to retirement, but now is not the time to be complacent. Your retirement plan may need alterations. (…You do have a retirement plan, don’t you?) These seven to-do items will help you shore up your retirement plan so you can approach the finish line with confidence. 

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Second Quarter 2022 Newsletter

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BEAR WITH US There's a bear (market) with us. On June 13, the S&P 500 Index dropped -21.8% from its peak on January 3, officially pushing us into bear market territory. Marked by a -20% drop from a recent market high, bear markets set many investors on edge as economists begin catastrophizing about looming recessions, their doom and gloom ...

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Joe Walsh Named to Forbes Best-In-State Wealth Advisors 2022

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Walsh & Associates CEO Joseph Walsh was once again ranked among the Forbes Best-In-State Wealth Advisors for the third year in a row. Advisor rankings are based on quantitative and qualitative factors such as quality of assets under management; client retention and other client-related data; “best practices” within the advisor’s practice and approach to working with clients; and credentials. The Forbes Best-In-State Wealth Advisors 2022 spotlights more than 6,500 top advisors across the country who were chosen from almost 35,000 advisor nominations. Walsh ranked #13 out of 63 in the Tampa Area of Florida.

Walsh is pleased that his independent family firm is ranked alongside mostly multinational financial services companies, or what he calls “the big boys.” After all, Finance is Walsh’s second act; 40 years ago, he was a successful restaurateur entering the field of Finance simply to learn how to manage his restaurant’s profits. But with his newfound knowledge, Walsh became a go-to for friends and family with personal finance questions, who then told their friends and family to "go ask Joe—he'll know." In 1986, as word spread of his willingness to help others sort their financial lives, Walsh established Walsh & Associates for people seeking financial guidance without product or sales influence. The personal gratification he received as an advisor set him on a new path, and Walsh sold his restaurant in 1994 and turned his part-time wealth management business into his full-time career.

An even greater source of pride for Walsh than the recognition for simply doing what he loves is that he has been joined at Walsh & Associates by his three sons Joe III, Michael, and Tom. After 36 years, clients are still sending their friends and family to "go ask Joe," but they now also include “or Joe III, or Michael, or Tom.”

In addition to his role as advisor and CEO of Walsh & Associates, Walsh is a volunteer instructor for Adult & Community Enrichment (ACE) at Suncoast Technical College. His classes cover many of the same topics broached with clients, like Social Security strategies, estate planning and the transition to retirement. He also serves the Finance industry as a member of the Investments & Wealth Institute (formerly IMCA) Certification Item/Test Form Review Task Force.

Walsh has an MBA in Finance and CFP®, CFA®, CTFA, AIFA®, CRPC®* and CPWA® designations.

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2022 Retirement Plan Contribution Limits

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The IRS contribution limits for 2022 have ticked slightly upward from those of 2021; the maximum employee contribution to a workplace 401(k) or other qualified plan is $20,500 (plus a $6,500 catchup contribution if you are age 50 or older, for a total of $27,000). This limit is for employee elective deferrals and does not include any non-elective contributions or matching contributions made by your employer; the overall limit for 401(k) contributions including money from your employer or any other source rises from $58,000 to $61,000.

Check the chart below for contribution guidelines for other types of retirement plans.

 

Maximum workplace retirement plan contribution amounts

2022

2021

401(k), 403(b), most 457 plans and federal Thrift Savings Plans

$20,500 

$19,500 

Catch-up contributions in these plans for people 50 and older

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Third Quarter 2021 Newsletter

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WHAT'S ALL THIS "TAPERING" TALK? "Tapering" has been in the news lately, but what exactly is it, and why is it newsworthy? A quick review of some of the coronavirus-related monetary policy events may help in understanding how we got here:January 2020: A novel coronavirus reaches the U.S.February 2020: February 28, stock markets report their largest...

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Receive Unemployment Last Year? Prepare for the Tax Bill

We all know 2020 was an unprecedented year for job loss as businesses closed due to stay-at-home orders, loss of consumer spending or, at times, just out of an abundance of caution. From September 2019 to February 2020, the U.S. unemployment rate had been holding steady, hovering between 3.6 percent and 3.5 percent—its lowest since 1969.1 Then the coronavirus pandemic hit, and unemployment skyrocketed to 14.7 percent by April 2020.1

While many Americans have regained employment—in January 2021, joblessness was down to 6.3 percent2—those who received unemployment insurance in 2020 may be facing another unexpected financial burden in the coming weeks: a surprise tax bill.

Are Unemployment Benefits Taxed?

Unemployment benefits are taxed as income not only at the federal level, but also by most states: AZ, AR, CO, CT, DE, DC, GA, HI, ID, IL, IN*, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, NE, NM, NY, NC, ND, OH, OK, OR**, RI, SC, UT, VT, WV, and WI all impose income tax on unemployment benefits.3 There are no additional FICA (Social Security and Medicare) taxes owed on unemployment benefits.

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