Jake Hansma Financial Planning

04/01/2023

02/16/2023

With the changes in interest rates many of our clients want to know when is the right time to pay off their home and what alternatives do they have if they choose not to.

Is paying off your mortgage early the smart thing to do? It sounds great having that extra cash flow in your pocket each month by not having that monthly mortgage payment. That being said it is not quite that simple, lets see if paying off the house early makes sense for you. Consider these factors

11/29/2022

With our current bear market and substantial market volatility this is a great time to remind ourselves of the fundamentals of investing. Not only are your specific investments important but also the person who looks after and manages your assets. Now is a great reminder of what works and what does not work.

With holiday season in full swing and many more festive gatherings to come you may find yourself having conversations around the state of our economy, the cost of living, possibly even how your portfolios may be preforming, or more likely, how they are not preforming. As we have watched the market

08/31/2022

Interest rates at banks are finally following suit with rates rising. If you're looking for the highest APY then take a look at this list of the highest yielding savings accounts.

If you're looking for the best savings accounts, you want a jaw-dropping APY and low or no monthly fees. Our experts reviewed hundreds of savings accounts to find the best high-yield and online savings accounts.

08/29/2022

"Progress happens too slowly for people to notice; setbacks happen too fast for people to ignore."

Morgan Housel, partner at the collaborative fund and former writer for the Motley Fool recently released a piece describing five major lessons from history. The fourth one being the statement outlined above.

I believe most people can understand what he is trying to say here, we notice negativity and failures much quicker than success. This is true across the board. Consider the Wright brothers who took flight for the very first time in 1905 flying across Ohio on their first man made airplane. Yet, reporters and the public only began taking notice in 1908, three full years after.

This line of thinking can explain a large part as to how we measure progress. All of this is true in the financial markets also, where a 40% decline over six months will draw congressional investigations, but a 140% gain that takes place over six years can go virtually unnoticed.

Now a 40% drawback can drastically affect a person’s way of life, that is abundantly true. That being said, my takeaway from Mr. Housel's is the difficulty in long term thinking. It is one thing to say you understand a long-term point of view and another to implement and live it.

08/19/2022

🏆 We’re in good company!

Two firms in the XY Planning Network made it on the annual Inc. 5000 list! It’s the most prestigious list recognizing the fastest growing companies in the United States—an accomplishment worth bragging about.

Congratulations to Benjamin VerWy, CEPA, of Fiduciary Financial Advisors, and both AJ Ayers, CFP®, EA, CEP, and Shane Mason, CPR/PFD, CFP®, CPWA® of Brooklyn Fi!

We are proud to be a part of your growth journey!

08/18/2022

Costco lunches have always been a favorite of mine.

08/17/2022

Practical Financial Advice!
There are a multitude of reasons to consider rolling an old employer plan to a personal IRA account. Here I have outlined some concise, comprehensible points highlighting the positives and negatives to rolling your plan assets into an IRA. As well as the appropriate time to consider to do it.

When are you able to rollover an account?
- Switching jobs, old plans from previous jobs can be rolled into one "master" IRA. This saves you from thinking years back with the thoughts...
- What am I invested in?
- Do I know how to login to my old account?
- Do I know my fees at each old job?
- In retirement.
- Possibly while you are still at your employer with what is called an "in service distribution."

Why would you consider rolling over an account?
- Significantly more investment options.
- Consolidation of assets, rather than having 4 old plan accounts floating out there.
- Depending on where your money is heading, fees can actually decrease!
- Estate planning advantages.
- An advisor who cares for you and not just the plan.

Truly an advisor who has your best interests in mind is an invaluable piece to your financial puzzle. In comparison to a 401K agent who comes in once a year to spend 20 minutes going over your account with very little vested interest.

Why wouldn't you consider rolling over your account?
- The new advisor has a high fee structure.
- You utilize the loan feature for your 401k.

With all of this in mind your employer plan should be of great importance to you as it normally acts as retirees greatest investment asset. Other things to consider may be your allocation in regards to your risk profile and your contribution amount. Reach out for professional advice.

08/16/2022

Redefining the industry day by day and client by client! Love this team!

08/08/2022

Permanent Life Insurance is oversold to the wrong people. I have personally experienced the pressure based sales pitches from Insurance salesmen to "protect you and your family for life with this insurance product."

Am I saying there is no use for permanent life insurance? No. Although, almost never should one of these products be your first "investments" you ever make. Here are some things worth considering before permanent life insurance.

- Maxing out retirement accounts.
- All high interest debts are paid off.
- Having months of expenses saved in an emergency fund.
- Having an established financial plan.

As I said, permanent life insurance can be a crucial piece of a financial plan, but in more specific instances. These sort of situations may include -

- Business ownership and buy-sell insurance.
- Estates that exceed the estate tax exemption (12 million per spouse).
- You have maxed all retirement and tax exempt investment accounts all while having sizable post tax investments.
- Planning for children with special needs.

Ignore the sales pitches and scare tactics used in selling these products and find out what suits you and your family best.

07/25/2022

Do you have an annuity? Is a financial advisor currently trying to sell you an annuity? These products and their shortcomings are a large part of why I am a fee only Fiduciary. In this series I will do a comprehensive analysis of varying types of annuity products, this specific video involves a Transamerica B share variable annuity. If you would like an analysis of your annuity please reach out.

In this video we go in depth into a Transamerica B share Variable Annuity and discuss its shortcomings.