Bobby Adusumilli 1/6/25 Bobby Adusumilli 1/6/25

Planning Financially For The New Year

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

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!

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.

Planning (Financially) For The New Year

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

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

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!

Important Disclosure Information & Sources:

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

Planning (Financially) For The New Year

We have some suggestions for concrete actions to start your new year on the right foot, financially.

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:

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

Checklist For Selling Your Business

Your process for selling your business will likely include these steps.

By SJS Investment Services Founder & CEO Scott Savage.

Your process for selling your business will likely include the following steps:

Determine the age at which you want to leave the company

This will help set the framework for your plan.

Assess your financial situation and your desired retirement lifestyle

This step will help you determine the cash flow you need for retirement.

Determine the gap between your savings and your desired lifestyle

Ideally, the sale of your company will cover that gap. You’ll need to problem-solve if it won’t.

Decide how you want to transfer the company

Knowing the “how” will help you understand the appropriate steps forward.

Get a valuation of your company

Many people think they can ignore a valuation since the sale is years down the road. However, a valuation is essential. By understanding your present value, you can act to increase the value and get the sale price you need to retire.

Assess and implement the steps you need to increase value

You want to look at factors such as your customer base, systems and processes, and cash flow. We would argue, however, that the most important factor is you - or better yet, the lack of you.

Your buyer will want to know that the company can function without you. Start stepping back from the day-to-day running of your company and give your management team the opportunity to hone their skills. Giving up control may challenge you, but it is essential for maximizing your company’s value.

Review your financial picture

If you have always kept your cash in the business, now is the time to diversify your wealth. Factors outside of your control such as a recession can hurt your company’s bottom line. Diversifying your wealth can help see you through rough times and allow you to adjust your plans from a place of strength rather than weakness.

Review your professional and personal financial picture, including retirement accounts and other investments, insurance, and estate plans.

This step may be difficult as many business owners feel in control of their company’s destiny but not in control of an investment portfolio.

Understand the tax impact

Your tax picture will depend on your company’s structure and the type of sale. You want to understand this picture and implement strategies across all areas of your wealth to reduce the tax impact. The fewer taxes you pay, the more you will have for retirement.

Find a buyer and agree on financing terms

Most agreements allow the seller to purchase the business over time. This can be ideal for both of you, as it will allow for a slower transition out of the company, increase your team’s strength in running the firm, and allow the buyer to avoid an upfront investment they cannot afford. But you may have different plans, and by this point in your journey, you should understand those plans and seek a purchaser who will meet as many of those terms as possible.

Implement the sale

Make sure to communicate with your employees and customers. Provide the pertinent details, and if it’s feasible, make in-person introductions. Both your clients and staff will have questions; be prepared and be transparent. It’s in your best interest that everyone affected by the transition of leadership is prepared.

Retire

Congratulations! If you are wondering what’s next, you can check out this blog post.

To help business owners work through their emotions as well as make better decisions when considering selling their businesses, we wrote an ebook entitled Your Business Exit: Monetizing Your Life’s Work. We explore how your situation can come together - the dollars and the cents, as well as the behavioral - so that you can create a successful business exit.

If you have any questions or want to talk through your potential business exit, please feel free to reach out to us. We have helped many business owners successfully handle the financials as well as the emotions of exiting their businesses, and we would be happy to help you as well.

Important Disclosure Information & Sources:

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.

Emotions Of Selling A Business

In our work with business owners, we ask them, “What does your life look like after you sell your business?” Many times, we get a blank look.

By SJS Investment Services Founder & CEO Scott Savage.

In our work with business owners, we ask them, “What does your life look like after you sell your business?” Many times, we get a blank look.

That blank look is understandable. These very busy business owners have their focus in the here and now - on the needs of their families, employees, and customers. They have little time left over to think about tomorrow, and they may even be avoiding it. Change is unnerving, the future is unknown, and it’s more comforting to focus on what seems certain and controllable.

But that future will come, planned or not, and you can help yourself with the change by envisioning your business succession process. By spelling out what you want your future to look like, you can help counter the loss of identity you might feel when you wake up one morning and realize that you don’t have a company to wake up for.

We urge anyone who is planning to exit their business, or who has already exited, to read The Second Mountain by New York Times best-selling author David Brooks. He writes of two metaphorical mountains. The first encompasses what many business owners have pursued, as these are the goals that our culture tells us to focus on - social status, happiness, a nice home, a loving family, great vacations, good food, wonderful friends, and on and on.[1]

But some people get to the top, sell their business, and find it unsatisfying. “Is this it?” they ask themselves. They sense that there must be a more meaningful journey they can take. As Robert Powell once wrote, “Without purpose, many retirees begin to decline. When we ask a pre-retiree what they’ll do when they retire, and they respond with ‘golf,’ it’s a good indicator that they are not prepared.”[2]

The second mountain is where people realize their ego can never be satisfied. They find out they don’t want to be a full-time consumer - they want to be consumed by a moral cause. They realize independence is lonely, and they long for connection, relationships, intimacy, responsibility, and commitment. They seek long-lasting joy rather than temporary happiness.

In our experience, the second-mountain perspective is a helpful way to think about your life when you are still on top of the first mountain!

Important Disclosure Information & Sources:

[1] The Second Mountain. David Brooks, 2019, Random House.

[2] “Why you need to have purpose in your daily life even when you retire“. Robert Powell, 26-Dec-2018, USA Today.

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.

When To Sell Your Business

If you don’t know whether you want to sell your business or how you would go about selling your business, we recommend starting with the following steps.

By SJS Investment Services Founder & CEO Scott Savage.

Not as excited about “work” these days? Feeling the “whisper of discontent”? Daydreaming (or having nightmares) about the next chapter of your life?

You know it’s time, or getting there. You built a successful enterprise, waking up every day determined to make your company better than the day before. Determined to make yourself a better leader than the day before. The struggle, the competition, the ability to prove yourself - you relished it.

But now something else is arising. You’re thinking of retirement or perhaps a new passion project, an encore career, the life of an expat - and ever so slightly, day by day, the call is growing. You know you can’t ignore it much longer, even if you’re tempted to.

And you are tempted to ignore it because what does a life transition like this mean? It means big change. It means something new you haven’t defined yet - and the letting go of the company you built with your hands.

In my nearly three decades of helping business owners with their finances, I have learned that one of the most difficult decisions for a business owner is deciding if and when to sell their business. Each business owner approaches this decision differently: Some meticulously plan their exits while others don’t plan at all.

Unfortunately, most business owners do not adequately prepare for their exit. In a 2017 study by Nationwide, 3 in 5 small business owners do not have a business succession plan in place.[1] We think that not having an exit plan in place is a mistake, for yourself, your family, and the employees of your business.

If you don’t know whether you want to sell your business or how you would go about selling your business, we recommend starting with the following steps.

Assess Your Options

The first step is deciding how you want to exit. How do you want to pass on your company? Your decision will help shape the course of your plan.

You can:

Transfer it to family members
Design an internal sale to an employee or employees
Sell it to a third party

Weigh The Pros And Cons

Each decision has its pros and cons that you’ll need to consider. For example, if you’d like to sell the company to family members, first make sure you have a family member who wants to take the reins and has the competence to do so (you’d be surprised that many potential heirs apparent don’t). The family member may also lack the ability to finance the price you need, calling for creative solutions if you are set on this path.

But passing a business within a family - and to some extent, to employees - can mean that the values you founded your company on will be honored and live on after. Your company’s community service, its local focus, its commitment to customers - you have less control of the legacy once the company is in the hands of a third party.

This is the time to do some soul searching. How do you envision the company being passed on? What factors are you flexible on? What is non-negotiable for you? Will it still be non-negotiable if it means you receive less money?

Get A Financial Advisor’s Expertise

Consider fleshing out this question of “When and how will I exit?” with an experienced financial advisor. Your advisor can help you understand the financial impacts so you can decide on the exit that leaves you feeling good about your company’s new owners and the financial future for you and your family.

Additional Due Diligence

After considering the above, if you still can’t shake the feeling that some time soon may be the time for you to exit your business, we recommend for you to do additional due diligence, including:

Determine the age at which you want to leave the business.
Assess your financial situation and your desired retirement lifestyle.
Determine the gap between your savings and your desired lifestyle.
Decide how you want to transfer the business.
Get a valuation of your business.
Assess and implement the steps you need to increase your business' value.
Review your financial picture.
Understand the tax impact: Particularly now, Congress is debating a change in tax and estate rules that could have a HUGE impact on the design of your exit.[2]

Conclusion

Determining when to sell a business is a difficult decision for most business owners. To help business owners make better decisions for both themselves and their business, we wrote an ebook entitled Your Business Exit: Monetizing Your Life’s Work. We explore how your situation can come together - the dollars and the cents, as well as the behavioral - so that you can create a successful business exit.

If you have any questions or want to talk through your potential business exit strategy, please feel free to reach out to us. We have helped dozens of business owners successfully exit their businesses, and we would be happy to help you as well.

Important Disclosure Information & Sources:

[1] “Nationwide Survey Finds Majority of Business Owners Don’t Have a Succession Plan”. Nationwide, 07-Feb-2017, prnewswire.com.

[2] “How the Wealthy Are Trying to Anticipate Biden’s Tax Increases“. Paul Sullivan, 06-May-2021, nytimes.com.

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.

What Do Millionaires Do Differently?

The typical millionaire may surprise you. I think these characteristics and actions tend to help people grow their wealth over time.

By SJS Investment Services Founder & CEO Scott Savage.

When you hear the word “millionaire“, what pops into your head? It may be a picture of Elon Musk. Or maybe an upward stock market chart. Or even a Wall Street trading floor.

And yet, the typical millionaire may surprise you. In the book The Millionaire Next Door: The Surprising Secrets Of America’s Wealthy, first written in 1996 and updated in 2010, authors Thomas Stanley and William Danko studied who are the millionaires within the United States and how they have become millionaires. They identify seven common denominators among people who successfully build wealth:[1]

Source: “The Blank-Check Boom Poses Pitfalls for Investors“. Zoë Soriano, 30-Sep-2020, wsj.com.

None of these traits surprises me. I have repeatedly seen our clients exhibit these traits over the past 25+ years. We work with people from all sorts of different backgrounds with all sorts of experiences. In addition to the traits above, I think the below characteristics and actions tend to help clients grow their wealth over time:

They adjust their lifestyle to save money each year.

They come from all sorts of occupations, and many don’t make make large salaries, yet they almost always figure out a way to save some money each year.

They prepare for adversity.

Most have an emergency fund that gives them the confidence to survive unexpected job loss, health problems, or financial adversity. They have necessary insurance - such as health, disability, umbrella, and life insurance - to protect themselves and their families in case of unexpected events. Additionally, they ensure their important life documents are updated - including wills, trust documents, healthcare POA, and advance directives.

They have a larger goal for their wealth.

They are motivated to do something meaningful with their wealth, such as providing for their family as well as donating to charitable causes.

They focus on the long-term.

They know it may take decades for them to become millionaires. They create an investment plan that will allow them to not have to focus too much on their investments over the short-term. They know the power of compounding over the long-term, and control what they can while letting markets do the work.

They invest in what they understand.

Most invest in low-cost, broadly-diversified stock and bond mutual funds & ETFs. However, many invest in their businesses, or in certain niches of investing that they know a lot about. They know that if they don’t feel comfortable with their investments, they will probably not stick with the plan.

They don’t pay too much for their investments.

While there isn’t one right way to invest, there are many ways to lose wealth. Paying more than you need to for investments is one of them.

They continuously learn about the world.

They know the world is always changing, and they need to continuously learn and evolve to keep up.

They rely on advisors when they need to.

When they don’t know something or can’t put in the time, they work with advisors - such as accountants, financial advisors, and estate-planning experts - to accomplish their goals.

2021.03.11 Characteristics And Actions Of Client Who Grow Their Wealth.png

More than 90% of high net-worth families lose the family wealth after three generations.[2] My hope is that if we can better listen, understand, create strategies, and implement plans to help people invest better, then more people will be able to achieve their goals, and pay it forward by helping others along the way.

So the next time you hear the word “millionaire“, I hope the image that pops into your head is your modest, hard-working neighbor.

Important Disclosure Information And Sources:

[1] The Millionaire Next Door: The Surprising Secrets Of America’s Wealthy. Thomas Stanley & William Danko, 2010, Taylor Trade Publishing.

[2] “5 lies you’ve been told about generational wealth.” Pavithra Mohan, 18-Jul-2019, fastcompany.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.

Statements contained in this report 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.

Helping You, Not Judging You

People generally don’t want to feel judged for past financial decisions. Many current clients waited a long time to meet with me initially because they were feeling insecure and embarrassed about their past decisions.

By SJS Investment Services Founder & CEO Scott Savage.

Recently, I met with a long-time client for a prototypical portfolio review meeting, like we have had for many years. His portfolio and other existing assets provide more than enough income for him and his family to live comfortably. Unexpectedly, he nervously asked whether I would be willing to analyze all of his assets and liabilities, and provide any recommendations.

Since he uses other investment managers in addition to SJS, he wasn’t sure whether I would be willing to analyze all of his statements and files. Over the years, I have found that the more information we at SJS have, the better our advice can be. Additionally, these types of whole picture financial analyses tend to be really useful, as they remind people of previous financial decisions and spur them to make potentially useful changes going forward. So I told him sure thing.

The SJS team and I reviewed all of his statements and spreadsheets, consolidated all of the information into a more digestible format, analyzed his assets and liabilities, identified some areas that could be simplified and improved, and created a short presentation with our findings.

I have learned that if I present people with too much information (particularly recommendations) too quickly, they tend to think they have to do too much too fast. Paradoxically, this often prevents them from starting to make changes in the first place.

So the next time I met with him, I just wanted to have a conversation with him instead of going through all of the observations and recommendations. Given his situation, there was no need to make quick changes. I was curious what had changed in his life to open up as he had. We talked about his future financial goals, what he wants to do with his time and wealth, what recommendations he is looking for. Throughout his life, partially because of his busy work life, he made financial decisions that he never changed, and he had many investment accounts with many investment managers. None of this surprised me, as it is easy to not regularly review finances while daily life is moving so fast.

However, what struck me the most was he said that he never asked me or another investment manager to review his total financial picture because he was afraid that we would judge him for his past decisions.

Unfortunately, in my experience, his want to not feel judged for his financial decisions is not unusual. Many current clients waited a long time to meet with me initially because they were feeling insecure and embarrassed about their past decisions. I have even seen this with my own family and close friends.

This is one of the reasons why I started SJS over 25 years ago. Money is one of the areas of life that people feel most uncomfortable talking about, and everyone I know feels some regret about past financial decisions. Anyone who says they have no regrets is simply not being honest.

When reviewing their finances, people want to feel understood and supported. If they also feel that they are working with someone who is trustworthy and competent, then they are often ready to make important financial decisions. Negatively judging people - particularly in the early going - never helps.

That’s part of why the SJS mission is: “You come first. All the time. Every time.” We want to help you make good financial decisions so that you can live how you want to and leave your impact on the world. It’s not about us and our judgments. It’s about helping you.

When we at SJS meet with current or potential clients, we have a few rules for ourselves in order to help people feel more comfortable with us:

Everything discussed will remain strictly confidential. “Nothing, Nobody, Never“ is our mantra when it comes to sharing confidential information with anyone outside of your permission.
We listen first in order to understand you and your situation.
We never want to make you feel bad for what happened in the past. It’s about understanding your current situation and doing what may help going forward.
We take the time to do the necessary thorough analysis that you deserve.
We aim to provide helpful options and actionable next steps. We do not give ultimatums or pressure you.
If we don’t think we can help, or if we think another professional can help more than we can, we will let you know.
We always strive to do what is best for you.

We at SJS love what we do, because we want to help people. If you ever want to talk with us about your finances, please know that we will do our best to be understanding, supportive, and helpful, not judgmental.

Important Disclosure Information:

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.

Generation To Generation - Financial Planning Questions As You Get Older

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

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:

2021.01.26 Questions People Ask As They Get Older.png

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:

2021.01.26 Questions People Ask As They Get Older - 2.png

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.

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.

The Importance Of Preparation

Over 25+ years of working with clients, we have learned that effective preparation can help you avoid potential problems and undesired outcomes in the future.

Financially Preparing For Future Life Events

By SJS Manager of Client Services Lisa Denstorff.

No matter how much you prepare, unexpected events will sometimes cause you financial stress. It could be a new health problem, a sudden job loss, a pandemic, or some other unexpected event. And yet, over our 25+ years of working with clients, we have learned that effective preparation can help you avoid potential problems and undesired outcomes in the future.

For example, we recently assisted a surviving spouse who had NOT been the primary caretaker of the family’s investment and estate planning. Unfortunately, some basic organizational and planning strategies such as beneficiary designations on investment accounts had not been completed. And the result was the need for the surviving spouse to hire a lawyer and work through the probate process – one more challenge to face during the grieving process.

The surviving spouse also reached out to us at SJS. We were able to help organize important financial documents, provide a summary of existing assets and liabilities, collaborate with the estate attorney and accountant, and simplify and consolidate investment accounts. Our new preparations helped design a more diversified investment portfolio.

Now, with proper account titling and beneficiary designations in place, the client can feel confident that one day the assets will pass on appropriately to loved ones or for charitable gifts as intended, without complications to the loved ones.

Working through important financial issues (such as applying for Social Security survivors benefits, selling / buying a new home, creating a new estate plan, filing taxes, etc.) is difficult, and can be exacerbated during periods of grief, anxiety, and stress. If we better prepare for these issues in times of relative calm, then we can potentially avoid much of the stress in more troubling times.

What can you do to financially prepare for future life events? We suggest you consider the following:

Inform a loved one or trusted contact as to where your financial documents are stored
Prepare a list of assets, custodians, debts, household bills, etc.
- Store or back up this information electronically
Provide all important documents (will, healthcare power of attorney (POA), trust documents, etc.) to your financial advisor, accountant, estate attorney, etc.
Review beneficiaries and account registrations annually on all assets

If you have any questions or want to discuss handling life events, please feel free to reach out to us. The team at SJS is always here to listen and to help ensure your financial peace of mind.

Important Disclosure Information:

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.

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.

Non-Profits – Are You Planning for the Next 100 Years?

Responsible governance is less about the newest trends in leadership and investing, and more about being responsible and calm no matter what markets do.

By SJS President Kevin Kelly, CFA

Despite all the complicated rhetoric about business and finance and strategy and methods, by doing the basics as a finance chair or board of directors, you stand a good chance of creating an endowment that lasts many years – perhaps forever.

The fact is that responsible governance is less about the newest trends in leadership and investing, and more about being responsible and calm no matter what the markets are doing.

We’ve been guiding and advising non-profits for decades through up and down market cycles, and experience tells us that these things work:

Develop a long-term plan and stick to your investment strategy.

We can help. Many institutions have turned to us for guidance, and we can share what we believe are the best strategies, and help you model those strategies within your organization. Then we do what we do best – which is keeping you focused during markets ups and downs.

Institutionalize the vision and the plan.

You know there will be investment committee changes and asset reallocation required. There will be spending policy changes and leadership turnover. Every change need not be a new direction, if you make the vision and the plan the guiding force of the organization.

Surround yourself with experience.

You don’t have to know everything. You just have to know people who know a lot about the different aspects of your responsibilities. When you bring all those people together, you tend to set yourself and your organization up for success. We are often part of that team. Call us, and we’ll share with you everything we know. We’ll also recommend others who are just as knowledgeable and giving.

You probably guessed that your role is not a solo act – it is a team sport.

By building a great team, you stand the best chance of keeping your cause funded for decades – if not centuries – to come.

2025 Select Retirement Plan Contribution Limits

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Review Retirement Contributions & Gifting Goals

2024 Select Retirement Plan Contribution Limits

Notify Your Accountant

Keep SJS Apprised Of Trusted Advisor Changes

Update Your Estate Plan

Keep Your Wealth Protected

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Review Retirement Contributions

2023 Selected Retirement Plan Contribution Limits

Consider Gifting Goals

Keep SJS Apprised Of Trusted Advisor Changes

Update Your Estate Plan

Take Inventory

Keep Your Wealth Protected

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Determine the age at which you want to leave the company

Assess your financial situation and your desired retirement lifestyle

Determine the gap between your savings and your desired lifestyle

Decide how you want to transfer the company

Get a valuation of your company

Assess and implement the steps you need to increase value

Review your financial picture

Understand the tax impact

Find a buyer and agree on financing terms

Implement the sale

Retire

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Assess Your Options

Weigh The Pros And Cons

Get A Financial Advisor’s Expertise

Additional Due Diligence

Conclusion

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They adjust their lifestyle to save money each year.

They prepare for adversity.

They have a larger goal for their wealth.

They focus on the long-term.

They invest in what they understand.

They don’t pay too much for their investments.

They continuously learn about the world.

They rely on advisors when they need to.

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Financially Preparing For Future Life Events

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Develop a long-term plan and stick to your investment strategy.

Institutionalize the vision and the plan.

Surround yourself with experience.

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