Rock House Financial

02/19/2024

We often hear people say that budgeting doesn’t work for them or that an emergency fund doesn’t work for them. As you may recall, an emergency fund is the money you should set aside to pay for 3-6 months of living expenses in the event of an unplanned expense such as a job loss, disability, accident, etc.

The issue we usually see is that people are not properly planning for annual expenses. A lot of people budget for monthly expenses, so when anything else comes up it blows up their budget or uses up what they had put aside for the emergency fund.

Examples of annual expenses are car registration fees, life insurance annual payments, memberships, tax filing fees, charitable giving, car maintenance, home maintenance, etc.

We recommend that you set up a “sinking fund.” Basically, you save up over the year into a fund specifically designated for whatever annual expense, and the money is there for you if you need it. It’s a way of bookmarking funds for things that come up every year and can be planned for, so that your emergency fund doesn’t get used up on those expenses. Your budget accurately reflects all expenses that will come up during the year, not just regular monthly expenses.

Budgeting can work, with some strategy and foresight. If you have any questions on how to make it work for you, let’s talk.

02/06/2024

5 ways to avoid the identity theft of a deceased loved one
#1 Alert the Department of Motor Vehicles (DMV)

#2 Alert all major credit reporting agencies

#3 Monitor credit reports regularly

#4 Notify financial institutions

#5 Shred important documents

For more detail on these tips, see blog in comments field.

01/30/2024

12/13/2023

Congratulations to our very own Ryan Anderson for becoming Rock House Financial's newest CERTIFIED FINANCIAL PLANNER™ professional!

CFP® professionals have met extensive training and experience requirements. They also commit to ongoing education as well as the CFP Board's ethical standards that require them to put their client's interests first, acting in a fiduciary capacity. We at Rock House Financial believe this credential is important as it holds us to a higher standard of care and pushes us to be better financial planners for our clients.

Ryan obtained his undergraduate degree in Finance from the University of Utah. He currently works as an analyst at Rock House Financial after multiple years in various roles at Fidelity Investments. While at Fidelity, he spent 10 months studying for and passing the CFP® certification exam. After satisfying the experience requirement, he is now a CFP® professional, as well as a Chartered Retirement Planning Specialist™.

11/15/2023

For many folks, open enrollment season is upon us in the workplace.

1. Medical Insurance:

Every year carriers create new and close old medical plans. Don’t be surprised if your current plan isn’t available next year.

With health insurance costs expected to rise 6% in 2024 (2x 10 yr average), pay very close attention to changes in premiums, deductibles, and copays. Plans may increase your 20% coinsurance to 30% after deductibles are met – be aware.

Consider any specific medical needs for you and your family members, such as prescription medications or specialist visits.

2. Dental and Vision Insurance:

Check for in-network providers, especially if you have preferred dentists or eye care specialists. In-network providers can frequently change.

Ensure that the coverage aligns with routine check-ups and any potential procedures or eye care needs.

3. Disability Insurance:

Examine your disability insurance coverage – both short-term and long-term. What % of your income will it replace?

4. Group Life Insurance:

Review your life insurance coverage and beneficiaries.
Are you maximizing the coverage you can get as a “Guaranteed Issue” (meaning you don’t have to get a medical exam)? Are the premiums a fair price compared to a term insurance policy from a retail insurance carrier?

If you have questions regarding your medical, dental, vision, disability, or life insurance benefits, reach out to your HR rep, as they are most familiar with the plans and details.

For those on Medicare, open enrollment ends on December 7th. If you’d like a second opinion, feel free to give us a call.

10/30/2023

We are thrilled to announce that in July, Nicole and her husband Allyn have welcomed a second son into their family.
Please meet Ander Polatis Roberts.

10/25/2023

I “ran” the St George, UT Marathon last weekend.
Between mile 18 and 19, I started having sharp pain in my right foot which I would later find out was a stress fracture.
For the last 7.2 miles I walked, hobbled, and limped my way across the finish line.

I learned a lot of hard lessons from this experience.
1. Long-Term Perspective: In a marathon, you can't focus solely on the first few miles; you need a strategy to pace yourself over the entire distance. Similarly, in investment management, it's essential to have a long-term investment strategy and not get swayed by short-term fluctuations.
2. Goal Setting: In both activities, you set goals. In a marathon, your goal may be to finish within a specific time or to complete the race. You set goals in your personal life and help build an investment plan to accomplish them.
3. Discipline: You need to stick to a training plan to prepare for a marathon, just as you need to adhere to an investment strategy without making impulsive decisions.
4. Patience: Running a marathon and investment management both require patience. You can't rush through a marathon, and you can't expect instant results in investments.
5. Persistence. Like I said, I limped my way across the finish line. Unexpected things come up along the way.
At Rock House we are your coaches in the marathon of your retirement. Please set up a time to talk and discuss what’s on your mind when it comes to your wealth, either in the short term or in the long distance.

10/04/2023

How are you paying for surprise expenses?

Whether you're retired or not, having a cushion of liquid cash can make all the difference. Here are three compelling reasons why your emergency fund should be a priority:

1. Financial Peace of Mind: 💆‍♂️ Tell me you won’t sleep better knowing that you’ve got cash ready to cover surprises when they come. The cherry on top is this cash can now be simultaneously earning 4%+ in a high-yield savings account (see last week’s memo).

2. Protection from the Unexpected: 🛡️ Life is unpredictable, and unexpected expenses can arise at any age. We see home repairs, medical, and helping family members in a bind are common. Having such savings available increases the odds of your goals not getting derailed (short and long-term).

3. Avoiding Debt: 🚫💳 Relying on credit cards or loans to cover unforeseen costs is a dangerous game. Most recently, the average interest rate for all credit cards was over 22%. An emergency fund can help you steer clear of this situation.

How much is enough? While it depends on what you’ve got going on, a good starting point is at least three to six months' worth of non-discretionary living expenses.

This type of savings often requires some financial discipline to not only build but to maintain. So, if you’re not sure where to start or need help, please give us a call and we can discuss.

09/21/2023

Utah vs. UCLA Tailgate
Join us Saturday, September 23rd for food, games, and fun before the Utah vs. USC game:

Tailgate is from: 10:00am - 12:30pm

Game time is 1:30pm

We will be North of The Union building in lot 29. (see the red star on the map below).

RSVP here to receive updates and help us plan for food.

Feel free to invite friends and family!

*Tickets to the game not included.

09/12/2023

Per Stirpes vs. Per Capita

It may not seem like a big deal, but if you get it wrong, it is.

· Per Stirpes: If one of your primary beneficiaries predeceases you, their share is distributed equally among their descendants (children, grandchildren, etc.). It maintains the family branch's share by moving down across the “bloodline”.

· Per Capita: If a primary beneficiary predeceases you, their share is redistributed equally among the other surviving primary beneficiaries (often other children). It ensures equal distribution among living beneficiaries, but it can effectively cut out the deceased beneficiary’s children (your grandchildren).

08/28/2023

If you are divorced, your claim on your ex-spouse’s Social Security benefits is:
✔ Half when the spouse is alive,
✔ 100% when the spouse dies

However, a few caveats apply.

You must have been married for 10 years and you must not have remarried.

You cannot claim these benefits until age 62.

For more social security tips, see blog in comments field.

08/14/2023

When I was a kid, each summer my family picked and sold close to 2,000 pounds of cherries.

Each of us kids were paid 10 cents a pound, which meant we earned between $2 and $3 per hour and a total of $20 on a really good day.

The cherry orchard taught me that if you want something from life, you need to plan, cultivate, and work for the reward.

To finish reading, see blog in comments field.