SJS Outlook: Q1 2025

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Planning Financially For The New Year

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By Advisor Bobby Adusumilli, CFA.

As we begin the new year, we have some ideas for concrete actions to start your new year on the right foot, financially.

• Review retirement contributions and gifting goals: In 2025, the IRS is boosting retirement contribution limits to new highs, as detailed in the table below. The IRS is also increasing the amount you may gift to an individual recipient to $19,000 in 2025, without affecting lifetime gift tax exemptions.

2025 Select Retirement Plan Contribution Limits

Source: “Retirement Topics - Contributions”. IRS, irs.gov. See Important Disclosure Information

• Notify your accountant: It is important to notify your accountant of any contributions or donations that may have a tax consequence, as your tax documents may not explicitly state all of your contributions and donations. For example, retirement plan contributions, charitable donations (particularly qualified charitable distributions (QCDs) from your Traditional IRA if you are over age 70 1/2), and 529 plan contributions can all potentially help you save on taxes. Also, if you are invested in private funds, notify your accountant that you may not receive K-1 tax forms until later in 2025.

• Keep SJS apprised of trusted advisor changes: We want to keep up with changes affecting your family, including changes to your attorney, accountant, or banker. Please let us know if you have made changes to the professionals you work with.

• Update your estate plan: It is a good practice to regularly review your beneficiary designations to ensure they match your current wishes and align with your estate planning documents. Reviewing your estate planning documents periodically is also recommended, at least every five years or when there is a major change in your life.

• Keep your wealth protected: Wealth accumulation is only part of the equation; the other piece is wealth protection. We strive to help keep your personal data safe, including avoiding sending personal information via email (unless encrypted) and reaching out to you to confirm that requests we receive from you are legitimate. Taking additional steps like adding multi-factor authentication and changing passwords periodically can help to keep your information safe.

As always, we are here to help you put your best foot forward. We are glad to meet with you to help keep you on track!

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Important Disclosure Information:

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

Statements contained in this article that are not statements of historical fact are intended to be and are forward looking statements. All forward looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected.

Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal professional or tax professional for specific advice.

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Our Family Has Grown By Four Feet!

Community is one of our Words of the Year at SJS. Our team members, individually and collectively, strive to put our communities first.

In this spirit, we recently donated to The Ability Center to support their Assistance Dog program. As detailed on their website, The Ability Center works to make our community the most disability friendly in the nation by increasing independence for people with disabilities, discovering true passions, and changing the community’s perception of disability.

One of their services is the Assistance Dog training program, which helps individuals with disabilities achieve greater independence by training and placing service and skilled companion dogs to aid with the individual’s daily needs. The Ability Center has also placed over 30 school facility dogs as well.

The SJS Team took on the task of naming one of the puppies. Jennifer Smiljanich, Managing Director in our Scottsdale office, submitted the winning name, Lira. Our Team also had the fun opportunity to meet Lira and her siblings.

The Ability Center is doing fantastic work serving our community. If you would like to learn more about The Ability Center, you can visit abilitycenter.org.

Katie Floyd and Katie Cristofoli overrun by active pups.

Ryan Walter taking one for the team.

Lira playing with her toy.

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Important Disclosure Information:

Hyperlinks to third-party information are provided as a convenience.

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Planning (Financially) For The New Year

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By Senior Advisor Jennifer Smiljanich, CFP® & Associate Advisor Austin Grizzell, CFP®.

As we begin the new year, we have some ideas for concrete actions to start your new year on the right foot, financially.

Review Retirement Contributions & Gifting Goals

In 2024, the IRS is boosting retirement contribution limits to new highs, as detailed in the table below. The IRS is also increasing the amount you may gift to an individual recipient to $18,000 in 2024, without affecting lifetime gift tax exemptions.

2024 Select Retirement Plan Contribution Limits

Source: “Retirement Topics - Contributions“. IRS, irs.gov. See Important Disclosure Information

Notify Your Accountant

It is important to notify your accountant of any contributions or donations that may have a tax consequence, as your tax documents that you provide your accountant may not explicitly state all of your contributions and donations. For example, retirement plan contributions, charitable donations (particularly qualified charitable distributions (QCDs) from your Traditional IRA if you are over age 70 1/2), and 529 plan contributions can all potentially help you save on taxes.

Keep SJS Apprised Of Trusted Advisor Changes

We want to keep up with changes affecting your family, including changes to your attorneys, accountants, or bankers. Please let us know if you have made changes to the professionals you work with.

Update Your Estate Plan

It is a good practice to regularly review your beneficiary designations to ensure they match your current wishes and align with your estate planning documents. Reviewing your estate planning documents periodically is also recommended, at least every five years or when there is a major change in your life situation.

Keep Your Wealth Protected

Wealth accumulation is only part of the equation; the other piece is wealth protection. We strive to help keep your personal data safe, including avoiding sending personal information via email and reaching out to you to confirm that requests we receive from you are legitimate. Taking additional steps like changing passwords periodically and adding multi-factor authentication can help to keep your information safe.

As always, we are here to help you put your best foot forward. We are glad to meet with you to help keep you on track!

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Important Disclosure Information & Sources:

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

Statements contained in this article that are not statements of historical fact are intended to be and are forward looking statements. All forward looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected.

Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal professional or tax professional for specific advice.

Hyperlinks to third-party information are provided as a convenience.

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SJS Outlook: Q4 2023

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You Can't Take It With You

By Managing Director & Senior Advisor Jennifer Smiljanich, CFP®.

Giving to family members or charitable organizations is a highly personal decision, often tied with emotional strings. We make gifts aligned with our values, and our choice to give, or not to give, tells other people something about us. I have always felt a strong connection to Catholic Charities. In 1951, my father’s family emigrated to the United States from Germany with a few suitcases and a dream of a better life. His family received clothing from Catholic Charities to make their transition to America easier. Now I want to give that opportunity to someone else!

For some, gifting to family takes precedence over making donations to charity. Keep in mind that you may gift up to $17,000 per individual in 2023, without generating gift tax. Gifts can be made to individuals using cash or securities.[1] Various types of account structures, including 529 Plans, trusts, and Roth IRAs, may be used to help your loved ones accomplish their future goals, and your own.

In addition to family gifting, many individuals support giving to organizations that aim to help their communities. Below, we’ve highlighted some strategies to make the most of your giving dollars:

1. Consider making gifts using IRA dollars: for those age 70 ½ or older in 2023, you may request that your IRA custodian cut a check directly to a charity (called a qualified charitable distribution (QCD)). This strategy works well for individuals who cannot itemize deductions on their tax return. Each IRA dollar given to a qualified non-profit organization does not count as taxable income to the IRA owner. Additionally, for those taking required minimum distributions (RMDs), these donations can be used to satisfy your RMDs.[2]

2. Donate highly appreciated securities: if you are making a meaningful gift to a qualified charity, you may be able to donate a stock, mutual fund, or exchange traded fund (ETF) in kind. By doing so, you can avoid realizing the gain on the security at sale (and the resulting tax). The charity can sell the security and does not realize the gain if they are a qualified organization.[3] A win for both the giver and receiver! Consider this example of donating $50,000 of securities directly to charity:

3. Donor advised funds: these types of accounts can be held through a community foundation or custodian, including Schwab, Fidelity, and Vanguard. An individual can donate cash or securities to fund an account; using highly appreciated securities is most advantageous. At the time of funding, the donor receives a tax deduction up to the value of the securities / cash donated. The original securities are then sold and may be invested in other securities. Then, the donor may use the account to make donations all at once, or over time, to charitable organizations. There are some caveats - the receiving charity must be a legitimate qualified charity and the donor cannot use donor advised funds in a way that the donor receives some benefit (i.e. to pay for a gala dinner).[4] Unfortunately, a QCD from an IRA may not be directed to a donor advised fund.

4. Cash is always an option: for smaller gifts, one-time gifts, and gifts to smaller organizations that might not have a brokerage account to receive securities, cash might be the simplest and most effective option.

Finally, some states offer tax credits for charitable donations that might be used to help families paying private school tuition or to aid other charitable organizations. Tax credits reduce taxes due dollar-for-dollar. Ohio recently began a tax credit program to support scholarship granting organizations (such as some private schools), up to $750 per individual or $1,500 per married couple.[5] Arizona also offers tax credits for donations to selected charitable organizations and foster care organizations.[6]

We are available to help you, in coordination with your tax or estate professional, consider how to best accomplish your giving goals to family or to organizations aligned with your values. While gifts must be completed before December 31st to count for the current tax year, giving can be done throughout the year to support the people and causes that are near and dear to you.

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Important Disclosure Information & Sources:

[1] “Frequently Asked Questions on Gift Taxes”. Internal Revenue Service, 2023, irs.gov.

[2] “IRA FAQs - Distributions (Withdrawals)”. Internal Revenue Service, 2023, irs.gov.

[3] “About Publication 526, Charitable Contributions”. Internal Revenue Service, 2023, irs.gov.

[4] “Donor-advised Funds”. Internal Revenue Service, 2023, irs.gov.

[5] “Scholarship Donation Credit”. Ohio Department of Taxation, 2023, tax.ohio.gov.

[6] “Credits for Contributions to QCOs and QFCOs”. Arizona Department of Revenue, 2023, azdor.gov.

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

Advisory services are provided by SJS Investment Services, a registered investment advisor (RIA) with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal or tax professionals for specific advice.

Statements contained in this article that are not statements of historical fact are intended to be and are forward looking statements. Forward looking statements include expressed expectations of future events and the assumptions on which the expressed expectations are based. All forward looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected.

Hyperlinks to third-party information are provided as a convenience.

SJS Outlook: Q3 2023

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SJS 2022 Annual Report

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SJS Outlook: Q4 2022

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Planning (Financially) For The New Year

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By Senior Advisor Jennifer Smiljanich, CFP® & Associate Advisor Austin Grizzell, CFP®.

The ending of one year and the transition to a new year offers an opportunity for reflection on past events, and a look forward to a new beginning. To that end, we have some suggestions for concrete actions to start your new year on the right foot, financially.

Review Retirement Contributions

In 2023, the IRS is boosting retirement contribution limits to new highs - who knew there was a silver lining to inflation? The new amounts allow those of us with earned income to save more for retirement. Please review your 2022 contributions vs. the new 2023 limits for retirement plans and IRAs if you are inclined to maximize those contributions.

2023 Selected Retirement Plan Contribution Limits

Source: “Retirement Topics - Contributions“. IRS, irs.gov.

Consider Gifting Goals

Like retirement plan contributions limits, the IRS also increased the amount you may gift to an individual recipient to $17,000 in 2023, without affecting lifetime gift tax exemptions.

Keep SJS Apprised Of Trusted Advisor Changes

We want to keep up with changes affecting your family, including changes to your attorneys, accountants, or bankers. Please let us know if you have made changes to the professionals you work with. Tax season is fast approaching, and we want to ensure we are sharing tax documents with your current accountant and contacting the correct attorney on any strategy updates. Likewise, if you have changed banking relationships, we would like to be sure we have instructions on file to send funds to you in a timely manner when you need them.

Update Your Estate Plan

Over time, family dynamics change. It is a good practice to regularly review your beneficiary designations. They should match your current wishes and align with your estate planning documents. Reviewing your estate planning documents periodically is also recommended, at least every five years or when there is a major change in your life situation.

Take Inventory

As we move through different phases of our financial lifecycle, we often accumulate assets and move on to the next thing. Is there a reason to keep a retirement plan in place from a former employer? Am I really monitoring my "play stock" portfolio? Can I simplify my portfolio? Your SJS advisor can help you evaluate whether these investments align with how you view risk and investing today, and whether they are supporting your goals!

Keep Your Wealth Protected

We focus many of our interactions around market outlooks, how your portfolio is doing, and how it supports what matters to you. Wealth accumulation is only part of the equation, the other piece is wealth protection. We strive to help keep your personal data safe, including avoiding sending personal information via email and reaching out to you to confirm that requests we receive from you are legitimate. Taking additional steps like changing passwords periodically and adding two-factor authentication can help to keep your information safe.

As always, we are here to help you put your best foot forward. We are glad to meet with you to help keep you on track!

---

Important Disclosure Information & Sources:

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

Statements contained in this article that are not statements of historical fact are intended to be and are forward looking statements. All forward looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected.

Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal professional or tax professional for specific advice.

Hyperlinks to third-party information are provided as a convenience.

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Suggested Reading

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Supporting You At A Time Of Loss

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By Managing Director & Senior Advisor Jennifer Smiljanich, CFP®.

Confident. Secure. Serene. These adjectives go out the window when we experience the loss of a spouse. Suddenly, the whole world can seem daunting and unfamiliar. How does one find their footing and balance?

We know that losing a spouse is one of the most stressful challenges of our lifetime. AdventHealth ranks the stress level above other life events, like divorce, job loss, new responsibilities in marriage, or becoming a parent.[1]

When you lose a loved one, particularly a spouse, we are here for you. We have helped many individuals over the last twenty-seven years find their footing and renewed confidence. How do we do that?

First, we understand that a surviving spouse needs time to grieve and to find a path forward. It is a process, and it takes time. You need to be with family and loved ones. You’re learning to live without them, and it includes taking over new responsibilities, changing family dynamics, spending time alone, and struggling with a new normal. Grief isn’t limited to a state of mind, and it doesn’t just gradually fade. Many times the last thing a surviving spouse wants to be doing is making financial decisions.

We encourage the surviving spouse to be patient and deliberate to make financial decisions, especially those that are significant. A family member of mine confided that for a year after her husband passed away, she felt like she was in a fog. She had a difficult time remembering things and felt panicked at the thought of having to decide. At this stage, we want to help the survivor evaluate financial steps that should be taken – reviewing benefits, pensions, medical plans, and Social Security. 

Finally, as time goes on, we can help with financial education and co-thinking longer-term decisions. Chances are the deceased spouse managed at least some of the financial decision-making. For us, helping the survivor feel confident that their investments are positioned to help them achieve their goals is important. We can help model decision-making for the longer term, perhaps downsizing or moving to a single-story home; considering a move closer to adult children or other family; gifting to family or charity; or adjusting estate documents to account for changes in circumstances. Our goal is to ensure you have all the facts to make thoughtful decisions.

As SJS has developed our relationship with you over the years, we have celebrated your successes and joyful times, and have been honored to be of service to you in your times of personal challenge and loss. We stand ready to be there when you need us to listen, or to hold a hand. You come first.

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Important Disclosure Information & Sources:

[1] “Death of a Loved One is the Number One Stress Driver — Learn How to Cope“. AdventHealth, 05-Mar-2019, adventhealth.com.

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

Advisory services are provided by SJS Investment Services, a registered investment advisor (RIA) with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal or tax professionals for specific advice.

Hyperlinks to third-party information are provided as a convenience.

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Suggested Reading

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Transition From Work Income To Retirement Income

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By SJS Investment Services Managing Director & Senior Advisor Jennifer Smiljanich, CFP®.

Retirement. There is a lot of emotion and change tied up in this single word - beginnings, endings, opportunities, uncertainties, regrets, excitement. In our conversations with clients over the last 25+ years, we have observed that one of the most challenging transition points in life is the move from “work” to “retirement.” In some ways, as much as this change results in a physical shift - no longer going to work - the mental shift from saving to spending sometimes is a bigger adjustment.

We spend a lot of our adult lives developing habits; hopefully, most of them good ones! Author James Clear has written about human behavior and how we form habits. He commented on a study by Phillippa Lally that found that people take somewhere between 18 to 254 days to form a new habit, depending on behavior, the person, and the circumstances.[1] So if we think about developing a retirement mindset as a new habit, transitioning from the idea of saving our nest egg to being comfortable spending it, it might take between two and eight months to gain comfort. Clear’s takeaway is that “understanding this (is a process) from the beginning makes it easier to manage your expectations.” 

So how do we get comfortable with transitioning our nest egg to an income stream? In our working lives, we are used to receiving a regular income stream, whether from a bi-weekly paycheck, paid invoices for consulting income, or payment on completion of a project. So why should it be different in retirement? Receiving a distribution of income on a regular basis - monthly or even twice a month - helps to create that regularity that is comforting. Others may find that a quarterly distribution is adequate for meeting cash flow needs. Consider the frequency that seems most comfortable, and we can work with you to support it!

Second, the need for emergency or “rainy day” funds doesn’t go away. Just because you may now be retired, the twists and turns of life don’t stop. Emergency funds can cover pleasant opportunities like taking an unplanned trip, or it might be available to cover unexpected necessities like an air conditioning unit that suddenly needs replacement or a bill for a dental emergency. We typically recommend setting aside three to six months’ worth of expenses, so when life throws a new opportunity or cost our way, we can feel a little more comfortable knowing there is some financial leeway!

Third, we understand that your “routine” is bound to change. As you have more time to spend time with family, friends, & loved ones, to enjoy new or old hobbies & activities, to travel, or to focus on all those neglected home projects, normal routine is about to be redefined. Take some time to find the rhythm of your new life and endeavors, and we will help guide you along the way.

Finally, we can help you answer the questions of “how much to withdraw” and “from what account do I take it.” We can model how your nest egg can best supplement income from part-time work, pensions, and / or Social Security to meet your lifestyle needs, as well as when you might start those different income streams. In collaboration with your tax professionals, we can help evaluate whether your income should come from after-tax or retirement accounts. Likewise, we can help you determine the stock-to-bond mix that supports the growth you might need, at a risk level you are comfortable with.

When we spend as much as thirty or more years of our life working and saving for retirement, the idea of “undoing” our life’s work might seem a little unsettling. At SJS, we have had the privilege of guiding many of our clients through the preparation and transition to retirement. We are here for you, to lend an ear, to listen, and hopefully to help make the transition a more smooth and enjoyable one!

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Important Disclosure Information & Sources:

[1] “How Long Does it Actually Take to Form a New Habit? (Backed by Science)“. James Clear, jamesclear.com.

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

Advisory services are provided by SJS Investment Services, a registered investment advisor (RIA) with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal or tax professionals for specific advice. This material has been prepared for informational purposes only.

Statements that are not statements of historical fact are intended to be and are forward looking statements. All forward looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected.

Hyperlinks to third-party information are provided as a convenience and we disclaim any responsibility for information, services or products found on websites or other information linked hereto.

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The Case For International Diversification

By SJS Investment Services Managing Director & Senior Advisor Jennifer Smiljanich, CFP®.

We believe that diversification is one of the foundational principles of investing. While many of us might have a favorite stock or two, it is not ideal for most of us to invest in just a few names or in particular parts of the market, such as sectors, countries, or regions. While concentrating portfolios may certainly be a way to create wealth, it also concentrates risk.

Rather, if your concern is to protect your investments, reducing risk by investing across a broad spectrum of asset types may be the better strategy. American film producer Jerry Bruckheimer may have said it best:[1]

I mean if you put all of your eggs in one basket, boy, and that thing blows up you've got a real problem.

Film-making aside, as investors, we know that it is difficult to be able to predict the best part of the market to invest in over any length of time. Case in point, who would have predicted the strong US stock market performance of 2020, especially if we go back to March of last year?[2] While history has shown that US stock markets (as represented by the S&P 500 Index) have handily outperformed international developed markets (as represented by the MSCI EAFE Index) in nine of the last eleven calendar years, we may be due for a sea change. From 2002-2009, it was international stock markets that outpaced US stock markets.[2]

Source: Morningstar, as of 31-Dec-2020. See Important Disclosure Information.[2]

Another potential benefit of global diversification is exposure to different currencies. Diversified currency exposure can protect your portfolio from unexpected risks, such as inflation. Given the start of a weakening dollar, international markets might again take the lead in the performance race. When the US dollar weakens, international stocks are worth more in US dollar terms. This was generally true from 2001-2010, when the international markets last experienced their stretch of outperformance.[3]

Source: “U.S. Dollar Index (DXY)”. Wall Street Journal, 30-Mar-2021, wsj.com. See Important Disclosure Information.[3]

As we enter the modified “Awards Season,” cinema buffs may recall the 2020 Oscar for Best Picture went to the foreign film Parasite, which became the first non-English language film to win the Academy Award for Best Picture.[4] Could this be a coincidental foreshadowing of what’s to come in the markets? We’ll have to wait and see what the envelope holds! But know that you can sit back, relax, and enjoy the show, knowing that your MarketPlus Portfolio is well diversified and strives to be positioned for whatever the future brings.

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Important Disclosure Information & Sources:

[1] “Jerry Bruckheimer Quotes”. quote.org.

[2] Morningstar, as of 31-Dec-2020. The S&P 500 Index is a free float-adjusted market-capitalization-weighted index of 500 of the largest publicly traded companies in the United States. The MSCI EAFE GR USD Index is a free float-adjusted market-capitalization-weighted index that measures the performance of the large and mid cap segments of developed markets, excluding the US & Canada equity securities.

[3] “U.S. Dollar Index (DXY)”. Wall Street Journal, 30-Mar-2021, wsj.com. The U.S. Dollar Index (USDX, DXY, DX) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partners' currencies.

[4] “Parasite (2019 film)”. Wikipedia, en.wikipedia.org.

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

Indices are not available for direct investment. Their performance does not reflect the expenses associated with management of an actual portfolio.

MarketPlus Investing® models consist of institutional quality registered investment companies. Investment values will fluctuate, and shares, when redeemed, may be worth more or less than original cost.

Hyperlinks to third-party information are provided as a convenience and we disclaim any responsibility for information, services or products found on websites or other information linked hereto.

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Thanks IRS, Here We Go Again!

By SJS Investment Services Managing Director & Senior Advisor Jennifer Smiljanich, CFP®.

The IRS recently announced a delay to the date for filing and making 2020 federal tax payments, from April 15, 2021 to May 17, 2021.[1] This change applies to individual returns.

While some states have adjusted their tax return filing and payment deadlines to match the new federal dates, each state is making their own decision. To see if your state has delayed its filing deadline, you may check the Federation of Tax Administrators website.

For those of you who make estimated tax payments, payments will be due April 15. As always, please be sure to check in with your tax professional for guidance.

Also of interest, the IRS has extended the deadline to make individual retirement account (IRA and Roth IRA) contributions for tax year 2020 from April 15, 2021 to May 17, 2021.[2] This May 17 deadline also applies for 2020 contributions to health savings accounts (HSAs).[2]

If you have questions, please let us know. We are happy to help!

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Important Disclosure Information & Sources:

[1] “Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline“. IRS, 17-Mar-2021, irs.gov.

[2] “IRS Extends IRA Contributions Deadline”. Melanie Waddell, 29-Mar-2021, thinkadvisor.com.

Advisory services are provided by SJS Investment Services, a registered investment advisor (RIA) with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal or tax professionals for specific advice. This material has been prepared for informational purposes only.

Hyperlinks to third-party information are provided as a convenience and we disclaim any responsibility for information, services or products found on websites or other information linked hereto.

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Financial Gifting Strategies For Your Family

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By SJS Senior Advisor & Managing Director Jennifer Smiljanich, CFP®.

You'd like to experience the joy of gifting to your children and grandchildren during your lifetime. You'd like to be able to put a smile on the face of your child who is struggling to make ends meet. You are concerned about potential changes to estate tax laws and whether that may impact how much of your estate goes to Uncle Sam. Do any of these situations strike a chord with you?  

In the last year, we have heard from many clients who would like to explore how they can make gifts to family members without affecting their own financial security. Some worry about potential tax changes, and how those may affect what legacy they can leave to future generations. 

We have helped families create and implement gifting strategies for the past 25+ years. We are glad to help offer guidance to you and explain possible gifting options. Please note that all of the below gifting options apply to both children and grandchildren.

Gifting Money Directly

Each year, an individual may give up to $15,000 (for 2021) per child - or up to $30,000 for a child and their spouse - without using up any of the individual’s lifetime gifting limits.[1] A couple may gift a combined $30,000 per year per child, or a combined $60,000 to a child and their spouse.[2]

If an individual were to die in 2021, they could leave up to $11.7 million ($23.4 million for couples) to beneficiaries without paying federal estate and gift taxes.[1] There is discussion that these high estate and gift tax exemptions might be on the chopping block; President Biden has proposed decreasing estate and gift taxes levels to those last seen in 2009: $3.5 million per person for the estate tax, $1 million for the gift tax, and a top tax rate of 45%.[3]

Gifting For Specific Purposes

Tuition And Medical Expenses

Many parents want to gift money for specific purposes, instead of gifting cash with no limitations on potential uses. For example, there are some exceptions to the annual $15,000 gifting limits, including:[1]

• Tuition for someone else

• Medical expenses for someone else

Education Account: 529 Plan

To help pay for your child’s future education costs, you can create a 529 plan with your child (or grandchild!) as the beneficiary, and then donate to the 529 plan subject to gift tax rules. 529 plans can be invested in broad-market mutual funds, and can grow tax-free and penalty-free as long as withdrawals are used for the beneficiary’s qualifying education expenses.[4] A donor to a 529 plan has the ability to "frontload" gifts of up to five times the annual gift tax exclusion. However, if the donor were to pass away before the full five years, a portion of their gift could be added back into their estate and may result in gift taxes.[5]

Retirement Account: Roth IRA

You can also help your child save for retirement: as long as your child earns enough taxable income (but below the Roth IRA income limit) and has not contributed to a Traditional IRA or Roth IRA for the year, you can contribute $6,000 (2021 limit) directly to your child’s Roth IRA each year.[6]

Gifting Appreciated Securities

Generally, gifts can be made in cash or using appreciated securities (stocks, bonds, mutual funds, ETFs). Gifting highly appreciated securities to someone in a lower tax bracket may result in lower taxes for your family as a whole.[7]

Family Loan

If you want to help your child but don’t want to gift money, you can instead loan money. This may help your child get a loan for a specific purpose at a lower interest rate than third-party loan vendors may charge. To ensure the loan’s legitimacy, the IRS mandates that any family loan must have a signed written agreement, a fixed repayment schedule, and a minimum interest rate (you can use Applicable Federal Rates as the minimum).[8] If the loan exceeds $10,000 or the loan recipient uses the money to produce income (such as investing in stocks or bonds), you will need to report the interest income on your taxes.[8] We recommend that you consult with your tax advisor.

Summary

Parents often tell us: “We want to give our children enough so that they feel they could do anything, but not so much that they could do nothing.“ The better you manage your finances, educate your children on financial topics, and plan your specific gifting strategies, you may not have to gift as much as you think to help give your children all sorts of opportunities.

As always, we are here to help you go over gifting strategies, and help you choose and implement the best strategies for your family situation. If you have any questions or just want to talk with us about gifting strategies, please feel free to reach out to us.

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Important Disclosure Information And Sources

[1] “Frequently Asked Questions on Gift Taxes“. IRS, irs.gov.

[2] “Will You Owe a Gift Tax This Year?“ ElderLawNet, 06-Mar-2021, elderlawanswers.com.

[3] “IRS Announces Higher Estate And Gift Tax Limits For 2021“. Ashlea Ebeling, 26-Oct-2020, forbes.com.

[4] “Topic No. 313 Qualified Tuition Programs (QTPs)“. IRS, irs.gov.

[5] “Do You Have to Pay Gift Taxes on 529 Plan Contributions?“ Mark Kantrowitz, 28-Jan-2020, savingforcollege.com.

[6] “Roth IRAs“. IRS, irs.gov.

[7]“How to Give Stock as a Gift (And Why Tax Pros Like The Idea)“. Chris Davis, 15-Dec-2020, nerdwallet.com.

[8] “Family Loans: Should You Lend It or Give It Away?“ Schwab, 24-May-2019, schwab.com.

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal or tax professionals for specific advice. This material has been prepared for informational purposes only.

Statements contained in this post that are not statements of historical fact are intended to be and are forward looking statements.  Forward looking statements include expressed expectations of future events and the assumptions on which the expressed expectations are based.  All forward looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown  risks and uncertainties which could cause actual events or results to differ materially from those projected.

Hyperlinks to third-party information are provided as a convenience and we disclaim any responsibility for information, services or products found on websites or other information linked hereto.

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Generation To Generation - Financial Planning Questions As You Get Older

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By SJS Managing Director & Senior Advisor Jennifer Smiljanich, CFP®.

Sometimes we are lucky to find silver linings in times of adversity. As I reflect on all the change that has occurred in 2020, I take away an appreciation of being a part of our SJS clients’ lives. I began working in the planning and investment management profession more than 20 years ago, with the desire to help young people who didn’t understand much about money and investing. Over the years, I have gotten to know and work on behalf of some exceptionally wonderful individuals and families with diverse backgrounds and interests, ranging in age from 20 to 100.

Along the way, we have all added a few years to the bottom line, myself included. As we age and transition along generational positions, from child, to parent, to grandparent and beyond, our priorities and worries also tend to change. And in some ways, perhaps, so does our view of money and what we would like it to do for us and for our families.

As we move from young adulthood into careers and perhaps marriage and child-rearing, our priorities shift to try to answer questions like:

As we shift into retirement or semi-retirement, our priorities tend to shift again. Maintaining good health is more important, as is spending time with our loved ones, considerations of second or third careers, finding purpose in giving back to our communities, and perhaps enjoying activities that we left behind earlier in our lives. For many, thoughts also turn to legacy and what values, stories, and lessons are being shared with the next generations.

The questions that our team hears being asked, and helps to advise on, become increasingly personal and nuanced, as follows:

We are in a time, too, when the generational and financial makeup of the country is changing. The Silent Generation, those who were born between 1928 and 1945, have reached their 75th birthday or more (we won’t tell). And the large cohort of Baby Boomers following behind have reached their mid-50s, or as old as 74 this year. According to Visual Capitalist, these two generations combined hold 70% of American household assets in 2020.[1] As time goes on, there will be significant financial decisions to be made to provide for the well-being of our country’s oldest generations and to help the generations that follow.

We know that our financial decisions take on more meaning as we age, and there are often values and emotions that drive these decisions as we hit different generational milestones. Over the last 25 years, the SJS team has helped many families work through these questions and transitions. We are privileged to hear your stories, to be a part of your lives, to watch your families grow, and to be here for you when you need us. We are grateful for your trust, and we look forward to serving you and your families in the years to come.

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Important Disclosure Information and Sources:

[1] “Charting the Growing Generational Wealth Gap.” Omri Wallach, 02-Dec-2020, visualcapitalist.com.

Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal or tax professionals for specific advice. This material has been prepared for informational purposes only.

Hyperlinks to third-party information are provided as a convenience and we disclaim any responsibility for information, services or products found on websites or other information linked hereto.

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Are Your Assets Protected From Cyber Attack?

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By SJS Senior Advisor & Managing Director Jennifer Smiljanich, CFP® and SJS Associate Advisor Catherine Stanley.

If I asked you the question: How have computers, mobile devices, and the Internet benefited you, you probably would have no trouble answering. These tools have become such a part of everything we do that we often take them all for granted. The fact is – technology has completely upended how we view the world, how we share information, how we do business, and how we communicate.

There is, however, an undesirable side to the technology revolution that seems to reveal its depths daily. The alter ego to the Internet’s free-flow of information is the creature called “cybercrime.” And as long as we are wired together, the network we all enjoy will include the criminal element from around the globe.

Case in point, the Internal Revenue Service recently announced that Americans who received COVID-19-related stimulus checks have been subject to many text and email scams, thus costing many Americans significant money (and time) at a time when they may most need it.[1] According to PurpleSec LLC, cybercrime since COVID-19 onset is up nearly 600% compared to previous years.[2] The IRS Commissioner recently said, "Criminals are relentlessly using COVID-19 and Economic Impact Payments as cover to try to trick taxpayers out of their money or identities. This scam is a new twist on those we've been seeing much of this year. We urge people to remain alert to these types of scams."[1] It is important to emphasize that the IRS doesn't initiate contact with taxpayers by email, text messages, or social media channels to request personal or financial information.[3]

At SJS, we know that cybercrime is becoming more prevalent, and we recognize that no business is immune. We are aware that client accounts may be targeted, and email fraud can be a real threat.

CYBERCRIME IS COMMON

According to a Securities and Exchange Commission report from February 2015, 74% of Registered Investment Advisors like us reported they have experienced cyber-attacks, primarily involving malware and fraudulent emails; we think that this number has probably increased over the past few years.[5] Our core value of “Continuous Improvement” comes into play as we work vigilantly to keep up with an ever-changing landscape. 

The custodians we typically work with, including Schwab Institutional and TD Ameritrade, are deeply committed to safeguarding client assets. Both custodial web sites use advanced encryption technology, including 128-bit Secure Sockets Layer (SSL3) encryption. This allows us and you to communicate and share information more safely with them. Both custodians also maintain advanced firewalls, which separate public web servers from the servers that contain account holders’ personal data, to keep unauthorized parties from accessing your personal information. Additional measures, including security certificates, token technology, anomaly detection, and restricting access to client information further help to protect the privacy of your information.[6][7]

There are several other steps you can take to help protect your personal, private information:

• Update your computer’s operating system and browser.

• Activate / install your computer’s firewall, antivirus software, and anti-spyware software.

• Use two-factor authentication (such as requiring both an online password and phone security code text when logging into an account).

• Be cautious using public computers.

• Use wireless networks you trust.

• Don’t use sensitive information in your login ID or password, and especially avoid using your social security number and date of birth.

• Create a unique password and change it at least every six months, and DON’T share it with others.

• Be very cautious responding to an email, call, or text that asks for your account number, user ID, PIN, password, or other personal information, even if it appears to be from a source you trust or recognize. Always double check that the source is legitimate, such as by asking for a separate way to provide this information and searching online whether the request is safe.

• Make sure that SJS has updated contact information for you, especially email and telephone numbers – including an emergency contact, if you so desire.

So the next time we ask you to provide a verbal confirmation before we act on an email request, or when we send you information via your MySJS portal or an encrypted email, know that we require this extra step with your best interests in mind. Our goal is to make sure any attempted fraud is unsuccessful. It’s important to be aware and prepared, but we are hopeful this information will reassure you, not raise additional concerns.

If you want to learn more about our privacy and security policies, or those of the custodians we typically work with, please ask us. In the meantime, we’ll continue doing our best to safeguard your information, leaving technology a true enhancement to our lives.

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Important Disclosure Information And Sources:

[1] “Security Summit partners warn taxpayers of new COVID-related text scam.“ Internal Revenue Service, 04-Nov-2020, irs.gov.

[2] “2020 Cyber Security Statistics.“ PurpleSec LLC, 2020, purplesec.us.

[3] “Tax Scams/Consumer Alerts.“ Internal Revenue Service, irs.gov.

[4] The numbers refer to internet crimes reported to the governmental Internet Crime Complaint Center.
Methodology of evaluating loss amounts: FBI IC3 Unit staff reviewed for validity all complaints that reported a loss of more than $100,000. Analysts also converted losses reported in foreign currencies to dollars. The final amounts of all reported losses above $100,000 for which the complaint information did not support the loss amount were excluded from the statistics.

[5] “Cybersecurity Examination Sweep Summary.“ Office of Compliance Inspections and Examinations, 03-Feb-2015, sec.gov.

[6] “Schwab Bank Online Security.“ Charles Schwab Bank, schwab.com.

[7] “Our Security Procedures.“ TD Ameritrade, tdameritrade.com.

Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. This material has been prepared for informational purposes only.

Hyperlinks to third-party information are provided as a convenience and we disclaim any responsibility for information, services or products found on websites or other information linked hereto.

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Always Expect The Unexpected

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By SJS Senior Advisor & Managing Director Jennifer Smiljanich, CFP®

Life is a journey, predictably full of the unexpected. We do our best to plan for the future we hope we will have, and then life events get in the way and throw us for a proverbial loop.

We have all experienced some variation of the unexpected. Sometimes, the unexpected can result in a positive change, and we count our blessings. It can get more challenging when an event has a negative outcome – you or a spouse lose a job or have a tough year in your business, a family member experiences a serious illness or disability, a child returns home after college with no future plans, and so on.

One of the most difficult experiences we face in life is the loss of a loved one, whether unexpected or not. Family members may be left with a lot of pieces to pick up and put back together, especially if they aren’t familiar or involved with the family’s finances. This can lead to uncertainty, and put a lot of pressure on the family at a time when they are least prepared to handle it. In our experience, when a person leaves a well-planned out path for their family, it provides some relief to their loved ones at a time of grief, even as their loss may still be difficult.

While we can’t be fully prepared for every possible contingency, we know there are smart things we can do to make life a little easier in the stressful times. So what can you do now to ease the burden on your loved ones in the event that some unexpected event prevents you from caring for your family?

Keep a list of important websites, usernames and passwords in a secure location, and – most importantly! – tell someone where to find it

This list might include email accounts, websites where you store family photos, and social media sites, in addition to information about sites where you can access your bank accounts and other financial information. Make a note to update this list any time passwords are changed. There are a number of apps that are available to store personal information. In fact, PC Magazine annually rates the best password manager appsbest password manager apps.

Review your estate plan periodically with your attorney

At least every five to ten years, or sooner if you experience a significant change in your personal situation. Also, take care to review your beneficiary designations every few years. If you have young children, be sure that the guardians you have listed in your will are still appropriate.

Consider keeping a list of contact information for trusted advisors and others who may be able to help fill in the blanks for your family members

If you rely on certain individuals to care for family members, pets, or even a second home, these might be useful contacts to include as well. There are web-based platforms, such as Everplans, that will store and organize this type of data for you for a fee.

 No matter where life’s journey may take you, please know that all of us at SJS are here for you, all the time, every time. Let us know when and how we can help, whether by analyzing a financial decision, helping you understand a document, or just being there with an ear to listen.

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Important Disclosure Information & Sources:

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal or tax professionals for specific advice. This material has been prepared for informational purposes only.

Hyperlinks to third-party information are provided as a convenience and we disclaim any responsibility for information, services or products found on websites or other information linked hereto.

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Leave The Worrying To Us

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By SJS Managing Director & Senior Advisor Jennifer Smiljanich, CFP®.

You’ve no doubt heard the phrase, “Patience is a virtue.” It can take extra effort to practice patience as an investor. With today’s advances in trading technology and the fast pace of news, we’ve seen daily swings of one percent or more in the market happen more often.[1] And if you’re like the many individuals who follow the daily gyrations of the market, then you know it doesn’t take much before stress creeps in.

That’s why you have SJS on your side. We help take the worrying right out of investing. Leave it up to us to be disciplined and patient. Markets will go up and down, that’s their nature. We believe it is more useful to spend our time on the things we can control. Focusing our efforts on these “controllables” can make a difference in the success of your investment experience.

Investment Costs

Dalbar’s Quantitative Analysis of Investor Behavior study on investor performance found that the average stock mutual fund investor underperformed the S&P 500 benchmark by 4.13% annually from 2010 through 2019.[2] As demonstrated in the graph below, for a $1,000,000 starting investment, this underperformance lowered growth by more than $1,000,000 compared to the S&P 500 benchmark. Higher management fees cause much of this underperformance for typical stock mutual fund investors.[3]

Another study suggests that traditional hedge fund management and performance fees consumed 64% of investor returns on average from 1995 to 2016.[4] Talk about a haircut on your net return!

At SJS, we believe that investors are entitled to receive the returns of the market. So we work hard to design portfolios in a way to keep your average cost of investing as low as possible.[5] Because just like in running a business, revenue is important, but the bottom-line profit determines whether you will stay in business and survive the long run.

Keeping your expenses low is important, that’s why many of our client portfolios are invested in institutional class mutual funds with average expenses ranging from 0.22% to 0.25%.

Taxes

Tax rates are out of our control, but we keep an eye on your portfolio design to manage activities that may generate tax. For example, SJS considers taxable events that might occur as a result of a need to rebalance your portfolio. We look for opportunities to reallocate within tax-deferred accounts to avoid generating taxable capital gains. As for stock mutual funds, we strive to select those that offer low turnover of securities.

We are always looking for ways to be mindful of the tax bite. That’s why we often position certain investments, such as publicly traded real estate or taxable high-coupon bonds in tax-deferred accounts, because they may generate income that is taxed at ordinary rates. These particular tax rates are often less favorable than capital gain rates.

Trading

There is no ‘free lunch’ when it comes to trading. There is a cost to buying and selling a security, whether it is a mutual fund, stock or bond.  While we generally support the idea of buying and holding a broad market portfolio, there are times when different asset classes or baskets of securities become heavier than their original weighting.  And this can cause your portfolio’s risk level to change.  If the change is small enough, we accept the incremental risk rather than place a trade.  But when the weighting changes enough, we accept the cost of trading as necessary to keep the risk in your portfolio at a level you are comfortable with.

When managing an investment portfolio, there is a lot to consider. If you have any questions about your investment portfolio, please reach out to us. We are always here to listen and assist!

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Important Disclosure Information and Sources:

[1] “The Craziest Month in Stock Market History.“ Nick Maggiulli, 01-Apr-2020, ofdollarsanddata.com.

[2] “2020 QAIB Advisor Edition.” DALBAR, 2020, dalbar.com.

[3] “See the difference low-cost funds can make.“ Vanguard, 2020, vanguard.com.

[4] “The Performance of Hedge Fund Performance Fees.“ Itzhak Ben-David, Justin Birru, & Andrea Rossi, 2020, Ohio State University Fisher College of Business Research Paper Series.

[5] MarketPlus Investing® models consist of institutional quality mutual funds. Mutual fund investment values will fluctuate, and shares, when redeemed, may be worth more or less than original cost.

Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide tax advice. Please consult your tax professional for specific advice. This material has been prepared for informational purposes only.

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

Indices are not available for direct investment. Their performance does not reflect the expenses associated with management of an actual portfolio. In US dollars. The index performance figures assume the reinvestment of all income, including dividends and capital gains. The performance of the indices was obtained from published sources believed to be reliable but which are not warranted as to accuracy or completeness.

The S&P 500 Index is a free float-adjusted market-capitalization-weighted index of 500 of the largest publicly traded companies in the United States.

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Saving as a Young Professional: Give Yourself Options

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By SJS Associate Advisor Catherine Stanley and SJS Managing Director & Senior Advisor Jennifer Smiljanich, CFP®.

Never in a thousand years could we have imagined what it would be like to personally live through the upheaval of this 2020 global pandemic! While there are some silver linings, to be sure, many of us, to some degree, have been affected by feelings of fear, isolation, disruption, limitation, and boredom. Some of us are left feeling a little vulnerable, and it might not feel good.

But sometimes, uncomfortable feelings can serve as a catalyst, and can move us to take action that might not occur during times of “business as usual,” when we may feel happy and at ease. The uncertainty of our world today can open us up to thinking about how we can make our life a little safer, better, or a bit more comfortable in the future. Ironically, one of the greatest things we can do in an attempt to ensure a better future is to acknowledge that something should be done, and to start as young as possible with a plan to make it happen.

The something referred to here is saving and investing for your future. For young professionals in their 20s and 30s, the future, and the idea of retirement can seem very far off and too hard to predict. Not knowing where to start can seem overwhelming, to the point where doing nothing is an easy default.

Although we never know what tomorrow will bring, we do know that our future self will want to be able to choose from options. One of the ways for this to happen is for young professionals to start a savings and investing plan today, so that the power of time and compounding may work on your side. Wise decisions and actions today can often give you more options tomorrow. We hope the uncertainty of this pandemic, and knowing you have someone at SJS to talk to, may nudge you to start your savings and retirement plan. If you’ve already started, well done!

To that end, we will revisit some of the tried and true strategies behind a solid investment plan.

Live within your means

Simply put, spend less than you earn. By doing so, you can save to take care of future YOU! There are many thoughts on how much you should save, but according to George S. Clason, author of The Richest Man in Babylon, at least 10%. Mr. Clason states, “A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much more as you can afford.”[1]

There are many good budgeting tools available to help you track how much you are spending to live within your means.[2] If you don’t know how much you spend, this is a good place to start!

Automate your savings / investing so it has priority

For every paycheck, set up an automatic transfer to your savings or brokerage account. Making YOU important enough to come first is very affirming!

Start young, start early, start now!

I mentioned the power of compounding before, and I cannot explain it any better than this powerful graphic. Take a look, and trust that you are doing yourself a huge favor by acknowledging its power and harnessing it for your own good. Save as soon as you can, as much as you can, and let time and interest on interest help build your nest egg!

Be prepared

By doing some pre-planning and using the tools available to you, you can increase the likelihood of staying on track.  

• Have a Plan B.  Set aside funds in case of an emergency. Ideally, your emergency fund should be between 3-6 months of living expenses, kept in a safe, liquid vehicle such as a savings account or money market account.[3] So when your next “uh, oh” moment comes along, you will be ready.

• Don’t just save. Invest for retirement.  With investing, you will need to learn about the trade-off between risk and reward. Investments that give you higher returns may potentially get you to your retirement goal sooner, but they inherently come with greater risk. On the other hand, the safest of investment vehicles, such as a US Treasury bill, probably won’t earn enough return to outpace inflation over time. Find the right balance for you! Seek out a CFP® professional or trusted investment adviser to help you set a plan that meets your needs and stay the course. If you have a long-term plan and stick with it, then the daily volatility in the market may be just noise.

• Maximize your resources.  If your employer has a 401(k)-matching plan, take advantage of it to the greatest extent that you can…matching funds are free money! Consider making IRA contributions if you can. Pre-tax contributions to retirement plans and IRAs may decrease the amount of tax you pay on your income each year, and the funds will grow tax-deferred, compounding over the 30+ years you have until retirement.

• Start a 529 education savings plan as a way to use compounding to help pay for your child’s college education. There is often a state tax deduction or credit available for 529 plan contributions, varying by state.

Starting your savings and investment journey today means you’ll have to balance today’s current enjoyment with tomorrow’s future enjoyment. Decisions or circumstances along the way may create diversions from the path, but if you have a strategy, you can always come back to it. The goal is to stay on track so that over time, future You will appreciate that you gave yourself options to choose from. At SJS, we are happy to have these conversations with you, and to help guide you to an investment plan for the long-term that you can stick with.

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Important Disclosure Information and Sources:

[1] The Richest Man in Babylon. George Clason, 1926, Berkley.

[2] “10 Simple and Free Budgeting Tools.” Maryalene LaPonsie and Lars Peterson, 21-Jun-2019, money.usnews.com.

[3] “Emergency Fund: What it Is and Why It Matters.” Margarette Burnette, 20-Mar-2020, nerdwallet.com.

Advisory services are provided by SJS Investment Services, Inc.., a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide tax advice. Please consult your tax professional for specific advice. This material has been prepared for informational purposes only. There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

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