Category: Retirement
Why “Beyond Abundance” for Our Tagline?
December 12, 2022by Ron Bare
As we mentioned in our last blog post, we have recently gone through a rebranding process and now have a “new” look and feel! We hope you love this new look as much as we do! As we mentioned last month, as part of our rebranding, we created a new tagline – “Beyond Abundance.” This tagline connects to our core value of “biblical wisdom” and ultimately connects to our approach of helping you with your financial decision making. We believe that living “beyond abundance,” is a posture of confidence in God, acknowledging that He can richly provide for us beyond what we need so we can generously share with others (2 Cor 9:8-12). A “beyond abundance” way of living offers freedom and opportunities to live a life of fullness (John 10:10), to impact the world far beyond what we could hope or imagine (Eph 3:20).
As we began thinking about what our tagline should be we first thought of what would resonate with you! And this is what we know – you love to be generous, and we love to promote generosity! We were reminded of all the generosity stories we have heard from you, and we have watched so many of you walk in a generous life that we can confidently say that 2 Cor 9:8-12 is true! We believe generosity is the most important part of a financial plan and a necessary component of a lasting legacy. A fulfilling and abundant life must contain living with open hands – looking for ways to be a blessing to those in need, our families, and others who we can love and serve.
In addition to generosity, we believe that it is important to be intentional to think about and expand our vision to align with desired impact, and then connect finances to this vision. Proverb 29:18 says in the KJV “Where there is no vision, the people perish”. We know as well as you do that people follow “visions” they deem worthy. What vision are you following? Have you paused to think intentionally about the vision for your life, family members and others you care about? Through our intentional process, we will help you bring clarity to your vision as well as work with you to align your money decisions to help carry your vision forward.
By living generously and clarifying your vision you can be confident that you are leaving a lasting impact in our world! You will be able to truly say you are living, “Beyond Abundance!” We look forward to connecting with you soon to continue to explore ways to do this together as well as share some new tools we are developing to help you tell your loved ones and the world your story of a “Beyond Abundance” life!
Intentional Contentment
August 11, 2022by Tina Petersheim
Cancelled plans. High school proms, college graduations, weddings, baby showers, birthday parties, anniversary celebrations, sporting events, vacations. The pandemic changed a lot of plans over the last couple of years as important milestones looked different. It would be easy to complain about all that was missed but what if we changed our focus and perspective for this “new normal”: A chance to be more intentional with the people in our lives, longer conversations with the people we love, meaningful encounters with those around us and time to disconnect from the chaos around us.
I met, dated, and married my husband in the middle of the pandemic. Like almost every girl, I imagined the princess dress, the extravagant cake, the lavish venue full of guests, the sendoff in a horse and carriage…. my very own fairytale wedding. Instead, I said “yes to the dress” online; our wedding list was shortened, our wedding cake was a few small desserts, the ballroom became the church lobby, and the grandeur exit was sitting around the table enjoying conversation with our kids.
As we focus on a year of intentionality at Bare, intentional contentment means choosing to be satisfied in all situations, experiencing joy and seeing God’s goodness, even when things don’t go as planned and life throws an unexpected curveball. After years of praying and experiencing loss, God had answered our prayers and my husband and I chose to find joy and contentment in the simpler things. We became intentional with the people we invited to our wedding as the room was filled with those who had weathered our journeys with us and with the ceremony as we shared how God merged the paths of two people who had lived through difficult circumstances.
The Apostle Paul learned the secret of being content and reminds us in Philippians 4:10b-11… “for I have learned how to be content with whatever I have. I know how to live on almost nothing or with everything. I have learned the secret of living in every situation, whether it is with a full stomach or empty, with plenty or little.”
How are you being intentional with being content in every circumstance? Are you choosing to be happy with the little things in life and live in the moment? Are you fully trusting in the One who has promised to meet every need? Maybe, like me, some things in your life don’t look quite like you thought they might. Maybe some of your goals have shifted or changed. At Bare, we help you through transitions to ensure your values, goals and purpose are directing your financial plan. Having a good financial plan that you feel confident about, along with regular “check-ins”, can help with living out the verses in Philippians and being content in every circumstance.
Ultimately, choose to recognize God’s blessings and enjoy the simpler things: long walks in the park, snuggles with a new baby, a cup of coffee on a rainy morning, relaxing on a sunny day. Know that God is in the details, canceled plans, and missed activities. After all, I still found my Prince Charming and am choosing to be intentional in living happily ever after.
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!
Market Update
May 22, 2020by Ron Bare
In February of this year, I spent a week in Florida with my family as well as with some of our team from the office. Visiting colleges with our daughter, going to Disney’s Animal Kingdom, enjoying the beach, and attending the annual “Kingdom Advisor Conference” all seem like a distant memory. It is hard to believe that this was only three months ago! While we had heard a few “rumblings” of a new virus during our travels, we saw no masks or any cause for concern, even when boarding our plane on February 23rd.
The equity markets at the time were reaching new highs. The US economy was very strong, with record low unemployment and solid GDP growth rates. Although some were saying markets were beginning to look overvalued, the bottom line was that companies were profitable and were predicting even greater profits throughout 2020.
Then Covid-19 arrived and with it, full-blown panic. The market dropped 34% in 33 days, a record decline. I discussed this in our video blog in late March (which you can find on our website.) Now, two months later, the dust has begun to settle and although the panic has subsided there is still uncertainty about where we go from here. The markets have since recovered much of their decline, however, a large amount of skepticism remains. With this in mind I thought it may be wise to pass on a few thoughts relating to investing success over time:
- When stock prices are going down, the enduring value of the underlying companies is going up. The lower prices go, the more value is to be had at those prices. You understand this in almost every other area of your economic life (we all love to purchase something on sale!) It is essential to apply this same principle to the stocks of American companies we invest in – or you may never become a successful investor.
- Staying fully invested during market declines is the only sure way to capture the entirety of the markets long term advance. It is not possible to consistently sell out of falling markets and buy back later at the “right” time. Most of the market driven news is geared toward market traders, NOT long-term goal and plan driven investors. To the latter, market fluctuations are just part of the process to be rewarded for the long term returns of some of the greatest companies of America and around the world.
- You should never try to make long-term investment strategies out of short to intermediate-term disruptions. We always advise to make investment decisions based on our values and financial plan, not short-term events or emotions. The past few months are a good example. Let’s assume you ignored the market downward collapse of 33 days in late February and March and woke up today, May 15th, and took a look at the markets. Yes, they are down 15-16% from earlier highs, but that is in the range of a typical market correction that happens about once every 12-18 months.
There is the ongoing chance that the markets will continue to drop back due to the uncertainty we still are facing with the Covid-19 virus and economic wake it will leave. If you adhere to the ideas presented above, then these fluctuations should not impact your long-term goal and plan driven investment strategy. Perhaps when we focus on the long term, we not only will make much better investment decisions in the short term, but we also will rest better as we wait for time to pass.
The CARES Act
April 6, 2020The CARES Act is an acronym for Coronavirus Aid, Relieve, and Economic Security Act. Below are some thoughts specific to our industry that might be helpful to you:
- 2019 IRA Contributions: The 2019 IRA contribution deadline has been extended with the tax-filing deadline until July 15th. Make sure that you communicate with us if your contributions are intended to be for prior-year.
- Early Withdrawal Penalty Waiver: The CARES Act also waives the 10% early distribution on distribution of up $100,000 from IRAs and plans for individuals who meet the requirements of being affected by the coronavirus. The tax would still be due on pre-tax distributions, but could be spread evenly over three years, and the funds could be repaid anytime during the three years.
- 2020 RMDs: The Act included a waiver for required minimum distributions (RMDs) for 2020. This waiver applies to company savings plans and Traditional and Inherited IRAs. If you would like to stop your 2020 RMDs, please contact our office.
- Charitable deductions: The Act creates an above-the-line charitable deduction for 2020 (not to exceed $300) with a cash donation to charity, this particularly useful for those using the Standard Deduction on their tax return but still give. If you itemize your deductions, the bill also modifies the AGI limitations on charitable contributions for 2020, to 100% of AGI for individuals and 25% of taxable income for corporations. The bill also increases the food contribution limits to 25%. The prior AGI limit was 60% for individuals. Donor-Advised Fund Limits were unchanged, so if you are desiring to maximize the individual or corporate increases, the increased giving must be directly to a qualified charitable organization.
The Bill that was passed is over 800 pages long and covers many things from stimulus, to loan programs, to one-year changes in tax laws, and more. Please stay close to your accountants, attorneys, and bankers for applicable opportunities this Act provides. Feel free to reach out to us if you have questions as to how this Bill impacts you and if we don’t know the answer, we’ll point you to someone who does.
If you anticipate receiving a stimulus check, it would be a good time to prayerfully consider how best to use that money since it was not in anyone’s plans as the year started. If you haven’t been financially impacted by the COVID-19, perhaps consider extra levels of generosity to help those who have needs.
Thank you again for trusting us to walk with you on your stewardship journey.
Market Update
March 12, 2020by Ron Bare
As mentioned in our previous blog, the Bare Wealth Advisors team believe in helping our clients make financial decisions flowing out of a comprehensive financial plan based on your values and goals. However, we do understand that the current health situation with the virus and also the implications of how this effects your financial goals is probably on your mind. With that in mind, we wanted to share a few thoughts on fear and also a few principles we believe.
Since fear levels in our country (and world) are at high levels, we thought it would be good to share some thoughts and principles related to fear and finances. I have heard that the Bible says do not fear (or be afraid) somewhere close to 365 times, one for each day. This is clearly to remind us that our nature is to fear the unknown and the circumstance we may be faced with. I was reminded in our church service this past week to read Psalms 91 (too long to type in this blog – I suggest going to the YouVersion Bible app to read). Reading this and other scripture is a great way to actively combat fear in our lives and for those we care about.
In addition, as we make financial decisions, we believe reviewing a few basic principles can be effective when we live in times of uncertainty. Here are a few to consider:
- God is the owner of all things, including our money (Psalm 24:1). This reminds us we are stewards and should work hard to manage what has been entrusted to us; however, we are not expected to have a crystal ball based on future events that may or may not happen.
- Live within your means and be content with what we have (Hebrews 13:5)
- Minimize the use of debt
- Build liquidity and have some money put back in savings for the unexpected and for income that you may need in the short term (our planning process accounts for these items)
- Think long term – the longer term your perspective typically will help you make better financial decisions. (Think back to the financial crisis of 2008 – 12 years ago, we have recovered well)
- Give generously – personally I believe this to be a very important step in coming up against fear we may have. Fear causes us to hold tight to what we have rather than have an open hand, look to help someone in need or bless a cause or mission you believe in.
In summary, one of our core values at Bare Wealth is Biblical wisdom. We believe that when we manage our lives and finances according to Biblical principles we can experience:
- Contentment under all economic conditions
- Confidence in financial decision making
- Maximize the use of money, our talents and time for what matters most to us
As always feel free to contact our team with questions on your plan/investments or concerns related to what is happening in our world, we care about you and your family.
Also, please pass this on to any family or friends who may benefit from reading this.
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”.
Medicare Insurance
October 2, 2018by Jim Wahlberg
It’s that time again…mailboxes will be filling up, advertisements will be falling out of the newspaper, and every other commercial will announce it. What is it?!? It’s Medicare enrollment season! Ready or not, October 15th begins a new Annual Enrollment Period (AEP). I get a lot of questions this time of year so I thought I would try to answer some of the most often asked questions in this post.
What is the Annual Enrollment Period? The AEP is a timeframe that allows Medicare beneficiaries an opportunity to either enroll, disenroll, or change Medicare Advantage or Medicare Prescription drug plans. This time period does not apply to Medicare Supplement plans.
What are the dates of the Annual Enrollment Period? All changes need to occur between October 15th – December 7th. We can begin meeting with people starting October 1st to discuss the benefits for the upcoming year. However, we cannot accept any applications until October 15th and we cannot submit any applications after December 7th. There are almost no exceptions to this rule.
Do I have to call or sign anything to keep my current coverage? Generally, NO. If your current plan is continuing into 2019, you’re satisfied with the way it worked, and you understand the upcoming changes in coverage, then you do not need to do anything. A general rule of thumb is not sending your phone number to a mailer you have received unless you would like to receive calls from the source of that mailer. If you do have question about Medicare coverage, feel free to call our office and we’ll be happy to answer any questions you have.
Is there any cost to meet with your office to sign up or make changes? No! You don’t pay anything to meet with us and you will not pay any more buying a product through our office compared to buying it directly from the company. We are independent brokers representing most of the major insurance companies in our area. We’re happy to discuss your current plan and make recommendations for change only when it benefits you.
Don’t let the Annual Enrollments Season overwhelm you. Please give us a call if you would like a personal review of your coverage for 2019.
Retirement With A Purpose
May 1, 2018by Ron Bare
Bare Wealth Advisors is making 2018 a year focused on purpose. One topic that should be discussed in this context is the subject of retirement. Many studies have shown that people who retire from work without a plan or purpose for the next phase of life are more likely to be discouraged, depressed, and disappointed about their life. Statistics also show that those who retire and have no purpose do not live as long as those who have a purpose clearly defined going into this transition. So this begs the question: How do I retire with a purpose?
Here are a few strategies that may help you plan for a purposeful retirement:
- Consider how to spend the extra time on hand: On average we spend about 25% of our time each day at work – that is a considerable amount of time. Rest and leisure are nice and can use some of this time but if all of it is used for rest and leisure you may find yourself in the statistics above.
- Action Step: Make a list of 5 – 10 areas of life you wish to be more intentional in such as health, family, travel, service, etc. Then determine one or two ways to take a step to live more intentionally and purposefully in these areas.
- Define your work: We were made to work. In Genesis, God made Adam and Eve and put them in the garden to work and take care of what was created. God is the ultimate Creator and humans created in God’s image are sub- creators. We are designed to take what God has created on the earth, improve it, and build upon it. Each person has been created with unique gifts to be used in this creation work. Part of our purpose is our work during our careers but even after “retirement” we can find work that fits our gifts and abilities which helps to improve the world around us. Ron Blue uses the term “re-hirement” to describe retirement. Personally, I think this is a good way to look at retirement in that it signals a transition to a new phase rather than a complete stopping of work all together.
- Define “How much is enough?”: After you know what your purpose and plans are for retirement, you should be able to determine how much money will be needed to fund your retirement planning goals. Saving and investing to be able to fund your goals is prudent planning and can help you live a “re-hirement” strategy of your dreams. In this process I have seen that determining how much is enough and setting personal financial finish lines can be part of an intentional plan and help you live retirement on purpose. Excess funds can be used to help you do more than you thought possible in some of the areas listed above. Wealth can be used in a variety of ways when you have an intentional plan for your family, ministry/service work, a new business, community improvement, health and education, etc. Part of your work in #2 above can be strategically allocating financial resources to the areas that are your heart’s deepest desires – I have seen this to be very fun and fulfilling “work”.
Like most areas of life, retiring on purpose takes some planning and intentional work. However the results of this work can lead you to a fulfilling and purposeful “re-hirement”. Many people in life start strong but only a few finish strong. Let’s be a generation that finishes strong by living our remaining years on this earth on purpose!
Five Reasons to Have Money in a Savings Account
May 31, 2017One financial recommendation clients sometimes think is boring and unnecessary is to have money in a savings account. We normally recommend that a working family have between three to six months of their living expenses in a savings account. For a retired family, we recommend having up to one year of living expenses in a savings account. For a business or a nonprofit organization, we recommend they have at least one month of operating expenses in a savings account. With that in mind, here are five reasons why it makes sense to have money in a savings account:
1. For unexpected expenses
Whether you experience the loss of a job, unexpected healthcare costs, or an unexpected automobile repair, there always will be things that are unexpected financially. If these costs are more then we can cover with our normal income, having money saved is a great way to cover these expenses.
2. To avoid borrowing
You may need a vehicle, want to go Christmas shopping, or just have some things that you want to fix up around your home. If you don’t have money saved for these, you will need to borrow for these expenses. By borrowing money for these expenses, you will have to pay for them over a number of months or years; and usually you will pay interest on the money borrowed. This may mean that a simple Christmas shopping trip could cost you a lot more then what you planned.
3. To meet someone’s need by giving
Paul tells us in II Corinthians 9:8 that we should “have an abundance for every good deed”. If your neighbor loses his job, the local fire company is having a fund drive, or your church asks you to consider helping a missionary that is in need, you can always be ready to give with money that is in a savings account.
4. Be able to take financial risks
Knowing that you have a surplus set aside in a savings account, allows you to take on the risk of losing money when initially opening a business, buying a real estate investment, or purchasing the stock of a company. Even if these investments lose value or fail, you can know that you have some stability by having money set aside in a savings account that is not at risk of being lost.
5. God says that it’s wise to save
Proverbs 6:6-8 “Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest.”
The goal for money in a savings account is for it to be safe and available. That means the money is not at risk of being lost where it’s invested and you can get to it quickly if needed. With that in mind, here are a few places to consider saving money.
1. Your local bank savings or money market account
2. An online bank savings or money market account
3. A money market mutual fund
If you have questions on how much you should set aside in a savings account or where to invest it, please give our office a call. One of our advisors would be happy to talk with you.
by Ryan Kurtz