Education savings plans were originally created in the 1980s by various states as a way for students to attain the financial means required for a college education. These plans are still implemented at a state level and are either prepaid tuition or tax-advantaged savings accounts that can be applied to qualified education expenses. 

According to the National Association of State Treasurers, more than 12 million families have saved more than $258 billion in these plans over the last 40 years.

While the primary purpose of these accounts has always been to make a college education feasible from a financial standpoint, they should also be considered a valuable estate planning tool. In light of the current tax treatment of these accounts, they may provide a flexible means for parents, grandparents or other family members to transfer assets to a younger generation.

The word fiduciary has evolved from some obscure financial terminology rarely uttered at the neighborhood cocktail party to the in-vogue standard. If your financial person doesn’t meet the standard, you might be deemed a rube.

The term fiduciary seems so commonplace that you might be tempted to take it for granted. Surely, your advisor wouldn’t stoop to anything less than being a fiduciary: a professional who always strives to work in your best interest, even after you are invested. You can check that box. Right?

In their most recent study about stress in America, the American Psychological Association found that 72 percent of people felt stressed about money. Finances can be a constant stressor for some, no matter what significant events influence it. Still, it’s no secret that the pandemic transformed the workforce rapidly and wreaked long-term havoc on the economy in 2020. Many people experienced food insecurity due to the unexpected impact of financial loss, and according to a survey published in November, 2020, about 63 percent of Americans had been living paycheck to paycheck since the start of the pandemic.

Recently, Carnegie Investment Counsel Portfolio Manager/Regional Director Scott Inglis was a guest of Behind the Numbers, which is a podcast about the “real stories” behind business performance and valuation. Inglis talked with the host, valuation expert and bestselling author Dave Bookbinder. Scott provided detailed insights around demystifying noise in the market place”. Here’s an overview of the conversation.

Living Well With Wealth Series 1 of 3

In this first blog post in our Living Well With Wealth series, we discuss giving money to family. Next in the series, we offer insights into charitable giving.  

It’s highly common for our clients with children, grandchildren and other family members to direct their assets to things or activities that will help those family members financially. Allocating portions of your legacy and offering financial assistance can make a lifelong impact on your loved ones. So, how and when should you get started, and what do you need to consider?

After many years where the divorce rate for American adults was constantly on the rise, recent decades have shown a modest decline. However, those statistics disguise a change in the divorce rate for older adults. According to multiple studies, including a Bowling Green State University Family Profile Information 2021, there has been an increase in the divorce rate for those who are 50 years and older.  

This so-called gray (think graying hair) divorce phenomenon can have a significant impact on retirement plans. If you are older and considering a divorce, keep in mind that assumptions you and your spouse made decades ago about finances may no longer apply, including the financial benefits of marriage.

Several high-profile gray divorces have been in the news recently, including Bill and Melinda Gates. Let's assume that dividing up their assets will be a bit more complicated than what you might be facing if divorce is likely. However, there are practical considerations for all non-billionaires when dealing with the financial consequences of a divorce.

Chad Warmbein has been a Portfolio Advisor at Carnegie’s Pittsburgh office for six years. He is passionate about helping clients create a customized financial strategy aligned to their financial goals. Plus, Chad helps work with prospective clients both for individual wealth management portfolios and retirement services plans. In this blog post, we meet Chad and learn about his Portfolio Advisor role.

One of the most important aspects of responsible financial planning is risk management. A proper understanding of risk can help you anticipate losses and gains and create an investment strategy with your financial planner as you build wealth. Assessing your risk tolerance can guide you in your investment decisions. Armed with this knowledge, you can start to see the risk of avoiding risk.

It is important to identify your financial goals, what it will take to reach those goals and understand the level of risk you are willing to take to get there. Your goals and behavior must be aligned.

When you work or volunteer for a nonprofit agency, your work is important and valuable. You might even say you are “doing good in the neighborhood!” When you combine your nonprofit mission with strong financial management you can make an even greater impact for those you serve.

Strong financial management is critical to the success of nonprofit organizations and helps them be more effective. This is true now more than ever, with the impact of COVID placing increased demand on financial resources. It helps to enlist the support of a qualified financial advisor to help navigate your nonprofit through volatile times.

So, what’s the case for engaging a nonprofit financial advisor for your organization? Here are some key benefits:

"ESG" has been an investment buzzword over the last two years. It is a subjective, somewhat amorphous concept. It can be easily described as investing in companies that enable an investor to do good financially while doing good in the world.

"Doing good" in the world involves weighing “ESG”: Environmental considerations, Social considerations and corporate Governance considerations.

Environmental consideration weighs a company’s production and usage of carbon-based fuels, air and water pollution, use of wind and solar energy, production of toxic wastes and even design and use of packaging.

Social consideration weighs the firm's efforts and success in employee diversity, employment opportunity, workers' treatment, internal discrimination policies and pay equity.

Governance considerations include examining management's alignment with shareholder and broader stakeholder interests, executive compensation, board diversity, level of independent board oversight and participation, and voting control.