Teach Children the Value of Money

3 Tips to Help Children Learn the Value of Money

🤍 Give them the opportunity to earn money.

Earning and managing their own money (from paid chores or jobs) is a great way to begin to understand its value. We have basic, non-paid chores (ex. cleaning the room) + extra, paid chores (ex. yard work).

🤍 Name the dollar amount that you are willing to pay for necessities. If they want to spend more, they can choose to pay the difference.

This helps children start to weigh whether they want the trendy, overpriced item. Let them splurge and see if it was worth it to them.

🤍 Let them make mistakes.

You don’t want their first money mistakes to come when they are away at college. Let them make mistakes now while the mistakes are small.

What have you done that has worked for you?

Photo description - One child spending her own money at Starbucks. My husband and I went with her and bought nothing (overpriced coffee!) but she wanted something and treated herself.

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.

Retirement Savings Options for the Self-Employed

Yes! You can still save for retirement when you are the boss. Here are your options:

IRA or Roth IRA

Number of Employees: Not applicable; these are individual plans.

Who contributes?: The individual.

Contribution limit: Up to $7,000 in 2025 + $1,000 catch-up contribution for those age 50 or over.

Pro: Simple to open and manage, cheap to maintain.

Con: Low contribution limit. Once your income grows, you will want to graduate to other options with higher contribution limits. Note - there are income limitations you need to be aware of that may disqualify you from both saving to a Roth IRA or being able to receive a tax deduction on your Traditional IRA contribution.

Simplified Employee Pension (SEP) IRA or Roth SEP IRA

Number of Employees: Any number

Who contributes?: The employer only.

Contribution limit: The lesser of $70K in 2025 or up to 25% of compensation or net self-employment earnings. The 2025 limit on compensation is $350K.

Pro: Simple and cheap.

Con: It may not be the best plan if you have high employee turnover. Employees are 100% vested in the SEP-IRA immediately, and you must contribute the same percentage to everyone eligible (including you).

Simple IRA

Number of Employees: Up to 100

Who contributes?: The employer and the employee.

Contribution limit: Employees can save up to $16,500 in 2025 (plus a $3,500 catch-up contribution for those age 50 or over). An employer can choose to either make a dollar-for-dollar match of up to 3% of the employee's pay or contribute 2% of compensation, whether the employee contributes or not. New with the Secure Act 2.0 - employees aged 60-63 have a higher catch-up contribution of $5,250.

Pro: Simple and cheap.

Con: Employees are 100% vested in the Simple IRA, so again, this may not be the best plan if you have high employee turnover. The contribution limit is also lower, so it is not the best option if you are making a high income.

Individual 401k or Individual Roth 401k

Number of Employees: Just the owner and their spouse.

Who contributes?: The owner and their spouse.

Contribution limit: Up to $70K in 2025 (plus a $7,500 catch-up contribution for those age 50 or over) or 100% of earned income, whichever is less. NEW - for those aged 60-63, the catch-up is $11,250 instead of $7,500 (Secure Act 2.0).

Pro: Cheap to set up and administer.

Con: You must file paperwork with the IRS each year once you have more than $250K in your account. 401k plan limits are per individual, not per plan, so if you maximize your savings to a 401k at work, you can not save to another solo 401k for a side gig earning money.

401k or Roth 401k

Number of Employees: Any number

Who contributes?: Employer and employees

Contribution limit: 100% of your compensation or $23,500 (plus that $7,500 catch-up contribution, if eligible), whichever is less. NEW - for those aged 60-63, the catch-up is $11,250 instead of $7,500 (Secure Act 2.0).

Pro: You can set up vesting schedules, as the employer, to encourage lower employee turnover, and employees can save more than they can in another plan.

Con: More administrative work and fees. Like above, 401k plan limits are per individual, not per plan, so if you maximize your savings to a 401k at work, you can not save to another 401k for a side gig earning money.

Originally published 1/2014

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.

 

Hi! I'm Linda, Owner of PWR.

Hi! 👋 I'm Linda, Owner of PWR.

I live in Coronado, CA, with my husband and four girls. We have lived in Pensacola FL, San Diego CA, Memphis TN, Japan, and Arlington VA - all for my husband's job as a Navy helicopter pilot.

I am a Jersey girl, and most of my family is still in Garden State. When I am not working, I take surfing lessons, play my acoustic guitar, read non-fiction, and try to outsmart the critters in my organic veggie garden.

I have been doing financial planning and investment management for 18 years. I offer two services:

(1) project-based financial planning and
(2) ongoing financial planning + investment management.

My typical clients are people who have never had a plan before, those who want a second opinion, and those who don't have time to manage their money anymore.

While I help with traditional investing, my specialty is people who want to do more with their money. They are thoughtful about the products they buy, the companies they buy from, and where they donate. Naturally, they want to be thoughtful about where they put their investment dollars.

I look forward to connecting with you this year.

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.

We SOLD a house for the first time, and I learned a lot...

#1 Real estate commissions are negotiable.

As the seller, you negotiate the commission upfront with your realtor. The buyer does the same and lists the commission their agent will receive in the offer letter.

We negotiated the buyer's agent commission to match our agent's commission of 2% (a family/friends discount), resulting in a 4% overall commission. 6% (3% split between the realtors) was the standard before the class action lawsuit against the National Association of Realtors (NAR) that settled in 2024. That 2% reduction saved us $24,000. 

#2 For the 2 of 5 years capital gains exception - there is a generous extension for active-duty military required to move due to orders.

The basic rule is that if you owned and used the home as your residence for at least 24 months of the last 5 years, you qualify for a capital gains exclusion (up to 250K single / 500K MFJ).

If you qualify, you can receive a 10-year extension (24 months of the last 15 years). Check out IRS publication 523 for the details and talk to your tax person if you think this could apply to you.

#3 Depreciation reduces your cost basis.

All the years we rented our house out, we got the benefit of taking depreciation to reduce our taxable rental income. Now that we have sold, that depreciation will reduce our cost basis on the home (increasing the gain).

#4 Our system for tracking capital improvements over the years was pretty organized, but I would make one change. 

Capital improvements (ex., kitchen remodel, new roof, new HVAC) increase the home's cost basis and reduce your tax bill.

I have a Box folder for every property we own. Anytime we do a capital improvement, I save the receipt in the appropriate folder. In the future, for Home Depot receipts, I will write directly on the receipt what the purchases were for (ex., bathroom remodel) before scanning them into Box. I had a lot of loose receipts in folders or envelopes, and that ended up being a messier process than I would like.

What else am I missing?

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.

Starting a New Business? Here is a checklist.

Are you thinking of starting a new business? This checklist guides you through what you need to know in order to get your new business up and running.

New Business Startup Checklist

Create your business plan.

While you may feel the urge to hit the ground running, slowing down and documenting a business plan will increase your probability of success. A business plan challenges you to create a mission statement, define your niche, and to do research on your target market and competitors.

Prepare a projected profit and loss (P&L) statement.

Estimate your business income and expenses for the first year. I am surprised at how many people completely skip this step because they have 1 or 2 projects lined up and they think if you build it, they will come. There are typically a lot of upfront and ongoing expenses required to get you started. If you will be cash flow negative for a period of time, ensure that you have enough of a cash reserve to prevent you from accumulating credit card debt. I have gone through this exercise with clients before they made a transition. Seeing the numbers on a page made them realize they were not ready to take the leap. It is easy to get excited about your website and services, but you have to ensure that at some point, you will be profitable.

Decide on a business structure with your lawyer and accountant.

Consult with your advisors to get their opinion. Whatever you decide, complete the necessary paperwork and pay the associated fees.

Be clear on your federal, state, and local tax requirements.

Most businesses will need to obtain an Employer Identification Number with the IRS. That will be your Federal Tax ID. You also want to review your state and local tax obligations. For example, San Diego has a business tax licensing requirement.

Obtain the insurance necessary to protect yourself.

Errors and Omission Insurance

If you will be in the business of giving advice, for example, you may need Errors and Omission (E&O) insurance. This will protect you from negligence, errors, misrepresentation, and more.

Disability Insurance

Disability insurance will protect you in the event you have an injury or illness that prevents you from being able to do your job. You may have had disability insurance through your employer in the past. Now that you are self-employed, you will need to obtain and pay for this on your own.

Business or General Liability Insurance

This type of insurance will protect you against claims that result from normal business operations. Examples include third party bodily injuries, medical payments, and personal injuries.

Once you start making money

Create a separate checking account for your business.

All business income and expenses should be deposited and debited from an account separate from your personal accounts. This will make it clear that your business is a separate entity and it make it easier to keep track of your financial records.

Purchase accounting software with online payments ability.

Consider a service, such as Quickbooks Online, to keep you organized. For example, Quickbooks allows you to run a variety of reports, such as a Profit and Loss statement and Balance Sheet, with the click of a button. You can also issue invoices and receive payments electronically through the system.

Begin implementing your marketing strategy to find new clients.

I read Donald Miller’s Building a Story Brand in one of my study groups and found that it helped me clarify my message and brand. I have also experimented with client surveys created in Google Drive, which were a great way to collect feedback. I emailed the client a link to the survey after completing their financial plan. If they filled it out, they received an Amazon gift card. The survey asked about their favorite and least favorite part of the process, whether they would refer to me, and more targeted questions on the plan itself to ensure their questions were answered. As a highly regulated professional, I cannot show the results of the survey to prospects, but it has helped me ensure that I am delivering the best possible product on a consistent basis.

Build flexibility into your plan.

Networking is still important.

Continue networking with old co-workers and other business owners to maintain your contacts and stay on top of best practices within your industry. This can help drive new business, but also serve as a safety net if the new business does not work out.

Remember to save for retirement.

While you may have needed to pause your retirement savings while starting your business, re-assess this annually to see if you can re-start saving for the future. Read retirement savings options for the self-employed to help you find the best savings account for you.

Be careful when you hire help.

As your business grows, get educated on the difference between hiring a contractor versus an employee. The IRS has specific rules that you need to follow. Getting it wrong can lead to penalties with interest.

Starting a new business can be incredibly rewarding and energizing. It can also be stressful and lead to financial strain. If you want to learn about what else you can be doing to get your business off on the right track, schedule a call for us to chat.

originally published 6/2020

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.

Your DIY Financial Plan Workflow

Everyone wants to update their financial plan right now.

I get it - the start of a New Year naturally gets us energized and ready to make progress. If you don't have an advisor or formal financial plan, here is a rough DIY Financial Plan workflow.

Document your Financial Goals.

We are more likely to meet our goals when we document them and share them with others.

Be as specific as possible.

People say, “We want to build an ADU”, but when I ask for the cost of building the ADU or the potential rental income from the ADU, they often don't know. Do the research, document some rough numbers, and adjust as needed.

Do the research, document the value, and list a timeframe. You can make changes if needed - but you are much more likely to meet your goal and be happy with your progress along the way when you take this step.

Update your Balance Sheet.

Document your current assets and debts on one page.

Add the rate to your savings accounts and the rates for your loans. This will make it easy to review them periodically and determine if you need to make a change.

Organize the Balance Sheet with the most liquid assets on top (cash) to the least liquid assets on the bottom (real estate).

·       Evaluate your cash reserve. Is it enough to cover you if you lose your job or have an emergency?

·       Do you have a lot of old 401ks from previous employers? Consider consolidating to make it easier to manage. [Video on consolidating old employer plans]

·       Is there an opportunity to refinance high-interest-rate debt?

You don’t need to update this monthly - annual is fine. I show clients their ‘Balance Sheet Over Time’ every year and even though it is a simple spreadsheet, they love it. We get into a rut and feel like we are not making progress financially - viewing our ‘Balance Sheet over Time’ shows that’s not the case. Especially in a year when the stock market does terrible - viewing your Balance Sheet reminds you that there is more to your Net Worth than just the 401k.

Update your Spending Plan for the New Year.

Review your previous year’s spending and decide on where you can make adjustments.

If you do not track expenses, review the last 1-3 months to get a good estimate. You can try different apps to track this, but I have always used an Excel spreadsheet and it seems simpler to me. I have a lot of transactions with 4 kids, a house, 2 rentals, and a dog, but documenting my expenses in Excel takes me just 30 minutes a month.

Challenge yourself to increase your savings by a small amount and increase the payments you are making towards debt.

Review all of your Insurance Policies in detail with your Provider or Broker.

Our lives are always changing and things we don’t think are a big deal could require a change in coverage.  

Did you start employing a housekeeper?  Inherit some jewelry? Your provider has an annual checklist for you to review and complete that will help them decide if changes need to be made.

Review your Estate Planning Documents.

Review your current documents (Will, Power of Attorneys, Trust, etc.) to see if there need to be any updates.  

If you don’t have estate planning documents yet, this is the year to get started. Everyone needs some level of estate planning - not just those with kids and a house.

Before reaching out to an attorney, check to see if you have a ‘Legal Services’ benefit through your employer. This is becoming more and more common and it is significantly cheaper than paying for an attorney (on the order of $200 versus $2,000). You elect this benefit during open enrollment, so you have to decide if you are comfortable waiting until then. If you don’t document who you want to get your assets the courts will decide, and it might not be the person you want.

Freeze your Credit.

This is one of the best ways to prevent identity theft.

Credit monitoring services tell you after the fact that something is wrong. You still have to invest time and money to fix the breach. Freezing your credit is preventative. No one can open an account in your name or buy a house in your name with a freeze in place. If you plan to obtain a loan and need to lift the freeze temporarily, it is easy enough to do from your phone. [Video on credit freezes]

Practice Gratitude and Patience.

Be thankful for all you accomplished last year and get motivated to make financial progress this coming year. If you feel overwhelmed and it is keeping you from getting started, talk with a financial planner who can help you develop a plan that you feel good about.  

originally published December 19, 2012

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.

PWR's San Diego Experts: Landing Your Next Job with Kolby Goodman

Welcome to our “PWR’s Experts” column, where we highlight some of our favorite industry experts. 

Kolby Goodman - Owner of The Job Huntr

Kolby, what are the best ways to stand out against other candidates when you apply for a new job?

The biggest differentiator a candidate can make is to communicate their value. Typically, an employer is assessing the candidate on how this person can directly affect profits, costs, and productivity. Most job hunters interview and say, I have the most experience and this is why you should hire me. Instead, if a candidate puts themselves in the shoes of the manager and says, this is how I can solve your biggest problems and bring you the most business value and human value, it will separate them from their competition.

How important is perfecting your resume before applying for a job?

According to Glassdoor, the average job opening is getting over 250 applications. Often, these applications get sent to an increasingly sophisticated AI systems (called the Application Tracking System) that helps companies, HR, and hiring managers filter through this massive amount of information as quickly and efficiently as possible. Just making sure that you have a resume that is grammatically correct and structurally sound is not going to cut it. You must convey to the hiring manager, via keywords and phrases, that you know and can help with the critical points of the job. Also, make sure you are tailoring your resume to include metrics, results, and action-oriented achievements aligned with each job you are applying for.

Negotiating is hard. Do you have any tips on how to stay confident or when to back down?

First of all, the objective of any candidate is to showcase how much value they can bring to the organization, and this direct value proposition will allow you to gain a higher salary. When negotiating your salary, the goal isn't to try to get the most money out of your next employer. The goal should be to find a number that matches the value of your contributions. If you successfully communicate your benefit, the amount that you ask for will not be surprising and you will not have to negotiate. The key is to make sure you are clear about your value and direct impact on the bottom line. If you need help on understanding what your baseline should be, public salary databases like Glassdoor or  Levels are great resources.

How can individuals best prepare for the in-person interview?

You should always go into the interview prepared to demonstrate how you can best help the manager and make their job easier. 

Put yourself in the shoes of the manager. 

• What are they looking for? 

• What are their concerns? 

• How do they need help? 

You can determine a lot of these factors by reading carefully into the job description itself. Compare what you find to the overall operations and objectives of the company. Putting these two things together will allow you to have a better understanding of your impact and involvement in the operation. How can you streamline? How can you improve profits? How can you cut costs? The more you can fulfill these needs, the higher the value you will have against your competition.

How do you coach your clients on answering the hard interview questions like "strengths and weaknesses" or something they haven't thought about an answer to?

I think people get really hung up on difficult questions because they're worried about giving the "perfect answer". If you come to an interview question and you feel stuck, take a moment and try to understand what the purpose of the question is. For a question such as your biggest weakness, don't look at this question as an opportunity to give the hiring manager examples of why they shouldn't hire you. This question is actually to help the manager understand how self-reflective you are. They want to know that you can be self-critical, take direction or feedback, and that you can look at your past experiences and improve from them.

Is it wrong to be "too honest" in the interview or on your resume? For example, mentioning you want to be able to pick-up or take your kids to school.

I don't think you can be too honest in an interview. Instead, focus on communicating how you can best contribute to the organization. If you know you need to have a work-life balance, explain to them that you are willing to work hard and put in the hours, but you also hope that you find a company that allows you to pick up your kids from school. Explain that when you have this balance, you work hard when you're at work because you know that you can enjoy your time off.

For individuals looking to find a job that isn't the same as a job they have had before, such as making a career change, what advice do you give?

First, understand the impact that you have on your coworkers in your current organization. Aside from skill sets, or technical abilities, how do you help the people around you regularly? How do you directly influence and support them to do better? These questions will give you a good indication of what your intrinsic skill sets are. All the specific job skills you can learn. Sell yourself based on these inherent soft skills, passions, interests, and abilities. Understand how someone else in a different industry applies these skills and that will give you a better understanding of how to make the change.

What resources are there for individuals looking to start the job hunt? What if they haven't interviewed or updated their resume in years?

I may be biased, but I think going to a qualified professional to help you in your transition is the quickest, easiest, and honestly most profitable way of going about this. As a career coach, I can help you identify your strengths and give you perspective about your accomplishments and impact at previous companies. I also give you an understanding of what your next hiring manager is thinking and feeling as they evaluate your candidacy based on the job posting. This outside perspective is invaluable and can really give you a head start against your competition. This needs to be a strategic endeavor, or else you're going to be continuing to spin your wheels until exhaustion. So bringing in somebody to help you who is qualified, experienced, and passionate is going to be crucial.

What do you love most about your work at The Job Huntr?

Every day I get the opportunity to work with expert, passionate, and excited professionals who go out and land the jobs of their dreams. The impact, support, and encouragement I'm able to provide are unmatched in any other line of work I've done. I love being able to coach and support these people as they go through change, not just their careers but also their lives, and that is something I am very grateful for every single day.

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.

The Sustainable Gifts I am Giving This Year

Here are the Sustainable gifts I am giving this year.

Great products by great companies. Here is this year’s guide.

Lynch Creek Farm Wreaths

I bought these organic wreaths this year for gifts (and for myself) and couldn’t be happier. It is fantastic quality and Lynch Creek Farm is dedicated to sustainable practices. You can read about how they used organic evergreens before the term “organic” was even a thing.

Paula’s Choice Reusable Cotton Rounds

My teenage girls are both getting their own sets of these now that they are engaged in daily face care (toner, exfoliator, etc). These rounds are reusable and compostable when they have reached their limit.

Animal Ear Warmers

These handmade, Fair Trade gifts are adorable. I got the koala and unicorn for my youngest girls. Being a Fair Trade Member means these artisans, who are based in Peru, must receive fair prices for their goods, adhere to safe working conditions, follow sustainable practices, and more.

Allbirds

This shoe company is on track to be net zero by 2030. They measure everything that contributes to their carbon footprint and they aim to use 75% sustainably sourced natural and recycled materials in their products.

Deerfield Ranch Winery

My husband and I celebrated our 18-year anniversary this year in one of our favorite places - Sonoma Valley, CA. During our tour, we visited a wine cave, the home of Deerfield Ranch Winery. Deerfield is a green winery where 98% of the process wastewater is recycled on-site and the vineyards are organically farmed. Their wines are also low in sulfites and histamines. This is a great option if you are entertaining a lot this season or you want to treat a wine-lover in your life.

What is missing from the list?

Email me and let me know!

No compensation was received for this post.

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.

The Gift of a Financial Plan

I have completed dozens of financial plans that were gifts - the person paying for the financial plan was different from the person going through the process and receiving the financial plan. Here is what to expect if you are interested in giving (or receiving) a financial plan this year.

How a Financial Planning Gift Works

I have a call with the giver - the person paying for the financial plan but not going through the process. This is optional.

Many times the person paying the bill understandably wants to speak with me first to clarify the price, process, and product.

Even though I am happy to have this conversation, I make it clear that my professional engagement is with the recipient - the person who ultimately signs the contract and is my client. All discussions will be confidential. My client may choose to include the giver in the meetings or share the financial plan afterward, but that is up to them. This has never been an issue but it is an important point of clarification before moving forward.

I have a call with the person going through the process and receiving the financial plan (my client). This is required.

This call is to verify that the person receiving the financial plan is on board with the process. They have to share a lot of documents with me, be open to suggestions, and be willing to make time for meetings. Once we confirm that we are a good fit, we sign the contract and continue the process as with any other client.

Popular times to give (or receive) a financial planning gift.

• December Holidays or for the New Year - January is a very busy time for financial planners! People love starting the year off fresh and getting a plan in place for the new year.

• College or High School Graduation - Young people have a lot to navigate during this transition. They are receiving their first paycheck, electing employer benefits, budgeting, and balancing savings with debt paydown.

• Wedding (a cash gift can be requested on your registry) - Newlyweds appreciate a third party helping them get on track financially. They are learning how to manage their joint expenses, new tax requirements, insurance and estate planning needs.

• Baby Shower (a cash gift can be requested on your registry) - New parents want to learn about college savings and may need to come up with a plan to buy a bigger home or car for their growing family.

• Buying your first home - People often are not clear on how much they can afford (it is typically less than what the mortgage lender says) and how to prepare for ongoing home maintenance costs.

Financial planning is a process

A financial plan is a great gift that can help someone you care about get a financial roadmap in place. There will be bumps and detours along the way, but having a plan will make them more financially resilient and ready to meet their goals.

originally published 1/24/2018

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.

Ask Your Parents - "What's your estate plan?"

Many people have something with regards to estate planning, but often what they have is not complete, not updated, or not sufficient. Children can play an important role by helping their parents get their affairs in order. Given that this could potentially be a tough conversation, here are some questions to get you started.

1. Do you have an Estate plan in place?

If the answer is yes, what documents do they have? The 4 most common are a Will, Trust, Durable Power of Attorney (DPOA) for Finances, and a Healthcare Directive. Ask them to review all documents with you to make sure they are signed and up to date.

If they do not have a plan, encourage your parents to meet with an estate planning attorney. My parents were not sure how to get started, so I researched and provided them with 3 local estate planning attorneys. I also offered to attend the meetings on speaker phone to help translate anything they didn’t understand.

2. What will I be required to do?

Hear from their own words what they would like you to do after their disability or death. Then read the documents and make sure the words align with their intentions. Confirm that everyone named in the document has been notified that they will play a role. If your parents don’t know who to name, suggest they look into a Professional Fiduciary.

3. Where are their important documents?

Know where to find items such as:

• All estate planning documents created to date

• Tax returns and income statements (examples include W-2, 1099, K-1)

• Social Security cards and birth certificates

• Titles to homes, cars, boats, trailers, and any other motor vehicles

• A recent Balance Sheet (list of assets and debts)

• A list of beneficiary designations for retirement accounts, life insurance, and pension plans.

Now is also a good opportunity to confirm that your parents are using a password manager, such as 1Password, to create and store unique passwords. You may also want to log in to their bank accounts with them and ensure that they have 2-step verification set up wherever possible.

4. What items are most meaningful to you?

Find out what physical items your parents want you to keep after they are gone. Ideally, they would go through their possessions and have everything organized ahead of time, but that is rarely the case. Make a list of all important items, the approximate value, who they want to receive it, and perhaps a story about the origin of the item.

5. What about digital assets?

What do they want you to do with their cell phone data, such as pictures and messages? Do they want you to keep their Facebook or social media accounts open? Computers and cell phones host a massive amount of data that either needs to be distributed or deleted upon a person's passing.

6. Who should I contact?

Your parents likely have financial professionals who can help you. Have them document a list of trusted professionals, such as their:

• Financial Planner /Investment Manager

• CPA/Accountant

• Lawyer

• Insurance agent

• Real estate agent

This conversation does not need to happen in one day. If it makes sense to spread it out over a few weeks or months, do what works for them. Re-iterate that the goal is to ensure that their wishes are met and the best way to do that is to get clear and organized now.

originally posted 5/7/2018

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.