Category: Goals
National 529 Day!
May 28, 2021by Curtis Burkholder
As we continue to discuss ways to have an “Impact” with our time, treasure, and talents, we wanted to highlight that tomorrow is “National 529 Day”! This day was established to focus on the importance of planning and saving for college – through what is known as the 529 plan. By utilizing a 529 plan, you can help impact someone’s educational life. As you know, education can be expensive. The 529 plan is an excellent way to purposefully plan to save for an individual’s education – whether that be your child, grandchild, or another special child in your life. If you do not know what a 529 plan is, you are not alone! Keep reading to learn more about how these accounts can be a helpful and impactful tool when saving for college or K-12 private education.
The 529 plan received its name because it was authorized in section 529 of the Internal Revenue Code. It does not actually have anything to do with the May 29th other than it’s a great date to highlight this plan! The 529 is a college savings plan that allows individuals to save for college on a tax-advantaged basis without paying federal taxes on its growth – but only if it is used for qualified higher-education expenses. A few years ago, the tax laws were updated to allow families to use funds toward a private elementary or secondary education-up to $10,000/year per beneficiary.
If you contribute funds into a 529 account and the original beneficiary does not need the funds for their education, the beneficiary can be changed to another family member. This provides flexibility in funding and planning for education expenses as funds can be transferred between different siblings as well as down their family line.
It is also important to understand the tax treatment of 529 accounts. There are tax advantages for contributions into a 529 account. Each state has established their own plan with an investment company so you will receive a state tax deduction for any amount that you contribute into a 529 account. However, if you live in Pennsylvania, you may claim a deduction for a contribution to any state’s 529 plan. This means that you have a wide range of investment providers to choose from for the 529 account. This also means that you can contribute to 529 accounts for your grandchildren even if they live out of state.
Another important element to consider is how 529 distributions are treated from a tax perspective. If the funds are used for qualified education expenses, there are NO taxes due on the distributions. However, if the funds are not used for qualified education expenses, the earnings of the non-qualified distributions will be subject to income tax and a 10% federal penalty tax.
Almost anyone can open a 529 account including parents or grandparents. No matter who opens a 529 account, anyone can contribute to the account for the student. If you have grandchildren, you can contribute to their college education by establishing a 529 plan for their benefit or using one that is already established. This can also be useful if your grandchildren attend private school, as you can help cover the cost of their education and get a state tax deduction for any contributions made into a 529 account. The funds in the 529 account can then be withdrawn to be used to pay for the private school tuition.
Hopefully, you have gained a better understanding about 529 plans, as well as the advantages to using them. If you wish to learn more about 529 accounts and how they can be used for your children or grandchildren with great impact, please contact our office and we would be happy to discuss this with you in greater detail. Happy National 529 Day!
Securities America and its representatives do not provide tax advice; therefore, is is important to coordinate with your tax advisor regarding your specific situation.
Impact for Generations – How George Whitefield influenced the world
May 10, 2021by Curtis Burkholder
Have you ever considered how your life may impact future generations? Does your heart burn with a passion for a cause? Today, I want to briefly share the story of one individual who impacted many generations.
Recently the team at Bare Wealth Advisors read Gospel Patrons and discussed it weekly. Gospel Patrons is a book about generous people who funded the work and ministries of other people in history. This book specifically highlights the story of three individuals and their financial supporters. The book tells the stories of the impact they had in their world at the time and how many continue to impact us today. One of these stories is the story of George Whitefield (1714-1770).
You may have heard of Whitfield before as many people know him as one of the founders of Methodism as well as a preacher during the Great Awakening, but some parts of his story are not as well known. Whitefield had a financial backer known as Lady Huntingdon who helped to fund his ministry. Lady Huntingdon became widow at the age of thirty-nine and used her financial resources for eternal purposes.
Whitefield had a preaching style that was unique and uncommon for his time. He was known for speaking of spiritual things as being real. In stark contrast to sermons of the day that were often read and were dry, Whitefield’s sermons were passionate, biblical, and joyful. Often Whitefield would preach twice a day seven days a week. He also tried something that had not been tried in England at the time, preaching outside.
Amid drawing large crowds to hear him speak on both sides of the Atlantic, Whitefield also faced opposition. He regularly had rocks, dirt, and even eggs thrown at him. He was almost stoned to death in Ireland, two people attempted to murder him while he slept, and others tried to distract him and his listeners. But despite the opposition, he continued preaching.
By the time of his death at age fifty-five, he had preached at least 18,000 sermons averaging over ten per week-more than 500 sermons a year for thirty-four consecutive years. In his will, he left everything to Lady Huntington who had supported his ministry.
Through Lady Huntingdon’s support and Whitefield’s tireless preaching, they influenced many in both England and America. It is estimated that over 80% of those living in the American colonies at the time heard Whitefield preach. This provided a common theological framework that influenced the nation for many generations. Between both England and America, it is estimated that over ten million people heard his sermons.
As we reflect on the life of Whitefield and what he accomplished, it is amazing to consider what he did without our modern transportation or sound projection systems. Considering this, I encourage you to reflect on everything that we have, and to think about your talents, time, and the resources God has given you. How may God want to use you to impact not only this generation but future generations. It may not be an easy road, but through perseverance may you accomplish the dreams and desires God has placed within your heart.
Resurrection Impact
March 31, 2021by Lamar King
Growing up on a farm, I (Lamar) was often encouraged to start my own business. So at the age of 12 I began raising and selling puppies. I purchased a beautiful yellow Labrador retriever and remember vividly one winter when she gave birth to a litter of puppies. One was not moving. It had gotten away from her mom and was lifeless. My father brought her inside and with warm water rubbed this little puppy and soon enough it was moving around, and life was evident! Like a real-life version of 101 Dalmatians, this puppy had seemingly come back to life! This experience is the closest I have ever come to physically seeing resurrection and I can assure you, it had lasting impact! As we approach Easter, this memory brings to mind a resurrection that has had an impact on me personally and on the world we live in – the most meaningful resurrection in history – the res
urrection of Jesus Christ.
As Ron shared in our most recent blog, 2021 is our “Year of Impact” at Bare Wealth Advisors. There has been and is no greater impact than the person of Jesus Christ. The Gregorian calendar is the most widely used on earth currently and whether you call it the Common Era or Anno Domini (AD), the counting of years to get to 2021 started at the birth of Jesus Christ. He was born of a virgin, lived a sinless life, and willingly laid down His life at the hands of those who were His own people. He came as a King yet acted like a servant. He often taught with stories and parables to turn peoples’ hearts rather than with decree to only chase obedience. He restored the marginalized and showed the value of people no matter their age, gender, or ethnicity.
Throughout His ministry on earth, Jesus predicted his resurrection. Most of the time his followers really did not understand what He was talking about. Three days after His death, so much became clear. The tomb was empty! Everything Jesus had talked about suddenly made sense. For 40 days on the earth before ascending to Heaven Jesus physically appeared to many people. From groups of two to gatherings of 500, His presence is documented.
Jesus said to His followers in John 15:5 “Apart from me you can do nothing”. I believe this. The deepest and truest impact can only be found in and through Him. Him who conquered the grave. Him who walked in humility and obedience to His Father. Him who led people as a servant. Him who gave generously. Him who was patient with difficult people. Him who laid down His life for His friends. Him who empowered the broken and despised. Him who spoke with and encouraged those left alone. Jesus Christ impacted every person He met. And He gives us this same ability to impact others – through His example and the Holy Spirit. As we approach Good Friday, the day of His death, and contemplate the impact His resurrection had three days later, on what we now call Easter – may we all consider and remember His impact. And may it cause us to ask – Who am I impacting? And may we all walk anew with impact like this, by His strength.
If you would like to experience and walk in this life changing power and have lasting impact beyond your time here on earth, please feel free to reach out to our team.
2021 – Year of Impact
March 22, 2021by Ron Bare
Who or what are you impacting? This is the question we are asking at Bare Wealth Advisors in 2021. Each of us has an impact on someone or something, either in a positive or in a negative manner. Our mission at Bare is to help our clients “intentionally manage wealth that aligns with their God given purpose for maximum impact.” Our desire is to assist you in having the maximum impact with the wealth you are stewarding. What I (Ron) have learned over the past 25 years as a wealth advisor is that most of us aspire to having impact, but many things (both good and bad) easily get in the way of accomplishing this goal.
I recently heard a speaker say, “whenever we have excess it is easy to be wasteful.” It’s easy to think of this in terms of food, or time, but what about wealth? If you have more than enough, do you easily find yourself investing the extra into relationships or causes to help create impact? Or do you spend it on more temporal or short-term fun?
At Bare, we believe God has given us complete freedom to use wealth for enjoyment and for blessing our families, but also for SO much more! We believe in being intentional with excess wealth decisions so we can leave an impact and legacy. The end goal of managing wealth should not be endless accumulation. You have probably heard the saying, “you never see a hearse pulling a U-Haul full of our stuff.” When we die, only what has been invested into people and impact will last. That is what we are passionate about. Imagine a world where we took the excess resources we have and intentionally invested these funds into causes or people for positive impact.
Let’s dream together about a few areas of possible impact:
Family – have we purposely invested into our families’ dreams, whether that be education, launching a business, or helping to fund a passion?
Local communities – how can we improve the community we live in? Do we know our neighbors and their struggles? Are we involved in local ministries? What other ways can we help our community?
World problems – what problem around the world do you wish to see positive change in? Clean water for all? Elimination of hunger? End of human slavery? Value of human life? I am sure we could name so many more.
Let me leave you with a simple formula for intentional money management so you can have meaningful impact:
- Work hard to earn a living and bring increase to your business. We were made to work and improve the earth. (Genesis 2:15)
- Learn to be content. Not an easy task but the more we learn contentment the more we can focus on the needs of others. (Philippians 4:12)
- Set long term financial goals – college, family, retirement, or other. When you know your goals, it is much easier to calculate how much you will need to accomplish those goals.
- Set a financial finish line. This can be an annual cap on your living expenses or a cap on your net worth. When this is set, work hard to grow your income or net worth (increase is good), but commit to using the increase for impact on others.
Following this four-step formula can help you intentionally have an impact in your family, local community, and the world. We look forward to working with you in 2021 to help you set and accomplish your goals and to begin discussions on what kind of impact you wish to leave this world!
What is going on with GameStop and how should I respond as an investor?
February 9, 2021As many of you have seen in the financial news within the last week(s), social media forums are having an increased influence on specific shares of companies or precious metals. We have had several of our clients as well as friends and family members ask us to explain what is happening.
For those who have not heard about it, here is a quick background: Hedge funds often have large short positions on companies they expect to decline in share price. To “short a stock”, means to sell it with plans to buy it back later; hopefully, at a lower price. These positions are public as large hedge funds are required to make their holdings known. Recently, forums on some social media platforms have taken notice and leaders of these are encouraging people to buy stocks of a few of these companies to run up the price and cause large losses for the hedge fund managers.
A few thoughts and reminders:
- When you are buying a stock of a company, that company does not receive any money. Stocks (after the IPO – Initial Public Offering) are traded on the secondary market. So, when you are buying a stock, it is like buying a used vehicle – the manufacturer does not get a dime.
- Use caution if your heart is attracted due to a quick gain or fast profit. Proverbs 13:11 says, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it”.
- Understand how your investment creates wealth. If you are going to buy an investment, make sure you or your advisor knows how it works. In this case, with companies like GameStop, look at the underlying company you are buying, in this case GameStop had 3 years of declining income, increasing debt, and the increasing use of borrowing to fund cash flow. Proverbs 14:15 says “The simple believes everything, but the prudent gives thought to his steps.”
- Consider the ethical side of an investment decision not just the financial side. Contemplate questions like “Am I making the right investment choice if I’m hoping for the demise of another for the sake of personal gain”? Proverbs 24:17 says, “Do not gloat when your enemy falls; when he stumbles, do not let your heart rejoice.”
- Just like joining in partnership with someone in business – know what your exit strategy is. If you plan to get in on trends or investing in individual companies, know what your exit plan is. Do not buy based off excitement with no plan of when to sell after gains or losses occur.
- Seek the counsel of those whom you trust. Be cautious trusting your investment decisions to those you do not know.
There is nothing inherently right or wrong about purchasing stock in a company. However, we do know that every financial decision has more than just financial implications and it is good for each of our hearts to pause and consider the above thoughts before making any investment decision.
Revisiting 2020 Goals
August 4, 2020By Curtis Burkholder
Take a moment to pause and remember how you felt at the beginning of 2020. Did you have a sense of excitement and anticipation for the start of a new year and new decade? What did you hope to accomplish this year? What did you expect life to look like by the middle of 2020?
If you were like me, you started the year with excitement, anticipation, and goals you hoped to accomplish. However, that quickly changed as March arrived and coronavirus changed all our lives. With schools and businesses being closed and “stay at home” orders in place, life suddenly was drastically different. I think it’s safe to say that none of us anticipated this new “normal”: mask wearing in public, limits on business capacity, and phrases such as “social distancing” and “6 feet apart” being commonplace.
Despite how things turned out and amid the challenges we all faced (and continue to face), I would encourage you to pause and reflect on where you are in life right now. Were there things you were able to accomplish over the last several months with reduced scheduling commitments? Did you find some things impossible to do with businesses being shut down? Have you had new opportunities or insights due to being required to stay at home? No matter what life looks like for you right now, I encourage you to revisit your dreams and goals. While some may need to be adjusted, some may be even more relevant today than ever before!
Reevaluating goals can be applied not only to personal life but also to our financial lives. Perhaps you have experienced a loss of income or increased job uncertainty. Maybe you’re busier now than ever and have seen your earnings greatly increase. Wherever you find yourself financially, it is wise to evaluate if you are doing the best job with the finances that have been entrusted to you.
In times of uncertainty, having a plan can help to guide us through difficult times. For example, when we travel, there are unknowns that can arise such as detours and mechanical breakdowns. However, as you remain patient and focused, even following the detour, you will arrive at your original destination. The same is true of our financial lives. When we stay focused on our goals and values, as we come upon “detours” in life, we can adjust our actions accordingly. Intentionally remaining focused on and revisiting our goals as needed, while navigating detours, allows us to accomplish what we set out to accomplish.
In conclusion, as we find ourselves in unexpected circumstances, I would encourage you to reflect back on the goals you set for 2020 as well as what you have learned over the last 6 months. As you then turn and look to the future, consider what is most important to accomplish with the time remaining in 2020. I believe God has unexpected opportunities and possibilities in the days and months ahead for you and your family!
Clarity in Planning
January 6, 2020Driving into work today the classic 1972 Johnny Nash song “I Can See Clearly Now” came strolling into my mind. It made me first break out in song and then contemplate the blessing of sight and finally consider how this year is going to be the Year of Vision at Bare Wealth Advisors. You will hear more about our Year of Vision throughout the year but for now I simply want to focus on seeing clearly or having clarity.
Did you know that eyes are made up of 2 million working parts? Or that your eye is the fastest muscle in your body? I regularly take my eyes for granted and forget that my vision is one of the greatest gifts I have. However, when I forget my glasses or get something in my eyes and lose the clarity of vision, it’s an easy reminder how critical it is to see clearly.
As a financial advisor, one of the areas we excel at is giving financial clarity to our clients. It’s more than just wealth management and insurance products based on your age and risk tolerance. These might provide a course but cannot provide full clarity. Once we get a chance to walk through a full financial plan, understanding a client’s core values in addition to their financial goals and circumstances, we can provide a lot of clarity as to the path they are on and help them answer the question of “how much is enough?” in many areas of their financial lives.
We’re looking forward to 2020 and hope to see you soon! As the Johnny Nash chorus continues, “It’s gonna be a bright (bright) bright (bright) sunshiny day”.
Year of Generosity in Review
December 1, 20192019 has been Bare Wealth Advisors’ Year of Generosity. We find it helpful to create a theme each year to help us be more intentional in a certain area of our financial lives. Without intentionality in our lives we are prone to coast along with life reacting to life events and circumstances. This is true in our financial lives as much as in any area of life. As we wrap up another year, I thought it would be good to make one last effort to emphasize the importance of generosity in our lives and in the lives of others around the world.
In 2 Corinthians 8:7, the Apostle Paul tells us to excel in our acts of giving – similar to how we would want to excel in other areas of life such as our knowledge, speech, faith etc. If you are alive more than 12 years, you probably know that to excel or get better in something you need to work at it and plan for it to actually improve. Think of a professional athlete such as Michael Jordan-the best basketball player ever to play the game (sorry, Lebron James fans). Although he was naturally gifted as an athlete and basketball player, he was also the one that put in the most hours a day practicing and mastering his game. The same is true for financial management as well as our generosity. We may be naturally generous, having a desire to help other people. However, with unlimited options on how we spend our time and money, we are often pulled away from using our resources for others in efforts to “better” our own lives resulting in more things or time commitments.
The only way to improve or excel in our effort to live a generous life is to plan, set goals, and take steps towards generosity. Begin by asking yourself: “What does generosity look like for me considering what I have been given?” The Bible tells us that to whom much is given, much is expected. This means we have a great responsibility with what we manage. Many in America have been given much and, we are the most generous nation in the world by many statistics. However, a deeper look into this says we have room for improvement. The average American gives about 2% of their income. While this is slightly better at 2.6% for someone who regularly attends a weekly worship service, it still falls short in many ways considering the wealth we have in our possession. During the Great Depression, average giving percentage was 3.5% of income, despite extremely difficult times. There are many studies that show as our income increases, we give a lower percent of our income to help other people. Why?
Perhaps because we do not think about being intentional or how we can improve in this area like we do areas such as fitness, our jobs, parenting, etc. Why not set giving or generosity goals each year that push us forward from the prior year? Think about giving a bit more to help others or possibly one percent more of your income than the prior year. Think about how we can use our time to help those in need around us such as volunteering an hour more per week so we can physically help someone in a tough situation. A good exercise is near the end of the year pull out your calendar and your checkbook (or online account) and reflect on how you spent your time and money in 2019, does it align with what you most value in life? If not, set some goals in both areas to be more generous and others focused in 2020.
I read recently that if the average church attender gave 10% of their income (a tithe or tenth is often taught in the Scriptures) there would be additional resources to solve problems such as: world hunger, deaths from preventable diseases, the world’s clean water and sanitation concerns, all world mission efforts would be funded, and all illiteracy concerns would be solved. Not only would these problems be solved but there would also be $100 billion left over to fund local needs in our communities. With this in mind, I could argue that if we all pushed forward with more generosity, we could drastically improve the lives of people around the world! In addition, when we take part in generous acts there is a supernatural joy and fulfillment that comes that cannot be matched by any earthly possessions.
To wrap up Bare Wealth Advisors. Year of Generosity, let me encourage and invite you to take part of generous acts of service in 2020 and beyond. Together we can move the needle of generosity from where we are today to where we can leave a legacy well beyond what we can imagine if we are intentional in this area of our lives. After 23 years of working with families such as yours in the area of financial management and decision making, I can honestly say I have NEVER met an unhappy generous person.
Living Beyond “90/10” Generosity
August 5, 2019As we continue to explore what generosity looks like this year, we found this video inspiring and think you will too! A life of generosity can encompass so much more than monetary donations. Please pass this along to others you know who will be inspired in their generosity.
This video is courtesy of Generous Giving. To learn more about Generous Giving, click here .
Year of Purpose Recap
December 7, 2018by Ron Bare
Early in 2018, I wrote that this year Bare Wealth Advisors was themed to be a year of purpose. If you have worked with us for some time, you know that we believe that all of us have a unique calling and purpose in life. However, living life on purpose means to live intentionally as we journey together through this life. At Bare we made a commitment to helping you achieve that this past year.
Here are some things we set out to do in order to help you live a life on purpose in 2018 – we hope these were a blessing to you and your family!
- Help you create a life mission statement or help you identify a few core values. If you have not been able to go through these exercises, be sure to bring it up to us next time you’re in for a meeting! We have received some great feedback on how these were helpful.
- Books and devotionals. We have given out many “Purpose Driven Life” devotionals and “Splitting Heirs” books for those working through the estate planning process. We are excited to talk to you next time you visit us to receive feedback on the usefulness to these resources.
- We have written blogs on how to live a life of purpose, how to retire with purpose and how to vacation on purpose. Let us know if you missed any or check out our website as all previous blogs can be found at www.barewealthadvisors.com
- Tee shirts! We had “Run with Purpose” tee-shirts made and have seen them being worn in the community. If you have not received one stop by anytime to pick one or two up as an early Christmas Gift.
We look forward to hearing from you and any stories you have on how living ON PURPOSE has helped you or those you care about. Blessings to you and your family as we enter the Christmas season! A time to be thankful and reflect on faith, family and friendships – the things that matter most!