Lighthouse Financial Advisors, Inc.

11/23/2021

Ranking & Reviews
Best NJ Wealth Management Firms
Read more at AdvisoryHQ: https://www.advisoryhq.com/articles/top-financial-advisors-in-new-jersey/
Intro: Finding the Top 11 Best Financial Advisors in New Jersey for Wealth Planning

Finding the best financial advisor for your unique financial needs can be an intimidating task, especially if you haven’t worked with a New Jersey wealth manager before. It takes a lot of trust to open up to someone about your finances (the good, the bad, and the ugly) and implement advice that directly impacts your financial well-being.

New Jersey financial advisors can help point you in the right direction and guide you on a path to a better financial future. A financial advisor’s experience and knowledge go well beyond what most of us typically have, and their expertise can be a great asset to your life.

Not all NJ financial advisors provide the same types of services, and some will be better attuned to your needs than others. Some of the qualifications you’ll want to look for when selecting the best NJ financial planning firm for your needs are:

Transparency
Strong values
Services that match your needs
A good reputation
A client profile that you fit into
Fee structure
Complementary initial meeting
We’ve compiled a list of the best NJ wealth management firms and the best NJ financial advisors in 2021-2022 to give you a starting point in your search and put you on track towards reaching both your short and long-term financial goals.

08/27/2021

8-21-21 Client Party

08/27/2021

LFA 18th Annual Client Appreciation Party - Aug, 21, 2021 at Monmouth Park Racetrack

01/05/2021

Having A Plan And Sticking To It!
by Robert Walsh

Things usually go right when we follow a recipe. Things quickly turn into a disaster when we improvise or add in things that don’t belong. Let’s add a little more of this and let’s forget this...unless it's bacon, which makes everything better. 2020 has been a year with lots of distractions with many reasons to add a little more of this and forget about that.

With the New Year coming It’s a good time to review the basics of a sound financial plan and see how we did this year. We call these basics the Five Fundamentals of Fiscal Fitness. They are so basic that most people completely ignore them.

1. Pay yourself first (Harvest & plant your crops)
---a. Save at least 10% of your annual income
---b. Review your risks and portfolio
---c. Rebalance taxable & tax-deferred savings toward less risky
assets
2. Have sufficient liquidity (Move crops to the pantry)
---a. Should have 50% of annual spending in cash reserve
---b. Layout an annual spending plan / 5-year spending plan
---c. Don’t forget about #1
3. No consumer debt (Empty pantry & no money for new crops)
---a. Learn the difference between good and bad debt
---b. Take advantage of low interest rates
---c. Don’t forget #1 & #2
4. Own the right size home (Barn)
---a. For most, their home is the most significant financial
investment
---b. Is it time to trade up or down
---c. Don’t forget #1, #2 & #3
5. Invest in yourself (The farmer)
---a. Human capital is our biggest & most valuable asset
---b. Improve skills, education, personal growth – have a 1-year
vision & 5-year vision --------of your unique future
---c. And don’t forget about your health or #1, #2, #3 & #4 won’t
be so important

07/13/2020

Getting Where You Want to Go
Blog by Cecilia Cunningham
When you know what you want in life and you strive to reach it, you can accomplish almost anything. It's easy to dream big and create goals, but how do you go about accomplishing those goals? Below are a few steps to follow to keep you on your path:
1. Write down all of your goals - seeing them written down on paper helps to solidify them in your mind.
2. Prioritize - Now that you have written them all down. Decide which goals are most important and what you want to accomplish first. Trying to focus on all your goals at once often leads to being overwhelmed, stressed, and disorganized, making it much harder to accomplish any of your goals. Focusing on your top 1,2, or possibly 3 goals creates a better chance of success and enables you to then focus on your next set of goals.
3. Clearly define your top goals and create a timeline - This allows you to focus in on exactly what you want to accomplish and how long you expect it to take. Be sure to consider outside pressures and set realistic, attainable expectations. Having appropriate expectations creates manageable action items, reduces stress, and increases your chances of success.
4. Break down large goals into smaller goals - Very large goals can create stress and lead you to feel overwhelmed making it hard to focus on what needs to be done to accomplish them. Breaking large goals into multiple smaller goals enables you to create manageable action items, which will enable you to stay positive, and hopefully stress free. Accomplishing multiple goals also creates consistent success which in turn encourages you to keep going on your path.
5. Create a plan and track your Progress - Creating action items helps you to plan ahead to ensure you have the materials and time you need. Tracking your progress keeps your mindset positive and encourages you to continue on your path. This can be done several ways depending on the goal. Sometimes the progress is evident just by looking. For example, repainting a room, you can see the difference when you cut in, apply the 1st coat of paint, and the second. Other goals can be measured and tracked numerically such as increasing your savings account to a specific amount. You can track your progress by watching the balance increase. Other goals are harder to see such until completed such as obtaining a degree. One way to track your progress would be to create a master checklist of all the classes you need to take and mark them off as you complete them. Whatever method you choose make sure it is one that will help you stay motived.
6. Tell a friend - Having someone to hold you accountable when you slack off on your goal and encourage you when you are struggling makes it easier, and hopefully more fun to stay on task and keep you motivated.
No matter how much you plan you will always run into obstacles. Sometimes the obstacle is yourself and you lose focus, get discouraged, and cease to make progress. Other times the obstacle is an unexpected event out of your control, such as a car crash, illness, unplanned child, loss of job, a promotion at work with additional expectations or even a required relocation.
Regardless of what causes you to derail your progress it is important to find a way to get back on track. Here are a few suggestions to get you back on the path to your success:
1. Acknowledge mistakes - Everyone makes mistakes from time to time. It is important to recognize what you have done wrong so you can hopefully avoid it again in the future.
2. Forgive yourself - Don't harp on the mistakes you have made. Focus on moving forward and remaining positive. A "you can do it" attitude goes a long way when trying to accomplish a goal.
3. Identify roadblocks - Knowing what your difficulties are enables you to manage the impact they make or even makes it possible for you to avoid it in the future.
4. New action plan - Sometimes you get so far off course that some of the steps or timeline expectations need to be changed. Other times the obstacles that occur force you to reevaluate your priorities and change your goals. Do not resist altering your goals if they are no longer what you want. Life is everchanging so it is important that your goals change to fit your wants and needs.

06/25/2020

Pay it Forward
Blog by Sean Lane

While the COVID-19 pandemic continues to be challenging to say the least, it presents an opportunity for communities to come together and for us to give back. Charitable giving is meaningful for a multitude of well documented reasons. In addition to helping those in need or just brightening someone's day, the simple, selfless act of helping others provides a great sense of personal satisfaction and growth.

While writing a check is undoubtedly helpful, small acts of service can really add up and go a long way. Here are a few meaningful ways to pay it forward and give back to your community today:

1. Cheer Up Those Around You. Give an old friend a call, check in on your neighbor, or simply make eye contact and give a wave the next time you're on a walk or in the store. A smile or kind social interaction can go a long way!
2. Donate your time. Seek out local institutions looking for volunteers or donations. If you'd rather not go out in public, offer your services or skill set. Do you know of a friend out of work? Offer to proofread their resume, make an introduction, or practice a mock-interview with them.
3. Support Local Business. Local businesses have been hit hard during this period of social-distancing with Americans out and about less. Consider picking up a bag of coffee beans from a local coffee roaster (Rook Coffee is my personal favorite!), or simply supporting your favorite local restaurants. All of these establishments play a part in making your community a place you call home, supporting them helps keep them going.
4. Tip a little Extra. Now that we're heading back to the salons, barbershops, and beginning to dine out, consider tipping more generously. It is no surprise that these industries have been deeply affected by the economic impact of COVID-19, so as we begin to support these establishments, keep the local workers in mind. With the reduction in hours and a reduced customer base, a little bit of an extra tip, if you're able to, can make a huge difference.
5. Do Your Research & Donate Money. If you're able to give monetarily, do the research to ensure your money is being effectively used by the charity. Donate locally, and if you're donating to a larger institution be sure to vet them in advance. There are charity assessment tools which rate organizations based on financial transparency and how much goes toward the cause versus marketing, fundraising or administrative costs. Also, it doesn't hurt that monetary donations have tax advantages too!
While social distancing can make us feel insular, a sense of community has never been more important. Consider some of these tips to help us all get through this challenging time, together.

06/12/2020

Retirement Provisions of CARES Act
Blog by Robert Walsh
The CARES Act is 335 pages and has created a lot of opportunity for proactive tax planning, along with a lot of acronyms - CARES (Coronavirus Aid, Relief, and Economic Security Act), PPP, PUA, FPUC, EIDL, PPPHCEA & PEUC (Pandemic Emergency Unemployment Compensation) or Payments extend until Christmas.

A few of the CARES Act law changes for tax year 2020 on retirement accounts -
1. No RMD (Required Minimum Distribution) required for 2020 -YES not required to take funds from your IRA for 2020
1. Waiver applies to Traditional IRAs, retirement plans - SEP, SIMPLE, 401(k),403(b) & 457(b)
2. No required distribution from Inherited IRAs or Inherited ROTH IRAs for 2020
3. You can still take a distribution from your IRA if you need or want to (Taxes still apply to the distribution)
4. If someone passed away in 2020 and did not take an RMD the estate is not required to take the RMD.
5. Qualified Charitable Distributions are still allowed even though RMDs are not required
1. QDC - Charitable contributions paid directly from your IRA to the charity (Must be 501(c)3 & you need to be 70 ½)
6. Special Tax Relief for those who qualify - Coronavirus Related Distribution - CRD
1. Allows $100,000 penalty free distribution from IRA or company retirement plan
2. Don't have to be over 59 ½
3. Allows distribution to be repaid TAX FREE - repayment period begins day after funds are received
4. OR allows Federal tax to be paid over 3 years / State income tax may vary
1. Qualifications only those individuals:
1. diagnosed with the SARS-CoV-2 or COVID-19 virus by a test approved by the CDC
2. spouse or dependent is diagnosed
3. who experiences "adverse financial consequences" from being quarantined; being furloughed or laid off or having work hours reduced; or being unable to work due to lack of child care; or have closed or reduced hours of a business they owned or operated
5. Distribution taken prior to CARES Act also qualify

A lot of tax planning to think about and review for your 2020 tax projection. As with all tax law changes, we will work directly with you and apply these changes to your unique tax situation.

06/11/2020

Payroll Protection Program (PPP) Update (6/5/20)
Blog By Brennan Guli

It is expected today that the President will sign bipartisan legislation to update the U.S. Small Business Administration (SBA) Payroll Protection Program (PPP) to make several changes to the rules governing the forgivable loan program designed to help small businesses keep employees on payroll. This is great news for businesses that received the PPP loan and were left with many unanswered questions.

The initial PPP provided small businesses (fewer than 500 employees) an opportunity to take a loan for 2.5 times their monthly payroll which could be used to maintain staff and cover some additional business expenses. The loan would be forgiven if all outlined conditions were met. At least 75 percent of the proceeds had to be used to cover payroll costs and up to 25 percent could be used for rent, utilities or interest on mortgages. Forgiveness was based on the employer maintaining the same employee and salary levels as pre-COVID-19 times. The borrower then had 8 weeks from the date the loan was received to meet the above terms or the borrower had to repay the unused portion over 2 years at 1%. All funds had to be used by June 30, 2020.

Due to the extended lockdown and the slow pace that small businesses have returned to "business as usual" (especially in New Jersey), the revisions to the Paycheck Protection Program Flexibility Act (Flexibility Act) serve to alleviate several areas of worry. The most noticeable changes are:

1. Extension of Covered Period - borrowers now have the earlier of (a) 24 weeks or (b) December 31, 2020 to use the loan proceeds and achieve full forgiveness. As NJ businesses start to reopen in June/July, this is the biggest indication that most borrowers will qualify for full forgiveness. In particular, restaurants and seasonal businesses will benefit most. The recent decrease in unemployment numbers may be a direct result of the extension as employers have clearer expectations now.
2. Minimum Amount for Payroll - The new minimum is 60% of PPP loans need to be used for payroll costs to obtain full forgiveness. However, up to 100% of proceeds can be used for payroll.
3. Calculation of Full-Time Employees - since PPP borrowers have to maintain pre-COVID-19 staff levels, it was imperative that a large number of employees return to work. The extension of the hiring deadline from June 30 to December 31 provides great relief to businesses slow to return to fully operational status.
4. Payroll Tax Deferral - the CARES Act allowed employers to delay paying the employer portion of social security tax (6.2% tax on wages) with one-half payable by December 31, 2021 and the remaining half by December 31, 2022. However, any business receiving loan forgiveness under PPP was not eligible for the deferral. The Flexibility Act allows all borrowers to defer 2020 social security payroll tax obligations.

Overall, we are delighted with the recent changes to the PPP and the clarification of the programs rules. This is great news for small business owners and the economy.

06/05/2020

College - Fall 2020
Decisions - Decisions!
Blog by Donna Tyrrell
1. Begin your College Education in Fall of 2020 at the school you originally planned?
2. Enroll at your local Community College for the first year or two, then transfer to another university or college where you can earn your diploma from?
3. Take a "GAP YEAR"?
With all of the UNKNOWNS and UNCERTAINTIES, most Universities and Colleges are not yet clear on what the Fall 2020 semester will be. There is a possibility that they will offer only remote learning and no on-campus living. OR, it is still possible that schools will reopen (possibly) with limited classroom access for physical attendance, exercising social distancing and strict precautionary measures with specific limitations for safety.

1. Your original College enrollment - If you decide this is what you want to do, your school will most definitely work to make sure you get the best college education and experience possible. It may not be the "typical or traditional" semester, but you should be confident that your University/College will provide the education you expect and deserve. We suggest to contact your school for the latest and most updated information about your Fall 2020 semester.
2. Community College - Some students may opt to enroll in their local Community College for their initial year (or two). This can possibly save some tuition costs while taking some core (or mandatory) classes that could be transferable to their next school of choice from which they will earn a degree.

Finance and Career Counselors are always on hand to discuss students' options and help guide them to make the right decision for themselves.
More information on this is cited on CNBC:
Community colleges could see a surge in popularity amid Covid-19
https://www.cnbc.com/2020/04/22/students-consider-starting-out-at-community-college-amid-coronavirus.html

3.Take a "GAP YEAR" - Some students (especially during this COVID-19 pandemic) may be considering deferral of beginning college, or applying for a "Gap Year".
Taking a "Gap Year" may be a consideration or viable solution for those students who are not absolutely sure how to proceed with their college education. There can be many reasons why a student is confused or conflicted about beginning the next phase of their higher education.

All Universities and Colleges have Guidance/Career Counselors and Finance Counselors on staff and are there to help students when making these decisions. If you would like to discuss all options, you should contact your school to make a (virtual) appointment.
More information on this (including Pros and CONS), cited on AccreditedSchoolsOnline.org.
Taking a Gap Year Before College
https://www.accreditedschoolsonline.org/resources/taking-a-gap-year-before-college/
and/or from: The Wall Street Journal
Gap Year Ideas for College Students
https://www.nytimes.com/2020/04/23/well/family/college-students-gap-year-coronavirus.html

The coronavirus crisis could have a dramatic effect on enrollment at four-year colleges and universities, sending more students to less expensive community colleges for now.

06/02/2020

Change Your Lens, Change Your Story
Blog By Marni Feltman

Change your lens...change your story. Like putting a wide lens on a camera, choosing a different perspective can not only broaden our current perception of events but influence our behavior to produce more positive and long-lasting outcomes. We often let not only the history of our lives but the fear of the unknown control how we view present situations. These limiting perspectives often prevent us from seeing the true breadth of possibilities that lie before us. This narrow lens keeps our vision limited and restrained but in times of uncertainty, when it is easy to feel out of control and our stress levels begin to rise, the lens through which we choose to view the situation can be our most powerful tool. During difficult times, simply by realizing you choose your perspective, you empower yourself to influence the outcomes. Below are a few tips for changing your lens to better shape your narrative.

The Optimist's Perspective

When we are stuck in a pessimistic perspective, which we can very quickly gravitate to in uncertain times, it prevents us from being curious and creative with the way we think about the future and the choices we have to forge a new path forward. What if, instead, we choose an optimistic perspective? What if we choose not to focus on anxiety and worry of the unknown and instead focus on positive outcomes by noticing what we can control? We empower ourselves to be optimistic realists who take positive steps towards conquering the challenges we face. We look instead through a lens of hope as we shift our vision to the big picture and find inspiration to get there one accomplishment at a time.

Focus on Resilience

"I'm sorry for what I said during quarantine." No doubt this will become a popular meme post Covid era. During these unique and trying times we are all experiencing challenges in some way, shape or form. Our limits are being tested. Our patience, willpower and resolve are all on trial. Rather than looking through the lens of self-criticism, what if instead, you choose a growth mind set and find lessons in these missteps. What are we learning about ourselves? What have you overcome? What can you overcome? Some of the situations we find ourselves in may even be temporary. It's an opportune time to take inventory of our blessings and be grateful for what we do have, including our own resilience.

See the Opportunity

Many of us are finding ourselves in new situations that are unfamiliar, unchartered and even unusual. It's human nature for fear to take over the choices we make and it can quickly shape outcomes into disappointing results. There is opportunity here...to do things differently. Try new things. Take small risks. What are you noticing that has been missing from your life? What steps can you take to change that? When this is over and some normalcy returns to our lives, how will your life look? How do you want it to look?

05/29/2020

Blog by Steven Tyson
Planning for Special Needs

Things to consider when planning for special needs

As parents, we all want what is best for our children. For parents of children with special needs, the financial planning process can become extremely stressful and confusing. Many parents often take extended periods of time to create an action plan due to confusion, anxiety, and a variety of obstacles. But if parents are able to navigate through the many decisions and find the right strategy for their family, special needs planning can give comfort knowing there is a plan in place. Planning for a child with special needs is most effective when it is implemented in stages based on the child's age. The following questions and insights can be discussed with your Financial Advisor to help you to map out together a clear plan for your family.

Questions to discuss when building a special needs Financial Plan
1. What are the major expenses and concerns today as well as in the future?
2. Where will the child live after parents are retired or have passed on?
3. How will the future needs of any additional children and the parent's retirement plans be affected?
4. What is the child's ability to take care of themselves physically and financially?
5. What government assistance is the child eligible for?
6. What are the intentions for education?
Assistance from Government Programs

It is essential to prioritize eligibility in the beginning of the financial planning phase with your advisor. These programs can provide great relief considering the high costs of lifetime funding and living expenses for the parents.
1. Supplemental Security Income (SSI): Federal program designed to aid individuals with special needs with little to no income to meet basic needs. Children become eligible once turning 18 unless the parent's assets are below standards.
2. Medicaid: an individual who qualifies for SSI is automatically eligible for Medicaid. This program will provide medical and prescription needs, this is essential due to coverage for special needs being very limited
3. Social Security Survivor/Disability Insurance (SSDI): funded through Federal government based on F**A taxes. Each payment is calculated from all F**A earnings made by the individual's parents. It is required that a child is diagnosed prior to turning 22 years of age
Able Account
• Eligible for individuals and their families to use by contributing funds which will grow tax deferred and distribute tax free when it is for a qualified expense
• 2020 current contribution limit is $15,000 without reporting as a gift to the IRS
• SSI benefits are subject to change if the account value exceeds $100,000. If so, benefits would be on hold until the account falls below $100,000.
• Similar to a 529 plan, there are several conservative, moderate, and aggressive investment choices
Special Needs Trust
• A trust designed to manage assets dedicated towards a special needs individual while protecting access to eligible government programs
• First & Third-Party Trusts
o First Party: irrevocable trust holding the assets of the individual with special needs. This can include an inheritance or settlement
o Third Party: established by parent/guardian for the benefit of a special needs individual
 Legal language specifies that the trustee will use their discretion of the trust to enhance the quality of life
Implementing a customized financial plan that best suits your family's situation is the most important step you can take to having peace of mind. Examining potential situations, reviewing financial & estate planning documents, and going over the long term goals of all parties involved will help lay the foundation for an action plan.