CMP Financial Planning

The holidays are a time for giving gifts to those we love.  For our grown children and loved ones to whom we would like to provide substantial financial gifts, what is the best way to give?  Of course, there is not any one right way to give.  Giving to Loved Ones: What to Consider You will…

Information as of November 30, 2020 As we are about to enter a long winter of often grey skies, frigid temperatures (at least for most of us!!) and relative isolation, it is important to remember how far we have come in a few short months. Our recent economic and investment update includes: •           The beginning…

The decision as to when to start Social Security benefits is a big decision for retirees. In many cases, it makes sense for a retiree to wait to collect benefits until age 70; however, for special needs families with a child with a disability, waiting is often not the best strategy.  This article provides a brief summary of…

Tips for navigating the Social Security website Social Security is an important part of most family’s retirement plans. For special needs families, this benefit is of particular importance, because the adult child with a disability’s income can be tied to the primary earner’s benefit through the Social Security Disability (SSDI) insurance program.   Who qualifies for the…

How Christina is coping with COVID-19 As some of you have heard by now I have been coping with COVID-19. In early July I was exposed to someone whose roommate had contracted COVID-19, and when I consequently took the test, I was dismayed that I tested positive. Fortunately, I suffered only mild symptoms and recovered fairly quickly….

Information as of August 27, 2020 In our last economic and investment update newsletter we expressed surprise about the stock market’s climb, and here we are with the S&P Index at record highs (Is there such a thing as “bewilderment fatigue”?). And, compared to the beginning of the summer, it has become apparent that the recovery…

A key aspect of preparing for a healthy retirement is paying attention to our well-being during pre-retirement years! As we raise a family, build our careers, take care of parents, etc., we all are stretched for time. But to be able to enjoy our golden years requires that we make time to develop and practice healthy…

Information as of June 30, 2020 The stock market has rebounded substantially over the second quarter, making up, at least in part, for the abysmal losses resulting from the coronavirus and the shutdown of large parts of the economy. How the stock market performed The quarter started out with stocks beginning to climb out of…

Most of us have experienced some kind of shock after a crisis as a result of the pandemic, whether physically, emotionally, or financially or through a combination of all three. As restrictions are eased and we try to grapple with what life looks like in a new normal, many of us will have to retool financially…

Information as of June 1, 2020 What is going on with the stock markets? America is trying to recover from an unprecedented pandemic and is in the throes of serious civil unrest caused by the brutal killing of George Floyd. Yet the stock market magically keeps on going up, erasing most of the losses that occurred as…

The best way to avoid panicking when the balances in your 401k or other investment accounts go down is to learn some basics about the stock market and develop good investing discipline/habits. Over and over, research shows that emotional investment decisions means worse investment returns. The key to successful investing is more about having a disciplined…

Millions of Americans are facing significant financial consequences as a result of the COVID-19 pandemic. Many special needs families are particularly hard hit because of the additional burdens of caring for their loved one under the pandemic restrictions. The CARES Act passed in March created several relief provisions for families and individuals, one of which included…

Social Security is an important part of retirement planning both for the parents and the individual with a disability.  Family members can claim benefits tied to the primary household earner once he or she begins receiving Social Security retirement benefits; however, there are limits how much the family in total can collect. This article discusses…

One of the biggest changes resulting from the recently passed SECURE Act legislation was the elimination of the Stretch IRA provision which allowed beneficiaries to take IRA distributions over their life expectancy (as opposed to the life expectancy of the original owner) .  Fortunately, individuals with disabilities are still able to stretch any inherited IRAs over…

If you are like us, you are probably having trouble processing all the massive changes that are rapidly occurring as a result of the coronavirus outbreak. It is no doubt shocking to see grocery store shelves empty, restaurants closed, and meetings canceled.  The Coronavirus outbreak and your investment portfolio We are encouraged by your reactions (or lack…

Information as of March 10, 2020 We have heard from a few of you about your stock market concerns but suspect there are many more who share in those concerns. We invite you to read our upcoming market analysis in the newsletter which you should be receiving in a few days, but thought a timelier…

The passage of the SECURE Act legislation in late December 2019 brought a few key changes that may impact your retirement planning. Several notable provisions included:  1. Stretch your IRA with the SECURE Act The biggest change with the SECURE Act involves the time period during which the non-spouse beneficiary can “stretch” an inherited Individual…

Economic update as of March 4, 2020 Until March, the stock market expansion, in its 11th year, seemed impervious to bad news. Then came the coronavirus! US stocks, as measured by the S&P index, were down 13% by the end of the week and 9% year to date. At the time of writing this article,…

The 2 trillion-dollar CARES Act was recently signed into law. This is CMP’s summary of how you or your business might be impacted. Although most families with disabilities will receive a recovery payment of ($1,200 per single or $2,400 per married couple), any adult who is claimed as a dependent, including many individuals with disabilities, will not…

What a spectacular year for stocks in 2019! At this time last year, who would have thought that a year later we would be celebrating such growth? If you can remember back to December of 2018, the stock market was down nearly 20%, and according to media reports the outlook for 2019 was gloomy. Yet here we are…

By Barry Jamieson, CFP®, MAThere is still time to save on your taxes for 2019! For most tax-saving type accounts (not including 401Ks and 403B) you have until April 15 of 2020 to contribute. For those who have extra savings that you would like to invest, consider maxing out your contributions to your HSA, 401K, IRA or…

By Christina Povenmire, MBA, CFP®, and Barry Jamieson, CFP®, MA Last December, the US stock market went through a brief but noticeable downturn. For many market watchers, this seemed like the start of an overdue correction: valuations were stretched, interest rates were increasing, and the US-China trade war was escalating. Yet, here we are one year later,…

3 Great Tips for Retaining Staff in Your Dental Office by Christina Povenmire

For millions of special needs families and individuals with disabilities, Social Security benefits provide a key pillar of regular income. I was recently made aware of a situation where, to the shock of the person in question, their Social Security benefits were suddenly discontinued even though the spouse had been receiving SSDI benefits for several years.   This…

Social Security is a valuable but complex social benefits program. Most people are challenged to understand how to maximize the benefits they are entitled to. Even in the “simple” case of the wage earner who has contributed to Social Security and wants to know the best time to start collecting benefits, the answer is not always…

I recently gave a presentation where many questions were asked about STABLE accounts and when they might be the most appropriate savings/investment vehicle for the individual with a disability. This article addresses one of those questions: whether it is preferable to use a 529 account or a STABLE account to save for a loved one’s future education…

In last month’s Disability Insight article I discussed why my wife and I decided to buy long-term care insurance. For most Americans, long term care is the single biggest risk factor in their financial plan; however, since the annual cost of this insurance can run in the two to three thousand per person range this…

Tax season is almost over. If you have not filed your taxes yet you may want to refer to the prior two Disability Insight articles (Tax Tips) and (Should I Claim my Child as a Dependent .) Special needs families and individuals with disabilities may be confused about whether filing a return for the individual is…

By Barry Jamieson I found out that my wife and I were approved for long-term care insurance coverage – hurrah!   We sailed past arduous medical interviews and a memory test and apparently passed with flying colors!  We have thus officially prepared for embarking on our–hopefully– long and happy journey through our golden years.  Why would I be so…

MBy Barry Jamieson, CFP®, MAThe best place to get started with taking care of your digital estate is by listing all of your accounts with your passwords, web addresses, etc., and creating a master file containing this information. Next you will want to store this file safely online. Services such as “Last Pass” and “Tru Key”…

By Christina Povenmire, MBA, CFP®, and Barry Jamieson, CFP®, MAWhat a difference a quarter makes! In December I was lamenting that our long bull market was coming to an end. In that month alone the S&P stock index declined 9%. Trade tensions with China were rising and looking to boil over into an all-out trade war. Interest rates…

By Barry Jamieson In last month’s Disability Insights, various tax issues of particular importance to individuals and families with disabilities were discussed. In this article, we take a more in depth look at one of those topics addressed: the topic of claiming your adult child as a dependent.  When the Tax Cuts and Jobs Act passed…

Tax Tips for Special Needs Families & Individuals with Disabilities By Barry Jamieson The weary gray cold days of winter are upon is! To make things worse, with winter comes the necessary chore of preparing your taxes!  Whether you are filing yourself or work with a tax professional, below are some tax issues special needs families need…

While the Christmas holidays may provide us with many reasons for celebration, the precipitous volatility and decline of the stock market indexes is certainly not one of them. A typical 60/40 portfolio was down nearly 10% for the year as of Christmas, with much of that decrease occurring in December alone.  So please be forewarned that unless…

 By Barry Jamieson, MA, CFP® With increases in the standard deduction ($24K for couples, $12K for singles) resulting from last year’s tax changes, it has become harder to take advantage of the tax breaks provided through itemized deductions. For those of you who are taking required minimum distributions, or RMDs, having the part of your distribution…

By Christina Povenmire, MBA, CFP®, and Barry Jamieson, CFP®, MA This has been quite a turbulent year for stocks!   In case you hadn’t noticed, most stock market indexes are down for the year. At the writing of this article, the S&P index, for example, is down 2% since January. Perhaps this is payback for all those years leading…

By Barry Jamieson One of the more difficult tasks in establishing your special needs financial plan is estimating expenses of your adult child after he or she begins living independently from you. Much of the difficulty is the result of the uncertainty of not knowing precisely what kind of support will be needed when your…

Creating a special needs financial plan involves putting together two plans: one for the parent and one for the child with a disability. Because the combined financial plans take into account the needs and goals of both the parents and the adult child with a disability there is additional complexity in producing an overall projection…

 By Christina Povenmire, MBA, CFP® According to the 2014 Nielsen Global Survey of Corporate Social Responsibility, more than half of consumers surveyed globally said they would be willing to pay more for products and services from companies committed to a positive social and environmental impact. And when it comes to investing, a recent Morgan Stanley survey…

By Christina Povenmire, MBA, CFP®, and Barry Jamieson, CFP®, MA For those of you who are prone to follow the business news, it has been hard to avoid the headlines that the stock market, both in terms of length and price, has HIT A NEW RECORD! Whoohoo!   Many investors, though, are weary of all this stock market…

 by Barry Jamieson, CFP®, MA As you approach retirement, you may want to estimate more precisely estimate what your monthly Social Security benefit will be.  For many this figure is important because this benefit is likely to represent a significant share of their retirement income.  Unfortunately, the Social Security Administration does not send out paper statements as…

By Christina Povenmire, MBA, CFP®, and Barry Jamieson, CFP®, MA   The stock market continues to bounce around much like it did the first quarter. Although quarter end portfolios were only slight down from market highs at the end of 2017, the volatility has left many investors wary of market performance going forward. Indeed, for those…

By Barry Jamieson Planning for the Housing Needs of Your Child With a Disability The current and future housing needs of a child with a disability are of particular concern to special needs families and are a critical part of any special needs plan. Families want to know that the physical needs of their child…

Barry Jamieson,  CFP®, MA Since their inception, Roth accounts have been a great saving vehicle for families planning for their retirement. This saving tool has also been a nice way for families to help their children get started with their own future planning. But do Roth accounts make any sense for families with children with…

by Barry Jamieson, CFP®, MA Some of you may have been on the receiving end of a sales pitch to buy an annuity. The proposition that annuities defer taxes and guarantees growth on your investment is indeed enticing. What is not to like? Although these complex financial instruments may have a place in the financial…

By Barry Jamieson, CFP®, MA Most special needs families understand the critical role Social Security plays in the financial wellbeing of their loved one with a disability.  For families with children 18 or older the monthly Social Security Insurance (SSI) benefit represents a building block towards independence.  By itself of course, the additional monthly income…

By Barry Jamieson, CFP®, MA There are many dimensions to a family’s special needs plan. Past articles in the Disability Insights series have focused on estate and financial planning topics; however, as families well know, the daily considerations and routines of the child with a disability are also a key component of the special needs…

The initial planning energies of special needs families are often on hiring an attorney to draft necessary estate planning documents (e.g., wills, trusts).  Developing a solid financial plan for such families is equally important.  A comprehensive financial plan takes into account both the needs of the individual and the goals of the family members. While…

by Christina Povenmire CFP®, MBA and Barry Jamieson, CFP®, MA What a difference a few months make! Over the past month it seems like every day comes with considerable market gyrations. Indeed, the VIX index, a key measure of stock market volatility, is up over twice the moving average level of last year, while major…

By Barry Jamieson, CFP®, MA Ok, so you have established a Special Needs Trust (SNT) or you have plans to do so. You have been thinking about what assets will be used to fund the trust. Those plans include designating some of your 401K and IRA retirement funds to the trust, because much of your…

  Market Volatility Video

By Barry Jamieson In presentations I have recently given to special needs families about Special Needs Trusts (SNTS) it is apparent that there is still confusion about when to establish an SNT and when to start an ABLE account. Specifically people want to know: “Should I set up an SNT or an ABLE account?” The…

By Christina Povenmire, CFP ®and Barry Jamieson,CFP® Source: William Vasil, CPA, Ary Roepcke Mulchaey, P.C. and ADA News bulletin The recently passed tax bill contains a number of provisions which will help dentists and small businesses save tax dollars. Each of these provisions outlined below are effective for 2018. “ Improving Section 179 Deductions. The…

By Barry Jamieson.   The tax overhaul bill passed at the end of 2017 ushered in major changes for all taxpayers including people with disabilities.  Here are a few of the major changes that could impact individuals with disabilities depending on their tax situation. Standard Deduction Increase to $12K. Starting in 2018 the new threshold…

Special Needs Trusts (SNTs) have their advantages and disadvantages to consider in the estate planning process. The recent CMS directive regarding ABLE contributions highlights how the two planning vehicles can work together for the benefit of the individual with disabilities and their families.   Before going into the details of the CMS directive, let’s first review…

The House has passed their tax reform bill and the Senate has moved its version out of the Finance committee.  Each chamber and the president would like a bill signed by the end of the year. If the bill were to pass, here are provisions that would affect individual taxpayers and investors that are common…

With stocks continuing to go up and up, what’s not to like?  Since the last Investment Update in mid-October, US stocks have gone up an additional 1.7%. YTD the S&P index is up 16%.   Although hopes for a tax reform deal may be contributing to some of the rise, the primary driver is the growing…

The good news is that sponsoring a retirement plan for the practice not only benefits staff, but it benefits the dentist/owner even more.  Dentists are concerned about being able to save enough for retirement. Our latest survey of Ohio dentists indicated that 43% of dentists were concerned that they were not saving enough for retirement (download ebook…

According to our survey of Ohio-based dental practitioners, dentists are stressed about their finances. Consider that of the 42 Ohio-area dentists we surveyed: 47% of dentists working with a financial planner cited being stressed about growing their practice compared to 70% of those who didn’t utilize financial professionals. 38% of dentists who worked with a…

  by Barry Jamieson, CFP®   Some of you have expressed concern about the Equifax hacking and have asked what precautions should be made in light of this latest security breach.  With this latest breach it should be clear that breaches of this magnitude will continue to be regular occurrences well into the future. While personal security…

Stocks and politics here and globally seem to be running in parallel realities. In the political sphere, news of some crisis or political impasse, either in the US or around the world, grab our attention almost daily. The inability of governments to successfully address many of these events or issues would seemingly have a negative…

The economy, unlike our political situation, keeps on chugging along, growing at an annual 2% clip.  Unemployment at 4.3% is at a 16 year low.  The positive stream of earning reports and economic news continues to support the stock market. The 2nd quarter saw US stocks rise by 3% and 8.9% YTD.  International stocks did…

More Americans are participating in high deductible health insurance plans, making them eligible to also participate in a Health Savings Account (HSA). HSAs can be a super retirement savings vehicle. Here is why:  contributions are made tax free, they grow tax free, and withdrawals are tax free as long as they are made for  “qualified…

  For many parents choosing someone to look after their child with a disability is the most difficult part of their estate planning process. The chosen person must not only be responsible and committed to your child’s emotional and physical wellbeing but must also have the technical expertise to manage the child’s financial affairs. (The…

  As their child with a disability reaches adulthood, families give increased thought to their child’s housing needs.   Many families want to promote the maximum independence of their child while others are concerned for their loved one’s living arrangements after their own death.  In either case, home ownership can be a great way to provide…

The US and global stock markets continue to reach market highs. The US expansion is now in its eighth year. At the beginning of the first quarter market analysts were fixated on the next policy moves of the Trump administration. In anticipation of a more favorable business climate (e.g. Deregulation, lower taxes) stocks jumped higher….

If you have a special needs child who has a permanent disability, it is likely that social security benefits will be an important component of their special needs plan. Although in most cases Social Security benefit payments will need to be supplemented to pay for your adult child’s living expenses, particularly if they are living…

One of the most pressing questions special needs families face with their estate planning is whether to establish a Special Needs Trust (SNT). Because individuals with disabilities are living longer, there is a stronger likelihood that they will survive both of their parents, putting more emphasis on careful estate planning including the use of tools…

The creation of STABLE accounts in Ohio has given people with disabilities and their families a new tool to save for future expenses. In addition to STABLE accounts there are multiple savings tools that can be potentially employed including the use of Roth IRAs, 401Ks, Trusts, and pensions. Which accounts does it makes sense to…

The previous Disability Insights article addressed the importance of developing a comprehensive financial plan. A key component of any comprehensive financial often involves insurance. Insurance protects assets in case of premature death. For the special needs family, insurance can provide funding for a special needs trust set up to provide for the child with a disability….

So you have decided to establish a Special Needs trust (SNT).  The previous Disability Insights article mentioned that the naming of a successor trustee of an SNT is a critical appointment, for that person will have full discretion in maintaining and distributing assets on behalf of the disabled individual. Because it is such an essential job,…

  What is a comprehensive financial plan, anyway? It is a plan that examines all financial aspects of a person’s life: savings, investments, retirement, taxes, public assistance, medical, insurance, etc., and organizes these aspects in such a way that best meets the person’s goals and objectives.  As challenging as it is for most Americans to…

The 4th quarter 2016 was full of market changing news and events. Donald Trump was elected. OPEC reached agreement on limiting oil production. The Federal Reserve raised interest rates by ¼ of a percent. Collectively, these events helped propel US stocks higher from their already lofty peak.   The US stock market responded positively to Trump’s…

Because of the low inflation figures contained within the CPI index that determines Social Security increases, Social Security benefits are set to go up a mere 0.3% starting in January 2017.  If, for example, you currently receive $2,000 per month from Social Security, your payments will go up by a negligible $6 per month. Compounding…

It’s finally happened!  In case you are wondering, I am referring to the Fed finally raising the funds rate again last Wednesday.  Of course, other events also fit this pronouncement, such as the stock market is finishing the year with a strong upswing, or, of course, Donald Trump is now President-Elect. As the fourth quarter…

  Now that STABLE accounts are available to individuals with disabilities, parents and guardians often ask   whether they should establish a trust for their loved one as a substitute or in addition to these accounts.   Before addressing this question it is important to review the benefits and limitations of both. STABLE accounts are a tax…

Those currently on Medicare understand they pay a standard part B premium amount of $121.80 a month (higher depending on income) and another $30 to $60 a month (or more depending on the plan) for part D drug coverage.   However, taxpayers in the upper 5% income brackets pay a higher income related monthly adjustment amount…

As the third quarter of 2016 draws to a close, we are enjoying a second quarter in a row of strong stock market returns despite the retreat of a few categories in the past 30 days.  Large-cap US stocks have been the strong performing category for most of the last 8 years to the extent…

For many of us, evaluating our investment account statements is like going to the dentist:  it’s the right thing to do but we would rather put it off!   Sure, we want to feel good about our investments’ performance.   Charting investment returns?   Ranking investments, picking a strategy?   About as much fun as that dentist visit. The good…

In the second quarter, ending June 30, 2016, the stock market roller coaster ride continued–markets fluctuated depending on the news about either oil or China.  Also during this quarter, investors showed greater attention to the slowing economy, interest rates, and finally “Brexit”. Great Britain’s vote to leave the European Union was a surprise to almost everyone. Because investors hate…

Think Before You Tip! Our society is becoming increasing mobile not just physically but financially. We love the convenience of paying for goods and services by swiping our credit card through a vendor’s card reader or through our phones.   Increasingly, when we go out to eat at our favorite restaurant, these mobile device applications will…

How Able Accounts Fit Into Your Estate Planning Needs A presentation by Barry Jamieson. Download here:

Economic and Investment Update As the second quarter draws to a close, many stock categories are showing gains for the year, while all bond categories are up.  Large and small value stocks returned 3.5% to 5.5% and have outperformed growth stocks, which have small losses for the year. US stocks have outperformed foreign stocks; most foreign…

Taking Care of Your “Digital Estate” For those of you who have a formal will and estate plan, congratulations!  You are way ahead of most folks in making sure your assets are properly attended to at your decease. But what about your online presence and stuff you store electronically either on your phone, tablet, or…